The main objective of the scheme is to persuade enterprising youth of the State, migrants returned to Uttarakhand due to COVID-19, skilled and unskilled artisans, handicraftsmen and educated urban and rural unemployed persons to establish their own enterprise/ business. Under the scheme, enterprising young entrepreneurs who are native or permanent residents of the state and who want to be self-employed, to provide loan facility through Nationalized/ Scheduled Commercial Banks, State Co-operative Banks/ Regional Rural Banks so they can start their own enterprise, service or business.The main objectives of the scheme are:

• For self-employment, creation of opportunities in rural and urban areas by establishing new services, businesses and micro-industries
• To provide employment opportunities near their areas of residence, as far as possible, to the enterprising youth, migrants returned to Uttarakhand due to COVID-19, skilled and unskilled artisans, handicraftsmen and educated urban and rural unemployed persons.
•  To prevent migration from hilly and rural areas in search of jobs.
• Special arrangements will be made through district industry centre to provid ebenefits under the scheme and also in providing guidance to the youth in order to start a new enterprise

LOANS AND GRANTS -

•  Under the scheme, funding will be provided to the eligible manufacturing, service establishments and business activities through nationalized banks, regional rural banks, state cooperative banks and other scheduled banks, and in this regard, the margin money will be provided as a grant by the Department of Micro, Small and Medium Enterprises, Government of Uttarakhand. The project cost for manufacturing sector enterprise is Rs. 25 lakhs (maximum) and for service and business sector is Rs. 10 lakhs (maximum).

•  As classified under MSME Policy-2015 (as amended 2016, 2018 and 2019) under the scheme, the upper limit and quantum of margin money for the category A is 25% of the total project cost (maximum of Rs. 6.25 lakh for manufacturing and Rs. 2.50 lakh for service and business activity), for category B & B+ is 20% of the total project cost (maximum of Rs. 5 lakh for manufacturing and Rs. 2 lakh for service and business activity), and for category C & D is 15% of the total project cost (maximum of Rs. 3.75 lakhs for manufacturing and Rs. 1.50 lakh for service and business activity), whichever is lower, shall be payable.

• On the successful operation of the enterprise for 2 years, the margin shall be adjusted as a grant.

• The 10 percent of the project cost will have to be deposited in the bank by the general category beneficiaries as own contribution. The beneficiaries of special category (Scheduled Castes, Scheduled Tribes, Other Backward Classes, Minorities, Ex-Servicemen, Women and Persons with Disabilities) will have to submit 5 percent of the total project cost as own contribution.
•  The total project cost will include capital expenditure (excluding the cost of land purchase) and a cycle of working capital. Project cost may include rented workshop/ work shed, but the cost of land purchase will not be included in it.