Maharashtra state presents the Chief Minister Employment Generation Program CMEGP, which is a new program meant to empower women and job creation in the state. This is administered through the Directorate of Industries of the State Department (DOI) and supervised by relevant agencies such as District Industries Centres (DICs) and Maharashtra State Khadi and Village Industries Boards (KVIB). The govt program focuses on providing support to unemployed youth from disadvantaged groups of society to become independent business owners.
Read the article to learn more about the government scheme, ranging from its meaning and objectives to eligibility criteria and application process.
Overview
| Particulars | Details |
|---|
| Launch Date | 1st August 2019 |
| Implementing Authority | Directorate of Industries, Maharashtra |
| Maximum Project Cost | Manufacturing: ₹50 lakhs; Service/Agro-based/E-vehicles: ₹20 lakhs |
| Beneficiary Contribution | 5% for special categories, 10% for general category |
| Subsidy | Urban: 15%-25%; Rural: 25%-35% (varies by beneficiary category) |
What Is CMEGP?
CMEGP, or the Chief Minister Employment Generation Programme, is a state initiative and program targeted at empowering the youth of Maharashtra to become self-employed and to develop an entrepreneurial culture. The government scheme provides broad support in the form of term loans and subsidies, helping the establishment and promotion of small and medium enterprises with a special focus on e-vehicle-based transport and agro-based industries and enterprises.
Read More: MAHABOCW: Maharashtra Bandhkam Kamgar Yojana
Objective
CMEGP’s primary aim is to empower communities through entrepreneurship and self-employment. The scheme’s objectives include providing financial support to small-scale enterprises and thereby increasing economic activities throughout the state. The CMEGP scheme is designed with the following objectives in mind:
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Create small-scale entrepreneurs to help businesses in the country.
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Offer financial aid and practical support to minority groups like women, SC/ST, and physically challenged people.
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Encourage local as well as national economic growth and development through business growth in rural as well as urban settings.
What Are The Benefits Of The Government Scheme?
The Chief Minister Employment Generation Programme (CMEGP) comes with numerous advantages aimed at potential business owners who are usually from backward groups. Such a government program ensures that people can start up and even expand their businesses through financial help and lowered contributions. Some of the benefits include the following:
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Subsidy on Project Cost: The scheme extends large discounts based on the area and the person receiving help category.
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General Category:15 % in urban areas and 25 % in rural areas.
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Special Categories: SC/ST/Women/Minority/VJNT/OBC/Differently Abled 25% in urban areas and 35% in rural areas.
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Low Beneficiary Contribution: The beneficiaries are expected to contribute only about 5 per cent to about 10 per cent of the project cost.
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Financial Assistance: Banks also lend out the rest of the amount in the form of term loans, thus assisting these people in setting up their businesses.
Funding Under The CMEGP Scheme
| Category | Beneficiary Contribution | Subsidy (Urban) | Subsidy (Rural) |
|---|
| General | 10% | 15% | 25% |
| Special Category | 5% | 25% | 35% |
Read More: Get USKP Loan To Start Your Business In West Bengal
Eligibility Criteria
The CMEGP offers assistance, especially to such people as male or female executives and entrepreneurs from the disadvantaged sections of society. They have made it a point to set eligibility criteria for CMEGP to reach those who need assistance. The criteria set are:
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Age: 18- 45 years for general categories and up to 50 years of age in case of special categories such as SC/ST/Women/Differently Abled Persons/ Ex-Servicemen.
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Occupation: Should be unemployed and willing to pursue a new business concept.
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Educational Qualification: For Concrete Cement projects up to ₹10 lakhs and above, class seven has to be cleared and specific project qualification for ₹25 lakhs.
Who Are Not Included?
The CMEGP strategy supports new enterprises in which such endeavours had not been engaged in the past, so only those who have not benefited from such loan schemes before. By doing this, greater relevance of assistance to the most deserving applicants is ensured. The following groups are not eligible:
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Only one member per family is eligible.
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Existing units or those who have availed benefits of other national schemes (PMRY, PMEGP, etc).
What Is The CMEGP Application Process?
The process of applying for this government scheme is fairly simple and clear since eligible candidates are given all the support required. The following steps outline how the process works:
Step 1: Online Registration: Go to the CMEGP Portal and enter the relevant information.
Step 2: Checking by DLSCC: The districts start checking and use layering to assemble the eligible applicants and prepare to recommend several applicants.
Step 3: Approval by DLTFC: Validate the approved prospective applicants and send the list to the banks for approval.
Step 4: Bank Approval & Training: The loan is sanctioned by the bank, and the applicant goes through the training.
Step 5: Subsidy Claim & Payment: Banks make subsidy claims to DICs, which are passed and paid.
Read More: Mahatma Gandhi National Rural Employment Guarantee Act
Documents Required
To complete the application for the CMEGP scheme, applicants must gather and submit the required papers to verify their identity, eligibility, and project details. Proper documentation ensures a smooth approval process:
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Passport-sized photo
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Aadhaar card
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Residence proof
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Educational certificates (as applicable)
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Promise Form
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Project Profile
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Caste certificate (if applicable)
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Special category certificate (if applicable)
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PAN card
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Population certificate (for rural applicants)
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Bank clearance certificate (if applicable)
CMEGP Maharashtra Unit Physical Verification
CMEGP, which is an established unit, is further checked through physical verification by the officials of DIC to bring openness and responsibility in the implementation of the employment scheme. This exercise, therefore, helps in ensuring that the resources are well utilised and the businesses are functional as envisioned in the project design.
Monitoring Of The Scheme
The Directorate of Industries carries out scheme monitoring along with other involved groups, such as banks, KVIB, etc. The beneficiaries have to provide progress reports regularly, while physical verification assists in problem-solving and ensures the following rules.
Read More: How MCY Helps Promote Self-Employment For Rural Women
Challenges Faced
Despite the availability of adequate assistance by the CMEGP scheme, it doesn’t prove to be effective in certain areas and faces challenges that need to be overcome. These challenges should be overcome for improved application and efficiency:
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Awareness: The rural countryside people have little awareness of the existence of the scheme.
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Documentation: Difficulty in obtaining and processing the required documents for certain applicants.
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Loan Disbursement Delays: Due to the poor communication between banks and DICs, late approval and loan disbursement usually occur.
Conclusion
The Chief Minister Employment Generation Programme (CMEGP) is an impactful scheme that can boost the youth and the disadvantaged sections of the population in the region of Maharashtra. The scheme is aimed at strengthening potential scholars for building lasting businesses through the provision of access capital, training, and grants.
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