Mukhyamantri Udyami Yojana is a flagship entrepreneurship initiative of the Department of Industries, Government of Bihar. Rather than being a standalone scheme, it operates through five category-specific sub-schemes that provide financial assistance of up to Rs. 10 lakh to eligible entrepreneurs for establishing new enterprises. Applications are accepted online through the Udyami Portal under the relevant sub-scheme.
Bihar Mukhyamantri Udyami Yojana Highlights | |
|---|---|
| Programme Name | Mukhyamantri Udyami Yojana (MMUY) |
| Launch Year | 2021 |
| Nodal Department | Department of Industries |
| Programme Structure | Umbrella programme comprising 5 sub-schemes |
| Sub-Schemes Covered | SC/ST Udyami, EBC Udyami, Mahila Udyami, Yuva Udyami, Alpsankhyak Udyami |
| Objective | Promote self-employment and support new enterprise creation |
| Maximum Financial Assistance | Up to Rs. 10 lakh |
| Grant Support | Up to Rs. 5 lakh (non-repayable) |
| Loan Support | Up to Rs. 5 lakh (as per applicable sub-scheme norms) |
| Basic Eligibility | Bihar resident, 18–50 years, minimum 10+2/ITI/Polytechnic qualification |
| Business Entity Type | Proprietorship, Partnership Firm, LLP, or Private Limited Company |
| Fund Release | In multiple instalments linked to training and utilisation verification |
| Training Requirement | Mandatory entrepreneurship training for selected beneficiaries |
| Application Mode | Online |
| Application Portal | Udyami Portal |
| Selection Method | Computerised randomisation followed by document verification |
| Helpline Number | 1800-345-6214 |
| Official Website | udyami.bihar.gov.in |
Introduction of Bihar Mukhyamantri Udyami Yojana: A Brief Insight
Many aspiring entrepreneurs have business ideas and the willingness to work hard, but arranging the initial investment often becomes the biggest challenge. To address this gap, the Government of Bihar launched Mukhyamantri Udyami Yojana in 2021, creating a dedicated framework to support new entrepreneurs in establishing their own enterprises.
The initiative is implemented by the Department of Industries, Government of Bihar. Its primary objective is to promote self-employment, encourage entrepreneurship, and create sustainable livelihood opportunities for youth, women, and other eligible sections of society.
It is important to understand that Mukhyamantri Udyami Yojana is not a standalone scheme. Instead, it serves as an umbrella programme comprising five separate category-based sub-schemes. Applicants must apply under the sub-scheme that matches their eligibility category.
The five components include Mukhyamantri SC/ST Udyami Yojana, Mukhyamantri EBC Udyami Yojana, Mukhyamantri Mahila Udyami Yojana, Mukhyamantri Yuva Udyami Yojana, and Mukhyamantri Alpsankhyak Udyami Yojana.
Under these sub-schemes, selected beneficiaries can receive financial assistance of up to Rs. 10 lakh for setting up a new enterprise. The assistance includes a grant component and a loan component, with repayment terms varying according to the selected category.
The assistance is released in phases and linked with mandatory training programmes, utilisation certificate submissions, and project verification. This approach ensures that beneficiaries use the funds for the approved business activity and receive continuous guidance during implementation.
Applications are accepted online through the Udyami Portal. Applicants must select the appropriate sub-scheme, submit the required documents, and choose an eligible project from the approved list. Selection is carried out through a computerized process as per the guidelines issued by the department.
Applicants who are looking for additional financing opportunities can 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.
Entrepreneurs, job seekers, women, and aspiring business owners interested in similar initiatives can explore more programmes on our Bihar Government Welfare Schemes page.
Benefits Provided to Eligible Beneficiaries
Selected beneficiaries under the various Mukhyamantri Udyami Yojana sub-schemes receive financial assistance and business support from the Department of Industries, Government of Bihar, to help them establish and run their enterprises.
