EVALUATION OF PMRY

Two rounds of evaluation of the Prime Minister’s Rozgar Yojana (PMRY) have been conducted. Evaluation for both the rounds was conducted by the Institute of Applied Manpower Research (IAMR), New Delhi. The first round of the evaluation conducted in the year 1996-97 pertained to the programme years 1993-94 and 1994-95. It covered 48 districts, 3544 bank branches and 15,331 beneficiaries of 21 States/UTs. The second round of evaluation conducted in the year 2000-01 pertained to the programme years 1995-96,1996-97 and 1997-98. It covered 13 districts, 1303 bank branches and 16397 beneficiaries of 5 States viz. Andhra Pradesh, Assam, Manipur, Punjab and Rajasthan. The important findings of the evaluations are given below:

Important findings of the 1st Round:

i)  67% of beneficiaries belong to general category, 21% to OBCs, 8% to SCs & 5% to STs.  Proportion of women and minority are 11%

ii)  Sanction was 80% of target and 83% of sanctioned cases were disbursed.

iii) Average amount of loan sanctioned Rs.52,268 per beneficiary.

iv) Employment Generated 2.39 per unit.

v) Around 65% of the beneficiaries were making regular payment.

vi) The share of backward areas in total investment in units set-up and in employment generated is around 1/3 of total.

vii) Around 53% of beneficiaries faced problems due to insistence on "collateral security" by banks.

viii) 15002 units were set-up out of the 15098 cases disbursed (99.3% success rate).

Important findings of the 2nd Round:

i) 61.3% of beneficiaries belong to general category, 25.6% to OBCs, 11% to SCs & 2.1% to STs. Proportion of women is 14%.

ii) Sanction was 81.6% of target and 74.7% of sanctioned cases were disbursed.

iii) Average amount of loan disbursed is Rs.57,403/- per beneficiary.

iv) Employment Generated is 1.94 persons per functional unit.

v) The distribution of the beneficiaries in rural/urban areas are 49.9% & 50.1% respectively.

vi) Assets have been created in 89.7% of the cases disbursed.      

vii) About 36.4% of beneficiaries were repaying the loan installment on time.

viii) Willful defaulter have been found to be in 16% of the default cases.

FINDINGS OF THE 5TH FIELD STUDY ON PMRY CONDUCTED BY RBI

A sample field study on the performance of banks under PMRY was conducted by RBI during September 1997. The study covered more than 3000 borrowers financed by 294 bank branches spread over 59 districts through out the country. The findings of the study are furnished below:

i) During 1996-1997, applications sponsored were 150% of the target, sanctions more than 90% and disbursement was 70% of the target.

ii) 52% of the sanctioned cases were in the Business Sector, 18% in the Industry Sector and 30% in the Service Sector.

iii) Average size of the loan Rs.56, 000.

iv) Assets were created in 76.5% of the cases.

v) Average monthly income of the beneficiary was more than Rs. 2000 in 51% cases. 86% of the beneficiaries had monthly income of more than Rs.1000.

vi) Mis-utilisation of loan was in 8.6% of the cases. Recovery rate nearly 53%.

Findings of the 6th Field Study on PMRY conducted by RBI in January-April 2001.

A sample field study on the performance of banks under PMRY for the year 1997-98 and 1998-99 was conducted by RBI during January- April 2001. The study covered around 2500 borrowers financed by 202 bank branches spread over 66 districts through out the country. The findings of the study are furnished below:

i)    During the years 1997-98 and 1998-99 applications to the extent of 141% and 150% respectively of the target under PMRY, has been sponsored to the banks.

ii) Sufficient applications from SC/ST/OBC were not being sponsored leading to non-achievement of SC/ST targets in many States.

iii) The average level of sanction was 84.55% and 81.44% of the target and disbursement was at 64.28% and 61.30 % of the target for the programme years 1997-98 and 1998-99 respectively.

iv) The applications sponsored for Business Sector averaged at 50% of the cases sanctioned and only 16% of the sanction cases were for the Industry Sector.

v) The average size of loan disbursed was Rs. 49816 for the year 1997-98 and Rs.54319 during the years 1998-99.

vi) Assets are created in 90% of the cases and in 13% cases the loan amount was fully or partially misutilised.

vii) In 43% of the cases the average monthly income was more than Rs.2000/- and in 21.7% of the cases it was between Rs.1000 and Rs.2000. 

viii) The average recovery rate of the PMRY loan was 34.6% during the years of study. In the North Eastern States the rate of recovery was very low ranging from 2.93% to 32% during 1997-98 and 1.35% to 26% during 1998-99.

ix) The cases remain pending at branch level mainly due to the bunching of the applications and non-compliance of the requirements by the borrowers.  Non-viability of the projects and inability of the applicants to complete the formalities, have been identified as the main reasons for the rejection of the applications.

x) Non functioning of Sub-Divisional/Block level Committees in some States