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 2^nd 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).

THE SCHEME :-

The scheme has been designed to provide employment to educated unemployed youth through setting up of micro enterprises in industry, service and business.

The scheme is for all educated unemployed persons of age 18-35 years, with a 10 years age relaxation for SC/STs, ex-servicemen, physically handicapped persons and women. The scheme envisages 22.5% reservation for SC/ST and 27 % for Other Backward Class (OBCs).

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

Projects upto Rs.1.00 lakh for business activities and Rs.2 lakh for other activities are financed under the scheme through loan and subsidy. If two or more eligible persons apply together as a partnership, projects upto Rs.10.00 lakhs are eligible for finance. Assistance however is limited to individual admissibility. Subsidy is limited to 15% of the total project cost subject to a ceiling of Rs.7500/- per entrepreneur.

Normal bank rate of interest is charged for loan under the scheme. Repayment schedule may range between 3 to 7 years after an initial moratorium, as may be prescribed.

No collateral is required for projects upto Rs.1 lakh.

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.

 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.

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).

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 :-

Scheme envisages compulsory training for entrepreneurs after the loan is sanctioned.

 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 Year-wise 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.

TARGET PUBLIC:-

Any unemployed educated person fulfilling the following conditions is eligible for getting the benefit under the scheme :-

1. Age between 18 to 35 years. However in case of SC/ST person, ex-servicemen, Physically handicapped persons and women, the age limit is 18 to 45 years.
2. Minimum VIII passed.
3. Neither the income of the applicant along with the spouse nor the income of parents of the applicant shall exceed Rs. 24,000/- per anum.
4. Permanent resident of the Delhi for the last three years.
5. Should not be a defaulter of any Nationalized bank/financial institution/cooperative bank.

DOCUMENTS REQUIRED :

The following documents must accompany the Application form :

1. Educational Qualification Certificate (Certificate of VIII pass or higher qualification).
2. Date of Birth Certificate
3. Ration Card (Attested Copy)
4. Affidavit in prescribed proforma attested by the Oath Commissioner. Click here to see proforma of affidavit
5. Two self-attested passport size photographs.