Civil Lines Wardha

Schemes of District Industries Centre

PRIME MINISTER�S ROZGAR YOJANA ( PMRY ) : DownLoad Form

The Prime Minister�s Rozgar Yojana was launched on October 2, 1993 by Govt. of India with a view to generate gainful mass employment opportunities through micro enterprises in industry, service and business sectors. The scheme basically aims at providing self-employment to educated unemployed youth. The scheme is implemented in the entire State.

Who can apply?
Any educated unemployed or a group of educated unemployed can apply for financial assistance under the Scheme.

Eligibility criteria for applicant(s):
(1) The applicant should be unemployed person or not gainfully employed (with reference to income criteria);
(2) Age between 18 to 35 years; (age limit is relaxed up to 10 years in respect of women, SC/ST, ex-servicemen, physically handicapped.)
(3) Educational Qualification :
a) The applicant(s) should have passed 8th standard of School education, or
b) successfully completed the ITI course, or
c) undergone a government recognised technical course of a duration not less than six months.
(4) Applicant should be permanent resident of the District for at least last three years,
(5) Family income of the applicant and of his/her parents should not exceed Rs. 1,00,000 per annum .

Implementing agency:
The District Level Task Force constituted by Govt. of India under the chairmanship of General Manager, District Industries Centre implements the scheme. The other members of the Task Force comprise of representatives of banks, and Government Departments and agencies engaged in employment promotion. The necessary support services are provided by District Industries Centre to the District Level Task Force.

The applicants have to file their applications, in prescribed Application Form along with the accompaniments listed therein, to the Distict Industries Centre, near District Court, Civil Lines, Wardha . ** The application form is free of cost.

Procedure:
The applications received by the concerned office are scrutinised to check the eligibility of applicants. The District Task Force identifies the lists of prospective activities and the low priority activities on the basis of its past experience. Similarly, the general pattern of assistance for a particular activity and for a particular location is fixed by the Task Force. The applications are scrutinised with reference to the above and are placed before the Task Force. The Task Force is expected to meet every fortnight or even early in view of the inflow of applications.

Time limit of one week is fixed for dispatching the applications to banks after the decision of the Task Force.

Pattern of Assistance:
An individual can avail of loan for a project up to Rs.2 lakhs for business and Service activity, upto Rs. 5.00 lakhs for Industry activity. In case, more than one eligible applicant come together and form a group to avail loan under the scheme, the admissible project cost will be in multiple of the number of applicants and the ceiling limit for the respective sector, subject to a max. of Rs. 10 lakhs. The contribution of applicant(s) is mutually decided by applicant(s) and bank, which ranges from 5 % to 16.25 % of the project cost as margin money. The balance is sanctioned as a composite loan by a nationalized bank.

Only the Nationalised Banks are permitted to finance under the Scheme.

Subsidy administration:
Government of India provides subsidy @ 15 % of the project cost to the financing bank, subject to a ceiling of Rs. 12,500/-. The subsidy amount is kept in term deposit in the name of the loanee(s) for the period equivalent to the period of repayment of the loan. The subsidy amount with the accrued interest is adjusted against the last instalment of the loan.

The subsidy benefit is available to the beneficiaries only after successful repayment of loan.

Training :
After sanction of PMRY proposal by bank applicant has to undergo a training conducted by District Industries Centre . Loan is disbursed by bank after submission of proof of successful completion of training.

** Blank application forms can also be obtained from or completed application forms can be handed over to the Industries Inspector of District Industries Centre who are present at Panchayat Samiti office of respective Talukas for one day in a week .Detail Panchayat samitiwise days are given below :

Seed Money Scheme (RSMS): DownLoad form

Originally the Scheme was launched by Govt. of India in 1976-77 under the Employment Promotion Programme. The Scheme was subsequently transferred to the State as State Plan Scheme. The Regional Development Corporations and District Industries Centres were jointly implementing the Scheme. Identification of prospective beneficiaries and sponsoring their applications was the responsibility of District Industries Centres. The Regional Development Corporations were responsible for disbursement and recovery of seed money loans. The Scheme was transferred to the State Plan after formation of District Industries Centres in 1978. Subsequently, the Scheme was rationalised in 1993 to extend coverage to a large number of educated unemployed youths who were not hitherto eligible under the Scheme, despite proliferation of various self employment schemes in the meantime.

