Uttar Pradesh Pt. Deendayal Upadhyay Gramodyog Rozgar Yojana

What is Pt. Deendayal Upadhyay Gramodyog Rozgar Yojana?

Pt. Deendayal Upadhyay Gramodyog Rozgar Yojana, usually written simply as Pandit Deendayal Gramodyog Rozgar Yojana, is a rural self-employment scheme of the Uttar Pradesh Khadi and Village Industries Board (UPKVIB). The scheme exists to create employment inside villages rather than pushing rural workers towards cities, by helping local entrepreneurs finance small village industry units.

The mechanism is a credit-linked interest subsidy, and understanding it is the difference between a successful application and a disappointed one. UPKVIB does not hand out cash grants and does not lend money directly. The entrepreneur takes a term loan and working capital from a bank, and UPKVIB bears the interest on that loan as a subsidy for the agreed period. The borrower repays the principal; the state absorbs the interest burden that usually kills a small rural unit in its first two years.

According to UPKVIB, projects up to Rs 10 lakh are supported under this route. The Board also runs a companion scheme, the Mukhyamantri Gramodyog Rozgar Yojana, aimed at somewhat larger rural units, and the two are often described together in district-level publicity. Applicants should confirm at the District Khadi Office which of the two their project size fits.

What kinds of units does the scheme finance?

The scheme works within the standard village industry classification used by the Khadi and Village Industries framework:

• Agro and food processing, flour milling, oil expelling, spice grinding, pickle and papad making, dal milling, bakery, dairy products.
• Forest-based; bamboo and cane work, honey, leaf plates, wooden articles.
• Mineral-based; pottery, lime, stone crushing at village scale, clay tiles.
• Polymer and chemical-based; soap, detergent, candles, footwear, leather goods.
• Handmade paper and fibre; paper units, coir and jute products, rope making.
• Rural engineering and service industry — repair workshops, welding, carpentry, cycle and motor repair, tailoring, laundry, flour chakki service.

The unit must be located in a rural area of Uttar Pradesh. A project proposed inside a municipal area does not qualify under a gramodyog scheme, even if the promoter lives in a village.

Who is eligible for Pt. Deendayal Gramodyog Rozgar Yojana?

You can apply if:

• You are a permanent resident of Uttar Pradesh and the proposed unit will be set up in a rural area of the state.
• You are 18 years or older on the date of application.
• You are setting up a new village industry unit, or expanding an existing one where the Board permits.
• You have a workable project report showing the machinery, working capital, expected output and the employment the unit will generate.
• You are creditworthy in the bank's assessment. The loan is a bank loan and the bank makes its own appraisal.

You cannot apply if:

• You are under 18.
• You are not a resident of Uttar Pradesh.
• Your unit will operate in an urban area rather than a rural one.
• You are an existing defaulter on a bank loan, since no bank will sanction the underlying credit.
• You have already taken subsidy for the same unit under another government scheme such as PMEGP. Double subsidy for one unit is not permitted.
• Your proposed activity is outside the village industry list, for example a pure trading or retail resale business with no manufacturing or service component.

Preferential treatment is given to Scheduled Caste, Scheduled Tribe, women and ex-servicemen applicants, who receive a larger share of interest support than general category applicants under the Board's gramodyog schemes. Because the exact percentage has been revised over the life of the scheme, confirm the current figure at the District Khadi Office before you build it into your financial projections.

What documents are required?

The project report is where most applications succeed or fail. A bank appraises the loan on the strength of this document, so a realistic cost estimate, a genuine market for the output, and a repayment schedule the unit can actually meet matter more than the paperwork around it. The District Khadi and Village Industries Office assists applicants in preparing it.

How to apply for Pt. Deendayal Gramodyog Rozgar Yojana

1. Open upkvib.gov.in and follow the link to the Pt. Deendayal Gramodyog Rozgar Yojana online application portal listed under the Board's schemes menu.
2. Register as a new applicant with your name, mobile number and Aadhaar details, and set a password.
3. Log in and fill the application form: personal details, category, the proposed unit's village and block, the industry category, and the project cost.
4. Upload the project report and the supporting documents, then submit the form and note the application number.
5. Print the submitted application and take it, with the project report and original documents, to your District Khadi and Village Industries Office.
6. Attend the district-level screening committee, which scrutinises the project and recommends viable cases.
7. The recommended file is forwarded to a bank, which conducts its own appraisal and sanctions the term loan and working capital.
8. Once the bank sanctions and disburses, set up the unit and start production. UPKVIB then settles the interest subsidy against the loan account for the eligible period.

