Prime Minister Rozgar Yojana (PMRY)
General Features
REVISED
GUIDELINES
SALIENT FEATURES
The Prime Minister's Rozgar Yojana (PMRY) for providing self
employment to educated unemployed youth of economically weaker sections has
been in operation since October 2, 1993. The scheme aims at assisting the
eligible yourth in setting up self employment ventures in industry, service
& business sectors. The scheme intends to cover Urban and rural areas.
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Sl.
No. |
Parameters |
Eligibility criterion |
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1. |
Age |
(i) * 18
to 40 years for all educated unemployed. (ii)
* 18 to 40 years for all educated unemployed in
North Eastern
States, H.P., Uttarakhand & J&K (iii) * 18 to
45 years for Scheduled Caste/Scheduled Tribes,
Ex-servicemen, Physically Handicapped and Women.
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2. |
Educational
Qualifications: |
VIII
Passed. Preference will be given to those who have been
trained for any trade in Government recognized /approved
institutions for at least six months. |
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3. |
Family
Income: |
Neither
the income of the beneficiary along with spouse, the income of parents
nor the in-laws (in caseof married men in Meghalaya and married women
in the rest of country staying with in laws) of the beneficiaries
should exceed Rs. 1,00,000/- per annum.
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4. |
Residence
: |
Permanent resident of the area for at least three years.
(Relaxed for married men
in Meghalaya and married women in the rest of country, the residency
criteria applies to the spouse or
in laws). |
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5. |
Defaulter:
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Should not
be a defaulter of any Nationalized Bank/financial
institution/Cooperative Bank. Further a person already assisted under
other subsidy, linked Government schemes would not be eligible under
the Scheme. |
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6. |
Activities covered
: |
All
economically viable activities including agriculture and allied activities are
covered but excluding direct agricultural operations like raising
crops, purchase of manure etc. |
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7. |
Project Cost |
Rs.2 lakhs
for business/service sector and Rs. 5.00 lakhs for indutry sector,
loan to be of composite nature. If two or more eligible persons joins
together in a partnership, project up to Rs.10 lakhs are covered.
Assistance shall be limited
to individual admissibility.
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Self Help Groups can
be considered for assistance under the Scheme provided: |
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·
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 project cost. ·
Loan may be provided as per individual eligibility taking into account
requirement of the project. ·
SHG may undertake common economic activity for which loan is sanctioned
without resorting to onward lending to its members. ·
The subsidy ceiling for Self Help Group is Rs. 15,000/- per beneficiary
subject to a maximum of Rs. 1.25 lakh per Self Help Group. ·
Subsidy may be provided to the SHG as per the eligibility of individual
members taking into account relaxation provided in ·
Required margin money contribution (i.e. subsidy and margin to be equal
to 20 percent of the project cost) should be brought in by the SHG
collectively. ·
The exemption limit for obtaining of collateral security will be Rs. 5
lakh per member of SHG for projects in the industry sector and Rs. 2
lakh per member of SHG for projects under Service/Business Sectors.
Banks may consider enhancement in the limit of exemption of collateral
in deserving cases. ·
Implementing agencies may decide necessity of pre-disbursal training
for all the members/majority of the members of the group. |
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8. |
Subsidy &
margin money |
Subsidy will be limited to 15% of the project cost subject
to ceiling of Rs.
12,500/- 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. |
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For
North Eastern States, Himachal Pradesh, Uttarakhand & J&K |
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Subsidy @ of 15% of the project cost subject to a ceiling of
Rs. 15,000/- per entrepreneur for north-eastern States, Himachal
Pradesh, Uttarakhand 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. |
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9. |
Collateral
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No Collateral for
units in Industry sector with project cost up to Rs.5.00 lakh. ( the
loan ceiling under the PMRY) For
partnership project under Industry sector, the exemption limit
for obtention of collateral security will be Rs.5.00 lakh per borrower
account. For units in service and business sector no collateral for
project up to Rs. 2.00 lakh. Exemption from collateral in case of
partnership project will also be limited to an amount of Rs. 2.00 lakh
per person participating
in the project cost. |
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10. |
Rate of Interest & Repayment Schedule: -
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Normal bank rate of
interest shall be charged. Repayment
schedule may range between 3 to 7 years after an initial
moratorium as may be prescribed. |
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11 |
Reservation |
Preference
should be given to weaker sections including women. Assistance to
SC/ST beneficiaries should be targeted in such a manner that they are
benefited in proportion to their population in the respective
district/State. However, the number of SC/ST beneficiaries should not
be less than 22.5% and
27% for Other Backward Classes (OBCs) as is envisaged in the PMRY. In
case SC/ST/OBC candidates are not available, State/UT Govt. will be
competent to consider other categories of candidates under PMRY. |
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12. |
Training |
Each
entrepreneur whose loan is sanctioned is provided training as per
details given below :- |
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i)
For Industry sector : |
Duration: 15 to
20 working days. Stipend : 750/- Training
Expenditure : Rs. 1750/- |
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ii) For Service & Business sectors: |
Duration: 7 to 10 working days. Stipend : Rs. 375/- Training expenditure : Rs. 850/- |
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13. |
Motivational campaigns |
To improve the success rate of eligible applicants,
States/UTs will be allowed reimbursement of cost of counseling
and guiding the applicants @ Rs. 200/- per applicant, for 125 per cent
of the allocated target of cases |
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14. |
Publicity |
(i)
Seminars to be conducted in each district for creating awareness of
PMRY in the area in the form of pre-selection motivational campaigns.
