The Centre has announced a new employment generation scheme to create over 37 lakh jobs. The new scheme will be merged with existing Prime Minister's Rozgar Yojana (PMRY) and the Rural Employment Generation Program (REGP). Finance Minister P Chidambaram told media person that the total cost of the new scheme which is to be implemented in next four-year period is Rs 4,485 crore.

 

Under the scheme whereas in rural areas, the subsidy levels will be 25 per cent in the general category; it will be 35 per cent in the special category. The Finance Minister said that the expected employment generation under the new scheme would be 37,37,500. More importantly, the subsidy levels for the scheme in urban areas will be 15 per cent in the general category and 25 per cent in the special.

 

Interestingly, ex-servicemen have been added in existing special category SC, ST, OBC, minorities. Informing about the scheme Chidambaram said that the Ministry of Micro, Small and Medium Enterprises will monitor the PMEGP, and accordingly, the maximum cost of a project admissible under the manufacturing sector will be Rs 25 lakh. He concluded that ceiling for the services sector will be Rs 10 lakh.