How The ODOP Scheme Is Transforming Indian Exports And The Local Economy?

The One District One Product, ODOP scheme subsidy is a disruptive initiative by the Government of India, first tested in Uttar Pradesh, in January 2018, that identifies one signature product in the district—e.g., chikankari embroidery in Lucknow or terracotta in Gorakhpur and empowers local artisans financially, along the way providing infrastructural, marketing, and monetary support. The scheme aligns with Atmanirbhar Bharat, allowing for a local youth workforce economic development post-pandemic, and enabling individuals to have a say in how their local traditional industries develop.

In this article, you will get the detailed information about the ODOP scheme, its objective, mission and vision, budget, implementation and much more.

What Is The One District One Product Scheme?

The ODOP scheme is India's adaptation of Japan's One Village One Product methodology, and it starts from the identification of a district-based product, often GI-tagged, and provides financial, local and means of production support, packaging, and branding to artisans, including ODOP Mart, GeM and Flipkart. What started as a UP state program has seen adoption at a national level due to its success.

Mission & Vision

The mission is to enable micro, small and medium enterprises (MSMEs) and artisans. The ambition of the ODOP loan scheme is for each district to become a global destination for its flagship product by 2025, as part of the Make in India and Vocal for Local campaigns.

Also Read: Top 10 Government Schemes In Uttar Pradesh

Multiple Products

While ODOPs are recognised as single products per district, it is noted that this approach is flexible, and some districts have a diversity of crafts (Amroha with musical instruments and garments). There is a primary agenda to identify and promote the primary product of the district.

Budget

The budget available for the ODOP scheme is a useful flag about how serious it is. Here are some insights around capacity.

Monitoring

To make the ODOP loan scheme effective and streamlined, all levels of government will monitor the implementation of the scheme, continuing:

• District Level - The District Magistrate will give an update once a month.

• State Level - The Chief Secretary of Micro, Small, and Medium Industry will give quarterly progress reports every two months.

• Review of Quarterlies - A committee, which will be headed by the Infrastructure and Industrial Development Commissioner, will review the scheme quarterly, thus updating every three months.

• Daily Monitoring at the district level will be conducted by the Deputy Commissioner of Industries daily.

A basic and friendly portal and helpline will be created for:

• Answer questions

• Accommodating technology, training, marketing and consultancy.

• End users in the region need to know findings from top research/education institutions to users in the region for innovations.

• The OBOD Cell will be responsible for administering the budget and funding of the scheme under the Export Commissioner.

Also Read: What Is Family ID In Uttar Pradesh?

Some Important Points

The points below outline some of the broader significance of ODOP and about contribution to India's development strategy.

1. Common Facility Centre

• Assists in the creation of facilities with equipment and shared services for makers of ODOP products.

• Eligible: NGOs, SHGs, Private Ltd. Companies, etc.

• Requires a minimum of 20 members to form a Special Purpose Vehicle (SPV), with at least two-thirds to be involved in making ODOP products for the SPV.

• The state government will provide some funding based on the project cost.

2. Marketing Development Assistance (MDA) Scheme

• Aims to ensure fair prices by better promoting the ODOP products.

• Provides financial assistance to attend national and international exhibitions or fairs.

• Aims to promote ODOP products worldwide and to increase awareness.

3. Margin Money / Financial Assistance Scheme

• Provides a subsidy that would decrease the loan burden for ODOP businesses.

• Funded by banks with greenhouse subsidies from the government.

• Will provide a subsidy of 10% of the project cost, maximum amount dependent on a maximum amount of ₹20 lakhs.

• The subsidy will be merged with the business after 2 years of continuous operation.

4. Skill Development Scheme

• Aims to train workers and artisans in skills associated with ODOP.

• Assistance with toolkits is provided with further training on more advanced tools if required.

• Eligibility: Below are some eligibility indicators:

• 1. You must be legally residing in Uttar Pradesh.
• 2. You must be 18 years old or older.
• 3. You must not have received a toolkit within the last two years.

5. Age Requirement.

• You must be 18 years or older.

6. Contact If You Need Help

• Toll Free ODOP Helpline: 1800-1800-888.

• You can also reach out to your nearest District Industries Centre (DIC) for assistance.

7. Schemes for Women

• There are no schemes exclusively for wom;n, however, women are eligible to apply under the Stand Up India Scheme to avail of similar benefits.

8. District Wise Product List

• A complete district-wise list of ODOP/ product selections is available on the ODOP official website.

9. One Beneficiary Per Family

• Only one beneficiary per family can avail of he benefits under ODOP.

10. Already Taken out a Government Loan?

• If you have already availed benefits under similar government schemes, you may not be eligible for ODOP again.

11. If the bank Loan is rejected?

In the event your loan is rejected by the bank after approval from DIC:

• Ask the bank manager for the reason in writing.

• If you are unsatisfied, a formal complaint can be made to the Banking Ombudsman.