Bihar Mukhyamantri Ati Pichhda Varg Udyami Yojana

Scheme Introduction: A Brief Overview

The Bihar Government, through the Industries Department, operates the Mukhyamantri Ati Pichhda Varg Udyami Yojana with the objective of connecting people belonging to the Extremely Backward Class with self-employment and entrepreneurship opportunities. The scheme is a component of the Mukhyamantri Udyami Yojana (MMUY), which was implemented in 2020. The main objective of the Mukhyamantri Ati Pichhda Varg Udyami Yojana is to provide self-employment opportunities to young men and women, promote entrepreneurship, and provide the financial assistance required to establish their own business units. The scheme is being implemented by the Bihar Startup Fund Trust.

Under the Bihar Mukhyamantri Ati Pichhda Varg Udyami Yojana, eligible beneficiaries can receive project assistance of up to ₹10 lakh for establishing and operating a business unit. Of the total project cost, 50%, up to a maximum of ₹5 lakh, is provided as a grant/subsidy, while the remaining 50%, up to a maximum of ₹5 lakh, is provided as an interest-free loan. Under the Extremely Backward Class component, no interest is charged on the loan. The provision of 1% annual interest applies only to the Mukhyamantri Yuva Udyami Yojana. However, it is important to understand that every selected beneficiary does not necessarily receive ₹10 lakh. The approved assistance is determined according to the project cost and departmental guidelines.

The department has also prescribed eligibility conditions for the scheme. The applicant must be a permanent resident of Bihar, must be between 18 and 50 years of age, and must have completed at least 10+2/Intermediate, ITI, Polytechnic Diploma, or an equivalent qualification. Under this component of the Mukhyamantri Ati Pichhda Varg Udyami Yojana, male and female applicants belonging to the Extremely Backward Class (BC-01) category are eligible. In addition, the applicant is required to establish the project in the same district of which they are a permanent resident. If the unit is established in a district other than the applicant's permanent residence district, the application may be cancelled.

The selection process under the Ati Pichhda Varg Udyami Yojana is carried out according to prescribed rules. Applications are initially selected through computerized randomization according to the district-wise targets. The selected applications are then scrutinized at the headquarters level, and final selection is made on the basis of the required documents and prescribed eligibility criteria. For finally selected beneficiaries, the scheme provides for two phases of six-day training each and payment of financial assistance in three instalments. The instalments are transferred through RTGS/NEFT to the current account opened in the name of the business unit.

Beneficiaries are also provided a prescribed repayment period for the loan. The loan amount has to be repaid in 84 instalments starting 12 months after receipt of the final instalment. The online payment facility available on the Udyami portal is used for loan repayment. In addition, a Utilization Certificate (UC) must be uploaded on the portal within 90 days to provide details of the utilization of each instalment. The utilization of instalments, training, and release of subsequent instalments are carried out according to departmental guidelines.

Benefits of the Scheme

The most important feature of this scheme is that a portion of the project assistance is provided as a grant, while the remaining amount is made available as an interest-free loan. The major benefits are as follows:

• Maximum Financial Assistance: Provision of assistance of up to ₹10 lakh for an eligible project.
• Grant/Subsidy: 50% of the total project cost, up to ₹5 lakh, is provided as a grant/subsidy. This amount does not have to be repaid.
• Interest-Free Loan: The remaining 50% of the total project cost, up to ₹5 lakh, is provided as an interest-free loan.
• Training: Selected beneficiaries receive training in two phases of six days each.
• Training and Monitoring Provision: An expenditure provision of ₹25,000 per unit is made towards beneficiary training and assistance to the Project Monitoring Committee.
• Direct Bank Payment: The approved amount is transferred through RTGS/NEFT to the current account opened in the name of the business unit.
• Loan Repayment Facility: The loan amount is repaid online in 84 instalments, beginning 12 months after receipt of the final instalment.

Eligibility

Before applying for the Bihar Mukhyamantri Ati Pichhda Varg Udyami Yojana, applicants should check the eligibility conditions prescribed by the department. The main eligibility requirements are:

• The applicant must be a permanent resident of Bihar.
• The applicant must have passed at least 10+2/Intermediate, ITI, Polytechnic Diploma, or an equivalent qualification.
• The applicant must be between 18 and 50 years of age.
• Male and female applicants belonging to BC-01, i.e. Extremely Backward Class, are eligible under the Mukhyamantri Ati Pichhda Varg Udyami Yojana.
• The applicant must establish the project in the same district of which they are a permanent resident.
• As per the prescribed rules, the business unit may be established as a proprietorship firm, partnership firm, LLP, or Pvt. Ltd. Company.
• A current account in the name of the business unit is required for payment of instalments.

Who Is Not Eligible for the Mukhyamantri Ati Pichhda Varg Udyami Yojana?

The department has also prescribed certain disqualification conditions for the scheme. These primarily include applicants who do not fulfil the prescribed government or scheme-related conditions. According to the prescribed rules:

• Contractual workers or government employees whose total monthly salary is more than ₹15,000.
• Applicants who have previously received benefits under relevant Industries Department schemes, such as PMEGP, MUDRA Loan, SIPB, Startup, or Industrial Innovation Scheme.
• Persons having legal disqualification as determined by a competent court.
• Persons who have been sentenced by a competent court to imprisonment for six months or more.
• Elected representatives falling under the prescribed categories, including MPs, MLAs, Members of the Legislative Council, Mukhiya, Panchayat Samiti Members, Pramukh, Sarpanch, and elected representatives of relevant urban/panchayati bodies.
• Public Distribution System dealers.
• Applicants who wish to establish the business unit in a district other than their permanent residence district.
• Applicants seeking assistance only for trading/business activities instead of the prescribed manufacturing and service sectors.

