New Delhi, Aug 14 (UNI) The Cabinet Committee on Economic Affairs today cleared a new credit linked subsidy programme called Prime Minister's Employment Generation Programme(PMEGP) by merging the two schemes--Prime Minister's Rozgar Yojana (PMRY) and Rural Employment Guarantee Yojana (REGY)-- that were in operation till March 31.
The subsidy level, the cost limit of projects or units that could be established under PMRY which was extended to rural areas as well in 1994-95, were quite low and unattractive compared to those available to the beneficiaries of REGY.
While the maximum subsidy admissible was Rs 12500 and the maximum cost of project that could be established was Rs 5 lakh under PMRY, the maximum subsidy that was admissible was Rs 4 lakh and the maximum cost of projects that could be established was Rs 25 lakh under REGY for a beneficiary belonging to general category.
Recovery rates of loans under PMRY were also considerably less than those under REGY.
PMEGP improves upon the subsidy levels and cost limits of projects compared to those available so far under PMRY and ensures that the attractiveness of REGY is not diluted in any way while simultaneously strengthening the selection process, implementation and monitoring mechanism, Finance Minister P Chidambaram told mediapersons after the CCEA meeting.
UNI NAZ RP DS1446