A resolutions may be adopted by each Gram Panchayat for giving wide
publicity and awareness about PMRY in their respective jurisdictions.
(ii) To
reduce the level of sickness/closure of PMRY units, the District Level
Selection Committee/Task Force Committee be made responsible for the
proper scrutiny of applications and selection of viable projects. |
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15. |
Implementing Agency.
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The
District Industry Centres and Directorate of Industries are mainly
responsible for implementation of the scheme along
with
the Banks. |
Implementaion
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.
Monitoring
The Scheme will be monitored at district level
by District PMRY Committee, at State / UT level by State PMRY Committee and
at Central level byHigh Powered Committee under the Chairmanship of Secy. (SSI
& ARI).
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.
1.
OPERATIONAL GUIDELINES
1.
Immediately on receipt of targets from the
Central Govt., State/UT Governments 94, it was proposed to cover 40,000
beneficiaries under PMRY in urban would convey district wise targets to each
district. During the year 1993-areas only. Since 1994-95 the scheme has been
continuing with annual plan target of 2.20 lakhs persons.
2.
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.
3.
The Task Force would invite applications in
prescribed form given at Annexure-I 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).
4.
The applicant is required to submit
application form duly filled along with an ‘Affidavit’ on plain paper
Annexure-II.
5.
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.
6.
All the cases received by the Branch
Managers after recommendation by the Task Force Committee would be disposed
of expeditiously.
7.
The successful
applicants are required to submit the ‘Affidavit’ on the relevant non
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.
8.
Training Institutions should be identified
and modules for training should be kept ready by the time the loan is
sanctioned by banks.
9.
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.
10.
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.
11.
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.
As load requirement will be small, State/UT
Governments should give priority to the persons getting the loan sanctioned
under the PMRY for electric connection. No deposit should be asked for and
small infrastructure e.g. creating few poles and extensions of wire line
should be done expeditiously.
1. District Collector/Dy. Commissioner -
Chairman
2. CEO, DRDA - Member
3. District Employment Officer - Member
5. Lead Bank Manager - Member
6. Chairman, Task Force Committee -
Member Secy.
Besides
these officers/representatives, Chairman can co-opt any one or more of the
following:
One or more prominent citizens from the fields
of social services, industry/ business, District Welfare Officer, District
Statistical Officer, District Education Officer, Principal of Local
Engineering Colleges/ Polytechnics/ Industrial Training Institutes or
representatives of the Directorate of Technical Education/Vocational
Training/Industrial Training, Representatives of Banks.
FUNCTIONS
·
To keep various agencies informed of the
basic parameters and the requirements of the Scheme and the tasks to be
performed by these agencies.
·
To review progress of training and keeping
over all expenditure within sanctioned limits.
·
To monitor and evaluate the Scheme to
ensure its effectiveness.
·
To secure inter departmental coordination
and cooperation.
·
To monitor and help the banks in recovery
of the loans.
·
To give publicity to the achievements made
and disseminate knowledge and buildup awareness about the Scheme.
·
To send periodical statements to the
State/UT Governments in the prescribed formats.
CONSTITUTION OF STATE/UT PMRY COMMITTEE
Chief Secretary - Chairman
Members
1. Secretary, Deptt. of Industries
2. Secretary, Deptt. of Finance
3. Secretary, Deptt. of Planning
4. Secretary, Deptt. of Rural Development
5. Secretary, Deptt. of Labour
6. Representatives of State/UT level Banking
Institutions including RBI.
7. Commissioner/Director of Industries and
Commerce - Member Secretary.
8. Director, SISI/Incharge, Branch SISI of
States/UTs.
9. Officials concerned with the Welfare of SCs/STs.
Other officials and non-officials may be invited
if their presence is felt necessary in the meetings.
FUNCTIONS
·
To provide leadership and guidance to the
District PMRY committees in the planning, implementation and monitoring of
the Scheme.
·
To secure inter departmental coordination
between various implementing agencies and to ensure development of strong
backward and forward linkages.
·
To review expenditure to ensure that it
remains within the sanctioned limit.
·
To review the physical targets and
achievements.
·
To monitor and evaluate the implementation
of the scheme.
·
To monitor and help the banks in recovery
of the loans.
