A. Introduction
Government of Maharashtra has approved the introduction of a new credit linked subsidy programme called Chief Minister Employment Generation Programme (CMEGP) for generation of employment opportunities through establishment of Micro & Small Enterprises (project cost limited to Rs. 50 lacs) in rural as well as urban areas in the state.
B. The Scheme Implementation
The Scheme will be implemented and monitored by Directorate of Industries (DOI), under the administrative control of Industries Department, Government of Maharashtra. The Scheme will be implemented through District Industries Centers (DICs), Maharashtra State Khadi and Village Industries Boards (KVIB) under the control of Directorate of Industries and by banks. The subsidy under the scheme will be routed through DOI to the identified banks for eventual distribution to the beneficiaries/entrepreneurs in their bank accounts after the stipulated period.
C. Levels of funding under CMEGP
Categories of beneficiaries under CMEGP
| Beneficiary’s contribution
(of project cost)
| Rate of Subsidy (of project cost) | Rate of Subsidy (of project cost) |
Area (location of project/unit)
| | Urban
| Rural
|
General Category
| 10%
| 15%
| 25%
|
Special (including SC / ST /Women, Ex-servicemen/ differently abled)
| 5%
| 25%
| 35%
|
Notes:
1. The maximum cost of the project/unit admissible under manufacturing sector is Rs.50 lakh. However, if the actual project cost is higher than the prescribed limit and the applicant seeks to become eligible under the scheme by manipulation (by reducing the cost of project) then such projects/units will not be considered.
2. The maximum cost of the project/unit admissible under service, Agro-based/ Primary Agro processing sector, E-vehicle based goods transport and other businesses, single brand service ventures (single brand-based chains, mobile service ventures) is Rs.10 lakhs.
3. Beneficiary’s Contribution in the project cost will be 5% to 10 % as per the Categories of Beneficiaries under CMEGP scheme and balance amount of the total project cost will be provided by Banks as term loan.
D. Eligibility criteria under the scheme
1. Any individual between 18 to 45 years of age. For Special category (including SC/ST/Women/Ex-servicemen/Differently abled) age is relaxed by 5 years.
2. Applicant(s) should be resident of Maharashtra. In case of birth outside Maharashtra, the applicant must possess domicile certificate.
3. There will be no income ceiling to become eligible for availing financial assistance.
4. The constitutions eligible for setting up new units/ventures established under the scheme are Proprietorship, Partnership and Self-Help Groups (SHG’s) registered with respective authorities.
5. For project/units cost between Rs.10 lakh to Rs.25 lakhs, the required educational criteria for the applicant is minimum 7th standard pass and for project/units above Rs.25 lakh the required educational criteria for the applicant is minimum 10th standard pass. The applicants should also preferably possess respective / relevant skills required for the project.
6. Only one person from a family will be eligible under the scheme. (Definition of family includes Self and spouse).
7. Assistance under the Scheme is available only for new projects/ventures.
8. Registered Self-Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Central & State scheme) are eligible for assistance.
9. Existing Units and units that have availed benefit under PMRY, REGP, PMEGP or any other subsidy linked scheme of Government of India or State Government and also units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible under the scheme.
E. Other Eligibility Conditions under CMEGP
1. For assistance as a Special Category, a certified copy of the caste / validity certificate or relevant document issued by the competent authority is required to be furnished by the applicant to the concerned implementing agency at the time of making application. Applicants with 21 types of benchmark disabilities covered under “The Rights of Persons with Disabilities Act, 2016” should furnish a valid disability certificate.
2. A certified copy of registration of SHG / constitution of the firm (Registrar of Firms) of the proposed project / unit is required, wherever necessary.
3. Cost of the land should not be included in the Project cost. Cost of the ready built-up work shed/gala/workshop is admissible subject to maximum 20% of the total project cost.
4. Long lease / rental Work-shed/Workshop/gala can be included in the project cost subject to restricting such cost to be calculated proportionately on a pro-rata basis for three years.
5. Project cost will include Capital Expenditure (except cost of land) and one cycle of Working Capital. Projects without Capital Expenditure are not eligible for financing under the Scheme. Projects costing more than Rs.5 lakh, which do not require working capital, need clearance from the Regional Office or Controller of the Bank’s Branch and the claims are required to be submitted with such certified copy of approval from Regional Office or Controller, as the case may be.
6. For Service sector & Agro based activities as specified above, new projects Work- shed/shop the maximum cost eligible is limited to 20% of total project cost whereas maximum working capital for such projects will be limited to a maximum of 30% of the total project cost.
7. Assistance under CMEGP is applicable to all new viable micro, small enterprises (project cost limited to Rs.50 lacs) including Village Industries.
8. SC & ST applicants will have reservation of 20% in the total yearly target.
9. Women applicants will have reservation of 30% in the total yearly target.
10. Differently abled applicants will have reservation of 3% as per the provisions of the Social Welfare Department GR dated 24.2.2019 in the total yearly target.
F. Eligible Units under the scheme
New Manufacturing, Service, Agro-based & Primary Agro processing activities, E-vehicle based goods transport and other businesses, single brand service ventures (single brand-based chains, mobile service ventures) sector projects/units, will be eligible under the CMEGP scheme, except activities indicated in the negative list of Village Industries (refer point number H below).
G. Rate of interest and repayment schedule
Normal prevailing rate of interest shall be charged. Repayment schedule may range between 3 to 7 years after an initial moratorium as may be prescribed by the concerned bank/financial institution.
H. Negative List of Activities
The following list of activities will not be permitted under CMEGP for setting up of micro
enterprises/ projects /units.
a) Any industry/businesses connected with Meat processing/slaughtering/canning and/or serving items made of it as food, production/manufacturing or sale of intoxicant items like Beedi/Pan/Cigar/Cigarette etc., Dhaba or sales outlet serving liquor, preparation/producing tobacco as raw materials, tapping of toddy for sale.
b) Any industry/business connected with cultivation of crops/plantation like Tea, Coffee, Rubber etc. sericulture (Cocoon rearing), Horticulture, Floriculture.
c) Any industry/business connected with Animal Husbandry like Rearing of goat/ sheep, Piggery, Poultry, etc.
d) Manufacturing of Plastic, Polythene and Thermocol Products and related products as prohibited by Environment Department, Govt. of Maharashtra notification No. Plastic- 2018/C.R. No.24/TC-4, dated 23rd March 2018.
e) Any other Product/Activity banned by the Government of India / State Government.
I. Documents required for registration
1. Passport size photo
2. Aadhaar Card
3. Birth Certificate/ School Leaving Certificate/ Domicile Certificate (if required)
4. Educational qualification details
5. Undertaking Form
6. Project Report
7. Caste Certificate/Caste Validity – if applicable
8. Special Category Certificate - if applicable
9. REDP/EDP/Skill Development training certificate/etc - if completed.
10. For non-individual applicant, following additional documents are required:
(i) Registration certificate
(ii) Authorization letter/copy of byelaws authorizing Secretary, etc. to apply.
(iii) Certificate for Special Category, wherever required.
Feel free to reach us to know more about CMEGP Scheme.
Compiled by - Amruta Sohani