Mukhyamantri Udyami Yojana

What is Mukhyamantri Udyami Yojana?

Mukhyamantri Udyami Yojana is the Bihar Department of Industries scheme that puts capital into the hands of first-time entrepreneurs in the state. It is administered from the udyami.bihar.gov.in portal, which also runs the separate Bihar Laghu Udyami Yojana, and locally the scheme is known simply as Udyami Yojana or MMUY.

According to the Department of Industries portal, an approved applicant receives up to Rs 10 lakh for a single new unit. The structure is the reason the scheme is oversubscribed every year:

• 50 percent, up to Rs 5 lakh, is an outright subsidy. A grant that is never repaid.
• 50 percent, up to Rs 5 lakh, is a term loan repayable in 84 monthly instalments across 7 years.
• The loan is fully interest-free for women, Scheduled Caste, Scheduled Tribe and Extremely Backward Class applicants.
• General category applicants pay 1 percent simple interest on the loan half.

No other state scheme in Bihar hands a new entrepreneur half the project cost as a grant, which is why the window draws applications far in excess of the annual target and selection runs through a randomised draw.

Main features

• One unit per applicant, and one benefit per family in practice.
• Funds are released in tranches against the setting up of the unit, not in advance.
• Money goes to a current account in the firm's name, never a personal savings account.
• Beneficiaries must submit a utilisation certificate for each tranche.
• Selected applicants receive entrepreneurship training before disbursement.

Who is eligible for Mukhyamantri Udyami Yojana?

You can apply if:

• You are a permanent resident of Bihar and can produce a residence certificate issued by the Circle Officer or through RTPS.
• You are between 18 and 50 years of age, verified from the date of birth on your matriculation certificate.
• You have passed intermediate (10+2), or hold an ITI certificate, a polytechnic diploma, a degree or a higher qualification.
• You are setting up a new manufacturing or service unit in Bihar, chosen from the approved project list published on the portal.
• You have registered the proposed firm: as a proprietorship, partnership, LLP or private limited company, and hold a current account in the firm's name.
• You are unemployed and will run the unit yourself.

You are not eligible and cannot apply if:

• You are under 18 or over 50 on the reference date of the cycle.
• Your highest qualification is matriculation or below. This bar is hard and is the most common first-stage disqualification.
• You are a serving government employee in a central, state, PSU or autonomous body post.
• You are a defaulter to any bank or financial institution or have an unsettled recovery case against you.
• You or another member of your family have already received assistance under Mukhyamantri Udyami Yojana or Bihar Laghu Udyami Yojana. The benefit is one-time.
• You are applying to expand an existing running unit. The scheme funds new units only.
• Your proposed project is not on the approved list published with the cycle notification.
• You are a resident of another state, even if you propose to set up the unit in Bihar.

How much assistance and how is it paid?

The Rs 10 lakh is not credited at once. The Department of Industries releases it in tranches, typically a first tranche after training and agreement, a second against machinery purchase, and a final tranche against commissioning of the unit. Each tranche requires a utilisation certificate showing that the previous tranche went into the unit. The portal has repeatedly warned selected beneficiaries from earlier years to upload pending utilisation certificates by a stated date, and failure to do so blocks the remaining tranches.

What documents are required for Mukhyamantri Udyami Yojana?

How to apply for Mukhyamantri Udyami Yojana

1. Watch udyami.bihar.gov.in for the cycle notification. The Department of Industries opens the window for a few weeks each financial year — the 2025-26 window closed on 15 March 2026.
2. Read the scheme guidelines and the approved project list before you start, and pick a project that is actually on the list.
3. Click Registration on the portal and enter your Aadhaar number, name, date of birth, mobile number and email, then verify the OTP. Save the user ID and password.
4. Log in and complete the application form: personal details, category, qualification, proposed project, proposed unit location and estimated project cost.
5. Upload the scanned documents in the sizes and formats the portal specifies. Oversized or wrong-format files silently fail, so confirm each upload shows as accepted.
6. Submit the application before the closing date and download the acknowledgement carrying your application number.
7. Wait for the computerised randomised selection. The 2025-26 selection was announced on 20 May 2026.
8. If selected, upload the required documents within the deadline given; selected 2025-26 applicants had until 24 June 2026, 5 pm, and candidacy was cancelled for anyone who missed it.
9. Attend document verification and entrepreneurship training, sign the agreement, then receive the first tranche in the firm's current account.

How do I check my Udyami Yojana application status?

1. Log in to udyami.bihar.gov.in with the user ID and password created at registration.
2. The dashboard shows the current stage; application submitted, selected in the draw, documents under scrutiny, verified, training completed, or tranche released.
3. Selection lists and waiting lists are also published as PDF notices on the portal home page after each draw. Search the list for your application number, not your name.
4. For a stuck file, call the Department of Industries helpline 1800-345-6214 with your application number ready.

Why do Udyami Yojana applications get rejected?

• Qualification below intermediate. No exception is made.
• Age outside 18 to 50 on the reference date of the cycle.
• Documents not uploaded within the post-selection window. Being selected in the draw is not the end, missing the upload deadline cancels candidacy outright, and the portal has cancelled candidates on exactly this ground.
• Illegible scans. The portal explicitly asks for clear, legible copies; blurred photographs of documents are rejected at scrutiny.
• Personal savings account submitted instead of a current account in the firm's name.
• Name or date-of-birth mismatch across Aadhaar, matriculation certificate and bank records.
• Project not on the approved list, or a project report that does not match the project selected in the form.
• Existing business presented as a new unit.
• Family member already benefited under this scheme or Bihar Laghu Udyami Yojana.
• Pending utilisation certificate from an earlier tranche, which blocks further release rather than the application itself.

Where do I get help?

• Department of Industries toll-free helpline: 1800-345-6214, working days roughly 10 am to 5 pm.
• Email: dir-msme.ind-bih@gov.in
• District Industries Centre (DIC) in your district for document verification, project report guidance and tranche queries. The DIC General Manager is the field-level officer for this scheme.
• Portal notices on udyami.bihar.gov.in carry every deadline extension and selection list.

Applying is free. No agent, consultant or middleman can get your name into the randomised draw, and anyone promising selection for a fee is running a fraud.