Odisha Mukhyamantri Krushi Udyog Yojana (MKUY)

The Mukhyamantri Krushi Udyog Yojana (MKUY) provides a Capital Investment Subsidy of 40% to 50%, up to Rs. 1 crore, to eligible entrepreneurs setting up commercial agri-enterprises in Odisha. The Department of Agriculture and Farmers’ Empowerment, Odisha, implements the scheme through APICOL. Eligible applicants can apply online through the GO-SUGAM portal.

Introduction of Odisha Mukhyamantri Krushi Udyog Yojana: A Brief Insight

Many farmers and young people in Odisha want to move beyond traditional farming and start businesses such as dairy farms, mushroom units or food processing plants. However, the high initial investment often becomes a major hurdle. The Mukhyamantri Krushi Udyog Yojana (MKUY) helps eligible entrepreneurs overcome this challenge by providing financial assistance towards the cost of setting up an agri-enterprise.

The Government of Odisha launched the scheme on 1 June 2018 under the State Agriculture Policy and revised its guidelines on 12 March 2024. The Department of Agriculture and Farmers’ Empowerment, Government of Odisha, implements the scheme through its nodal agency, APICOL.

The scheme aims to promote commercial enterprises in agriculture and allied sectors, create employment opportunities and help entrepreneurs generate a sustainable income. It also provides an online application process with defined timelines for processing applications.

Under MKUY, general male entrepreneurs can receive a 40% Capital Investment Subsidy, while eligible applicants from special categories, including SC, ST, women, transgender persons, persons with disabilities and agriculture graduates, can receive a 50% subsidy. The maximum subsidy is Rs. 1 crore.

For eligible bank-financed projects, the scheme also provides an advance subsidy of up to 80% of the estimated subsidy through a Mirror Account. This arrangement helps reduce the interest burden on the corresponding portion of the loan. The scheme covers more than 100 types of agri-enterprises across different sectors.

Individuals aged 18 years or above, Farmer Producer Organisations (FPOs), Self-Help Groups (SHGs), cooperatives and eligible companies can apply. Applicants from outside Odisha can also establish an enterprise in the State. The project must meet the applicable land or premises requirements, and its total cost must be below Rs. 50 crore.

Applicants must submit their applications online through the GO-SUGAM portal by selecting APICOL and MKUY. The process includes document checks, site verification and approval by the District Level Committee before the applicant receives the Go-Ahead letter. For assistance, applicants can contact their district’s APICOL manager or the relevant Block Level Officer.

Farmers can also receive annual income support through the PM Kisan Samman Nidhi Scheme and protect their crops under the PM Fasal Bima Yojana. Women Self-Help Groups can explore income opportunities through drone services under the NAMO Drone Didi Yojana, while students interested in agricultural education can learn about the Krishi Vidya Nidhi Scheme.

Entrepreneurs planning large, automated egg farms can also explore Odisha’s Commercial Layer Farming Scheme, which offers assistance of up to Rs. 10 crore for eligible fully automated layer and pullet farms with more than 25,000 birds.

Farmers, agri-entrepreneurs and others looking for additional agriculture and business support programmes can explore the available schemes on our List of Welfare Schemes of the Odisha Government page.

Benefits Provided to Eligible Beneficiaries

The Mukhyamantri Krushi Udyog Yojana (MKUY) provides a one-time Capital Investment Subsidy (CIS) to eligible entrepreneurs who establish commercial agri-enterprises in Odisha. For bank-financed projects, the scheme also offers an advance subsidy mechanism that can reduce the interest burden on the portion of the loan covered by the subsidy.

Capital Investment Subsidy

Example: A woman entrepreneur investing Rs. 60 lakh in the fixed assets of a mushroom unit may receive a subsidy of Rs. 30 lakh. A general-category male entrepreneur investing the same amount may receive Rs. 24 lakh, subject to the scheme’s conditions and final assessment.

