Pradhan Mantri Rozgar Yojana

Pradhan Mantri Rozgar Yojana (PMRY) was launched in the year 1993. It is an initiative by the Central Government in order to create employment opportunities for the unemployed youth of the country. This scheme helps in funding businesses in both the manufacturing and service sectors. Retail trading is also part of the agenda of this scheme for funding.

This scheme will not only help encouraging entrepreneurship but will, in turn, create employment opportunities to several unemployed youths in the country. The small scale industries (SSIs) aim at using the technology and local resources for productive purposes and create a demand for their products in the local market.

Features of PMRY Scheme

The features of PMRY Scheme are:

  • Eligibility:
    • The age of the applicant (educated unemployed youth) should be between 18 years to 35 years. For candidates in the northeast region, the age stipulated is 18 years to 40 years. Age stipulated is 18 years to 45 years for SC/ST candidates, ex-servicemen, physically challenged, and women beneficiaries.
    • The applicant should have completed education up to 8th Standard (minimum qualification required) and should have been promoted from the 8th
    • The applicant should have been residing in the present address for a minimum period of 3 years.
    • Should have a clean track record and should not have defaulted payment in any bank/financial institution.
    • The family income, which includes the income of the parents or the spouse should not exceed 40,000 p.a.
    • Candidates who have undergone training in any trade in Government recognised/approved institutions for a minimum period of 6 months will be given preference.
  • Interest: Interest will be charged at a normal rate.
  • Quantum:
    • The project cost for the Business Sector should be within 2 Lakhs
    • The project cost for Trading and Industry Sector should be within 5 Lakhs
    • If the project is undertaken by two or more eligible candidates in a partnership, then, the project cost can go up to 5 Lakhs.
  • Margin: Margin by way of subsidy at 15% of the project cost with a maximum of 7,500 will be available.
  • Repayment: The repayment period ranges from 3 years to 7 years.
  • Security: No collateral security is required for a project cost up to 1 Lakh.
  • Reservation: There will be a reservation for SC/STs and women under this scheme.

Other Details of the Scheme

  • This scheme is sponsored by the Central Government
  • Training required for setting up of the business will be provided for a period of 15 to 20 days
  • The Development Commissioner-Small Scale Industries under the Ministry of Rural, Agro, and Small -Scale Industries is the principal body of the scheme.
  • The quarterly progress of the scheme is monitored by the State Level Committee formed for PMRY.
  • The metropolitan cities are the scheme implementing agencies
  • Activities like small tea gardens, piggery, poultry, and fishing have been included in a bid to increase the area covered under the scheme.
  • Repayment in equated monthly instalments (EMIs) has been stipulated to ease the burden of payment for the applicant during the business initialisation.

Relaxations Permitted for North Eastern Regions

  • The maximum subsidy permitted is 15% of the project cost or 15,000, whichever is lower
  • The margin money will be in the range of 5% to 12.50% of the project cost
  • Projects involving a cost up to 2 Lakhs will be eligible for assistance

Amendments Made to PMRY Scheme

The following amendments have been made to the PMRY Scheme:

  • SC/ST and women beneficiaries are now eligible for the funding under the scheme up to the age of 45 years instead of 35 years.
  • Agriculture and allied activities are included under the scheme and agricultural activities such as the purchase of manure and raising of the crop are excluded.
  • Candidates in 7 North Eastern States are eligible for assistance under the scheme till the age of 40 years.

Documents for PMRY Scheme

The following documents have to be produced to apply for loan under the scheme:

  • Proof of address like the Aadhaar Card, Voter's ID, Driving Licence, Utility bills
  • Certificate of EDP Training
  • Certificates in respect of Educational Qualification, Experience. Any other technical certificates that are available.
  • SSC Certificate or TC (school where the candidate studied) as proof of date of birth
  • Copy of the Project Report
  • Certificate of Income issued by the Mandal Revenue Officer (MRO)
  • The Caste Certificate, wherever applicable. Caste Certificate should be the one issued by Mandal Revenue Officer.

PMRY-Implementation

The Scheme will be implemented by the Directorate of Industries as well as the District Industry Centres in coordination with the banks. The selection of candidates, identification of economic activities and the necessary infrastructure are a part of the implementation. Even the follow-up and liasioning with the banks have to be done by the two principal implementing bodies.

