DEFINITION OF ENTREPRENEURSHIP

Entrepreneurship is more than simply starting a business. The definition of

entrepreneurship is a process through which individuals identify opportunities,
allocate resources, and create value. This creation of value is often through the
identification of unmet needs or through the identification of opportunities for
change.
Entrepreneurs see problems as opportunities, then take action to identify the
solutions to those problems and the customers who will pay to have those problems
solved.
Entrepreneurial success is simply a function of the ability of an entrepreneur to see
these opportunities in the marketplace, initiate change (or take advantage of
change) and create value through solutions.

WHAT IS BUSINESS ENTREPRENEURSHIP?

There are many interpretations and definitions of entrepreneurship.
According to intellectuals and business experts, the definition of entrepreneurship
is simply the combining of ideas, hard work, and adjustment to the changing
business market. It also entails meeting market demands, management.
Most importantly, it describes the key directive of any business - innovation.
Innovation is by far the primary factor that governs the very creation of a small
business or entrepreneurship. Innovations can be processes or even products.
One example of a process could be the creation of ideas through the written word.
Products can refer to anything that is created that can be sold, whether it is a new
type of glue or even a service that provides; for example, housecleaning.
Whenever we talk about a business term it is essential to analyse its meaning,
ENTREPRENEURSHIP i.e trying to identify market opportunities, arranging
resources to bring an imaginative idea to a practical situation and investing these
resources in order to attain long term gains. characteristics of entrepreneurship

CREATIVE ACTIVITY i.e it involves innovation of products and

techniques by keeping in mind the market;

DYNAMIC PROCESS i.e. keeps in mind changing external environment;

PURPOSEFUL ACTIVITY i.e. purposed to earn profits or bring a

difference to the market ;

INVOLVES RISK i.e entrepreneurial decisions are vast and can not be
reverted easily and involve great deal of investments.

The entrepreneur as a person who undertakes a commercial venture organizes it,

raises capital to finance it or a major portion of the risk.
Characteristics of an entrepreneur include

ability to bear risk,

technical knowledge about production techniques and marketing,

ability to gather financial and motivational resources

ability to build a sound organization.

TYPES OF ENTREPRENEURS

INNOVATIVE i.e introduction of something new to the nation (e.g:

Dhirubhai Ambani, Indian entrepreneur);

IMITATING i.e. one who adopts a method of production or technology

already adopted by someone else and may not be able to afford resources for
entrepreneurial research;

FABIAN i.e those who are cautious in adopting any changes and are shy and
lazy to adopt new methods

DRONE i.e. those who resist changes and continue to use old or traditional
methods of production.

GUIDELINES FOR PROSPECTIVE ENTREPRENEUR

1).General

Information

2).Financial

Assistance

3).Project

Report

4).Training
5).Marketing
6).Promotional Schemes
1). GENERAL INFORMATION
What can be done for self-employment?
A micro or small or medium enterprise can easily be set up for self-employment.
You can choose an activity depending upon your interest and suitability not only to
become self-employed but also to generate employment for others.
WHAT IS A MICRO, SMALL OR MEDIUM ENTERPRISE?
The earlier concept of Industries has been changed to Enterprises

Enterprises

have

been

classified

broadly

into:

(i)Enterprises engaged in the Manufacture / production of Goods pertaining

to

any

industry;

&

(ii) Enterprises engaged in providing / Rendering of services.

Manufacturing enterprises have been defined in terms of investment in plant and
machinery (excluding land & buildings) and further classified into :
-

Micro

Enterprises

investment

up

to

Rs.25

Small Enterprises - investment above Rs.25 lakh & up to Rs.

lakh.
5crore

Medium

Enterprises

investment

above

Rs.

crore & up to Rs.10 crore.

-

Service enterprises have been defined in terms

investment

in equipment (excluding

of

their

land & buildings) and further

classified
-

Micro

Enterprises

into:

investment

- Small Enterprises investment above

up

to

Rs.10

Rs.10 lakh & up to Rs.2

lakh.
crore.

- Medium Enterprisesinvestment above Rs. 2 crore & up to Rs. 5 crore

It is not necessary to engage in manufacturing activity for self-employment. One

can set up service enterprises as well.

