Mukhyamantri Yuva Udyami Yojana

मुख्यमंत्री युवा उद्यमी योजना

The Government of India announces various schemes to encourage self-employment, which is a thriving factor for India’s economy.

Mukhyamantri Bihar Yuva Udyami Yojana has been launched to encourage entrepreneurs. To establish self-employment, financial assistance is provided to the young citizens of Bihar.

Key Points

Under this new scheme, a loan of Rs 1 lakh to 50 lakh will be given to the youth setting up manufacturing units and enterprises, while for the service sector, a loan of Rs 1 lakh to 25 lakh will be given.
The benefit of Mukhyamantri Udyam Kranti Yojana will be available only for the establishment of new enterprises. The provisions of the scheme will remain the same for all categories of applicants. For financial assistance in this scheme, the applicant's age should be 18 to 40 years and the applicant should have passed the minimum 12th class as an educational qualification.
The annual income of the family should not exceed Rs.12 lakhs. Eligibility will be given to those applicants who are not themselves defaulters of any bank or any financial institution. Similarly, the applicant should not be a beneficiary of any other self-employment scheme of the State or Central Government at present.
In this scheme, under the interest subsidy scheme, interest subsidy at the rate of 3 percent per annum will be given to all categories of beneficiaries on the remaining loan disbursed by the bank, with a maximum moratorium period of 7 years.
No interest subsidy will be admissible for the period during which the loan account of the beneficiary remains NPA. Reimbursement of interest subsidy will be given on an annual basis.
Under the scheme, the guarantee fee will be given at the prevailing rate for a maximum period of 7 years along with the moratorium period. The scheme will be implemented by the Department of Micro, Small and Medium Enterprises. The implementation of this scheme will be done through a consolidated portal.
The benefit of this scheme will be available only for starting industries/enterprises

Eligibility Criteria

Entrepreneurs who satisfy the following criteria can apply for this scheme.

To exploit the scheme benefits, the applicant should be a permanent resident of Bihar.
The applicant should have qualified 10th standard to be eligible.
The age limit of the applicant should be from 18 to 40 years to be applicable.
The applicant referred to as a defaulter by any of the nationalized or private sector banks is not eligible.
Applicants who are already a beneficiary of any State Government schemes or any other entrepreneur schemes are not allowed to apply for this scheme.
Apart from establishing a manufacturing or service industry, the scheme is made unavailable for any other business activities.

Documents Required

The following documents should be attached along with the application form if applied offline, whereas scanned copies of the document are required to be uploaded while applying online.

Resident certificate of Bihar
Project Report
Aadhar Card
Applicant’s photograph
Birth certificate
Academic qualification certificate
Caste certificate
If the rental / renting house/land is rented for the enterprise
Current rate quotation of machinery/equipment/furnishing etc. for the enterprise
Enterprise development training certificate (if applicable)

You Can Also Read These Policies Features:

Startup Policy 2022, PMFME Scheme, Bihar Agri Investment Promotion Policy, PMEGP Scheme, Bihar Industrial Investment Promotion Policy 2022, Industrial Policy 2016

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Bihar Industrial Investment Promotion Policy (Textiles & Leather), 2022

बिहार औद्योगिक निवेश प्रोत्साहन योजना (वस्त्र और चमड़ा), 2022

The state cabinet, chaired by Chief Minister Nitish Kumar on May 26, 2022, approved the proposal to implement the Bihar Industrial Investment Promotion Policy (Textiles and Leather), 2022.

In this policy, big concessions have been announced for the industries investing in the textile and leather sector in Bihar.

Focus on Employment

Focus is on providing employment to the youth along with the industrial development of the state.

Bihar’s Textile and Leather Policy includes provision of many incentives including capital grant, employment grant, power grant, freight grant, patent grant, skill development grant, etc.

Bihar will give tough competition to Bangladesh and Vietnam

Industries Minister Syed Shahnawaz Hussain said at the launch of the policy that in the coming times, Bihar will give tough competition to Bangladesh and Vietnam in the textile sector. He said that the companies which will invest, they will get a big market of about 54 crore population of many neighboring countries like Nepal, Bhutan including the northeastern states.

