Right to Information Act, 2005
Prime Minister's Rozgar
Yojana (PMRY)
Rural Employment Generation
Programme (REGP)
Scheme of Fund for
Regeneration of Traditional
Industries (SFURTI)
New Initiatives
Annual Reports
10th Plan Outlay & Actual Expenditure
Outcome Budget 2005-06
Tender Notice
Vacancy Notice
Lok Sabha Questions
Rajya Sabha Questions


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 youth in setting up self-employment ventures in industry, service & business sectors. The scheme intends to cover urban and rural areas. 


Parameters for eligibility  




(i)   18 to 35 years for all educated unemployed.
(ii) 18 to 40 for all educated unemployed in North-East States,  Himachal Pradesh, Uttarakhand and J&K.
(iii) 18 to 45 years for Scheduled Castes /Scheduled Tribes, Ex- servicemen, Physically Disabled and Women. 


Educational Qualification

VIII pass. Preference will be given to those who have been trained for any trade in Government recognised/ approved institutions for duration of at least six months. 


Family income

Neither the income of the beneficiary along with the spouse nor the income of parents of the beneficiaries shall exceed Rs.1,00,000/- p.a. 



Permanent resident of the area for atleast 3 years.   (Relaxed for married men in Meghalaya and for married women in rest of the country.  For married men in Meghalaya and for married women in rest of the country, the residency criteria applies to the spouse or in-laws. 



Should not be a defaulter to any nationalized bank/ financial institution/co-operative bank. Further, a person already assisted under other subsidy linked Government schemes would not be eligible under this scheme. 


Activities covered

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


Project Cost

Rs.2.00 lakh for business/ service sector and Rs.5.00 lakhs for industry sector, loan to be of composite nature.  If  two or more eligible persons joins together in a partnership, project upto Rs.10.00 lakhs are covered.  Assistance shall be limited to individual admissibility. 

Self Help Groups can be considered for assistance under the Scheme provided:

  • 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 North Eastern States, Uttarakhand, Himachal Pradesh and Jammu & Kashmir.
  • Required margin money contribution (i.e. subsidy and margin to be equal to 20 per cent of the project cost) should be brought in by the SHG collectively.
  • The exemption limit for obtention of collateral security will be Rs.5.00 lakh per borrowal account for projects under Industry Sector.  Exemption from collateral will be limited to an amount of Rs.2.00 lakh per member of SHG for projects under Service & Business Sectors. Banks may consider enhancement in limit of exemption of collateral in deserving cases.
  • Implementing agencies may decide necessity of predisbursal training for all the members/majority of the members of the group.






Subsidy & Margin money






i) 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.

For North Eastern States, Himachal Pradesh, Uttrakhand and J&K.

ii) Subsidy @ of 15% of the project cost subject to a ceiling of Rs.15,000/- per entrepreneur for north-eastern States, Himachal Pradesh,Uttaranchal 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. 








No collateral for units in industry sector with project cost upto Rs.5.00 lakh (the loan ceiling under the PMRY).  For partnership projects 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 upto 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.. 


Rate of interest

& Repayment


Normal  rate  of  interest  shall  be charged.  Repayment schedule may range from 3 to 7 years after an initial moratorium as may be prescribed.                                                               



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 Class (OBCs) as is currently envisaged in the PMRY. In case SC/ST/OBC candidates are not available, States/UTs Govt. will be competent to consider other categories of candidates under PMRY.  





Each entrepreneur whose loan is sanctioned is provided training as per details given below:

i) For industry sector:

      Duration:15-20 working days.

      Stipend: Rs.750/-

      Training expenditure: Rs.1750/-

ii) For service and business sector:      

     Duration:7-10 working days.

     Stipend: Rs.375/-

      Training expenditure: Rs.875/-


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.


Recovery of loans

(i) Panchayati Raj Institutions like Gram Panchayats be empowered to identify and sponsor candidates located in the same area to the District Task Force Committee so as to ensure disbursement of loan to genuine persons and better recovery of loan. 

(ii) To reduce the level of sickness/closure of PMRY units, the District Level Selection Committee/Task Force Committee be made accountable for the proper scrutiny of applications and selection of viable projects.    


Implementing Agency

The District Industry Centres and Directorate of Industries are mainly responsible for implementation of the Scheme along with the banks.  


Immediately on receipt of targets from the Central Government, 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. The target for 20054-05 has been enhanced to 2.50 lakh.

1.      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.

2.      The Task Force would invite applications in Prescribed Form 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).

