CHIEF MINISTER EMPLOYMENT GENERATION PROGRAMME (CMEGP)

The Chief Minister Employment Generation Programme (CMEGP) was introduced by the Government of Maharashtra through GR शासन निर्णय क्र. योजना-२०१९/प्र.क्र.१२१/उद्योग ७ dated 01.08.2019. It works to build entrepreneurship and create employment for the state's youth. The Directorate of Industries (DOI), under the Industries Department, Government of Maharashtra, carries out and oversees the scheme. Delivery on the ground happens via District Industries Centers (DICs), the Maharashtra State Khadi and Village Industries Boards (KVIB), and participating banks throughout the state. The scheme's core aim is to help unemployed youth obtain finance so they can start enterprises of their own across a range of sectors.

New ventures eligible for CMEGP support span manufacturing, service, agro-based and primary agro-processing activities, e-vehicle based goods transport, and other businesses such as single-brand service ventures and mobile service units. Funding under the programme rests on a substantial bank term loan along with a government subsidy. This subsidy, termed 'margin money', lowers the financial load on beneficiaries. Once the repayment schedule is completed successfully and three years of activity have passed, the subsidy is re-appropriated into the loan account, in effect turning part of the loan into a grant. By combining loan and subsidy in this way, CMEGP supports self-employment and sustainable economic development at the grassroots level in Maharashtra.

1. **Step 01: Online Application**: Complete and submit the application form available online at the official CMEGP portal (https://maha-cmegp.gov.in).

2. **Step 02: District Level Scrutiny**: Applications received are examined by the District Level Scrutiny and Coordination Sub-Committee (DLSCC), which is headed by the General Manager of the concerned District Industries Centre (DIC).

3. **Step 03: Primary List Preparation**: On the basis of this scrutiny, the DLSCC draws up a primary list of applicants found eligible.

4. **Step 04: DLTFC Approval**: This primary list of eligible applicants is placed before the District Level Task Force Committee (DLTFC) for approval.

5. **Step 05: Bank Forwarding**: Once approved, the list of applicants is passed on to the participating banks so that processing can continue.

6. **Step 06: Bank Sanctioning & EDP Training**: The banks sanction the term loans. In addition, beneficiaries are required to complete Entrepreneurship Development Programme (EDP) training.

7. **Step 07: Loan Disbursement**: After the loan has been sanctioned and the training completed, the banks release the loan amount.

8. **Step 08: Subsidy Claim**: The bank then lodges a claim for the subsidy (margin money) with the General Manager (GM), DIC.

9. **Step 09: Subsidy Disbursement**: The subsidy claim is approved by the Head Office (HO), following which the margin money is disbursed through the nodal bank.

10. **Step 10: Re-appropriation of Margin Money**: Once the unit has operated successfully for three years and the bank loan has been repaid on time, the margin money (grant-in-aid) is re-appropriated into the applicant's loan account, whereby that portion of the loan becomes a grant. This is done after the necessary validation from the GM, DIC.

Applications received online first go before the District Level Scrutiny and Coordination Sub-Committee (DLSCC), chaired by the General Manager of the concerned District Industries Centres (DICs). This committee examines each application against the scheme's eligibility criteria and draws up a preliminary list of applicants found qualified.

That primary list is then placed before the District Level Task Force Committee (DLTFC) for approval. Applications move to the participating banks for final assessment and loan sanctioning only once the DLTFC has cleared them.