HOW DO I SELECT AN ACTIVITY FOR SELF-EMPLOYMENT?

For selecting an activity or enterprise, you will have to consider the following
significant issues:

Where do you want to promote the enterprise?

What resources are available near the location of the enterprise?

What kind of market or consumer pattern exists near the site of enterprise?

What kind of contacts you have to exploit to your advantage for marketing
of the product?

What infrastructure is available at the location of your enterprise?

There are many other considerations including availability of skilled

manpower, raw material, technology etc. before you narrow down your
choice for selection of industry or activity.
WHO WILL ASSIST IN IDENTIFYING THE ACTIVITY?

MSME Development Institutes can assist you in identifying the activity based on
the Industrial Potential Survey and product specific market studies. District
Industries Centers/State Directorate of Industries also facilitate in identification n
of a suitable activity.
WHAT STEPS ARE REQUIRED FOR IDENTIFYING THE ACTIVITY?

A preliminary market study of product(s) or service(s) needs to be undertaken to

analyse consumption and availability pattern. If there is a gap in demand and
supply, the activity considered ideal for selection.
WHERE IS MARKET INFORMATION AVAILABLE?
Market information is available with MSME Development Institutes (MSMEDIs)
and DIC's of respective states/areas. Market Survey reports on various items and
Industrial potential surveys of particular areas provide the information about the
market potential of items. Industry and Trade associations, specialized institutions
like PPDC can also provide such information.

HOW CAN MARKET POTENTIAL BE ASCERTAINED?

Market potential can be ascertained by conducting preliminary study by

prospective entrepreneur to get an in sight of the product/ services to be setup. An
entrepreneur can estimate local demand, demand within the state or country, export
market and future prospects of product(s)/service(s). Visit to wholesale and retail
markets, bulk consumers etc. provides accurate information on market potential.

Is

there

any

agency

providing

guidance

on

marketing

potential?

MSMEDI and State Governments agencies viz. DICs and SIDCs provide guidance
on market potential. The gap in demand & supply can be established through
potential surveys and market assessments with the help of these agencies.
WHERE CAN THE ENTERPRISE BE SET UP?

The enterprise can be set up in a designated industrial areas, where infrastructure

facilities are available and is near to the market identified. It can also be set up in
any other area depending upon nature of activity and local municipal rules.
WHAT ARE THE INPUTS REQUIRED FOR SETTING UP AN
ENTERPRISE?

The following major inputs are required for setting up an enterprise:

Land, building or shed

Machinery and equipments

Raw Materials

Power and Water

Skilled manpower

Capital

ARE THERE ANY PROJECTS SUITABLE FOR NON-TECHNICAL AND

INEXPERIENCED ENTREPRENEURS?
There are many projects, which are suitable for non-technical and inexperienced
entrepreneurs. Skilled manpower and technical personnel can be hired according to
needs. Entrepreneurs can also join special short term training programmes.
MSMEDI's, DIC's, NSIC etc. provide intensive consultancy to such first
generation entrepreneurs.
HOW CAN A NEW ENTREPRENEUR COMPETE WITH THE EXISTING
MANUFACTURERS?
A prospective entrepreneur can take the advantage of opting for the latest
technology and production process and operate at higher volume of operation. This
leads to reduced production cost and production of quality goods and services. A
new entrepreneur can thus provide improved quality goods and services at lower
cost and further tap the market with innovative marketing approach.

2).FINANCIAL ASSISTANCE
Which

are

the

agencies

providing

financial

assistance?

Financial assistance is available from institutions such as Nationalised Banks,

Small Industries Development Bank of India, Regional Rural Banks, National
Small Industries Corporation, State Financial Corporations etc. depending upon the
project requirement and promoters background. Financial assistance has two
components. Loan for fixed capital is used to acquire Plant and Machinery, land
and building. Working capital loan is used to meet day to day operational cost of
the production. State Financial Corporation and National Small Industries
Corporation generally provide working capital. However under a package
assistance, State Financial Corporations also provide a composite loan covering
plant and machinery and working capital.

