Himachal Pradesh Rajiv Gandhi Swarozgaar Start Up Yojana

Scheme Introduction: A Brief Overview

The Rajiv Gandhi Swarozgaar Start-Up Yojana-2023, launched by the Government of Himachal Pradesh, aims to promote self-employment and entrepreneurship among the unemployed youth of the state. The scheme is designed to create livelihood opportunities by supporting eligible bona fide Himachali youth in establishing new enterprises across manufacturing, service, and e-vehicle sectors.

The Rajiv Gandhi Swarozgaar Start-Up Yojana-2023 is the updated and enhanced version of the original Himachal Pradesh Rajiv Gandhi Swarozgaar Yojana. Launched on January 1, 2024, this new scheme comes with revised provisions, enhanced benefits, and expanded coverage, including the popular e-vehicle (e-Taxi) component.

Under this scheme, eligible beneficiaries receive financial assistance based on their category. The government provides capital subsidies ranging from 25% to 50%, depending on the category of the beneficiary and the type of enterprise. For e-vehicles, the scheme offers an exceptional 50% subsidy on the ex-showroom price, making it highly attractive for unemployed youth looking to start their own taxi or transport business. General category beneficiaries receive 25% subsidy, SC/ST beneficiaries get 30%, while women-led enterprises and Divyangjan receive 35% subsidy on investments up to ₹60 lakh in plant and machinery.

Beneficiaries eligible for Rajiv Gandhi Swarozgaar Start-Up Yojana must register on the EEMIS portal and obtain Udyam Registration before commencing operations. The scheme follows a transparent process involving application, screening, approval by the District Level Committee (DLC), and financial sanction by banks.

Subsidies are linked to the performance and sustainability of the enterprise. Capital subsidy is released after verification and continued operation, while interest subsidy is provided for a limited duration. Strict provisions are in place to prevent misuse, including a refund of the subsidy in case of false information or closure of the enterprise within the prescribed period.

The scheme also ensures monitoring through physical verification and mandates that only one member per family can avail benefits under this scheme. Under the scheme, beneficiaries can also apply for E-taxi, whose eligibility is different to others. In 2026-27, the government will provide a subsidy to 500 youth to purchase an e-Taxi under the scheme. Also, the government has increased the monthly assistance provided to E-taxi beneficiaries by Rs 5,000/-. Read here to know more about the Rajiv Gandhi Swarozgaar Start-Up E-Taxi Yojana.

Scheme Benefits

The Rajiv Gandhi Swarozgaar Start-Up Yojana offers various benefits, such as: 

1. Capital Subsidy

• The scheme provides capital subsidy to support the establishment of new enterprises:
  • General Category: 25% subsidy on investment up to Rs 60 lakh in plant & machinery
  • 30% subsidy for SC/ST beneficiaries
  • 35% subsidy for women-led enterprises and Divyangjan
  • 50% subsidy for purchase of e-vehicles (Ex-showroom price)
  • Subsidy released in instalments: 60% initially, 40% after verification (for general enterprises)
  • For e-vehicles: 100% subsidy in one instalment after verification
  • The enterprise must remain operational for at least 3 years to retain the subsidy

2. Interest Subsidy

• Interest subsidy of 5% is provided on loans up to ₹60 lakh
• Provided for 3 years from the commencement of commercial production
• Released periodically to the loan account through the financial institution
• Not applicable in case of loan default or rescheduling

3. Land & Stamp Duty Benefits

• Government land in industrial areas (C category) is allotted at 25% of the prevailing premium
• For the purchase of private land, stamp duty is reduced to 3%

4. CGTMSE Support

• Collateral-free loans under Credit Guarantee Fund Trust for Micro & Small Enterprises
• The government reimburses the guarantee fee
• No property required as security for the loan

Financial Pattern / Funding Structure

The scheme follows a structured financing model:

