Mukhyamantri Swarozgar Yojana - Uttarakhand

What is Mukhyamantri Swarozgar Yojana?

Mukhyamantri Swarozgar Yojana (MSY), commonly written in Hindi as Mukhyamantri Swarojgar Yojana, is the flagship self-employment credit scheme of the Government of Uttarakhand. The Directorate of Industries runs it through its Investment Promotion & Facilitation Cell in Dehradun and the District Industries Centre in each of the state's 13 districts, with the dedicated portal msy.uk.gov.in.

Mukhyamantri Swarozgar Yojana does not hand out cash. According to the MSY portal, the scheme's purpose is to "provide loan facility through nationalised and scheduled commercial banks" to people who want to set up their own manufacturing unit, shop or service business. The state government's contribution is a one-time margin money subsidy that reduces how much of the loan the entrepreneur ultimately has to repay, plus the administrative push that gets a bank to look seriously at a first-time borrower's file.

The scheme is aimed squarely at Uttarakhand's employment problem in the hills. Its stated target group is enterprising youth, returnee migrants, artisans and unemployed people in both rural and urban areas. The subsidy is deliberately tilted towards the harder hill districts, so the same project earns a bigger subsidy in a Category A hill block than in the plains.

An updated version, MSY 2.0, is currently operational alongside the original scheme and the solar scheme MSSY. The portal notes that a single login works for all three, but an applicant may take a loan under only one of them.

How much money does MSY give?

Mukhyamantri Swarozgar Yojana sets two project ceilings:

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

On top of the bank loan, the state pays a margin money subsidy that depends on where the unit is located. Uttarakhand classifies its blocks into Category A (hilly), Category B and B+ (hilly), Category C and Category D. The rates published in the official financial assistance sheet are:

The single most important condition attached to this subsidy is timing. The margin money is adjusted only after the business has been running successfully for at least two years. It sits against the loan account until then. An entrepreneur who winds up the unit in the first year does not walk away with the subsidy.

Separately, the applicant must bring in an own contribution deposited with the bank:

• 10% of project cost for general category applicants.
• 5% of project cost for special category applicants: Scheduled Castes, Scheduled Tribes, Other Backward Classes, minorities, ex-servicemen, women and persons with disabilities (Divyang).

So a woman setting up a Rs 10 lakh service unit in a Category A hill block puts in Rs 50,000 of her own money, borrows the balance from a bank, and has Rs 2.50 lakh of that borrowing met by the state margin money once the unit completes two years.

Who is eligible for Mukhyamantri Swarozgar Yojana?

You can be considered if:

• You are a resident of Uttarakhand setting up the enterprise inside the state. The block where the unit is located fixes the subsidy category.
• You are setting up a new manufacturing, service or commercial enterprise that fits within the Rs 25 lakh or Rs 10 lakh project ceiling.
• You can deposit the own contribution to 10% of project cost for general category, 5% for special category, with the financing bank.
• You can produce a Detailed Project Report in the prescribed format, supported by real quotations for machinery and equipment.
• You are creditworthy enough for a nationalised or scheduled commercial bank to sanction the loan, since MSY works only through bank credit.

You cannot apply / are not eligible if:

• You have already taken a loan under MSY 2.0, MSY or MSSY. The portal is explicit that an applicant can avail a loan under only one of these schemes, so a second parallel claim is rejected.
• You are not a resident of Uttarakhand or the enterprise will be set up outside the state. MSY subsidises economic activity inside Uttarakhand.
• Your project cost exceeds the ceiling: above Rs 25 lakh for manufacturing or above Rs 10 lakh for service and commercial activity, the file does not qualify under this scheme.
• You cannot put in the own contribution. The margin money subsidy sits on top of the applicant's own stake; it does not replace it.
• The bank declines the loan. A district committee may recommend a file, but without a bank sanction there is no MSY benefit, because the entire scheme is built on bank credit.
• You are an existing defaulter to a bank or an earlier government subsidy scheme; the prescribed affidavit requires a declaration on this point.

What documents are required?

