Pradhan Mantri Rozgar Yojana - Eligibility, Benefits, Application and PMEGP

• It was launched in 1993 to encourage self-employment among educated unemployed youth
• PMRY supported eligible individuals in setting up self-employment ventures
• The scheme was later merged with the Rural Employment Generation Programme (REGP)
• PMEGP was launched in 2008 as the successor scheme to PMRY and REGP
• PMEGP currently supports eligible individuals in establishing new micro enterprises in rural and urban areas
• PMEGP provides credit-linked subsidy support, subject to the applicable scheme guidelines and eligibility conditions

Pradhan Mantri Rozgar Yojana (PMRY) was a government employment-generation scheme launched on 2 October 1993. Its objective was to help educated unemployed youth establish self-employment ventures and create employment opportunities. The scheme was initially implemented in urban areas and was later extended to rural areas. PMRY supported eligible beneficiaries in setting up small businesses and self-employment activities through financial assistance and related support. However, PMRY is no longer an active standalone scheme. In 2008, it was merged with the Rural Employment Generation Programme (REGP) to create the Prime Minister's Employment Generation Programme (PMEGP).

PMRY was introduced to address unemployment by encouraging educated unemployed individuals to start their own businesses rather than depend only on salaried employment.

The key objectives included:

• Promoting self-employment
• Creating employment opportunities
• Supporting small business ventures
• Encouraging unemployed youth to become entrepreneurs
• Increasing income-generating opportunities
• Supporting economic activity in rural and urban areas

No. PMRY is not currently available as a separate government scheme. The Government of India introduced PMEGP in 2008 by merging PMRY with the Rural Employment Generation Programme. PMEGP is administered by the Ministry of Micro, Small and Medium Enterprises (MSME), with the Khadi and Village Industries Commission (KVIC) serving as the national-level nodal agency. Therefore, if you are looking for government financial assistance to start a new micro enterprise under the scheme that succeeded PMRY, PMEGP is the relevant current programme.

The Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy programme designed to generate employment by supporting new micro enterprises in the non-farm sector. The scheme covers both rural and urban areas and aims to encourage self-employment among prospective entrepreneurs, traditional artisans and unemployed individuals. PMEGP is implemented nationally through KVIC, with State KVIC Directorates, State Khadi and Village Industries Boards, District Industries Centres and participating banks involved in implementation.

For a new PMEGP enterprise, an individual above 18 years of age can apply, subject to the other scheme conditions.

There is no income ceiling for assistance for setting up projects under PMEGP. However, applicants proposing projects above specified costs must meet the prescribed educational qualification requirement.

For projects costing more than:

• Rs. 10 lakh in manufacturing, or
• Rs. 5 lakh in business or service activities,

The applicant must have passed at least Class 8. Other eligible entities can include certain self-help groups, registered societies, production cooperative societies and charitable trusts, subject to the scheme guidelines.

Before applying, check the following conditions:

PMEGP provides financial support through a combination of bank finance, beneficiary contribution and government margin-money subsidy, subject to the applicable guidelines.

Some key features include:

• Support for new micro enterprises
• Coverage of rural and urban areas
• Margin-money subsidy for eligible beneficiaries
• Bank-linked financing
• Support for manufacturing, service and eligible business activities
• Opportunities for self-employment and employment generation
   

PMEGP supports eligible new and viable micro enterprises in the non-farm sector, subject to the scheme's permitted activities and negative list.

Examples may include eligible activities in:

• Manufacturing
• Food processing
• Service businesses
• Traditional industries
• Artisan-based enterprises
• Certain eligible trading activities
• Permitted transport activities

Pradhan Mantri Rozgar Yojana was an important government initiative for promoting self-employment among educated unemployed youth, but PMRY is no longer an active standalone scheme. It was merged with REGP in 2008 to establish PMEGP. If you are currently looking for government assistance to start a new micro enterprise, PMEGP is the relevant programme to explore.