Uttar Pradesh Mukhyamantri Gramoudhyog Rozgar Yojana

Scheme Introduction: A Brief Overview

If you are a resident of a rural area of Uttar Pradesh and want to start your own business, the Mukhyamantri Gramodyog Rojgar Yojana can be an important scheme for you. Under this scheme, eligible unemployed young men and women, traditional artisans and craftspeople are provided a bank loan of up to a maximum of ₹10 lakh. In addition, eligible beneficiaries are also given an interest subsidy as per rules, which reduces the financial burden of repaying the loan.

This scheme is operated by the Uttar Pradesh Khadi and Village Industries Board. The objective of the scheme is to promote self-employment in rural areas, reduce unemployment, and stop the migration of youth towards cities. Through this, bank finance facility is provided for establishing new industries and service-based businesses in rural areas.

Unemployed young men and women, traditional artisans and craftspeople of rural areas of Uttar Pradesh between 18 and 50 years of age can apply for the scheme. Under the scheme, financial assistance is made available to both Individual and Partnership type units. Youth who have received training from ITI and Polytechnic institutions are given priority in the scheme.

Under the scheme, eligible beneficiaries of the general category are given an interest subsidy on interest above 4%, while eligible beneficiaries of the specified reserved categories are given special interest assistance as per government rules. Benefits are given only after the application is approved by the district-level committee and the loan is sanctioned by the concerned bank. Currently, applications can be made online through the Mukhyamantri Gramodyog Rojgar Yojana e-Portal, where facilities such as application, document upload, checking application status, and lodging grievances are also available.

The Government of Uttar Pradesh operates several schemes to promote entrepreneurship and self-employment. Among these, financial assistance for setting up new enterprises is made available through the Uttar Pradesh Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA) and the Pandit Deendayal Gramodyog Rojgar Yojana. Meanwhile, under the Uttar Pradesh Mukhyamantri Gramodyog Rojgar Yojana, eligible unemployed youth, traditional artisans and craftspeople of rural areas are provided a bank loan along with an interest subsidy to set up their own industry, which reduces their financial burden and helps them successfully operate their business.

Scheme Benefits

Under the Mukhyamantri Gramodyog Rojgar Yojana, eligible beneficiaries are provided the facility of a bank loan and interest subsidy to set up their own industry.

• Eligible unemployed youth, traditional artisans and craftspeople of rural areas are provided a bank loan of up to a maximum of ₹10 lakh.
• The loan is made available through nationalized banks, regional rural banks, and other banks associated with the scheme.
• Beneficiaries of the general category are given an interest subsidy on the amount of interest above 4%.
• On the other hand, eligible beneficiaries of reserved categories such as Scheduled Caste (SC), Scheduled Tribe (ST), Other Backward Class (OBC), minorities, persons with disabilities, women, and ex-servicemen are provided the benefit of full interest subsidy as per rules.
• The interest subsidy is adjusted directly into the beneficiary's loan account as per the demand of the concerned bank.
• Unemployed youth with technical education (ITI and Polytechnic) are given priority in the scheme.
• Encouragement is given to the establishment of new village-industry units in rural areas.
• New employment opportunities are created at the local level and the rural economy is strengthened.
• Availability of bank finance to set up self-employment helps youth start their own business.
• It helps reduce migration from rural areas towards cities for employment. 

Eligibility Requirements

The benefit of the Mukhyamantri Gramodyog Rojgar Yojana is given only to those applicants who fulfill all the eligibility conditions prescribed by the scheme. Eligibility is verified at the district level, and the facility of bank loan and interest subsidy is provided only to approved applications.

The eligibility conditions for the scheme are as follows:

• The applicant must be a resident of a rural area of Uttar Pradesh. The applicant's age must be between 18 years and 50 years.
• The applicant must be an unemployed young man or woman, a traditional artisan, or a craftsperson. Under the scheme, both Individual and Partnership type units can be established.
• The proposed industry or service unit must be established in a rural area. It is necessary for the project to have a loan sanctioned from a nationalized bank, regional rural bank, or other bank associated with the scheme.
• Approval of the application must be given by the committee formed under the chairmanship of the District Magistrate.
• Only those beneficiaries who fully comply with all the eligibility conditions of the scheme will be eligible for the interest subsidy.
• The beneficiary must use the sanctioned loan only for the approved project.
• The interest subsidy will be provided only after the unit is successfully operating.
• If any beneficiary is found ineligible during inspection, they will not be given the benefit of the scheme. 

