Bihar Mukhyamantri Yuva Udyami Yojana

Mukhyamantri Yuva Udyami Yojana is an entrepreneurship promotion scheme implemented by the Department of Industries, Government of Bihar. Under the scheme, eligible General Category and Backward Class (BC-02) male applicants can receive financial assistance of up to Rs. 10 lakh to establish new enterprises. The assistance includes a grant component, a loan component carrying 1% interest, and support for entrepreneurship training through the Udyami Portal.

Introduction of Bihar Mukhyamantri Yuva Udyami Yojana: A Brief Insight

Many young people in Bihar aspire to start their own businesses but often struggle to arrange the capital required to turn their ideas into reality. For first-time entrepreneurs, obtaining business finance without collateral can be difficult. To address this challenge and encourage self-employment, the Bihar Cabinet approved Mukhyamantri Yuva Udyami Yojana on 19 April 2021 under the Saat Nischay Part 2 initiative, followed by the issuance of the official Sankalp on 13 May 2021.

The scheme is implemented by the Department of Industries, Government of Bihar through the Bihar Start-up Fund Trust. It aims to support eligible General Category and Backward Class (BC-02) male applicants in establishing new enterprises and creating sustainable livelihood opportunities within the state.

Under Mukhyamantri Yuva Udyami Yojana, selected beneficiaries can receive financial assistance of up to Rs. 10 lakh. The approved amount includes a grant component and a loan component carrying an interest rate of 1%. This interest-bearing loan structure distinguishes the scheme from certain other entrepreneurship schemes operating under the Mukhyamantri Udyami Yojana framework.

In addition to financial assistance, beneficiaries receive support for entrepreneurship training and project monitoring. An amount of Rs. 25,000 per unit is provided for these activities, helping applicants develop the skills required to successfully establish and manage their enterprises.

The scheme covers a wide range of department-approved projects related to manufacturing, food processing, service-based activities, repair services, traditional crafts, and other small business ventures. Applicants can choose a project based on their skills, experience, and business interests.

Applications are accepted online through the Udyami Portal. After the application process is completed, eligible candidates are selected through the prescribed computerised selection process, followed by document verification, entrepreneurship training, and project approval. Applicants can also contact their nearest District Industries Centre (DIC) or call 1800-345-6214 for assistance.

Mukhyamantri Yuva Udyami Yojana is one of the key components operating under the broader Mukhyamantri Udyami Yojana umbrella. Other entrepreneurship schemes under this framework include the Mukhyamantri SC/ST Udyami Yojana, Mukhyamantri Ati Pichhda Varg Udyami Yojana, and Mukhyamantri Mahila Udyami Yojana, each designed for specific beneficiary groups.

Applicants looking for additional business financing opportunities may also explore the Pradhan Mantri Mudra Yojana (PMMY), which provides collateral-free business loans, and the Prime Minister’s Employment Generation Programme (PMEGP), which supports the establishment of new micro-enterprises through credit-linked assistance.

Young entrepreneurs and individuals interested in other self-employment and livelihood support programmes can explore more initiatives available on our List of Welfare Schemes of Bihar Government page.

Benefits Provided to Eligible Beneficiaries

Mukhyamantri Yuva Udyami Yojana provides financial assistance, entrepreneurship support, and project monitoring facilities to help eligible beneficiaries establish new enterprises in Bihar.

Financial Assistance Available Under the Scheme

• Financial assistance of up to Rs. 10 lakh for establishing an approved enterprise
• Up to Rs. 5 lakh provided as a grant that does not require repayment
• Up to Rs. 5 lakh provided as a loan carrying an interest rate of 1% per annum
• Additional assistance of Rs. 25,000 per unit for entrepreneurship training and project monitoring

Loan Repayment Provisions

• Repayment of the loan component begins after the prescribed moratorium period under the scheme guidelines
• The loan amount is recoverable in 84 equal monthly instalments
• Beneficiaries are required to comply with all repayment conditions prescribed by the Department of Industries
• In case of default or violation of scheme provisions, recovery proceedings may be initiated as per applicable government rules

Fund Release and Project Implementation

• Financial assistance is generally released in phases based on the approved project and Detailed Project Report (DPR)
• Beneficiaries must utilize the released amount for the approved enterprise within the prescribed timeline
• Subsequent instalments are released after verification of fund utilization by the concerned authorities
• The enterprise should commence operations within the timeframe specified in the scheme guidelines

Wide Range of Approved Business Projects

Applicants can select from various department-approved projects covering manufacturing, food processing, service-based activities, repair services, and traditional livelihood sectors.

