Date:27/11/2008 URL: http://www.thehindu.com/2008/11/27/stories/2008112761760600.htm

Tamil Nadu - Tiruchi

Rs. 163.50 lakh allotted under PM’s Employment Generation Programme

Staff Reporter

Scheme provides for bank loans to start ventures involving Rs. 25 lakh investment

TIRUCHI: The Central government has allotted Rs. 163.50 lakh to Tiruchi district for disbursal as subsidy amounts under the new Prime Minister’s Employment Generation Programme (PMEGP) that has been formulated by merging Prime Minister’s Rozgar Yojana with Rural Employment Generation Programme.

The scheme provides for bank loans to start ventures involving investment up to Rs. 25 lakh for manufacturing activities and Rs. 10 lakh for service and business activities.

The subsidy would constitute 15 per cent of the project cost in urban areas and 25 per cent in rural areas.

The subsidy component would be enhanced by 10 per centage points for applicants in special category: SC/ST, OBC, Minorities, Ex-servicemen, and physically disabled.

Applicants in general category will have to bear 10 per cent of the project cost while the own investment is only five per cent for those in the special category.

The rest of the amount would be forwarded as bank loans.

The eligible applicants over the age of 18 years can be individuals, self-help groups, cooperative societies involved in marketing activities, registered associations, non-government organisations and trusts.

Applicants of projects costing above Rs. 10 lakh for manufacturing activity and five lakh rupees for service / business activity must have a minimum qualification of a pass in standard VIII.

The scheme will be implemented by the District Industries Centre in urban areas and by the Khadi Village Industries Commission and Khadi Village Industries Board in rural areas, according to a press release issued here today by the District Collector T. Soundiah.

Aspiring entrepreneurs can download applications from the website www.pmegp.in and submit the filled-in forms along with copies of the following documents and certificates, and particulars: project report, cost of infrastructure, rent details, document in case of own land, cost of the building, layout, community certificate (for men only), educational qualification, proof of residence, prior exposure to entrepreneurship training, and proof of birth.