Bankers, MP govt disagree over PMRY

The industry and employment department of the Madhya Pradesh government is strongly resisting an attempt by the bankers to introduce more employment proposals to the Prime Minister Rojgar Yojana (PMRY).

The bankers' committee has also recommended initiating a probe into the "misutilisation of funds".

A sub-committee has recommended: "Sector-wise allocation should be made to promote the industrial and services sectors. The industrial proposals should constitute at least 45 per cent of the total proposals (under the Prime Minister Rojgar Yojana) and the services sector should constitute a minimum of 30 per cent."

Contesting the recommendation, OP Rawat, principal secretary, department of employment and industries, said: "For the industrial sector the limit cannot be raised immediately from 45 per cent in the present circumstances. But we can raise it up by 5 percentage points in a phased manner."

The department of industries sponsors employment loan proposals (under PMRY) of various employment opportunities in various sectors through its district industry center to bankers.

On the basis of these recommendations, the bankers grant loans for self-employment up to Rs 1 lakh. However, in a recently held state-level meet, bankers' said that most of the cases are only recommended for kirana shop as a result of which the recovery rate was low.