Which Applicants Will Get Priority?

Under the scheme, priority is given to the following applicants:

• Unemployed young men and women trained from ITI (Industrial Training Institute).
• Candidates trained from Polytechnic institutions.
• Traditional artisans and craftspeople.
• Eligible entrepreneurs setting up new industries in rural areas. 

Special Arrangement for Scheduled Tribes (Tribal Sub Plan)

As per the government order of financial year 2015-16, under the Tribal Sub Plan (TSP), the full interest amount payable on the sanctioned loan for male and female beneficiaries of the Scheduled Tribe category will be borne by the state government in the form of interest subsidy, provided they fulfill all the eligibility conditions of the scheme.

Eligible Activities Under the Mukhyamantri Gramodyog Rojgar Yojana

Under the Mukhyamantri Gramodyog Rojgar Yojana, bank loans are made available for various village-industry, manufacturing, service, and cottage-industry based units to be established in rural areas. The project should be selected keeping in mind local resources, available raw materials, and market demand.

Assistance can be availed under the scheme for the following types of activities:

• Food Processing units.
• Flour mills, spice grinding, dal mills, and other agriculture-based industries.
• Furniture manufacturing and carpentry work.
• Iron, steel, and metal-based small industries.
• Tailoring, embroidery, readymade garments, and boutiques.
• Incense stick (agarbatti), candle, and soap manufacturing.
• Paper products and stationery manufacturing.
• Leather and leather products manufacturing.
• Bamboo, wood, and handicraft-based industries.
• Pottery and other traditional handicraft industries.
• Service units such as computer repairing, hardware, and networking.
• Mobile repairing and repair of electronic equipment.
• Motor mechanic, welding, and engineering-based small units.
• Dairy, beekeeping, and other rural-based enterprises.
• Other such village-industry and service-sector industries approved by the Uttar Pradesh Khadi and Village Industries Board.

Note: The proposed project should be suitable for establishment in a rural area, and its financing must be done by a nationalized bank, regional rural bank, or other bank associated with the scheme. Final approval will be as per the decision of the concerned district-level committee and the bank. 

Required Documents

While applying online, the applicant has to upload scanned copies of the following documents:

• Passport-size colour photograph
• Scanned copy of signature
• Project Profile / Project Profile Summary
• Aadhaar Card
• Caste Certificate (if applicable)
• Certificate of the location of the unit, certified by the Gram Pradhan/Executive Officer
• Certificate of highest educational or technical qualification
• Age Certificate

Important: All documents should be clear and uploaded according to the prescribed file size. If documents are incorrect or incomplete, the application process may be affected. 

Steps to Apply

The application for the Mukhyamantri Gramodyog Rojgar Yojana is made online through the Mukhyamantri Gramodyog Rojgar Yojana e-Portal. The application process is completely digital, which includes registration, filling out the application form, uploading documents, and final submission.

• Step 1: Register on the e-Portal
  • Go to the official e-Portal of the Mukhyamantri Gramodyog Rojgar Yojana.
  • Click on the Applicant Registration option.
  • Enter all required personal details.
  • Click on the Register button.
  • After successful registration, the User ID and Password will be sent to your registered mobile number via SMS.
• Step 2: Login to the Portal
  • Log in with the help of the received User ID and Password.
  • Candidates applying for the first time can use the "New Applicant" option.
• Step 3: Fill the Online Application Form
  • After logging in, click on My Application.
  • Carefully fill in your personal information, address, educational qualification, social category, work experience, proposed industry/activity, project cost, and bank-related information in the application form.
  • After entering all details, click on the Save Application Data button.
• Step 4: Prepare DPR
  • If necessary, click on the Prepare DPR option to prepare a Detailed Project Report.
  • If needed, the certificate can be downloaded through the Download Certificate option.
• Step 5: Upload Required Documents
• Go to the Upload Document menu and upload all required documents according to the prescribed file size. After uploading the documents, click on the Upload Document button.
• Step 6: Final Submission of Application
  • After checking all information and documents, click on the Final Submission option. No modification (edit) can be made to the application after final submission.
  • Use the Print Application option to keep a copy of the application form safe for the future.
• Step 7: Check Application Status
  • After the application is submitted, the current status of the application can be checked through the Status menu.
• Step 8: Send Email to DVIO if Required
  • If any information or additional documents related to the application need to be sent, an email can be sent to the District Village Industries Officer (DVIO) using the Send Email option.
• Step 9: Lodge a Grievance
  • If any problem arises during the application process, a new grievance can be lodged by going to the Grievances menu, and the status of a previously lodged grievance can also be checked.
• Step 10: Change Mobile Number
  • If the registered mobile number needs to be changed, use the Change Mobile Number option. After entering the new mobile number, the mobile number is updated through OTP verification.

