Bihar Mukhyamantri Alpsankhyak Udyami Yojana

Scheme Introduction: A Brief Overview

The Industries Department, Government of Bihar has launched the Bihar Mukhyamantri Alpsankhyak Udyami Yojana to promote entrepreneurship and self-employment among minority youth by encouraging them to establish new industries and businesses in the state. The scheme specifically addresses a key challenge faced by minority youth - difficulty in obtaining bank loans due to lack of collateral security and margin money. To overcome this, eligible beneficiaries receive total financial assistance of up to ₹10 lakh per unit, comprising a 50% interest-free loan (maximum ₹5 lakh) and 50% outright subsidy (maximum ₹5 lakh), along with ₹25,000 per unit is seprately spent by the government for training and project monitoring.

The loan is repaid comfortably in 84 equal monthly instalments with a one-year moratorium period after the last instalment. Applicants can choose from 58 listed projects across three categories - covering a wide range of manufacturing and service sector businesses. It is important to note that this scheme is applicable only for manufacturing and service sector units; trading or purely commercial activities are not eligible.

The scheme became effective from 26 September 2023, following approval by the State Cabinet on 25 September 2023, with an initial budget allocation of ₹100 crore for FY 2023–24 at the time of launch. Annual targets and budget are revised every year by the Minority Welfare Department, Bihar Government - applicants are advised to check the official portal for the current year's application window.

The Bihar Government has launched several other welfare and self-employment schemes that may also be useful depending on your business type, profession, or personal eligibility. Applicants interested in agriculture, women empowerment, livestock, storage infrastructure, or education support can also explore schemes such as Bihar Mukhyamantri Niji Nalkup Yojana, Mukhyamantri Mahila Rozgar Yojana, Godam Nirman Yojana, Dudharu Pashu Bima Yojana, and Bihar Mukhyamantri Kanya Utthan Yojana. Checking these related schemes can help applicants identify additional financial assistance, subsidy, insurance, or employment opportunities offered by the Bihar Government.

Scheme Benefits

• Financial assistance up to ₹10 lakh per unit (exact amount depends on project chosen)
• 50% of project cost provided as subsidy/grant (maximum ₹5 lakh)
• Remaining 50% provided as interest-free loan (maximum ₹5 lakh)
• Loan repayment in 84 equal monthly instalments
• One-year moratorium period after last instalment before repayment begins
• Funds disbursed in multiple instalments linked to training and utilisation
• Additional ₹25,000 per unit for training and project monitoring through PMA committee
• Repayment done conveniently through online payment gateway on Udyami Portal
• Benefits under Bihar Industrial Investment Promotion Policy, 2016 also applicable

Listed Projects

Currently 58 projects are listed under the scheme across three categories. Projects have been selected based on rural area suitability, marketing potential, and product demand, with feedback from all General Managers of District Industries Centres across Bihar. Once a project is selected by the applicant at the time of application, it cannot be changed later, so applicants are advised to choose carefully.

Note: *Special Requirement: Applicants selecting Medical Diagnostic Centre, Banana Fibre Manufacturing, or Electric Vehicle Assembling Unit must upload proof of relevant training or work experience on the Udyami Portal at the time of application. This is mandatory for these three projects only.

Eligibility Requirements

• Applicant must be a resident of Bihar
• Applicant should belong to minority community
• Minimum educational qualification: 10+2 / Intermediate / ITI / Polytechnic / Diploma or equivalent
• Age should be between 18 to 50 years
• Unit must be established in applicant's home district only
• Caste certificate is mandatory
• Applicant can establish Proprietorship Firm, Partnership Firm, LLP or Pvt. Ltd. Company
• Minority women applicants may apply under this scheme; however they cannot apply under two government schemes simultaneously
• Applicants previously selected under any other government entrepreneurship scheme of the Industries Department are not eligible

Disqualification Criteria

The following applicants are not eligible to apply:

• Contractual or government employees with monthly salary above ₹15,000
• Those who have previously benefited from PMEGP, Mudra Loan, SIPB, Startup, or Industrial Innovation schemes related to the Industries Department
• Persons declared insolvent or mentally unsound by a competent court
• Applicant sentenced to imprisonment of 6 months or more by a competent court
• Elected representatives including MP, MLA, MLC, Mukhiya, Panchayat Samiti members, Pramukh, Sarpanch, Ward members of urban bodies, Nagar Parishad/Nagar Nigam members, and Zila Parishad Chairman/members
• PDS (Public Distribution System) dealers
• Applicants wishing to set up unit outside their home district
• Those intending to start a trading/commercial business (only manufacturing and service sector is eligible)

Selection Process

• Applications are received online through the Udyami Portal: https://udyami.bihar.gov.in
• Initial selection is done through computerised randomisation, district-wise, based on annual targets fixed for that financial year
• Initially selected applications are scrutinised at headquarters level
• Final selection is made based on verified documents submitted by eligible applicants
• Selection committee includes one representative nominated by the Minority Welfare Department
• The committee supervises implementation and monitoring and is empowered to make amendments for effective implementation
• Annual targets for minority beneficiaries are fixed each year by the Minority Welfare Department, Bihar Government - applicants are advised to check the official portal for the current year's target and application window

Fund Disbursement Process

Funds are released in three instalments, each linked to training completion and utilisation certificate submission.

First Instalment - After First Training

Finally selected beneficiaries undergo a 6-day training (2 chances given to attend; absent in both = candidature cancelled) After training completion, first instalment is credited to the unit's current account via RTGS/NEFT Utilisation of first instalment covers:

• Site preparation: up to ₹1.50 lakh
• Electricity connection + safety kit: ₹25,000
• Other expenses: ₹25,000
• Rent advance (if applicable): 6 months rent or maximum ₹50,000, whichever is lower

Note: Rent advance is not payable if premises is taken on rent from close relatives (parents/grandparents)

Second Instalment - After First Utilisation Certificate Approval

• Utilisation certificate of first instalment must be uploaded on the portal within 90 days of receiving funds
• Mandatory uploads: GST invoice with purchase receipts, machinery photograph, and workplace photo with GPS location
• Uploaded utilisation certificate is verified by the Regional Officer and forwarded with recommendation to the General Manager, District Industries Centre
• After approval at General Manager level, second instalment is credited to the unit's current account via RTGS/NEFT
• Beneficiaries attend another 6-day training before second instalment (2 chances given; absent in both = next instalment withheld)
• Early instalment tip: If a beneficiary has already spent 90% of the first instalment, the Regional Officer/General Manager can recommend release of the second instalment even before the 90-day deadline

Third Instalment - After Second Utilisation Certificate Approval

• Utilisation certificate of second instalment must be uploaded within 90 days
• 2 attempts are provided for uploading the utilisation certificate
• Uploaded certificate is verified by Regional Officer and forwarded to General Manager for approval After General Manager level approval, third and final instalment is released via RTGS/NEFT
• Early instalment tip: Similarly, if 90% of the second instalment is already spent, the next instalment can be recommended early

Additional Flexibility

• Beneficiaries may use up to 25% of the total machinery cost from their own funds to purchase upgraded or better machinery than listed in the model DPR
• Additional personal funds can be spent to buy machinery of higher capacity than specified in the model DPR

Payment Rules

All financial transactions under this scheme must strictly follow these rules:

• All payments above ₹10,000 must be made online only - via RTGS, NEFT, Cheque, DD, UPI, or Net Banking
• Cash payments above ₹10,000 are strictly not accepted under any circumstances
• Machinery purchases must be paid directly to the supplier's account through online mode only
• Only GST invoices are valid proof for machinery purchase
• Utilisation certificate must include GST bills, machinery photographs, and GPS-tagged workplace photographs

Loan Repayment and Recovery

• Repayment starts one year after receiving the last (third) instalment
• Loan amount (50% of project cost) is repaid in 84 equal monthly instalments
• Repayment is done through the online payment gateway available on the Udyami Portal
• Defaulters will be identified and appropriate legal action will be taken against them as per rules
• If a beneficiary misuses the funds or fails to establish the unit, recovery will be made under the PDR Act (Public
• Demands Recovery Act) as a lump sum
• Non-repayment or any financial irregularity will result in recovery as government land revenue (Bhoo-Rajaswa)

