Question : CRITERIA FOR ALLOCATION OF FUNDS UNDER PMRY



(a): the criteria followed for allocation of funds under the PMRY and the guidelines laid down for the use of these funds;

(b): whether the Government has received complaints about the non-compliance of above guidelines;

(c): if so, the action taken in this regard and the outcome thereof;

(d): the amount of financial assistance allocated and released under the PMRY during the last three years, State-wise;

(e): whether some States have requested for allocation of more funds for PMRY particularly North-Eastern States; and

(f): if so, the steps taken by the Government in this regard?

Answer given by the minister

MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES ( SHRI MAHABIR PRASAD )

(a) to (f): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS(a)to(f) OF THE LOK SABHA STARRED QUESTION NO. 328 FOR ANSWER ON 18.08.2004.

(a): Under the Prime Minister`s Rozgar Yojana(PMRY), loans are provided to individual beneficiaries by the implementing banks against the overall target of beneficiaries allocated to each State/UTs by the Central Government. In addition, the Central Government provides funds for subsidy to the Reserve Bank of India(RBI) for release to the individual beneficiaries through implementing banks and funds for Entrepreneurial Development (Training & Contigency etc.) to State/UT Governments. The targetS are allocated on the basis of population and number of educated unemployed youth registered with the Employment Exchange in each State/UT. Performance of the State in the Scheme during the preceding year, recovery of loan overdues and the specific requests received from the State/UTs are also given due consideration. The guidelines for use of these funds are at Annexure-I.


(b): No, Sir. No such complaints have been received from State/UTs.

(c): Does not arise in view of (b) above.

(d): State-wise details of loans disbursed by banks and financial assistance provided to State/UT Governments by the Central Government for Entrepreneurial Development during the last three years is at Annexure-II. The assistance for subsidy from the Central Government is authorised to the Reserve Bank of India for passing on to the individual beneficiaries through the implementing banks. Hence, the State/UT wise details of assistance released for subsidy are not available. Funds amounting to Rs. 178.80 crore, Rs. 152.55 crore & Rs. 147.63 crore have been authorised to Reserve Bank of India for subsidy during the years 2001-02, 2002-03 & 2003-04, respectively.

(e)&(f): Requests have been received from some States/UTs including the North Eastern States of Assam, Meghalaya and Nagaland for enhancement of targets for the year 2004-05 under the PMRY. The targets for these States for the year 2004-05 have been revised as per their requests.

ANNEXURE - I

ANNEXURE REFERRED TO IN REPLY TO PART a) OF THE LOK SABHA STARRED QUESTION NO. 328 TO BE ANSWERED ON 18.08.2004.

GUIDELINES FOR USE OF FUNDS UNDER THE PMRY:

(1)	For advancing loans by the Implementing Banks:
(a) Industry/Service Sectors : Projects cost upto Rs.2.00 lakh. (b) Business Sector : Project cost upto Rs.1.00 lakh.
(Note: Banks loans constitute 80 per cent of the project cost; remaining 20 per cent is subsidy from the Central Government and margin money contribution from the beneficiary).

(2) Assistance from the Central Government:


(i) Funds for Subsidy:
The funds for subsidy are released @ 15% of the project cost subject to a ceiling of Rs. 7 ,500/- per beneficiary (Rs.15,000/- per beneficiary for NE States, Uttaranchal, Himachal Pradesh and Jammu & Kashmir).

The funds fOr subsidy are authorized to the Reserve Bank of India (RBI) and are not released directly to the State/UTs. These funds are passed on to the individual beneficiaries through the implementing banks. The RBI ensures utilization of these funds.

(ii) Funds for training & contingency:
Training funds: Beneficiaries sanctioned loans under the Scheme are required to undergo an Entrepreneurial Development Training for 15-20 working days for setting a project under industry sector and for 7-10 working days for setting a project in service and business sector.
The norms for releasing the financial assistance for Entrepreneurial Development Training is as under:
For industry sector:
Stipend : Rs.300/-. Training expenditure : Rs.700/-. Total : Rs.1,000
For service & business sector: Stipend : Rs.150/- Training expenditure : Rs.350/-. Total : Rs.500/-

(iii) Contingency funds:
The contingency funds are released @ Rs.250/- per beneficiary sanctioned loan. These funds are provided for operative expenses.
The funds for (Training, Contingency etc.) are released to State/UTs. State/UTs who are required to submit utilization of these funds. Surplus/deficit of the previous years is adjusted in the subsequent releases.

