The Industrial Policy Resolution 2015 has been formulated to create a conducive environment through an enabling Policy and regulatory framework to drive sustainable industrial growth in the State. The State is committed to simplify the processes and procedures and expedite project approvals and clearances.
The Policy focusses on providing quality industrial infrastructure, creation of a large land bank, financial assistance to the private sector for development of industrial infrastructure and sustainable environmental protection. The emphasis of the policy is to make Odisha “a destination of choice” for industrial enterprises.
The following sectors have been identified as Priority Sectors in the Policy:
Agro and Food Processing, Ancillary and Downstream, Automobiles and Auto-components, Manufacturing in Aviation and Maintenance Repair & Overhaul (MRO) facilities, Bio-technology, Gem stone cutting and polishing, Handicraft, Handloom, Coir and Leather products, Information technology, IT enabled service and ESDM units, Petroleum, Chemicals & Petro-chemicals, Pharmaceuticals, Plastics and Polymers, Sea food Processing, Textile including Technical Textile & Apparel, Tourism and Hospitality.
Government of Odisha has made amendments to the Industrial Policy Resolution (IPR) 2015, aiming to attract industrial investments in Mega Industries in New Age Sectors to the state.
The New Age Sectors including Electric Vehicles Manufacturing; Green Energy; Electronics and Telecommunication equipment manufacturing; Textile, apparel, wearables and luggage; Pharmaceuticals; White Goods and components; Capital Goods; Aerospace and Defense have shown immense potential to contribute towards the economic and social development of the country. While the conventional industrial sectors will serve as a platform, the New Age Sectors are set to provide an impetus for accelerated industrial growth in the coming years. Besides generating revenue and creating local employment, the Mega Industries will also be instrumental in bringing high-end technologies to the state. They will also assist in generation of ancillary industries around them, thereby having a multiplier effect on employment, revenue and overall growth in the state. Hence enhanced incentives (through Amendment dated 29th November, 2021) are being made available for investment in New Age Sectors.
Key Highlights :
|Industrial Infrastructure Development Fund||An exclusive Industrial Infrastructure Development Fund (IIDF) with an initial corpus of Rs.100 crore for development of quality infrastructure|
|Special Economic Zones||Separate policy for SEZs to provide fiscal and non-fiscal incentives|
|National Investment and Manufacturing Zone (NIMZ)||To be developed at Kalinganagar in an area of approx. 40,000 acres with state-of-the-art infrastructure into a competitive manufacturing base|
|Petroleum, Chemicals and Petrochemical Investment Region (PCPIR)||To be developed at Jagatsinghpur and Kendrapara districts in an area of 284 sq. km. with Indian Oil Company Limited as the anchor tenant, one of the 4 PCPIRs in the country|
|Ports||In addition to Dhamra and Gopalpur ports, being developed on PPP mode, the State Government shall develop complimentary infrastructure to support port- based manufacturing|
|Part A: Employment Rating Based Incentives|
|Category of Districts||Category A||All other districts other than Category B|
|Category B||Industrially Backward Districts- Kalahandi, Nuapada, Bolangir, Subarnpur, Koraput, Malkangiri, Rayagada, Nawrangpur, Kandhamal, Gajapati and Mayurbhanj|
|Category||Investment (Rs. Crore)||Minimum Employment (Number)|
|Classification of Industry||Category A||A1||>100||100|
|Land for Workers Hostels||
|Capital grant to support Quality Infrastructure||
|Capital Subsidy for Plant and Machinery||
|Category||Max Capital Subsidy|
|A1/ B1||10% of investment with a max. of Rs. 10.0 Cr|
|A2/ B2||10% of investment with a max. of Rs. 20.0 Cr|
|A3/ B3||10% of investment with a max. of Rs. 50.0 Cr|
|Part B: Other Incentives|
|Land||10% of the land for large projects subject to an upper limit of 300 Acres shall be earmarked for setting up ancillary and downstream industrial park|
|Anchor Tenant Subsidy||
|Incentive||Priority sector||Micro||Small||Medium||Large #|
|Exemption from payment of premium, leviable under OLR Act.1960||100% up to 100 Acres and 50% for balance area||100 % up to 5 Acres||100 % up to 5 Acres||75 % up to 25 Acres||50 % up to 500 Acres|
|Interest Subsidy||5% per annum for 5 years on term loan availed from Public Financial Institutions / Banks|
|Max Limit (Rs. Lacs) for Interest Subsidy||100 (Non-MSME Industries)||10||20||40|
|Stamp Duty Exemption||100%||75%||50%||25%|
|100% exemption from stamp duty on Loan agreements, credit deeds, mortgages and hypothecation deeds executed by the Industrial Units in favor of Banks or Financial Institutions|
|Energy (Exemption in contract demand)||5 MVA for 5 years||500 KVA for 5 years|
|Reimbursement of Value Added Tax (VAT)*||100% for 7 years||75% for 5 years|
|Reimbursement of Entry Tax*||100% for Plant and Machinery|
|100% of raw materials for 5 years|
|Reimbursement of Employment Cost Subsidy (ESI/ESF)*||Male||75% for Micro & Small for 5 years and 50% for Medium enterprises for 3 years||75% for 5 years||50% for 3 years|
|Female||100% for 5 years in Micro & Small and 3 years for medium enterprises||100% for 5 years||100% for 3 years|
|Domicile of state||100% for 3 years|
|Disabled||100% for 5 years|
|Patent Registration||100% of the registration cost up to maximum of Rs.10 Lakhs|
|Quality Certification||Renewal for consecutive two years i.e. for a period of 3 years @ 100% to a total maximum limit of Rs.3 Lakhs.|
|Assistance for technical know-how||100% of cost of purchase of technical know- how up to Rs.1 Lakh in case of indigenous technology and up to Rs.5 Lakhs in case of imported technology.|
|Entrepreneurship Development Subsidy||Reimbursement of 75% of course fee limited to Rs.50,000 per course|
|Environmental Protection Infrastructure Subsidy||20 Lakhs or 20% of capital cost of setting ETP|
Key Incentives for New Age Mega Investments:
* Additional benefits for Pioneer Units, Anchor units and Industries being set up at Kalahandi, Nuapada, Bolangir, Subarnpur, Koraput, Malkangiri, Rayagada, Nawrangpur, Kandhamal, Gajapati and Mayurbhanj are available.
# For industries not listed under priority sector