Key Points

State Industries Minister Shahnawaz Hussain said that through this policy, Bihar will be established as a hub in the field of textile and leather industry.
The textile and leather policy provides for a wide range of incentives including capital grant, employment grant, power grant, freight grant, patent grant, skill development grant.
There are provisions like interest subvention on loan, reimbursement of SGST, waiver of stamp duty, registration, exemption on land conversion.
The state government will provide a grant of up to Rs.10 crore to entrepreneurs and investors who want to invest in the textile and leather industry in Bihar.
Apart from this, the government will also provide a salary support of three thousand to five thousand rupees per month for 5 years.
30% transport subsidy will be given to the respective units for export.
Under the new policy, a grant of Rs. 10 lakh per annum will be given on freight movement for five years.
A grant of 50 percent of the registration expenses will be given on patenting your products, subject to a maximum of Rs. 10 lakh.

You Can Also Read These Policies Information:

Startup Policy 2022, Industrial Policy 2016, Bihar Agri Investment Promotion Policy, PMFME Scheme, PMEGP Scheme

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Prime Minister's Employment Generation Programme (PMEGP)

प्रधानमंत्री रोजगार सृजन कार्यक्रम

What is the PMEGP Scheme?

Prime Minister’s Employment Generation Programme (PMEGP) is a major credit-linked subsidy scheme launched by merging two schemes namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generating employment opportunities by establishing micro-enterprises in urban and rural areas in the non-farm sector.

The scheme was launched in 2008.
It is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).
The programme is being implemented by the Khadi and Village Industries Commission (KVIC) at the national level. It is the single nodal agency for the implementation of the programme.
It allows entrepreneurs to set up factories or units.
The Scheme is being implemented through banks, District Industries Centers (DICs), State KVIC Directorates and State Khadi and Village Industries Boards (KVIBs) at the state level.
Individuals above the age of 18 years, Self Help Groups (SHGs), Cooperative Societies involved in the production, and institutions that are registered under the Societies Registration Act of 1860 are eligible for benefits under this programme.
Assistance is provided under the scheme only to the new units, units that have availed government subsidies under either the state or the central government schemes; existing units are not eligible for subsidy under PMEGP.
Physically disabled, OBC, SC/STs, women, northeastern region (NER) applicants in rural areas are eligible for a higher rate of subsidy.

Objectives of PMEGP

Generation of sustainable and continuous employment opportunities in both rural as well as urban areas in the country.
Provision of sustainable and continuous employment to a wide segment of prospective and traditional artisans, unemployed youth in rural and urban areas by establishing micro-enterprises for employment generation.
Smooth flow of credit to the micro sector by facilitating the participation of financial institutions.

Features of the PMEGP Scheme

Any industry including coir based projects (excluding those mentioned in the negative list) can take advantage of this scheme
The per capita investment under the scheme should not exceed Rs 1 lakh in plain areas and Rs 1.5 lakh in hilly areas.Assistance under the PMEGP is only available to new units that are to be established
There is no income ceiling for setting up projects
Existing units or units that are already availing any government subsidy (State or Central) are ineligible
Any industry including coir based projects (excluding those mentioned in the negative list) can take advantage of this scheme

Eligibility:

Any individual, above 18 years of age.
Only new projects/units are considered for sanction of loans.
Self-help groups that have not availed benefits under any other public scheme, societies, production co-operative societies, and charitable trusts.

Government Subsidy:

Rural Areas: 25% for general category and 35% for special category, which includes SC/ST/OBC/Minorities, NER, Hill and Border Areas, transgender, physically disabled, north eastern region, aspirational and border district applicants.
Urban Areas: 15% for general category and 25% for special category.

You Can Also Read This Policies: Bihar Agri Investment Promotion Policy, PMFME Scheme, Startup Policy 2022, Industrial Policy 2016

Role of Banks:

Loans are provided by Public Sector Banks, Regional Rural Banks, Co-operative Banks and Private Scheduled Commercial Banks approved by respective State Task Force Committee.

