Madhya Pradesh Mukhyamantri Yuva Udyami Yojana

Introduction

Madhya Pradesh Mukhyamantri Yuva Udyami Yojana was launched on 1 August 2014 to encourage youth to establish their own manufacturing or service enterprises. The scheme provided bank loans along with margin money assistance, interest subsidy, loan guarantee and entrepreneurship development training to eligible applicants.

The scheme aimed to promote entrepreneurship among youth across Madhya Pradesh and help them establish sustainable self-employment opportunities. Eligible applicants could seek financial assistance for projects in the manufacturing and service sectors, subject to the conditions prescribed under the scheme.

Important Update: Madhya Pradesh Mukhyamantri Yuva Udyami Yojana was discontinued from 1 April 2020. Therefore, fresh applications are no longer accepted under this scheme. Applicants looking for a current self-employment scheme can check the Mukhyamantri Udyam Kranti Yojana, which was introduced in place of the earlier self-employment schemes.

Scheme Implementation

The Micro, Small and Medium Enterprises Department was the nodal department for implementing the scheme. The General Manager of the District Trade and Industry Centre was responsible for implementing the scheme at the district level.

Scheme Benefits

The scheme provided financial assistance and other support to eligible youth for establishing manufacturing and service enterprises. The major benefits included:

• Project cost could range from ₹10 lakh to ₹2 crore.
• Margin money assistance of 15% of the project cost, up to ₹12 lakh, was available.
• BPL beneficiaries could receive 20% of the project cost, up to ₹18 lakh.
• Interest subsidy was available at 5% per annum and 6% per annum for women for a maximum period of 7 years.
• Guarantee fee was payable at the prevailing rate for a maximum period of 7 years.
• Entrepreneurship development training could be provided after loan sanction, where required.

Eligibility Requirements

The scheme was applicable throughout Madhya Pradesh, and the proposed enterprise had to be established within the state. Applicants also had to meet the prescribed eligibility conditions.

1. The applicant should be a native resident of Madhya Pradesh.
2. The applicant should have passed at least the 10th class.
3. The applicant's age should be between 18 and 40 years on the date of application.
4. There was no income limit, but the applicant's family should not already be established in the industry or business sector and should not be an income-tax payer.
5. The applicant should not be a defaulter of any nationalised bank.
6. An applicant receiving assistance under another government entrepreneur or self-employment scheme was not eligible.
7. An applicant could receive assistance under the scheme only once.
8. The scheme covered manufacturing and service-sector projects eligible for bank credit guarantee under CGTMSE. Trading activities, all types of vehicles, buffalo rearing, animal husbandry and poultry-related projects were not eligible.

Documents Required

Applicants were required to submit the following documents while applying for the Mukhyamantri Yuva Udyami Yojana:

• Project Report
• Madhya Pradesh Domicile Certificate
• Educational Qualification Certificate
• Birth Certificate or Age Proof
• Caste Certificate, if applicable
• Disability Certificate, if applicable
• BPL Certificate, if applicable
• Income Tax Return documents, if applicable
• Rent Agreement, if the business premises were taken on rent
• Other documents required by the concerned bank or District Trade and Industry Centre

Steps to Apply

Applications were previously submitted online through the MPOnline portal. The following was the application process when the scheme was operational:

• Submit the application in the prescribed format through the MPOnline portal along with the required documents to the District Trade and Industry Centre.
• The application form was available free of cost.
• All applications received were registered and incomplete applications were required to be completed within the prescribed period.
• Attach a Detailed Project Report certified by a Chartered Accountant with the application.
• The District Task Force Committee reviewed the application and project report.
• After the committee's recommendation, eligible cases were forwarded to banks for further processing.

Application Disposal

Applications and Detailed Project Reports received by the District Trade and Industry Centre and banks were presented before the District Task Force Committee constituted under the scheme.

• After the recommendation of the District Task Force Committee, eligible cases were forwarded to banks for disposal.
• Eligible industry and service units received guarantee support through the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE). Accordingly, banks were not required to seek collateral security from applicants.
• Banks were required to dispose of cases within 30 days of receiving them, as per applicable Reserve Bank of India guidelines.
• Loan disbursement was to begin within 15 days of sanction.
• The District Task Force Committee reviewed the implementation of the scheme and the progress and issues of assisted enterprises.

Loan Repayment and Assistance

• General category beneficiaries could receive 15% margin money assistance up to ₹12 lakh, while BPL beneficiaries could receive 20% assistance up to ₹18 lakh.
• The minimum initial moratorium period was 6 months.
• After the moratorium period, the loan was repayable over a period of 5 to 7 years.

Training

• After loan sanction, the government could provide entrepreneurship development training to beneficiaries who opted for it, where required.
• Applicants who had already completed entrepreneurship development training were not required to undergo the training again, although additional training could be arranged if necessary.

Current Status of Mukhyamantri Yuva Udyami Yojana

Madhya Pradesh Mukhyamantri Yuva Udyami Yojana was discontinued from 1 April 2020. Therefore, fresh applications are no longer accepted under this scheme. Applicants looking for a current self-employment and entrepreneurship scheme in Madhya Pradesh can check the Mukhyamantri Udyam Kranti Yojana, which was introduced in place of the earlier self-employment schemes.

Important Links

• MPOnline MSME portal
• Department of Micro, Small and Medium Enterprises, Madhya Pradesh 

Contact Information

• Micro, Small and Medium Enterprises Department, Madhya Pradesh