(iv) In addition, the funds are released to State/UTs for evaluation of the Scheme etc. in special circumstances.



Annexure-II

ANNEXURE REFERRED TO IN REPLY TO PART-(d) OF THE LOK SABHA STARRED QUESTION NO.328 FOR ANSWER ON 18.08.2004

STATE/UT WISE DETAILS OF LOANS DISBURSED BY BANKS AND ASSISTANCE FROM CENTRAL GOVERNMENT FOR ENTREPRENURIAL DEVELOPMENT TRAINING, CONTINGENCY ETC.) DURING 2001-02, 2002-03, AND 2003-04 UNDER THE PRIME MINISTER`S ROZGAR YOJANA (PMRY)

(Amount Rs. in Lakhs)
2001-2002 2002-2003 2003-2004
Name of States/UTs Amount of Assistance Amount of Assistance Amount of Assistartce loan disbursed from Central Loan disbursed from Central Loan disbursed from Central by banks # Government by banks # Government by banks # Government
NORTHERN REGION
Haryana 3944.42 19.73 4227.09 38.86 3406.77 68.99 Himachal Pradesh 1605.63 7.13 1504.99 16.96 1881.3 19.48 Jammu & Kashmir 754.21 4.29 17.15 2.49 556.73 13.16 Punjab 5209.82 103.23 4779.03 30.22 3479.24 78.18 Rajasthan 6886.93 0.00 6542.92 57.83 4562.11 106.01 Chandigarh 89.41 0.48 29.32 0.37 74.37 0.47 Delhi 482.06 0.00 453.90 0.00 486.29 0.00
NORTH EASTERN REGION
Assam 2818.12 42.85 3279.33 110.73 1125.99 58.97 Manipur 157.01 4.50 377.42 0.00 287.85 5.57 Meghalaya 501.53 13.56 197.54 1.86 217.65 7.10 Nagaland 41.53 2.99 138.36 6.84 19.6 1.00 Tripura 643.92 21.40 663.44 17.35 1363.62 18.23 Arunachal Pradesh 381.72 1.74 273.07 3.81 232.57 3.47 Mizoram 43.75 1.62 107.87 4.71 809 3.61 Sikkim 19.37 0.15 13.17 0.10 21.74 0.48
EASTERN REGION
Bihar 7273.89 0.00 6626.81 0.00 6408.17 101.54 Jharkhand 3126.11 45.00 3543.38 0.00 2824.67 0.00 Orissa 4001.49 75.50 4540.69 20.50 1033.52 91.34 West Bengal 1620.15 0.00 1627.77 0.00 1380.48 0.00 Andaman & Nicobar 111.56 1.06 110.23 0.59 100.39 1.06
CENTRAl REGION
Madhya Pradesh 10923.26 94.98 10422.02 120.21 5449.61 149.32 Chhattisgarh 1619.16 17.00 1886.82 0.00 1041.18 36.08 Uttar Pradesh 25412.31 368.92 25561.85 204.37 20709.94 402.53 Uttaranchal 2122.53 34.00 2885.50 0.00 3003.62 25.83

WESTERN REGION
Gujarat 4092.86 31.88 3720.83 666.94 2757.32 20.27 Maharashtra 10584.85 72.28 10425.46 29.15 7719.91 191.31 Daman & Diu 5.73 0.18 1.00 0.07 1 0.04 Goa 119.32 0.47 200.60 0.00 113 0.00 Dadra & Nagar Haveli 8.55 026 7.00 0.11 0 0.15
SOUTHERN REGION
Andhra Pradesh 6319.71 109.65 7934.49 63.92 5350.81 191.44 Karnataka 7159.16 121.27 6328.81 49.76 4222.01 148.93 Kerala 4791.85 117.72 5413.49 55.26 5368.39 112.21 Tamil Nadu 4654.12 106.70 4361.54 40.29 4082.63 147.94 Lakshadweep 15.67 0.11 7.07 0.08 9.11 0.12 Pondicherry 94.71 1.69 101.56 1.02 99.11 5.37 NOT SPECIFIED 844.03 - 826.10 - 700.27 -
ALL INDIA 118480.45 1422.36 119637.62 1544.38 90899.97 2010.20