Govt. Policy

Prime Minister's Rozgar Yojana

This scheme has been launched by the Govt. of India in 1993 to provide self employment opportunities to the unemployed youth and women. Under the Prime Minister Rozgar Yojna, loans upto Rs. 1.00 lac for business and Rs. 2.00 lac for Industrial & Agricultural activities are advanced by the Banks to those unemployed Youth and Women who are 18 to 35 and 18 to 45 years of age respectively and whose income (including the income of the parents / spouse) does not exceed Rs. 40 thousand per annum and he should be permanent resident of the area or at least three years but in case o0f married women the residency criteria applies to her husband or in-laws. The educational qualifications for eligibility under the scheme is 8th passed. The beneficiary should not be a defaulter to any nationalized bank / financial institution. Subsidy to the extent of 15% of the project cost subject to a ceiling of Rs. 7500/- per entrepreneurs is provided. Training to the beneficiaries. The other salient features of the scheme have been given in the enclosed resume of the scheme. The interested candidates should approach the General Manager, District Industries Centre, in the concerned districts they reside. 

The upper age limit has been relaxed beyond 35 years by 10 years for SCs/STs and women and the educational qualifications for eligibility under the scheme has been relaxed form matric (passed or failed) to VIIIth passed. Similarly, the upper limit of project cost has been increased form Rs. 1 lakh to Rs. 2 lakhs (Rs. 1 lakh for business sector and Rs. 2 lakhs for other activities). The PMRY scheme would now cover all economically viable activities including agriculture and allied activities but excluding direct agricultural operations like raising crop, purchase of manure etc.

The details of the changes made in the parameters of the PMRY Scheme, are given in Annexure-I. The additional relaxations in respect of certain parameters of the scheme in respect of North-Eastern States are indicated at Annexure-II.                                                                                           

Annexure-I
PRIME MINISTER ROZGAR YOJANA (PMRY)
  ELIGIBILITY CRITERIA

Parameter

 

  Age 

I)  18 to 35 years for all educated unemployed.

ii)  18 to 40 for all educated unemployed in North-East States.

iii)  18 to 45 years for Scheduled castes/Scheduled Tribes, Ex-servicemen, Physically Disabled and Women.

Educational Qualification

VIII Pass. Preference will be given to those who have been trained for any trade in Government recognized/approved institutions for duration of at least six months.

Family Income

Neither the income of the beneficiary along with the spouse nor the income of parents of beneficiaries shall not exceed Rs. 40,000/- per annum.

Residence

Permanent resident of the area for at least 3 years. (Relaxed for married women. In case of married women the residency criteria applies to her husband or in-laws.)

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.

Activities covered

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

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 joins together in a partnership, project upto Rs. 10.00 lakhs are covered. Assistance shall be limited to individual admissibility.

Subsidy & 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 cost so as to make the total of the subsidy and the margin money equal to 20% of the project cost.  

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. 1.00 lakh per person participating in the project.

Rate of Interest & Repayment Schedule

Normal bank rate of interest shall be charged. Repayment schedule may range between 3 to 7 years after an initial moratorium as may be prescribed.

Training & other assistance

The training expenses and operational expenditure to be covered within the ceiling of Rs. 2,000/- per case. The existing system of revising the scale of expenditure in consultation with the Finance for various activities and flexibility would be available to the implementing agencies of the State and Central levels subject to condition that over all training and operating expenses remain within the ceiling of Rs. 2,000/- per case sanctioned. 

Implementing Agency

The district Industry Centres and the Directorates of Industries shall mainly be responsible for scheme implementation along with banks.

Linkages of targets with recovery

Basic minimum targets based on the population and the number of educated unemployed. Additional targets would be linked to the recovery of loans sanctioned, past performance of sanctions or special circumstance prevailing the State/UT.

Reservation

Preference should be given to weaker sections including women. The scheme envisages 22.5% reservation for SC/ST and 27% for other Backward Class (OBCs). In case SC/ST/OBC candidates are not available. States/Uts govt. will be competent to consider other categories of candidates under PMRY.

URE-II TO O.M. NO. 14/14/97-SSI(P)
RELAXATION OF PMRY NORMS FOR NORTH EASTERN REGION

The PMRY would be expended in scope to cover areas of horticulture, piggery, poultry, fishing, small tea gardens, etc. so as to cover all economically viable activities. PMRY would have a family income ceiling of Rs. 40,000 per annum for each beneficiary along with his/her spouse and upper age limit will be relaxed to 40 years. Project costing upto Rs. 2 lakhs in other than business sectors will be eligible for assistance. No collateral will be insisted for projects costing upto Rs. 1 lakh. Group financing upto Rs. 5 lakhs will be eligible. Scheme will have a subsidy component @ 15% with an upper ceiling of Rs. 15.000/-. The margin money may vary from 5% to 12.5% of the project cost to make the subsidy and margin contribution at 20% of the project cost.  

 
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