Odisha Mukhyamantri Krushi Udyog Yojana (MKUY)

Scheme Introduction: A Brief Overview

The Mukhyamantri Krushi Udyog Yojana (MKUY) is a flagship agri-business scheme of the Government of Odisha, run by the Department of Agriculture and Farmers' Empowerment. The State Government launched the scheme on 1 June 2018 to make agri-business easier for farmers and agri-entrepreneurs. Under MKUY, the government gives a Capital Investment Subsidy (CIS) to entrepreneurs who set up Commercial Agri-Enterprises (CAE) in agriculture, horticulture, animal husbandry, fisheries, food processing and other allied sectors. The Agricultural Promotion and Investment Corporation of Odisha Limited (APICOL) works as the nodal agency for the scheme.

The government started MKUY because agriculture and allied sectors offer huge scope for rural employment and higher farm income. The objective of the scheme is to promote commercial agri-enterprises that create income opportunities, open up new employment avenues, and raise the earnings of agri-entrepreneurs across Odisha. To achieve this, the scheme simplifies the process of setting up an agri-unit and keeps it transparent, online, and time-bound at every stage.

The subsidy amount depends on the applicant's category. General male entrepreneurs get 40% of the fixed capital investment, while women, SC/ST applicants, transgender persons, persons with disabilities, and graduates in agriculture and allied disciplines get 50%. In both cases, the subsidy can go up to a maximum of ₹1 crore per entrepreneur or family. The government calculates the subsidy on eligible fixed capital investment only and keeps the cost of land outside the calculation. The total project cost must be less than ₹50 crore. Eligible entrepreneurs can finance their projects through a bank loan or their own funds, subject to the scheme's applicable conditions.

The Mukhyamantri Krushi Udyog Yojana works on a project-approval model. The entrepreneur applies online on the GO-SUGAM portal with a Detailed Project Report (DPR) and geo-tagged site photographs. Block and district officers check the feasibility of the proposal, and the District Level Committee (DLC), chaired by the Collector, approves it. The entrepreneur then receives a Go-Ahead Letter within a maximum of 52 days of a complete application and must finish the project within two years. After joint verification of the completed unit, APICOL releases the subsidy to the entrepreneur's Aadhaar-linked bank account or adjusts it against the bank loan. Remember, projects set up without prior DLC approval will not get any subsidy.

The Government of Odisha also runs farmer welfare schemes alongside the Odisha Mukhyamantri Krushi Udyog Yojana, such as Odisha CM-KISAN Yojana, which provides financial assistance to eligible farmers and landless agricultural households, and Odisha Samrudh Krushak Yojana, which aims to improve farmers' income by offering better prices for paddy. You can read more about these schemes here:

Scheme Benefits

Under the Mukhyamantri Krushi Udyog Yojana (MKUY), eligible entrepreneurs can access the following benefits to reduce initial investment costs, establish commercial agri-enterprises, and strengthen their business ventures in Odisha.

Subsidy Rates Under MKUY

The guidelines fix the subsidy rate on the basis of the applicant's category, as shown below.

Key Benefits of the Scheme

Apart from the basic subsidy, the scheme offers several other advantages to entrepreneurs:

• New enterprises: Subsidy for setting up new agri-enterprises in agriculture, horticulture, animal husbandry, fisheries and food processing.
• Expansion and modernisation: Subsidy for expanding or upgrading an existing unit after one year of its successful completion and operation.
• Multiple units: An entrepreneur can set up more than one enterprise across different sectors, within the overall ₹1 crore limit.
• Fresh limit after 10 years: A family becomes eligible for a fresh subsidy limit after 10 years, subject to successful running of earlier projects.
• Dairy top-up: An additional 15% top-up subsidy on eligible animal cost for MKUY commercial dairy units that buy cattle from outside Odisha, released at the time of final subsidy disbursement.
• Front-ended subsidy for bank loans: APICOL releases up to 80% of the estimated subsidy in advance to a zero-interest mirror account with the lending bank.
• Interest relief: The entrepreneur pays no interest on the loan portion equal to the subsidy amount from the date it reaches the mirror or loan account.
• Direct payment: Self-financed entrepreneurs get the subsidy directly in their Aadhaar-linked bank account.

What Costs Are Covered Under the Subsidy?

