Schemes For MSMEs In Uttar Pradesh

The micro small and medium enterprises hold the key towards the economic development of a country with this view the chief minister of Uttar Pradesh Mr Aditya Nath Yogi and his cabinet is devoting considerable attention to the growth of micro small and medium enterprises to ensure sustained industrialization in the state.

For the same various scheme have been introduced by the government of Uttar Pradesh for the MSMEs they are as under:-

Uttar Pradesh Startup Scheme

To encourage the youth of Uttar Pradesh for entrepreneurship, Mr Adityanath Yogi, the honorable chief minister of Uttar Pradesh has launched the scheme ‘Uttar Pradesh Startup Funds’, for the first installment of the scheme  Rs 15 crore has been handed over to the Small Industries Development Bank of India.

According to Yogi, it is very crucial to bring a new startup policy for sectors like agriculture, health, education etc so that the youth connect with it as the future of the country is dependent on the youth. This policy aims at setting up hundreds of incubators in the state and at least one of them in every district.  An ecosystem would also be developed to set up a minimum of 10,000 startups. This scheme of the state government would turn many from job seekers to job providers.

This move of the chief minister will surely boost job creation. As per the report, more than 50,000 direct and approximately one lakh indirect employment opportunities would be created. A memorandum of understanding has also been signed between the state government and the small Industrial development bank of India so as the state observes growth and development and so as it also contributes more to the Gross Domestic Product of the country (GDP).

Many migrant workers would come to Uttar Pradesh at this time and the state government would provide them with employment as per their abilities.

Micro and Small Industries Technology Up-gradation Scheme

For the development of competitiveness among the small scale industries in Uttar Pradesh in the present scenario of economic globalization and high competition all over the globe, the state Govt. has made few amendments in the scheme U.P. Micro and Small Industries Technology Up-gradation Scheme of 2007. This scheme aims to provide assistance to micro and small enterprises for the development and up-gradation of their technology.

The key points of this scheme is as under:-
  • Amount incurred for purchase and import of technology at the rate of 50% and a maximum of  2.50 lakh.
  • Amount incurred for purchase and enhancement of capacity and quality improvement at 50% up to a maximum of two lakh.
  • Interest on subsidies at a rate of  50% subject to a maximum of fifty thousand.
  • Amount incurred for getting ISO or ISI certification at a rate of 50% and a maximum of  2 lakh.
  • Amount incurred for consultancy for worldwide competition would be 50% and subject to a maximum of fifty thousand.

Marketing Development Assistance Scheme

To help medium small and micro enterprises in the marketing, development, promotion, and manufacturing of better products, the government of Uttar Pradesh has established the Uttar Pradesh Trade Promotion Authority (UPTPA). This scheme has been introduced under the Directorate of Industries, U.P and Export Promotion Bureau.

Expenses are reimbursed under this scheme incurred by MSMEs. Such expenses may include stall charges, fair attendance charges, charges for participation in seminars or the cost of charges done on participation in trade fairs in any part of the country. The Export Promotion Board provides marketing assistance which helps to increase the market share of small entrepreneurs in the international market.  Subsidies are also provided on freight under the Freight Charges Scheme. The main points of this scheme are as undermentioned:-

    • Price Preference of 10% would be given to small enterprises of the state in comparison to small enterprises of other states.
    • MSMEs of Uttar Pradesh would be given a price preference of 15% in comparison to Medium and Heavy Enterprises of the states.
    • Price Preference of 5% is provided to micro-enterprises of the state in comparison to micro-enterprises of other states.

Nivesh Protsahan Yojana

A Grant of Interest-Free loan is provided under Nivesh Protsahan Yojana for a term of 10 years for existing units. New enterprises have to repay after 7 years. The enterprises should fulfill any one of the following conditions:-

  • Should have made fixed capital investment of minimum  five  in the Food Processing Sector
  • Sum of ten crores or more in Eastern U.P. or Bundelkhand.
  • At least Rs. 25 crores or more in other districts of Uttar Pradesh.

The amount of loan should not exceed 10% of turnover or sum of the trade tax or Value Added Tax and central sales tax paid by the business.

These are the various schemes for MSMEs of Uttar Pradesh which would attract more and more people to become an entrepreneur. Which would create employment opportunities and increase the GDP of the state.


  • By Vanshika Tandon

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