Young people who until recently headed to other states in search of employment are now establishing their own businesses and creating jobs for others.
The state government’s ‘Mukhyamantri Rojgar Srijan Yojana’ (CMEGP) is proving to be a game-changer in transforming the lives of Jharkhand’s youth and empowering them economically.
With loans of up to ₹25 lakh and a substantial 40% subsidy, this scheme has opened up new horizons of self-reliance for thousands of educated, unemployed young people in the state.
In this special report, discover how this scheme is curbing youth migration at the grassroots level and giving wings to their dreams.
What is the Mukhyamantri Rojgar Srijan Yojana?
Run by the Jharkhand government, this scheme provides financial assistance to educated, unemployed youth from both rural and urban areas to start their own businesses.
It offers loans of up to ₹25 lakh for setting up businesses or shops, purchasing passenger vehicles, or starting ventures in the service sector.
Key features of the scheme (Jharkhand Mukhyamantri Rojgaar Yojana)
Substantial subsidy of up to 40%: The government provides a subsidy of 40% of the total loan amount, up to a maximum of ₹5 lakh.
Loans without a guarantor: Applicants seeking a loan of up to ₹50,000 do not require a guarantor.
Special incentive for vehicle purchase: Financial assistance is easily available under the scheme for purchasing commercial or passenger vehicles for self-employment.
Who is eligible for the scheme?
Target groups: Scheduled Tribes (ST), Scheduled Castes (SC), Minorities, Backward Classes (OBC), Persons with Disabilities (Divyangjan), and members of ‘Sakhi Mandals’ (women’s self-help groups).
Age limit: Applicants must be between 18 and 50 years of age.
Income limit: The annual income of the applicant’s family must not exceed ₹5 lakh. Residency: The applicant must be a permanent resident of Jharkhand.
For which businesses can the loan be availed?
This scheme grants youth complete freedom to start a business or enterprise of their choice—
Passenger and commercial vehicles: E-rickshaws, auto-rickshaws, tractors, pickup vans, buses, etc. (for transport businesses).
Micro and small industries: Flour mills, processing units, handicrafts, readymade garments, textile units, etc.
Service sector: Mobile repairing, computer/IT centers, salons, laundry services, tent houses, grocery/retail shops, etc.
Agriculture-based businesses: Dairy farming, poultry, goat rearing, fisheries, etc.
Step-by-step application process
The process has been made transparent and simple through a government portal—Visit the portal: Go to the official portal cmegp.jharkhand.gov.in.
Registration: Register by providing your name, mobile number, and Aadhaar number, and selecting your district.
Fill out the form: Enter complete details regarding your project/business.
Upload documents—
Caste and income certificates
Residential (domicile) certificate
Aadhaar card and PAN card
Project report (details of estimated business costs)
Passport-sized photograph and bank passbook details
Approval and loan sanction: The application is reviewed by the district-level selection committee. Upon approval, the bank sanctions and disburses the loan amount.
Loans worth over ₹250 crore for the Backward Classes
According to official data, loans amounting to more than ₹250.72 crore have been disbursed to 6,450 beneficiaries from the Backward Classes over the last five years. Most of these loans were disbursed over the last three financial years, indicating that the scheme has gained significant momentum recently. Curbing Migration: With the help of this scheme, thousands of youths in districts like Ranchi, Garhwa, Dhanbad, and Dumka have set up auto-rickshaws, passenger vehicles, grocery stores, and small manufacturing units.
Beneficiaries Failing to Repay Installments on Time: While youths are benefiting from the scheme, the Welfare Department has issued notices to beneficiaries and their guarantors who are failing to repay loan installments on time. The department has urged them to fulfill their repayment obligations responsibly to ensure the revolving fund remains active, thereby allowing other youths to benefit as well.
Concerned over the non-repayment of funds, the Welfare Department took a firm stance and recently issued notices on November 3, 2025, to 238 beneficiaries in Garhwa.
Scheme Grappling with Budgetary Constraints: The ‘Chief Minister’s Employment Generation Scheme’ (Mukhyamantri Rojgar Srijan Yojana)—which aims to make the youth of Jharkhand self-reliant—is struggling with a lack of funds.
In response to a short-notice question (No. 58) raised by Panki MLA Dr. Kushwaha Shashi Bhushan Mehta in the Legislative Assembly in March 2026, the government acknowledged that applications from 10,185 eligible youths across the state are pending approval.
Despite an allocation of ₹170 crore for the 2025-26 financial year, thousands of youths from the Backward Classes (4,531), Scheduled Tribes (2,566), Scheduled Castes (1,650), and minority communities (1,438) remain in the queue for loans.
The government provided a ‘partially negative’ response regarding the budget shortage, raising serious questions about the scheme’s slow implementation on the ground and the prolonged waiting period faced by the youth. At a Crossroads
The ‘Chief Minister’s Employment Generation Programme’ (CMEGP)—launched in Jharkhand with the aim of curbing youth migration and transforming young people from ‘job seekers’ into ‘job creators’ through self-employment—currently stands at a crossroads.
While the scheme has given wings to the dreams of thousands of youths, serious questions are simultaneously being raised regarding its implementation due to budgetary constraints and the irregular repayment of loan installments.
