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CMEGP and PMEGP – subsidy for new businesses

Both pay 15% to 35% of the project cost as margin money through your bank loan. Here is how they compare and how to apply.

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Side by side

CMEGP (Maharashtra)PMEGP (Central – KVIC)
Maximum project cost₹100 lakh manufacturing; ₹50 lakh service and agri-allied₹50 lakh manufacturing; ₹20 lakh service
Subsidy – general category15% urban / 25% rural15% urban / 25% rural
Subsidy – special category*25% urban / 35% rural25% urban / 35% rural
Rupee capsManufacturing ₹7.5 / 12.5 lakh (general), ₹12.5 / 17.5 lakh (special); service ₹3 / 5 lakh (general), ₹5 / 7 lakh (special)Percentage of project cost within the project limit
Own contribution10% general, 5% special10% general, 5% special
WhoResidents of Maharashtra, 18+, new units18+, new units; 8th pass for larger projects
Apply atCMEGP portal – District Industries CentrePMEGP e-portal – KVIC / KVIB / DIC

*Special category includes women, SC/ST, OBC, minorities, ex-servicemen, divyang, transgender and others as defined in each scheme. Land cost is not part of the project cost.

Step by step

  1. Choose the activity and check it is not on the scheme's negative list.
  2. Prepare a bankable project report with realistic sales and cost figures.
  3. Apply online; the application goes to the district task force for interview / scrutiny.
  4. The recommended file goes to the bank; the bank appraises and sanctions the loan.
  5. Training (EDP) where required, then first loan disbursement.
  6. The bank claims the margin money; it is held as a term deposit and adjusted after about 3 years if the unit is running.
Check professional and consultancy activities with the District Industries Centre before you apply – many offices treat them as not eligible.

Common questions

Can an existing business get CMEGP or PMEGP?

Only new units. PMEGP has a separate second loan for upgrading units that already took PMEGP or Mudra and repaid well – 15% subsidy on projects up to ₹1 crore (manufacturing) or ₹25 lakh (service).

Is there an upper age limit?

PMEGP needs the applicant to be above 18. Under the CMEGP GR of 21.05.2025 there is no upper age limit.

Is the subsidy paid in cash?

No. The margin money is kept by the bank as a term deposit against your loan (usually for 3 years) and then adjusted against the loan, provided the unit is running.

Can I take both CMEGP and PMEGP?

No – only one of them, and only once.

Sources: CMEGP GR dated 21.05.2025 (effective 01.04.2025); revised PMEGP guidelines and PIB release dated 14.05.2026.