• Food-based enterprises such as Namkeen Production, Pickle Manufacturing, Sweet Production, Bakery Units, and other processing activities
• Service-oriented businesses including Salons, Dhaba and Restaurant Operations, Dry Cleaning Units, and various maintenance services
• Technical and repair-based enterprises such as Mobile Repairing, Air Conditioner Repairing, and Two-Wheeler Service Centres
• Traditional and craft-based activities including Bamboo Furniture Manufacturing, Brass Craft, Wood Carving, and other locally significant industries

Eligibility Conditions Required to be Fulfilled

Applicants must satisfy the eligibility criteria prescribed by the Department of Industries of the Government of Bihar, before applying under Mukhyamantri Yuva Udyami Yojana.

• Applicant must be a male candidate belonging to the General Category or Backward Class (BC-02)
• Must be a permanent resident of Bihar
• Should have passed at least Intermediate (10+2), ITI, Polytechnic Diploma, or an equivalent qualification
• Applicant’s age should be between 18 and 50 years
• The proposed enterprise must be registered as a Proprietorship, Partnership Firm, LLP, or Private Limited Company
• In case of a proprietorship firm, the enterprise should be established in the applicant’s name using the applicant’s PAN Card
• The business unit must be established within the applicant’s home district in Bihar

Family-Based Restriction Under the Scheme

Only one member from a family can avail the benefit of Mukhyamantri Yuva Udyami Yojana. For this purpose, a family includes the applicant, spouse, and minor children. If any member of the family has already received benefits under the scheme, other eligible family members cannot apply.

Who Is Not Eligible

• Women and transgender applicants
• Male applicants belonging to categories other than General Category or BC-02
• Applicants below 18 years or above 50 years of age
• Persons who are not permanent residents of Bihar
• Applicants who do not possess the prescribed educational qualification
• Families in which another member has already availed benefits under the scheme
• Individuals who do not meet the conditions specified in the official scheme guidelines

Documents Required to be Attached

Applicants intending to apply under Mukhyamantri Yuva Udyami Yojana should keep the following documents ready before completing the online application process through the Udyami Portal:

• Aadhaar Card
• Matriculation Certificate showing the applicant’s date of birth
• Intermediate (10+2), ITI, Polytechnic Diploma, or equivalent qualification certificate
• Permanent Residence Certificate of Bihar
• Caste Certificate, if applying under the Backward Class (BC) category
• Recent passport-size photograph
• Applicant’s signature
• Bank passbook copy or cancelled cheque
• PAN Card
• Detailed Project Report (DPR) or project proposal for the selected enterprise

How Beneficiaries Can Apply to Avail the Benefit of the Scheme

Applicants can submit their application online through the Udyami Portal. Before starting the process, keep all required documents ready and make sure your Aadhaar-linked mobile number is active, as OTP verification is required during registration.

Step 1: Visit the official Udyami Bihar registration portal when applications are invited for Mukhyamantri Yuva Udyami Yojana.

Step 2: Click on the registration option and create your account using your Aadhaar number, mobile number, and email address.

Step 3: Enter the OTP received on your registered mobile number and create your login credentials.

Step 4: Log in to the portal and select “Mukhyamantri Yuva Udyami Yojana” from the list of schemes available under the Mukhyamantri Udyami Yojana framework.

Step 5: Fill in your personal details, address information, category details, and other information exactly as mentioned in your official documents.

Step 6: Enter your educational qualification details, including Intermediate (10+2), ITI, Polytechnic Diploma, or any other eligible qualification.

Step 7: Open the approved project list, choose the business you want to start, and enter the estimated project cost in the application form.

Step 8: Upload all required documents, including Aadhaar Card, residence certificate, educational certificates, PAN Card, bank account details, photograph, signature, and project-related documents.

Step 9: Check all the information carefully and submit the application form. After submission, download and save the acknowledgement receipt for future reference.

After Applying

Step 1: Once the application period closes, all eligible applications are considered for the computerised selection process conducted by the Department of Industries.