·
To provide the forum for a meaningful
dialogue at the State/UT level between various implementing agencies.
Secretary (SSI & ARI) - Chairman
Members:
1. Additional Secretary & Development
Commissioner (SSI)
2. Additional Secretary & Financial Adviser,
Ministry of Industry.
3. Adviser (VSI) Planning Commission
4. Joint Secretary, Ministry of Rural
Development.
5. Joint Secretary, Department of Banking
Division, Ministry of Finance.
6. Joint Secretary, Ministry of Labour.
7. Joint Secretary, Ministry of Urban
Development and Poverty Alleviation.
8. Joint Secretary (SCD), Ministry of Welfare.
9. Executive Director, Reserve Bank of India.
10. CMD, State Bank of India
11. CMD, Canara Bank
12. CMD, Central Bank of India
13. CMD, United Bank of India
14. Secretary, Govt. of Maharashtra
15. Secretary, Govt. of West Bengal
16. Secretary, Govt. of Uttar Pradesh
17.
Secretary, Govt. of Andhar Pradesh
18. Secretary, Govt. of Tamilnadu
19. Secretary, Govt. of Karnataka
20. Joint Development Commissioner/Director(PMRY),
O/o DC(SSI) - Member Secretary.
The Chairman of the Committee may also co-opt
other Members/Invitees to participate in the meeting.
FUNCTIONS
·
To ensure effective implementation of the
scheme.
·
To review the progress of the scheme in
physical, financial and quantitative terms.
·
To consider concurrent evaluation reports.
·
To serve as a standing forum for
interaction among the State Governments and different departments, banks and
agencies involved in the implementation of the Scheme.
·
To consider proposal for providing
entrepreneurial development assistance and strengthening institutions and
infrastructure relating to entrepreneurship development.
·
Revision or modifications of operational
guidelines.
The Committee will meet periodically to carry
out its functions.
Affix Photograph
(Passport size)
1. Name of the applicant (in block letters)
2. Sex (Male/Female)
3. Father's name
Occupation
Address
4. Address (Self)
(a) Permanent
(b) Correspondence
(c) Whether residing continuously for the last
three years in the area from where loan is applied Yes/No
5. Age particulars
(a) Date of Birth
(b) Age as on date of application
6. Qualification
(a) Academic
(b) Technical
7. Training received, if any (Give name of
Institute & duration)
8. Whether the applicant is unemployed?
If so, whether registered with Employment
Exchange? (Give Registration No. & Date)
9. Whether the applicant belongs to SC/ST/OBC
10. Whether the applicant belongs to minority
community
11. Type of industry/service/business activity
proposed to be started
(Give project details)
12. Previous experience in the line, if any
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Place of work where the activity as mentioned
in Col. 10 above is proposed to be started (give full details)
14. Present annual income of the family duly
supported by the affidavit.
15. Amount of loan required.
(a) Machinery & equipment
(b) Other fixed assets
(c) Working capital
(d) Total
16. Margin money proposed to be invested
17. (a) Whether taken loan from any
banking/financial institution
of State/Central Govt.
(b) If yes for 16(a) whether all repayments
made.
(c) If No for 16(b) indicate the balance amount.
18. I certify that all information furnished by
me is true; and that I have no borrowing arrangements for my above proposed
industrial/service/business concern with any bank/financial institution.
Signature of the applicant
NOTE:
Application should be submitted complete in all
respects in duplicate along with attested copies of the following documents:
1. Age Certificate
2. Certificate of qualification-academic and
technical.
3. Ration card or any other proof of residency
for 3 years.
4. Experience certificate, if applicable.
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Affidavit matter on plane paper Annexure-II.
Annexure-II
SPECIMEN OF AFFIDAVIT
Specimen of Affidavit to be submitted along with
the application on relevant Non Judicial Stamp Paper duly attested by
Notary. (The value of the non judiciary stamp as per the practice in the
concerned state/UT).
I S/o, D/o, W/o R/o Distt./State do hereby
solemnly affirm and declare as under:
1) that I am unemployed
2) that I am not in a position to muster my own
capital for the project.
3) that I am a permanent resident of since
years.
4) that family income of my family which
includes spouse is Rs.............. per annum and income of my parents is Rs..........
per annum separately from all sources such as salary, wages, agricultural
income, business, rent, interest, pension etc.
5) that I have not defaulted in repayment of
loan from any nationalised bank/ financial institution/Cooperative Bank.
6) that I shall abide by the rules framed under
the scheme of PMRY for Educated Unemployed Youth.
7) that I shall submit the progress report
required by the banks/Govt.
DEPONENT
Verified that the above contents are true and
correct to the best of my knowledge and belief and nothing has been
concealed therein.
DEPONENT
DATED:
Note :- The applicants are required to submit the above mentioned affidavit on the plan paper along with the application form. After the sanction of the loan the affidavit has to be submitted on the relevant non Judicial Stamp paper.
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