• Aadhaar card for identity, and for seeding the loan account.
• Uttarakhand residence or domicile proof, which also establishes the block category deciding whether the subsidy is 25%, 20% or 15%.
• Detailed Project Report (DPR) in the official format. The portal provides the DPR template as an Excel file in both English and Hindi, so the applicant does not have to invent a format.
• Quotations for the plant, machinery, equipment or fit-out being financed.
• Affidavit in the MSY affidavit format available on the portal.
• Caste certificate, only if claiming the 5% special-category own contribution rate.
• Bank passbook of the account the loan and subsidy will run through.

How to apply for Mukhyamantri Swarozgar Yojana

1. Register on msy.uk.gov.in. Create an applicant account with an email address and password, and verify it through the verification email. The same account works for MSY, MSY 2.0 and MSSY, but choose only one scheme.
2. Download and fill the DPR. Take the DPR format (Excel, English or Hindi) and the application form structure from the portal's download section, and build a realistic project report with machinery quotations. Weak or copied project reports are the commonest reason a bank turns a file down.
3. Complete the online application and upload documents. Log in, fill the application, and upload Aadhaar, residence proof, DPR, quotations, the affidavit in the prescribed format and, if applicable, the caste certificate.
4. Attend district-level scrutiny. The District Industries Centre (DIC) examines the application and forwards eligible cases to a bank branch. Be available for any interview or site question the DIC or the bank raises.
5. Get the bank sanction and deposit your own contribution. Once the bank sanctions the loan, deposit 10% (general) or 5% (special category) of the project cost as your own contribution, and complete the bank's documentation.
6. Start the enterprise and run it for two years. The margin money subsidy is adjusted against the loan only after the business has been in operation successfully for at least two years, so keep the unit running and the records clean.

There is no application fee at any stage. Assistance is available on the portal helpdesk +91-7617576909 between 10:00 AM and 5:00 PM.

How do I check my MSY application status?

Mukhyamantri Swarozgar Yojana gives two ways to track a file:

• Application status page: log in to msy.uk.gov.in and open the application details page. It shows the stage the file has reached, whether it is with the District Industries Centre or with the bank.
• Public beneficiary list — the portal publishes a beneficiary details page listing application ID, name, district and the amount distributed, covering all 13 districts including Dehradun, Pauri, Haridwar, Nainital, Uttarkashi, Bageshwar, Chamoli, Pithoragarh, Almora, Rudraprayag, Tehri, Udham Singh Nagar and Champawat. Finding your application number on that list is the clearest confirmation that money has moved.

If the portal shows the file with a bank for a long time, the follow-up is with the bank branch, not the portal. The DIC can nudge a branch, but only the bank sanctions the loan.

Why do MSY applications get rejected?

• Bank rejection on credit grounds, poor repayment history, an existing default, or a project the branch does not believe will generate enough cash.
• A weak Detailed Project Report; costs that do not match the quotations, revenue projections with no basis, or a copied DPR.
• Duplicate application across schemes, a person already financed under MSY, MSY 2.0 or MSSY is not given a second loan.
• Incomplete documents; missing affidavit, missing quotations, or a caste certificate claimed but not uploaded.
• Own contribution not deposited. The subsidy cannot be structured until the applicant's 10% or 5% stake is in place.
• Project outside the ceiling or outside the state, a Rs 30 lakh manufacturing plan or a unit to be set up outside Uttarakhand does not fit.

The practical fix for most rejections is the same: rebuild the DPR with genuine quotations, clear any old default, and re-approach the DIC with a corrected file.

Where do I complain if my file is stuck?

• Portal helpdesk; +91-7617576909, 10:00 AM to 5:00 PM.
• District Industries Centre (DIC) of your district, which is the operating office for the scheme and the first place to escalate a delay.
• Investment Promotion & Facilitation Cell, Directorate of Industries, Dehradun, the state-level office that administers MSY.

Escalate in that order. Where a bank branch is sitting on a sanctioned file, ask the DIC to take it up with the lead district manager of the bank, which is usually faster than repeated visits to the branch.