New Delhi: The government proposes to launch the "Prime Minister's Employment Generation Programme" with an allocation of Rs 823 crore in the current fiscal to promote agro and rural industries.

The new scheme would be formulated by the merger of Rural Employment Generation Programme (REGP) and Prime Minister's Rozgar Yojana (PMRY), Minister for Micro, Small and Medium Entreprises Mahabir Prasad said in a written reply to the Lok Sabha.

The proposed allocation for the scheme is Rs 823 crore for 2008-09, which will generate an estimated six lakh jobs through one lakh self-employment units, he said.

The government has also modified, from 2007-08,the subsidy component under PMRY from Rs 7,500 to Rs 12,500 per entrepreneur.

In reply to another question, Prasad said the Credit Linked Capital Subsidy Scheme for technology upgradation of MSME units would be continued through the 11th plan period.
Source : PTI