Lucknow, March 3 (IANS): To foster entrepreneurship among the youth of Uttar Pradesh, Chief Minister Yogi Adityanath will soon launch his ambitious scheme, 'Mukhyamantri Yuva Udyami Vikas Abhiyan' (MYUVA), soon.

The chief minister has directed officials of the Micro, Small, and Medium Enterprises (MSME) Department to promptly devise a comprehensive action plan for the initiative and submit it to the government as soon as possible.

Under this scheme, the state government aims to prepare one lakh young entrepreneurs every year by providing interest-free loans for projects of up to Rs 5 lakh. The government has allocated Rs 1,000 crore in the budget for the financial year 2024-25 to support this initiative.

According to the government spokesman, this innovative scheme is designed to empower educated and skilled youth across the state, facilitating self-employment opportunities and fostering the establishment of new MSMEs.

By promoting entrepreneurship, the initiative seeks to generate employment opportunities in both rural and urban areas.

Under the scheme, interest-free loans of up to Rs 5 lakh will be provided to projects in the industry and service sectors. The goal is to directly benefit one million units over the next 10 years by financing 1,00,000 units annually.

Beneficiaries who have undergone training in various government-run schemes, such as the Vishwakarma Shram Samman Yojana, One District One Product Training and Toolkit Scheme, Scheduled Caste, Tribe, Other Backward Class Training Scheme, and Skill Upgradation (Kaushal Unnayan) run by the Uttar Pradesh Skill Development Mission, will be eligible for assistance.

Youth having certificates, diplomas, and degrees from educational institutions will also be entitled to benefits under this scheme.

Upon successful repayment of the first loan, units will be eligible for second-stage financing, where a composite loan of double the initial amount or up to Rs 7.50 lakh can be provided. Furthermore, arrangements for grants have also been made to promote digital transactions.

The application process for the scheme will be conducted online. In this, Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) coverage will be provided to all loans received from banks and financial institutions. Funding for this scheme will be available from nationalised, scheduled, rural banks, SIDBI and all financial institutions notified by the Reserve Bank of India, the spokesman said.