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.
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.
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.
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
Offers crucial advantages for new entrepreneurs:
- Opportunity to launch ventures in manufacturing, service, and agro-based sectors
- Subsidies up to 35% reduce upfront financial burden
- Collateral-free loans up to Rs. 10 lakh and structured funding via banks
- Long and flexible repayment tenures with moratorium
- Targeted support for women, SC/ST/OBC, ex-servicemen, and differently-abled individuals
- Special quotas, including 30% reservation for women beneficiaries
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.
