₹1.25 Crore E-Rickshaw Manufacturing Unit Established with Support from Mukhyamantri Gramodyog Rojgar Yojana, Creating Jobs for 20–25 Local Workers
Rampur: The Uttar Pradesh government’s Mukhyamantri Gramodyog Rojgar Yojana is helping rural entrepreneurs rebuild businesses, generate employment and achieve financial independence. In Rampur, the scheme has enabled an entrepreneur to overcome devastating flood losses and establish a modern e-rickshaw manufacturing unit, demonstrating the potential of government-backed financial assistance in promoting rural industrialisation.
Entrepreneur Nazim was operating an industrial unit, Western Auto Plastic Parts, until 2022, manufacturing visors, mudguards and other automobile components for leading vehicle manufacturers. However, devastating floods in Rampur in 2022 inundated his factory, destroying machinery and raw materials worth more than ₹50 lakh. The disaster brought his established business to a complete standstill and wiped out his accumulated savings.
Determined to rebuild his enterprise, Nazim decided to venture into electric vehicle manufacturing, recognising the growing demand for environmentally friendly transportation. With guidance from the district administration and the Khadi and Village Industries Department, he applied for financial assistance under the Mukhyamantri Gramodyog Rojgar Yojana. In line with the government’s emphasis on women’s empowerment, the financial assistance proposal was submitted in the name of his wife, Sadiya Rais.
With coordination from the bank, an institutional loan of ₹9.5 lakh was sanctioned, providing crucial financial support to revive the business. Combining the loan with personal savings and funds mobilised from other sources, the family invested approximately ₹1.25 crore to establish a modern e-rickshaw manufacturing facility in Rampur.
The unit undertakes the entire manufacturing process in-house, rather than limiting its operations to assembling externally sourced components. Its production facilities include raw metal processing, chassis manufacturing, body fabrication, welding, passenger seat production, denting, painting and internal wiring. The chassis number of the vehicles has received the requisite approval, while the e-rickshaws manufactured at the facility have obtained regulatory and safety certification from the International Centre for Automotive Technology (ICAT), Gurugram, an authorised automotive testing and certification institution.
The manufacturing unit currently produces between 10 and 30 e-rickshaws per month, depending on market demand. Over the past year, more than 40 vehicles have been manufactured and registered with the Regional Transport Office (RTO), while another batch of 20 vehicles is ready for delivery. The initiative is helping position Rampur as an emerging centre for local manufacturing in the clean mobility sector.
Beyond restoring the family’s financial stability, the enterprise has generated regular employment for 20 to 25 skilled and semi-skilled workers from the district. Local artisans are engaged in chassis welding, fabrication, seat manufacturing and electrical wiring, providing livelihoods to several families. The unit generates an estimated annual net profit of ₹2.5 lakh to ₹3 lakh, supporting the family’s livelihood and contributing to the local economy.
The entrepreneur has also maintained financial discipline, making all monthly loan instalments on time and keeping the loan account in good standing. Building on the success of its existing five-seater, 38-inch model, the unit is planning to expand into the manufacturing of eight-seater L-5 category electric vehicles with widths ranging from 42 to 48 inches. The proposed expansion, including regulatory approvals and plant development, is expected to require additional investment of approximately ₹30 lakh and could create further employment opportunities for local youth.
The Mukhyamantri Gramodyog Rojgar Yojana, implemented by the Uttar Pradesh Khadi and Village Industries Board, aims to strengthen the rural economy by facilitating the establishment of micro and small enterprises. The scheme provides accessible institutional loans through commercial and regional rural banks for eligible projects with a maximum project cost of ₹10 lakh. It seeks to encourage entrepreneurship based on traditional skills, local resources and modern manufacturing, while reducing migration from rural areas to cities in search of employment.
The scheme also incorporates special financial provisions for socially and economically disadvantaged groups. While male entrepreneurs from the general category are eligible for capital subsidy as per applicable rules, special assistance is available to entrepreneurs belonging to Scheduled Castes, Scheduled Tribes, Other Backward Classes, minority communities and persons with disabilities, as well as women entrepreneurs across all categories. Eligible beneficiaries from these groups can receive interest subsidy of up to 13 per cent for a period of three years, subject to scheme provisions, significantly reducing their borrowing burden.
To ensure transparency and timely implementation, the entire application process is conducted through an online departmental portal. After preliminary scrutiny, eligible applications are examined by the District-Level Task Force Committee (DLTFC), chaired by the district administration. Selected applications are then forwarded to banks for consideration and loan approval, eliminating the need for intermediaries.
The scheme also provides Entrepreneurship Development Programme (EDP) training through Rural Self Employment Training Institutes (RSETIs) and recognised training centres. Beneficiaries receive practical guidance in financial management, marketing strategies, quality control and accounting to help them manage their businesses effectively and remain competitive.
In Rampur, regular coordination between the district administration and banks, along with periodic review meetings, has helped accelerate loan approvals and disbursements. The success of Nazim’s enterprise highlights how timely institutional credit, administrative support and entrepreneurial determination can transform a financial setback into an opportunity for sustainable growth.
The initiative is not only promoting self-employment and strengthening the rural industrial base but also supporting cleaner mobility and pollution reduction through local electric vehicle manufacturing. The experience of the Rampur unit illustrates the role of government-backed rural employment schemes in fostering economic resilience, encouraging innovation and creating sustainable livelihood opportunities.
