diff --git a/scheme-manager/.env b/scheme-manager/.env
new file mode 100644
index 0000000..fc09919
--- /dev/null
+++ b/scheme-manager/.env
@@ -0,0 +1,5 @@
+DB_HOST=db
+DB_USER=kushagrapandey
+DB_PASSWORD=postgres
+DB_NAME=postgres
+DB_PORT=5432
\ No newline at end of file
diff --git a/scheme-manager/.gitignore b/scheme-manager/.gitignore
new file mode 100644
index 0000000..e69de29
diff --git a/scheme-manager/Dockerfile b/scheme-manager/Dockerfile
new file mode 100644
index 0000000..4e31dbf
--- /dev/null
+++ b/scheme-manager/Dockerfile
@@ -0,0 +1,16 @@
+# syntax=docker/dockerfile:1
+FROM golang:1.24.2
+
+WORKDIR /app
+
+COPY go.mod ./
+COPY go.sum ./
+RUN go mod download
+
+COPY . .
+
+RUN go build -o scheme-manager .
+
+EXPOSE 8080
+
+CMD ["./scheme-manager"]
\ No newline at end of file
diff --git a/scheme-manager/README.md b/scheme-manager/README.md
new file mode 100644
index 0000000..e69de29
diff --git a/scheme-manager/config/db.go b/scheme-manager/config/db.go
new file mode 100644
index 0000000..79f0494
--- /dev/null
+++ b/scheme-manager/config/db.go
@@ -0,0 +1,42 @@
+package config
+
+import (
+	"fmt"
+	"log"
+	"os"
+
+	"github.com/joho/godotenv"
+	"gorm.io/driver/postgres"
+	"gorm.io/gorm"
+)
+
+// Global DB instance
+var DB *gorm.DB
+
+func ConnectDatabase() {
+	// Load environment variables from .env file
+	err := godotenv.Load()
+	if err != nil {
+		log.Fatal("❌ Error loading .env file:", err)
+	}
+
+	// Build DSN from environment variables
+	dsn := fmt.Sprintf(
+		"host=%s user=%s password=%s dbname=%s port=%s sslmode=disable",
+		os.Getenv("DB_HOST"),
+		os.Getenv("DB_USER"),
+		os.Getenv("DB_PASSWORD"),
+		os.Getenv("DB_NAME"),
+		os.Getenv("DB_PORT"),
+	)
+
+	// Connect to PostgreSQL using GORM
+	db, err := gorm.Open(postgres.Open(dsn), &gorm.Config{})
+	if err != nil {
+		log.Fatal("❌ Failed to connect to database:", err)
+	}
+
+	// Assign db instance to global variable
+	DB = db
+	fmt.Println("✅ Connected to PostgreSQL database!")
+}
\ No newline at end of file
diff --git a/scheme-manager/controllers/applicationsController.go b/scheme-manager/controllers/applicationsController.go
new file mode 100644
index 0000000..14cc16d
--- /dev/null
+++ b/scheme-manager/controllers/applicationsController.go
@@ -0,0 +1,39 @@
+package controllers
+
+import (
+	"net/http"
+
+	"github.com/gin-gonic/gin"
+	"github.com/Aerospace-prog/scheme-manager/database"
+	"github.com/Aerospace-prog/scheme-manager/models"
+)
+
+func CreateApplication(c *gin.Context) {
+	var application models.Application
+
+	// Bind the JSON payload to the struct
+	if err := c.ShouldBindJSON(&application); err != nil {
+		c.JSON(http.StatusBadRequest, gin.H{"error": "Invalid request payload", "details": err.Error()})
+		return
+	}
+
+	// Check if the referenced scheme exists
+	var scheme models.Scheme
+	if err := database.DB.First(&scheme, application.SchemeID).Error; err != nil {
+		c.JSON(http.StatusBadRequest, gin.H{"error": "Scheme not found"})
+		return
+	}
+
+	// Default status
+	if application.Status == "" {
+		application.Status = "Pending"
+	}
+
+	// Save the application to DB
+	if err := database.DB.Create(&application).Error; err != nil {
+		c.JSON(http.StatusInternalServerError, gin.H{"error": "Could not create application", "details": err.Error()})
+		return
+	}
+
+	c.JSON(http.StatusCreated, application)
+}
\ No newline at end of file
diff --git a/scheme-manager/controllers/schemeController.go b/scheme-manager/controllers/schemeController.go
new file mode 100644
index 0000000..7f310b9
--- /dev/null
+++ b/scheme-manager/controllers/schemeController.go
@@ -0,0 +1,105 @@
+package controllers
+
+import (
+	"net/http"
+
+	"github.com/Aerospace-prog/scheme-manager/config"
+	"github.com/Aerospace-prog/scheme-manager/models"
+
+	"github.com/gin-gonic/gin"
+)
+
+// =================== 1. Create Scheme ===================
