The schemes entail an additional burden of about Rs 230 crore on the exchequer.

Under the Vajpayee Svarozgar Yojana, the Government will provide aid up to Rs 1 lakh to each of the 75,000 unemployed urban youths, while under the Nagar Vikas Yojana, it will provide aid to the 143 municipalities to help undertake developmental programmes.

The government has also decided to give awards to Gujarati jawans/officials, and agro-scientists and researchers for outstanding contributions.

After the Cabinet meeting, Chief Minister Keshubhai Patel told reporters that the government would provide 30 per cent subsidy to each of the 75,000 unemployed urban youth in the age group of 18-40, while the remaining aid would be provided as loan by people's co-operative banks.

For the beneficiaries, self-employment, particularly in the service sector, would be provided keeping in mind their educational qualifications and vocational aptitude. If necessary, those selected for the loan would be trained in the trade of their choice, Patel said.

Patel said that the government had also decided to fix the investment ceiling of Rs 1 lakh under the bankable scheme of the State cottage industries Department.

Principal Secretary to the Chief Minister P K Laheri said about 9.58 lakh unemployed youths were registered with the employment exchanges, with 60 per cent having educational qualification up to SSC. The number of unemployed youths being enrolled by the employment exchanges was increasing at the compound rate of 2.5 per cent every year.

Laheri said the total job potential was estimated at 33 to 35 lakh in the organised, unorganised and service sectors. The government would have to entail an additional burden of about Rs 120 crore by way of subsidy to be given to unemployed youths under the self-employment scheme, while the burden of Rs 110 crore was estimated towards the financial assistance to be extended to the 143 municipalities.

The Chief Minister said that under the Vajpayee Nagar Vikas Yojana, a maximum of Rs 1.10 crore assistance would be given to the A category municipalities, out of which 40 per cent of their project cost would be borne by the government and the remaining would be provided as loan by the HUDCO and other financial agencies. For the B and C category municipalities, 50 per cent of their project cost will be borne by the government and the rest will be provided as loan by the HUDCO. The government will stand guarantee to the HUDCO loan, Patel said.

The Chief Minister said the district urban development agency (DUDA), to be set up in all the 26 districts as a model agency, would implement developmental projects to be prepared by each municipality under this scheme.