Educated constitute nearly 40% of the unemployed. Incidence of unemployment among the educated labour force is 11.8% against 3.8% for educated and uneducated taken together. Further, the incidence is much higher viz., 26.7% among educated women than 9.8% among educated men. Women constitute 27% of the educated unemployed. The unemployment rates rise with every successive higher level of education. Projections made using alternative techniques, put the estimate of educated unemployed at 6-7 million in 1992. This is out of an estimated educated Labour force of 52 million. Of the new employment opportunities that are being generated in the economy in recent years, about 45 per cent are estimated to be going to the educated. But, though relatively high, the employment growth of the educated still falls short of the growth of labour force by about 7 lakhs in a year. The trend of a higher growth of their employment is likely to continue with the introduction of modern technologies in the economy. There may, in fact, be a shift towards employment of the educated in the activities which hitherto were the preserve of the uneducated. Hence the problem of the educated needs a special focus within the overall strategy for tackling unemployment. Prime Minister's Rozgar Yojana (PMRY) seeks to address itself to this problem.

The PMRY aimed to provide employment to more than a million persons by setting up of 7 lakhs micro enterprises by the educated unemployed youth during the last four years of VIII Five Year Plan i.e. 1993-94 to 1996-97. The Scheme has been continuing in the IX Five Year Plan. It relates to the setting up of the self employment ventures in all economically viable projects (except direct agricultural operations). The Scheme also seeks to associate reputed non-governmental organisations in implementation of PMRY Scheme especially in the selection, training of entrepreneurs and preparation of project profiles.

1. Age :

• 18 to 35 years for all educated unemployed in the country except for North Eastern States
• 18 to 40 years for all educated unemployed in North Eastern States.
• 18 to 45 years for Scheduled Caste/Scheduled Tribes, Ex-servicemen, Physically Handicapped and Women educated unemployed in the country.

1. Educational Qualifications : VIII Passed. Preference will be given to those trained in any trade in Government recognised/approved institutions for at least six months.
2. Family Income : Neither the income of the beneficiary along with spouse nor the income of parents of the beneficiaries should exceed Rs. 24,000/- per annum. Up to Rs.40,000/- per annum in the North Eastern States
3. Defaulter : Should not be a defaulter of any Nationalised Bank/financial institution/Co-operative Bank. Further a person already assisted under other subsidy, linked Government schemes would not be eligible under the Scheme.
4. Residency : Beneficiary should be the permanent resident of the area for at least three years.

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). In case SC/ST/OBC candidates are not available, State/UT Govt. will be competent to consider other categories of candidates under PMRY.

The Scheme covered urban areas only during 1993-94 and whole of the country from 1994-95 onwards. From 1994-95 onwards the erstwhile Self- Employment Scheme for the educated unemployed Youth (SEEUY) has been subsumed in PMRY.

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

6. Project Cost

Project up to Rs.1 lakh are covered under the scheme in case of individual for business sector. Rs.2 lakhs for other activities. Loan to be of composite nature. If two or more eligible persons join together in a partnership, project up to Rs.10 lakhs are covered. Assistance shall be limited up to individual admissibility. After identification of beneficiaries and subject to the project found feasible/ viable by the task force, bank would consider to provide the loan.

7. Subsidy and margin money:-

(i) Subsidy will be limited to 15% of project cost subject to ceiling of Rs.7500/- per entrepreneurs, Margin money contribution from the entrepreneur which may vary from 5% to 16.25% of the project cost so as to make total of the subsidy and margin money equal to 20% of project cost.

(ii) For North Eastern States |: Subsidy will be of 15% of the project cost subject to ceiling of Rs.15000/- per entrepreneur. Margin money contribution from entrepreneur may vary from 5% to 12.5% of the project cost so as to make the total of subsidy and the margin money equal to 20% of the project cost.

8. Collateral :- No Collateral for project up to Rs.1.00 lakh. Exemption from collateral in case of partnership project will also be limited to an amount of Rs.1.00 lakh per person participating in the project.

9. Rate of Interest & Repayment Schedule :- 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 by the banks at the time of sanctioning of loan.

10. Training and Entrepreneural Development :- Each entrepreneur whose loan is sanctioned is provided training as per details given below

1. The training expenses Rs.1000/- per beneficiary for Industry sector (including Rs.300/- as stipend and Rs.700/- for training expenditure). The training duration is between 15 to 20 working days.
2. The training expenses Rs.500 per beneficiary for service and business sector (including Rs.150/- as stipend and Rs.350/- for training expenditure). The training duration is between 7 to 10 working days.

State/UT Governments should involve reputed Non-Governmental Organisations, Chambers of Commerce and Industry, Trade and Industry Associations etc. in selecting and referring the cases to Task Force, in training of entrepreneurs etc. The training programme should take care of the special need of the educated unemployed. The training modules should be prepared by the district/state agency, keeping in view the demand for different types of activities at the local level. It will be basically towards entrepreneurship development.

The syllabus should also include:-

1. Elements of book keeping.

2. Simple knowledge of marketing.

3. Acquaintance with product costing.

4. Familiarisation with project financing by banks.

5. Maximum emphasis on learning by doing.

State/UT Govt. should identify the training institutions and draw up the module for training. Training is an integral component of the scheme.

The district being well established geographical unit for many programmes the co-ordinated 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.

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 instalments 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. Immediately on receipt of targets from the Central Govt., State/UT Governments would convey district wise targets to each district. During the year 1993-94, it was proposed to cover 40,000 beneficiaries under PMRY in urban areas only. Since 1994-95 the scheme has been continuing with annual plan target of 2.20 lakhs persons.

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.

District Collector/Dy. Commissioner - Chairman

CEO, DRDA - Member

District Employment Officer - Member

Lead Bank Manager - Member

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.

• 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 co-ordination and co-operation.
• 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.

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.

• 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

13. 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.

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:

Verified that the above contents are true and correct to the best of my knowledge and belief and nothing has been concealed therein.

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