Advance Subsidy Through Mirror Account

• For bank-financed projects, up to 80% of the estimated subsidy is released in advance into a Mirror Account maintained with the financing bank
• APICOL releases the advance amount within 15 days of receiving the bank’s request
• The loan portion equivalent to the subsidy amount does not attract interest, helping reduce the borrower’s interest burden and EMI
• The remaining subsidy is released after the project is completed and the required verification is finished

What Costs Are Covered

• New civil construction undertaken after receiving the Go-Ahead, including sheds, storerooms, pack houses, pump houses and fencing
• Electrical installations, transformers, generators and water facilities such as borewells and pumps
• Plant, machinery, tools and equipment, including eligible transportation and installation charges
• Livestock, birds, fish seed and perennial plantation costs for the year of planting
• One year’s insurance premium for capital assets
• Project report preparation costs, subject to the prescribed limit

What Is Not Covered

• Land purchase costs
• Working capital and recurring operating expenses
• Dwelling houses, residential quarters and guard rooms
• Masonry boundary walls and internal roads

Wide Choice of Enterprises

The scheme covers more than 100 types of agri-enterprises across different sectors. The State Government may also add new activities with the required State-level approval.

For Agro Service Centres, the subsidy on tractors is limited to Rs. 1.20 lakh for tractors up to 40 HP and Rs. 1.50 lakh for tractors above 40 HP.

Eligibility Conditions Required to be Fulfilled

The Mukhyamantri Krushi Udyog Yojana (MKUY) supports individuals and organisations planning to establish commercial agri-enterprises in Odisha. Applicants must meet the conditions specified in the official guidelines to qualify for assistance under the scheme.

Who Can Apply

• Any individual, partnership firm or group of individuals
• Registered Farmer Producer Organisations (FPOs), Farmer Producer Companies (FPCs) and Farmer Producer Groups (FPGs)
• NGOs registered as societies; charitable trusts are not covered
• Self-Help Groups (SHGs) and their federations at Gram Panchayat, Block and District levels
• PACS, LAMPS and farmers’ cooperative societies
• Apex federations such as OMFED, OPOLFED and FISHFED
• Companies registered under the Companies Act, 2013
• Applicants who are not residents of Odisha, provided they establish their agri-enterprise in the State

Basic Conditions

• The applicant must be at least 18 years old on the date of online application
• A valid Aadhaar Card is mandatory
• The project site must be located in Odisha. Applicants can use their own land, land leased for at least 15 years, or land owned by their spouse with the required consent
• The total project cost must be less than Rs. 50 crore
• The enterprise must generate an average annual net income of at least Rs. 2 lakh, or Rs. 1 lakh for women SHGs
• For group applications, two office bearers authorised by the group’s executive body must submit the application on its behalf

Special Qualification for Certain Projects

• Agri-Clinic: A bachelor’s degree in agriculture or an allied subject, B.Sc., or a Diploma in Agriculture or Horticulture
• Veterinary Clinic: A B.V.Sc. degree and registration with the Indian or Odisha Veterinary Council

Projects Not Eligible

• Raw tobacco-cutting units and Gudakhu manufacturing units
• Field crops with a cultivation duration of less than two years
• Integrated rice mills
• Open-field crops with an economic life of less than five years, including banana, papaya and pineapple
• Projects started before receiving the Go-Ahead from the District Level Committee

Rules on Repeat Benefit

• The maximum Rs. 1 crore subsidy limit applies to the entire family, not separately to each family member
• Applicants can establish a new project or expand an existing unit one year after successfully completing the earlier project
• Applicants can establish more than one enterprise in different sectors, subject to the overall Rs. 1 crore subsidy limit
• A fresh subsidy limit of Rs. 1 crore becomes available after 10 years of using the full limit, provided the earlier units remain operational

Documents Required to be Attached

The application process under the Mukhyamantri Krushi Udyog Yojana (MKUY) involves two stages. Applicants must first submit the required documents online to obtain the Go-Ahead letter. After establishing the agri-enterprise, they must provide additional records to claim the Capital Investment Subsidy. The following checklist covers the documents required at each stage.

