Mukhyamantri Krushi Udyog Yojana (MKUY)

What is Mukhyamantri Krushi Udyog Yojana?

Mukhyamantri Krushi Udyog Yojana (MKUY) is the flagship capital investment subsidy scheme of the Department of Agriculture and Farmers' Empowerment, Government of Odisha. MKUY was launched with effect from 1 June 2018 to implement the Commercial Agri Enterprises (CAE) component of the State Agriculture Policy, and the current rulebook is the MKUY-2024 guidelines notified on 12 March 2024 through Odisha Gazette Extraordinary No. 550. Those guidelines superseded the earlier notification of 23 December 2020 and were further amended by a Resolution dated 17 March 2025.

The nodal agency for MKUY is the Agricultural Promotion and Investment Corporation of Odisha Limited (APICOL), which sits under the Department of Agriculture and Farmers' Empowerment. Locally the scheme is spoken of simply as "MKUY" or by its transliterated name Mukhyamantri Krushi Udyoga Yojana.

MKUY pays a one-time Capital Investment Subsidy (CIS) on the fixed capital put into a new commercial agri-enterprise. The purpose is to move Odisha's farmers and rural entrepreneurs beyond raw production into processing, storage, mechanisation services and allied businesses that generate a steady income and rural employment.

How much subsidy does MKUY give?

The MKUY-2024 pattern of assistance has three rates, all calculated on fixed capital investment excluding the cost of land:

The Rs 1 crore ceiling applies to one entrepreneur or one family taken as a whole. Following the March 2025 Resolution, family means the individual, the spouse and their unmarried sons and daughters. That limit runs for a period of 10 years, counted from the date of completion of the last new project or expansion, after which a fresh limit opens up provided the earlier project ran successfully for at least 10 years.

An entrepreneur may run more than one enterprise across different sectors, and may take up a new project or an expansion one year after successfully completing the previous unit, but the cumulative subsidy still cannot cross Rs 1 crore.

Who is eligible for MKUY and who is not eligible?

You can apply if:

• You are an individual, a partnership firm, a group of individuals, a registered FPO, FPC, FPG, NGO society, SHG, GPLF, BLF, DLF, PACS, LAMPS, farmers' cooperative society, an apex federation such as OMFED, OPOLFED or FISHFED, or a company registered under the Companies Act 2013.
• You are at least 18 years old on the date of the online application.
• You hold a valid Record of Rights (RoR) for the project land in Odisha in your own name, your group's name or the company's name; where the land belongs to your spouse you file an NOC in Annexure-V; in every other case you produce a lease deed of at least 15 years from the date of application.
• You hold a valid Aadhaar at the time of application.
• Your proposed enterprise will generate average net income of at least Rs 2 lakh a year, or Rs 1 lakh a year for women's self-help groups.

Non-residents of Odisha are explicitly allowed to set up agri-enterprises in the state under MKUY. Enterprises may be run from rented premises too, on a registered agreement of at least 9 years, though no subsidy is then paid on civil construction. Where an applicant dies before completion, a legal heir may continue the project by producing a legal heir certificate, the death certificate and an affidavit-based NOC from the other heirs.

You cannot apply; or the project is not eligible: if:

• The activity is on the negative list: units cutting raw tobacco or making Gudakhu, any field crop of less than two years' duration in normal condition, or an integrated rice mill.
• The activity is a land-based short-duration crop such as seed production, papaya, banana or pineapple, or any herb, annual, biennial fruit, vegetable, medicinal, aromatic or flower crop with an economic life of under 5 years in open condition.
• The project was started without prior District Level Committee approval.
• You or your family have already drawn the full Rs 1 crore ceiling within the 10-year window.

Two enterprises carry a qualification bar of their own. An Agri-Clinic requires a bachelor's degree in agriculture or allied sciences, a B.Sc., or a diploma in agriculture or horticulture. A Veterinary Clinic requires a B.V.Sc. registered with the Indian Veterinary Council or the Odisha Veterinary Council.

How to apply for MKUY online

1. Open sugam.odisha.gov.in, select APICOL, and then Mukhyamantri Krushi Udyoga Yojana (MKUY).
2. Fill the online application in Annexure-I and attach the project report summary or financial abstract in Annexure-II, along with the self-declaration (Annexure-III) and family declaration (Annexure-IV).
3. Upload five geo-tagged photographs of the proposed site taken through the MKUY mobile app, four from the corners and one with you standing at the centre of the site.
4. Pay the application fee of Rs 2,000, or Rs 500 if you belong to the concessional categories, through the payment gateway.
5. Wait for the Block Level Officer to verify the application. Any discrepancy is reverted to you a maximum of twice, within 5 working days each time, and you get an SMS or e-mail alert.
6. Attend the joint site inspection with the BLO, who uploads the feasibility report in Annexure-VI within 7 days. For a bank-financed project the branch manager joins the visit and attaches your CIBIL report.
7. The District Nodal Officer retrieves your land record from Bhulekh, records a recommendation within 8 days and countersigns the DPR. The District Level Committee, chaired by the Collector, then meets on the 10th of the month to approve the project.
8. Download your go-ahead letter from the portal. It is issued within a maximum of 52 days from a complete application, and only after this may construction start.
9. On completion, file the subsidy claim in Annexure-IX with the work-done estimate, geo-tagged photographs of every asset created, and all bills and vouchers, and put up a permanent MKUY display board at the project.

