Uttarakhand Mukhyamantri Swarojgar Yojana 2.0 (MSY 2.0)

Scheme Introduction: A Brief Overview

The Uttarakhand Mukhyamantri Swarojgar Yojana 2.0 (MSY 2.0) is a bank loan-linked self-employment scheme of the Government of Uttarakhand. Implemented by the Micro, Small and Medium Enterprises (MSME) Department, the scheme helps enterprising youth, migrants, skilled and unskilled artisans, handicraftsmen, educated urban and rural unemployed people, small entrepreneurs, businessmen and street vendors set up their own enterprise with a bank loan and a one-time margin money subsidy from the state government.

The state government first launched the Mukhyamantri Swarojgar Yojana on 9 May 2020 to protect livelihoods hit by the Covid-19 pandemic, and followed it with the Mukhyamantri Swarojgar Yojana (Nano) on 21 June 2021 for micro enterprises and street vendors. These two schemes linked more than 39,000 beneficiaries to self-employment and created more than one lakh jobs. To make them more effective, promote women entrepreneurship, and stop duplication of benefits, the government has now merged both schemes into MSY 2.0.

The objective of the scheme is to generate maximum employment by linking more than 50,000 beneficiaries to self-employment during the scheme period. It also aims to provide bank loans to all sections of society for manufacturing, service and business units, turn youth and reverse migrants into job creators instead of job seekers, make bank loans easier to get, build entrepreneurship through awareness and training programmes, give extra incentives to women, reduce unemployment and migration from villages to big cities, and promote local products of the state.

Under MSY 2.0, the government supports manufacturing projects up to ₹25 lakh and service, trade and other business projects up to ₹10 lakh. General category applicants contribute 10% of the project cost and special category applicants (SC, ST, OBC, Minority, Ex-Servicemen, Women and Disabled) contribute just 5%, while the bank finances the rest as a loan. The state then gives a margin money subsidy of 15% to 30% of the project cost depending on the project size and the area category under the Uttarakhand MSME Policy-2023, with an extra 5% booster for rural or Nagar Panchayat projects, women or disabled beneficiaries, or ODOP/ODTP/GI-tagged products.

The MSME Department acts as the nodal department, while the Directorate of Industries runs the scheme at the state level and the District Industry Centres (DICs) run it at the district level. The Director General/Commissioner of Industries fixes district targets every year based on population, geography, economic status, and self-employment potential, and shares them with the DICs and the district offices of the Khadi and Village Industries Board. Applicants apply online on the official Portal.

The DIC checks each application within 3 working days, a District Level Scrutiny Committee selects beneficiaries on a first-come-first-served basis without a mandatory interview, and the bank decides on the loan within 2 to 3 weeks. The bank keeps the subsidy as a Term Deposit Receipt (TDR) and adjusts it in the loan account after the unit runs successfully for 2 financial years without default.

Alongside Mukhyamantri Swarojgar Yojana 2.0 (MSY 2.0), the state government also implements two other employment-oriented schemes: Veer Chandra Singh Garhwali Paryatan Swarojgar Yojana to promote tourism-based self-employment and Mukhya Mantri Kaushal Unnyan Evam Vaishvik Rozgar Yojana (MM-KUVRY) to provide skill training and facilitate overseas employment for around 50,000 youth by 2030. Interested Applicants can explore the complete details of both schemes here.

Benefits of Mukhyamantri Swarojgar Yojana 2.0

Mukhyamantri Swarojgar Yojana 2.0 combines bank loans, a one-time state subsidy, and business support services to help applicants establish their own enterprises with a limited initial investment. The scheme offers the following financial benefits and incentives to eligible entrepreneurs:

Project Cost Limit

• Manufacturing enterprises: Up to ₹25 lakh.
• Service enterprises: Up to ₹10 lakh.
• Trade and other businesses: Up to ₹10 lakh.
• What project cost covers: Fixed capital such as plant and machinery, equipment, workshop building, rent for up to one year (for rented premises), other permanent assets, and working capital for up to one quarter. Land cost is not included.
• If a project costs more than these limits, the entrepreneur bears the extra cost, and the government does not count it for subsidy.

Own Contribution and Bank Loan

• Banks can sanction a term loan for fixed capital and a cash credit limit or composite loan for working capital.
• Banks will not take any collateral security.
• The repayment period will be at least 2 years, and the bank may allow an initial moratorium based on the project.

Margin Money Subsidy

The state government pays a one-time margin money subsidy on the approved project cost as shown below.

Additional 5% Subsidy Booster

A project gets an extra 5% margin money under only one of these three boosters:

• Geographical Booster: For projects set up in rural areas and notified Nagar Panchayat areas.
• Social Booster: For women and disabled beneficiaries.
• Product Booster: For manufacturing projects of the district's identified ODOP, ODTP or GI-tagged product.

Area Categories under Uttarakhand MSME Policy

The subsidy rate depends on the location of the proposed unit, as per the area classification under the Uttarakhand MSME Policy.

Eligibility Requirements

Applicants must meet the following eligibility criteria to avail of the benefits under the Uttarakhand Mukhyamantri Swarojgar Yojana 2.0 (MSY 2.0).

