Starting a Mehendi Cone unit under the Prime Minister’s Employment Generation Programme (PMEGP) is a viable micro-enterprise for Indian entrepreneurs, especially in states like Uttar Pradesh, Bihar, Rajasthan, and Madhya Pradesh where mehendi is in high demand during weddings and festivals. This project report is specifically designed for a Mehendi Cone unit with a project cost ranging from ₹1 lakh to ₹10 lakh, covering raw materials (henna powder, eucalyptus oil, lemon juice), packaging, and a small workspace. A bank-ready project report is critical for PMEGP loan approval as it demonstrates technical feasibility, financial viability, and compliance with the scheme’s guidelines. It includes CMA (Credit Monitoring Arrangement) data, Debt Service Coverage Ratio (DSCR) analysis, and 5-year financial projections (profit & loss, balance sheet, cash flow). The report also details subsidy entitlement: 35% of the project cost (up to ₹3.5 lakh) for general category and 45% (up to ₹4.5 lakh) for SC/ST/OBC/minorities/women/ex-servicemen/physically handicapped. With proper documentation, the entrepreneur can secure the remaining funding from a bank as term loan and working capital. This page provides a ready-to-use format, step-by-step guidance, and practical tips to prepare a PMEGP project report that meets bank and KVIC requirements.
To apply for PMEGP financing for a Mehendi Cone unit, the entrepreneur must be at least 18 years old and have passed at least 8th standard (for projects above ₹10 lakh, 10th pass is required). There is no upper age limit. The project cost must be between ₹1 lakh and ₹10 lakh. The unit should be a new enterprise; existing units are not eligible. Preference is given to SC/ST/OBC/minorities, women, ex-servicemen, and physically handicapped. The entrepreneur should not have availed any other government subsidy for a similar project. A project report must be prepared and submitted to the designated bank branch along with the application. The report should include detailed cost estimates, machinery specifications, raw material sourcing plan, and marketing strategy. For Mehendi Cone, key raw materials include henna powder (procured from local suppliers or directly from Rajasthan/Madhya Pradesh), eucalyptus oil, lemon juice, and packaging materials (plastic cones, labels). The unit can be set up in a rented or owned space of about 200-300 sq ft.
For a Mehendi Cone unit, the typical project cost of ₹5 lakh is allocated as: Machinery and equipment (mehendi cone filling machine, sealing machine, weighing scale, mixing vessel) – ₹1.5 lakh; Raw materials (henna powder, oil, packaging) – ₹2 lakh; Working capital – ₹1 lakh; Furniture and fixtures – ₹0.5 lakh. The PMEGP subsidy is 35% for general category (₹1.75 lakh) and 45% for special categories (₹2.25 lakh). The entrepreneur’s contribution is 10% (₹50,000) and the bank loan is the balance (₹2.75 lakh for general, ₹2.25 lakh for special). The subsidy is released to the bank after the unit is commissioned and the loan is disbursed. The loan repayment period is typically 5-7 years with a moratorium of 6-12 months. Interest rates are as per bank norms (usually MCLR + 2-3%). The project report must show a DSCR of at least 1.25 for the loan period. For a ₹5 lakh project, the monthly production capacity can be 10,000 cones, with a selling price of ₹10 per cone, yielding monthly revenue of ₹1 lakh. Operating expenses (raw materials, labor, electricity, rent, marketing) are around ₹70,000, leaving a net profit of ₹30,000 per month. The payback period is about 2-3 years.
The following documents are essential for submitting a PMEGP project report for a Mehendi Cone unit: 1. Project report in the prescribed format (including CMA data, DSCR, 5-year projections). 2. Identity proof (Aadhaar, Voter ID, PAN). 3. Address proof. 4. Age proof. 5. Educational qualification certificate (minimum 8th pass). 6. Caste certificate (if applicable). 7. BPL certificate (if applicable). 8. Two passport-size photographs. 9. Bank account details. 10. Quotations for machinery and equipment. 11. Lease agreement or ownership proof for the workspace. 12. No objection certificate from local authority (if required). 13. For women applicants, a self-declaration or certificate. The project report must be signed by the entrepreneur and a chartered accountant (CA) or a qualified project report preparer. The bank will also require a detailed business plan, market analysis, and risk assessment. It is advisable to get the project report vetted by a CA to ensure compliance with PMEGP guidelines and bank requirements. The report should be submitted to the nearest bank branch that is a PMEGP lending institution (most public sector banks, some private banks).
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Project cost ₹1–10 Lakh, NIC 20236.
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Yes — PMEGP (15–35% margin-money subsidy) is commonly used for mehendi cone 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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The subsidy is 35% of the project cost for general category entrepreneurs, and 45% for SC/ST/OBC/minorities/women/ex-servicemen/physically handicapped. For a project cost of ₹5 lakh, the subsidy amounts to ₹1.75 lakh (general) or ₹2.25 lakh (special category). The subsidy is capped at ₹3.5 lakh for general and ₹4.5 lakh for special categories.
No, PMEGP is only for new enterprises. Existing units or businesses that have already availed any other government subsidy for a similar project are not eligible. However, if you are starting a new, separate unit, you may apply, provided you meet other eligibility criteria.
For projects with a cost above ₹10 lakh, the applicant must have passed at least 10th standard. For projects up to ₹10 lakh (which covers most Mehendi Cone units), the minimum education is 8th standard. There is no upper age limit.
After submitting the project report and application to the bank, the approval process typically takes 30-60 days. This includes verification of documents, project appraisal, and sanction by the bank. The subsidy is released after the unit is commissioned and the loan is disbursed.