3.      The applicant is required to submit application form duly filled along with an ‘Affidavit’ on plain paper.

4.      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.

5.      All the cases received by the Branch Managers after recommendation by the Task Force Committee would be disposed of expeditiously.

6.      The successful applicants are required to submit the ‘Affidavit’ on the relevant no 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.

7.      Training Institutions should be identified and modules for training should be kept ready by the time the loan is sanctioned by banks.

8.      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.

9.      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.

10.  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.

11.  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
4. Lead Bank Manager                                         - Member
5. 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 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.


Chief Secretary - Chairman


1. Secretary, Department of Industries

2. Secretary, Department of Finance

3. Secretary, Department of Planning

4. Secretary, Department of Rural Development

5. Secretary, Department 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.


1.      Secretary, Ministry of SSI & ARI,                                                         Chairman
Govt. of India, Udyog Bhavan, New Delhi.

2.      Addl. Secretary & Development Commissioner (Small Scale Industries)   Member
Ministry of SSI, Nirman Bhavan, New Delhi.

3.      Addl. Secretary & Financial Adviser, Ministry of SSI&ARI,                     Member
Udyog Bhawan,New Delhi

4.      Adviser, Village & Small Industries, Planning Commission,                        Member
Govt. of India, Yojana Bhawan, New Delhi.

5.      Joint Secretary (SGSY), Deptt. of Rural Development,                             Member
Ministry of Rural Development, Krishi Bhavan, New Delhi.

6.      Joint Secretary (PB), Banking Division, Ministry of Finance,                      Member
Jeevan Deep Bldg, Parliament Street, New Delhi.

7.      Joint Secretary, (DGET), Ministry of Labour,                                            Member
Shram Shakti Bhavan, New Delhi.

8.      Joint Secretary (SCD), Ministry of Social Justice and Empowerment,         Member
Shastri Bhavan, New Delhi.

9.      Joint Secretary (UAPA), Ministry of Urban Development,                          Member
and Poverty Alleviation, Nirman Bhavan, New Delhi.

10.  Executive Director, Reserve Bank of India,                                                Member
Rural Planning & Credit Department, New Central Office Bldg.,
13th Floor Post Box No. 10014, Mumbai-400 023.

11.  Chairman, State Bank of India,                                                                  Member
Madam Cama Road, Post Box No. 12, Mumbai –400001.

12.  Chairman & Managing Director, Canara Bank,                                          Member
112, J.C. Road, Banglore-2

13.  Chairman & Managing Director, Central Bank of India,                              Member
Chandermukhi Nariman Point, Post Box No.7009, Mumbai

14.  Chairman & Managing Director, United Bank of India,                               Member
16, Old Court House Street, Kolkata-700001

15.  Chairman & Managing Director, Federal Bank,                                          Member
Head Office, Federal Tower, Aluva, 683101 (Kerala)

16.  Secretary, Small Scale Industries, Govt. of Maharashtra,                                                                                              Member
New Administrative Building, Mumbai-400032.

17.  Secretary, Deptt. of Cottage & Small Scale Industries,                                 Member
Govt. of West Bengal, Writers Building, Kolkata-700001.

18.  Secretary, Small Scale Industries, Govt. of Uttar Pradesh,                            Member
Shachivalaya, Annexe Bhawan, Lucknow.

19.  Secretary, Small Scale Industries, Govt. of Assam,                                       Member
Assam Sachivalaya, Janta Bhawan, Dispur, Guwahati-781006

20.  Secretary Industries (SSI),Govt. of Tamil Nadu,                                           Member
Chepauk, Chennai.

21.  Secretary Industries (SSI), Commerce & Industries Deptt.,                           Member
Govt. of Karnataka, Secretariat, Banglore –560001.

22.  Director (PMRY), Ministry of Agro and Rural Industries,                              Member Secretary
Govt. of India, Udyog Bhavan, New Delhi.


The main functions of High Powered Committee are as follows :

1.      To ensure effective implementation of the scheme.

2.      To review the progress of the scheme in physical, financial and quantitative terms.

3.      To consider concurrent evaluation reports.

4.      To serve as a standing forum for interaction among the State Govts. and different departments, banks and agencies involved in the implementation of the scheme.

5.      To consider proposal for providing entrepreneurial development assistance and strengthening institutions and infrastructure relating to entrepreneurship development.

6.      Revision or modifications of operational guidelines.

Chairman will have powers to co-opt other Members/Invitees on the Committee as and when deemed necessary.

The Committee will meet periodically to carry out its functions. 

Copyright © 2006, Ministry of Agro and Rural Industries, Government of India