Financial Assistance Available
- Financial support of up to Rs. 10 lakh for the approved project
- Up to Rs. 5 lakh provided as a grant that does not require repayment
- Up to Rs. 5 lakh provided as a loan component
- The loan component is available at 0% interest under the SC/ST, EBC, Mahila, and Alpsankhyak Udyami sub-schemes
- Under Mukhyamantri Yuva Udyami Yojana, the loan component carries an interest rate of 1% per annum
Use of the First Instalment
- Up to Rs. 1.50 lakh can be utilised for project site development and basic infrastructure preparation
- Up to Rs. 25,000 can be used for electricity connection-related safety equipment
- Up to Rs. 25,000 can be utilised for other project-related preliminary expenses
- For rented premises, advance rent of up to six months or Rs. 50,000 (whichever is lower) may be considered as per scheme guidelines
Machinery and Equipment Support
- Beneficiaries can utilise up to 25% of the approved machinery cost with flexibility, subject to applicable guidelines
- Higher-capacity machinery may be purchased by contributing additional funds beyond the approved project cost
- Machinery purchases are considered based on valid GST invoices
Training and Handholding Support
- Entrepreneurs receive two phases of entrepreneurship training, each lasting six days
- Training is organised before the release of the respective instalments
- Project-specific guidance is provided through department-approved Detailed Project Reports (DPRs)
- Applicants receive support in understanding project implementation, financial management, and business operations
Eligibility Conditions Required to be Fulfilled
Individuals applying under any of the Mukhyamantri Udyami Yojana sub-schemes must satisfy the eligibility conditions prescribed by the Department of Industries, Government of Bihar. While the beneficiary category differs from one sub-scheme to another, several basic requirements remain common across all categories.
Common Eligibility Conditions
- Applicant should be a permanent resident of Bihar
- Applicant 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 should be registered as a Proprietorship Firm, Partnership Firm, LLP, or Private Limited Company
- In case of a proprietorship firm, the enterprise should operate using the applicant’s own PAN
- The project should be established within the applicant’s home district
- After selection of the project, modification of the approved project is generally not permitted
Category-Wise Eligibility
| Sub-Scheme | Eligible Applicants |
|---|---|
| Mukhyamantri SC/ST Udyami Yojana | Male and female applicants belonging to Scheduled Caste (SC) or Scheduled Tribe (ST) categories |
| Mukhyamantri EBC Udyami Yojana | Male and female applicants belonging to the Extremely Backward Class (BC-01) category |
| Mukhyamantri Mahila Udyami Yojana | Women applicants from eligible categories |
| Mukhyamantri Yuva Udyami Yojana | Male applicants belonging to General Category and Backward Class (BC-02) |
| Mukhyamantri Alpsankhyak Udyami Yojana | Male and female applicants belonging to notified Minority communities |
Note: Each sub-scheme is available under a separate category on the Udyami Portal and follows its own guidelines. Applicants should select the category that matches their eligibility profile before submitting the application.
Documents Required to be Attached
Applicants applying under any of the Mukhyamantri Udyami Yojana sub-schemes should keep the following documents ready while submitting their application through the Udyami Portal:
- Matriculation (10th) Certificate showing the applicant’s date of birth
- Intermediate/Equivalent qualification certificate such as 10+2, ITI, or Polytechnic Diploma
- Caste Certificate, wherever applicable under the respective sub-scheme
- Permanent Residence Certificate of Bihar
- Disability Certificate, if applying under the Divyang category
- Recent passport-size photograph/live photograph of the applicant
- Applicant’s signature in the prescribed format
Depending on the proposed business activity, some project categories may require additional documents. For example, projects such as Medical Checkup Centres, Banana Fibre Manufacturing Units, and Electric Vehicle Assembly Units may require relevant training, technical qualification, or experience certificates.
Note: Applicants should check the latest project guidelines available on the Udyami Portal before submitting the application, as document requirements may vary for different sub-schemes and business activities.
