The State Old Age Pension (SOAP) Scheme was being implemented in the State w.e.f. 01.04.1975.Destitute elderly of 60 years of age and above, lepers with visible sign of deformity and widows irrespective of their age were the beneficiaries. Annual income of all the above categories were Rs.3,200/- or less.

Later on the the State Government, has introduced “Madhu Babu Pension Yojana (MBPY)” by merging two pension schemes “Old Age Pension Rules, 1989” and “Disability Pension Rules,1985” which came into effect from 1st January 2008. This Yojana is to be administered in accordance with the provisions contained in the Madhu Babu pension Yojana Rules 2008 for a better and smooth implementation in view of its expanded coverage in the state. All the beneficiaries who were covered under state old age pension scheme and Orissa Disability Pension scheme in the State are now being treated as beneficiaries under Madhu Babu Pension Yojana with effect from 1st January 2008.

A person shall be eligible to pension under MBPY, if he/she :-
(A) (i) is of 60 years of age and above(OAP)
     (ii) or, is a widow ( irrespective of age) (WP)
     (iii) or, is a leprosy patient with visible signs of deformity (irrespective of age) (PLP)
     (iv) or, is a person of 5 years of age or, above and unable to do normal work due to his/her deformity or disability being totally            blind or, orthopaedically handicapped or, mentally retarded or, with cerebral palsy. (DP)
     (v)  or, a widow of AIDS patient(irrespective of age and income criteria mentioned under Rule 6 (b).(WP-AIDS)
     (vi) or, an AIDS patient identified by the State / District AIDS Control Society (irrespective of income as under Rule 6 (b).
          (PP-AIDS:)
(B) has family income from all sources not exceeding Rs.12,000/- per annum (Tahasildar concerned to certify)
(C) a permanent resident / domicile of Orissa
(D) has not been convicted of any criminal offence involving moral turpitude.
(E) is not in receipt of any other pension from the union Government or the state government or any organization aided by either       Government.

The amount of pension payable to each pensioner under the scheme shall be of such amount as may be decided by Govt. from time to time. The present rate of pension is Rs. 200/- P.M. per beneficiary.

The rate of monthly pension per beneficiary under the scheme was Rs.200/- per month from 1st of April,2006.

The number of beneficiaries targeted to be covered under the scheme was 1408400 during 2009-10. The budget provision was made Rs.33801.60 lakh under the scheme. Out of this Rs, 12000.00 lakhs was under State plan and Rs, 21801.60 Lakhs Under Non-Plan.