If the online portal is not reachable, the District Khadi and Village Industries Office accepts the application in physical form and enters it on the Board's system. Calling the Gramodyog Samadhan Cell on 1800-120-7699 is the fastest way to confirm whether an application window is currently open in your district.

How is the money actually released?

The bank disburses the sanctioned loan directly to the entrepreneur or to suppliers of machinery, according to the sanction terms. The subsidy element is never handed over in cash. UPKVIB reimburses the interest component against the outstanding loan, which reduces the effective cost of borrowing to the entrepreneur while the principal repayment schedule continues as agreed with the bank.

Two practical consequences follow. First, an applicant who stops repaying principal loses the benefit of the interest support, because the subsidy is tied to a regular loan account. Second, the entrepreneur's own margin contribution is still required, the bank will expect the promoter to bring in a share of the project cost, and the scheme does not replace that contribution.

Why applications get rejected

• Unit proposed in an urban area, which puts it outside a rural industry scheme altogether.
• Weak or copied project report with costs that the bank's appraisal cannot support.
• Activity outside the village industry list, most commonly pure trading proposals.
• Existing loan default or a poor credit record, which blocks the bank sanction the whole scheme depends on.
• Subsidy already availed for the same unit under PMEGP or another state scheme.
• Incomplete documents: missing caste certificate where the higher subsidy is claimed, or residence proof that does not establish a rural address.
• Application filed outside the announced window, since UPKVIB opens applications in cycles rather than continuously.

An applicant rejected at the district screening stage can rework the project report and reapply in the next cycle. A rejection at the bank appraisal stage is a credit decision, and the sensible next step is to discuss the objection with the branch manager and the District Khadi Office together.

Where to get help

The scheme is administered by the Uttar Pradesh Khadi and Village Industries Board, 8 Tilak Marg, Lucknow 226001, with landlines published on upkvib.gov.in including 0522-2208321, 2208310, 2208313 and 2207004. The Board's Gramodyog Samadhan Cell toll-free number is 1800-120-7699.

At district level, the District Khadi and Village Industries Officer is the working contact for application forms, project report help, screening committee dates and the status of a forwarded file. Grievances that do not move can be raised on Jansunwai at jansunwai.up.nic.in against the Khadi and Village Industries Department, quoting the application number.

No fee is payable to UPKVIB for filing an application under this scheme.

How to check your application status

UPKVIB does not run a single-window online tracker where an applicant can type in an application number and see a status bar. The file moves through three custodians after submission, an applicant checks with whichever one currently holds it.

1. Right after online submission, note the application number generated by the UPKVIB portal. This number is the reference for every follow-up call or visit, keep it with the printed copy of the form.
2. While the file sits at district level, the working contact is the District Khadi and Village Industries Officer. This office knows whether the file has been listed for the district-level screening committee, whether the committee has met, and whether it recommended the project onward.
3. Once the file is forwarded to a bank, status moves to a credit decision. The financing bank branch, not UPKVIB, can say whether the loan is under appraisal, sanctioned, or awaiting further documents from the applicant.
4. After disbursement, the interest subsidy is adjusted directly against the loan account each period rather than paid out separately, so there is no separate subsidy receipt to track. The loan account statement from the bank is the record of whether the interest credit has been applied.
5. If a call is easier than a visit, ring the UPKVIB Gramodyog Samadhan Cell toll-free number, 1800-120-7699, quoting the application number and the district. This cell can point to whichever of the district office or the bank currently holds the file when an applicant is unsure.
6. If a status query goes unanswered for an unreasonable time at the district level, the file can be escalated on Jansunwai (jansunwai.up.nic.in) against the Khadi and Village Industries Department, quoting the application number and the date it was submitted to the district office.

There is no SMS or portal-login status check for this scheme; the toll-free cell and the District Khadi and Village Industries Office are the two real channels, and the bank branch is the third once the file has left UPKVIB's hands.