For entrepreneurs in India looking to start a face mask manufacturing unit, the Prime Minister’s Employment Generation Programme (PMEGP) offers a lucrative path with substantial subsidy support. A well-prepared project report is not just a formality—it is your gateway to bank loan approval and subsidy disbursement. This page provides a ready-to-use PMEGP project report format for a face mask unit under NIC code 17095, covering project costs between ₹3 lakh and ₹25 lakh. Whether you are in Delhi, Mumbai, or a Tier-2 city, a bank-ready report must include CMA (Credit Monitoring Arrangement) data, Debt Service Coverage Ratio (DSCR) calculations, and 5-year financial projections. These elements demonstrate viability to lenders and ensure you meet PMEGP guidelines. Our format includes detailed assumptions on raw material costs (non-woven fabric, meltblown, ear loops), machinery (mask-making machine, ultrasonic welder), and manpower. We also explain how to calculate subsidy eligibility—up to 35% of the project cost in general areas and 25% in urban areas. Download the format, customize it to your location, and increase your chances of securing finance under this government scheme.
To qualify for PMEGP subsidy for a face mask unit, the applicant must be an individual above 18 years of age, with at least an 8th standard pass for projects above ₹10 lakh. For projects up to ₹10 lakh, minimum education is 8th pass for manufacturing units. The unit must be a new enterprise—existing businesses are not eligible. There is no income ceiling for availing the subsidy, but the promoter should not have defaulted on any loan. The project cost should be between ₹3 lakh and ₹25 lakh, and the unit must be set up in a non-farm activity. For face mask manufacturing, the NIC code 17095 applies. Women entrepreneurs, SC/ST, OBC, minorities, and physically handicapped persons get preference and higher subsidy rates (35% in rural areas, 25% in urban areas for general category). The project report must clearly mention the applicant’s category to claim additional benefits.
A typical face mask unit under PMEGP requires a project cost ranging from ₹3 lakh (micro unit with semi-automatic machine) to ₹25 lakh (fully automatic line with multiple machines). For a 5-10 lakh unit, the cost breakup includes: machinery (mask-making machine, ultrasonic welder, cutting machine) – ₹2-4 lakh; raw materials (non-woven fabric, meltblown, nose wire, ear loops) – ₹1-2 lakh; working capital – ₹1-2 lakh; and other costs (electricity, furniture, registration) – ₹0.5-1 lakh. Under PMEGP, the promoter contributes 5-10% of the project cost (5% for SC/ST/OBC/women/physically handicapped, 10% for others). The remaining is financed by the bank as term loan (60-70%) and subsidy from KVIC (25-35%). For a ₹10 lakh project in a general area, the subsidy is ₹2.5 lakh (25%), promoter margin ₹1 lakh (10%), and bank loan ₹6.5 lakh. The project report must include a detailed CMA format showing the source of funds and application.
A complete PMEGP project report for a face mask unit must be accompanied by: 1) Identity proof (Aadhaar, Voter ID, PAN), 2) Address proof, 3) Educational qualification certificate (minimum 8th pass), 4) Caste certificate (if applicable for higher subsidy), 5) Project report in the prescribed format (including CMA data, DSCR, 5-year projections), 6) Land/building documents (ownership or lease agreement), 7) Quotations for machinery and raw materials, 8) Estimated working capital assessment, 9) Bank statement for last 6 months, 10) Income tax returns (if any). For the project report itself, include a detailed description of the manufacturing process, market potential in your city/state, and break-even analysis. The DSCR should be above 1.25 to satisfy bank norms. Ensure all documents are self-attested and submitted in duplicate. The report must be signed by the applicant and countersigned by a Chartered Accountant or consultant.
Every report is formatted to the exact standards required by Indian banks and government departments.
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PMEGP format + face mask unit economics combined correctly.
Subsidy/margin money for PMEGP auto-computed.
Project cost ₹3–25 Lakh, NIC 17095.
CMA, DSCR ≥ 1.50, 5-year projections.
Editable; Word + Excel exports; first report free.
Yes — PMEGP (15–35% margin-money subsidy) is commonly used for face mask unit. The report is formatted to PMEGP requirements with subsidy/margin money shown.
15–35% margin-money subsidy — computed automatically in the means-of-finance and subsidy sections.
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For general category entrepreneurs in rural areas, the subsidy is 25% of the project cost. For special categories (SC/ST/OBC/women/minorities/physically handicapped), it is 35%. In urban areas, the subsidy is 25% for general and 35% for special categories. The maximum project cost eligible is ₹25 lakh.
No, PMEGP is only for new enterprises. Existing businesses are not eligible. However, if you have a different business, you can start a new face mask unit as a separate entity. The applicant should not have availed any other government subsidy for the same project.
Banks typically require a Debt Service Coverage Ratio (DSCR) of at least 1.25 for PMEGP loans. A higher DSCR (1.5 or above) improves loan approval chances. Your project report should show realistic projections of net profit and depreciation to cover loan installments and interest.
After loan approval and disbursement by the bank, the subsidy is released by KVIC in two installments: 50% after 50% of the loan disbursement and 50% after full disbursement. The process usually takes 3-6 months from loan sanction. Ensure your project report is accurate to avoid delays.