Mukhyamantri Swarojgar Yojna (MSY) - Uttarakhand

What is Mukhyamantri Swarojgar Yojna?

Mukhyamantri Swarojgar Yojna (MSY) is a self-employment credit scheme of the Government of Uttarakhand, run by the Investment Promotion and Facilitation Cell under the Directorate of Industries in Dehradun. The scheme is transliterated locally as Mukhyamantri Swarojgar Yojana, and its official home is the dedicated portal at msy.uk.gov.in.

According to the MSY portal, the scheme exists to encourage enterprising young people of the state, migrants who returned to Uttarakhand because of the COVID-19 disruption, skilled and unskilled artisans and craftspeople, and educated unemployed people in both urban and rural areas to set up their own enterprises. Mukhyamantri Swarojgar Yojna does this not by handing out cash but by arranging a term loan from a nationalised or scheduled commercial bank and then paying part of the project cost as a one-time margin money subsidy.

Mukhyamantri Swarojgar Yojna sits alongside two sister schemes on the same portal; Mukhyamantri Swarojgar Yojna 2.0 (MSY 2.0), whose active version was updated on 5 June 2025, and Mukhyamantri Saur Swarojgar Yojna (MSSY) for solar projects. The portal states one binding rule across all three: an applicant can avail loan benefit under only one scheme.

How much money does Mukhyamantri Swarojgar Yojna give?

MSY works on two ceilings and a sliding subsidy rate.

Project cost ceilings

• Manufacturing sector: project cost up to a maximum of Rs 25 lakh.
• Service and commercial sector: project cost up to a maximum of Rs 10 lakh.

Margin money subsidy by region category

Uttarakhand's district and block classification into Categories A, B, B+, C and D is the same classification the Directorate of Industries uses for its wider industrial incentives, with the remotest hill blocks in Category A and the plains belt in Category D. The practical effect is that a bakery, workshop or homestay set up in a high-hill block draws a materially larger subsidy than the identical unit set up near Haridwar or Udham Singh Nagar.

Applicant's own contribution (margin money deposit)

The applicant must also put money into the bank as own contribution:

• General category: 10 per cent of project cost.
• Special category: 5 per cent of project cost. Special category covers Scheduled Castes, Scheduled Tribes, Other Backward Classes, minorities, ex-servicemen, women and persons with disabilities (divyang).

When the subsidy is adjusted

The MSY financial assistance note is specific on timing: the one-time margin money is adjusted after the business has successfully commenced and run operations for at least two years. Mukhyamantri Swarojgar Yojna therefore rewards a unit that survives, not a unit that merely gets sanctioned. An applicant who shuts the enterprise inside two years should expect the subsidy not to be adjusted.

Who is eligible for Mukhyamantri Swarojgar Yojna?

You can apply if:

• You are a resident of Uttarakhand setting up an enterprise inside the state.
• You are an unemployed young person, a migrant who has returned to Uttarakhand, a skilled or unskilled artisan or craftsperson, or an educated unemployed person from an urban or rural area — the four target groups named on the MSY portal.
• Your proposed project cost is within Rs 25 lakh for manufacturing or Rs 10 lakh for a service or commercial activity.
• You can deposit your own contribution of 10 per cent (general) or 5 per cent (special category) of the project cost with the financing bank.
• A nationalised or scheduled commercial bank is willing to appraise and sanction your project.

You cannot apply, or will not be eligible, if:

• You are already taking a loan under another MSY-family scheme. The portal states that an applicant may avail loan benefit under only one scheme, so a person financed under MSY 2.0 or Mukhyamantri Saur Swarojgar Yojna is not eligible here.
• Your project cost exceeds the sectoral ceiling of Rs 25 lakh or Rs 10 lakh.
• Your enterprise is to be set up outside Uttarakhand.
• The bank rejects the appraisal, MSY has no route that bypasses bank credit sanction, so an applicant who cannot obtain a bank loan cannot receive the margin money subsidy.