Financial Assistance Pattern

Required Documents

• Matriculation certificate (with date of birth mentioned)
• Intermediate or equivalent qualification certificate
• Caste / minority community certificate
• Permanent residence certificate
• Disability certificate (if applicable)
• Live photograph of applicant
• Applicant's signature
• Bank account details (for current account opening)
• Proof of training/work experience (mandatory only for Medical Diagnostic Centre, Banana Fibre Manufacturing, and
• Electric Vehicle Assembling Unit)

Steps to Apply

Applying for this scheme is a fully online process through the official Udyami Portal: https://udyami.bihar.gov.in. Here is a simple step-by-step guide:

• Step 1 - Visit the Official Portal
  • Go to the official website of Mukhyamantri Udyami Yojna this is the only official platform for this scheme. Everything from application to loan repayment happens here.
  • In new update section you will see the Bihar Mukhyamantri Alpsankhyak Udyami Yojana 2026 registration link you need to click on it and the registration page will open in your screen.
• Step 2 - Register and Fill Application
  • Register using your basic details and mobile number. Then fill in your personal, educational, and project details carefully. The most important decision here is choosing your project - once submitted, it cannot be changed, so choose wisely.
• Step 3 - Upload Documents and Submit
  • Upload all required documents clearly and accurately.
  • If you are applying for Medical Diagnostic Centre, Banana Fibre Manufacturing, or Electric Vehicle Assembling Unit, also upload proof of relevant training or work experience - this is mandatory for these three projects. Review everything carefully before final submission.
• Step 4 - Selection Process
  • Applications are shortlisted through computerised randomisation district-wise based on annual targets.
  • Shortlisted applications are then scrutinised at headquarters level and only those with complete and correct documents are finally selected.
• Step 5 - First Training and First Instalment
  • Finally selected applicants must attend a mandatory 6-day training.
  • You will get two chances to attend - missing both leads to cancellation. After training, the first instalment is credited to your unit's current account for site preparation, electricity connection, and initial setup expenses.
• Step 6 - Upload First Utilisation
  • Certificate Within 90 days of receiving the first instalment, upload your utilisation certificate on the portal along with GST invoices, machinery photographs, and GPS-tagged workplace photos.
  • Once approved, you will be called for the second training and second instalment.
• Step 7 - Second Training and Second Instalment
  • Attend the second 6-day training and receive the second instalment for machinery purchase.
  • Again two chances are given - missing both means the next instalment is withheld.
• Step 8 - Upload Second Utilisation Certificate and Receive Third Instalment
  • Upload the second utilisation certificate within 90 days.
  • After approval, the third and final instalment is credited to your account for remaining machinery and project completion.
• Step 9 - Loan Repayment
  • You get a full one year after the last instalment before repayment begins - giving you time to stabilise your business.
  • After that, repay the loan in 84 equal monthly instalments through the online payment gateway on the Udyami Portal. Always repay on time to avoid legal action.

Important: If you have spent 90% of any instalment before the 90-day deadline, you can request early release of the next instalment through the Regional Officer.

Important Points to Remember

• Only new industries/units are eligible - existing units are not covered
• Unit must be set up in the applicant's home district only
• Scheme covers manufacturing and service sector only - trading is not eligible
• Project once selected cannot be changed
• All payments above ₹10,000 must be online only - no cash accepted
• Utilisation certificate must be uploaded within 90 days of each instalment
• Missing both training sessions at any stage leads to cancellation of candidature or withholding of next instalment
• Annual targets are revised every year - check the official portal for current year's open application window

Relevant Links

• Official website of Bihar Mukhyamantri Udyami Yojana
• Bihar Mukhyamantri Udyami Yojana Updated Selection Process & Operational Guidelines
• Bihar Mukhyamantri Udyami Yojana Training Phase 1.pdf
• Bihar Mukhyamantri Udyami Yojana Training Phase 2.pdf
• Bihar Mukhyamantri Udyami Yojana Official FAQ Document

Contact Information

• Official Portal of Mukhyamantri Udyami Yojna: https://udyami.bihar.gov.in
• Address: Industries Department, Bihar Government Patna, Bihar
• Helpline Number: 0612-2233333
• For detailed information regarding application and implementation, applicants may contact their District Industries Centre (DIC) or the Industries Department offices