Prime Minister's Rozgar Yojana (PMRY)

  PMRY Profiles  | 

PMRY is being implemented since 1993. The Scheme is designed to create and provide sustainable self-employment opportunities to one million educated unemployed youth in the country during the 8th Plan period. During the last 5 years of its implementation, it was felt that certain parameters of the PMRY Scheme needed modification.  For example condition of eligibility such as age, educational qualifications were coming in the way of expanding the coverage of the scheme in some cases.  Similarly the total financial assistance per case was found to be insufficient in case of certain viable activities.


Government, therefore, has decided to modify some of these parameters of the Scheme.  The upper age limit has been relaxed beyond 35 years by 10 years for SCs/STs and women and the educational qualifications for eligibility under the Scheme has been relaxed from matric (passed or failed) to VIIIth passed.  Similarly, the upper limit of project cost has been increased from Rs. 1 lakh to Rs. 2 lakhs (Rs. 1 lakh for business sector and Rs. 2 lakhs for other activities).  The PMRY scheme would now cover all economically viable activities including agriculture and allied activities but excluding direct agricultural operations like raising crop, purchase of manure etc.

The details of the changes made in the parameters of the PMRY Scheme are given below.

The modified financial parameter of increase in the upper limit of the project cost from Rs. 1 lakh to Rs. 2 lakhs has been effective from 1.4.1999.

Relaxation of norms for North Eastern Region

The PMRY would be expanded in scope to cover areas of horticulture, piggery, poultry, fishing, small tea gardens, etc. so as to cover all economically viable activities.  PMRY would have a family income ceiling of Rs. 40,000 per annum for each beneficiary along with his/her spouse and upper age limit will be relaxed to 40 years.  Project costing upto Rs. 2 lakhs in other than business sectors will be eligible for assistance.  No collateral will be Insisted for projects costing upto Rs. 1 lakh. Group financing upto Rs. 5 lakhs will be eligible.  Scheme will have a subsidy component @ 15% with an upper ceiling of Rs. 15,000/-.  The margin money may vary from 5% to 12.5% of the project cost to make the subsidy and margin contribution at 20% of the project cost.







For all educated unemployed 18-35 years in general with a 10 years relaxation for SC/STs, ex-servicemen, physically handicapped and women.


Educational Qualification

VIIIth passed.  Preference will be given to those who have been trained for any trade in Goverment recognised approved institutions for a duration of at least six moths.


Family Income

Neither the income of the beneficiary along with the spouse nor the income of parents of the beneficiaries shall exceed Rs. 40,000/- p.a.



Permanent resident of the area for at least 3 years.



Should not be a defaulter to any nationalised bank/financial institution/ cooperative bank.  Further, a person already assisted under other subsidy linked Government schemes would not be eligible under this Scheme.


Activities covered

All economically viable activities including agriculture and allied activities but excluding direct agricultural operations like raising Crop, purchase of manure etc.


Project Cost

Rs.1.00 lakh for business sector.  Rs. 2.00 lakhs for other activities, 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.


Subsidy & Margin money

Subsidy will be limited to 15% of the project cost subject to ceiling of Rs. 7,500/- 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.



No collateral for project upto Rs.1 lakh.  Exemption from collateral in case of partnership project will also be limited to an amount of Rs. 1.00 lakh per person participating in the project.


Rate of interest & Repayment Schedule

Normal rate of interest shall be charged.  Repayment schedule may range between 3 to 7 years after an initial moratorium as may be prescribed.


Training & other assistance.

The training expenses and operational expenditure to be covered within the ceiling of  Rs. 2,000/- per case.  The existing system of revising the scale of expenditure in consultation with the Finance for various activities and flexibility would be available to the implementing agencies of the State and Central levels subject to condition that over all training and operating expenses remain within the ceiling of Rs. 2,000/- per case sanctioned.


Implementing Agency

The District Industry Centres and the Directorates of Industries shall mainly be responsible for scheme implementation along with banks.


Linkages of targets with recovery

Basic minimum targets based on the population and the number of educated unemployed.  Additional targets would be linked to the recovery of loans sanctioned, past performance of sanctions or special circumstances prevailing in the State/UT.



Preference should be given to weaker sections including women.  The scheme envisages 22.5% reservation for SC/ST and 27% for Other Backward Class (OBCs).  In case SC/ST/OBC candidates are not available, State/UTs Govt. will be competent to consider other categories of candidates under PMRY.

    Further clarifications
    i)    Margin/Subsidy/Project Costs:

    Class sanctioned during the current year up to 31.3.99 shall continue to be sanctioned on the basis of the modalities on subsidies/margin/project costs as originally notified in the scheme in 1993.  Their disbursement in the current year and thereafter till the cut off dates in the following year shall be in accordance with the sanction conditions.  The changed subsidy/margin and project costs and modalities on subsidies/margins/project costs for the general as well as the seven North-Eastern States shall be applicable from 1.4.99: and to cases sanctioned thereafter.

    ii)    Training and other assistance:

    The ceiling on training expenditure for the industrial sector shall continue to remain at the rate of Rs. 1,000/- per case inclusive of stipend and Rs. 500/- per case inclusive of the stipend for service and business sectors to be made available to States/UTs.  Contingency funds at the rate of  Rs. 250/- per case sanctioned to the States/UTs shall be admissible.  Flexibility in expenditure shall be notified in due course.

    iii)    Age:

    a)     Educated unemployed from the age group of 18 to 35 years are eligible under the scheme.  A relaxation up to 10 years in the upper age limit shall be admissible to SCs/STs, ex-servicemen, physically handicapped and women i.e. up to the age of 45 years.

    b)     In the case of the seven North Eastern States, the upper age limit has been relaxed, in general up to 40 years.  For the SCs/STs, ex-servicemen, physically handicapped and women the relaxation shall be up to the age of 45 years.