Scheme objectives and financial incentive structure
The Udyami Yojana is structured to eliminate capital constraints and build rural manufacturing capabilities.
- Capital subsidy component: The state government provides a 50 percent non-refundable capital grant on approved project costs.
- Soft project loan: The remaining 50 percent is funded via a low-interest or interest-free soft loan repayable in 84 monthly installments.
- Targeted categories: Specialized sub-schemes for Women Entrepreneurs (Mahila Udyami), Youth (Yuva Udyami), SC/ST, and EBC categories.
- Direct benefit disbursement: Funds are released in tranches directly into the entrepreneur's current enterprise bank account.
Eligible enterprise sectors and agro-industrial projects
The scheme prioritizes local value-addition, agro-processing, and light industrial manufacturing units.
- Agro-processing units: Modern flour mills (atta chakki), pulse processing (dal mills), oil expellers, and spice processing units.
- Food and beverage manufacturing: Biscuit and bakery units, pickle and jam processing, fruit pulp packaging, and dairy products.
- Rural manufacturing: Cement fly-ash bricks, corrugated cardboard box packaging, and precast concrete manufacturing.
- Textiles and fabrication: Readymade garment manufacturing, leather products, and agricultural implement fabrication.
Eligibility criteria, selection, and online application workflow
Applicants must be permanent residents of the state, aged between 18 and 50 years, with a minimum educational qualification of Class 12 or equivalent technical diploma. Eligible citizens apply through the official state portal (udyami.bihar.gov.in). Shortlisted candidates complete mandatory two-week entrepreneurship training before loan tranches are sanctioned.
Official source
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Department of Industries (Govt of Bihar) ↗Related on KisanPe
Common questions
What is the primary goal of the Mukhyamantri Udyami Yojana?
It provides capital subsidies and soft loans to encourage youth and women to establish new manufacturing and agro-processing micro-enterprises.
What are the financial components of the Udyami scheme?
The scheme provides a 50% non-refundable capital subsidy alongside a 50% soft loan repayable in 84 easy monthly installments.
Where can candidates apply for the Mukhyamantri Udyami Yojana?
Applications are submitted online during active registration windows through the official state portal at udyami.bihar.gov.in.
General guidance, not personal advice. For your farm, ask your local Krishi Vigyan Kendra or agriculture officer.
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