The subsidy applies only to eligible fixed capital investment. The guidelines include and exclude the following costs:

• Covered: New project buildings (office, store room, pack house, grading house, labour shed, pump house, sheds, protected structures, barbed wire/solar fence), plant and machinery, electrical installations, transformer, generator, water sources, pumps, micro irrigation, and the cost of plants, trees, birds and animals.
• Covered: One year's insurance premium on capital assets and the admissible DPR preparation cost.
• Not covered: Cost of land, working or recurring capital, dwelling houses, residential quarters, guard rooms, masonry compound walls and internal roads.
• Not covered: Civil construction on rented premises and the cost of existing civil infrastructure.

Eligibility Requirements

An applicant must meet the following conditions to qualify for the Capital Investment Subsidy under the Mukhyamantri Krushi Udyog Scheme.

Who Can Apply?

The scheme is open to individuals, groups, and eligible organisations, including:

• Individuals and partnership enterprises.
• Groups of individuals, registered Farmer Producer Organisations (FPOs), Farmer Producer Companies (FPCs), and Farmer Producer Groups (FPGs).
• NGOs registered as societies (excluding charitable trusts) and Self-Help Groups (SHGs).
• Gram Panchayat Level Federations (GPLFs), Block Level Federations (BLFs), and District Level Federations (DLFs).
• Primary Agricultural Credit Societies (PACS), Large Area Multipurpose Societies (LAMPS), and Farmers' Cooperative Societies.
• Apex federations such as OMFED, OPOLFED, and FISHFED.
• Companies registered under the Companies Act, 2013

Basic Conditions of MKUY

Every applicant must also satisfy these core requirements:

• Age: At least 18 years on the date of online application.
• Aadhaar: A valid Aadhaar at the time of application.
• Residence:  Non-residents of Odisha can also apply, but the enterprise must be set up in Odisha.
• Land:  Valid Record of Rights (RoR) of the project land in the applicant's name, or a registered lease deed of at least 15 years from the date of application.
• Spouse's land: If the land stands in the spouse's name, the applicant needs the spouse's NOC (Annexure-V) instead of a lease.
• Rented premises: A registered rent agreement of at least 9 years. No subsidy applies to civil construction on such premises.
• Joint ownership: An affidavit NOC from co-sharers before an Executive Magistrate, with the project land within the applicant's share.
• Project cost: Total project cost must be less than ₹50 crore.
• Income potential: The enterprise must generate an average net income of ₹2 lakh per annum (₹1 lakh for Women SHGs).
• Prior approval: The project must receive DLC approval before work starts.
• Bank finance: For bank-financed projects, the loan must cover at least 10% of the project cost.
• Group applicants: Two office bearers authorised by the executive body apply on behalf of the group.
• Joint ownership: An affidavit NOC from co-sharers before an Executive Magistrate, with the project land within the applicant's share.

Special Qualification Requirements

Some enterprises need the entrepreneur to hold a specific qualification:

• Agri-Clinic: Bachelor's degree in agriculture and allied sectors, Bachelor of Science, or Diploma in Agriculture/Horticulture.
• Veterinary Clinic: B.V.Sc. degree with registration under the Indian Veterinary Council (IVC) or Odisha Veterinary Council (OVC).

Required Documents

The following documents are required to apply for the Odisha Mukhyamantri Krushi Udyog Yojana (MKUY), depending on the applicant's category and project requirements.

• Aadhaar number of the applicant (verified online).
• Passport-size photograph
• Land record (RoR) of the project site
• Registered lease deed (minimum 15 years) or registered rent agreement (minimum 9 years), wherever applicable
• Spouse's NOC (Annexure-V) or co-sharers' affidavit NOC, wherever applicable
• Photo ID card
• Proof of date of birth, if required
• Detailed Project Report (DPR) with the financial abstract (Annexure-II)
• Self-declaration of family members (Annexure-IV), wherever applicable
• Five geo-tagged photographs of the proposed site (four from the corners and one with the entrepreneur at the centre)
• Caste, disability or agriculture graduation certificate, for the 50% subsidy category
• Letter of incorporation or partnership deed, for firms and companies
• Tahasildar's certificate, for applicants from unsurveyed villages

Steps to Apply

Entrepreneurs can apply for MKUY online through the Government of Odisha’s GO-SUGAM portal or through the GO-SUGAM mobile app by following the application process outlined below.

