short note on regp and aay
Answers
Indian Government has always been serious in providing enough employment opportunities to the rural unemployed labor force. It is established that the development of the rural India is crucially important for the overall development of the country. The Rural India being the most important population from where all the natural assistance and wealth is drawn towards the urban crowd has been neglected for years. It is the right of the rural population to enjoy adequate opportunities to earn their livelihood and live a decent standard of life. Rural employment generation programme was another major step by the government of India which was a great success story. Its main purpose was to alleviate poverty from rural areas by providing employment opportunities to rural people thus improving their livelihood. It succeeded in its objective of job creation by eliminating poverty in many backward areas of the country.
Evolution of the Rural Employment Generation Programme (REGP)
REGP came into vision on 1st April 1995. It was crucially recommended by the high power committee which was thereafter fully launched by the prime minister of India. With the main agenda of creating and flourishing two millions jobs in the rural areas of the country it was a good show. The target group consisted of the rural poor and unemployed in the town where the population count is not more than twenty thousand as per the 91 census. The legislation words include that any area termed as a village based on the earning of the state, irrespective of the population should be under the purview of this scheme. Many Industries were set up in rural backward areas where the fixed capital investment is not more than fifty thousand rupees and who use or do not use power for manufacturing are eligible for financial assistance under this scheme.
Main Objectives of the Programme
Ensure adequate employment in rural locations.Enhance entrepreneurial skills and wisdom among the unemployed youth of the rural locations.Ensuring that the target for the rural industrialization is achieved.Inviting Financial concerns to provide credits to rural industries.Features of the Scheme
The main purview of this scheme is the village industries set up in the backward and rural locations of the country. The main idea behind the entire effort and investment is to improve the condition of the industries in the rural area and also increase the count of the industries in such areas. This would in turn help in generating more and more jobs both skilled and unskilled for the rural population. The criterion for eligibility for funding under the scheme is quite simple. The applicant must be an Individual who is rural artisan or otherwise and concerns like cooperative societies, Trusts etc. and will be eligible for a project up to Twenty five lakh rupees. This scheme eliminates the entry of partnership firms, public or private limited companies joint ventures etc. Various ways of help like capital subsidy in the form of margin money up to 25% of the project cost till ten lakhs and balance project up to 10 percent of twenty five lakh. The idea is that the borrower would need to spend ten percent of the cost and rest ninety percent would be paid by the Government via banks assigned for this work.