Odisha Cabinet approves new Industrial Policy

Bhubaneswar: The state Cabinet has approved the Industrial Policy Resolution (IPR)-2022. With this, the validity of Odisha’s IPR-2015 will come to an end.

The IPR-2022 will come into force from the date of its notification and will be applicable for a period of five years.

The IPR- 2022 has been conceptualized with the prime agenda of accelerating broad based and regionally-balanced industrial growth, generating large-scale employment and making Odisha a preferred investment destination, sources said.

The major objectives of the policy are to make Odisha the industrial hub of Eastern India, promote industries in the identified thrust and priority sectors, develop best-in-class industrial infrastructure, create an enabling environment for start-ups and MSMEs, and promote Innovation, Research & Development in new areas of technology.

Under the policy framework, industries have been classified in Thrust, Priority, Others and Negative categories.

The IPR 2022 will offer best-in-class incentives for units establishing in the thrust and priority sectors in the state. The major incentives are:

1. Availability of industrial land at concessional rates with 100 per cent exemption from payment of stamp duty and land conversion charges.
2. New industrial units in Priority and Thrust Sectors shall be provided with 100 per cent exemption from payment of electricity duty for seven and 10 years respectively.
3. New industrial units in the Priority and Thrust Sectors shall be provided reimbursement of Power Tariff of Rs 2.00 per unit for a period of seven and 10 years respectively from the date of commencement of commercial production.
4. Eligible industrial units in the thrust sector and priority sector shall be provided 30 per cent and 20 per cent capital investment subsidy respectively on actual investment in plant & machinery, which shall be disbursed in a phased manner.
5. New industrial units under thrust and priority sectors shall be eligible for reimbursement of 100 per cent of net SGST paid, overall limited to 200 per cent of the cost of plant and machinery.
6. New industrial units in the Priority and Thrust sector category shall be eligible for 100 per cent reimbursement of the employer’s contribution towards ESI and EPF Scheme for a period of five years and seven years respectively from the date of commencement of commercial production for skilled and semi-skilled workers, who are domicile of the state.

Further, the IPR-2022 shall give specific focus on providing quality infrastructure for promoting orderly and sustainable industrial growth in Odisha.

New industrial infrastructure development projects shall be implemented in the state: The list includes:

1. Odisha East Coast Economic Corridor along the National Highway 16.
2. Biju Economic Corridor along the Biju Expressway covering the western Odisha districts. Industries coming up in these areas will be considered under Thrust Sector category and will be incentivized accordingly.
3. Odisha East-West Economic Corridor from Khurda to Jharsuguda.
4. A new scheme called ‘Land Pooling Scheme’ shall be implemented wherein landowners would contribute land to IDCO to form a land pool. IDCO shall then develop the land pool into a modern industrial park with required infrastructure.
5. Every district shall have at least one dedicated MSME park.
6. Necessary measures shall be taken for making available telecommunication, gas, effluent treatment, waste management and disposal and other utilities in the industrial regions.

New IDCO Towers, Workers Hostels, Multimodal Logistics Parks shall be set up at selected locations across the state.

The proposed policy is expected to attract significant investments and generate employment besides generating revenue. The new investors will also be instrumental in bringing high-end technologies to the state.

They will also assist in generation of ancillary industries thereby having a multiplier effect on secondary employment, revenue and overall growth in the state.