Following the overwhelming success of the ‘One District-One Product’ (ODOP) initiative, the Uttar Pradesh government is gearing up to implement its second phase, ODOP 2.0, aimed at strengthening local entrepreneurship and positioning the state as a global export hub. The new strategy is being formulated by the MSME department to make existing schemes more result-oriented and provide enhanced financial and technical support to small businesses.
During a recent high-level meeting, Chief Minister Yogi Adityanath described ODOP as more than a government scheme, calling it a “powerful medium for sustainable employment and local entrepreneurship” in the state. Expanding this vision, the government plans to broaden financial assistance and simplify cluster development initiatives.
Key Features of ODOP 2.0:
-Increased Financial Support: The grant limit for Micro, Small and Medium Enterprises (MSMEs) is proposed to rise from Rs 20 lakh to Rs 50 lakh under ODOP 2.0, along the lines of the Pradhan Mantri Employment Generation Programme (PMEGP).
-Add-On Loans: Successful units will be eligible for additional loans to upgrade technology and improve packaging. To avail a second loan, units must have repaid at least 50 per cent of the first term loan on time.
-Technological Upgrades: Financial assistance of up to 75 per cent (maximum Rs 3.75 crore) will be provided for projects up to Rs 5 crore, helping small entrepreneurs access modern machinery and better packaging facilities.
-Simplified Cluster Development: The Common Facility Centre (CFC) scheme will be simplified, reducing the minimum member requirement from 20 to 10, allowing smaller groups to benefit. The state may provide up to 90 per cent of its share for these centres.
According to K Vijyendra Pandian, Commissioner and Director of Industries, ODOP has transformed the state’s economic landscape since its inception in 2018.
Key achievements include:
-Exports Growth: Uttar Pradesh’s total exports rose from Rs 88,000 crore in 2017 to Rs 1.86 lakh crore in 2024.
-ODOP Contribution: ODOP products account for around 50 per cent of the export growth, contributing approximately Rs 93,000 crore.
-Support to Entrepreneurs: Over 1.25 lakh toolkits have been distributed, and loans exceeding Rs 6,000 crore have been sanctioned.
-Recognition: The state has received Geographical Indication (GI) tags for 44 products and has twice won the prestigious national ODOP award.
The government aims for ODOP 2.0 to serve as the backbone of Uttar Pradesh’s exports, providing financial empowerment and global market access to small and medium enterprises across the state.