Important Points

• No modification can be made after the final submission of the application.
• Keep the printout of the application form safe with you.
• Upload all documents only in the prescribed format and file size.
• Keep checking the progress of the application from time to time through the Status option on the portal.
• If the District Village Industries Officer (DVIO) asks for additional documents, they can be uploaded through the portal, and communication can also be done through the same panel.

Process After Application

After the application is submitted, it is examined and approved at various levels. The beneficiary gets the benefit of the scheme only after eligibility is confirmed and the loan is sanctioned by the bank. The complete process is as follows:

• 1. Examination of Application After the online application is submitted, the District Village Industries Officer (DVIO) examines the application and the uploaded documents. If the application or documents are found incomplete, the applicant may be asked for necessary corrections or additional documents.
• 2. Approval by District-Level Committee After the examination is complete, eligible applications are presented before the District Level Selection Committee (DLSC) formed under the chairmanship of the District Magistrate. The committee examines the application and project and grants approval to eligible applications.
• 3. Loan Sanction by Bank After receiving approval from the committee, the application is sent to the concerned nationalized bank, regional rural bank, or other authorized bank. The bank evaluates the project and sanctions the loan. If necessary, the bank may also ask for additional information.
• 4. Establishment and Verification of Unit After the loan is sanctioned, the beneficiary has to set up their industry or business as per the approved project. After this, the concerned officers ensure that the business has started and that the loan has been used for the prescribed purpose.
• 5. Payment of Interest Subsidy After the successful operation and verification of the unit, the interest subsidy is adjusted into the beneficiary's loan account as per the demand of the concerned bank.

How to Lodge a Grievance in the Mukhyamantri Gramodyog Rojgar Yojana?

If any kind of problem arises during the application process, the applicant can lodge an online grievance through the e-Portal.

The process for lodging a grievance is as follows:

• Log in to the portal.
• Click on the Grievances menu.
• Select the Lodge New Grievance option.
• Enter the details of the grievance.
• Attach relevant documents if necessary.
• Select the Email or SMS option to receive notification.
• Lodge the grievance by clicking on the Lodge Grievance button.

The applicant can also check the current status of their grievance through this same portal.

When and How is the Interest Subsidy Received?

Under the scheme, the interest subsidy is given as per the following conditions:

• Interest subsidy will be payable only on the sanctioned loan.
• The beneficiary must comply with all eligibility conditions of the scheme.
• Successful operation of the industry or service unit is necessary.
• The interest subsidy is released as per the demand of the concerned bank.
• The interest subsidy is adjusted directly into the beneficiary's bank loan account.
• If the beneficiary misuses the sanctioned amount or closes the unit, payment of the interest subsidy will be stopped.
• If the interest subsidy has already been paid, it may also be recovered by the bank as per rules.

Terms and Conditions of the Mukhyamantri Gramodyog Rojgar Yojana

• Only those applicants whose application is approved by the district-level committee and whose loan is sanctioned by the bank will get the benefit of the scheme.
• Interest subsidy will be given only when the beneficiary has established the business as per the approved project and is successfully operating it.
• The interest subsidy is adjusted into the beneficiary's loan account through the concerned bank.
• If the beneficiary closes the business, misuses the loan amount, or violates the conditions of the scheme, the interest subsidy can be stopped, and the amount already given can also be recovered.

Relevant Links

• Official Website of the Uttar Pradesh Khadi and Village Industries Board
• Mukhyamantri Gramodyog Rojgar Yojana Link
• Guidelines of the Mukhyamantri Gramodyog Rojgar Yojana
• Mukhyamantri Gramodyog Rojgar Yojana e-Portal User Guide

Contact Information

Uttar Pradesh Khadi and Village Industries Board

• Address: 8, Tilak Marg, Lucknow – 226001
• Phone: 2208321 / 2208310 / 2208313 / 2207004
• Gramodyog Samadhan Cell (Toll-Free): 18001207699