Step 2: If your application is selected, the concerned District Industries Centre (DIC) will verify your documents and application details.

Step 3: Visit the District Industries Centre with the original documents whenever you are called for verification.

Step 4: After successful verification, participate in the entrepreneurship training programme organised under the scheme.

Step 5: During the training period, prepare and finalise your Detailed Project Report (DPR) for the proposed enterprise.

Step 6: After approval of the project, financial assistance is sanctioned and released according to the approved project cost and scheme guidelines.

Step 7: Use the first instalment for the approved business activity within the prescribed time limit and maintain all expenditure records.

Step 8: Submit the required utilisation details and documents to the concerned authorities so that the next instalment can be processed.

Step 9: After receiving the final instalment, establish the enterprise and begin business operations within the timeline prescribed under the scheme.

Important: Only one member from a family can avail benefits under Mukhyamantri Yuva Udyami Yojana. Applicants should also ensure that the proposed enterprise is established within their home district and that all information submitted in the application form matches the supporting documents.

Important Links Available of the Scheme

• Udyami Bihar Portal
• Bihar Mukhyamantri Yuva Udyami Yojana Guidelines
• Registration and Login Portal
• Approved Project List

Contact Details in Case of Help Needed

• Toll-Free Helpline: 1800-345-6214
• Email: dir-msme.ind-bih@gov.in
• In Person: Reach out to your local District Industries Centre

Frequently Asked Questions (FAQs)

Q. What is Mukhyamantri Yuva Udyami Yojana?

Ans. Mukhyamantri Yuva Udyami Yojana is an entrepreneurship promotion scheme implemented by the Department of Industries, Government of Bihar. The scheme provides financial assistance of up to Rs. 10 lakh to eligible male applicants belonging to the General Category and Backward Class (BC-02) for establishing new enterprises.

Q. Who can apply for Mukhyamantri Yuva Udyami Yojana?

Ans. Male applicants belonging to the General Category or BC-02 category, who are permanent residents of Bihar, aged between 18 and 50 years, and possess the prescribed educational qualification, can apply under the scheme.

Q. Can women apply under Mukhyamantri Yuva Udyami Yojana?

Ans. No. This scheme is specifically meant for eligible male applicants. Women and transgender individuals can apply under the Mukhyamantri Mahila Udyami Yojana.

Q. How much financial assistance is available under the scheme?

Ans. Selected beneficiaries can receive financial assistance of up to Rs. 10 lakh, including a grant component and a loan component, along with support for entrepreneurship training and project monitoring.

Q. What is the grant and loan structure under Mukhyamantri Yuva Udyami Yojana?

Ans. Up to Rs. 5 lakh is provided as a grant that does not require repayment, while up to Rs. 5 lakh is provided as a loan carrying an interest rate of 1% per annum, as prescribed under the scheme guidelines.

Q. How is the loan repaid?

Ans. The loan component is generally repayable in 84 monthly instalments after the completion of the prescribed moratorium period under the scheme.

Q. Can more than one member of the same family avail benefits under this scheme?

Ans. No. Only one member from a family can receive benefits under Mukhyamantri Yuva Udyami Yojana. For this purpose, a family includes the applicant, spouse, and minor children.

Q. How can applicants apply for Mukhyamantri Yuva Udyami Yojana?

Ans. Applications are accepted online through the Udyami Portal. Applicants must complete registration, fill in the application form, upload the required documents, and submit the application online.

Q. Is entrepreneurship training mandatory under the scheme?

Ans. Yes. Selected applicants are required to participate in the entrepreneurship training programme prescribed by the Department of Industries before receiving financial assistance.

Q. What types of businesses can be established under the scheme?

Ans. Applicants can choose from various department-approved projects related to manufacturing, food processing, service-based activities, repair services, and traditional industries notified by the Department of Industries.

Q. What happens after the application is selected?

Ans. Selected applicants undergo document verification, entrepreneurship training, project approval, and other formalities before the sanctioned financial assistance is released.

Q. Where can applicants get help regarding the scheme?

Ans. Applicants can contact their nearest District Industries Centre (DIC), call the helpline number 1800-345-6214, or visit the official Udyami Portal for assistance and updates.

Tabassum

Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare scheme programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.