Himachal Boosts Urban Small Traders with Expanded Welfare Scheme

Himachal Pradesh has expanded its small trader welfare scheme to urban regions, offering financial relief to struggling shopkeepers. The initiative provides One Time Settlement assistance of up to Rs 1 lakh. Aimed at easing the burden of bank debts, it promises transparency and ease of access for eligible beneficiaries.

The government of Himachal Pradesh, under the leadership of Chief Minister Sukhvinder Singh Sukhu, has announced an expansion of its welfare scheme for small shopkeepers, now extending its reach to urban areas. Originally launched in rural regions in 2023, the 'Mukhya Mantri Laghu Dukandar Kalyan Yojana-Shahri' aims to provide financial relief to small urban traders facing economic hardships.

According to an official release, the scheme was part of the 2025-26 Budget and addresses the financial distress of urban shopkeepers, many of whom have been unable to repay bank loans, leading to their accounts becoming Non-Performing Assets (NPAs). The initiative provides a One Time Settlement (OTS) assistance of up to Rs 1 lakh for shopkeepers with annual turnovers below Rs 10 lakh and whose loans have been declared as NPAs.

The Chief Minister emphasized that the scheme would benefit a variety of small business owners in urban areas, including vendors, shopkeepers, and service providers. The state guarantees transparency by establishing a detailed institutional framework involving Urban Local Bodies, banks, and the Urban Development Department. Eligible shopkeepers must submit applications through their respective Urban Local Bodies for processing and verification, reinforcing the government's commitment to supporting economic growth and stability.

(With inputs from agencies.)