State Cabinet approves ‘Odisha IT Policy 2022’; read on to know details

Bhubaneswar: Cabinet today approved ‘Odisha IT Policy 2022’, in order to make the State a prominent investment hub of information technology (IT) in the country, to generate new job opportunities and to position it in the global map as a preferred IT outsourcing destination.

“Odisha, the Sunrise State in Eastern lndia is on the cusp of an information & communication technology revolution. The Government of Odisha has been at the forefront in adoption of emerging technologies in lT to drive and transform governance in the State to positively impact the lives of its citizens. ln consonance with the 5T principles of good governance (Teamwork, Technology, Transparency, Time and Transformation), the State is all set to realise the vision of a digital democracy,” a press note released in this regard by Electronics and IT Department read.

What the ‘Odisha IT Policy 2022’ has in store:

  1. Specific Incentive for lT Parks: Twenty-five per cent of Fixed Capital Investment will be provided as Capital Subsidy limited to Rs 20 crore. Fifteen per cent of the cost of developing solar power plant subject to maximum of Rs 25 lakh will be reimbursed. Greenfield lT Parks shall be eligible of 100 per cent reimbursement of Stamp Duty, Registration Fee and Conversion Fee.
  2. Capital Investment Subsidy: Thirty per cent of the Fixed Capital Investment in buildings and infrastructure, excluding the cost of land subject to a maximum of Rs 3 crore shall be accorded to eligible lT units.
  3. lnterest Subsidy: Eligible lT units will be entitled to get an interest subsidy at five per cent per annum on Term Loans availed from recognised financial institutions and banks, subject to a maximum of Rs 10 crore per year for a period of five years from the date of commencement of commercial operation.
  4. Power lncentive: Exemption of Electricity Duty and Electrical Inspection Fee for five years. There will be reimbursement of Electricity Tariff at 30 per cent for three years capped at Rs 35 lakh per unit.
  5. lncubation Space Rental Subsidy: lT units with up to 40 employees will get subsidies on the rental of lncubation Space for a maximum of three years based on the incubation space. Reimbursement up to Rs 1,400 per seat per month for co-working space in designated IT Parks and lncubation Centers approved by Government and Rs 1,000 per seat per month in notified private IT Park and/or lT Space.
  6. Lease Rental Subsidy: Eligible lT units hiring buildings on rent for operating their centers will be entitled for a subsidy of 75 per cent of the actual rent paid or Rs 20 per sqft per month, whichever is lower. An additional 25 per cent lease rental limited to Rs 5 lakh per annum will be provided to women, SC, ST and disabled entrepreneurs.
  7. Land Subsidy: Hundred per cent exemption of Stamp Duty on first transaction and 50 per cent exemption on the second transaction on lease/sale agreement of land or built-up space allotted by Government. The eligible units will be entitled to get 1O0 per cent reimbursement of Conversion Fee and Registration Fee for the first transaction.
  8. GST Reimbursement: Reimbursement of 100 per cent State component of GST (SGST) for a period of five years in Bhubaneswar Development Authority (BDA) area and for a period of seven years in non-BDA area subject to 100 per cent of their Fixed Capital Investment (FCl).
  9. Human Capital lnvestment Subsidy: Recruitment assistance shall be provided at Rs 10,000 per newly recruited employee at executive level who is domicile of Odisha with a maximum limit of Rs 10 lakh per unit for a period of three years. Additional Rs 1,000 per employing women, SC/ST and Physically Disabled employees. Hundred per cent reimbursement of the expenditure incurred towards contribution for ESI and EPF of employees of lT units who are domicile of Odisha up to Rs 5 crore per annum for a period of three years. For investment in non-BDA area, reimbursement would be up to Rs 7 crore.
  10. lnternet Connectivity Assistance: Reimbursement at 50 per cent of lnternet bandwidth charges per annum subject to a maximum of Rs 5 lakh per annum for a period of two years.
  11. Biju lnnovation Lab: Assistance of Rs 20 lakh for setting up of and maintenance of Biju lnnovation Lab for five years will be provided.
  12. lncentives for Centre of Excellence (CoE): ln order to promote CoE in engineering colleges and educational institutes in Odisha, various incentives will be provided in the form of marketing assistance, Quality Certification assistance, Patent Registration assistance, Bandwidth Connectivity assistance, lnterest Subsidy and Investment Subsidy etc.
  13. Emerging Technologies lncentive: Companies/Units investing in the area of Artificial lntelligence (Al), Cyber Security, Extended Reality (XR), Automation, Blockchain, Big Data, Cloud Computing, lnternet of Things (loT), Machine Learning (ML), Clean-tech, Edu-tech, Agri-Tech, Health-tech and other emerging technologies shall be eligible for additional incentives.


The Odisha lT Policy 2022 shall be in operation for five years from the date of its Gazette Notification or till it is substituted by another Policy, the communique clarified.

Also Read

Comments are closed.