Required Documents

Applicants generally need the following documents while applying for the Mukhyamantri Ati Pichhda Varg Udyami Yojana:

• Permanent Residence Certificate
• Matriculation Pass Certificate
• Intermediate or equivalent qualification certificate
• Caste Certificate
• Disability Certificate, if applicable
• Live photograph of the applicant
• Applicant's signature

How to Apply for Mukhyamantri Ati Pichhda Varg Udyami Yojana?

The application process for the Mukhyamantri Ati Pichhda Varg Udyami Yojana is conducted online. Applicants can follow these steps:

1. First, open the Industries Department, Bihar portal.
2. After a new application notification is issued, click on the Login/Registration option at udyamiuser.bihar.gov.in/login.
3. For registration, enter your name, email ID, and mobile number. Middle name is optional, while an email ID is mandatory. Only the mobile number registered with Aadhaar is accepted.
4. Select Extremely Backward Class as the applicant type according to your category.
5. Verify your mobile number using the OTP received on the registered mobile.
6. Receive your login password through email. The portal generates the password and sends it to the entered email ID, so applicants do not need to create the password themselves.
7. Log in to the portal using the registered mobile number and password.
8. Complete the application form section by section, including personal information, educational details, family information, organization details, project details, financial details, bank details, and document uploads.
9. Check all the information entered in each section, provide self-certification, and submit the application.
10. After submission, it is advisable to keep the application number/printout safely for future reference.

Selection and Scrutiny

After submission of the application, the department's official selection process is carried out in the following manner:

• Applications are initially selected according to the district-wise prescribed targets.
• Provisional selection is carried out through the computerized randomization method.
• Applications are scrutinized by a team constituted at the headquarters level, followed by final selection based on the required documents.
• The main list and waiting list are published on the portal.
• Applications are cancelled if the unit is proposed to be established outside the applicant's district of permanent residence.

Training and Payment in Three Instalments

Under the Bihar Mukhyamantri Ati Pichhda Varg Udyami Yojana, selected beneficiaries do not receive the assistance directly at once. The amount is released in three instalments based on training and Utilization Certificates:

• First Instalment: Released through RTGS/NEFT to the current account of the business unit after completion of the first six-day training phase.
• Second Instalment: Released after approval of the Utilization Certificate for the first instalment and completion of the second six-day training phase.
• Third Instalment: Released after approval of the Utilization Certificate for the second instalment.
• Beneficiaries get two opportunities in each training phase. Failure to attend may result in cancellation of candidature or withholding of the next instalment.
• The next instalment may be recommended after 90% of the previous instalment has been utilized, subject to inspection and recommendation.

Main Rules for Utilization of Funds

The instalment amount cannot be spent arbitrarily. The department has prescribed limits for its utilization:

• From the first instalment, a maximum of ₹1.50 lakh may be spent on preparation of the project site, ₹25,000 on electricity connection and safety kit, and ₹25,000 under other permitted items.
• If the site is rented, rent for six months or a maximum of ₹50,000, whichever is lower, is permitted. Advance rent paid to a close relative is not considered valid.
• Up to 25% of the prescribed total cost may be used for the purchase of machinery at the beneficiary's discretion.
• Payments exceeding ₹10,000 are considered valid only when made through online payment methods.
• Machinery payments must be made online to the supplier's account, and only GST invoices are considered valid.

Important Rules Related to the Utilization Certificate

Under the scheme, beneficiaries are required to provide proof of utilization of the funds received. Failure to upload the Utilization Certificate within the prescribed time may affect the processing of the next instalment.

• The Utilization Certificate must be uploaded on the portal within the prescribed period after receiving each instalment.
• As per departmental rules, this period is 90 days.
• Along with the Utilization Certificate, supporting documents such as expense bills/vouchers, photographs of machinery, and photographs of the workplace may be required.
• GPS location requirements may also apply to workplace photographs.
• The next instalment is recommended only after verification of the prescribed utilization and documents.
• Beneficiaries should use the scheme funds only for the approved project and prescribed expenditure heads.

Loan Repayment and Recovery Rules

Under the Ati Pichhda Varg Udyami Yojana, up to 50% of the assistance is provided as a grant, while the remaining amount is provided as a loan. The grant portion does not have to be repaid, whereas the loan portion must be repaid according to the prescribed rules.

• Repayment of the loan begins 12 months after receipt of the final instalment.
• The loan amount is to be repaid in 84 instalments.
• The online payment facility available on the Udyami portal is used for repayment.
• Failure to make payments on time may result in action as per departmental rules.
• If a beneficiary does not establish the business unit after receiving the instalment or misuses the project funds, recovery action may be initiated according to the prescribed rules.

Important Links

• Bihar Mukhyamantri Ati Pichhda Varg Udyami Yojana Registration/Login
• Bihar Mukhyamantri Ati Pichhda Varg Udyami Yojana Guidelines
• Industries Department, Government of Bihar

Contact Details

• Industries Department, Government of Bihar Helpline: 1800-345-6214
• Industries Department Helpdesk Email:[email protected]