CS Professional · Banking and Insurance - Laws and Practice · Various Government Schemes
Arjun, a general-category rural youth, plans a manufacturing unit with a project cost of Rs 20 lakh under PMEGP. The scheme provides a margin money subsidy of 25% of project cost for general category beneficiaries in rural areas. Assuming this rate applies, what is the subsidy amount?
The margin money subsidy is Rs 5 lakh. For general category beneficiaries in rural areas, PMEGP gives 25% of project cost, and 25% of Rs 20 lakh equals Rs 5 lakh. Higher rates such as 35% apply to special categories, not to Arjun.
- ARs 3 lakh
- BRs 4 lakh
- CRs 5 lakhCorrect
- DRs 7 lakh
Explanation
Subsidy = 25% x Rs 20 lakh = Rs 5 lakh. Rs 4 lakh arises from wrongly using 20%, and Rs 7 lakh from using 35%, which is the rate for special categories in rural areas, not general category.
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