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Mukhyamantri Udyami Yojana is the Bihar Industries Department scheme that gives selected young people up to 10 lakh rupees to set up a small unit from an approved project list: up to 5 lakh rupees as a grant and up to 5 lakh rupees as an interest free loan. For the Yuva category the loan carries 1 percent interest.
Applications are taken online on the udyami portal only in a set window each year, and selection is by computerised lottery against district targets. The window for this financial year has closed and the lists have been published, so this page explains how the scheme works, the categories, the papers and the training and instalment rules for those selected, and what to watch for in the next round.
At a glance
Run by
Directorate of Micro, Small and Medium Enterprises, Department of Industries, BiharHelp
Up to 10 lakh rupees: 50 percent grant (max 5 lakh), 50 percent loan (max 5 lakh)Loan interest
Nil; 1 percent for the Yuva componentAge
18 to 50 yearsEducation
At least Intermediate (10+2), ITI, polytechnic diploma or equalSelection
Computerised lottery against district targets, then document checkPortal
Helpline
Toll free 1800 345 6214, working days 10 am to 5 pm
Six categories under the Bihar udyami yojana
The scheme is one umbrella with six parts. You apply under the one that matches you:
| Component | Who can apply |
|---|---|
| Mukhyamantri SC/ST Udyami Yojana | Men and women of Scheduled Castes and Scheduled Tribes |
| Mukhyamantri Ati Pichhda Varg Udyami Yojana | Men and women of the extremely backward classes (BC-1); minority applicants apply under their own part |
| Mukhyamantri Mahila Udyami Yojana | Women of every category |
| Mukhyamantri Yuva Udyami Yojana | Men of the general category and backward classes (BC-2) |
| Mukhyamantri Alpsankhyak Udyami Yojana | Men and women of minority communities |
| Mukhyamantri Divyangjan Udyami Yojana | Persons of any category with a UDID card showing at least 40 percent disability |
For this round the guideline set targets of 2,000 to 8,000 per component for the first four, 1,247 for minorities and 100 for persons with disabilities, about 9,347 in all, spread by district.
Who can apply for mukhyamantri udyami yojana
- A permanent resident of Bihar.
- Passed at least Intermediate or 10+2, or ITI, or a polytechnic diploma, or an equal course.
- Aged 18 to 50 years.
- The unit is a proprietorship, partnership firm, LLP or private limited company. A proprietorship must be on the applicant's own PAN.
- The unit must be set up in the applicant's home district, or the application is cancelled.
The project must come from the approved udyami yojana list published with the guideline, and it cannot be changed after selection. For the medical testing lab project, a DMLT or BMLT certificate must be uploaded.
Documents asked at the application stage
- Matriculation certificate showing date of birth
- Intermediate or equal pass certificate
- Caste certificate, where the category needs it
- Permanent residence certificate
- UDID card for the disability category
- A live photograph and signature
After the lottery, only those on the provisional list upload these for scrutiny, by the deadline in the portal notice. Missing that date cancels the candidature.
How the lottery and lists work
- The portal opens for online applications for a few weeks, announced in a notice on udyami.bihar.gov.in.
- After it closes, a selection committee runs a computerised randomisation, district by district, to pick a provisional list against each target.
- Provisionally selected applicants upload documents. A team at headquarters checks them.
- A draft list and then a final selected list are published on the scrutiny results page. A waiting list may also be used.
Because selection is by lottery, meeting the eligibility rules does not guarantee a place.
Training and the three instalments
Selected applicants get the money in three parts, each tied to training or proof of spending:
- First phase training: a 6 day non residential course. You get two chances; missing both cancels the selection.
- First instalment: paid by RTGS or NEFT into a current account in the unit's name. It is for preparing the site (up to 1.5 lakh rupees), electricity connection and safety kit (25,000 rupees) and other items (25,000 rupees). If you rent the site, up to 6 months' rent or 50,000 rupees, whichever is less, can be paid in advance, but not to parents or grandparents.
- Second phase training after your utilisation certificate for the first instalment is accepted. It must be uploaded within 90 days of receiving the money.
- Second and third instalments for machinery and working costs, again after utilisation certificates are verified. A quarter of the machinery cost at most may be spent on machines of your choice with a GST invoice.
Payments above 10,000 rupees from the project money must be made online, by cheque or DD, not in cash. The portal also carries notices asking earlier batches to upload their utilisation certificates by a set date.
Repaying the loan half
One year after the later instalments are paid, the beneficiary starts repaying the loan part, which is 50 percent of the project amount, in instalments through the online payment gateway on the udyami portal. If someone takes the money and does not set up the unit, or misuses it, the department recovers the whole amount as a public demand. Missing repayment dates also leads to action under the rules.
On a 10 lakh rupees project, 5 lakh rupees is grant and is not repaid. The other 5 lakh rupees is repaid in instalments, with no interest for most components and 1 percent for Yuva.
Bihar Laghu Udyami Yojana and other udyami yojana names
Bihar Laghu Udyami Yojana is a separate scheme on the same portal for very poor families, with a grant of up to 2 lakh rupees paid in three instalments for a small business from its own tool list. Reports describe it as aimed at families with monthly income of about 6,000 rupees or less; check the scheme document on the portal for the exact rule.
There is no central scheme called pradhan mantri udyami yojana or pm udyami yojana. People using those words usually want central help such as PMFME for food units or PM Vishwakarma for artisans. The mahila udyami yojana searches in Bihar point to the Mukhyamantri Mahila Udyami Yojana component above. Uttar Pradesh has its own loan scheme, covered on our CM Yuva Udyami UP page.
Status, problems and helpline
| Situation | Reason | Action |
|---|---|---|
| Name not in provisional list | Not picked in the lottery | Apply again in the next window if still eligible |
| Name dropped from final list | Documents missing or not matching | Read the scrutiny remark on the portal |
| Training message not received | Wrong email or mobile in the form | Call the helpline with your registration number |
| Next instalment held | Utilisation certificate pending or rejected | Upload it and contact the District Industries Centre |
The toll free helpline is 1800 345 6214. The District Industries Centre in your district can also guide you. Browse youth and job help in other states from our state schemes list.
Frequently asked questions
Is the udyami yojana list of projects fixed?
Yes. You choose from the project list approved by the selection committee and published with the guideline. The project cannot be changed after selection.
Can I apply under mukhyamantri mahila udyami yojana if I am from a general category?
Yes. The Mahila component is open to women of every category.
Is the cm udyami yojana loan interest free?
For most components, yes. In the Yuva component the loan carries 1 percent interest.
When does the next Bihar udyami yojana window open?
The department announces each window by notice on the udyami portal. This year's window has closed; watch the portal notices rather than social media posts.
Can I set up the unit in Patna if my home is in another district?
No. The guideline says the unit must be set up in the district where you are a permanent resident.
Do I get all 10 lakh at once?
No. The money comes in three instalments, each after training or a verified utilisation certificate.
What is laghu udyami yojana?
Bihar Laghu Udyami Yojana is a separate grant of up to 2 lakh rupees in three instalments for very poor families, applied for on the same udyami portal.
Official sources
- Udyami portal, Department of Industries, Biharudyami.bihar.gov.in
- Guideline for MMUY for this financial year (Annexure II)udyami.bihar.gov.in
Rules, amounts and portals can change. Check the official source before you apply or deposit.