RAS question
Rajasthan Mukhyamantri Laghu Udyog Protsahan Yojana provides:
Correct answer: (D) Subsidy on loans for small enterprises.
Rajasthan's Mukhyamantri Laghu Udyog Protsahan Yojana provides interest subsidy on institutional loans for setting up or expanding small enterprises.
Explanation
Mukhyamantri Laghu Udyog Protsahan Yojana is a Rajasthan MSME-support scheme built around subsidised credit, not direct allotments or employment guarantees. The Economic Review 2024-25 states that MLUPY offers loans through financial institutions for setting up new enterprises or expanding existing ones in manufacturing, service and trade sectors. Its benefit is an interest subsidy: 8 per cent on loans up to Rs 25 lakh, 6 per cent on loans up to Rs 5 crore and 5 per cent on loans up to Rs 10 crore for small-scale entrepreneurs. The scheme promotes entrepreneurship and self-employment by lowering the effective cost of borrowing for small enterprises.
Why the other options are wrong
- (A) Government jobs are not the benefit described under MLUPY; the scheme supports entrepreneurs through subsidised loans for enterprises.
- (B) The cited scheme does not provide free land to citizens; it provides loans through financial institutions with interest subsidy.
- (C) MLUPY is aimed at small-scale entrepreneurs in manufacturing, service and trade sectors, not at tax exemption for multinational companies only.
Concept
This tests Rajasthan economy schemes for MSME and entrepreneurship promotion: the key task is to identify the policy instrument attached to the named scheme. Here, the instrument is interest subsidy on loans, which separates MLUPY from job, land or tax-exemption schemes.