What MKUY funds
MKUY — Mukhyamantri Krushi Udyog Yojana — is Odisha's flagship agri-business capital investment subsidy scheme, implemented by APICOL (Agriculture Promotion & Investment Corporation of Odisha Ltd.). It is designed for individual entrepreneurs, FPOs, SHGs, cooperatives and small firms that want to set up primary or secondary processing infrastructure in Odisha's agriculture, horticulture, fisheries, animal husbandry or allied sectors.
Eligible units + cost ceiling
- Rice mill, modern parboiling unit, dal mill
- Oil expeller (groundnut, mustard, sunflower, niger)
- Cashew processing (Ganjam belt)
- Cold storage, cold-chain, pack-house, ripening chamber
- Primary processing centre (sorting, grading, cleaning)
- Dairy plant, poultry unit, fishery hatchery, prawn feed unit
- Ware-housing under WDRA-compliance
- Bio-input units (jeevamrit, vermicompost, bio-fertiliser)
Eligible project cost ceiling is ₹2.5 crore. Subsidy is 40% (general category) or 50% (SC, ST, women, FPO, cooperative), capped at a maximum of ₹50 lakh per project.
How to apply
- Prepare a Detailed Project Report (DPR) — APICOL empanels several DPR consultants. Mandatory sections: project rationale, market study, techno-economic feasibility, layout, machinery, financial projections (5 — 7 years), promoter equity statement.
- Obtain in-principle bank sanction (or NABARD refinance commitment). APICOL releases capital subsidy back-ended after bank disbursement and unit operationalisation.
- Apply via apicol.co.in — upload DPR, bank sanction, land lease/ownership, GST + Udyam, promoter ID. APICOL board approves on quarterly cycle.
- On approval, the subsidy lock-in is granted; bank disburses term loan; APICOL releases subsidy in 2 tranches (50% on machinery installation, 50% on commercial operation + inspection).
- Mandatory 3-year continuous operation; default triggers subsidy recovery as adjusted advance.
Convergence with central schemes
MKUY is designed to stack with central capital- and credit-subsidy schemes: AIF (3% interest subvention on term loan up to ₹2 cr, plus credit guarantee); PMFME (35% capital subsidy capped at ₹10 lakh for micro food units — typically stacked under the MKUY umbrella); MIDH for horticulture-specific infrastructure; PMMSY for fishery; AHIDF for livestock processing. Stacking rules: total subsidy across schemes capped at 60% of project cost; APICOL reviews stacking on a case basis.
Latest changes (2024 — 2026)
- 2024: MKUY guidelines refreshed post the new state government; FPO + women cooperative slab raised from 45% to 50%.
- 2025: Online DPR review tightened; mandatory bank in-principle sanction within 90 days of APICOL clearance to retain subsidy lock-in.
- 2025-26: Cashew processing + millet flour micro-units flagged as priority sectors; quarterly board cycle replaces earlier annual cycle.
Common rejection reasons
- Weak DPR: techno-economic feasibility ratio < 1.3 or DSCR projection < 1.4 → reject.
- No bank sanction: APICOL only releases subsidy on lender approval; standalone grant is not available.
- Land lease < 15 years: machinery-bearing projects require a minimum 15-year secured lease (or freehold).
- Subsidy stacking violation: if combined subsidy across MKUY + AIF + PMFME + MIDH exceeds 60% cap, APICOL reduces MKUY share.
- Default in 3-year operation: triggers subsidy recovery proceedings.
Coverage and outlay
MKUY supports ~150 — 250 projects per year across Odisha. Cumulative since launch in 2018, APICOL has cleared ₹1,000+ crore in subsidies across 1,500+ agri-business units. Cashew processing (Ganjam, Puri), cold storage (Sambalpur, Mayurbhanj, Khurda) and rice/dal milling (Bargarh, Sundargarh) lead the project mix. Convergence with the Odisha One Stop Facilitation Centre (OSFC) handles inter-departmental clearances.
How MKUY stacks with other schemes
MKUY is Odisha's capital-side instrument. Paired with KALIA (income/insurance) and OMM (cluster + procurement), it forms the downstream-processing leg of Odisha's farm- to-factory pipeline. Cashew shellers in Ganjam, ragi-flour units in Koraput, kewra-oil distillers in Ganjam and prawn-feed plants in Kendrapara are the high-volume project archetypes funded under MKUY.
Related
- AIF (interest subvention on term loan + credit guarantee).
- PMFME (micro food unit 35% subsidy).
- MIDH (horticulture infrastructure subsidy).
- 10,000 FPOs.
- Odisha state guide.