What happens if the application is rejected?

Where the District Nodal Officer does not recommend a proposal, the reasons must be recorded in three points of at most 50 characters within 8 days, and the entrepreneur receives an SMS with those grounds. The commonest causes are land records that do not match Bhulekh, a lease shorter than 15 years, an activity on the negative list, incomplete geo-tagged photographs, and a family that has already exhausted the Rs 1 crore ceiling. Land disputes are meant to be settled at the DLC stage itself, the guidelines make the DLC accountable for verifying land records before the go-ahead is issued, and allow the Collector to co-opt the Tahasildar into the meeting.

If a task is not completed by the BLO, DNO or District Manager APICOL within the prescribed time, the system sends an automatic alert to the next higher level, and the Directors of the line departments have an online window to monitor and act.

How is the MKUY subsidy paid?

Capital Investment Subsidy is released after the unit is complete — after trial production for manufacturing units and after completion of building, plant and machinery for everything else, as certified by the District Nodal Officer. Before release, the entrepreneur signs an agreement with the DNO on a Rs 100 non-judicial stamp paper.

For self-financed projects, APICOL credits the subsidy directly to the entrepreneur's Aadhaar-linked bank account. For bank-financed projects, a front-ended procedure through a mirror account applies: the bank opens a mirror account in the entrepreneur's name and requests front-ended CIS, and APICOL releases the lower of 80 percent of the estimated CIS, the loan amount, or the MKUY eligibility ceiling, within 15 days of the request. The advance sits in the mirror account at zero percent interest, the EMI is calculated without counting it, and the balance is released after completion and adjusted against the loan.

What does an MKUY project cost and who prepares the DPR?

MKUY sets no fixed project cost, because size and capacity vary by enterprise, but the total project cost must be under Rs 50 crore to qualify. Bank-financed applicants must take a term loan or overdraft of at least 10 percent of project cost.

Costing follows fixed rate schedules: OPWD or NABARD rates (whichever is lower) for civil construction, private lift irrigation or NABARD rates for pumps and pipes, Director of Horticulture, NHB or NABARD rates for micro-irrigation, and MIDH, NHB or NABARD rates for protected cultivation and refrigerated vans. At valuation the lowest of all applicable options is taken. The cost of land is never included.

Under the March 2025 Resolution, the admissible charge when APICOL prepares your DPR is 0.1 percent of total project cost, capped at Rs 10,000 plus GST, and applicants remain free to engage any professional agency instead.

Which enterprises can be set up under MKUY?

Annexure-XX of the guidelines carries an illustrative list, and the State Level Committee can add new agro-based enterprises. Recognised project types include ragi, small millet and coarse cereal processing units, oil extraction and oilseed processing, maize processing, pulse processing, bakery and confectionery, mechanised packaging units, rubberised rice shelling mills for organic and aromatic rice, cashew processing, coir-based industry, rural godowns, multipurpose warehouses and modern silos, rural technology and renewable energy systems, manufacture of farm machinery, drones, hydroponics and bio-floc systems, and manufacture of agricultural packaging materials such as egg trays and fish ice boxes. Sericulture and ericulture projects, agro-eco tourism and a Biomass Collection Centre; added at Sl. 23 of the inter-departmental sector by the 2025 Resolution; are also covered.

An Agro Service Centre has its own rules: the entrepreneur picks at least seven machines from the State Level Technical Committee approved list published on agrisnetodisha.ori.nic.in, may build a truss-structure implement shed of up to 1,200 sq ft and 15 feet height at OPWD rates, and draws a tractor subsidy of Rs 1,20,000 up to 40 PTO HP or Rs 1,50,000 above 40 PTO HP. A trailer may be bought along with a tractor but not on its own.

Where do I go for help or a grievance under MKUY?

APICOL, Bhubaneswar, is the nodal agency and the first point of contact. At the district level the District Manager, APICOL is the member-convener of the District Level Committee, while the Chief District Agriculture Officer is the District Nodal Officer for agriculture and inter-departmental projects, the Deputy Director Horticulture, District Fisheries Officer and Chief District Veterinary Officer for their sectors. Policy questions, disputes that the district cannot settle, and requests to add a new enterprise type go to the State Level Committee chaired by the Secretary, Agriculture and Farmers' Empowerment Department, with the Managing Director of APICOL as convener.

Two cautions are worth noting. Payments of Rs 50,000 or more to a single seller must be made online or by cheque, and where GST is not applicable the seller's Aadhaar copy must be attached. And subsidy already drawn is recoverable if the project is found to be misrepresented, so the bills, geo-tagged photographs and display board requirements are worth taking seriously.