Rajiv Yuva Vikasam 2026: ₹4 Lakh Self-Employment Loans in Telangana | Eligibility, Apply

The Rajiv Yuva Vikasam Scheme is a flagship self-employment initiative launched by the Government of Telangana to transform unemployed youth from marginalised communities into job creators. The scheme was formally launched on March 15, 2025, by Chief Minister A. Revanth Reddy on the Assembly premises . With a massive budget allocation of ₹6,000 crore, the scheme aims to provide self-employment opportunities to 5 lakh youth across the state .

The scheme targets youth from Scheduled Castes (SC), Scheduled Tribes (ST), Backward Classes (BC), Most Backward Classes (MBC), Minority communities, and EBC/EWS categories. Under this initiative, eligible beneficiaries can access concessional loans of up to ₹4 lakh with substantial subsidies ranging from 70% to 100%, depending on the unit cost . The scheme is implemented through the OBMMS (Online Beneficiary Management and Monitoring System) portal, ensuring transparency and ease of access .

The scheme represents a significant shift from the traditional job-seeking mindset to entrepreneurship, with the government positioning it as a movement towards an equitable and industrially vibrant Telangana . Nearly 16 lakh youth submitted applications during the initial registration period, reflecting the immense demand for such self-employment opportunities .

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Overview Table: Rajiv Yuva Vikasam Scheme 2026-27

ParticularsDetails
Scheme NameRajiv Yuva Vikasam Scheme
Launched ByGovernment of Telangana
Launch DateMarch 15, 2025
Nodal DepartmentsSC, ST, BC, Minority, and EBC Development Corporations
Target BeneficiariesSC, ST, BC, MBC, Minority, and EBC/EWS youth
Total Budget₹6,000 crore
Expected Beneficiaries5 lakh youth
Maximum Assistance₹4 lakh (concessional loan with subsidy)
Application ModeOnline through OBMMS portal
Official Portalhttps://tgobmmsnew.cgg.gov.in
Income Limit (Rural)₹1.5 lakh per annum
Income Limit (Urban)₹2 lakh per annum
Age Limit (Non-Agri)21-55 years
Age Limit (Agri/Allied)21-60 years

Introduction and Background

The Rajiv Yuva Vikasam Scheme was conceived as a bold intervention to address the unemployment crisis in Telangana, particularly among marginalised communities. The scheme was a key promise of the Congress government, led by Chief Minister A. Revanth Reddy, to empower youth and create a culture of entrepreneurship .

The scheme was formally launched on March 15, 2025, with the government announcing a ₹6,000 crore budget allocation. Deputy Chief Minister Mallu Bhatti Vikramarka emphasised that the scheme would provide financial assistance to 5 lakh unemployed youth for self-employment initiatives in the 2025-26 financial year . The application process was opened from March 15 to April 5, 2025, with plans to distribute sanction letters on Telangana Formation Day (June 2) .

The scheme is implemented through respective development corporations—SC Corporation, ST Corporation, BC Corporation, and Minorities Development Corporation—ensuring targeted support for each community . However, as of mid-2026, the scheme has faced implementation delays, leaving nearly 16 lakh applicants in uncertainty about the rollout . The government has held review meetings to address these challenges and accelerate implementation .


Objectives of the Scheme

The Rajiv Yuva Vikasam Scheme is designed with multiple interconnected objectives aimed at youth empowerment and economic development.

  • Transform job seekers into job creators by promoting entrepreneurship among unemployed youth from marginalised communities
  • Provide financial assistance of up to ₹4 lakh with substantial subsidies to help youth establish self-employment ventures
  • Reduce unemployment by creating self-employment opportunities for 5 lakh youth across Telangana
  • Build a strong local industrial ecosystem by promoting mini-industries, small-scale factories, and service-oriented enterprises
  • Foster economic independence and self-reliance among SC, ST, BC, MBC, and Minority communities
  • Boost productivity and market share through youth-led enterprises
  • Encourage and utilise the potential of Telangana’s youth for state economic development
  • Ensure inclusive growth by targeting economically weaker sections with dedicated income and age criteria

Eligibility Criteria

The eligibility criteria for the Rajiv Yuva Vikasam Scheme are clearly defined to ensure benefits reach the intended beneficiaries .