Step 1: Register and Fill the Online Form

Create your account on the portal and complete the MKUY application:

• First, visit Odisha's GO-SUGAM portal and select APICOL.
• Search for Mukhyamantri Krushi Udyog Yojana MKUY, and click "Apply".
• Click on "Register Now", enter your name (as on Aadhaar), mobile number, email, address, and password, and register.
• Log in with your mobile number and password (or Aadhaar), select MKUY, and verify your Aadhaar number.
• Fill in your personal details, address, and project information.
• Upload the land record, lease/rent document, photo ID, DPR, family declaration, and five site photographs.
• Preview the form, accept the declaration, and pay the non-refundable fee: ₹2,000 for general applicants and ₹500 for preferential categories (SC/ST, women, transgender persons, WSHGs, SHG federations, PwD, and agriculture graduates).
• Save the acknowledgement or application receipt for future reference.

Step 2: Verification and Go-Ahead Letter

After submission, the proposal undergoes feasibility checks and review by the concerned officials.

• The Block Level Officer (BLO) verifies the application, inspects the site, and submits a feasibility report within 7 days.
• The District Nodal Officer (DNO) reviews the proposal and recommends or rejects it within 8 days.
• The District Level Committee (DLC), which meets on the 10th of every month, approves the project.
• You download the Go-Ahead Letter from the portal within a maximum of 52 days of a complete application.

Step 3: Complete the Project

Start work only after receiving the Go-Ahead Letter and finish it on time:

• Complete the project within 2 years of the Go-Ahead Letter.
• Upload geo-tagged photographs at three stages of work and after completion.
• Install a permanent MKUY display board at the project site.
• Late completion cuts the subsidy by 20% (up to 6 months) or 50% (6 months to 1 year); delay beyond 1 year means no subsidy.

Step 4: Claim the Subsidy

After completing the project, the beneficiary must submit the prescribed completion and subsidy-claim documents.

• Submit the completion report (Annexure-IX) with bills, vouchers, and geo-tagged photos of all assets.
• The BLO and a joint team led by the DNO verify and value the project.
• APICOL gets the bills verified by CT & GST and finalises the eligible subsidy.
• You sign an agreement with the DNO on ₹100 stamp paper, and APICOL releases the subsidy.

MKUY Subsidy Release and DBT Details

MKUY is a one-time capital subsidy scheme, and the payment method depends on how the entrepreneur finances the project.

• Self-financed projects: After the competent authority approves, APICOL releases the subsidy directly to the entrepreneur's Aadhaar-linked bank account.
• Bank-financed projects: The bank opens a mirror account in the entrepreneur's name and requests a front-ended subsidy through the DNO.
• Front-ended amount: APICOL releases the lowest of 80% of the estimated subsidy, the loan amount, or the maximum eligible subsidy, within 15 days of the request.
• Zero interest: The advance subsidy stays in the mirror account at 0% interest, and the bank calculates the EMI without counting it.
• Final adjustment: After completion, APICOL calculates the final subsidy, releases the balance, and the bank adjusts the total subsidy against the loan and recalculates the EMI.
• Refund: If the entrepreneur fails to complete the project or the final subsidy is lower than the advance, the bank refunds the excess to APICOL within 15 days.

Important Conditions After Receiving the Subsidy

After the subsidy is released, the entrepreneur must follow certain conditions under the MKUY agreement and guidelines.

• Do not change the location of the unit or make substantial changes to the project for 10 years from completion without prior approval.
• Keep the enterprise running for at least 10 years and submit yearly progress reports as asked.
• If you get the subsidy through false information, close the unit or change its site early, the government recovers the subsidy as arrears of land revenue, with interest at 12.5% per annum under the agreement.
• If an applicant dies before project completion, the legal heir can continue the project after DLC approval by submitting the legal heir certificate, death certificate, and NOC from other legal heirs.

Relevant Links

• Odisha Mukhyamantri Krushi Udyog Yojana Registration
• Odisha Mukhyamantri Krushi Udyog Yojana Login
• Odisha GO SUGAM Portal
• Odisha GO-SUGAM mobile app
• Department of Agriculture and Farmers' Empowerment Portal
• Guidelines of Odisha Mukhyamantri Krushi Udyog Yojana

Contact Information

• Department of Agriculture and Farmers' Empowerment Helpline Number: 0674-2914411
• Department of Agriculture and Farmers' Empowerment Helpdesk Email: [email protected]
• Sugam Helpdesk Email: [email protected]