How Beneficiaries Can Apply to Avail the Benefit of the Scheme
Mukhyamantri Udyami Yojana includes 5 different sub-schemes. Before applying, you must first identify the sub-scheme that matches your category and then submit your application through the Udyami Portal.
Step 1: Check which sub-scheme applies to you such as SC/ST Udyami Yojana, EBC Udyami Yojana, Mahila Udyami Yojana, Yuva Udyami Yojana, or Alpsankhyak Udyami Yojana.
Step 2: Visit the official Udyami Portal during the application period announced for your respective sub-scheme.
Step 3: Complete the registration process using your mobile number and verify it through OTP.
Step 4: Log in to the portal and select the sub-scheme for which you are eligible.
Step 5: Enter your personal, educational, and category-related details in the online application form.
Step 6: Select your preferred project from the approved project list available under the chosen sub-scheme.
Step 7: Upload the required documents, including educational certificates, residence certificate, photograph, signature, and category certificates wherever applicable.
Step 8: Review all details carefully and submit the application form online.
Selection Process
Step 9: The department prepares a district-wise list of eligible applicants and conducts computerized random selection as per the approved targets.
Step 10: Selected applications are verified by the department to confirm eligibility and document authenticity.
Step 11: Applicants who successfully clear the verification process receive final selection approval.
Training and Fund Release
Step 12: Attend the mandatory 6-day training programme conducted for selected beneficiaries.
Step 13: After completing the training, the first installment is transferred to the current account of your business unit.
Step 14: Utilize the funds for approved project activities and upload the Utilization Certificate on the portal within the prescribed timeline.
Step 15: After verification of fund utilization, attend the second phase of training and become eligible for the next installment.
Step 16: Once subsequent utilization documents are approved, the remaining installments are released as per scheme guidelines.
Important: Establish the business unit only in your home district and use the sanctioned amount strictly for approved project purposes. Keep all major transactions through banking channels and preserve invoices and payment records for future verification.
Approved Project Categories – What Types of Businesses Can You Choose
Applicants applying under any of the five sub-schemes covered by Mukhyamantri Udyami Yojana must select a project from the list approved by the Department of Industries. These projects are grouped into three categories based on market demand, business potential, and district-level feasibility.
Category A – High Demand Projects (23 Project Types)
This category includes businesses with strong market demand and wider commercial opportunities. Approved projects include Oil Mill, Bakery Products Manufacturing, Spice Processing, Flour and Besan Production, Hotel and Restaurant, Medical Checkup Centre, Cyber Café and IT Business Centre, Auto Garage, Flex Printing Unit, Jam/Jelly/Sauce Manufacturing, Ice Cream and Dairy Products, Carpentry Unit, Steel Furniture Manufacturing, Agricultural Equipment Manufacturing, Cattle and Poultry Feed Production, Cement Products, Fly Ash Bricks, Sports Shoes and PVC Footwear Manufacturing, and Bamboo or Cane Furniture Units.
Category B – Medium Demand Projects (23 Project Types)
This category covers projects with stable market demand and good business prospects. Examples include Poha and Chuda Production, Makhana Processing, Dal Mill, Corn Flakes Manufacturing, Sattu Production, Nail Manufacturing Unit, Rolling Shutter Manufacturing, Dry Cleaning Services, Sanitary Napkin and Diaper Production, Detergent Powder Manufacturing, Plastic Product Manufacturing, Powerloom Units, Paper Bag and Paper Plate Production, Leather Products, and Readymade Garment Manufacturing.
Category C – Emerging and Specialized Projects (12 Project Types)
This category includes innovative and specialized business activities such as Honey Processing, Iron Ring Manufacturing, Cooler/Fan/Heater Assembly, LED Bulb Production, Electric Switch and Socket Manufacturing, Electric Vehicle Assembly, Sports Shoes Manufacturing, Banana Fibre Production, Soya-Based Products, Jute-Based Products, Mini Rice Mill, and Agriculture Drone-as-a-Service.