Because the subsidy is adjusted only after two years of operation, an applicant whose intention is a one-off purchase rather than a running enterprise is outside the purpose of the scheme.

What documents are required for MSY?

The portal publishes the DPR template as a spreadsheet in both English (DPR_FORMAT.xls) and Hindi (DPR_FORMAT_Hindi.xls), along with the application form structure and the affidavit format as PDFs. Downloading these before you start saves a rejection for wrong format.

How to apply for Mukhyamantri Swarojgar Yojna

1. Open the official portal at msy.uk.gov.in and download the MSY Policy, the financial assistance note, the application form structure, the affidavit format and the DPR template.
2. Prepare your Detailed Project Report in the prescribed format, keeping the project cost within Rs 25 lakh for manufacturing or Rs 10 lakh for a service or commercial activity.
3. Register on the portal using the Applicant Login link and create your account with an email address and password.
4. Select Mukhyamantri Swarojgar Yojna as your scheme. Remember that you may take loan benefit under only one of MSY, MSY 2.0 and MSSY.
5. Fill the online application with your personal details, the proposed activity, the location of the unit (this decides your region category and therefore your subsidy rate) and your category, general or special.
6. Upload the residence certificate, identity proof, DPR, affidavit, caste certificate if applicable and machinery quotations, then submit.
7. Attend document verification and appraisal when called by the District Industries Centre and the financing bank. The bank appraises the project and sanctions the loan.
8. Deposit your own contribution to 10 per cent for general, 5 per cent for special category, with the bank, draw the loan and start operations.

How to apply offline or with help

1. Visit the District Industries Centre (DIC) in your district and ask for the General Manager or the MSY dealing assistant.
2. Collect the application format and the DPR template, or carry printouts from the portal.
3. Submit the filled application with documents to the DIC, which forwards it to the financing bank for appraisal.
4. If you need help at any stage, call the MSY helpline on +91-7617576909 between 10:00 AM and 5:00 PM IST.

The Investment Promotion and Facilitation Cell that runs MSY sits at the Directorate of Industries, Industrial Estate, Patel Nagar, Dehradun - 248001.

How to check your MSY application status

1. Open msy.uk.gov.in.
2. Click Application Status in the top menu.
3. Enter your application reference and submit to see the current stage.
4. Use the Beneficiary Details link on the same portal to see whether your case appears in the list of sanctioned beneficiaries.

If the portal shows the file pending at bank level for a long period, follow up with the branch that received the sanction reference rather than with the portal helpdesk, because the appraisal delay usually sits with the bank.

Why MSY applications get rejected

• Project cost above the ceiling; anything above Rs 25 lakh in manufacturing or Rs 10 lakh in services is outside the scheme.
• DPR not in the prescribed format, or costs in the DPR unsupported by quotations.
• Loan already taken under MSY 2.0 or MSSY, which disqualifies a second loan.
• Bank appraisal negative; weak repayment capacity, poor credit history or an unviable activity.
• Own contribution not deposited, which stalls disbursement even after sanction.
• Residence proof missing or in another state's name.
• Wrong region category claimed, for example claiming the 25 per cent Category A rate for a unit located in a Category D block. The subsidy rate follows the location of the unit, not the applicant's home address.

Grievance and help

• MSY helpline: +91-7617576909, 10:00 AM to 5:00 PM IST.
• Directorate of Industries helpdesk (Invest Uttarakhand): +91-7618544555 or +91-7617576903, 10:00 AM to 5:00 PM IST, email mpr@doiuk.org.
• In person: the District Industries Centre in your district, or the Investment Promotion and Facilitation Cell, Directorate of Industries, Industrial Estate, Patel Nagar, Dehradun - 248001.

There is no fee for applying under Mukhyamantri Swarojgar Yojna. No agent can guarantee a sanction, because the credit decision rests with the bank and the subsidy adjustment rests with the Directorate of Industries.