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It will also include any area even if classified as town, provided its population does not exceed 20,000 persons.Any area classified as Village as per the revenue record of the State/ Union Territory, irrespective of population.To increase the wage-earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.

To bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self- employment opportunities to the extent possible, at their place.

To generate employment opportunities in rural as well as urban areas of the country through setting up of new self- employment ventures/ projects/ micro enterprises.

The said scheme has merged two schemes namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP). Government of India has approved the introduction of a new credit linked subsidy programme called Prime Minister’s Employment Generation Programme (PMEGP).