Structure of the Scheme

• 90% of the project cost is financed by the bank (term/composite loan)
• Minimum 10% margin money must be contributed by the beneficiary (can contribute more if desired)
• Loan repayment period ranges from 3 to 7 years, including a moratorium period as decided by the bank
• Maximum project cost: ₹1 crore (including working capital)
• Maximum investment in plant & machinery: Rs 60 lakh

Subsidy Handling

• Capital subsidy kept as Term Deposit Receipt (TDR) for 3 years
• No interest paid on TDR, no interest charged on equivalent loan amount
• Released after verification and successful operation

Corpus Fund

• Rs 10 crore corpus fund maintained in Nodal Bank
• Used for subsidy disbursement
• Replenished when the balance falls below Rs 1 crore

Eligibility Requirements

Required Documents

• Bonafide Himachali Certificate
• Aadhaar Card
• Age Proof (Matriculation Certificate/Birth Certificate/Passport)
• SC/ST Certificate (if applicable)
• Divyang Certificate (minimum 40% disability, if applicable)
• Eligibility certificate from the concerned department
• X-10 Employment Registration Card
• Preliminary Project Report (PPR)
• Valid commercial driving license (for e-vehicle applicants)

Steps to Apply

Rajiv Gandhi Swarozgaar Start-Up Yojana application process goes through certain stages, whose details are shared below: -

Step 1: Registration on the EEMIS Portal

• Start by registering on the EEMIS portal as a job seeker. This is important because the government needs proof that you are unemployed.
• Fill in personal details, educational qualifications, and contact information.
• After registering, you will get an Employment Registration card called the X-10 card.
• Prepare Preliminary Project Report (PPR) stating business plan, investment requirements, and income projections

Step 2: Application Submission

• Visit the RGSSY portal.
• Click on the "Apply New" tab, new user must click on the Register tab.
• After registration, log in with your mobile number.
• Fill the application form by sharing the required details.
• Upload all required documents (clear and legible scans)
• Review all information carefully before submission
• Submit the application and note down the reference number
• Application forwarded to Nodal Officer (District Employment Officer)

Step 3: Application Processing

• Nodal Officer screens application for completeness (within 7 days)
• Application forwarded to the bank for feasibility assessment
• Bank reviews project viability and responds (within 7 days)
• Application placed before the District Level Committee (DLC)
• DLC examines the proposal and grants in-principle approval
• Approval communicated to the bank within 5 days

Step 4: Loan Sanction & Subsidy Release

• Bank sanctions loan (within 1 month of DLC approval)
• First instalment disbursed (minimum 30% of project cost)
• Capital subsidy released:
  • For general enterprises: 60% initially, 40% after verification and production start
  • For e-vehicles: 100% in one instalment after verification (within 15 days)
• Interest subsidy provided every 6 months for 3 years

Step 5: Post-Approval Compliance

• Start commercial production within 2 years of first loan disbursement
• Register as an employer on the EEMIS portal
• Obtain Udyam Registration from www.udyamregistration.gov.in
• Maintain enterprise operations for at least 3 years.
• Cooperate with physical verification by the District Employment Exchange.
• Do not change location or dispose of assets without Nodal Officer approval.

Relevant Links

• Himachal Pradesh Rajiv Gandhi Swarozgaar Start Up Yojana Portal
• Himachal Pradesh Rajiv Gandhi Swarozgaar Start Up Yojana Guidelines.
• Online Application for Rajiv Gandhi Swarozgaar Start Up Yojana.
• Rajiv Gandhi Swarozgaar Start Up Yojana Applicant Login
• Himachal Pradesh EEMIS Portal.
• EEMIS Portal Candidate Login Portal
• EEMIS Candidate Registration Card

Contact Information

• Rajiv Gandhi Swarozgaar Start Up Yojana Contact Number: 0177-2625277
• Rajiv Gandhi Swarozgaar Start Up Yojana Email: lep-hp@nic.in
• Himachal Pradesh Labour and Employment Department Contact Details.