Employment and jobs for youth have always been on the top of the agenda of Uttar Pradesh chief Minister Yogi Adityanath when he took over the reins of the state. Mukhyamantri Yuva Swarojgar Yojana (MYSY) is one such scheme of his which proved to be a game changer for lakhs of youth in the state. It was a flagship self-employment scheme to empower educated but unemployed youth. It provides financial assistance for setting up micro-enterprises in the industrial and service sectors, aiming to reduce unemployment and promote entrepreneurship across the state. Under the scheme, banks offer loans up to Rs25 lakh for industrial projects and up to Rs10 lakh for service-oriented businesses.The state government contributes margin money up to 25% of the project cost (maximum Rs6. 25 lakh for industry and Rs2. 50 lakh for services), which converts into a grant after two years of successful operation.The scheme has significantly boosted grassroots entrepreneurship by linking youth with formal banking channels and providing hand-holding support for project viability. It focuses on micro-units involving capital expenditure and working capital, excluding land costs, and encourages diverse activities from manufacturing to services. Successful implementation not only generates self-employment but also creates additional jobs, contributing to the state’s economic growth and skill development.Salient Features Objective of the Scheme· To provide self-employment opportunities to educated but unemployed youth of Uttar Pradesh.· To promote entrepreneurship, reduce unemployment, and encourage the establishment of micro and small enterprises in industrial and service sectors.· To support grassroots-level industrial development and make youth self-reliant through financial assistance and bank linkages.· Launched as a state government initiative (around 2018) to create sustainable livelihoods and generate additional employment.2. Financial Assistance and Benefits· Loan Limits: Up to Rs 25 lakh for setting up industrial/manufacturing units; up to Rs10 lakh for service sector activities.· Margin Money Subsidy by State Government: 25% of the project cost as margin money (maximum Rs 6.25 lakh for industry sector and Rs 2.50 lakh for service sector). This is converted into a grant after successful operation of the enterprise for 2 years.· Beneficiary’s Own Contribution: 10% of project cost for general category; reduced to 5% for special categories (SC/ST, OBC, minorities, women, and persons with disabilities).· Project cost includes capital expenditure (excluding land purchase cost) and one cycle of working capital.· Financing is provided through nationalized banks, regional rural banks, and other scheduled commercial banks.· Aims to offer subsidized or interest-friendly loans to boost startups and self-employment.3. Eligibility Criteria· Must be a permanent/native resident of Uttar Pradesh.· Age should be between 18 to 40 years.· Minimum educational qualification: High School (Class 10th) pass or equivalent.· Should not be a defaulter of any nationalized bank, financial institution, or government body.· Must be unemployed (not employed in government or private sector jobs).· Should not have availed benefits under this scheme or similar central/state self-employment schemes (e.g., PMEGP) earlier.· Only one person per family can avail the benefit.· Applicants must submit an affidavit confirming fulfillment of all eligibility conditions.4. Target Beneficiaries· Primary beneficiaries: Educated unemployed youth of Uttar Pradesh.· Special focus and relaxed norms for:
- Scheduled Castes (SC) and
Scheduled Tribes (ST) - Other Backward Classes (OBC)
- Minorities
- Women
- Persons with Disabilities
· These categories enjoy lower contribution requirements (5%) and priority/support in the process. They need to submit relevant caste/disability certificates issued by competent authorities.· The scheme targets youth who want to start micro-enterprises in manufacturing, services, or related activities.5. Application Process and How to Apply· Mode: Entirely online through the official portal.· Official Websites:Achievements of the SchemeEmpowerment Youth with Self-Employment Opportunities· Since its launch in 2018-19, the scheme has provided self-employment opportunities to more than 2.5 lakh educated unemployed youth across the state.· It has enabled thousands of young entrepreneurs to establish micro-enterprises in manufacturing and service sectors, promoting grassroots economic development and reducing unemployment.Disbursal of Substantial Financial Assistance and Loan Sanctions· Over 68,000 youth have received loans totaling approximately Rs 2,751 crore, with the government disbursing hundreds of crores as margin money subsidy.· More than 31,300 applications have been approved so far, leading to successful bank linkages and conversion of subsidies into grants after two years of operation. This has significantly boosted MSME growth and inclusive entrepreneurship, especially among women, SC/ST, and minority communities.
