Uttar Pradesh govt. will provide incentives to SC / ST, Minority and Poor Entrepreneurs under One District One Product Scheme. Under ODOP Scheme, govt. will promote Micro, Small and Medium Enterprises (MSME) by fostering the traditional industries. The state govt. would provide subsidy / margin money on project cost to new enterprises which are being setup by weaker sections of society.
UP govt. has potential to become trillion dollar economy as it is abundant in socio-economic resources of manpower, handicraft and traditional industries. This decision is taken in the cabinet meeting on 11 September 2018 after first ODOP Summit here on 10 August 2018.
This scheme will provide jobs and self opportunities to 2.5 million youths over next 5 years with ODOP.
UP ODOP Scheme – Incentives to SC / ST / Minority / Poor Entrepreneurs
Under One District One Product Scheme, the state govt. will provide subsidy on project cost to new enterprises being setup. Subsidy under ODOP Scheme would be given to MSMEs as follows:-
- Projects costing upto Rs. 2.5 million will attract 25% subsidy or Rs. 6,25,000 (whichever is lower) from the state government.
- If Project cost lies between Rs. 2.5 million and Rs. 5 million, then subsidy of 20% or Rs. 6,25,000 (whichever is highest) would be provided.
- Firstly, the state govt. will provide this subsidy as margin money from commercial banks. This amount will later get converted to grant on successfully running of enterprise for 2 years.
- Projects costing b/w Rs. 5 million and Rs. 1.5 billion, then margin money of upto 15% or 1 million (whichever is higher) will be given.
- In case the projects costs more than 1.5 billion, govt. would provide margin money / grant of 10% or Rs. 2 million (whichever is lower).
- Entrepreneurs who belongs to general category are required to make contribution of 10% of total project cost through their own resources. However, this mandate is now relaxed to 5% for SC / ST / OBC / Minorities / Women and Physically Challenged People.
— Yogi Government Updates (@yogigovtupdates) September 11, 2018
A new task force would be constituted who is assigned the responsibility to select the beneficiaries at district level. This would comprise of representatives from local administration, bankers, industries department etc.
UP govt. has exchanged Memorandum of Understanding (MoU) with Amazon, Wipro GE Healthcare, Quality Control of India (QCI), National Stock Exchange and Bombay Stock Exchange (BSE) to boost MSME sector. This would be done through skill training, capital, marketing support and institutional aids. More than 10 billion loans were also distributed to 4,095 entrepreneurs.
The state govt. wants to replicate the success of Japan and Thailand to promote traditional industries for socio-economic growth through ODOP. This will boost the traditional crafts in around 75 districts of Uttar Pradesh. This aims to promote Brand UP globally.