Prime Minister Rozgar Yojana

Prime Minister of the India announced on August 15, 1993 a scheme for giving self-Employment to learned jobless Youth in the country. This program is to give self-employed breaks to one million jobless educated adolescents in the country. This scheme is known as Prime Minister Rozgar Yojana. Officially the Scheme has been started on October 2nd 1993 in the country.

Objectives: The PMRY has been intended to give employ to over million People by starting seven lakhs micro ventures by the jobless educated youth. It recounts to the starting of self-employment schemes through commerce, service & business means. The proposal as well seeks to link presumed non-governmental associations in execution of PMRY scheme particularly in the assortment, guidance of entrepreneurs & homework of plan report.

Coverage: The scheme aims to take urban regions only in the year nineteen ninety three to ninety four & entire country starting by ninety four to five. After 1994-95, the current self-employment Scheme for the Educated Unemployed Youth (SEEUY) will be included in PMRY.

Eligibility: Any jobless learned person residing in any region of the country whether rural or urban satisfying the subsequent circumstances will be entitled for aid. Though, during 1993-94, the proposal would be function in urban regions only. Age: Between eighteen to forty years (SC/ST forty five years). Qualification: Matric (conceded or failed) or ITI conceded or having done Govt. funded technical classes for a least period of six months. Residency: Permanent occupant of the region for minimum of three 3 years Document such as Ration Card would comprise enough evidence for this intention. In its deficiency any other certificate to the approval of the Task Force ought to be shown. Family Income: Maximum Rs.40, 000/- yearly. Family would signify spouse & parents of the recipient & family earnings would comprise earnings from all resource, whether, salary, pay, retirement fund, farming, business, lease etc. Defaulter: person must not be a nonpayer to any national bank/fiscal organization/co-operative store.

Reservation: Inclination should be set to weaker segment counting women. The system foresees 22.5% reservation for SC/ST & 27% for Other Backward Classes (OBCs).

Prime Ministers Rozgar Yojana (P.M.R.Y) For Educated Unemployed Youth Prime Minister Rozgar Yojana for providing self-Employment to Educated Unemployed Youth was announced by the Prime Minister on 15th August, 1993 to provide self-employed opportunities to one million educated unemployed youth in the country. The Scheme has been formally launched on 2nd October, 1993 . 1. Objectives: The PMRY has been designed to provide employment to more than a million Person by setting up of 7 lakhs micro enterprises by the educated unemployed youth. It relates to the setting up of the self-employment ventures through industry, service and business routes. The scheme also seeks to associate reputed nongovernmental organisations in implementation PMRY scheme especially in the selection, training of entrepreneurs and preparation of project profiles. 2. Coverage: The scheme intends to cover urban areas only during 1993-94 and whole of the country from 1994-95 onwards. From 1994-95 onwards, the existing selfemployment Scheme for the Educated Unemployed Youth (SEEUY) will be subsumed in PMRY.

3. Eligibility: Any unemployed educated person living in any part of the country rural or urban fulfilling the following conditions will be eligible for assistance. However, during 1993-94, the scheme would be operated only in urban areas. a. Age: Between 18 to 40 years (SC/ST - 45 years). b. Qualification: Matric (Passed or Failed) or ITI passed or having undergone Govt. sponsored technical course for a minimum duration of 6 months. c. Residency: Permanent resident of the area for at least 3 years Document like Ration Card would constitute enough proof for this purpose. In its absence any other document to the satisfaction of the Task Force should be produced. d. Family Income: Upto Rs.40,000/- per annum. Family for this purpose would mean spouse and parents of the beneficiary and family income would include income from all sources, whether, wages, salary, pension, agriculture, business, rent etc. e. Defaulter: Should not be a defaulter to any nationalised bank/financial institution/co-operative bank. 4. Reservation:

Preference should be given to weaker section including women. The scheme envisages 22.5% reservation for SC/ST and 27% for other Backward Classes (OBCs) 5. Project Cost: Projects upto Rs.1 lakh are covered under the scheme in case of individuals. If two or more eligible persons join together in a partnership, the project with higher costs would also be covered provided share of each person in the project cost is Rs.1 lakhs or less. 6. Margin Money, Bank Loans and Rates of Interest: Entrepreneur is required to contribute 5 percent of project cost as margin money in cash. Balance 95 percent would be sanctioned as composite loan by Bank at the rates of interest applicable to such loans under guidelines of Reserve Bank of India issued from time to time. 7. Collatoral guarantee on bank loans: The loans would not require any collateral guarantee. Only assets created under the Scheme would be hypothecated/mortgaged/pledged to the Bank. 8. Subsidy:

Government of India would provide subsidy at the rate of 15 percent of the project cost subject to a ceiling of Rs.7, 500/- per entrepreneur. In case more than one entrepreneur join together and set up a project under partnership, subsidy would be calculated for each partner separately at the rate of 15 percent of his share in the project cost, limited to Rs.7, 500 (per partner). 9. Repayment Schedule: Repayment Schedule would range from3 to 7 years after an initial moratorium of 6 to 18 months as decided by the Bank. 10. Training: Scheme envisages compulsory training for entrepreneurs after the loan is sanctioned. 11. Other Inputs: a. State / U.T. Governments have been requested to provide necessary infrastructure support like provision of Industrial sites, sheds, shops, water on preferential basis to these entrepreneurs. Provision of sites and sheds at concessional rate to service ventures in urban area will be essential for their success. Many State/U.T Governments are providing various tax

concessions and incentives under their industrial Policy. Such concessions should also be extended to the beneficiaries under the scheme. b. As load requirement will be small, State/U.T. governments have also been requested to give priority to the person getting the loan sanctioned under the PMRY for electric connection and no deposit should be asked for and small infrastructure e.g. erecting a few poles and extension of wire line should be done expeditiously. c. Implementation of the Scheme of PMRY

Yearwise Target and Achievements

Applications Sanctioned Sl Year No Target

Disbursed

Nos. of Empl. Benef.

Recd. Spon. Nos. Amount Nos. Amount Trained

Gen

1 1993 - 94 2 1994 - 95 3 1995 - 96 4 1996 - 97 5 1997 - 98 6 1998 - 99 7 1999 - 00

200 300 550 550 550 550 550

574

199

139 106.29 135 98.92

152

313 567 687 735 751 538 261

1339 428 1622 592 1537 635 1733 588 1699 583 2912 609

307 211.47 288 191.53 316 513 356.88 477 296.77 586 553 406.12 497 327.37 589 524 364.63 464 289.95 415 463 341.84 396 247.1 494

477 315.47 290 163.37 551

8 2000 - 01 9 2001 - 02 10 2002 - 03 11 2003 - 04 12 2004 - 05 Total

600

3249 640

417 194.65 179 121.11 549

213 1267 18

2000 3591 1920 1466 977.305 1195 845.694 1714 300 * 1350 * 1400 8900 21612 6528 5016 3357.16 3930 2588.3 5526 3356 334 157 82.5 9 6.49 160

5350

PRIME MINISTERS ROZGAR YOJANA (PMRY)

Monday, February 28, 2011 PRIME MINISTERS ROZGAR YOJANA (PMRY) GENERAL FEATURES Introduction Prime Minister's Rozgar Yojana was launched on 2nd October 1993 to assist educated unemployed youth to set up self-employment ventures. The scheme targeted for setting up of nearly 7 lakh enterprises and consequent employment generation to more than one million educated unemployed youth in the last four years of the 8th Five Year Plan. Initially, the scheme was implemented only in the urban areas of the country. Since 199495, it is in operation in both urban as well as rural areas. The scheme continued in the 9th Five Year Plan with the plan target of 11.00 lakh beneficiaries with annual target of 2.20 lakh beneficiaries. The PMRY is continuing in the 10th Five Year Plan also with the plan target of 11.00 lakh beneficiaries. Common Minimum Programme (CMP) of the UPA Government envisages creation of additional employment opportunities in the rural non-farm sector. Accordingly, the target

for the year 2004-05 & 2005-06 under the Yojana has been enhanced from 2.20 lakh beneficiaries to 2.50 lakh beneficiaries per annum. Objective The PMRY aimed to provide employment to more than a million persons by setting up of 7 lakhs micro enterprises by the educated unemployed youth during the last four years of VIII Five Year Plan i.e. 1993-94 to 1996-97. The Scheme has been continuing in the X Five Year Plan. It relates to the setting up of the self employment ventures in all economically viable projects (except direct agricultural operations). The Scheme also seeks to associate reputed non-governmental organisations in implementation of PMRY Scheme especially in the selection, training of entrepreneurs and preparation of project profiles. Target Group/Eligibility 1. Age: i) 18 to 35 years for all educated unemployed. ii) 18 to 40 for all educated unemployed in North-East States, Himachal Pradesh, Uttaranchal and J&K. iii) 18 to 45 years for Scheduled Castes/Scheduled Tribes, Ex-servicemen, Physically Disabled and Women.