HOW TO CHOOSE THE MOST SUITABLE SOURCE OF FUNDING?

Any of the financial institutions can be approached to get funds keeping in view
their specific schemes. Evaluate and compare the terms and conditions, including
rate of interest and repayment period of loan offered by the different financial
institutions. Select the financial institution, which offers funds at minimum interest
rate as per your repayment plan to suit your project. Choose the Institution which is
in close proximity to the project site if other terms and conditions are similar.
What

are

the

eligibility

criteria

for

getting

loan?

The major eligibility criteria are return on the investment and profitability of the
project proposed to be set up. Any financial institution will support the project if
repayment is assured.
How much money the entrepreneur is required to invest out of his own
resources?

Some portion of total investment has to be contributed by the Entrepreneur out of

own sources. This is called margin money. Financial Institutions insist on 10 to 25
per cent margin money depending upon the category of the entrepreneur, risk
factor and existing scheme under which the project will be financed

Prime Minister Rozgar Yojana

Prime Minister of the India announced on August 15, 1993 a scheme for giving
self-Employment to learned jobless Youth in the country. This program is to give
self-employed breaks to one million jobless educated adolescents in the country.
This scheme is known as Prime Minister Rozgar Yojana. Officially the Scheme
has been started on October 2nd 1993 in the country.

Objectives: The PMRY has been intended to give employ to over million People
by starting seven lakhs micro ventures by the jobless educated youth. It recounts to
the starting of self-employment schemes through commerce, service & business
means. The proposal as well seeks to link presumed non-governmental associations
in execution of PMRY scheme particularly in the assortment, guidance of
entrepreneurs & homework of plan report.

Coverage: The scheme aims to take urban regions only in the year nineteen ninety
three to ninety four & entire country starting by ninety four to five. After 1994-95,
the current self-employment Scheme for the Educated Unemployed Youth
(SEEUY) will be included in PMRY.

Eligibility: Any jobless learned person residing in any region of the country
whether rural or urban satisfying the subsequent circumstances will be entitled for
aid. Though, during 1993-94, the proposal would be function in urban regions
only.
Age: Between eighteen to forty years (SC/ST forty five years).
Qualification: Matric (conceded or failed) or ITI conceded or having done Govt.
funded technical classes for a least period of six months.

Residency: Permanent occupant of the region for minimum of three 3 years

Document such as Ration Card would comprise enough evidence for this intention.
In its deficiency any other certificate to the approval of the Task Force ought to be
shown.
Family Income: Maximum Rs.40, 000/- yearly. Family would signify spouse &
parents of the recipient & family earnings would comprise earnings from all
resource, whether, salary, pay, retirement fund, farming, business, lease etc.
Defaulter: person must not be a nonpayer to any national bank/fiscal
organization/co-operative store.

Reservation:
Inclination should be set to weaker segment counting women. The system foresees
22.5% reservation for SC/ST & 27% for Other Backward Classes (OBCs).

Prime Ministers Rozgar Yojana (P.M.R.Y) For Educated Unemployed Youth

Prime Minister Rozgar Yojana for providing self-Employment to Educated
Unemployed Youth was announced by the Prime Minister on 15th August, 1993 to
provide self-employed opportunities to one million educated unemployed youth in
the country. The Scheme has been formally launched on 2nd October, 1993 .
1. Objectives:
The PMRY has been designed to provide employment to more than a million
Person by setting up of 7 lakhs micro enterprises by the educated unemployed
youth. It relates to the setting up of the self-employment ventures through industry,
service and business routes. The scheme also seeks to associate reputed non-

