The Odisha cabinet has approved the Industrial Policy Resolution (IPR) 2022 to attract investments to the state.
The new IPR will be applicable for five years, said an official statement issued by the government on Wednesday, adding that it was approved at the cabinet meeting chaired by chief minister Naveen Patnaik on Tuesday.
The decision assumes importance in view of the Make in Odisha Conclave (MIO) which was inaugurated on Wednesday. Under the new IPR, Odisha offers land and power at a concessional rate and provides quality infrastructure for promoting orderly and sustainable industrial growth. It has also approved a new tourism policy.
“The major objectives of the policy are to make Odisha the industrial hub of Eastern India, to promote industries in the identified thrust and priority sectors, to develop bestin-class industrial infrastructure, to create an enabling environment for start-ups and MSMEs, and to promote innovation, research & development in new areas of technology,” the release said.
Under the policy framework, industries have been classified into thrust, priority, others and negative categories. The IPR 2022 will offer best-in-class incentives for units established in the thrust and priority sectors in the state.
Under the new IPR, the major incentives are the availability of industrial land at concessional rates with 100% exemption from payment of stamp duty and land conversion charges, new industrial units in priority and thrust sectors will be provided with 100% exemption from payment of electricity duty for 7 and 10 years respectively.
Besides, the new industrial units in the priority and thrust sectors will be provided reimbursement of power tariff of Rs 2.00 per unit for 7 and 10 years respectively from the date of commencement of commercial production.
“Eligible industrial units in the thrust sector and priority sector shall be provided 30% and 20% capital investment subsidy respectively on actual investment in plant & machinery, which shall be disbursed in a phased manner... New industrial units under thrust and priority sectors shall be eligible for reimbursement of 100% of net SGST paid, overall limited to 200% of the cost of plant and machinery,” said the press release.
New industrial units in the priority and thrust sector category will be eligible for 100% reimbursement of the employer’s contribution towards ESI and EPF Scheme for 5 years and 7 years respectively from the date of commencement of commercial production for skilled and semi-skilled workers, who are domicile of the state.
New industrial infrastructure development projects that will be implemented include Odisha East Coast Economic Corridor along the National Highway 16, Biju Economic Corridor along the Biju Expressway covering the western Odisha districts.
Industries coming up in these areas will be considered under the thrust sector category and will be incentivised accordingly and Odisha East-West Economic Corridor from Khurda to Jharsuguda. As per the policy, every district shall have at least one dedicated MSME park.
“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 (Odisha Industrial Infrastructure Development Corporation) 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.
Odisha also approved “Odisha Renewable Energy Policy, 2022” envisaged adding around 11,000 Megawatt of capacity from renewable sources in the state by 2030. The state government shall provide a corpus of Rs 500 crore over 7 years for the creation of Odisha Renewable Energy Development Fund which will be utilised for the development of the RE ecosystem in the state.
Odisha has approved the New Odisha Tourism Policy2022 that aims to make investing in tourism and hospitality sector attractive for investors.