World Bank to support enterprises in Uttar Pradesh under ODOP scheme

About 3,000 ODOP units have been benefitted with more than Rs 100 crore under the margin money scheme
International funding agency World Bank is keen to support projects under the flagship 'One District, One Product' (ODOP) scheme of the Uttar Pradesh government.

The ODOP scheme was launched in 2018 to promote the state’s traditional and indigenous industries under the micro, small and medium enterprises (MSME) sector by providing funding, training, marketing support etc.

In this regard, the World Bank has evinced interest to collaborate with the state under two different programmes. There is also a proposal to develop the ecosystem of 14 agricultural and food processing products related to ODOP with the aim of promoting entrepreneurship through integrated cluster development.

The ecosystem of other ODOP and MSME products would be handheld under the schemes run by the Centre and the World Bank. To take the agenda forward, a delegation of senior World Bank officials on Thursday met UP additional chief secretary, MSME and export promotion, Navneet Sehgal.

The official urged the World Bank to expedite the process of extending institutional and funding support to the MSME and ODOP enterprises in the state.

Meanwhile, Sehgal briefed the World Bank officials that the state was working closely with different funding agencies to facilitate easy credit to the ODOP entrepreneurs. While 13 common facility centres had been inaugurated, 20,000 ODOP products were integrated with online platforms.

“About 3,000 ODOP units have been benefitted with more than Rs 100 crore under the margin money scheme,” he informed.

In order promote the ODOP products, the Adityanath government had earlier firmed up alliances with different organisations and companies, including ecommerce giants viz. Amazon and Ebay, to provide a global marketing platform to such products, including leather goods, textiles, wood carving, brassware, glassware, marble products, carpets etc.

The state is planning to launch exclusive retail outlets to market such traditional products across the country. According to the proposal, a standard ODOP outlet will span 100 sq mt in prominent markets, shopping malls, airports, railway stations etc. Under the scheme, which will be partly financially supported by the state government, any government, semi-government or private organisation can run these outlets.

Besides, the state government is in the process of rationalising its investment and export promotion policies to attract companies exiting China owing to the resentment over the outbreak of Covid-19 pandemic.

The government is targetting to augment MSME exports in the next three years to touch the ambitious mark of Rs 3 trillion. During the previous 2018-19 and 2019-20 fiscal years, the MSME exports from the state were to the tune of Rs 1.14 trillion and Rs 1.20 trillion respectively.

The state is planning to conduct a study of leading industrialised states viz. Andhra Pradesh, Tamil Nadu and Gujarat to cut the per unit production cost of UP MSMEs for increasing their competitiveness.

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