Community Eligibility:

CategoryEligibility
SC, ST, BC, MBCMust belong to these communities
Minority CommunitiesMuslim, Christian, Sikh, Jain, Buddhist, Parsi
EBC/EWSEconomically weaker sections

Income Criteria:

AreaAnnual Family Income
Rural Areas₹1,50,000 or less
Urban Areas₹2,00,000 or less
(Municipalities, Municipal Corporations, Nagar Panchayats)

Age Criteria:

SectorAge Limit
Non-Agricultural Schemes21 to 55 years (as of July 1 of implementation year)
Agriculture and Allied Sectors21 to 60 years (as of July 1 of implementation year)

Other Eligibility Requirements:

  • The applicant must be a permanent resident of Telangana state
  • The applicant should not be an employee of the state or central government
  • One household shall be limited to one self-employment scheme within a period of five years
  • Preference given to first-time beneficiaries, women, and persons with disabilities

Funding and Subsidy Structure

The Rajiv Yuva Vikasam Scheme offers one of the most generous funding structures among state self-employment initiatives. The subsidy percentage varies based on the unit cost .

Funding Pattern:

Unit CostSubsidyBank Loan
Up to ₹50,000100%Nil
₹50,001 to ₹1,00,00090%10%
₹1,00,001 to ₹2,00,00080%20%
₹2,00,001 to ₹4,00,00070%30%

Special Provisions:

CategoryFunding Pattern
Minor Irrigation Projects100% subsidy (regardless of unit cost)
Vulnerable Groups (up to ₹1 lakh)90% subsidy + 10% from EMF

Key Points:

  • The maximum financial assistance available is ₹4 lakh
  • The remaining amount can be arranged by the applicant through self-investment or bank loan
  • The subsidy is provided by the respective development corporations

Application Process

The application process for the Rajiv Yuva Vikasam Scheme is designed to be accessible and transparent .

Step-by-Step Application Process:

Step 1: Visit the Official Portal

Go to the OBMMS portal at https://tgobmmsnew.cgg.gov.in

Step 2: Register Online

Complete the online registration by providing accurate personal, income, and category details

Step 3: Fill Application Form

Enter details including:

  • Aadhaar number
  • Ration card or income certificate number
  • Caste certificate details
  • Sector-specific information (driving licence for transport, pattadar passbook for agriculture)

Step 4: Download the Form

After completing the online registration, download the filled application form

Step 5: Submit Physical Application

Submit the hard copy along with required documents at:

  • Rural Areas: Mandal Praja Palana Seva Kendralu (MPPSK) at MPDO office
  • Urban Areas: Municipal Commissioner’s office or Zonal Commissioner’s office

Step 6: Receive Acknowledgment

Note down the application number for future tracking

Helpdesk Support:

A helpdesk is established at each Mandal Praja Palana Seva Kendralu to assist applicants with the online registration process

Important Dates:

EventDate
Registration StartMarch 15, 2025
Registration Last DateApril 5, 2025
Application ScrutinyApril 6 – May 31, 2025
Sanction Letters DistributionJune 2, 2025 (Telangana Formation Day)

Documents Required

Applicants must prepare the following documents for the Rajiv Yuva Vikasam Scheme application .

Essential Documents:

DocumentPurpose
Aadhaar CardIdentity verification
Ration Card or Income CertificateIncome ceiling verification
Caste CertificateCommunity verification
Bank Account DetailsFor loan and subsidy disbursement
Passport-size PhotographApplication attachment
Mobile NumberFor communication and status updates

Sector-Specific Documents:

SectorDocument
Transport SectorPermanent Driving Licence
Agriculture SectorPattadar Passbook
DisabilitySADAREM Certificate (for PwDs)

Additional Documents:

  • Vulnerable Group Certification (certified by Mandal Level Committee)
  • Education Certificates (if applicable)
  • Work Experience Certificates (if applicable)

Selection and Preference Criteria

The selection process for the Rajiv Yuva Vikasam Scheme follows specific guidelines to ensure fair and targeted distribution of benefits .

Verification Process:

Mandal Level Screening Committee:

  • Verifies authenticity of documents
  • Checks eligibility of candidates
  • Assesses feasibility of the self-employment scheme selected by the candidate

District Level Committee (DLC):

  • Receives the list of eligible candidates from the Mandal committee
  • Provides final approval after bank verification

Preference Categories:

  • Candidates availing the Entrepreneur Support Scheme for the first time
  • Women candidates (minimum 25% of total target) – particularly single and widowed women
  • Persons with disabilities (PwDs) – minimum 5% reservation
  • Family members of martyrs of Telangana agitation and SC sub-classification agitation
  • Candidates with existing skills in self-employment

Key Conditions:

  • One self-employment scheme per household within a period of five years

Implementation Status and Challenges

The Rajiv Yuva Vikasam Scheme, despite its ambitious vision, has faced significant implementation challenges .