The objective of the scheme is to encourage educated unemployed youth to take up self-employment venture through industry, service and business, by providing soft loan (seed money) to meet a part of his margin money required to avail of institutional finance. The Scheme is implemented in the entire State.

Who can apply?
Any educated unemployed or a group of educated unemployed can apply for financial assistance to start self employment venture under the Scheme.
Eligibility criteria for applicant(s):

1. The applicant should be unemployed person or not gainfully employed (with reference to income criteria)
OR
if the applicant(s) or any one of the applicants is employed; he/they will have to resign from the job prior to disbursement of the seed money loan. The applicant should give promissory letter while making the loan application to the effect that he will resign from the job before disbursement of the loan.
2. Age Group : 18 to 50 years
3. Educational Qualification :
a. The applicant(s) should have passed 7th standard of School education,
b. Educational qualification criteria can be relaxed by the implementing authority in cases where applicants have special skills or work experience and for those applicants from SC / ST category
Applicant should be a local person i.e. the applicant should have continuous stay of 15 years in Maharashtra prior to making application.
Implementing authority:
1. The General Manager, District Industries Centre ,Wardha .
The applicants have to file their applications, in prescribed Application Form (in duplicate) along with the accompaniments listed therein, to the District Industries Centre. The application form is free of cost and is available at the above offices.
Processing of applications:
The applications received by the implementing authority are scrutinized to check the eligibility of applicants and the projects are appraised in the light of low priority activities listed on the basis of the past experience. Time limit of ten days is fixed for dispatching the applications to banks after the decision of General Manager, District Industries Centre.
The banks communicate sanction of loan to the implementing authorities with a permission to the implementing authorities to create second charge on the assets created out of the loan. Accordingly, the applicants have to execute second hypothecation deed. The seed money is sanctioned and disbursed, subject to availability of budget provision, in one month after completion of the above formalities.
Pattern of assistance:
The projects upto Rs.25,00,000/- inclusive of fixed capital investment and margin money for working capital are eligible under the Scheme. The soft loan (Seed Money) is charged a simple rate of interest at 6 % per annum. Seed Money assistance is offered at 15% of the project cost approved by financial institutions.
In case of projects costing up to Rs. 10 lakhs, the quantum of assistance is as follows:
a) The quantum of seed money is at the rate of 20% of the project cost approved by financial institutions if the applicant(s) is/are handicapped or from SC , ST, VJNT or Other Backward Class .
b) 15 % for General category candidates.
The period of repayment of seed money loan is 7 years with an initial moratorium of three years. However, the moratorium period is only Six months in case of loans for transport operators. First installment will be only of interest due upto that date.In case of regular repayment of loan 3% rebate is given on interest.
1% penal interest will be charged on overdue amount.

DIC Loan Scheme

Implementing Authority : General Manager, District Industries Centre.

Objectives : The scheme is to provide financial assistance in the form of margin/seed money for the promotion of small and tiny industries and also service industries in semi-urban and rural areas with a view to generate employment opportunities including self employment.

Eligibility : All towns and rural areas having population of less than 1 lac as per 1981 census are covered under the Scheme. Margin money assistance is admissible only to those units whose investment in plant & machinery does not exceed Rs. 2 lacs. All units falling within the preview of the Small Scale Industries Board and Village Industries, handicrafts, handlooms, Silk & Coir Industries are covered under the Scheme.

Pattern of assistance: The extent of assistance is 20 % of the total investment or Rs. 40000/- whichever is less in case of entrepreneur belonging to general category and in case of entrepreneur belonging to scheduled caste & scheduled tribe, assistance upto 30 % of total fixed capital investment or upto maximum of Rs. 60000/- whichever is less is provided.

Repayment Period : The period of repayment of seed money loan is 7 years with an initial moratorium of one year.

Rate of Interest : Rate of interest on this loan is 4 % ( 1% penal interest is charged on overdue amount.)