governmental organisations in implementation PMRY scheme especially in the

selection, training of entrepreneurs and preparation of project profiles.
2. Coverage:
The scheme intends to cover urban areas only during 1993-94 and whole of the
country from 1994-95 onwards. From 1994-95 onwards, the existing selfemployment Scheme for the Educated Unemployed Youth (SEEUY) will be
subsumed in PMRY.
3. Eligibility:
Any unemployed educated person living in any part of the country rural or urban
fulfilling the following conditions will be eligible for assistance. However, during
1993-94, the scheme would be operated only in urban areas.
a. Age: Between 18 to 40 years (SC/ST - 45 years).
b. Qualification: Matric (Passed or Failed) or ITI passed or having undergone
Govt. sponsored technical course for a minimum duration of 6 months.
c. Residency: Permanent resident of the area for at least 3 years Document like
Ration Card would constitute enough proof for this purpose. In its absence
any other document to the satisfaction of the Task Force should be produced.
d. Family Income: Upto Rs.40,000/- per annum. Family for this purpose would
mean spouse and parents of the beneficiary and family income would
include income from all sources, whether, wages, salary, pension,
agriculture, business, rent etc.
e. Defaulter: Should not be a defaulter to any nationalised bank/financial
institution/co-operative bank.

4. Reservation:
Preference should be given to weaker section including women. The scheme
envisages 22.5% reservation for SC/ST and 27% for other Backward Classes
(OBCs)
5. Project Cost:
Projects upto Rs.1 lakh are covered under the scheme in case of individuals. If two
or more eligible persons join together in a partnership, the project with higher costs
would also be covered provided share of each person in the project cost is Rs.1
lakhs or less.
6. Margin Money, Bank Loans and Rates of Interest:
Entrepreneur is required to contribute 5 percent of project cost as margin money in
cash. Balance 95 percent would be sanctioned as composite loan by Bank at the
rates of interest applicable to such loans under guidelines of Reserve Bank
of India issued from time to time.
7. Collatoral guarantee on bank loans:
The loans would not require any collateral guarantee. Only assets created under the
Scheme would be hypothecated/mortgaged/pledged to the Bank.
8. Subsidy:
Government of India would provide subsidy at the rate of 15 percent of the project
cost subject to a ceiling of Rs.7, 500/- per entrepreneur. In case more than one
entrepreneur join together and set up a project under partnership, subsidy would be

calculated for each partner separately at the rate of 15 percent of his share in the
project cost, limited to Rs.7, 500 (per partner).
9. Repayment Schedule:
Repayment Schedule would range from3 to 7 years after an initial moratorium of 6
to 18 months as decided by the Bank.
10. Training:
Scheme envisages compulsory training for entrepreneurs after the loan is
sanctioned.
11. Other Inputs:
a. State / U.T. Governments have been requested to provide necessary
infrastructure support like provision of Industrial sites, sheds, shops, water
on preferential basis to these entrepreneurs. Provision of sites and sheds at
concessional rate to service ventures in urban area will be essential for their
success. Many State/U.T Governments are providing various tax
concessions and incentives under their industrial Policy. Such concessions
should also be extended to the beneficiaries under the scheme.
b. As load requirement will be small, State/U.T. governments have also been
requested to give priority to the person getting the loan sanctioned under the
PMRY for electric connection and no deposit should be asked for and small
infrastructure e.g. erecting a few poles and extension of wire line should be
done expeditiously.
c. Implementation

of

the

Yearwise Target and Achievements

Scheme

of

PMRY

Sl
No

Applications Sanctioned
Year

Disbursed

Target

Nos. of
Benef.

Recd. Spon. Nos. Amount Nos. Amount

1 1993 - 94

200

574

2 1994 - 95

300

3 1995 - 96

313

1339 428

307 211.47 288 191.53 316

567

550

1622 592

513 356.88 477 296.77 586

687

4 1996 - 97

550

1537 635

553 406.12 497 327.37 589

735

5 1997 - 98

550

1733 588

524 364.63 464 289.95 415

751

6 1998 - 99

550

1699 583

463 341.84 396 247.1

494

538

7 1999 - 00

550

2912 609

477 315.47 290 163.37 551

261

8 2000 - 01

600

3249 640

417 194.65 179 121.11 549

213

9 2001 - 02

2000 3591 1920 1466 977.305 1195 845.694 1714

1267

10 2002 - 03

300

18

11 2003 - 04

* 1350

12 2004 - 05

* 1400

3356 334

139 106.29 135 98.92

Gen

152

Total

199

Trained

Empl.