At the Time of Online Application

• Aadhaar Card of the applicant
• Proof of date of birth, if Aadhaar does not mention it
• Recent passport-size photograph and signature
• Farmer ID and mobile number for portal registration
• Five geo-tagged photographs of the project site: one from each of the four corners and one showing the applicant standing at the centre
• Detailed Project Report (DPR) with the financial abstract
• Family declaration form listing all family members and details of any subsidy received earlier
• Certificate supporting preferential-category claims, such as a caste certificate, disability certificate or degree in agriculture or an allied discipline
• Letter of incorporation, partnership deed or registration deed, if applying through a company, firm or group

Land or Premises Documents

At the Time of Claiming Subsidy

• Bank sanction letter and loan account statement for bank-financed projects
• Layout plan and work-done estimate for civil construction, prepared by an Assistant Engineer or the bank’s approved valuer
• Bills and vouchers bearing GSTIN for electrification, water supply, equipment and machinery
• Purchase receipts for livestock, birds, fingerlings or planting material, duly certified
• Insurance policy covering capital assets and livestock
• Geo-tagged photographs of the completed unit, including the MKUY display board
• Declaration on non-judicial stamp paper confirming that the applicant has not received a subsidy from any other source for the same project
• Pollution certificate as required under Odisha State Pollution Control Board norms, where applicable
• Udyam registration, FSSAI licence and DIC certificate for processing units

How Beneficiaries Can Apply to Avail the Benefit of this Scheme

The Mukhyamantri Krushi Udyog Yojana application process is online, from submitting the application to receiving the subsidy. Applicants must use the GO-SUGAM portal, obtain a Go-Ahead letter from the district authorities, establish their agri-enterprise and then apply for the subsidy. The process has four main stages, explained below in simple steps.

Stage 1: Online Application Process

Step 1: Visit the MKUY prerequisites page and check the requirements before applying. Keep scanned copies of your photograph, identity proof, signature and land records ready.

Step 2: Open the GO-SUGAM portal. Select APICOL and then choose Mukhyamantri Krushi Udyoga Yojana (MKUY).

Step 3: Register on the portal using your Farmer ID, Aadhaar number and mobile number.

Step 4: Fill in the application form with the required personal and project details. Enter the DPR information carefully, including the cost of each item you plan to purchase or construct for your project.

Step 5: Upload five geo-tagged photographs of the project site through the mobile app. Also upload your land documents, family declaration and other required papers.

Step 6: Pay the non-refundable application fee of Rs. 2,000. Applicants belonging to a special category pay Rs. 500. Complete the payment through the online payment gateway.

Stage 2: Verification and Go-Ahead

Step 1: The Block Level Officer (BLO) checks your application and documents. If any information or document is missing, the officer sends the application back to you for correction.

Step 2: The BLO visits the proposed project site with you. The officer checks the land records and verifies whether the site has essential facilities such as electricity, water and road access. The BLO then uploads a feasibility report within seven days. For bank-financed projects, the bank manager also joins the site visit.

Step 3: The District Nodal Officer examines the application and recommends or rejects it within eight days.

Step 4: If the District Nodal Officer recommends your application, it goes to the District Level Committee, chaired by the Collector. According to the stated process, the committee meets on the 10th of every month to consider applications.

Step 5: If the committee approves your project, download the Go-Ahead letter from the portal. The stated maximum period for issuing this letter is 52 days from the submission of a complete application.

Stage 3: Setting Up the Project

Step 1: Start construction or other project work only after receiving the Go-Ahead letter. If you begin work before approval, you may lose eligibility for the subsidy.

Step 2: Build your unit and purchase the required equipment according to the approved Detailed Project Report (DPR). Do not make major changes to the approved plan without checking the applicable rules.

