PMRY-REGP merger seen to double jobs

After proposing the merger of two centrally sponsored schemes — Prime Minister’s Rozgaar Yojana and Rural Employment Generation Programme , the Ministry of Micro Small and Medium Enterprises has set a target of doubling employment opportunities...

After proposing the merger of two centrally sponsored schemes — Prime Minister’s Rozgaar Yojana (PMRY) and Rural Employment Generation Programme (REGP), the Ministry of Micro Small and Medium Enterprises (MSME) has set a target of doubling employment opportunities in the Eleventh Five-Year Plan under the merged scheme with a proposed financial outlay of Rs 15, 083.98 crore, reveal official sources.

The proposed scheme, named Prime Minister’s Employment Generation Programme (PMEGP), will set up 17 lakh entrepreneurial projects generating 1 crore job opportunities during the eleventh plan against the combined PMRY and REGP target of 43.57 lakh jobs under the ongoing tenth plan. Out of these, 70 lakh jobs are proposed for SC, ST, OBC, minorities and the North-East, states the concept paper formulated by the Ministry.

The revised eligibility criteria include beneficiaries above 18 years in rural, semi urban and urban areas. However, applicants from urban areas require an additional educational qualification — at least eighth class pass.

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The scheme provides 10 per cent subsidy to individual entrepreneurs for projects costing between Rs 5 lakh Rs and 25 lakh. Additionally, under the ministry’s Credit Guarantee Fund Trust for Small Industries (CGTSI) scheme, collateral free loans of up to Rs 5 lakh will be provided. The scheme has provision for enhanced subsidies for the marginalised sections and the North-Eastern region. It proposes to cover khadi-based industries. Existing successful PMRY beneficiaries, too, can apply for loans under PMEGP to expand their units.

The Government hopes that by combining these two schemes, loan recovery will improve over a period of time. Currently, PMRY has a poor recovery rate of 35 per cent whereas REGP has a recovery rate as high as 88 per cent.