Investment Opportunities in Odisha, India | Invest Odisha

Industrial Policy Resolution (IPR) 2015

Context & Objective

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.

Priority Sectors

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.

New Age Sectors

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.

Ease of Doing Business

Key Highlights :

  • Single Window Clearance and Online Combined Application Form (CAF) to facilitate time bound clearances to investment
  • A three-tier single window clearance mechanism to facilitate speedy implementation of industrial projects is in place
  • Investment Facilitation Cells at Nodal agencies
  • Timelines for industrial clearances under Right to Public Services Act
  • Risk based synchronized Central Inspection Framework
  • GIS based comprehensive industrial Data Bank
  • “Self-Certification” for Labor related compliances
  • Online consent management system for environment clearances, exemption of green category of industries from consent administration
  • Low Tension (LT ) electricity connection to be provided within 15 days from application
  • Institutional mechanism for grievance redressal at State and District level
  • 8 categories of Industries / Establishments to be declared as "Public Utility Services"
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
A2 >200 200
A3 >500 400
Category B B1 >50 75
B2 >100 100
B3 >250 200
Power
  • Committed 24*7 power
  • Dedicated industrial feeders
  • Reimbursement of Rs. 0.25 – 1.25 per unit for a period of 5 years based employment and investment (Category A1-3, B1-3)
Training Subsidy
  • Reimbursement of training cost upto Rs. 1750 – 4000 per person for every person trained and newly recruited for a period of three years based employment and investment (Category A1-3, B1-3)
Land for Workers Hostels
  • Land rate at 50% of the prevailing market rates of IDCO
Capital grant to support Quality Infrastructure
  • 50% of the infrastructure cost with a ceiling of Rs.10 crore per green field industrial park/cluster
    50% of total cost with a ceiling of Rs.5 crore for up gradation of brown field clusters.
Capital Subsidy for Plant and Machinery
  • Capital subsidy of 10% upto maximum as indicated based on employment and investment in Auto and Auto Components, Agro and Food Processing, Textile including Technical Textile & Apparel, Pharmaceuticals and Plastics sectors
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
  • 25% subsidy on cost of land
  • VAT Reimbursement for additional 2 years subject to the overall limit
 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:

  • 30% capital investment subsidy on investment made in Plant & Machinery, disbursed over a period of 10 years
  • Reimbursement of Power Tariff of INR 2.00 per unit consumed for a period of 7 years
  • 100% exemption from payment of electricity duty for a period of 7 years
  • Reimbursement of 100% of net SGST paid for a period of 7 years, overall limited to 200% of the cost of plant and machinery
  • 100% exemption of Stamp duty and land registration charges
  • 100% reimbursement of ESF/EPF for 5 years, for skilled and semi-skilled workers, who are domicile of the state.

* 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