BHUBANESWAR: The launch of the Udyami Yojana, which was introduced in this fiscal year’s state budget to assist 6,000 nano entrepreneurs in rural Odisha, is currently stalled. This delay stems from inquiries made by the Finance department directed at the Skill Development and Technical Education (SDTE) department. They are seeking to clarify whether the initiative overlaps with existing efforts and why the Micro, Small, and Medium Enterprises (MSME) department, which primarily oversees such programs, is not implementing it.
The current Nano Unicorn scheme, designed to support roughly 1,200 small businesses, particularly in rural areas of Odisha, is set to conclude in the fiscal year 2025-26. In response, the state government proposed the Udyami Yojana to foster nano entrepreneurship at the grassroots level.
During his budget presentation in February, Chief Minister Mohan Charan Majhi announced that ₹40 crore would be allocated over the next two years for this new initiative aimed at promoting 6,000 nano entrepreneurs. Majhi noted that the program would include structured entrepreneurship development initiatives and provide the necessary linkages for accessing formal credit, along with mentoring and support to ensure the sustainable establishment of enterprises within the state.
However, the Finance department has raised concerns with the SDTE department regarding the implementation of the scheme, questioning why it is not being overseen by the MSME department. Sources indicate that the Finance department believes there may be redundancy between the efforts of the MSME and SDTE departments, as both are involved in similar activities. Ideally, the MSME department should execute the program while collaborating with the SDTE for skill development support.
The Finance department has requested the SDTE to provide input from the MSME department on this issue. They have also asked for details on the physical and financial achievements of the prior Nano Unicorn scheme, which was executed by the SDTE through the Odisha Skill Development Authority (OSDA) in partnership with various stakeholders.
Additionally, the Finance department is seeking information regarding the distribution of seed funding, which includes a refundable seed loan of up to ₹1 lakh for beneficiaries to kickstart their business ventures. This loan is repayable over a maximum of 36 months, beginning in the second year.
According to sources, the SDTE has previously informed the Finance department that Udyami Yojana is intended as a specialized initiative for promoting grassroots entrepreneurship. It aims to identify, nurture, finance, mentor, and connect first-generation entrepreneurs, particularly those skilled in Odisha, from rural and underserved areas of the state.
Distinct from existing entrepreneurship promotion schemes, the proposed Udyami Yojana adopts a comprehensive implementation plan that encompasses the entire entrepreneurial lifecycle—ranging from beneficiary mobilization and entrepreneurship development programs (EDPs) to business establishment, credit linkage, market access, and ongoing support after establishment.
