Prime Minister Rozgar Yojana Of India

ABOUT PMRY

I. GENESIS OF PMRY

1. Unemployment is considered as a bane of India's development particularly the educated unemployed youth who become unproductive and frustrated are to be paid special attention. The small-scale sector includes village and cottage sectors are found out to be the best means to solve the growing unemployment problem. Self-employment is the only solution to the unemployment. Policy makers and economists studied and drew conclusion that setting up a small scale unit with a moderate investment has got the potential to provide employment to about 4 to 5 people directly and indirectly. The satisfaction of self-employment and the contentment of contributing to the National Income and proving livelihood to few unemployeds can have positive multiplier effect. Adding to it the SSI sector has got the inherent advantage of utilising the local resources, technologies for productive purposes and at the same time could satisfy the needs of the local people and exploit the local market at micro level.

2. Taking all these into consideration the Central Government initially launched Self Employment Scheme for Educated Unemployed Youth (SEEUY) popularly known as. Gramodaya Scheme introduced by Government of India in 1985 wherein financial assistance of not more than Rs.35000 was provided for industries, Rs.25000 for service units and Rs.15000 for business ventures by way of composite loans to eligible educated unemployed youth to start their small enterprises. District Industries Centre (DICs) operated this central scheme at the district level, where 25% of the sanctioned loan amount was granted as subsidy by Central Government to be deposited as fixed deposit in the name of the candidate. This scheme could not be continued successfully. It was estimated that more than 70% of the units became sick and subsequently closed down.

3. Hon'ble Prime Minister of India, announced a new scheme the Prime Ministers' Rozgar Yojana (PMRY) on 15th August, 1993

4. The scheme was launched on the auspicious day of 2nd October, 1993, the birth Anniversary of Mahatma Gandhi all over the country The main objective of the PMRY scheme was to provide easy subsidized financial assistance to educated unemployed youth for starting their own enterprises in manufacturing, business & service and trade sectors. Initially the scheme was aimed at providing self-employment to one million educated unemployed youth in the country by setting up 7 lakh micro enterprises through inducting service and business ventures over a period of 2 Ð'Ð... years. The scheme was a stupendous success and caught the imagination of the youth. Overwhelmed with the response and ever-increasing need, the Government has decided to make it a permanent scheme and framed modalities & guidelines for its successful implementation and to fulfil the purpose for which it is designed.

5. Salient features of PMRY Scheme:

Ð'* This is a centrally sponsored scheme

Ð'* The Development Commissioner (Small-Scale Industries) under Ministry of Small Scale, Rural and Agro, Industries Government of India is the apex body for this scheme.

Ð'* The respective Commissioner/Director of Industries implements the scheme at the State level except the four metropolitan cities, with an overall monitoring by the concerned Secretaries of Industries.

Ð'* The implementation agencies at the grass root level are District Industries Centre (DIC) who would be instrumental for the grounding of the units.

Ð'* Small Industries Service Institute(SISI) located in the four Metropolitan cities of Delhi, Kolkata, Mumbai and Chennai are the implementing agencies of this scheme.

Ð'* The DCSSI has setup a special PMRY division in the headquarters under the able guidance of an IAS officer. DCSSI formulates the rules, regulations and guideline instructions and provides clarifications on all the matters pertaining to PMRY scheme. It has also devised a complete feedback information by the means of getting monthly, quarterly and annual progress reports from all the states to closely monitor the implementation and progress of the scheme.

Ð'* Similarly at the state level, State Level PMRY Committee meetings monitors the progress of the scheme every quarter.

Ð'* The yearly targets for number of beneficiaries for each state is fixed by DCSSI.

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II. PARAMETERS OF PMRY

1. Age: For all educated unemployed between the age group of 18-40 years, in general with a 10 years relaxation for SC/STs, ex-servicemen, physically handicapped and women.

2. Educational Qualification: 8th passed. Preference will be given to those who have been trained for any trade in Government recognised/approved institutions for a duration of at least six months

3. Family income: Neither the income of the beneficiary along with the spouse nor the income of parents of the beneficiaries shall exceed Rs.40000 pa

4. Residence: Permanent resident of the area for at least 3 years.

5. Defaulter: Should not be a defaulter to any nationalized bank / financial institution/cooperative bank. Further, a person already assisted under other subsidy linked government schemes would not be eligible under this scheme.

6. Activities covered: All economically viable activities including agriculture and allied activities but excluding direct agricultural operations like raising crop, purchase of manure etc.

7. Project cost: Rs.1.00 lakh for business sector. Rs. 2.00 lakhs for other activities. Loan to be of composite nature. If two or more eligible persons join together in a partnership, project upto Rs.10.00 lakhs are covered. Assistance shall be limited to individual admissibility.

8. Subsidy and Margin money: Subsidy will be limited to 15% of the project cost subject to ceiling of Rs.7,500/- per entrepreneur. Banks will be allowed to take margin money from the entrepreneur varying from 5% to 16.25% of the project costs as to make the total of the subsidy and the margin money equal to 20% of the project cost.

9. Collateral: No collateral for project upto Rs.1 lakh. Exemption from collateral in case of partnership project will also be limited to an amount of Rs.1 lakh per person participating in the project.

10. Rate of interest and repayment schedule: Normal bank rate of interest shall be charged. Repayment schedule may range between 3 to 7 years after an