Important: Applicants selecting projects such as Medical Checkup Centre, Banana Fibre Manufacturing, or Electric Vehicle Assembly must submit a relevant training certificate, technical qualification, or work experience certificate along with their application. Applications for these projects may not be considered complete without the required supporting documents.
Note: The approved project list is notified by the Department of Industries and may be revised from time to time. Applicants should carefully review the latest project list available on the Udyami Portal before submitting their application under the relevant sub-scheme.
Important Links Available of the Scheme
- Udyami Portal Official Application Portal, Department of Industries
- About Mukhyamantri Udyami Yojana
- List of Approved Projects (Category A, B, C)
- Department of Industries, Government of Bihar
- Bihar Mukhyamantri Udyami Yojana Guidelines
Contact Details in Case of Help Needed
- Nodal Department: Department of Industries, Government of Bihar
- Address: Directorate of Micro, Small and Medium Enterprises, Industries Department, Vikas Bhawan, 2nd Floor, New Secretariat, Nehru Path, Patna, Bihar – 800015
- Helpline: 1800-345-6214
- Email: udi.bih@nic.in
- Local Level: Contact your nearest District Industries Centre (DIC)
Frequently Asked Questions (FAQs)
Q. What is Mukhyamantri Udyami Yojana?
Ans. Mukhyamantri Udyami Yojana is an umbrella programme of the Department of Industries, Government of Bihar. It operates through five separate sub-schemes and provides financial support of up to Rs. 10 lakh to eligible applicants for establishing new enterprises.
Q. Can I apply directly under Mukhyamantri Udyami Yojana?
Ans. No. Applicants must apply under the specific sub-scheme that matches their category, such as SC/ST, EBC, Mahila, Yuva, or Alpsankhyak Udyami Yojana.
Q. Which sub-scheme should I choose while applying?
Ans. You should select the sub-scheme that matches your category and eligibility. Applying under an incorrect category can lead to rejection during verification.
Q. What are the five sub-schemes available under this programme?
Ans. The five components are Mukhyamantri SC/ST Udyami Yojana, Mukhyamantri EBC Udyami Yojana, Mukhyamantri Mahila Udyami Yojana, Mukhyamantri Yuva Udyami Yojana, and Mukhyamantri Alpsankhyak Udyami Yojana.
Q. How much financial assistance is provided?
Ans. Selected beneficiaries can receive assistance of up to Rs. 10 lakh, including a grant component of up to Rs. 5 lakh and a loan component of up to Rs. 5 lakh.
Q. Is the entire amount repayable?
Ans. No. The grant portion does not have to be repaid. Only the loan portion is repayable as per the terms applicable to the selected sub-scheme.
Q. How is the assistance released?
Ans. The approved amount is generally released in multiple instalments after completion of mandatory training and submission of utilisation details for previously released funds.
Q. Can I change my project after submitting the application?
Ans. No. Once a project is selected and submitted through the portal, it cannot be changed later.
Q. Is training compulsory?
Ans. Yes. Selected applicants must complete the prescribed training programmes. Failure to attend the training within the permitted opportunities may affect the candidature.
Q. Can I establish my unit in any district of Bihar?
Ans. No. The enterprise must be established in the applicant’s home district as per the scheme guidelines.
Q. What happens if the utilisation certificate is not submitted?
Ans. Delay in submitting the utilisation certificate may hold up the release of subsequent instalments and can affect further benefits under the selected sub-scheme.
Q. What if the funds are used for purposes other than the approved project?
Ans. The government may initiate recovery proceedings and take action as per the applicable rules if the assistance is misused or the unit is not established as approved.
Q. Where can I get help regarding these sub-schemes?
Ans. You can contact your nearest District Industries Centre (DIC), call the helpline at 1800-345-6214, or email udi-bihar@gov.in for assistance related to applications and implementation.
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.