The Chairman / Managing Director
All
Indian Scheduled Commercial Banks
(Excluding RRBs)
Dear Sir,
Target
under the Prime Minister Rozgar Yojana (PMRY) for the year 2007-2008
We advise that Government of India have allocated a target
of 3,75,690 to States/UTs as per `Annexure A',
under PMRY for the year 2007 – 2008.
2.
The targets have been worked out on the basis of the final performance report
for the year 2005-06 of states/UTs.
3.
The list of States/UTs where the recovery of loans is less than 35 percent as
for the half year ending March, 2006 is given at `Annexure
B'. It is requested that appropriate action plans for improving recovery
of loans may be formulated by each of the implementing banks in these states.
4. The terms and conditions of the Yojana will be governed by the revised
guidelines for PMRY, as furnished in the 'Annexure – D'.
Some of the salient features are as under:
(i)
The family income ceiling has been enhanced from Rs.40, 000/- per annum to Rs.1.00
lakh per annum.
(ii) Project cost has been enhanced from
Rs. 1.00 lakh to Rs.2.00 lakh for business/ service sector and from Rs.2.00 lakh
to Rs.5.00 lakh for industry sector.
(iii) Ceiling on
subsidy has been enhanced from Rs.7,500/- to Rs.12,500/- per beneficiary in all,
other than the North – Eastern States(including Sikkim), Himachal Pradesh, Uttarakhand
and Jammu & Kashmir, where the ceiling remains at Rs.15000/- per beneficiary.
(iv) The ceiling on subsidy for Self Help Groups has
been enhanced to Rs.15000/- per beneficiary subject to a maximum amount of Rs.
1.25 lakh per Self Help Group.
(v) The scheme will be
implemented in the rural as well as in the urban areas of the country.
(vi)
All efforts should be made to achieve the target (i.e., complete disbursement
of loan and subsidy) by the end of March, 2008.
(vii) While
processing fresh applications, the DICs of your State/ UT may be requested to
take into account applications already pending with them so that such persons
are not required to apply afresh.
(viii) The scheme envisages
coverage of SC/ST and minority candidates at least equal to their population in
the District/State. However, the percentage should not be less than 22.5 percent
for SC/STs, 27 percent for Other Backward Classes (OBCs) and 30 percent for women.
Equitable share for minorities may also be ensured.
(ix)
All efforts must be made to improve loan recovery under the Scheme.
(x)
Attention is drawn to the revised Quarterly Schedule at `Annexure
C' for sponsoring and sanctioning of applications and disbursement of
loans / subsidies during 2007 –2008. This schedule may be implemented strictly
so as to prevent bunching of applications towards the end of the financial year.
The number of sponsored cases should be 125 percent of the assigned target.
(xi)
For 2006-07, the cut off date of lapsing of sanction and completion of disbursement
has been extended upto 30.06.2007. This period shall not be extended further.
5. A copy of the revised guidelines on PMRY is given
at 'Annexure D'. These may be kept in view while implementing the Yojana
w.e.f. programme year 2007-08. Accordingly, relevant paragraphs in the Master
Circular in PMRY, issued vide our circular RPCD.
PLNFS. BC.No.01/09.04.01/2006-07 dated July 01, 2006 stand amended by the
revised guidelines on PMRY.
6. You may issue necessary
instructions to your Regional /Controlling Offices/ Branches for active participation
and achievement of allocated targets by 31.03.2008.
7.
Please acknowledge receipt.
Yours faithfully,
(G.P.Borah)
Deputy General Manager
Annexure
- A
Targets under the prime minister's Rozgar
Yojana
(PMRY) for the year 2007-2008
| Sl.
No. |
Parameters for eligibility |
| 1. |
Age | (i)
18 to 35 years for all educated unemployed.
(ii) 18 to 40 for all educated
unemployed in North-East States, Himachal Pradesh, Uttarakhand and J&K.
(iii)
18 to 45 years for Scheduled Castes /Scheduled Tribes, Ex- servicemen, Physically
Disabled and Women. |
|
2. |
Educational Qualification |
VIII pass. Preference will be given
to those who have been trained for any trade in
Government recognised/ approved
institutions for duration of at least six months. |
| 3. |
Family income | Neither
the income of the beneficiary along with the spouse nor the income
of parents
of the beneficiaries shall exceed Rs.1,00,000/- p.a. |
| 4. |
Residence | Permanent
resident of the area for atleast 3 years. (Relaxed for married men in
Meghalaya
and for married women in rest of the country. For married men in Meghalaya and
for married
women in rest of the country, the residency criteria applies to
the spouse or in-laws. |
|
5. |
Defaulter | Should
not be a defaulter to any nationalized bank/ financial institution/co-operative
bank.
