CHIEF MINISTER EMPLOYMENT GENERATION PROGRAMME (CMEGP)

The Chief Minister Employment Generation Programme (CMEGP) is an initiative of the Government of Maharashtra, established through GR शासन निर्णय क्र. योजना-२०१९/प्र.क्र.१२१/उद्योग ७ dated 01.08.2019. The Directorate of Industries (DOI), operating under the state's Industries Department, handles implementation and oversight. The programme's reach extends through District Industries Centers (DICs), the Maharashtra State Khadi and Village Industries Boards (KVIB), and participating banks. Its stated purpose is to help unemployed youth secure financing to establish enterprises across various sectors.

CMEGP supports new ventures in manufacturing, services, agro-based and primary agro-processing activities, e-vehicle goods transport, single-brand service ventures, and mobile service units. The financing structure combines a bank term loan with a government subsidy, termed 'margin money.' This subsidy is credited back into the loan account after the repayment schedule is completed and three years of operation have passed, effectively converting part of the loan into a grant. This arrangement is intended to lessen the financial load on beneficiaries and promote self-employment at the local level in Maharashtra.

**Step 01: Online Application** – Submit the application form on the CMEGP portal (https://maha-cmegp.gov.in).

**Step 02: District Level Scrutiny** – The District Level Scrutiny and Coordination Sub-Committee (DLSCC), headed by the General Manager of the respective District Industries Center (DIC), examines the applications received.

**Step 03: Primary List Preparation** – Based on this examination, the DLSCC draws up a primary list of applicants who meet the eligibility criteria.

**Step 04: DLTFC Approval** – The District Level Task Force Committee (DLTFC) then ratifies the primary list of eligible applicants.

**Step 05: Bank Forwarding** – The approved list is sent to participating banks for subsequent handling.

**Step 06: Bank Sanctioning & EDP Training** – Banks sanction the term loans, and beneficiaries undergo the Entrepreneurship Development Programme (EDP) training.

**Step 07: Loan Disbursement** – Following sanction and training, banks release the loan amount.

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

**Step 09: Subsidy Disbursement** – The Head Office (HO) clears the subsidy claim, and the margin money is released through the nodal bank.

**Step 10: Re-appropriation of Margin Money** – After three years of successful operations and punctual repayment of the bank loan, the margin money (grant-in-aid) is re-appropriated into the applicant’s loan account, turning that segment of the loan into a grant, subject to verification by the GM, DIC.

The evaluation of applications is carried out in stages. First, the District Level Scrutiny and Coordination Sub-Committee (DLSCC), chaired by the General Manager of the relevant District Industries Centers (DICs), reviews all online submissions. This body checks each application against the scheme’s eligibility conditions and draws up an initial shortlist of those who qualify.

This shortlist is then sent to the District Level Task Force Committee (DLTFC) for its endorsement. Once the DLTFC gives its approval, the applications are passed on to the participating banks, which conduct the final appraisal and decide on loan sanctioning.