PMRY Full Form-Prime Ministers Rozgar Yojana

Prime Minister's Rozgar Yojana (PMRY): Empowering Youth through Self-Employment

India, a country with one of the largest youth populations in the world, has always emphasized empowering its young citizens with opportunities for employment and entrepreneurship. One of the landmark initiatives aimed at this objective is the Prime Minister's Rozgar Yojana (PMRY). Launched in 1993, PMRY was a visionary scheme designed to provide self-employment opportunities to educated but unemployed youth by facilitating financial assistance through banks.

In this article, we will explore the key features, benefits, eligibility criteria, application process, and impact of the PMRY scheme.

What is Prime Minister's Rozgar Yojana (PMRY)?

The Prime Minister's Rozgar Yojana (PMRY) was introduced by the Government of India with the goal of reducing unemployment among the educated youth of the country. Under this scheme, financial assistance is provided to young entrepreneurs to set up self-employment ventures in industries, service sectors, and business activities.

The main idea behind PMRY is not just to provide jobs but to encourage youth to become job creators rather than job seekers. By supporting small business initiatives, the government hoped to stimulate economic development at the grassroots level.

Key Features of PMRY

• Target Group: Educated unemployed youth between the ages of 18 to 35 years.

• Educational Qualification: Minimum 8th standard pass. Preference is given to those trained in recognized trade courses.

• Family Income: Family income (of parents and spouse) should not exceed Rs. 40,000 per annum.

• Loan Facility: Composite loans covering project cost up to Rs. 1 lakh for business sector and Rs. 2 lakh for industrial sector.

• Subsidy: Subsidy of 15% of the project cost subject to a ceiling of Rs. 7,500 per entrepreneur.

• Collateral: No collateral security for projects up to Rs. 1 lakh.

• Training: Mandatory Entrepreneurship Development Programme (EDP) training to equip beneficiaries with essential business skills.

Objectives of Prime Minister's Rozgar Yojana

The PMRY was launched with several clear objectives:

1. Reduce Unemployment: Address the growing problem of unemployment among educated youth.

2. Promote Self-Employment: Shift the focus from seeking government jobs to becoming self-reliant.

3. Encourage Entrepreneurship: Create a culture of innovation and small business development.

4. Boost Small Scale Industries: Strengthen the micro, small, and medium enterprises (MSME) sector.

5. Empower Marginalized Groups: Provide special support to women, SC/ST, and physically handicapped individuals.

Eligibility Criteria

To ensure that the benefits of the scheme reached the right audience, specific eligibility criteria were laid down:

• Age: 18-35 years (relaxable by 10 years for women, SC/STs, ex-servicemen, and physically handicapped).

• Educational Qualification: Minimum 8th standard pass.

• Residence: Permanent resident of the area for at least three years.

• Income: Family income should not exceed Rs. 40,000 per annum.

• Loan Default: Should not have defaulted on loans from any nationalized bank or financial institution.

Benefits of PMRY

The Prime Minister's Rozgar Yojana brought numerous benefits, including:

• Financial Assistance: Easy access to loans without the need for heavy collateral.

• Skill Development: Training programs to build entrepreneurial skills.

• Economic Growth: Promotion of small businesses, leading to local economic development.

• Women Empowerment: Special focus on encouraging women entrepreneurs.

• Inclusive Growth: Participation of marginalized communities in the economic process.

Application Process

The process for applying under PMRY was straightforward and accessible:

1. Application Form: Interested candidates needed to fill out an application form available at District Industries Centers (DICs) or banks.

2. Interview: Applicants were interviewed to assess their business idea and eligibility.

3. Training: Selected candidates had to undergo Entrepreneurship Development Programme (EDP) training.

4. Loan Sanction: After successful completion of training, the loan was sanctioned through participating banks.

5. Project Implementation: The loan amount was disbursed to help set up the business venture.

Impact of Prime Minister's Rozgar Yojana

Since its inception, PMRY has played a crucial role in promoting entrepreneurship among the youth. It has successfully helped lakhs of individuals set up small businesses, thereby reducing the dependency on traditional employment sectors.

Some of the notable impacts include:

• Creation of New Entrepreneurs: Thousands of small-scale entrepreneurs emerged across sectors like manufacturing, services, and trade.

• Employment Generation: Beyond self-employment, many beneficiaries went on to employ others, creating a ripple effect.

• Boost to Rural Economy: Rural and semi-urban areas benefited significantly from the scheme.

• Socio-Economic Development: Increased income levels and improved standards of living for beneficiaries and their families.

The Prime Minister's Rozgar Yojana stands as a milestone in India’s journey toward empowering its youth through entrepreneurship and self-employment. By providing the necessary financial support and training, the government not only addressed the issue of unemployment but also nurtured a spirit of self-reliance and innovation among young Indians.

While PMRY has now been succeeded by other schemes like the Pradhan Mantri Mudra Yojana (PMMY), its legacy continues to inspire self-employment initiatives across the country. Schemes like PMRY highlight the importance of supporting the entrepreneurial dreams of young citizens, which in turn fuels the nation’s growth and prosperity.