2. Educational Qualification: VIII pass. Preference will be given to those who have been trained for any trade in Government recognised/approved institutions for 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.40,000/- per annum. 4. Residence: Permanent resident of the area for atleast 3 years. (Relaxed for married men in Meghalaya and for married women in rest of the country. For married men in Meghalaya and for married women in rest of the country, the residency criteria applies to the spouse or in-laws. 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

lakh 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 lakh are covered. Assistance shall be limited to individual admissibility. Self Help Groups can be considered for assistance under the Scheme provided: Educated Unemployed Youth satisfy the eligibility criteria laid down under the Scheme volunteer to form SHG to set up self-employed ventures (Common Economic Activity). A Self Help Group may consist of 5-20 educated unemployed youth. No upper ceiling on loan. Loan may be provided as per individual eligibility taking into account requirement of the project. SHG may under take common economic activity for which loan is sanctioned without resorting to onward lending to its members. Subsidy may be provided to the SHG as per the eligibility of individual members taking into account relaxation provided in North Eastern States, Uttaranchal, Himachal Pradesh and Jammu & Kashmir. Required margin money contribution (i.e. subsidy and margin to be equal to 20 per

cent of the project cost) should be brought in by the SHG collectively. The exemption limit for obtention of collateral security will be Rs.5.00 lakh per borrowal account for projects under Industry Sector. Exemption from collateral will be limited to an amount of Rs.1.00 lakh per member of SHG for projects under Service & Business Sectors. Banks may consider enhancement in limit of exemption of collateral in deserving cases. Implementing agencies may decide necessity of predisbursal training for all the members/majority of the members of the group. 8. Subsidy & Margin Money: i) 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. For North Eastern States, Himachal Pradesh, Uttaranchal and J&K. ii) Subsidy @ of 15% of the project cost subject to a ceiling of Rs.15,000/- per entrepreneur for north-eastern States, Himachal Pradesh,Uttaranchal and Jammu & Kashmir. Margin money contribution from the entrepreneur may vary from 5% to 12.5% of the project cost so as to make the total of the subsidy and the margin money equal to

20% of the project cost. 9. Collateral: No collateral for units in industry sector with project cost upto Rs.2.00 lakh (the loan ceiling under the PMRY). For partnership projects under Industry Sector, the exemption limit for obtention of collateral security will be Rs.5.00 lakh per borrowal account. For units in service and business sector no collateral for project upto Rs.1.00 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. 10. Rate of interest & repayment: Normal rate of interest shall be charged. Repayment schedule may range between 3 to 7 years after an initial moratorium as may be prescribed. 11. 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. 12. Training: Each entrepreneur whose loan is sanctioned is provided training as per details given below: i) For industry sector: Duration: 15-20 working days.

Stipend: Rs.300/-. Training expenditure: Rs.700/-. Per beneficiary ii) For service & business sector: Duration: 7-10 working days. Stipend: Rs.150/- Per beneficiary Training expenditure: Rs.350/-. 13. Implementing Agency: The District Industry Centres and Directorate of Industries are mainly responsible for implementation of the Scheme along with the banks. 14. Implementation : The district being well established geographical unit for many programmes the coordinated implementation of the programme is undertaken at the district level. The educated unemployed youth are expected to apply to the District Industries Centre/Directorate of Industries/O/o the Dy. Commissioner of their districts. Preliminary screening is done by a District Level Task Force Committee/Block Level Task Force Committee/Mandal Level Task Force Committee. At district level, Task Force comprises of a Chairman who is a senior officer of the

