Agro- Service Center (ASC) with 2026 updates, under MKUY (English)

                Latest Modifications in Guideline – 2026

Eligibility: Who Can Establish an ASC?

To qualify for assistance under MKUY-2024, applicants must satisfy several eligibility criteria designed to ensure local development and operational stability.

• Eligible Entities: Individuals, partnership enterprises, Farmer Producer Organizations (FPOs), Farmer Producer Companies (FPCs), NGOs (Societies), Self-Help Groups (SHGs) and their federations (GPLF, BLF, DLF), and Primary Agriculture Cooperative Societies (PACS) or Large-Area Multipurpose Societies (LAMPS).
• Age and Residency: Applicants must be at least 18 years old. While residents of Odisha are the primary focus, non-residents are also eligible to establish enterprises within the state.
• “Family” Subsidy Limit: The maximum cumulative subsidy is capped at Rs. 1.00 Crore per “Family.”
  • Policy Note: Under MKUY-2024, “Family” is defined per the Odisha Public Distribution System (Control) Order, 2016, comprising the individual, spouse, unmarried children, married sons with their spouses, and dependent parents. Applicants must submit a Self-Declaration (Annexure-III) and a Family Declaration (Annexure-IV) verifying they have not exceeded this limit.
• 10-Year Fresh Limit Rule: A beneficiary family becomes eligible for a fresh subsidy limit after 10 years, provided the initial project was successfully completed and remained operational for at least a decade.

The scheme provides a substantial Capital Investment Subsidy (CIS) based on the “Fixed Capital Investment,” which includes infrastructure and machinery but strictly excludes land costs.

MKUY 2024 Subsidy Patterns for ASC

*Note: Group entities qualify for 50% subsidy if all members belong to preferential categories (SC, ST, Women, Transgender, PwD, or Agri-Graduates).

Strategic Tip: DPR Subsidy The cost of preparing your Detailed Project Report (DPR) is itself eligible for subsidy. For projects up to Rs. 1 Crore, the admissible cost is 0.2% of the total project cost. For projects exceeding Rs. 1 Crore, it is 0.15% (subject to a minimum of Rs. 20,000 and maximum of Rs. 50,000).

ASC Technical Requirements: Machineries and Infrastructure

Establishing an ASC requires adhering to specific technical mandates to ensure the center can effectively serve local farmers:

• Mandatory Selection: You must choose at least seven or more machineries/implements from the State Level Technical Committee (SLTC) approved list.
• Tractor Specifications:
  • PTO HP vs Engine HP: Subsidy caps are based on Power Take-Off (PTO) Horsepower. Tractors up to 40 PTO HP are capped at Rs. 1,20,000, while those above 40 PTO HP are capped at Rs. 1,50,000.
  • Ownership Rules: If you do not purchase a tractor under the scheme, you must prove ownership (or spouse ownership) of a tractor to qualify for tractor-driven implements.
• Trailer Rule: You cannot purchase a trailer in isolation. Trailers are only permitted for subsidy when bought in conjunction with a tractor.
• Implement Sheds: You can claim subsidy for storage sheds. These must be truss structures with a maximum plinth area of 1200 sft and a maximum height of 15 feet.
• Compliance Monitoring: For machinery costing Rs. 2.00 lakh or more, a mandatory Post-Delivery Inspection (PDI) will be conducted jointly by the Assistant Agricultural Engineer (AAE) and Assistant Executive Engineer (AEE) at the 1st, 3rd, and 5th-year marks.

The project land must meet specific legal requirements to ensure the long-term viability of the enterprise:

• Possession Rights: Requires a valid Record of Rights (RoR), a registered lease for 15 years, or a registered rent agreement for at least 9 years.
• Spouse-Owned Land: If land is in a spouse’s name, you must submit a No Objection Certificate (NoC) as per Annexure-V.
• Infrastructure Inclusions: Subsidy covers new construction essential for the ASC, including store rooms, machine rooms, implement sheds, pump houses, solar/barbed wire fencing, and protected structures.
• Ineligible Infrastructure: Dwelling houses, guard rooms, masonry compound walls, and internal roads are strictly excluded from CIS.
• Space Limits:
  • Labour Sheds: Max 200–300 sq ft depending on project cost.
  • Office Rooms: Max 200–300 sq ft depending on project cost.

