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Gramodyogrojgar Yojana


Providing more and more new avenues of employment for rural unemployed people in the country-side has all along been the prime con of the Govt of India.

Keeping in mind the expectations of various sections of Rural area. The Ministry of Agro & Rural Industries, Govt. of India has launched REGP through KVIC in a big way.

The broad objectives that the KVIC set before are 

  • To Generate Employment in Rural Areas
  • To Develop entrepreneurial skills among the rural unemployed youth
  • To Achieve the goal of rural industrialization
  • To Mobilize Bank Finance looking into the limited resources of KVIC

The Scheme envisages that

25% of the project cost for the projects up to Rs 10.00 lakhs will be provided as “Margin Money”.

For projects above Rs 10.00 lakhs and up to Rs 25.00 lakhs, the margin money of Rs 2.50 lakhs remain unchanged.

(Projects with outlay beyond Rs 25.00 Lakhs are not eligible for financing under the scheme Rural Employment Generation Program (REGP) is applicable for viable Village Industrial projects. (Khadi and Polyvastra are kept out of its purview).

In the case of weaker section beneficiaries  viz. SC/ST/OBC/Women/Physically Handicapped/Ex-servicemen and Minority Community Beneficiary/Institution and for Hill, Border and Tribal Areas, North Eastern Region, Sikkim, Andaman & Nicobar Islands, Lakshadweep, Margin Money will be at the rate of 30 per cent of the project cost up to Rs 10.00 lakhs. For projects above Rs 10.00 lakhs and up to Rs 25.00 lakhs, the margin money of Rs 3.00 lakhs remain unchanged.

The Bank will initially sanction 90% of the project cost in case of General category of Beneficiary/Institution and 95% of the project cost in case of Weaker Section Beneficiary/Institution and disburse full amount suitably for setting up of the project.