Significance:

The scheme will create sustainable estimated employment opportunities for about 40 lakh persons in five financial years.
It facilitates generation of employment opportunities for unemployed youth across the country by assisting setting up of micro-enterprises in the non-farm sector.
Besides providing financial support, the government needs to conduct an intensive training programme to help potential entrepreneurs focus on the right market and right products.
Government has to focus on the micro segment with better technology and marketing support.

FAQs

1. What is the Prime Minister Employment Generation?

Prime Minister’s Employment Generation Programme (PMEGP) is a major credit-linked subsidy scheme launched by merging two schemes namely:

Prime Minister’s Rojgar Yojana (PMRY) and
Rural Employment Generation Programme (REGP)

PMEGP will be generating employment opportunities by establishing micro-enterprises in urban and rural areas in the non-farm sector.

2. Who is eligible for Prime Minister employment Generation?

Any individual, above 18 years of age.
The beneficiaries should have passed at least VIII standard, for setting up of projects costing above Rs.10 lakhs in the manufacturing sector and above Rs. 5 lakhs in the business/service sector.

3. How do I get a Pmegp subsidy?

Under the PMEGP project, beneficiaries are required to pay a minimum portion for the project cost and avail subsidy on loan taken from the banks linked with the scheme. The subsidy is decided based on the category and area to which the applicant belongs.

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Industrial Policy 2016

बिहार औद्योगिक निवेश प्रोत्साहन नीति 2016

Industrial Policy is the set of standards and measures set by the Government to evaluate the progress of the manufacturing sector that ultimately enhances economic growth and development of the country.

Objectives of Industrial Policy

To maintain steady growth in productivity.
To create more employment opportunities.
Utilize the available human resources better
To accelerate the progress of the country through different means

To achieve this goal the State Government has formulated the Industrial Investment Promotion Policy, 2016.

The main strategy for achieving the goals of this policy is to focus on development of support infrastructure, prioritizing core sectors of future development with emphasis on advanced technology, skill development, a modified structured package of assistance and balanced regional development i.e. uniformly extending the benefits of investment to all geographical areas of the State.
This policy also focuses on uplifting the socially marginalized groups & women entrepreneurs by offering specialized packages of assistance to them.
The policy has well-defined provisions for effective implementation, monitoring & grievance redressal for the entrepreneurs.
Thus the Industrial Investment Promotion Policy, 2016 has an integrated approach towards industrial development in the state and offers a wide range of benefits to the investors coming to Bihar.

Factors Favoring For Investment In Bihar :

Bihar is one of the fastest growing states in India. During the period 2005-06 to 2014-15, the GSDP of Bihar at constant prices grew annually at 10.5 percent, which is one of the highest among all major Indian states.
Bihar has a unique location specific advantage because of its proximity to the vast markets of eastern and northern India, access to ports such as Kolkata and Haldia and to raw material sources and mineral reserves from the neighboring states.
Bihar is primarily an agrarian state and is one of the largest producers of vegetables and fruits in India. Bihar is endowed with water resources – both ground and surface water– as it receives an average rainfall of 1009 mm each year. Ganga is the main river that flows through the state, joined by tributaries that originate in the Himalayas. Some of the other major rivers are Saryu, Gandak, Budhi Gandak, Bagmati, Kamla and Mahananda.
The state has a large base of cost effective, industrial labor, making it an ideal destination for a wide range of industries.
Food processing, dairy, manufacturing, healthcare are some of the fastest growing industries in the state.
The State has planned initiatives for the development of other sectors such as agricultural implements and small machine manufacturing, tourism, information technology, renewable energy etc.
The State Government has resolved to connect the capital city of Patna to the remotest areas in the state, so that people can reach the capital within a maximum of six hours from any place. The total length of the State Highways (SH) is 4253 km (in 2015) and approximately 65% of these highways are double-lane roads. The total length of National Highways in the state is 4595 km (as of 2015) and efforts are being made to further increase the network at a rapid pace.
Golden Quadrilateral Highway that passes through Bihar is in close proximity to some of the districts, viz. Kaimur, Sasaram, Aurangabad Gaya & Patna.
It provides connectivity to major industrial, agricultural, and cultural centers of India. The length of the Golden Quadrilateral Highway that passes through the State, i.e. 204 km, has been widened.
Eastern Dedicated Freight Corridor passes through the state and would connect Bihar with West Bengal, Jharkhand, Uttar Pradesh, Haryana and Punjab and is expected to be immensely beneficial for industries in the state.
It is targeting to achieve a total generating capacity of 1330 MW by 2016-17, 3310 MW by 2017-18 and 7270 MW by 2021-22. In order to turn its vision into reality, Bihar State Power Generation Corporation Limited (BSPGCL) has entered into joint ventures with reputed companies in the power sector, like National Thermal Power Corporation (NTPC) and National Hydro Power Corporation (NHPC). Some of the major power sector projects, at different stages of commissioning, are Nabinagar Stage-1 Plant, power projects in Buxar, Bhagalpur, Lakhisarai and Banka.
Strong emphasis is being placed on Micro, Small and Medium Enterprises (MSME). Cluster based development is being promoted by the State Government and it is in the process of setting up specialized clusters for development of leather, small machinery, plastics, garments, jute & textiles, and food processing to boost the manufacturing sector and well-being of MSME entrepreneurs.