157 82.5

6.49

160

8900 21612 6528 5016 3357.16 3930 2588.3 5526

5350

PRIME MINISTERS ROZGAR YOJANA (PMRY)

Monday, February 28, 2011
PRIME MINISTERS ROZGAR YOJANA (PMRY)
GENERAL FEATURES
Introduction
Prime Minister's Rozgar Yojana was launched on 2nd October 1993 to assist educated
unemployed youth to set up self-employment ventures. The scheme targeted for setting
up of nearly 7 lakh enterprises and consequent employment generation to more than one
million educated unemployed youth in the last four years of the 8th Five Year Plan.
Initially, the scheme was implemented only in the urban areas of the country. Since 199495, it is in operation in both urban as well as rural areas. The scheme continued in the 9th
Five Year Plan with the plan target of 11.00 lakh beneficiaries with annual target of 2.20
lakh beneficiaries. The PMRY is continuing in the 10th Five Year Plan also with the plan
target of 11.00 lakh beneficiaries.
Common Minimum Programme (CMP) of the UPA Government envisages creation of
additional employment opportunities in the rural non-farm sector. Accordingly, the target
for the year 2004-05 & 2005-06 under the Yojana has been enhanced from 2.20 lakh
beneficiaries to 2.50 lakh beneficiaries per annum.
Objective
The PMRY aimed to provide employment to more than a million persons by setting up of

7 lakhs micro enterprises by the educated unemployed youth during the last four years of
VIII Five Year Plan i.e. 1993-94 to 1996-97. The Scheme has been continuing in the X
Five Year Plan. It relates to the setting up of the self employment ventures in all
economically viable projects (except direct agricultural operations). The Scheme also
seeks to associate reputed non-governmental organisations in implementation of PMRY
Scheme especially in the selection, training of entrepreneurs and preparation of project
profiles.
Target Group/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,
Uttaranchal 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.40,000/- per annum.
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/cooperative 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.1.00 lakh for business sector. Rs.2.00
lakh for other activities, loan to be of composite nature. If two or more eligible persons
join together in a partnership, project upto Rs.10.00 lakh 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 loan.
Loan may be provided as per individual eligibility taking into account requirement of
the project.
SHG may under take common economic activity for which loan is sanctioned without
resorting to onward lending to its members.

 Subsidy may be provided to the SHG as per the eligibility of individual members
taking into account relaxation provided in North Eastern States, Uttaranchal,
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.1.00 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.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.
For North Eastern States, Himachal Pradesh, Uttaranchal 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.2.00
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
borrowal account. For units in service and business sector no collateral for project
upto Rs.1.00 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.
10. Rate of interest & repayment: Normal rate of interest shall be charged. Repayment
schedule may range between 3 to 7 years after an initial moratorium as may be
prescribed.
11. Reservation: 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, 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.300/-.
Training expenditure: Rs.700/-. Per beneficiary
ii) For service & business sector:
Duration: 7-10 working days.
Stipend: Rs.150/- Per beneficiary

Training expenditure: Rs.350/-.

13. Implementing Agency: The District Industry Centres and Directorate of Industries
are mainly responsible for implementation of the Scheme along with the banks.
14. Implementation :
The district being well established geographical unit for many programmes the
coordinated implementation of the programme is undertaken at the district level.
The educated unemployed youth are expected to apply to the District Industries
Centre/Directorate of Industries/O/o the Dy. Commissioner of their districts.
Preliminary screening is done by a District Level Task Force Committee/Block
Level Task Force Committee/Mandal Level Task Force Committee.
At district level, Task Force comprises of a Chairman who is a senior officer of the
implementing agency preferably head of the agency e.g. General Manager of
District Industries Centre, Director, in case of SISI, Addl. Director of Industries in
case of Directorate of Industries, or Dy. Commissioner of the District. Other
members of the Task Force are representatives of 1. Lead bank. 2. Two leading
Banks. 3. District Employment Officer. 4. One member each from DIC/SISI
(Other than the implementing agency). 5. One officer as a member secretary to be
nominated by the chairman of the Task Force. 6. Chairman may co-opt one or
more members from reputed non-governmental organisations.
To ensure that the welfare of the women is taken care of, State and UTs have been
instructed to invite one woman associated with the welfare of women in the
meeting of the District Task Force Committee.
Besides, the lead bank and the leading banks, other implementing banks should be
invited to attend the District Task Force Committee meetings on rotational basis.
Implementation of the scheme involves identification of beneficiary, Selection of

