“Government has been seriously trying to generate employment in rural areas, in recent years” Discuss.
PMRY or Prime Minister's Rojgar Yojana is an employment scheme launched on 2nd October, 1993 , designed to create and provide sustainable self-employment opportunities to one million educated unemployed youth in the country during the 8th Plan Period. Its main features are:
- It is open to any unemployed youth residing in urban or rural area fulfilling the disability conditions for assistance
- Preference would be given to weaker section including women.
- The entrepreneurs are required to deposit 5 per cent of the project cost, the remaining 95 per cent being taken care by sanctioned as composite loan
- No collateral guarantee is required . The assets created under the scheme would be pledged to the bank.
- Government of India would provide subsidy at the rate of 15 per cent of project cost
- Repayment schedule ranges from 3 to 7 years after an initial moratorium of 6 to 18 months as decided by the bank
- There would be compulsory training for entrepreneurs after the loan is sanctioned.