In a bid to foster entrepreneurship among the youth of Uttar Pradesh, Chief Minister Yogi Adityanath is set to unveil his ambitious scheme, titled the ‘Mukhyamantri Yuva Udyami Vikas Abhiyan’ (MYUVA), imminently.
The Chief Minister has issued directives to officials of the Micro, Small, and Medium Enterprises (MSME) Department to swiftly formulate a comprehensive action plan for the initiative and present it to the government at the earliest.
Under this program, the state government aims to nurture one lakh young entrepreneurs annually by extending interest-free loans for projects of up to Rs 5 lakh. To support this endeavor, the government has earmarked Rs 1,000 crore in the budget for the fiscal year 2024-25.
According to a government spokesperson, this innovative scheme is tailored to empower educated and skilled youth across the state, facilitating self-employment opportunities and catalyzing the establishment of new MSMEs.
By encouraging entrepreneurship, the initiative seeks to create employment opportunities in both rural and urban areas.
Under the MYUVA scheme, interest-free loans of up to Rs 5 lakh will be extended to projects in the industry and service sectors. The objective is to directly benefit one million units over the next decade by financing 100,000 units annually.
Beneficiaries who have undergone training through various government-run schemes, 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 (Kaushal Unnayan) program facilitated by the Uttar Pradesh Skill Development Mission, will be eligible for assistance.
Furthermore, youth possessing certificates, diplomas, and degrees from educational institutions will also be entitled to benefits under this scheme.
Upon successful repayment of the initial loan, units will qualify for second-stage financing, where a composite loan of double the initial amount or up to Rs 7.50 lakh can be provided. Additionally, provisions for grants have been made to encourage digital transactions.
The application process for the scheme will be conducted online, with Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) coverage extended to all loans acquired from banks and financial institutions. Funding for this initiative will be accessible from nationalized, scheduled, rural banks, SIDBI, and all financial institutions notified by the Reserve Bank of India, the spokesperson added.