Credit Flow to Startups and Rural Enterprises | 15 Jun 2024

Why in News?

The Uttar Pradesh government has eased institutional credit flow to startups and rural enterprises to provide financial assistance and generate self-employment opportunities for the youth.

• Separately, the state tourism department has also signed two agreements for improving rural tourism and creating employment.

Key Points

• The state plans to fund about 8,300 enterprises under two credit schemes: Mukhyamantri Yuva Swarojgar Yojana (MYSY) and Mukhyamantri Gramodyog Rojgar Yojana (MMGRY).
  • According to a State Level Bankers' Committee (SLBC) report, 6,259 and 723 units have been approved under MYSY and MMGRY, respectively.
• Startups and rural enterprises have got institutional funding worth more than Rs 163 crore.
  • Under MYSY, the state offers loans of up to Rs 25 lakh to set up industries and up to Rs 10 lakh for the service sector entities.
  • UP is home to nearly 52 government-recognised incubators and more than 7,200 startups registered with the Department for Promotion of Industry and Internal Trade.
• The signed agreements will foster sustainable tourism and community empowerment and augment facilities and infrastructure, offering tourists an authentic experience of rustic village life.
  • The memoranda of understanding have been signed with the State Rural Livelihood Mission (UPSRLM) and Manyawar Kanshiram Institute of Tourism Management.