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Prime Minister Rozgar Yojana

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The scheme was launched on 2 October 1993 and initially was in operation in urban areas. From 1 April 1994 onwards the scheme is being implemented throughout the country. The objective of the scheme is to provide self-employment opportunities to educated unemployed youth in the age group of 18 to 35 years.

In North-Eastern states the eligible age group is from 18-40. There is a 10 year relaxation for SC/ST, ex-servicemen/ physically handicapped and women, in the upper age limit.

To be eligible for assistance under the scheme the family income of the beneficiaries shall not exceed Rs. 40000 per annum and income of parents of the beneficiaries also shall not exceed Rs. 40000.

The banks have been allowed to make parents/ Head of the family of unmarried girl as co-borrower, with effect from 21 November 2002. The borrower should be the resident of the area for more than three years. He should have passed at least eighth standard. It has also been provided that the margin money and subsidy amount would be 20 percent of the project cost.

Ceiling on subsidy amount will be Rs. 7500 in States/UTs other than in the North Eastern Region. In the seven states in North East the ceiling on subsidy amount payable will be Rs. 15000.

This has been extended to Sikkim, Himachal Pradesh, Jammu and Kashmir and Uttaranchal. Hence the margin to be brought in by the borrower will vary from 5 percent o 16.25 percent of the project cost.

All economically viable activities including agricultural and allied activities but excluding direct agricultural operation like raising of crops/purchase of manure etc. are now being covered under the scheme. Projects up to Rs. One lakh in business sector and up to Rs. Two lakh in other sectors will be eligible for finance by banks.

In case of partnership firm projects up to Rs. 10 lakh can be undertaken and loan amount will be to the extent of individual admissibility. Residency criteria for married men in Meghalaya has been relaxed in line with the married women in the rest of the country with effect from 11 August 2003.

SHGs are considered eligible for financing under the Prime Minister’s Rozgar Yojana (PMRY), effective 8 December 2003 (terms modified on 30 July 2004) provided all members individually satisfy the eligibility criteria laid down and total membership dies not exceed twenty.

There is also a ceiling on the loan amount. During 2004-05 banks sanctioned loans amounting to Rs. 1479 crore in 2.36 lakh accounts, while disbursements amounted to Rs. 851 crore in 1.42 lakh accounts.

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