Tamil Nadu - Erode

‘Withdrawal’ of scheme worries industry

ERODE: Industry here is concerned over the withdrawal of the Pradhan Mantri Rozgar Yojna (PMRY) scheme.

Disbursement of funds under the scheme that helps unemployed youth turn entrepreneurs has been made only for projects that were approved earlier.

And, no new projects under the scheme have been sanctioned, industry sources say.

The scheme allows persons, including women, between 18 and 40 years to avail of a maximum loan of Rs. 5 lakh without any guarantee.

For loans availed of, the Government provides a subsidy of 12.5 per cent of the loan amount, subject to a maximum of Rs. 12,500.

The scheme has been in implementation since the early 1990s is a big draw in Erode.

Industry sources say banks not only meet their targets under PMRY but also surpass it, for so much is the response in the district that boasts of its entrepreneurship.

At present around 500 applications are pending under the scheme.

In the last 2007-08 Financial Year, banks in Erode district have disbursed 1,487 loans worth Rs. 12.33 crore.

Industry sources say the scheme was a ‘boon’ because banks had a target to meet under the scheme, which means that at least a certain number of loans have to be disbursed.

R. Mylsami, vice-president, Erode District Small Industries Association, points out that there have been success stories of persons who, having availed the PMRY, moved on to the next level to avail of industrial loans.

The vice-president wants the Government to re-introduce the scheme.

Banking sources say the Union Government has withdrawn the scheme to only reintroduce it in a new format.

They say that the PMRY and a KVIC schemes have been merged and that they expect an announcement in the near future.

Sources in the District Industries Centre too have confirmed the same.

They say that the new scheme has been named the Prime Minister’s Employment Generation Programme. No details, however, are available.

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