SF Prep Notes

Himachal Pradesh extends small shopkeepers' welfare scheme to urban areas

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu announced on 21 December 2025 that the Mukhya Mantri Laghu Dukandar Kalyan Yojana has been extended to urban areas as the 'Mukhya Mantri Laghu Dukandar Kalyan Yojana-Shahri'.

Summary

Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu announced on 21 December 2025 that the Mukhya Mantri Laghu Dukandar Kalyan Yojana, in force in rural areas since 2023, has been extended to all urban local bodies as the 'Mukhya Mantri Laghu Dukandar Kalyan Yojana-Shahri', as announced in the state Budget 2025-26. Under the Shahri scheme, distressed small shopkeepers with annual turnover below ₹10 lakh whose business loans have turned into NPAs will get One-Time Settlement assistance of up to ₹1 lakh through banks, borne entirely by the state government. Applications go to the urban local bodies, and banks submit monthly OTS claims through a nodal bank to the Urban Development Department.

Key facts

Announced
21 December 2025, by CM Sukhvinder Singh Sukhu
Scheme
Mukhya Mantri Laghu Dukandar Kalyan Yojana-Shahri
Coverage
All urban local bodies; rural version since 2023
Eligibility
Small shopkeepers with turnover below ₹10 lakh and NPA business loans
Benefit
One-Time Settlement assistance up to ₹1 lakh, paid by the state

Practice MCQs 2 questions

Q1

Which Himachal Pradesh scheme was extended to all urban local bodies, as announced by the Chief Minister on 21 December 2025?

Show answer

Correct answer: D — Mukhya Mantri Laghu Dukandar Kalyan Yojana

TOI and PTI: the Mukhya Mantri Laghu Dukandar Kalyan Yojana was extended to urban areas as the 'Mukhya Mantri Laghu Dukandar Kalyan Yojana-Shahri'.

Q2 Advanced

Under Himachal Pradesh's Mukhya Mantri Laghu Dukandar Kalyan Yojana-Shahri, what is the maximum One-Time Settlement assistance for an eligible small shopkeeper with an NPA business loan?

Show answer

Correct answer: A — ₹1 lakh

PTI (Outlook, NewsDrum): shopkeepers with turnover below ₹10 lakh and NPA business loans get OTS assistance of up to ₹1 lakh, borne by the state.

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