Mission Of Bihar Industrial Investment Promotion Policy, 2016

Achieve industrial development growth rate of 15% per annum
Increase contribution of the secondary sector to the GSDP to more than 25% in line with the National Manufacturing Policy and ―Make in India‖ initiative
Create direct employment opportunities for 5 lakh people across all economic sectors
Create high-end infrastructure facilities to attract investments in the state
Eradicate regional industrial imbalance by uniformly extending the benefits of investment to all geographical areas of the state
Provide relatively more economic benefits to the priority sections of society such as SC/ST, women, differently abled, war widows, acid attack victims and third gender entrepreneurs.
Ensure that industries facilitate skill development of local people, so as to achieve the target of 15 million skilled youths as per the ―Seven commitments‖ of the State Government.
Increase the competitiveness of MSMEs and adoption of ―Zero Defect Zero Effect‖ manufacturing practice

You Can Also Read This Policies: Bihar Agri Investment Promotion Policy, PMFME Scheme, Startup Policy 2022

Strategy Of Bihar Industrial Investment Promotion Policy, 2016

Encouraging investments that add value to the farm produce and increase the income of the cultivators through processing and preservation of food crops, particularly vegetables and fruit crops.
Utilizing the traditional skills of artisans by finding a wider market for handloom and handicrafts.
Investing in skill development and technical education so as to make Bihar the preferred source for skilled manpower – for which an acute shortage has been forecasted not only in different parts of the country but even markets abroad.
Creating preference for Micro, Small and Medium Enterprises (MSME) in view of their limited requirement of land, and their capacity to absorb more labor per unit of capital and energy.
Encouraging cluster development in MSME sectors.
Emphasizing on industries that rely on local production, local skills, and local consumption.
Providing preference to low energy and non-polluting industries
Encouraging large scale industrial units in the proposed Integrated Manufacturing Cluster under the proposed Amritsar-Kolkata- Industrial Corridor (AKIC). While the State Government will assist investors in finding suitable land for setting up units, they will be expected to find land on their own for units outside these designated areas.
Encouraging new investment in developing heritage tourism for which the state offers tremendous opportunities.
Investments in developing new facilities and/or managing existing facilities under PPP mode will be encouraged.
Promoting development of ancillary units to cater to the upcoming investments in public and private sector.

FAQs

Q1. What is the aim of industrial policy?

Ans. The industrial policy seeks to provide a framework of rules, regulations and reservation of spheres of activity for the public and the private sectors. This is aimed at reducing the monopolistic tendencies and preventing concentration of economic power in the hands of a few big industrial houses.

Q2. How does industrial policy affect the economy?

Ans. By using a set of means, such as credit, taxation, subsidies and entry threshold reduction, industrial policy can decrease market failures caused by factors such as externalities and imperfect market mechanisms, improve resource allocation efficiency and promote industrial development.

Q3. What are the advantages of industrial policy?

Ans. The shift of capital and human resources towards manufacturing provides at least four major benefits: productivity growth, development of more and deeper linkages, economies of scale and new export opportunities.

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