The Government of Karnataka has launched Scheme called Chief Minister Employment Generation Programme to provide more employment opportunities to Rural Artisans. The entrepreneur who is interested to avail this benefit will be provided loan from the banks and the Margin Money will be provided by Karnataka State Khadi and Village Industries Board/District Industries Centers. This Margin Money will be adjusted to loan account of the Entrepreneur only after 3years of Successful establishment and running of the Units.
The Government of Karnataka, through its order No.CI 134 CSC 2015 Dated:15-10-2015 has released guidelines for the implementation of the scheme in respect of Micro Industrial Units.
The Implementation is regulated by the Director and Commissioner, Department of Industries and Commerce, at the State Level along with the CEO of the Karnataka Khadi and Village Industries Board and the District Level Committee headed by the Deputy Commissioner/District Magistrate of the Concerned District.
Beneficiaries own Contribution
The Entrepreneur should deposit his own contribution in the financing branch bank SB A/c @ mentioned below before release of First installment of loan portion. (a) 10% of project cost in case of general category. (b) 5% of project cost in case of special category.
The beneficiary should under go EDP training before released of 1st installment loan amount from the financing branch for the projects for the period of 1 week. EDP is compulsory.
The beneficiary should have Minimum pass in 8th std for availing of loan for the projects.
Rural area definition
Revenue Village or a any area whose population does not exceed 20,000.
Village Industries definition
Any industry location in rural area which produces any goods (except the product shown in Negative list) or render any service with or without the use of power. The Margin Money Scheme benefits will not be provided to Khadi, Polyster, Wool and Silk industries which are provided with rebate by state and central governments.
Per capita investment
The fixed capital investment per head employment should not exceed Rs.1, 00, 000/-
This Scheme is not applicable for financial assistance in respect of rural transport.
The unit should not take up the production of products included in the negative lists.
Limit of Project Cost
The Maximum limit of project cost is Rs.10.00 lakhs.
The loans for the projects will be provided by the selected Nationalized Banks, Private Scheduled Banks, Grameen Banks and Co-operative Banks. The Margin Money component will be provided by the implementing agencies.
The Margin Money component details are as furnished below.
Beneficiary contribution (in% of Project cost
Bank loan (in% of project cost)
Margin Money percentage of project cost (Credited to Financing Banks and beneficiary A/c.
Special Category SC/ST, OBC, Minority, Women, Physically Challenged/Ex-servicemen)
SOME OF THE ACTIVITIES WHICH CAN BE TAKEN UNDER THIS SCHEME
I. Mineral Based Industry:
Cottage pottery Industry
Lime stone, Lime shell and other lime products Industry.
Stone cutting,crushing,carving, and engraving for temples and buildings.
Utility Articles made out of stone.
Slate and Slate pencil Making.
Manufacture of plaster of Paris.
Utensil washing powder.
Jewellery out of Gold ,Silver ,Stone , Shell and Synthetic materials.
Manufacture of Gulal ,Rangoli.
Manufacture of Bangles.
Manufacture of Paints ,Pigments ,Varnishes, and Distemper.
Maximum 45 years for Special Category (SC/ST/OBC/minorities/Ex-servicemen/PPH/Women)
For projects worth of Rs 5 lakhs and above minimum qualification is 8th standard pass.
Scheduled caste: 15%
Physically disabled: 03%
Women Overall: 30%
How To Apply For Chief Minister Self Employment Generation Programme
The eligible candidates can apply online here. Once this link is clicked the candidate needs to select the agency from which he wants financial support. Aadhaar is compulsory to avail the benefit. The application can be downloaded from here. The submitted application can be edited here: Below is how you can apply:
District Industries Centres (DICS) and Karnataka Khadi and Village Industries Board (KVIB) call applications from unemployed First Generation Entrepreneurs
First Generation Entrepreneurs can submit their applications for setting ups of manufacturing and service units.
DIC and KVIB present this application before the district-level task force committee.
After conducting an interview, committee and recommends applications to nationalised/commercial banks/Regional Rural banks for sanction of composite loan.
DIC and KVIB and other agencies will provide assistance like sanctioning loans, power supply, approval from local bodies and allotment of land or sheds.
DIC’s and KVIB ensure timely commissioning of the projects and monitor the progress on a monthly basis.
This assistance will be provided only for first-generation entrepreneurs
Units can’t claim this fund for expansion/modernization/diversification
Applicants should not avail any loans under PMEGP or any other scheme.
An applicant has to undergo EDP training before the sanction of the subsidy. Financial banks can release loan to the applicants but they have to complete the training and has to produce the certificate before the sanction of the subsidy.
The applicants who have already undergone one week EDP training from CEDOK, RUDSET, RSETI or any other government recognised institutions are exempted from EDP training.
No income limit
Chief Ministers Employment Generation Programme Application – Documents To Be Enclosed