Step 3: Upload geo-tagged photographs at three different stages of project development. These photographs help the authorities track the progress of your work.

Step 4: Make payments of Rs. 50,000 or more through online bank transfers or cheques. Keep the bills and other payment records safe, including bills bearing GSTIN wherever applicable.

Step 5: Install a permanent display board at the project site. It should show the scheme name, your name and the project cost.

Step 6: Complete the project within two years of receiving the Go-Ahead letter. Keep records of construction, equipment purchases and other project expenses for verification.

Stage 4: Claiming the Subsidy

Step 1: After completing the project, submit the completion report through the portal. Attach the required bills, work-done estimates and photographs of the completed unit.

Step 2: The BLO inspects the completed unit within seven days to check whether you have established it according to the approved project plan.

Step 3: A team of district officers carries out a joint physical verification and assesses your investment. The team checks the completed work and supporting records before recommending the eligible investment amount.

Step 4: The District Nodal Officer forwards the subsidy proposal to APICOL. You must then sign the required agreement on stamp paper.

Step 5: APICOL releases the approved subsidy according to the applicable procedure. The amount may be credited to your Aadhaar-linked bank account or adjusted against your loan account, depending on the financing arrangement and scheme rules.

Delay Penalty to Keep in Mind

Completing your project within the prescribed period is important. The following table shows the subsidy deductions stated for delays beyond the two-year completion period.

Important: If the bank delays the loan sanction, the completion period may be extended by up to one year, subject to the applicable rules and approval. Before starting your project, read the complete MKUY guidelines. Also, keep the unit operational for at least 10 years to avoid the risk of subsidy recovery under the stated conditions.

Bank Finance vs Self Finance Under MKUY

Applicants can set up an agri-enterprise under MKUY using a bank loan or their own funds. The financing method affects how they receive the subsidy, whether they can get an advance subsidy and how the project investment is valued.

Important: Applicants cannot switch between bank finance and self-finance freely after receiving the Go-Ahead letter. Such a change requires approval from the District Level Committee.

Conditions to Follow After Receiving the Subsidy

• Keep the agri-enterprise operational for at least 10 years from the date of project completion
• Do not shift the unit or make major changes without obtaining the required official approval during this period
• Do not keep the enterprise closed for more than 6 months at a time
• Submit annual progress reports to APICOL whenever required

Important: If a beneficiary violates these conditions or provides incorrect information to obtain the subsidy, the authorities may recover the subsidy amount with interest at 12.5% per year. The amount may be recovered as arrears of land revenue, as provided under the scheme rules.

Important Links Available of the Scheme

• Apply online for MKUY through GO-SUGAM portal
• Mukhyamantri Krushi Udyog Yojana portal, APICOL
• MKUY official guidelines (PDF)
• MKUY amendment resolution dated 17 March 2025 (PDF)
• MKUY scheme page, Department of Agriculture and Farmers’ Empowerment
• Agricultural Promotion and Investment Corporation of Odisha Limited (APICOL)

Contact Details in Case of Help Needed

• Nodal Agency: Agricultural Promotion and Investment Corporation of Odisha Limited (APICOL), 326 Baramunda, Bhubaneswar, Odisha
• Department: Department of Agriculture and Farmers’ Empowerment, Government of Odisha
• District Level: District Manager, APICOL, or the District Nodal Officer of your sector, such as the CDAO, CDVO, Deputy Director Horticulture or District Fisheries Officer
• Block Level: Block Agriculture Officer, Block Veterinary Officer, Assistant Horticulture Officer or Assistant Fisheries Officer of your block

Tabassum

Tabassum is a government schemes researcher and writer with 5 years of experience tracking Central and State welfare scheme programmes across India. She has covered 500+ schemes spanning agriculture, women welfare, education, and housing, helping lakhs of beneficiaries understand their entitlements in simple language.