The Step-by-Step Implementation Journey

The application process is entirely digital and follows a rigorous 52-day timeline to ensure efficiency.

1. Online Application: Register via sugam.odisha.gov.in. Fees are Rs. 2,000 for General Male and Rs. 500 for preferential categories (inclusive of GST).
2. Field Inspection (BLO): Within 7 days, the Block Level Officer (BLO)—specifically the Assistant Agricultural Engineer (AAE) for ASC projects—will conduct a site visit and upload geo-tagged photography.
3. DNO Recommendation: The District Nodal Officer (District Manager, APICOL for ASC) reviews the proposal and verifies land via Bhulekh within 8 days.
4. DLC Approval: The District Level Committee (DLC), chaired by the Collector, meets on the 10th of every month.
   • Policy Note: If you miss the window for the 10th, your application will wait for the next month’s meeting.
5. Go-Ahead Letter: You should receive your official authorization within 52 days of a complete application.
6. Project Execution: You have 2 years to complete the project. You must upload geo-tagged photos at three distinct developmental stages.

Financing and the “Mirror Account” System

Entrepreneurs can choose between self-finance or bank-finance (minimum 10% term loan or overdraft).

The Mirror Account SOP: To significantly reduce your interest burden, APICOL utilizes a credit-linked “Mirror Account” system. Upon loan sanction, APICOL releases a front-ended subsidy (80% of the estimated CIS) to a zero-interest mirror account.

• Calculation Rule: APICOL releases the lowest of: 80% of the estimated CIS in the DPR, the actual loan amount, or the maximum CIS eligibility limit. You only pay interest on the loan portion not covered by this front-ended release.

Project Completion and Subsidy Release

Once your ASC is operational, follow these final steps:

• Documentation: Submit the Project Completion Report (Annexure-IX) and upload 5 geo-tagged photos, including your permanent display board.
• Joint Verification: A team comprising the AAE and the DNO will conduct a physical verification-cum-valuation using Annexure-XII and Annexure-XIV.
• Compliance: All bills must be GST-compliant. Payments over Rs. 50,000 must be made via cheque or online.
• Final Disbursement: Execute the Agreement (Annexure-XVII) on a Rs. 100 non-judicial stamp paper. Once the Subsidy Release Certificate (SRC) is issued, the remaining funds are released to your account.

Important Timelines and Compliance Alerts

• Project Delay Penalties: Delays result in heavy deductions: 20% (up to 6 months delay), 50% (6–12 months), and zero subsidy beyond 1 year.
• Transparency Rule: Any purchase of items worth Rs. 50,000 or more from a single seller must include a copy of the seller’s Aadhaar (if GST is not applicable) and be paid via non-cash methods.
• Recovery: Misrepresentation of facts or closing the unit prematurely will lead to the recovery of the subsidy as arrears of land revenue.

Checklist for Applicants

Ensure the following documents are scanned and ready for your online application:

• Land Record (RoR) / Registered Lease (15 yrs) / Rent Agreement (9 yrs).
• Detailed Project Report (DPR).
• Photograph of the applicant and 5 geo-tagged photos of the site.
• Subsidy Non-Availing Certificate (Annexure-III).
• Family Declaration Form (Annexure-IV).
• NoC from spouse (if land is in spouse’s name – Annexure-V).
• Annexure-XIV for ASC machinery purchase details.
• Aadhaar Card and Aadhaar-linked Bank Account details.
• Certificate for preferential treatment (Caste, PwD, or Agri-Degree).
• Letter of incorporation (for Companies/Partnerships/FPOs).