The Government of Bihar has launched several entrepreneurship-focused schemes under the Mukhyamantri Udyami Yojana (MUY) for the financial year 2024–25 to promote self-employment, uplift unemployed youth, and support small industries across the state. These schemes aim to integrate the youth into the mainstream economy by helping them set up viable business units through a combination of grants and interest-free loans.
The programme covers five major components:
- Mukhyamantri SC/ST Udyami Yojana
- Mukhyamantri Extremely Backward Class (EBC) Udyami Yojana
- Mukhyamantri Women Udyami Yojana
- Mukhyamantri Youth Udyami Yojana
- Mukhyamantri Minority Udyami Yojana
For FY 2024–25, a total of 9,247 applicants will be selected across different categories.
Scheme Targets for 2024–25
Under the four major components (SC/ST, EBC, Youth, Women), 2,000 beneficiaries per component will be selected—totaling 8,000.
Under the Minority Udyami Yojana, 1,247 beneficiaries will be selected.
Thus, the combined annual selection target stands at 9,247 applicants.
To ensure feasibility and market success, projects listed under the scheme have been divided into Category A, B, and C, based on district-level feedback regarding relevance and demand.
Project Categories
Category A (High Relevance Projects)
A total of 23 projects fall under this category, with 5,000 beneficiaries to be selected. These are considered highly viable based on market demand and district feedback.
Key projects include: oil mills, bakery products, spice manufacturing, flour and besan production, restaurants/dhabas, notebook manufacturing, medical diagnostic labs, cyber cafes, auto garages, flex printing, jam/jelly/sauce units, dairy and ice cream products, carpentry works, steel furniture, agricultural equipment fabrication, cattle/poultry feed, cement tiles, fly ash bricks, sports footwear, bamboo crafts, and more.
Category B (Moderate Relevance Projects)
This category includes 23 projects, with 3,500 beneficiaries. These projects have moderate market demand.
Major units include: poha/chura production, makhana processing, dal mill, corn flakes, sattu production, CNC carpentry, nail manufacturing, rolling shutter works, vehicle body building, feed manufacturing, notebook units with edge-square machines, dry cleaning, sanitary napkin manufacturing, detergent powder, plastic items, paver blocks, fly ash bricks, powerloom units, paper bags/plates, leather products, and readymade garments.
Category C (Satisfactory Relevance Projects)
This category includes 12 projects, with 747 beneficiaries.
Key projects: honey processing, iron rings for construction, cooler/fan/heater assembling, LED bulb production, electrical switches and sockets, electric vehicle assembling, sports shoes, banana fibre products, soya products, jute items, mini rice mill, and agriculture drones as a service.
Special Note:
Applicants choosing Medical Diagnostic Lab, Banana Fibre Unit, or Electric Vehicle Assembling Unit must upload training/experience certificates related to the project.
Eligibility Criteria
To apply under Mukhyamantri Udyami Yojana 2024–25, the applicant must:
- Be a permanent resident of Bihar.
- Have passed at least 10+2, ITI, Polytechnic Diploma, or equivalent.
- Be 18 to 50 years of age.
- Register the unit as Proprietorship, Partnership, LLP, or Pvt. Ltd. Company.
- Proprietorship firms must be operated under the applicant’s personal PAN.
Category-wise Eligibility
- SC/ST Udyami Yojana: For SC/ST male and female applicants.
- EBC Udyami Yojana: For Extremely Backward Class (BC-01) applicants.
- Women Udyami Yojana: For women from all categories.
- Youth Udyami Yojana: For General and Backward Class (BC-02) male applicants.
- Minority Udyami Yojana: For male and female applicants belonging to minority communities.
Required Documents
Applicants must upload the following documents:
- Matriculation certificate (with Date of Birth)
- Intermediate/ITI/Diploma certificate
- Caste certificate
- Permanent residence certificate
- Disability certificate (if applicable)
- Live photograph of the applicant
- Applicant’s signature
Application & Selection Process
The application process for MUY 2024–25 is entirely online through the official portal:
Step-by-Step Procedure
- Apply online Official Website.
- Applications will be shortlisted based on district-wise targets.
- Preliminary selection will be done through computerized randomization.
- Selected applications will undergo scrutiny at the headquarters level.
- Final selection will be made based on document verification and eligibility.
Important Notes:
- The project must be set up only in the applicant’s home district; otherwise, the application will be cancelled.
- Project choice must be made carefully—no changes will be allowed after submission.
Financial Assistance Under the Scheme
Selected applicants receive support up to ₹10 lakh, consisting of:
- 50% grant (up to ₹5 lakh)
- 50% interest-free loan (up to ₹5 lakh)
- Under Youth Udyami Yojana, loan carries 1% interest
Project cost approval will be based on the Model DPR prepared by the department.
Disbursement Process
1. First Installment
- Applicant completes a 6-day training (2 attempts allowed).
- After training, first installment is released to the unit’s Current Account.
- This installment covers:
- Up to ₹1.50 lakh for site preparation
- ₹25,000 for electrical safety kit
- ₹25,000 for other expenses
- Up to ₹50,000 can be used for rent (not allowed if property belongs to close relatives).
- Beneficiary must upload utilization certificate within 90 days.
2. Second Installment
- After approval of the first utilization certificate, the applicant undergoes second 6-day training (2 attempts allowed).
- Second installment is released via RTGS/NEFT.
- Beneficiaries may use up to 25% of total machinery cost at their convenience.
- Utilization certificate must again be uploaded within 90 days.
3. Third Installment
- After verification and recommendation by the General Manager, the final installment is released.
- Beneficiaries may purchase a higher-grade machine by contributing extra funds personally.
- All payments above ₹10,000 must be made only through digital/online modes.
Loan Repayment & Recovery Rules
- Beneficiaries who misuse funds or fail to set up their unit will face recovery under PDR Act.
- One year after receiving the second/third installment, the beneficiary must start repaying 50% of project cost (loan amount) through the portal’s online payment system.
- Defaulters will face legal/administrative action as per rules.
