Mukhyamantri Saur Swarojgar Yojana — 8% Loans up to ₹1Cr
UREDA's debt scheme for Uttarakhand residents to build 20 kW to 200 kW solar plants, with cooperative bank loans at 8% and a 25-year UPCL power purchase tie-up.
- Funding amount
- ₹10L – ₹1Cr (debt / loan)
- Funding type
- Debt / Loan
- Provider
- Uttarakhand Renewable Energy Development Agency (UREDA) (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Mukhyamantri Saur Swarojgar Yojana is Uttarakhand's route into solar entrepreneurship. It is run by the Uttarakhand Renewable Energy Development Agency (UREDA), which operates under the state's Department of Energy, and its purpose is to turn residents into owners and operators of solar power generating assets rather than mere consumers of electricity.
The structure is built on borrowing rather than handouts. Once a project is allotted, the beneficiary funds it through a loan from an Uttarakhand State or District Cooperative Bank at 8% interest, and the electricity the plant produces is purchased by Uttarakhand Power Corporation Limited (UPCL) for 25 years at prevailing tariff rates. That long off-take arrangement removes the biggest risk a first-time generator faces — finding a buyer for the power.
Project sizes span from 20 kW up to 200 kW, with capital costs of ₹10 lakh to ₹1 crore, so the scheme fits both modest rooftop-scale ventures and larger installations. Allottees who apply as a proprietorship can also tap the incentives offered under the state's MSME Policy-2023, administered by the Industries Department.
The stated aim is self-employment and economic independence for local households, achieved by putting Uttarakhand's renewable energy potential to productive use.
Highlights
- Loans from ₹10 lakh up to ₹1 crore, at 8% interest from Uttarakhand State/District Cooperative Banks
- Project capacities of 20 kW, 25 kW, 50 kW, 100 kW and 200 kW, each with its own land requirement
- UPCL purchases the generated electricity for 25 years at prevailing tariff rates
- MSME Policy-2023 incentives from the Industries Department for proprietorship applicants
- Open to permanent Uttarakhand residents — one plant per family, one project per applicant
- Online applications through msy.uk.gov.in, with a rolling, always-open deadline
Who can apply
The scheme is deliberately restricted to individuals who will own and run the plant themselves, so the eligibility conditions are a short, firm list.
- Permanent residency in Uttarakhand is the base requirement. Applicants from outside the state cannot apply.
- One plant per family. A single solar power plant is allotted per family, and any one applicant can take up only one project under the scheme.
- Proprietorship only. To claim the benefits available under the current MSME Policy, the application must be made in the name of a proprietorship. Partnership firms, companies, trusts and societies are not permitted to participate.
No further stage, sector, turnover or DPIIT-related conditions are listed by the scheme, so a Uttarakhand resident who satisfies the residency, one-project and proprietorship tests is eligible to apply.
Mukhyamantri Saur Swarojgar Yojana — 8% Loans up to ₹1Cr is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Mukhyamantri Saur Swarojgar Yojana — 8% Loans up to ₹1Cr accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
Support under this scheme comes as a loan, not as a grant or equity investment, and it is sized to the capacity of the plant you propose to build.
Loan terms
- Financing is provided by Uttarakhand State and District Cooperative Banks at an interest rate of 8% per annum.
- Project cost ranges from ₹10 lakh for a 20 kW plant up to ₹1 crore for a 200 kW plant.
Available project capacities and their costs
- 20 kW — ₹10 lakh
- 25 kW — ₹12.50 lakh
- 50 kW — ₹25 lakh
- 100 kW — ₹50 lakh
- 200 kW — ₹1 crore
Each capacity carries its own corresponding land requirement, so the plot you bring to the application has to match the project size you choose.
Beyond the loan
- Beneficiaries are eligible for the incentives and benefits available under the MSME Policy-2023, offered by the Industries Department.
- Uttarakhand Power Corporation Limited (UPCL) guarantees purchase of the electricity generated for 25 years at prevailing tariff rates. This long-term offtake commitment is the income backbone of the project, giving the loan a predictable revenue stream to be repaid from.
About the provider
Mukhyamantri Saur Swarojgar Yojana — 8% Loans up to ₹1Cr is offered by Uttarakhand Renewable Energy Development Agency (UREDA), a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Allotment is not automatic. Once an application is filed online, it passes through a technical check and a committee decision before a plant is assigned.
