Yogi Adityanath-led UP Government Introduces Rs 1,000 Crore Scheme to Foster Youth Entrepreneurship

In a landmark move aimed at bolstering youth empowerment and self-employment, the Uttar Pradesh government, under Chief Minister Yogi Adityanath's leadership, has announced the "Mukhyamantri Yuva Udyami Vikas Abhiyan" in the budget for the Fiscal Year 2024-2025.

Finance Minister Suresh Khanna, during the budget presentation, disclosed the comprehensive initiative designed to provide financial backing to educated and skilled youth for establishing new micro-industries.

Empowering Youth Through Financial Support

The "Mukhyamantri Yuva Udyami Vikas Abhiyan" is strategically crafted to offer financial support to eligible individuals, fostering the creation of micro-enterprises and, consequently, self-employment opportunities. The UP Government has allocated a substantial budget of Rs 1,000 crore for the implementation of this visionary scheme.

Key Features of the Scheme

Under this pioneering scheme, eligible projects in the industry and service sectors can avail interest-free loans, with a maximum cap set at Rs 5 lakh. The initiative, operating under the Self-Employment Mission, aims to support 100,000 units annually, totaling a million units over the next decade.

Eligibility Criteria and Beneficiaries

The scheme extends its benefits to individuals who have undergone training through various government programs, including the Vishwakarma Shram Samman Yojana, One District One Product Training and Toolkit Scheme, Scheduled Caste/Tribe/Other Backward Class Training Scheme, and Skill Upgradation facilitated by the Uttar Pradesh Skilled Development Mission. Additionally, youth possessing certificates, diplomas, or degrees from recognized educational institutions are also eligible to participate.

Loan Structure and Repayment Facilitation

Micro units within the industry and service sector with project costs not exceeding Rs 5.00 lakh can apply for the scheme. Successful repayment of the initial loan opens avenues for second-stage financing, wherein a composite loan of up to double the first-stage loan, with a maximum limit of Rs 7.50 lakh, can be availed. The scheme also incorporates provisions for grants to incentivize digital transactions.

Application Process and Financial Institutions Collaboration

To ensure accessibility, the scheme adopts an online application process. Loans obtained from banks and financial institutions will be covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), with the scheme covering the full payment of associated fees. Funding sources include nationalized, scheduled, and rural banks, SIDBI, and financial institutions recognized by the Reserve Bank of India.

Key Features of the Scheme:

• Financial Support: Interest-free loans of up to ₹5 lakh will be provided to eligible individuals for establishing micro-industries in the industry and service sectors.

• Eligibility: Individuals trained through government skilling programs and those holding certificates/diplomas/degrees from any institution are eligible.

• Targeted Beneficiaries: The scheme aims to benefit 1 million units over the next 10 years, funding 100,000 units annually.

• Second-Stage Financing: Upon successful repayment of the initial loan, units become eligible for further funding up to ₹7.50 lakh.

• Digital Promotion: Grants are available to promote digital transactions within the established units.

• Simplified Application: The application process for the scheme will be entirely online.

• Financial Backing: Loan coverage will be provided by CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises).

• Funding Institutions: Nationalised/scheduled/rural banks, SIDBI, and RBI-approved financial institutions will provide funding.

Potential Impact:

This initiative has the potential to create significant employment opportunities in both rural and urban areas of Uttar Pradesh. By encouraging entrepreneurship among the youth, the scheme can contribute to the state's economic growth and development.