The prime responsibilities of the Committee set up for implementation are:

  • Identification of economic activities and selecting subsidiary activities
  • Motivating the candidates who are selected for assistance under the scheme
  • Structuring the action plan for the identified service, business, and activities
  • Recommendation of the loan
  • Permissions from the authorities linked have to be obtained

The expenditure for training a PMRY candidate under the industry sector will be 1,000 per candidate inclusive of the stipend and for candidates under the business sector the expenditure will be 500 per head which includes the stipend.

PMRY Scheme has been a major initiative by the Central Government to eradicate the unemployment problem among the youth of the country including women and make them capable of earning to the extent of providing for their family needs.

Steps to Apply for the Loan under PMRY Scheme

The following steps have to be followed to apply for the loan under PMRY Scheme:

  • The application form has to be downloaded from the official website of PMRY Scheme
  • The duly filled and signed form has to be submitted to the banks designated under the PMRY Scheme and thereafter the bank will keep you updated about the status.

PMRY Scheme was an initiative to generate employment opportunities to the unemployed youth by developing 7 lakh micro-enterprises by encouraging service and business sector ventures.

What is Pradhan Mantri Rojgar Protsahan Yojana?

The Pradhan Mantri Rojgar Protsahan Yojana was yet another step to generate new employment opportunities to accommodate the unemployed youth. The announcement of the scheme was made during the 2016-17 Union Budget. This was mainly to encourage the generation of employment opportunities.

The target group of this scheme is employees with wages below 15,000 in a month. The scheme encourages the SME sectors to avail of this benefit. With this scheme, the employees gain access to these organised sectors social security benefits.

Under this scheme, an incentive plan has been devised wherein the employers' contribution to EPF and EPS will be provided by the Government of India and this incentive plan came into effect from 1.4.2018. With this incentive plan, the employer will be motivated to generate new employment opportunities and there will be no dearth for employed for the educated youth of the country.

Eligibility Criteria to Avail Benefit under PMRPY Scheme

To avail of the benefit, the following criteria have to be complied with:

  • Workers with wages less than 15,000 p.m. are the target group for this scheme and so the fresh employees who are being paid wages more than 15,000 will not be eligible for the benefit under this scheme. An employee who was not employed in an organisation registered under EPFO prior to the year 2016 will be the new employee. To determine this, a new Universal Account Number linked to Aadhaar would have been allocated on or after April 2016. A new UAN number can be got through the EPFO portal if the employee does not have one.
  • The establishments will have to be registered with the EPFO. Now the Government of India will bear the full contribution of the employer, i.e., 8.33% towards EPS and 3.67% towards EPF with effect from 1.4.2018.
  • The establishment should have LIN (Labour Identification Number) allotted under Shram Suvidha Portal. It is mandatory to be registered on the PMRPY portal to avail the benefit. The main reference number for all official communication under the scheme will be the LIN.
  • The establishment or the employer will be responsible for all the information provided while applying for the scheme. If at any point in time if the information is found to be incorrect then the benefit under the scheme, in terms of the EPF/EPS contribution for the particular establishment may be withdrawn and the employer or the establishment will be liable to penalties under the rules of the EPF Act 1952.
  • Employees inducted into the establishments who are eligible for the scheme should add such new recruits to the worker reference base to avail of the benefit under the scheme.
  • The workers' reference base is determined by the number of employees for whom the employers' contribution towards EPF and EPS is being made. This can be verified with monthly ECR pertaining to March 2016.
  • For EPFO registration for establishments after April 2016 the reference for number of the employees will be taken as Zero. By doing so, they will be able to obtain the benefit for new employees under the PMRPY Scheme.
  • The PMRPY online form should be submitted by the employer on or before the 10th of the succeeding month to avoid any penalty.

What is the Validity Period of the PMRPY Scheme?

The PMRPY scheme will be in operation for a period of three years. The contribution towards EPS at 8.33% which the employer has to pay for the next three years will be paid by the Government. The cover under the scheme will be available for the new employees till 2019-2020.

