New Delhi, Aug 14 : The Cabinet Committee on Economic Affairs here today approved Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas.

Prime Minister’s Employment Generation Programme (PMEGP) will be a central sector scheme.

Ministry of Micro, Small and Medium Enterprises (MSME) had proposed the introduction of a new credit linked subsidy programme called PMEGP by merging the two schemes that were in operation till 31.03.2008.

The subsidy levels, 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 in REGP.

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 project that could be established was Rs. 25 lakh under REGP for a beneficiary belonging to General category.

PMEGP improves upon the subsidy levels and cost limits of projects compared to those available so far under PMRY and REGP, while simultaneously strengthening the selection process, implementation and monitoring mechanism. Higher levels of subsidy have been proposed for beneficiaries belonging to marginalized sections of the society like Schedule Castes, Schedule Tribes, Other Backward Classes, Minorities, Women, Physically Handicapped, etc. to ensure inclusive growth. (ANI)