New scheme to generate 4 mn rural jobs in 5 yearsAugust 15th, 2008 - 1:01 pm ICT by IANS
New Delhi, Aug 15 (IANS) The government has approved a new employment generation programme with an outlay of Rs.47.35 billion to create around 4 million jobs during 2008-12. The Cabinet Committee on Economic Affairs (CCEA) meeting Thursday chaired by Prime Minister Manmohan Singh approved the scheme called Prime Minister’s Employment Generation Programme (PMEGP).
The government has created the new central sector scheme by merging Prime Minister’s Rozgar Yojana (PMRY) and the Rural Employment Generation Programme (REGP). The scheme will be implemented by the ministry of micro, small and medium enterprises.
“The new scheme is expected to generate around 3,738,000 (3.73 million) employment opportunities during four years of the scheme’s implementation,” Finance Minister P. Chidambaram told reporters here after the CCEA meeting.
Chidambram said that the estimated total outlay for subsidy under the PMEGP was Rs.44.85 billion in addition to Rs.2.5 billion earmarked for providing backward and forward linkages to micro enterprises in 2008-12.
He said that the maximum cost of a manufacturing sector project admissible under the scheme would be Rs.2.5 million while for services sector projects, the cost ceiling would be Rs.1 million.
Chidambaram said the budget estimate for the scheme in the current fiscal stood at Rs.8.23 billion, which included Rs.830 million towards backward and forward linkages, training, publicity and other things.
He said that the subsidy levels for the scheme in urban areas would be 15 percent and 25 percent for the general and special categories respectively.
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