What is the Procedure to be Followed to Avail the Benefit under PMRPY Scheme?

To avail the benefit under the scheme the following criteria have to be complied with:

  • Availability of a valid LIN and registration under EPF Act 1952 are mandatory for the establishments.
  • The establishment must have a PAN for the organisation
  • Details of the payment gateway for the establishment through which payments are made and a valid bank account of the establishments are required.
  • The ECR submission must have been made on or before the due date
  • There should have been an increase in the number of employees after April 2016

What is the Procedure to Apply for the PMRPY Scheme?

The following steps have to be followed to apply for the PMRPY Scheme:

  • The establishment or the employer has to log in to the official PMRPY website with their LIN or EPFO registration ID.
  • The details of the organisation have to be filled up as required. This includes the PAN of the organisation, industry classification or sector as per NIC-2008-National Industrial Classification Code which is maintained by the Ministry of Statistics and Programme Implementation.
  • Since the scheme is to cover the employment of new employees whose income is less than 15,000 a month, the job role, designation for the new post, the date of employment and the date exit, wherever applicable have to be mentioned.
  • The form has to be submitted by the employer before the 10th of the succeeding month for the updation of the details.
  • If not submitted within the prescribed date, the employer will lose the benefit for the particular month.

Frequently Asked Questions

What is the main objective of the PMRY Scheme?

The main objective of the PMRY Scheme is to generate employment for the unemployed youth of the country and to encourage entrepreneurship.

What is the age limit to be eligible for assistance under the PMRY Scheme?

The age limit specified for general candidates is 18 years to 35 years. For candidates from the North East, SC/ST and women, the age specification is 18 years to 45 years.

What are the relaxations permitted for the candidates who belong to the North-Eastern Region?

The following relaxations are permitted for the candidates who belong to the North-Eastern Region:

  • The upper age limit will be 45 years instead of 35 years
  • The subsidy provided will be 15% of the project cost with a maximum of 15,000 whereas for the other candidates the maximum subsidy is 7,500.
  • The margin will be in the range of 5% to 12.5%
  • Assistance will be provided for projects with a project cost of 2 Lakhs

Is group financing permitted under the scheme?

Yes, group financing is permitted but the overall project cost will be limited to 5 Lakhs

What is the specification for project cost under the PMRY Scheme?

The project cost for the business sector is limited up to 2 Lakhs and the project cost for the other sectors is limited to 5 Lakhs.

What are the responsibilities of the Implementation Committee?

The responsibilities of the Implementation Committee are:

  • Identification of economic activities and selecting subsidiary activities
  • Motivating the candidates who are selected for assistance under the scheme
  • Structuring the action plan for the identified service, business, and activities
  • Recommendation of the loan
  • Permissions from the authorities linked have to be obtained

What are the steps to apply for a loan under PMRY Scheme?

The following steps have to be followed to apply for the loan under PMRY Scheme:

  • The application form has to be downloaded from the official website of PMRY Scheme
  • The duly filled and signed form has to be submitted to the banks designated under the PMRY Scheme and thereafter the bank will keep you updated about the status.

What is the PMRPY Scheme and what are its objectives?

The main objective of the PMRPY Scheme, an initiative by the Government of India, which was announced during the 2016-17 Union Budget was to encourage business establishments to generate new employment opportunities.

The target group of this scheme is employees with wages below 15,000 in a month. The scheme encourages the SME sectors to avail of this benefit. With this scheme, the employees gain access to these organised sectors' social security benefits.

Under this scheme, an incentive plan has been devised wherein the employers' contribution to EPF and EPS will be provided by the Government of India and this incentive plan came into effect from 1.4.2018. With this incentive plan, the employer will be motivated to generate new employment opportunities and there will be no dearth for employment for the educated youth in the country.

How to avail the benefit under PMRPY Scheme?

To avail the benefit under the scheme the following criteria have to be complied with.

  • Availability of a valid LIN number and registration under EPF Act 1952 are mandatory for the establishments.
  • The establishment must have a PAN for the organisation
  • Details of the payment gateway for the establishment through which payments are made and a valid bank account of the establishments are required.
  • The ECR submission must have been made on or before the due date
  • There should have been an increase in the number of employees after April 2016

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