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Prime Ministerís 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 non-governmental 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 self-employment 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.

  1. Age: Between 18 to 40 years (SC/ST - 45 years).

  2. Qualification: Matric (Passed or Failed) or ITI passed or having undergone Govt. sponsored technical course for a minimum duration of 6 months.

  3. 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.

  4. 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.

  5. 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:

  1. 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.

  2. 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.

Implementation of the Scheme of PMRY
Yearwise Target and Achievements
Sl No Year Target Applications Sanctioned Disbursed Nos. of Benef. Trained Empl. Gen
Recd. Spon. Nos. Amount Nos. Amount
1 1993 - 94 200 574 199 139 106.29 135 98.92 152 313
2 1994 - 95 300 1339 428 307 211.47 288 191.53 316 567
3 1995 - 96 550 1622 592 513 356.88 477 296.77 586 687
4 1996 - 97 550 1537 635 553 406.12 497 327.37 589 735
5 1997 - 98 550 1733 588 524 364.63 464 289.95 415 751
6 1998 - 99 550 1699 583 463 341.84 396 247.1 494 538
7 1999 - 00 550 2912 609 477 315.47 290 163.37 551 261
8 2000 - 01 600 3249 640 417 194.65 179 121.11 549 213
9 2001 - 02 2000 3591 1920 1466 977.305 1195 845.694 1714 1267
10 2002 - 03 300 3356 334 157 82.5 9 6.49 160 18
11 2003 - 04 * 1350                
12 2004 - 05 * 1400                
  Total 8900 21612 6528 5016 3357.16 3930 2588.3 5526 5350

Remarks  - * : Under Implementation.