Prime Minister Rozgar Yojana of India

Topics: Loan, Debt, Bank Pages: 9 (3018 words) Published: March 25, 2007
1. Unemployment is considered as a bane of India's development particularly the educated unemployed youth who become unproductive and frustrated are to be paid special attention. The small-scale sector includes village and cottage sectors are found out to be the best means to solve the growing unemployment problem. Self-employment is the only solution to the unemployment. Policy makers and economists studied and drew conclusion that setting up a small scale unit with a moderate investment has got the potential to provide employment to about 4 to 5 people directly and indirectly. The satisfaction of self-employment and the contentment of contributing to the National Income and proving livelihood to few unemployeds can have positive multiplier effect. Adding to it the SSI sector has got the inherent advantage of utilising the local resources, technologies for productive purposes and at the same time could satisfy the needs of the local people and exploit the local market at micro level. 2. Taking all these into consideration the Central Government initially launched Self Employment Scheme for Educated Unemployed Youth (SEEUY) popularly known as. Gramodaya Scheme introduced by Government of India in 1985 wherein financial assistance of not more than Rs.35000 was provided for industries, Rs.25000 for service units and Rs.15000 for business ventures by way of composite loans to eligible educated unemployed youth to start their small enterprises. District Industries Centre (DICs) operated this central scheme at the district level, where 25% of the sanctioned loan amount was granted as subsidy by Central Government to be deposited as fixed deposit in the name of the candidate. This scheme could not be continued successfully. It was estimated that more than 70% of the units became sick and subsequently closed down. 3. Hon'ble Prime Minister of India, announced a new scheme the Prime Ministers' Rozgar Yojana (PMRY) on 15th August, 1993 4. The scheme was launched on the auspicious day of 2nd October, 1993, the birth Anniversary of Mahatma Gandhi all over the country The main objective of the PMRY scheme was to provide easy subsidized financial assistance to educated unemployed youth for starting their own enterprises in manufacturing, business & service and trade sectors. Initially the scheme was aimed at providing self-employment to one million educated unemployed youth in the country by setting up 7 lakh micro enterprises through inducting service and business ventures over a period of 2 ½ years. The scheme was a stupendous success and caught the imagination of the youth. Overwhelmed with the response and ever-increasing need, the Government has decided to make it a permanent scheme and framed modalities & guidelines for its successful implementation and to fulfil the purpose for which it is designed. 5.Salient features of PMRY Scheme:

•This is a centrally sponsored scheme
•The Development Commissioner (Small-Scale Industries) under Ministry of Small Scale, Rural and Agro, Industries Government of India is the apex body for this scheme. •The respective Commissioner/Director of Industries implements the scheme at the State level except the four metropolitan cities, with an overall monitoring by the concerned Secretaries of Industries. •The implementation agencies at the grass root level are District Industries Centre (DIC) who would be instrumental for the grounding of the units. •Small Industries Service Institute(SISI) located in the four Metropolitan cities of Delhi, Kolkata, Mumbai and Chennai are the implementing agencies of this scheme. •The DCSSI has setup a special PMRY division in the headquarters under the able guidance of an IAS officer. DCSSI formulates the rules, regulations and guideline instructions and provides clarifications on all the matters pertaining to PMRY scheme. It has also devised a complete feedback information by the means of getting monthly, quarterly and...
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