Rajiv Gandhi Udyami Mitra Yojana
(A Scheme for “Promotion and Handholding of Micro and Small Enterprises”)

Background :
Recognizing the importance of micro and small enterprises, which constitute an important segment of Indian economy in terms of their contribution to country’s industrial production, exports, employment and creation of entrepreneurial base, the Central and State Governments have been implementing this scheme.

Objective Of the Scheme :
The objective of Rajiv Gandhi Udyami Mitra Yojana (RGUMY) is to provide handholding support and assistance to the potential first generation entrepreneurs, who have already successfully completed EDP/SDP/ESDP/VT programmes, through the selected lead agencies i.e. 'Udyami Mitras', in the establishment and management of the new enterprise, in dealing with various procedural and legal hurdles and in completion of various formalities required for setting up and running of the enterprise. MITCON has been selected as Udyami Mitra for Maharashtra.
Registration of Beneficiaries Under the scheme
MITCON would register the potential entrepreneurs for providing them handholding support.

Eligibility of the Udyami:
1.The person who have already undergone EDP/SDP/ESDP of at least two weeks or who have successfully completed the vocational training (VT) in ITIs.
2. The person who is first generation entrepreneur

Charges for getting the services from MITCON :
For setting up of service enterprises, the Udyami Mitras would be provided handholding charges of Rs. 1,000/- (Rupees one thousand only) by the beneficiary (to be deposited in advance).
For the beneficiaries from special category i.e. SC / ST/ physically handicapped /women/beneficiaries from North-Eastern Region, the beneficiary’s contribution of Rs. 1,000/- shall also be provided as a grant under RGUMY.
For small manufacturing enterprises having investment (in plant and machinery) of more than Rs.25,00,000/-, in addition to entrepreneur’s contribution (Rs.1000/- or nil, as Compulsory), the entrepreneur will also have to make additional contribution towards handholding charges at the rate of 0.1 per cent of the project cost in excess of Rs.25,00,000/- (subject to a ceiling of Rs.10,000/-).

Role and Responsibilities of Udyami Mitras :
MITCON will render following services to the Udyami:

1. Networking, coordinating and follow up with various Government departments/ agencies/ organizations and regulatory agencies on the one hand and with support agencies like Banks/financial institutions, District Industries Centers (DICs), technology providers, infrastructure providers on the other hand, to help the first generation entrepreneurs in setting up their enterprise. Udyami Mitras are expected to help the first generation entrepreneurs in:

a) identification of suitable project/product/enterprise and preparation of bankable project report for the same;

b) creation of the proprietorship firm/ partnership firm/ Company/ Society/ Self Help Group (SHG) etc.;

c) filing of Memorandum (as prescribed under MSMED Act 2006);

d) accessing bank loans, admissible capital subsidy/ assistance under various schemes of the Central /State Government and other agencies /organizations / financial institutions / Banks etc. by networking with respective agencies

e) assistance and support in establishment of work shed/office;

f) sanction of Power load/Electricity connection;

g) selection of appropriate technology and installation of plant and machinery/office equipment etc.;

h) obtaining various registrations/ licenses/ clearances / No Objection Certificates (NOCs) etc. from the concerned regulatory agencies/ Government departments/ local bodies/ Municipal authorities etc.;

i) allotment of Income Tax Permanent Account Number (PAN) and Service Tax/ Sales Tax/ VAT registration etc.;

j) sanction of working capital loan from the banks;

k) arranging tie up with raw material suppliers;

l) preparation and implementation of marketing strategy for the product/ service and market development ;

m) establishing linkage with a mentor for providing guidance in future
n) creation of web page and email address;

2. Once the enterprise has been successfully set up, the Udyami Mitras would also monitor and follow up on the functioning of the enterprise for a further period of minimum 6 months and provide help in overcoming various managerial, financial and operational problems.