implementing agency preferably head of the agency e.g. General Manager of District Industries Centre, Director, in case of SISI, Addl. Director of Industries in case of Directorate of Industries, or Dy. Commissioner of the District. Other members of the Task Force are representatives of 1. Lead bank. 2. Two leading Banks. 3. District Employment Officer. 4. One member each from DIC/SISI (Other than the implementing agency). 5. One officer as a member secretary to be nominated by the chairman of the Task Force. 6. Chairman may co-opt one or more members from reputed non-governmental organisations. To ensure that the welfare of the women is taken care of, State and UTs have been instructed to invite one woman associated with the welfare of women in the meeting of the District Task Force Committee. Besides, the lead bank and the leading banks, other implementing banks should be invited to attend the District Task Force Committee meetings on rotational basis. Implementation of the scheme involves identification of beneficiary, Selection of specific avocations, identification of the support system required by the beneficiary,- escort service and close liaison with the banks and other local agencies concerned with industry, trade and service sectors. The Task Force is responsible for (i) motivating and selecting the entrepreneurs, (ii) identifying and preparing schemes in industry, service and business sectors, (iii) determining the avocations/ activities (iv) recommending loan (v) getting speedy clearance, as

necessary from the authorities concerned. 15. Monitoring : The Scheme is being monitored at district level by District PMRY Committee, at State / UT level by State/UT PMRY Committee and at Central level by High Powered Committee under the Chairmanship of Secy. (SSI & ARI). 16. Involvement of Non-Governmental Organisations : State/UT Governments may involve reputed Non-Governmental Organisations, Chambers of Commerce and Industry, Trade and Industry Associations etc., right from the identification, motivation and selection of beneficiaries by nominating them in the Task Force, preparation of project profiles. They can also help the borrowers in proper management of the assets, marketing of the products, repayment of loan installments etc. Training of beneficiaries is another area where they can play a very useful role. State/UT Governments should work out the methodologies to associate the reputed NGOs in a manner, which will bring the scheme to the doorstep of the potential beneficiaries. Industry Associations should also be requested to urge their members to adopt at least one unit and act as mentor.

OPERATIONAL GUIDELINES Immediately on receipt of targets from the Central Government, State/UT Governments would convey district wise targets to each district. During the year 1993-94, it was proposed to cover 40,000 beneficiaries under PMRY in urban areas only. Since 1994-95 the scheme has been continuing with annual plan target of 2.20 lakhs persons. The target for 20054-05 has been enhanced to 2.50 lakh. 1. Basic Target are distributed by giving 50% weightage to population and 50% weightage to the educated unemployed youth registered in the Employment Exchanges of the State/UT. Additional targets are also allocated to States/Uts depending upon the (a) past performance of the State/UT, (b) special need of the State/UT, (c) Assurance to address to loan recovery, (c) other issue like furnishing of utilisation certificates etc.

2. The Task Force would invite applications in Prescribed Form from eligible persons through advertisements in local newspapers. Bank branches have also been authorised to receive applications directly under the scheme. Publicity would also be given by display on Notice Boards in the Banks and BDO's offices. (Prescribed application form is an indicative one and can be suitably modified if need be, in the District Level Bankers Committee).

3. The applicant is required to submit application form duly filled along with an Affidavit on plain paper. 4. These applications will be approved by the District Task Force Committee and would be recommended to the concerned bank branches. The names of the beneficiaries approved by the Task Force would be displayed on the Notice Board in the office of the Chairman of the Task Force immediately after the meeting. 5. All the cases received by the Branch Managers after recommendation by the Task Force Committee would be disposed of expeditiously. 6. The successful applicants are required to submit the Affidavit on the relevant no judicial stamp paper (Value being determined as may be applicable to the concerned state). The affidavit should be duly attested by a Notary and not by the Oath Commissioner. 7. Training Institutions should be identified and modules for training should be kept ready by the time the loan is sanctioned by banks. 8. As soon as the cases are sanctioned intimation will be sent to DICs etc. (i.e. implementing agency) by the banks so that training activity can start. 9. In order to ensure that the desired results are achieved all activities should be completed

in a time bound manner and difficulties experienced should be sorted out in the District PMRY Committee. 10. State/UT Governments may provide necessary infrastructure support like provision of industrial sites, shops, water on preferential basis to these entrepreneurs. Provisions of sites and sheds at concessional rate to service ventures in urban areas will be essential for the success of service ventures. Many State/UT Govts. are providing various tax concessions and incentives under their Industrial policy. Such concessions should also be extended to the beneficiaries under the scheme.