Department of Industries has exceeded the target in terms of number of beneficiaries in 2012-13 and sanctioning of subsidy under the Unemployed Youth Employment Generation Programme (UYEGP) in Tiruchi district. Against the targeted 175 beneficiaries, the department has identified 235 beneficiaries. Sanction of subsidy has correspondingly increased from the targeted Rs. 52.5 lakh to nearly Rs. 55 lakh. Disbursal of subsidy to the tune of Rs. 48.3 lakh to 203 beneficiaries is over and the rest will be completed shortly, official sources said, adding that there were about 500 applications under the scheme.
In 2011-12, the department could identify 189 beneficiaries and disbursed Rs. 39.40 lakh as subsidy, despite the impediment caused by conduct of by-elections and election to the local bodies.
Under the UYEGP, which was introduced by Tamil Nadu a few years ago due to the inadequate funding under the newly-launched Prime Minister’s Employment Generation Programme (PMEGP), the State sought to maintain the already existing reach of the entrepreneurship promotion initiatives.
Replacement of the Prime Minister’s Rozgar Yojana and Rural Employment Generation Programme with PMEGP turned detrimental to the States. For instance, in Tiruchi district, several hundreds of beneficiaries used to be covered every year under PMRY. But after PMEGP was introduced, the department has not been able to find more than 40 beneficiaries over the last three years put together.
Under UGEGP, funding up to Rs. 1 lakh is provided for starting businesses, Rs. 3 lakh for service-related activity, and a maximum of Rs. 5 lakh is given for starting manufacturing unit. Beneficiaries identified for service-related activities measure up to around 40 per cent and the rest constitute entrepreneurs in manufacturing area. The performance of the beneficiaries so far have not been that impressive since not many had stabilised their businesses to be in a position to repay the loans, but the positive aspect was that all were still trying to improve their performance, the sources said, adding that funding was, however, not a problem since bankers had no hesitancy to forward loans under the UYEGP scheme that has been brought under the Credit Guarantee Fund Trust Scheme for Micro and Small Enterprises. For the coming year, too, the number of beneficiaries under the UYEGP will be the same as in 2012-13, sources added.
Against the targeted 175 beneficiaries, the department has identified 235 beneficiaries Sanction of subsidy has shot up from the targeted Rs. 52.5 lakh to nearly Rs. 55 lakh
Against the targeted 175 beneficiaries, the department has identified 235 beneficiaries
Sanction of subsidy has shot up from the targeted Rs. 52.5 lakh to nearly Rs. 55 lakh