The Prime Minister’s Rozgar Yojana scheme is sponsored by the center and it being implemented at the State Government level since 1993. The scheme aims at providing self employment to the educated youth of India, in areas of Service, Business, Industry, Agricultural and Allied activities. 

Up to Rs.1.00 lakh for Business ventures and up to 2.00 lakhs in the case of service and Industry. The loan to be composite nature. If two or more eligible persons join together in a partnership, the industrial project up to Rs.10.00 lakhs is covered. Assistance shall be limited to individual admissibility. Group concept is permissible upto 5 candidates.

Subsidy will be limited to 15% of the project cost subject to ceiling of Rs. 7,500/- per entrepreneur.  It will be kept in fixed deposit in the account of beneficiary for adjustment towards repayment of last installment of loan. 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.

The scheme envisages 22.5% reservation for SC/ST and 27% for Other Backward Classes (OBC). In case SC/ST/OBC candidates are not available, candidates from other categories i.e., minorities and women candidates may be considered.

There will be no collateral security for the PMRY loans up to Rs.1 lakh in the case of business ventures and up to Rs.2 lakhs in the case of service and industry. Regarding group activity, there will be no collateral security upto Rs.5 lakhs, for the industrial ventures under SSI/Tiny Sectors.

The District Industries Centres conduct awareness programmes in the districts for the educated unemployed youth, giving all the details of schemes/ventures under PMRY programmes.

The task force committee consisting of District Industries Centre and bank officials, etc., conducts interviews for selection of candidates and those selected are sponsored to concerned Banks for sanction and grounding. The selected candidates are given training for a period of  7 – 15 days in accounts and management subjects by APITCO, APPC, NISIET and other training institutions in the State and are paid stipend during this period.

The PMRY candidates are imparted training by Industrialists Associations to improve the grounding percentage of industrial units. This helps the Beneficiaries in acquiring the skills required for specific activities and also enables them in having exposure to the practical problems.

Small Scale Industries form a significant part of Andhra Pradesh’s economy. The sector contributes around 6 per cent of GSDP and employs close to 2.5 lakhs people. Moving along with the vision 2020 of the Government of Andhra Pradesh, PMRY promotes small industries which employ a minimum of 10-12 people. Andhra Pradesh will have many dynamic and profitable Small Scale industries. The proliferations of these industries will provide many opportunities for employment, leading to a significant rise in income.