+func PushScheme(c *gin.Context) {
+	var scheme models.Scheme
+
+	if err := c.ShouldBindJSON(&scheme); err != nil {
+		c.JSON(http.StatusBadRequest, gin.H{"error": "Invalid JSON", "details": err.Error()})
+		return
+	}
+
+	if scheme.Name == "" || scheme.Description == "" || scheme.Eligibility == "" {
+		c.JSON(http.StatusBadRequest, gin.H{"error": "Name, Description and Eligibility are required"})
+		return
+	}
+
+	if err := config.DB.Create(&scheme).Error; err != nil {
+		c.JSON(http.StatusInternalServerError, gin.H{"error": "Failed to create scheme"})
+		return
+	}
+
+	c.JSON(http.StatusCreated, gin.H{"message": "Scheme created", "scheme": scheme})
+}
+
+// =================== 2. Get All Applications ===================
+func GetApplications(c *gin.Context) {
+	status := c.Query("status")
+	var applications []models.Application
+	query := config.DB
+
+	if status != "" {
+		query = query.Where("status = ?", status)
+	}
+
+	if err := query.Find(&applications).Error; err != nil {
+		c.JSON(http.StatusInternalServerError, gin.H{"error": "Failed to retrieve applications"})
+		return
+	}
+
+	c.JSON(http.StatusOK, applications)
+}
+
+// =================== 3. Update Application Status ===================
+func UpdateApplicationStatus(c *gin.Context) {
+	id := c.Param("id")
+	var payload struct {
+		Status string `json:"status"`
+	}
+
+	if err := c.ShouldBindJSON(&payload); err != nil || payload.Status == "" {
+		c.JSON(http.StatusBadRequest, gin.H{"error": "Status field is required"})
+		return
+	}
+
+	validStatuses := map[string]bool{
+		"pending":  true,
+		"approved": true,
+		"rejected": true,
+	}
+
+	if !validStatuses[payload.Status] {
+		c.JSON(http.StatusBadRequest, gin.H{"error": "Invalid status value"})
+		return
+	}
+
+	var app models.Application
+	if err := config.DB.First(&app, id).Error; err != nil {
+		c.JSON(http.StatusNotFound, gin.H{"error": "Application not found"})
+		return
+	}
+
+	app.Status = payload.Status
+	if err := config.DB.Save(&app).Error; err != nil {
+		c.JSON(http.StatusInternalServerError, gin.H{"error": "Failed to update status"})
+		return
+	}
+
+	c.JSON(http.StatusOK, gin.H{"message": "Status updated", "application": app})
+}
+
+// =================== 4. Get Application Status By its ID===================
+
+func GetApplicationByID(c *gin.Context) {
+    id := c.Param("id")
+    var application models.Application
+
+    // Find application by ID
+    if err := config.DB.First(&application, id).Error; err != nil {
+        c.JSON(http.StatusNotFound, gin.H{"error": "Application not found"})
+        return
+    }
+
+    c.JSON(http.StatusOK, gin.H{
+        "application": application,
+    })
+}
\ No newline at end of file
diff --git a/scheme-manager/database/database.go b/scheme-manager/database/database.go
new file mode 100644
index 0000000..9eaecf8
--- /dev/null
+++ b/scheme-manager/database/database.go
@@ -0,0 +1,16 @@
+package database
+
+import (
+	"gorm.io/driver/sqlite"
+	"gorm.io/gorm"
+)
+
+var DB *gorm.DB
+
+func InitDatabase() {
+	var err error
+	DB, err = gorm.Open(sqlite.Open("test.db"), &gorm.Config{})
+	if err != nil {
+		panic("failed to connect database")
+	}
+}
\ No newline at end of file
diff --git a/scheme-manager/docker-compose.yml b/scheme-manager/docker-compose.yml
new file mode 100644
index 0000000..fd08e1d
--- /dev/null
+++ b/scheme-manager/docker-compose.yml
@@ -0,0 +1,31 @@
+version: "3.8"
+
+services:
+  postgres-db:
+    image: postgres:15
+    container_name: postgres-db
+    environment:
+      POSTGRES_USER: kushagrapandey
+      POSTGRES_PASSWORD: password
+      POSTGRES_DB: postgres
+    ports:
+      - "5432:5432"
+    healthcheck:
+      test: ["CMD-SHELL", "pg_isready -U kushagrapandey"]
+      interval: 5s
+      timeout: 5s
+      retries: 5
+
+  scheme-manager-app:
+    build: .
