Chief minister Sukhvinder Singh Sukhu on Sunday said that the state government has expanded the Mukhya Mantri Laghu Dukandar Kalyan Yojana to urban areas of Himachal Pradesh with the objective of providing financial relief and economic support to small shopkeepers.
The scheme, notified as ‘Mukhya Mantri Laghu Dukandar Kalyan Yojana-Shahri’, would be implemented in all Urban Local Bodies (ULBs) of the state and the notification in this regard had already been issued.
The CM said that this welfare scheme had already been implemented in rural areas since 2023, which has now been extended to urban areas as announced in the Budget 2025-26.
He said that a large number of small traders in urban areas earn their livelihood through small businesses but often lack financial capacity and access to institutional support. Due to financial stress, many of them were unable to repay bank loans and their accounts turned into Non-Performing Assets (NPAs). Keeping these challenges in view, the state government had decided to extend this welfare scheme to urban areas to provide much-needed relief.
Under the scheme, distressed small shopkeepers with an annual turnover of less than ₹10 lakh, who have availed business loans from banks and have been declared NPAs, would be provided One Time Settlement (OTS) assistance of up to ₹1 lakh through banks. The OTS amount would be borne entirely by the state government.
{{/usCountry}}Under the scheme, distressed small shopkeepers with an annual turnover of less than ₹10 lakh, who have availed business loans from banks and have been declared NPAs, would be provided One Time Settlement (OTS) assistance of up to ₹1 lakh through banks. The OTS amount would be borne entirely by the state government.
{{/usCountry}}The CM said that beneficiaries whose total outstanding amount, including principal and interest, was up to ₹one lakh would get full settlement under the scheme. In cases where outstanding dues exceed ₹one lakh, the beneficiary would have to deposit the remaining amount themselves, while the state government would provide ₹one lakh as OTS support. However, the maximum loan amount availed by any beneficiary should not exceed ₹10 lakh.