CHIEF MINISTER EMPLOYMENT GENERATION PROGRAMME (CMEGP)
By Directorate of Industries, Government of Maharashtra
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Quick Answer
Unemployed youth in Maharashtra get a bank term loan plus a 15% to 35% margin-money subsidy to start a new manufacturing, service or agro-based venture.
- Funding amount
- Up to ₹17.5L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Maharashtra
About this subsidy
Unemployed youth in Maharashtra can set up a new manufacturing, service, agro-based or primary agro-processing venture with a bank term loan plus a government subsidy called margin money. E-vehicle based goods transport, single-brand service ventures and mobile service units also qualify. The scheme was launched by the Government of Maharashtra (GR शासन निर्णय क्र. योजना-२०१९/प्र.क्र.१२१/उद्योग ७ dated on 01.08.2019). The Directorate of Industries (DOI) implements and monitors it through District Industries Centers (DICs), the Maharashtra State Khadi and Village Industries Boards (KVIB) and participating banks. The margin money is re-appropriated into your loan account once you finish repaying and complete three years of activity, so part of the loan becomes a grant.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Benefits & Funding
- Amount
- Up to ₹17.5L
What You Get
The CMEGP scheme provides substantial financial backing for new ventures. For manufacturing sector projects, the maximum admissible cost is ₹50 lakh, while for service, Agro-based/Primary Agro processing, E-vehicle based goods transport, and other businesses, the maximum project cost is ₹20 lakh. Beneficiaries are required to contribute 5% to 10% of the project cost, with the remaining balance provided by banks as a term loan. A significant component of the scheme is the subsidy, or 'margin money', which varies based on beneficiary category and project location:
- General Category applicants receive a 15% subsidy for urban projects and 25% for rural projects.
- Special Category applicants (including SC, ST, Women, Ex-servicemen, Differently abled, VJNT, OBC, Minority) receive a higher 25% subsidy for urban projects and a 35% subsidy for rural projects. This subsidy is a grant-in-aid that is re-appropriated into the applicant's loan account after three successful years of activity and timely loan repayment, significantly reducing the effective repayment burden.
- Disbursement
- Milestone Based
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process involves a multi-stage evaluation. Initially, applications submitted online are reviewed by the District Level Scrutiny and Coordination Sub-Committee (DLSCC), which operates under the chairmanship of the General Manager of the respective District Industries Centers (DICs). This committee is responsible for scrutinizing all applications to ensure they meet the scheme's eligibility criteria and for preparing a preliminary list of qualified applicants. Subsequently, this primary list of eligible applicants is submitted to and approved by the District Level Task Force Committee (DLTFC). Only after DLTFC approval are the applications forwarded to participating banks for their final assessment and loan sanctioning process.
Application Process
- 1
Apply Online
Submit your application through the official CMEGP online portal.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is the primary objective of the CMEGP scheme?
The Chief Minister Employment Generation Programme (CMEGP) aims to promote self-employment among unemployed youth in Maharashtra by providing financial assistance and subsidies to establish new manufacturing, service, and agro-based enterprises.
What are the maximum project costs supported under CMEGP?
The maximum project cost admissible under the manufacturing sector is ₹50 lakh. For projects in the service, agro-based/primary agro-processing sector, E-vehicle based goods transport, and other businesses, the maximum admissible project cost is ₹20 lakh.
How much subsidy can a beneficiary receive?
The rate of subsidy (margin money) depends on the beneficiary category and project location. General Category applicants receive 15% (urban) or 25% (rural) of the project cost. Special Category applicants (SC/ST/Women/Ex-servicemen/Differently-abled/VJNT/OBC/Minority) receive 25% (urban) or 35% (rural) of the project cost.
Is there an age limit for applicants?
Yes, applicants must be between 18 and 45 years of age. For applicants belonging to Special Categories, there is an age relaxation of 5 years.
What are the educational requirements for CMEGP?
Applicants for projects/units above ₹10 lakh must have a minimum 7th standard pass qualification. For projects/units above ₹25 lakh, the required educational criterion is a minimum 10th standard pass.
What is the application process for CMEGP?
The application process is entirely online. Applicants first fill out an application on the official portal. This is followed by scrutiny by the District Level Scrutiny and Coordination Sub-Committee (DLSCC), approval by DLTFC, bank sanctioning, entrepreneurship development training, and finally, loan and subsidy disbursement. The subsidy is re-appropriated after three years of successful activity and timely loan repayment.
Sources
Data on this page is compiled from official program and provider references.