+    container_name: scheme-manager-app
+    depends_on:
+      postgres-db:
+        condition: service_healthy
+    ports:
+      - "8080:8080"
+    environment:
+      DB_USER: kushagrapandey
+      DB_PASSWORD: password
+      DB_NAME: postgres
+      DB_HOST: postgres-db
\ No newline at end of file
diff --git a/scheme-manager/go.mod b/scheme-manager/go.mod
new file mode 100644
index 0000000..2ae990b
--- /dev/null
+++ b/scheme-manager/go.mod
@@ -0,0 +1,50 @@
+module github.com/Aerospace-prog/scheme-manager
+
+go 1.24.2
+
+require (
+	github.com/gin-gonic/gin v1.10.0
+	github.com/joho/godotenv v1.5.1
+	gorm.io/driver/postgres v1.5.11
+	gorm.io/gorm v1.25.12
+)
+
+require (
+	github.com/bytedance/sonic v1.11.6 // indirect
+	github.com/bytedance/sonic/loader v0.1.1 // indirect
+	github.com/cloudwego/base64x v0.1.4 // indirect
+	github.com/cloudwego/iasm v0.2.0 // indirect
+	github.com/gabriel-vasile/mimetype v1.4.3 // indirect
+	github.com/gin-contrib/sse v0.1.0 // indirect
+	github.com/go-playground/locales v0.14.1 // indirect
+	github.com/go-playground/universal-translator v0.18.1 // indirect
+	github.com/go-playground/validator/v10 v10.20.0 // indirect
+	github.com/goccy/go-json v0.10.2 // indirect
+	github.com/jackc/pgpassfile v1.0.0 // indirect
+	github.com/jackc/pgservicefile v0.0.0-20240606120523-5a60cdf6a761 // indirect
+	github.com/jackc/pgx/v5 v5.7.4 // indirect
+	github.com/jackc/puddle/v2 v2.2.2 // indirect
+	github.com/jinzhu/inflection v1.0.0 // indirect
+	github.com/jinzhu/now v1.1.5 // indirect
+	github.com/json-iterator/go v1.1.12 // indirect
+	github.com/klauspost/cpuid/v2 v2.2.7 // indirect
+	github.com/kr/text v0.2.0 // indirect
+	github.com/leodido/go-urn v1.4.0 // indirect
+	github.com/mattn/go-isatty v0.0.20 // indirect
+	github.com/mattn/go-sqlite3 v1.14.22 // indirect
+	github.com/modern-go/concurrent v0.0.0-20180306012644-bacd9c7ef1dd // indirect
+	github.com/modern-go/reflect2 v1.0.2 // indirect
+	github.com/pelletier/go-toml/v2 v2.2.2 // indirect
+	github.com/rogpeppe/go-internal v1.14.1 // indirect
+	github.com/twitchyliquid64/golang-asm v0.15.1 // indirect
+	github.com/ugorji/go/codec v1.2.12 // indirect
+	golang.org/x/arch v0.8.0 // indirect
+	golang.org/x/crypto v0.36.0 // indirect
+	golang.org/x/net v0.25.0 // indirect
+	golang.org/x/sync v0.13.0 // indirect
+	golang.org/x/sys v0.31.0 // indirect
+	golang.org/x/text v0.24.0 // indirect
+	google.golang.org/protobuf v1.34.1 // indirect
+	gopkg.in/yaml.v3 v3.0.1 // indirect
+	gorm.io/driver/sqlite v1.5.7 // indirect
+)
diff --git a/scheme-manager/go.sum b/scheme-manager/go.sum
new file mode 100644
index 0000000..5156a3e
--- /dev/null
+++ b/scheme-manager/go.sum
@@ -0,0 +1,121 @@
+github.com/bytedance/sonic v1.11.6 h1:oUp34TzMlL+OY1OUWxHqsdkgC/Zfc85zGqw9siXjrc0=
+github.com/bytedance/sonic v1.11.6/go.mod h1:LysEHSvpvDySVdC2f87zGWf6CIKJcAvqab1ZaiQtds4=
+github.com/bytedance/sonic/loader v0.1.1 h1:c+e5Pt1k/cy5wMveRDyk2X4B9hF4g7an8N3zCYjJFNM=
+github.com/bytedance/sonic/loader v0.1.1/go.mod h1:ncP89zfokxS5LZrJxl5z0UJcsk4M4yY2JpfqGeCtNLU=
+github.com/cloudwego/base64x v0.1.4 h1:jwCgWpFanWmN8xoIUHa2rtzmkd5J2plF/dnLS6Xd/0Y=
+github.com/cloudwego/base64x v0.1.4/go.mod h1:0zlkT4Wn5C6NdauXdJRhSKRlJvmclQ1hhJgA0rcu/8w=
+github.com/cloudwego/iasm v0.2.0 h1:1KNIy1I1H9hNNFEEH3DVnI4UujN+1zjpuk6gwHLTssg=
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diff --git a/scheme-manager/main.go b/scheme-manager/main.go
new file mode 100644
index 0000000..fbc1187
--- /dev/null
+++ b/scheme-manager/main.go
@@ -0,0 +1,41 @@
+package main
+
+import (
+	"fmt"
+	"log"
+	"net/http"
+
+	"github.com/Aerospace-prog/scheme-manager/config"
+	"github.com/Aerospace-prog/scheme-manager/models"
+	"github.com/Aerospace-prog/scheme-manager/routes"
+
+	"github.com/gin-gonic/gin"
+)
+
+func main() {
+	r := gin.Default()
+
+	// Connect DB
+	config.ConnectDatabase()
+
+	// Migrate
+	err := config.DB.AutoMigrate(&models.Scheme{}, &models.Application{})
+	if err != nil {
+		log.Fatal("❌ Failed DB migration:", err)
+	}
+	fmt.Println("✅ Database migrated!")