- Online submission — the applicant files the form and supporting documents through the official portal.
- Technical Feasibility Review (TFR) — the application is forwarded to Uttarakhand Power Corporation Limited (UPCL), which examines the proposed project on technical grounds.
- Return to UREDA — after completing the review, UPCL sends the application back to UREDA.
- Allotment committee — the district office places the application before the dedicated allotment committee, which considers it and records a recommendation.
- Official allocation — acting on that recommendation, UREDA allocates the solar power plant to the eligible applicant, which completes the selection process.
The scheme does not publish fixed timelines for these stages, so applicants should allow for the technical review and committee cycle before an allotment is confirmed.
Documents you’ll need
Before you apply to Mukhyamantri Saur Swarojgar Yojana — 8% Loans up to ₹1Cr, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Who this is best for
Mukhyamantri Saur Swarojgar Yojana — 8% Loans up to ₹1Cr is best suited for startups in India seeking non-dilutive funding of ₹10L – ₹1Cr. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
What exactly is the Mukhyamantri Saur Swarojgar Yojana?
It is a self-employment scheme from the Uttarakhand Renewable Energy Development Agency (UREDA), which works under the state's Department of Energy. The scheme helps residents of Uttarakhand set up and run their own solar power generation projects, so that they earn an income from the electricity the plant produces while adding clean energy capacity to the state.
How much funding can I get, and what project sizes are offered?
The scheme supports projects of five capacities: 20 kW costing ₹10 lakh, 25 kW costing ₹12.50 lakh, 50 kW costing ₹25 lakh, 100 kW costing ₹50 lakh, and 200 kW costing ₹1 crore. In other words, project costs run from ₹10 lakh to ₹1 crore, and each capacity has a matching land requirement you must be able to meet.
What interest rate will I pay on the loan?
Selected candidates receive financing from Uttarakhand State or District Cooperative Banks at an interest rate of 8% per annum. The loan is repaid from the revenue your plant earns by selling electricity.
Is this a grant or a loan — and does the scheme take equity in my project?
It is a loan scheme. You borrow from a cooperative bank and repay it at 8% interest, and no equity stake in your project or business is taken in return for the funding. Because the electricity has a guaranteed buyer in UPCL for 25 years, the repayment is designed to be covered by project revenue rather than by diluting your ownership.
Who is eligible to apply for this scheme?
You must be a permanent resident of Uttarakhand. Only one solar power plant is allotted per family, and an individual applicant can take up only one project. If you want the benefits under the current MSME Policy, the application has to be made as a proprietorship — partnership firms, companies, trusts and societies are not allowed.
Do I need DPIIT recognition or MSME registration to apply?
Neither DPIIT recognition nor MSME registration is listed among the scheme's eligibility conditions. What the scheme does specify is that the application must be made as a proprietorship if you want to claim the incentives available under the MSME Policy-2023, which are administered by the Industries Department.
Which documents do I need to submit?
The application requires a permanent residence certificate, an Aadhar card, an identity card, payment of the application fee, an affidavit, and all documents relating to the land proposed for the solar project. Make sure every detail is accurate and complete before you submit through the portal.
How do I apply, and is there a deadline?
Applications are submitted online at https://msy.uk.gov.in/. The scheme runs on a rolling basis and is always open, so there is no closing date to race against — but the application is only considered complete once every required field and document has been uploaded.
What happens after I submit my application?
Your application goes to Uttarakhand Power Corporation Limited (UPCL) for a Technical Feasibility Review. UPCL then returns it to UREDA, and the district office puts it before the dedicated allotment committee for a recommendation. If the committee recommends your case, UREDA officially allocates the solar power plant to you.
Who buys the electricity my plant generates?
Uttarakhand Power Corporation Limited (UPCL) purchases the electricity your plant produces for a period of 25 years, at the prevailing tariff rates. This guaranteed long-term offtake is what makes the project bankable and provides a stable income stream over the life of the loan.
Who offers Mukhyamantri Saur Swarojgar Yojana — 8% Loans up to ₹1Cr?
Mukhyamantri Saur Swarojgar Yojana — 8% Loans up to ₹1Cr is offered by Uttarakhand Renewable Energy Development Agency (UREDA), a government body. It is provided as non-dilutive funding.
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