Current Status (as of June 2026):

  • Launch: March 15, 2025
  • Applications Received: Approximately 16 lakh youth
  • Budget Allocation: ₹6,000 crore, with BC Welfare Department allocated ₹1,750 crore
  • Implementation: Yet to be rolled out 15 months after launch

Key Challenges:

Financial Constraints: Telangana’s strained financial position has affected implementation

Delays in Rollout: There has been no official update on the status of applications

Uncertainty Among Applicants: Many young people fear the scheme might become another unfulfilled promise

Fund Utilisation Issues: ₹50 crore earmarked for retrofitting auto-rickshaws under the CURE initiative has faced uncertainty

Government Response:

Deputy Chief Minister Mallu Bhatti Vikramarka directed officials in a review meeting to implement all self-employment programmes under the scheme and submit a detailed report on the proposed electric two-wheeler initiative


Benefits and Impact

The Rajiv Yuva Vikasam Scheme is expected to deliver transformative benefits across Telangana .

Expected Benefits:

For Beneficiaries:

  • Access to subsidised loans up to ₹4 lakh
  • Reduced financial burden with 70-100% subsidy
  • Opportunity to start mini-industries or small-scale enterprises
  • Path to become job creators rather than job seekers

For the State:

  • Creation of self-employment opportunities for 5 lakh youth
  • Development of a strong local industrial ecosystem
  • Reduction in unemployment
  • Boost to productivity and innovation
  • Economic growth and inclusive development

Target Sectors:

  • Mini-industries and small-scale factories
  • Service-oriented enterprises
  • Agriculture and allied activities
  • Transport sector
  • Various other self-employment activities

Important Links and PDF Notifications

Official Websites:

OBMMS Portal: https://tgobmmsnew.cgg.gov.in

Telangana Government Portal: https://www.telangana.gov.in

Important Links:

  • OBMMS Registration: Available on the OBMMS portal
  • Application Status: Through the portal
  • Download Forms: Available on the portal

Important Note:

The scheme registration was open from March 15 to April 5, 2025. Candidates who have already applied can check their status on the OBMMS portal. The government is yet to announce further application rounds.


Contact Details

State-level Contacts:

Department of SC/ST/BC/Minority Welfare

OBMMS Portal: https://tgobmmsnew.cgg.gov.in

Address: Government of Telangana, Secretariat, Hyderabad

District-level Contacts:

  • Mandai Praja Palana Seva Kendralu (MPPSK): For application submission and queries
  • MPDO Office: For rural area applicants
  • Municipal Commissioner’s Office: For urban area applicants

Frequently Asked Questions (FAQs)

What is the Rajiv Yuva Vikasam Scheme?

The Rajiv Yuva Vikasam Scheme is a Telangana government initiative providing subsidised loans up to ₹4 lakh to unemployed youth from SC, ST, BC, Minority, and EBC/EWS communities for self-employment .

Who is eligible for the scheme?

Youth aged 21-55 years (non-agriculture) or 21-60 years (agriculture) from SC, ST, BC, MBC, Minority, or EBC/EWS communities, with family income below ₹1.5 lakh (rural) or ₹2 lakh (urban), and permanent residents of Telangana .

How much financial assistance is provided?

Assistance ranges from 100% subsidy for units up to ₹50,000 to 70% subsidy with 30% bank loan for units up to ₹4 lakh .

What is the application process?

Apply online through the OBMMS portal (https://tgobmmsnew.cgg.gov.in), download the form, and submit it at the Mandal Praja Palana Seva Kendralu or Municipal Commissioner’s office .

What documents are required?

Required documents include Aadhaar, ration card or income certificate, caste certificate, bank details, and sector-specific documents like driving licence or pattadar passbook .

Is there any application fee?

No, the application process is free of cost.

What was the application deadline?

The initial application window was from March 15 to April 5, 2025. The government may announce further rounds .

What is the current status of the scheme?

As of June 2026, the scheme has not been implemented despite being launched 15 months ago, leaving 16 lakh applicants in uncertainty .

How many youth are expected to benefit?

The scheme aims to benefit 5 lakh youth across Telangana with a ₹6,000 crore budget allocation .

Who implements the scheme?

The scheme is implemented through the respective development corporations: SC Corporation, ST Corporation, BC Corporation, and Minorities Development Corporation .

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