• Applicants must be at least 18 years old on the date of application.
• The applicant must be a permanent or native resident of Uttarakhand and possess a valid residence certificate issued by the competent authority.
• The applicant must not be a defaulter of any nationalised or recognised bank, financial institution, cooperative bank or government institution.
• Neither the applicant nor any family member (husband, wife or unmarried children below 21 years) must have previously received benefits under the scheme.
• An individual can avail the benefit of the scheme only once.
• Applicants must not have received benefits under any Central or State self-employment scheme during the previous five financial years.
• No minimum educational qualification is required.
• Applicants belonging to SC, ST, OBC, Minority, Ex-Servicemen and Disabled categories must submit self-attested certificates issued by the competent authority. Women are not required to submit a separate category certificate.
• The proposed project must be commercially viable and fall under the activities permitted by the scheme.
• Applicants must submit a mandatory affidavit confirming that they fulfil all the prescribed eligibility conditions.

Eligible Activities

• Manufacturing enterprises costing up to ₹25 lakh
• Service enterprises costing up to ₹10 lakh
• Trade and other businesses costing up to ₹10 lakh.

Expansion exception: If an applicant availed another Central or State self-employment scheme more than 5 financial years ago and is not a defaulter, he or she can take finance under MSY 2.0 to expand the existing enterprise.

Documents Required for MSY 2.0

• Aadhaar Card
• Permanent/Native Residence Certificate
• Project report (self-attested up to ₹10 lakh; CA-certified above ₹10 lakh)
• Passport-size photograph (not older than 6 months)
• Special category certificate from the competent authority (not required for women)
• Affidavit on stamp paper declaring that all facts are true and eligibility conditions are met
• Lease deed (if the workshop or shop is rented)*
• Quotations at current rates for construction/repair of workshop or shop and plant, machinery or equipment*

How to Apply for Mukhyamantri Swarojgar Yojana 2.0

The application process is fully online through the MSY portal, and the DIC forwards selected applications to banks online, so no offline correspondence takes place with the applicant or the bank. Applicants can understand the complete application process by following the steps below:

Step 1: Register on the MSY Portal

• First, visit the official portal.
• On the home page Select 'MSY 2.0' on the home page and click on the 'Apply for Scheme' tab.
• The registration page will then open on your screen.
• Enter the basic details required for registration and create your account.

Step 2: Log In and Fill the Application

• After Registration, log in with your registered credentials.
• Select Mukhyamantri Swarojgar Yojana and open the application form.
• Fill in your personal details, category, project details, project cost, and preferred bank branch.
• Upload all the required self-attested documents listed above.
• Check the details carefully and submit the application.

Step 3: Scrutiny at the District Industry Centre

• The DIC checks your application within 3 working days of receipt.
• If the form is incomplete or has errors, the DIC returns it to you immediately for correction.
• The DIC places complete applications before the District Level Scrutiny Committee.

Step 4: Selection by the District Level Scrutiny Committee

The committee has the General Manager, DIC (Chairman), the district Lead Bank Manager, the district officer of the related department, and the Manager, DIC (Member Secretary).

• The committee selects beneficiaries based on eligibility, project viability, first-come-first-served, and the district target.
• An interview is not mandatory.
• The committee meets at intervals of 15 days or less.
• The DIC forwards selected applications to the concerned bank online and informs the applicant. On request, the General Manager, DIC can send it to a different bank.

Step 5: Loan Sanction and Disbursement by the Bank

• The bank informs the DIC and the applicant about approval or rejection through the portal.
• The bank disburses the loan within 15 days of sanction, either at once or in instalments.
• Within 7 days of the first instalment, the bank sends the margin money claim to the General Manager, DIC, online.

Step 6: Release and Adjustment of Subsidy

• The General Manager, DIC examines the claim and sends it to the Directorate of Industries with a recommendation.
• The Directorate releases the margin money to the bank, which keeps it as a TDR. The bank neither charges nor pays interest on this part.
• After 2 financial years of successful operation without default, DIC and bank officials jointly inspect the unit and upload photographs and the inspection report on the portal.
• The bank then adjusts the margin money in your loan account as subsidy.

Important Conditions after Loan Sanction

Beneficiaries must follow these rules to keep the subsidy under Mukhyamantri Swarojgar Yojana 2.0.

• If the unit is found non-functional, or the loan is misused, or the investment is made in a different project, the bank returns the margin money to the Directorate of Industries.
• If the unit closes due to a natural calamity, other extraordinary reasons, or the beneficiary's death, the bank can adjust the margin money with permission of the General Manager, DIC.
• Wrong or misleading information leads to recovery of the margin money and action by the Industries Department.
• Every beneficiary must put up a signboard in the prescribed format at the enterprise.

Monitoring and Grievance Redressal

The government reviews the scheme at block, district and state levels and gives applicants a clear appeal option.

• BLBC (block), DLRC (district) and SLBC (state) review loan applications sent to banks.
• The District Self-Employment Promotion and Monitoring Committee, chaired by the District Magistrate, reviews progress every month.
• The Director General/Commissioner of Industries reviews progress quarterly, and the Principal Secretary/Secretary, MSME, reviews it half-yearly.
• In case of any dispute, applicants can appeal before the District Self-Employment Promotion and Monitoring Committee.

Relevant Links

• Mukhyamantri Swarojgar Yojana 2.0 (MSY 2.0) Registration
• Mukhyamantri Swarojgar Yojana 2.0 (MSY 2.0) Login
• Mukhyamantri Swarojgar Yojana 2.0 (MSY 2.0) Details
• Mukhyamantri Swarojgar Yojana 2.0 Notification 

Contact Information

• Mukhyamantri Swarojgar Yojana 2.0 Toll-Free Helpline Number: 7617576909
• Directorate of Industries, Uttarakhand Contact Details