The ever-growing population of India had always been a point of concern for the government. The growing population poses many problems because the resources available are limited. In addition to this, one major problem that India has always faced is unemployment. The unemployment rate had been stable for the last few years but it is still high. In addition to this, India is still a developing nation hence there is no provision for the unemployment allowance as well.
Prior to 2008, there were two different employment generation program running on a national level. One was for the rural population and the other one was for the urban population but in 2008, the prime minister of India decided to integrate these to programs so as to provide equal opportunities to all the people. In this article, we are going to talk about Prime Minister Employment Generation Program and here are all the details associated with the program.
What is the Prime Minister Employment Generation Program?
The best way to generate employment is to encourage people to start their business. This has a dual impact as it offers self-employment to the person who is starting a business and in addition to this, it also offers employment to the people whom the business employs. So under the scheme, the government started offering loan to the people who are willing to start their own venture. The loan would serve the purpose of providing the funds to the business which would result in the successful inception of the business.
How Prime Minister Employment Generation Program work?
The applicant willing to start a business can apply for the loan and the government will offer loan at a relatively lower interest to help the person in many ways. In addition to this, it should be noted that the loan is capped at Rs 1 Lakh for the general area whereas the capping of hilly and difficult terrain is set at Rs 1.5 Lakhs. This is the loan limit for the business but the limit differs for manufacturing and service sector.
For the manufacturing sector, the government is ready to offer a loan of up to Rs 2 Lakhs and for the service industry, the limit set by the government is Rs 10 Lakhs.
Eligibility Criteria for Employment Generation Program
The eligibility criteria for the scheme is mentioned below
- The age of the applicant should be at least 18 years and he should be an Indian citizen.
- The applicant should have completed his studies till 8th class to be eligible for the scheme.
- The loan will only be offered to the people who are planning to start a new business. The loan will not be offered to the entities which already exists.
- Some of the sectors are not eligible for the benefits and this sector includes the production of meat, polythene bags and intoxicated products.
How to apply for the Employment Generation Program
The application procedure for the scheme is made available online and here is how you can apply for the scheme.
- You need to visit the KVIC portal to apply for the scheme and you can click here to be redirected to the portal.
- You would then need to fill up all the details including the details of the Aadhaar number and PAN Number.
- In addition to this, you would need to enter the details of the project along with your mobile number. After filling in all the details, you can simply go ahead and submit the application
Benefits of Prime Minister Employment Generation Program?
Some of the benefits of the scheme are mentioned below
- The scheme proves to be an effective program to counter unemployment and the scheme has helped people in generating lakhs of jobs until now.
- The scheme also helps the people as they are able to provide them with a mean of income and in addition to this, the funding is also available at a lower rate which is certainly another benefit.
- The government is also able to collect the tax on the income which again comes back to people in form of development.
Who will back the plan?
The plan is being backed by the central government and the state government
Details of the scheme
Scheme Name – Prime Minister Employment Generation Program
Budget For scheme – NA
Scheme Launched by – Dr. Manmohan Singh
Is this the way forward for the nation?
The government should certainly launch more such schemes to reduce the unemployment rate and the government is doing well in such metrics now. In addition to this, such schemes are really required to deal with the problems like unemployment and to control the problem at initial phase itself.