Mukhyamantri Saur Swarojgar Yojana — 8% Loans up to ₹1Cr — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.