Further, a person already assisted under other subsidy linked Government
schemes would
not be eligible under this scheme. |
| 6. |
Activities covered | All
economically viable activities including agriculture and allied activities but
excluding direct
agricultural operations like raising Crop, purchase of manure
etc. |
| 7. |
Project Cost | Rs.2.00
lakh for business/ service sector and Rs.5.00
lakhs for industry sector, loan to be of
composite nature. If two or
more eligible persons joins together in a partnership, project upto
Rs.10.00
lakhs are covered. Assistance shall be limited to individual admissibility.
Self Help Groups can be considered
for assistance under the Scheme provided: - Educated
Unemployed Youth satisfy the eligibility criteria laid down under the Scheme
volunteer
to form SHG to set up self-employed ventures (Common Economic Activity). - A
Self Help Group may consist of 5-20 educated unemployed youth.
- No
upper ceiling on project cost.
- Loan may be
provided as per individual eligibility taking into account requirement of the
project.
- SHG may undertake common economic
activity for which loan is sanctioned without resorting
to onward lending
to its members. - The subsidy ceiling for
Self Help Group is Rs. 15,000/- per beneficiary subject to a maximum of Rs. 1.25
lakh per Self Help Group.
- Subsidy may be
provided to the SHG as per the eligibility of individual members taking into account
relaxation provided in North Eastern States, Uttarakhand, Himachal Pradesh and
Jammu & Kashmir.
- Required margin money contribution
(i.e. subsidy and margin to be equal to 20 per cent of the project cost) should
be brought in by the SHG collectively.
- The exemption
limit for obtention of collateral security will be Rs.5.00 lakh per borrowal account
for projects under Industry Sector. Exemption from collateral will be limited
to an amount of Rs.2.00 lakh per member of SHG for projects under Service &
Business Sectors. Banks may consider enhancement in limit of exemption of collateral
in deserving cases.
- Implementing agencies may
decide necessity of predisbursal training for all the members/majority of the
members of the group.
|
| 8. |
Subsidy & Margin money |
i) Subsidy will be limited to 15%
of the project cost subject to ceiling of Rs.12,500/- per entrepreneur. Banks
will be allowed to take margin money from the entrepreneur varying from 5% to
16.25% of the project cost so as to make the total of the subsidy and the margin
money equal to 20% of the project cost. For North Eastern States,
Himachal Pradesh, Uttrakhand and J&K. ii)
Subsidy @ of 15% of the project cost subject to a ceiling of Rs.15,000/- per entrepreneur
for north-eastern States, Himachal Pradesh,Uttaranchal and Jammu & Kashmir.
Margin money contribution from the entrepreneur may vary from 5% to 12.5% of the
project cost so as to make the total of the subsidy and the margin money equal
to 20% of the project cost. |
|
9. |
Collateral |
No collateral for units in industry
sector with project cost upto Rs.5.00 lakh (the loan ceiling under the
PMRY). For partnership projects under Industry Sector, the exemption limit for
obtention of collateral security will be Rs.5.00 lakh per borrower account. For
units in service and business sector no collateral for project upto Rs.2.00 lakh.
Exemption from collateral in case of partnership project will also be limited
to an amount of Rs.2.00 lakh per person participating in the project cost.. |
| 10. |
Rate of interest
& Repayment
Schedule |
Normal rate of interest shall be
charged. Repayment schedule may range from 3 to 7 years after an initial moratorium
as may be prescribed. |
| 11. |
Reservation | Preference
should be given to weaker sections including women. Assistance to SC/ST beneficiaries
should be targeted in such a manner that they are benefited in proportion to their
population in the respective district/State. However, the number of SC/ST beneficiaries
should not be less than 22.5% and 27% for Other Backward Class (OBCs) as is currently
envisaged in the PMRY. In case SC/ST/OBC candidates are not available, States/UTs
Govt.will be competent to consider other categories of candidates under PMRY.
|
| 12. |
Training |
Each entrepreneur whose loan is sanctioned is provided
training as per details given below:
i) For industry sector:
Duration:15-20
working days.
Stipend: Rs.750/-
Training expenditure: Rs.1750/-
ii) For
service and business sector:
Duration:7-10 working days.
Stipend: Rs.375/-
Training
expenditure: Rs.875/- |
| 13. |
Motivational campaigns |
To improve the success rate of
eligible applicants, States/UTs will be allowed reimbursement of cost of counseling
and guiding the applicants @ Rs.200/- per applicant, for 125 per cent of the allocated
target of cases. |
| 14. |
Recovery of loans | (i)
Panchayati Raj Institutions like Gram Panchayats be empowered to identify and
sponsor candidates located in the same area to the District Task Force Committee
so as to ensure disbursement of loan to genuine persons and better recovery of
loan. (ii) To reduce the level of sickness/closure of PMRY
units, the District Level Selection Committee/Task Force Committee be made accountable
for the proper scrutiny of applications and selection of viable projects. |
| 15. |
Implementing Agency |
The District Industry Centres and
Directorate of Industries are mainly responsible for implementation of the Scheme
along with the banks. |