specific avocations, identification of the support system required by the

beneficiary,- escort service and close liaison with the banks and other local
agencies concerned with industry, trade and service sectors. The Task Force is
responsible for (i) motivating and selecting the entrepreneurs, (ii) identifying and
preparing schemes in industry, service and business sectors, (iii) determining the
avocations/ activities (iv) recommending loan (v) getting speedy clearance, as
necessary from the authorities concerned.
15. Monitoring :
The Scheme is being monitored at district level by District PMRY Committee, at
State / UT level by State/UT PMRY Committee and at Central level by High
Powered Committee under the Chairmanship of Secy. (SSI & ARI).
16. Involvement of Non-Governmental Organisations :
State/UT Governments may involve reputed Non-Governmental Organisations,
Chambers of Commerce and Industry, Trade and Industry Associations etc., right
from the identification, motivation and selection of beneficiaries by nominating
them in the Task Force, preparation of project profiles. They can also help the
borrowers in proper management of the assets, marketing of the products,
repayment of loan installments etc. Training of beneficiaries is another area where
they can play a very useful role. State/UT Governments should work out the
methodologies to associate the reputed NGOs in a manner, which will bring the
scheme to the doorstep of the potential beneficiaries. Industry Associations should
also be requested to urge their members to adopt at least one unit and act as
mentor.

OPERATIONAL GUIDELINES
Immediately on receipt of targets from the Central Government, State/UT Governments
would convey district wise targets to each district. During the year 1993-94, it was
proposed to cover 40,000 beneficiaries under PMRY in urban areas only. Since 1994-95
the scheme has been continuing with annual plan target of 2.20 lakhs persons. The target
for 20054-05 has been enhanced to 2.50 lakh.
1. Basic Target are distributed by giving 50% weightage to population and 50%
weightage to the educated unemployed youth registered in the Employment Exchanges
of the State/UT. Additional targets are also allocated to States/Uts depending upon the
(a) past performance of the State/UT, (b) special need of the State/UT, (c) Assurance
to address to loan recovery, (c) other issue like furnishing of utilisation certificates etc.

2. The Task Force would invite applications in Prescribed Form from eligible persons
through advertisements in local newspapers. Bank branches have also been authorised
to receive applications directly under the scheme. Publicity would also be given by
display on Notice Boards in the Banks and BDO's offices. (Prescribed application form
is an indicative one and can be suitably modified if need be, in the District Level
Bankers Committee).
3. The applicant is required to submit application form duly filled along with an
Affidavit on plain paper.
4. These applications will be approved by the District Task Force Committee and would
be recommended to the concerned bank branches. The names of the beneficiaries
approved by the Task Force would be displayed on the Notice Board in the office of the

Chairman of the Task Force immediately after the meeting.

5. All the cases received by the Branch Managers after recommendation by the Task
Force Committee would be disposed of expeditiously.
6. The successful applicants are required to submit the Affidavit on the relevant
no judicial stamp paper (Value being determined as may be applicable to the concerned
state). The affidavit should be duly attested by a Notary and not by the Oath
Commissioner.
7. Training Institutions should be identified and modules for training should be kept ready
by the time the loan is sanctioned by banks.
8. As soon as the cases are sanctioned intimation will be sent to DICs etc. (i.e.
implementing agency) by the banks so that training activity can start.
9. In order to ensure that the desired results are achieved all activities should be completed
in a time bound manner and difficulties experienced should be sorted out in the
District PMRY Committee.
10. State/UT Governments may provide necessary infrastructure support like provision of
industrial sites, shops, water on preferential basis to these entrepreneurs. Provisions of
sites and sheds at concessional rate to service ventures in urban areas will be essential
for the success of service ventures. Many State/UT Govts. are providing various tax
concessions and incentives under their Industrial policy. Such concessions should also
be extended to the beneficiaries under the scheme.