The Chief Minister Employment Generation Programme (CMEGP) is a flagship initiative launched by the Maharashtra government in August 2019 to foster self-employment and support new micro and small enterprises across the state. Administered by the Directorate of Industries and implemented via District Industry Centres, Maharashtra Khadi & Village Industries Board, and partner banks, it offers funding through cash credit or term loans and aims to generate employment and boost entrepreneurship in manufacturing, service, agro-based, and related sectors. Check your business loan eligibility to explore additional funding options that complement government-backed initiatives like CMEGP.
Implementation and Monitoring of CMEGP Scheme
The scheme will be implemented and overseen by the Directorate of Industries (DOI), which operates under the administrative control of the Industries Department, Government of Maharashtra. Implementation will take place through District Industries Centres (DICs), the Maharashtra State Khadi and Village Industries Board (KVIB) under the DOI, as well as participating banks. The subsidy under the scheme will be channelled via the DOI to the designated banks, which will then transfer the funds to the beneficiaries’ accounts after the specified period.
Vision of CMEGP scheme
- To create employment opportunities in both rural and urban areas of the state by establishing new self-employment ventures, projects, micro enterprises, or small enterprises (with a project cost up to Rs. 50 lakhs).
- To bring together widely dispersed traditional artisans, unemployed rural and urban youth, and individuals with innovative or pioneering ideas, providing them with self-employment opportunities close to their place of residence.
- To offer continuous and sustainable employment to a large number of traditional artisans, start-ups, and innovators, helping rural and urban youth secure livelihoods and reducing migration from rural to urban areas.
- To enhance the income-earning potential of traditional artisans and contribute to overall growth in rural and urban employment.
Objective of CMEGP scheme
CMEGP has been designed with the following key goals:
- Support setup of approximately 1 lakh micro and small enterprises over five years and generate 8–10 lakh jobs in Maharashtra
- Provide startup assistance to educated unemployed youth by enabling them to launch new ventures
- Promote entrepreneurship among underrepresented groups, including women, SC/ST, minorities, ex-servicemen, and differently-abled individuals
- Facilitate access to finance, training, and project support to help candidates establish viable businesses in rural and urban areas
Key features of CMEGP scheme
Key characteristics of CMEGP include:
- Funding limits of up to Rs. 50 lakh for manufacturing and Rs. 20 lakh for service/agri-based ventures
- Subsidy ranging from 15% to 35% of project cost depending on general or special category and urban/rural location
- Beneficiary’s own contribution required between 5% and 10%, with the balance financed via loans from accredited banks
- Collateral-free loans up to Rs. 10 lakh under CGTMSE scheme; higher sums may require collateral
- Repayment tenor of 36–84 months, with an additional 6-month moratorium before starting EMIs
Check your pre-approved business loan offer to assess your readiness for external financing support in addition to CMEGP assistance.
Quantum and Nature of Financial Support Provided under CMEGP
| Beneficiary Category | Contribution to Project Cost | Subsidy Rate (of Project Cost) |
|---|---|---|
| Urban | ||
| General Category | 10% | 25% |
| Special Category (SC/ST, Women, Ex-servicemen, Differently-abled) | 5% | 35% |
Notes:
- For manufacturing projects, the maximum admissible project cost is Rs.50 lakh. Projects exceeding this limit will not qualify if applicants try to reduce the cost artificially to become eligible.
- For service, agro-based/primary agro-processing projects, E-vehicle goods transport, and single-brand ventures (including mobile service chains), the maximum admissible project cost is Rs.10 lakh.
- The beneficiary’s contribution ranges from 5% to 10% depending on the category, and the remaining project cost is provided by banks as a term loan.
CMEGP scheme eligibility criteria
Eligibility parameters include:
- Must be a resident and domicile of Maharashtra
- Age between 18–45 years (relaxed by 5 years for SC/ST/OBC/women/ex-servicemen/differently-abled)
- Educational minimum: 7th standard pass for project > Rs. 10 lakh; 10th pass for project > Rs. 25 lakh
- Only one application per family; applicant must not have benefited from prior self-employment schemes like PMEGP, PMRY, etc.
Exclusions
- Family Eligibility: Only one member from a family can apply under the scheme. (Family is defined as the applicant and their spouse.)
- Ineligibility of Existing or Previously Subsidised Units: Units that are already operational or have received benefits under schemes like PMRY, REGP, PMEGP, or any other central or state government subsidy-linked programme are not eligible to apply.
Funding under the CMEGP scheme
The financial assistance structure varies by beneficiary type and location:
| Beneficiary category | Urban subsidy | Rural subsidy | Beneficiary contribution |
|---|---|---|---|
| General | 25% | 30% | 10–15% |
| Special (SC/ST, Women, etc.) | 35% | 40% | 5–10% |
Balance cost is covered via bank loans (typically 60–80% of project cost). For example, in rural areas general category gets 30% subsidy with 10% contribution and 60% bank loan.
How to apply for CMEGP scheme
Applicants must apply through the official CMEGP portal. The process includes:
- Completing the online application form with personal, educational, and business details
- Uploading required documents such as Aadhaar, educational proofs, domicile certificate, project report, etc.
- District‑level committees review applications and forward approved cases to banks
- Selected candidates receive Entrepreneurship Development Programme (EDP) training, followed by loan sanctioning and subsidy processing by banks and state authorities
Benefits of CMEGP scheme
| Beneficiary Category | Contribution by Beneficiary (of Project Cost) | Subsidy Rate (of Project Cost) | Applicable Area |
|---|---|---|---|
| General Category | 10% (Urban) / 15% (Rural) | 25% | Urban / Rural |
| Special Category* | 5% | 25% (Urban) / 35% (Rural) | Urban / Rural |
*Special Category includes SC, ST, Women, Ex-servicemen, Differently Abled, VJNT, OBC, and Minority groups.
CMEGP in Maharashtra: State highlights
- Piloted under the New Industrial Policy 2019 and overseen by the Industries Department via DICs and KVIB
- Goal to support 1 lakh enterprises and generate 10 lakh jobs over five years, benefiting rural and urban entrepreneurs equally
- Widely implementable through multiple banks, with robust monitoring and district-level coordination
Conclusion
CMEGP enables self-employment by offering access to finance, subsidies, and support for young entrepreneurs across Maharashtra. If you’re considering external financing alongside this scheme, you may apply for business loan and assess the business loan interest rate to fund and scale your venture efficiently.
