Mukhyamantri Krishak Udyami Yojana

What was Mukhyamantri Krishak Udyami Yojana?

Mukhyamantri Krishak Udyami Yojana was a self-employment credit scheme of the Department of Micro, Small and Medium Enterprises, Government of Madhya Pradesh. Launched in 2018 to district administrations record its implementation from 23 April 2018. The scheme was designed for one specific group: the sons and daughters of Madhya Pradesh farmers who wanted to set up an agriculture-linked business rather than remain solely dependent on cultivation.

Mukhyamantri Krishak Udyami Yojana, sometimes transliterated as Krishak Udhyami Yojana or referred to as the Chief Minister Farmer Entrepreneur Scheme on district portals, did not lend money itself. It arranged a bank loan and then layered three government supports on top of it: margin money assistance, an interest subsidy and guarantee fee support, plus entrepreneurship training.

Important status note. The Madhya Pradesh government merged Mukhyamantri Krishak Udyami Yojana with Mukhyamantri Swarojgar Yojana and Mukhyamantri Yuva Udyami Yojana into a single successor, Mukhyamantri Udyam Kranti Yojana, launched on 29 November 2021. The Krishak Udyami scheme is therefore closed to new applicants. This guide records what the scheme provided and points readers to the live successor.

Who was eligible for Mukhyamantri Krishak Udyami Yojana?

You could be considered if:

• You were a native of Madhya Pradesh.
• You were the son or daughter of a farmer, or a farmer yourself. This was the defining condition, the family had to hold agricultural land.
• You were aged 18 and above; district notifications record the upper limit variously as 40 or 45 years, so the district trade and industry centre's circular governed.
• You had passed at least Class 10.
• You were setting up a new enterprise, not expanding an existing one.
• You were not an income tax payer.
• You were not a defaulter to any bank or financial institution.

You could not apply, or were not eligible, if:

• Your family owned no agricultural land, since the scheme was defined around farming households.
• You had already taken benefit under another state or central self-employment or entrepreneurship scheme.
• You were a bank defaulter or had a written-off loan.
• You filed income tax returns.
• You were a resident of another state.
• You wanted funding for a non-agricultural trading business with no link to farm produce or agro-processing.

Because the scheme is now merged, everyone is in practice ineligible to make a fresh Krishak Udyami application. The eligibility that matters today is the Udyam Kranti Yojana eligibility, described below.

How much assistance did the scheme give?

According to Madhya Pradesh district administration pages and MSME department material, Mukhyamantri Krishak Udyami Yojana carried the following structure:

The margin money was a grant credited against the sanctioned loan, so it lowered the promoter's own contribution instead of arriving as cash in hand. The interest subsidy reduced the effective rate paid to the bank for the subsidy period.

Ceiling figures differ between district circulars and later revisions of the scheme. Where a figure is critical to your project plan, verify it against the notification your District Trade and Industry Centre holds rather than any secondary listing.

Which projects qualified?

Mukhyamantri Krishak Udyami Yojana funded ventures connected to agriculture and its produce:

• Agro processing and food processing units
• Cold storage and warehousing
• Milk, dairy and cattle-feed processing
• Poultry processing
• Rice mills, dal mills and oil mills
• Bakeries and small food manufacturing
• Farm machinery service and custom hiring ventures
• Other agriculture-based manufacturing and service enterprises

What documents were required?

How to apply now that the scheme has merged

Mukhyamantri Krishak Udyami Yojana no longer takes applications. The route for a farmer's son or daughter today runs through Mukhyamantri Udyam Kranti Yojana, run by the same MSME department.

1. Confirm the scheme. Check on the Madhya Pradesh MSME department site, msme.mp.gov.in, that Udyam Kranti Yojana is the applicable scheme for your project type, and read the current eligibility circular.
2. Prepare a Detailed Project Report covering machinery, working capital, raw material, expected turnover and repayment capacity. Get it certified by a chartered accountant.
3. Register online through the MSME department's application system, filling your Aadhaar, education, domicile, project details and preferred bank branch.
4. Upload scanned documents, marksheet, Aadhaar, domicile, land record, caste or BPL certificate if claimed, and the project report. An MP Online kiosk can do this for you for a small notified fee.
5. Attend the district selection at the District Trade and Industry Centre, which scrutinises the file and forwards it to the bank.
6. Complete bank appraisal. The bank sanctions the loan on its own credit assessment. Government margin money and interest subsidy are released against the sanctioned account, not before it.
7. Track the file with the application number, and escalate at the District Trade and Industry Centre if a bank sits on it beyond the prescribed timeline.

Under Udyam Kranti Yojana the state provides loans of Rs 1 lakh to Rs 50 lakh for manufacturing units and Rs 1 lakh to Rs 25 lakh for service and business ventures, with interest subsidy support from the state.

Why applications used to get rejected

• No land record in the family's name, so the farming-family condition failed.
• Weak or uncertified project report that the bank could not appraise.
• CIBIL or default history of the applicant or a guarantor.
• Age or education outside the notified band.
• Duplicate benefit. The applicant was already covered under another self-employment scheme.
• Bank-level rejection on viability grounds, which the department cannot overrule. Departmental selection is a recommendation; the credit decision stays with the bank.

The most common misunderstanding, then and now, is that departmental selection guarantees money. It does not. The bank's appraisal is the real gate, so a realistic project report and a clean credit record matter more than the paperwork at the district office.

Where to get help

• District Trade and Industry Centre (Jila Vyapar evam Udyog Kendra) in your district headquarters. The operating office for all MSME department self-employment schemes.
• Madhya Pradesh MSME department, msme.mp.gov.in, for scheme circulars and current guidelines.
• CM Helpline 181 to lodge a grievance about delay at the district office or the bank, which generates a tracked complaint number.

Do not pay any agent who promises a sanction. Margin money and interest subsidy are credited to a loan account by the government, and no fee is payable to any private person for selection under a Madhya Pradesh MSME scheme.