Other Conditions:

1. Only one person from one family is eligible for obtaining financial assistance for setting up of projects under PMEGP. The family includes self and spouse.
2. Project cost will include capital expenditure and one cycle of working capital, project without capital expenditure are not eligible for financing under the scheme. Cost of the land should not be included in the project cost.
3. PMEGP is applicable to all new viable micro enterprises, including village industries projects except activities indicated in the negative list of village industries. Existing / old units are not eligible.

Negative List of Activities:

The following list of activities will not be permitted under PMEGP for setting up of micro enterprises / projects / units.
1. Any industry / business connected with meat (slaughtered) i.e. processing, canning and or serving items made of it as food, production / manufacturing or sale of intoxicant items like beedi / pan / cigar / cigarette, etc. any hotel or dhaba or sales outlet serving liquor, preparation / producing tobacco as raw materials, tapping of toddy for sale.
2. Any industry / business connected with cultivation of crops / plantations like Tea, coffee, Rubber, etc. Seri culture (cocoon rearing), horticulture, floriculture, animal husbandry like pisciculture, piggery, poultry, harvester machines, etc.
3. Manufacturing of polythene carry bags of less than 20 microns thickness and manufacture of carry bags or containers made of recycled plastic for storing, carrying, dispensing or packaging of food stuff and any other item which causes environmental problems.
4. Business activities like opening of grocery and stationery shops, etc. involving no manufacturing process and value addition.
5. Farm related activities like goatery, piggery, poultry, etc.
6.   All urban / rural transport activities -
i. Except auto rickshaw, tourist boat and house boat in A & N Islands
ii. Except the House boat, Shikar and Tourist boat in J & K
iii. Except Cycle Rickshaw
7. Industries such as processing of Pashmina Wool and such other products like hand spinning and hand wearing, taking advantage of Khadi programme under the purview of certification rules and availing sales rebate.
8.   Rural Transport (except Auto rickshaw in Andaman & NICO bar Islands, House Boat, Shikare & Tourist Boats in J & K and cycle rickshaw).

Financial Institutions for Providing PMEGP Loan:

1. 27 public sector banks
2. All regional rural banks
3. Co-operative banks, approved by State Level Task Force Committee headed by
Principal Secretary (Industries) / Commissioner (Industries)
4. Private Sector Scheduled Commercial Banks approved by State Level Task Force Committee headed by Principal Secretary (Industries) / Commissioner (Industries)
5. Small Industries Development Bank of India (SIDBI)

Achievement Under PMEGP During 2008-09: