The main 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 or vocational training from ITIs, 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.

Role and Responsibilities of Udyami Mitras

The selected lead agencies i.e. Udyami Mitras would be expected to render following services:

(i)

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/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; and

(m)

Establishing linkage with a mentor for providing guidance in future

(n)

Creation of web page and email identity;

(ii)

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.