+
+	// Register all routes
+	routes.RegisterRoutes(r)
+
+	// Default route
+	r.GET("/", func(c *gin.Context) {
+		c.JSON(http.StatusOK, gin.H{"message": "Scheme Manager API is running!"})
+	})
+
+	port := "8080"
+	fmt.Println("Server is running on port", port)
+	if err := r.Run(":" + port); err != nil {
+		log.Fatal("Failed to start server:", err)
+	}
+}
\ No newline at end of file
diff --git a/scheme-manager/models/application.go b/scheme-manager/models/application.go
new file mode 100644
index 0000000..093c7bd
--- /dev/null
+++ b/scheme-manager/models/application.go
@@ -0,0 +1,21 @@
+package models
+
+import (
+	"time"
+	"gorm.io/gorm"
+)
+
+type Application struct {
+	ID          uint           `gorm:"primaryKey" json:"id"`
+	SchemeID    uint           `json:"scheme_id"`
+	UserID      string         `json:"user_id"`      // unique user identifier
+	UserName    string         `json:"user_name"`    // optional
+	Credentials string         `json:"credentials"`  // credentials to validate eligibility (JSON format)
+
+	Status      string         `json:"status"`       // e.g., "pending", "approved", "rejected"
+	Remarks     string         `json:"remarks"`      // optional
+
+	CreatedAt   time.Time      `json:"created_at"`
+	UpdatedAt   time.Time      `json:"updated_at"`
+	DeletedAt   gorm.DeletedAt `gorm:"index" json:"-"`
+}
\ No newline at end of file
diff --git a/scheme-manager/models/scheme.go b/scheme-manager/models/scheme.go
new file mode 100644
index 0000000..d567651
--- /dev/null
+++ b/scheme-manager/models/scheme.go
@@ -0,0 +1,18 @@
+package models
+
+import (
+	"time"
+	"gorm.io/gorm"
+)
+
+type Scheme struct {
+	ID            uint           `gorm:"primaryKey" json:"id"`
+	Name          string         `json:"name"`
+	Description   string         `json:"description"`
+	Eligibility   string         `json:"eligibility"` // JSON or string rule, e.g., "age > 18"
+	StartDate     time.Time      `json:"start_date"`
+	EndDate       time.Time      `json:"end_date"`
+	CreatedAt     time.Time      `json:"created_at"`
+	UpdatedAt     time.Time      `json:"updated_at"`
+	DeletedAt     gorm.DeletedAt `gorm:"index" json:"-"`
+}
\ No newline at end of file
diff --git a/scheme-manager/routes/routes.go b/scheme-manager/routes/routes.go
new file mode 100644
index 0000000..5dc1e88
--- /dev/null
+++ b/scheme-manager/routes/routes.go
@@ -0,0 +1,16 @@
+package routes
+
+import (
+	"github.com/Aerospace-prog/scheme-manager/controllers"
+	"github.com/gin-gonic/gin"
+)
+
+func RegisterRoutes(router *gin.Engine) {
+	api := router.Group("/api")
+
+	api.POST("/schemes", controllers.PushScheme)
+	api.POST("/applications", controllers.CreateApplication) 
+	api.GET("/applications", controllers.GetApplications)
+	api.GET("/applications/:id", controllers.GetApplicationByID)
+	api.PUT("/applications/:id/status", controllers.UpdateApplicationStatus)
+}
\ No newline at end of file