Uttar Pradesh launches ODOP 2.0 to boost MSMEs and local products with grants up to Rs 50 lakh, technology upgrades, and simplified cluster development, aiming to make UP a global export hub.

The Uttar Pradesh government is set to launch One District One Product (ODOP) 2.0, a new phase of the flagship initiative designed to position the state as a global export powerhouse. The revamped scheme aims to provide enhanced financial and technical support to Micro, Small, and Medium Enterprises (MSMEs) while promoting local entrepreneurship.

Following the success of the original ODOP program, the state’s MSME department is formulating ODOP 2.0 to make existing initiatives more result-driven and accessible. Chief Minister Yogi Adityanath described ODOP as more than just a government scheme, calling it a “powerful medium for sustainable employment and local entrepreneurship.”

Key Highlights of ODOP 2.0

1. Increased Financial Assistance: Under ODOP 2.0, MSMEs can now avail grants of up to Rs 50 lakh, a significant rise from the previous Rs 20 lakh limit, similar to the Pradhan Mantri Employment Generation Programme (PMEGP).

2. Additional Loan Support: Successful enterprises will become eligible for add-on loans to modernize technology and improve packaging. To qualify for a second loan, businesses must have repaid at least 50% of the first loan on schedule.

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3. Support for Technological Upgrades: ODOP 2.0 will provide financial aid covering up to 75% of the project cost, capped at Rs 3.75 crore, for projects worth up to Rs 5 crore. This initiative helps MSMEs access modern machinery, advanced technology, and improved packaging solutions.

4. Simplified Cluster Development: The Common Facility Centre (CFC) scheme has been simplified, reducing the minimum required members from 20 to 10, enabling smaller clusters to benefit. The government may fund up to 90% of its share for these facilities.

Achievements of ODOP Since 2018

According to K Vijyendra Pandian, Commissioner and Director of Industries, ODOP has significantly transformed Uttar Pradesh’s economic landscape:

• Exports Surge: State exports increased from Rs 88,000 crore in 2017 to Rs 1.86 lakh crore in 2024.

• ODOP Contribution: ODOP products alone contributed around Rs 93,000 crore, making up 50% of total export growth.

• Entrepreneur Support: Over 1.25 lakh toolkits distributed and loans worth more than Rs 6,000 crore sanctioned.

• Recognition: 44 products have received Geographical Indication (GI) tags, and the state has won the national ODOP award twice.

With ODOP 2.0, the Uttar Pradesh government aims to empower small and medium enterprises financially and provide global market access, reinforcing the program as the backbone of the state’s exports.