PMRY Full Form-Prime Ministers Rozgar Yojana

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

The Prime Minister's Rozgar Yojana (PMRY), launched in 1993, was a transformative initiative by the Government of India to combat unemployment among educated youth by providing financial assistance and training for self-employment ventures, fostering entrepreneurship and economic growth.

This article explores the features, benefits, eligibility, application process, and lasting impact of PMRY.

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

PMRY was designed to reduce unemployment by offering financial support to educated youth for establishing micro-enterprises in manufacturing, service, and trade sectors. It aimed to transform job seekers into job creators, driving grassroots economic development.

Key Features of PMRY

PMRY included:

• Target Group: Educated unemployed youth aged 18–35 (up to 45 for SC/ST, women, ex-servicemen, and physically challenged).
• Educational Qualification: Minimum 8th standard pass, with preference for trade-trained individuals.
• Family Income: Annual family income (including spouse and parents) not exceeding Rs. 40,000.
• Loan Facility: Up to Rs. 1 lakh for business sector, Rs. 2 lakh for industrial/service sectors; up to Rs. 10 lakh for partnership projects.
• Subsidy: 15% of project cost, capped at Rs. 7,500 per entrepreneur (Rs. 15,000 in North-Eastern regions, Himachal Pradesh, Uttarakhand, and Jammu & Kashmir).
• Collateral: No collateral for projects up to Rs. 1 lakh.
• Training: Mandatory 15–20-day Entrepreneurship Development Programme (EDP) with a stipend (up to Rs. 2,000 per case).
• Repayment: 3–7 years after a moratorium period, at standard bank interest rates.

Objectives of Prime Minister's Rozgar Yojana

PMRY aimed to:

• Reduce unemployment among educated youth.
• Promote self-reliance through entrepreneurship.
• Strengthen micro, small, and medium enterprises (MSMEs).
• Support marginalized groups, with 22.5% reservation for SC/ST and 27% for OBC.
• Encourage economically viable ventures, including agriculture (excluding direct operations).

Eligibility Criteria

Eligibility for PMRY included:

• Age: 18–35 years (up to 45 for SC/ST, women, ex-servicemen, physically challenged).
• Education: Minimum 8th standard pass.
• Residence: Permanent resident of the area for at least 3 years.
• Income: Family income not exceeding Rs. 40,000 annually.
• Loan History: No defaults with nationalized banks or financial institutions.

Benefits of PMRY

PMRY provided:

• Financial Access: Collateral-free loans eased startup costs.
• Skill Development: EDP training equipped beneficiaries with business skills.
• Economic Growth: Boosted local economies through small businesses.
• Inclusivity: Empowered women and marginalized groups.
• Job Creation: Generated employment beyond self-employment.

Application Process

The PMRY application process involved:

• Form Submission: Obtain and submit application form with documents (Aadhar, income proof, educational certificates, etc.) at District Industries Centers (DICs) or participating banks.
• Interview: Task force committee assessed business ideas and eligibility.
• Training: Selected candidates underwent 15–20 days of EDP training, receiving certificates.
• Loan Sanction: Post-training, banks disbursed loans after verifying project feasibility.
• Project Implementation: DICs and banks supported project setup.

Impact of Prime Minister's Rozgar Yojana

PMRY had a profound impact:

• Entrepreneurship: Enabled thousands to start micro-enterprises in diverse sectors.
• Employment: Created jobs directly and indirectly, benefiting communities.
• Rural Development: Stimulated economies in rural and semi-urban areas.
• Socio-Economic Upliftment: Improved living standards and income levels.

Though succeeded by schemes like the Pradhan Mantri Mudra Yojana (PMMY) and Prime Minister’s Employment Generation Programme (PMEGP), PMRY’s legacy endures, having empowered youth and laid the foundation for modern self-employment initiatives.

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