1.) Implementation of Pt. Deendayal Gramodyog Rozgar Yojana

With a view to solve the increasing unemployment problem in rural areas, discourage the migration of rural educated unemployed youth to urban areas, provide maximum employment opportunities within the villages, and to strengthen the financial and economic condition along with providing modern technology to the industries established under the 'One District One Product' (ODOP) scheme, the Pt. Deendayal Gramodyog Rozgar Yojana has been formulated to motivate individual entrepreneurs in the rural areas of the state. Under this scheme, interest subsidy facilities will be admissible to the units funded/established under the Prime Minister's Employment Generation Programme (PMEGP). This will cover all rural units sponsored by the three respective agencies: District Industries Centre (DIC), Khadi and Village Industries Commission (KVIC), and U.P. Khadi and Village Industries Board (UPKVIB). The Pt. Deendayal Gramodyog Rozgar Yojana will be implemented in the rural areas of all districts of Uttar Pradesh from the current financial year.

2.) Salient Features of the Scheme

• Pt. Deendayal Gramodyog Rozgar Yojana will prove to be instrumental in mitigating the rising unemployment in the districts of Uttar Pradesh.
• Under the said scheme, the units funded under the Prime Minister's Employment Generation Programme (PMEGP) will be provided with an interest subsidy facility (up to a maximum of 13 percent) on the residual loan amount after deducting the margin money subsidy and the entrepreneur's own contribution from the total project cost. This facility will be provided for three years from the date of the first disbursement of the loan.
• Due to high initial capital costs in the Prime Minister's Employment Generation Programme, units generally tend to become sick and fail to provide sustainable employment. This scheme will eliminate such possibilities, strengthen the units to be established in the future, and enhance employment prospects.
• All relevant processes under the scheme will be made online from the current financial year.

3.) Compulsory Eligibility Criteria for the Scheme

• Units will be eligible for interest subsidy under this scheme only after their loan applications submitted under the Prime Minister's Employment Generation Programme (PMEGP) in the state are sanctioned/disbursed.
• Interest subsidy will be payable on projects sanctioned during the current financial year.
• Any individual who has already availed benefits under an interest subsidy scheme of any beneficiary-oriented self-employment program run by the Government of India or the State Government will not be eligible for this scheme.

4.) Required Documents to Avail Interest Subsidy:

To claim the interest subsidy amount admissible to the unit under the said scheme, the financing bank shall provide the following documents:

• Forwarding letter from the sponsoring agency.
• Loan sanction letter of the unit issued by the financing bank.
• Updated bank statement of the unit's loan account.
• Documents related to the Term Deposit Receipt (TDR).
• Interest subsidy claim form in the prescribed format.
• Inspection report of the unit by the bank branch manager.
• Photograph of the entrepreneur at the enterprise work site.

5.) Procedure for Payment of Interest Subsidy

After receiving the margin money (subsidy) amount provided to the entrepreneur from the nodal bank under the Prime Minister's Employment Generation Programme, the bank will calculate the interest amount on the remaining loan balance after deducting the margin money amount and the beneficiary's contribution from the total project cost. The half-yearly interest subsidy claim will be submitted by the bank to the District Village Industries Officer. Subsequently, after verification of the interest subsidy claim by the auditor, the bill for the payable amount will be passed, and it will be sent to the treasury for direct transfer to the bank in favor of the beneficiary through NEFT/RTGS. The maximum limit of interest subsidy under the Pt. Deendayal Gramodyog Rozgar Yojana shall not exceed 13%. Under this scheme, the payment of the interest subsidy amount to the units will be made every six months, and the information regarding the payment will also be provided to the beneficiary and the bank within 7 days by the concerned District Village Industries Officer.

6.) Operational Procedure for the Scheme

Keeping in view the fixed targets, number of units, and capital investment specified for the rural areas of all districts of Uttar Pradesh under the Prime Minister's Employment Generation Programme operating in the state, the demand for interest subsidy at a maximum rate of 13% on the estimated loan amount [Project Cost - (Margin Money Subsidy + Entrepreneur's Contribution)] will be placed before the Government. The allocation of the budget received from the government under the scheme will be forwarded to the respective District Magistrates keeping in view the district targets. Under the said scheme, the Chief Development Officer (CDO) of the district will be the Drawing and Disbursing Officer (DDO).

The District Village Industries Officer will prepare the file based on all the documents received as per rules. After evaluation of the received claim form and field inspection of the unit, the District Village Industries Officer will ensure that the payment of the interest subsidy is made within 15 days via NEFT/RTGS, after getting the interest subsidy bills and other documents claimed by the bank (mentioned in point number 4) verified by the auditor.

7.) Circumstances Under Which Interest Subsidy Benefits Will Not Be Admissible

The benefit of interest subsidy will not be admissible to the units funded/established under the Prime Minister's Employment Generation Programme under the following circumstances:

• If the entrepreneur has misutilized the loan amount.
• If the entrepreneur has not completed the project work and is willfully defaulting.
• If the unit is not engaged in production/service operations or is closed.
• As an exception, if the industry is affected due to the death of the entrepreneur resulting from a natural calamity or an untimely accident, a decision will be taken as per rules by the Chief Executive Officer of the U.P. Khadi and Village Industries Board based on the recommendations of the committee (DLTFC) constituted under the chairmanship of the respective District Magistrate for the selection of beneficiaries under the Prime Minister's Employment Generation Programme.