Is mushroom farming eligible under PMEGP?

Partly. PMEGP funds manufacturing — a compost unit, a spawn lab or a processing unit — on projects up to ₹50 lakh, at 15-35% margin money depending on category and location. A cultivation shed is not a PMEGP project: the growing rooms go to MIDH (up to ₹12 lakh) or NHB.

What is the maximum project cost under PMEGP?

₹50 lakh for a manufacturing unit, such as a compost unit, spawn lab or processing unit. It covers the building, machinery and first-cycle working capital; the cost of land is not counted.

Can I apply for PMEGP if I'm already employed?

No, PMEGP is for self-employment. You cannot be a salaried employee or have an existing business unit that received government subsidy.

How much own contribution is needed?

General category needs 10% own contribution, while SC/ST/OBC/Women/Ex-Servicemen need only 5%. The rest comes from bank loan and government subsidy.

How long does PMEGP approval take?

Typically 60-90 days from application to bank sanction. The subsidy release happens 3-6 months after unit commissioning and inspection.

Can I combine PMEGP with MIDH or NHB?

Not on the same asset — one government subsidy per unit. A farm can take PMEGP on a separate compost, spawn or processing unit and MIDH or NHB on the growing rooms only when they are distinct project components with their own costs; confirm the split with the District Industries Centre and your bank before you apply.

PMEGP 2026-27

PMEGP Loan for a Mushroom Farming Project

Get 15-35% margin money on a mushroom compost, spawn or processing unit up to ₹50 lakh. Ideal for first-generation entrepreneurs.

Apply on KVIC Portal →Get DPR Prepared

Agrimotion Engineering•GSTIN: 09AAZCA0158R1ZP

The short answer

How to Get PMEGP Subsidy for Mushroom Farming?

PMEGP (Prime Minister's Employment Generation Programme) pays 15-35% margin money on projects up to ₹50 lakh: 15% urban / 25% rural for the general category, 25% / 35% for SC/ST/OBC/women. It funds manufacturing — a mushroom compost unit, spawn lab or processing unit — not a cultivation shed, which goes to MIDH or NHB. Own contribution: 5-10%. Apply online at kviconline.gov.in with a DPR; approval takes 60-90 days.

Subsidy Structure

Category	Own Contribution	Subsidy	Bank Loan
General (Urban)	10%	15%	75%
General (Rural)	10%	25%	65%
SC/ST/OBC/Women/Ex-Serviceman (Urban)	5%	25%	70%
SC/ST/OBC/Women/Ex-Serviceman (Rural)	5%	35%	60%

For a ₹25 lakh mushroom project, rural SC/ST applicant gets ₹8.75 lakh subsidy + needs only ₹1.25 lakh own money.

Eligibility Criteria

Age 18+ years

Minimum 8th pass (for projects above ₹10 lakh in manufacturing)

No previous government subsidy availed for self-employment

Not a defaulter on any existing bank loan

Project cost up to ₹50 lakh for a manufacturing unit — a compost unit, spawn lab or processing unit, not a cultivation shed

Only new projects — existing units not eligible

Documents Required

Aadhaar Card & PAN Card

Educational certificates (8th pass minimum)

Caste/category certificate (for higher subsidy)

Detailed Project Report (DPR)

Land ownership / lease documents

2 passport-size photographs

Bank account statement (last 6 months)

Quotation from equipment supplier (MushroomWale)

Application Process

Online Application

Apply at kviconline.gov.in with project details and DPR

KVIC/DIC Scrutiny

District Industries Centre reviews application within 15 days

Bank Forwarding

Approved applications forwarded to nearest bank branch

Bank Sanction

Bank sanctions loan after site visit and DPR evaluation

Unit Setup

Start construction with first disbursement (60% typically)

Subsidy Release

Government subsidy released to bank after unit commissioning

Related Financing & Resource Guides

All Subsidy Schemes

NHM, NHB, NABARD — complete overview

NABARD Loan

Bank loans at 9-11% with refinancing

DPR Preparation

Bankable DPR with 5-year projections

Business Plan

Complete DPR template

Cost Breakdown

Every item priced

Turnkey Setup

End-to-end farm delivery

Frequently Asked Questions

The company behind the build

Why Choose MushroomWale

01
Engineering Expertise
Agrimotion Engineering Private Limited is a registered EPC company (CIN U43900UP2023PTC185328, GSTIN 09AAZCA0158R1ZP) based in Firozabad, Uttar Pradesh.
02
Proven Track Record
Turnkey mushroom projects from a 2-room starter to a 20-room commercial farm.
03
Bank-Recognized DPRs
Bank-format DPRs prepared to NABARD, NHB and MIDH norms for loan and subsidy applications.