Launched in 2017, the Deen Dayal Upadhyaya Swavalamban Yojana (DDUSY) is a flagship self-employment scheme by the Government of Arunachal Pradesh. It empowers unemployed APST youth to start or expand micro and small enterprises by offering:

• 40% capital investment subsidy (₹10–50 lakh loan range)
• Additional 5% interest subvention for women
• End-to-end support through DPOs, APIIP, and state banks

Whether it’s a homestay, weaving cluster, diagnostic lab, or bamboo product unit, DDUSY helps build viable livelihoods with structured financial and institutional support.

Table of Contents

1. What is the DDUSY Scheme?
2. Who is Eligible?
3. Benefits and Subsidies Offered
4. Focus Sectors under DDUSY
5. How the Loan & Subsidy System Works
6. Step-by-Step Application Process
7. District-Level Screening Committee Explained
8. Common Mistakes to Avoid
9. How Sigma Solutions Can Help
10. FAQs
11. Conclusion

1. What is the DDUSY Scheme?

DDUSY is a loan-linked capital subsidy program for self-employment. It targets unemployed residents of Arunachal Pradesh, aged 18+, who wish to:

• Start a new venture
• Expand an existing micro/small business
• Operate in eligible sectors such as tourism, food processing, healthcare, and manufacturing

2. Who is Eligible?

To apply, you must:

• Be a permanent resident of Arunachal Pradesh (APST category)
• Be unemployed and ideally under 40 years of age
• Have a viable project idea and matching contribution (10–30%)

Priority is given to:

• Women entrepreneurs
• Technically qualified youth (Diploma, ITI, healthcare, tourism)
• Doctors planning clinics in border areas

3. Benefits and Subsidies Offered

4. Focus Sectors under DDUSY

DDUSY promotes enterprises that generate local jobs and economic value:

• Food Processing: Cold storage, packaging, dairy, spice grinding
• Eco-Tourism: Homestays, campsites, nature resorts
• Weaving/Textiles: Loom modernisation, weaving clusters
• Small-Scale Manufacturing: Bamboo, wooden decor, fabrication units
• Medical & Diagnostics: Labs or clinics (25+ beds preferred)
• Repair & Services: Mobile/computer repair, garages

5. How the Loan & Subsidy System Works

• Banks handle credit checks and sanction loans
• Subsidy is front-ended and credited only after loan sanction
• No repayment guarantee by the state; borrowers are responsible

6. Step-by-Step Application Process

Step 1: Draft a DPR or 3-Page Concept Note

• Include project goals, sector, investment plan, returns

Step 2: Submit to District Planning Officer (DPO)

• Attach Aadhaar, ST certificate, qualification proof, no-dues certificate

Step 3: Attend DLSC Interview

• Present your idea to the committee via a PowerPoint or verbal pitch

Step 4: Bank Processing

• CIBIL score and DPR reviewed
• Loan sanctioned based on merit

Step 5: Subsidy Disbursal

• Govt transfers subsidy to your bank
• Bank disburses combined funds to your account

7. District-Level Screening Committee (DLSC)

The DLSC ensures only viable, transparent projects are funded. Committee includes:

• Deputy Commissioner (Chair)
• District Planning Officer
• District Industries Officer
• Lead Bank Manager
• Officers from Tourism, Agriculture, Horticulture, Textile, etc.

Meetings occur monthly to ensure timely processing.

8. Common Mistakes to Avoid

• Submitting incomplete DPRs
• Not arranging margin money in advance
• Selecting ineligible sectors (e.g., OPDs, petty trade)
• Missing committee presentation or not preparing
• Ignoring follow-up with DPO or bank after shortlisting

9. How Sigma Solutions Can Help

From concept to compliance, Sigma Solutions offers:

• ✅ Feasibility Study & DPR Creation
• ✅ Application Drafting & Document Filing
• ✅ Training for DLSC Presentation
• ✅ Liaisoning with Banks and DPO
• ✅ Machinery Procurement & Vendor Matching
• ✅ Post-Approval Setup (GST, Licensing, Branding)

10. Frequently Asked Questions (FAQs)

Q1. Can I apply if I already run a small business?
Yes, if you’re expanding in an eligible sector and meet funding criteria.

Q2. Is land cost covered in the subsidy?
No. Land and civil structures are excluded.

Q3. What is the typical loan tenure?
Usually 5–7 years including moratorium.

Q4. What if I default on repayment?
You lose interest subsidy, and liability falls under standard bank norms.

Q5. Is collateral required?
Not for loans below ₹50 lakh (covered under CGTMSE).

Q6. Can I apply again if previously rejected?
Yes, after improving the project plan or documentation.

Q7. Does Sigma Solutions help with DPRs and registration?
Yes, we offer end-to-end DDUSY support services.

11. Conclusion

The Deen Dayal Upadhyaya Swavalamban Yojana is one of the most impactful entrepreneurship schemes in Arunachal Pradesh. With capital subsidy, interest relief, and focus on youth, women, and tribal inclusion, it turns ideas into income.

Whether you’re starting a homestay, workshop, clinic, or training center—DDUSY can fund your future.

Sigma Solutions is here to help you prepare, present, and succeed.

📞 Call us: +91-9084729472
📧 Email: [email protected]
🌐 Website: www.sigmasolutions.in