Prime Minister’s Rozgar Yojana for providing Self-Employment to Educated Unemployed Youth was announced by the Prime Minister on 15th August, 1993 to provide self-employment opportunities to one million educated unemployed youth in the country. The scheme has been formally launched on 2nd October, 1993.
Objectives:
The PMRY has been designed to provide employment to more than a million persons 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.
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The Scheme also seeks to associate reputed non-governmental organisations in implementation of PMRY Scheme especially in the selection, training and entrepreneurs and preparation of project profiles.
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.
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Eligibility:
Any unemployed uneducated 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.
(i) Age:
Between 18 to 35 yrs.
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(ii) Qualification:
Matric (Passed or Failed) or ITI passed or having undergone Government sponsored technical course for a minimum duration of 6 months.
(iii) 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.
(iv) Family Income:
The definition of family has since been clarified to, mean the beneficiary and his/her spouse. The income of the parents of the beneficiary should also not exceeds Rs. 24,000/- per annum separately. Family income would include income from all sources whether wage, salary, pension, agriculture, business, rent, etc.
(v) Defaulter:
Should not be a defaulter to any nationalised bank/ financial institution/cooperative bank.
Reservation:
Preference should be given to weaker sections including women. The scheme envisages 22.5% reservation for SC/ST and 27% for Other Backward Classes (OBCs).
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 lakh or less.
Margin Money, Bank Loans and Rates of Interest:
Entrepreneur is required to contribute 5 per cent of project cost as margin money in cash. Balance 95 per cent 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.
Collateral 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.
Subsidy:
Government of India would provide subsidy at the rate of 15 per cent 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 per cent of his share in the project cost, limited to Rs. 7,500 (per partner).
Repayment Schedule:
Repayment schedule would range from 3 to 7 years after an initial moratorium of 6 to 18 months as decided by the Bank.
Training:
The training expenses now stand revised to Rs. 1,000/- (Rs. 700/- as training cost = Rs. 300/- as stipend).
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 areas 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 persons getting the loan sanctioned under the PMRY for electric connection and no deposit should be asked for the small infrastructure e.g., erecting a few poles and extension of wire lines should be done expeditiously.