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Panchayat Rural Industries Employment Scheme

Panchayat Rural Industries Employment Scheme

Panchayat Rural Industries Employment Scheme

The Government of Uttar Pradesh has introduced the Panchayat Rural Industries Employment Scheme to create self-employment opportunities in the rural areas of the State. As part of this scheme, the Government provides financial assistance for rural entrepreneurs to start a new business.  Uttar Pradesh Government has implemented this scheme in consultation with Uttar Pradesh Khadi and Village Industries Board (KVIB) and Directorate of Micro and Rural Industries. In this article, we will look at the Panchayat Rural Industries Employment Scheme in detail.

Purpose of the Scheme

The use of implementation of the Panchayat Rural Industries Employment Scheme is listed as follows:

  • To solve the growing unemployment in rural areas of Uttar Pradesh
  • To discourage the migration of rural educators to the cities
  • To provide maximum employment opportunities in the village
  • To provide and support self-employment in the state
  • To empower rural youth of Uttar Pradesh
  • To provide entrepreneur development training

Features of the Scheme

Under the Panchayat Rural Industries Employment Scheme, the project cost of up to twenty-five lakhs will be provided to the entrepreneur to start new enterprises in the rural or urban area of Uttar Pradesh

  • As part of this scheme, the benefit of capital grants will be payable to the newly established units.
  • The entrepreneur will have to provide 5 per cent of the project cost as his own contribution.
  • At least 2 persons will have to get employment on investment of Rs 1.00 lakh
  • Under this scheme, 7 days Entrepreneurship Training will be provided by the Departmental Board of Village Industries Training Centers.

Note: The training will be given to the beneficiaries whose loan is accepted by the bank.

Eligibility Criteria

The eligibility criteria to obtain the loan under the Panchayat Rural Industries Employment Scheme is given here:

  • The applicant should have passed high school (SSLC) to avail the loan above Rs.15 lakhs.
  • The beneficiary age should be 18 to 50 years for availing the project cost under this scheme

Eligible Projects

All those industry and service activities which are identified by Khadi and Village industry Commission, Mumbai are eligible for financial assistance under the Panchayat Rural Industries Employment Scheme

Credit Limit

Under the Panchayat Rural Industries Employment Scheme, all the eligible entrepreneurs will get a loan of Rs. 25.00 lakhs through loans from banks (except private and cooperative banks). 5 per cent of the project cost will be borne by the entrepreneurs themselves.

Selection of Beneficiaries

The beneficiaries for the Panchayat Rural Industries Employment Scheme will be selected by the following selection committee.

Sl.No   

Selection Committee

1District Magistrates or nominated representatives by them Director
2Regional Village Industries Officer, Uttar Pradesh Khadi and Village Industries BoardVice president
3District Lead Manager (LDM)Member
4Deputy Commissioner – District Industry CenterMember
5District village industries officer Convener/secretaryConvener/secretary

Documents Required

The following documents need to be provided for getting a loan under the Panchayat Rural Industries Employment Scheme:

  • Application form on the prescribed format
  • Copy of Aadhar card
  • Educational qualification certificate
  • Certificate of training for trained beneficiaries
  • Proposed project outline
  • Worksite records
  • Worksite photograph

Application Process

The application for Panchayat Rural Industries Employment Scheme will be published in local newspapers by District Village Industry officer.

The entrepreneur can download the application form here:

ApplicationForm1
  • The District Village industry Officer will arrange an interview for the selection of eligible entrepreneur.
  • District Village Industry Officer will forward the application form of the beneficiary selected by the district task force (DLTFC) to the bank within 15 days.
  • The concerned bank will provide information regarding the application sanction to District Village industry Officer and the entrepreneur.
  • After completion of formalities of sanctioned loan, the bank will disburse the loan and inform district Village Industry Officer.

Payment of Capital Subsidy

After the release of the first instalment of loan sanctioned by the bank, the lender will issue the capital grant in a claim form to the District Village Industries Officer as per the rules.

If the District Village Industries Officer is found all entries are suitable after verifying the claim form, then the payment of capital subsidy in favour of the entrepreneur through the NEFT / RTGS from the Treasury will be made to the concerned lending bank.

The Final Release of Subsidy

After three years of publication of the first instalment of the loan, the grant will be adjusted on the fulfilment of the following conditions.

  • If the entrepreneur has properly utilised the grant.
  • The entrepreneur has set up the project as per sanction.
  • If the unit is engaged in production or service work.

After joint inspection of the site by District Village Industry Officer and the bank that above conditions are fulfilled after completion of three years from the date of reimbursement of the first instalment, amount of grant will be adjusted.

Training for Entrepreneur

As stated above, the District Village Industry Officer will provide the list of the beneficiary who will receive the entrepreneurship training after the loan is sanctioned. Khadi and Village Industry Board will provide 7 days of entrepreneur training.

Note: If the unit deliberately miss- utilize the loan amount under the Panchayat Rural Industries Employment Scheme or the unit is not set up as per the project and run for 3 years, the bank will not adjust the capital grant, and the amount will be refunded to Khadi and Village Industry Board.

In case you require any assistance for set-up your new unit, get in touch with IndiaFilings.com

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