Odisha is one of the fastest growing states of India with vibrant industrial ecosystem and abundant natural resources. It has a strategic location on the eastern coast, which provides access to global shipping and trade routes. Major railway lines pass through it, connecting central India with the south. The State Government’s pro-business strategies coupled with socio-economic developmental policies makes Odisha a unique location for setting up of industries and manufacturing operations. Additionally, the State Government provides various fiscal and non-fiscal incentives to sustainable businesses.
Apparel and Technical Textiles has been identified by Government of Odisha as one of its Focus Sectors in IPR-2015. Being one of India’s leading Handloom and Handicraft producing states, Odisha now aims to harness its potential to develop a strong Textile sector including Apparel and Technical Textiles. The state’s vision is to create an investor-friendly industrial environment with easy access to raw material and manpower with the long-term goal of boosting employment opportunities. This would augment per capita income in the state.
In view of this, the Handlooms, Textiles and Handicrafts Department, Government of Odisha has formulated the Odisha Apparel and Technical Textiles Policy 2022. This is a natural outcome of the pro-poor and pro-industry outlook of the Government, which was first manifested in Odisha Apparel Policy-2016. Buoyed by the success of Odisha Apparel Policy-2016 and learning from the experience gained from its implementation, the current policy has been formulated.
Eligibility Criteria
The benefits under this policy shall be applicable to the industries operating in the above-mentioned sector with the following criteria:
Incentives and Provisions
| Incentive Name | Incentive Particulars |
|---|---|
| Capital Investment Subsidy |
For eligible new industrial units, 40% capital investment subsidy on actual investment made in Plant & Machinery (excluding the cost of land and building) up to maximum of INR 50 Crores, will be disbursed in a phased manner, over a period of 5 years from the date of commencement of commercial production. The subsidy will be disbursed annually, and the investor can claim 8% of the overall eligible investment made till date on an annual basis. The subsidy is applicable to the eligible investments made up to the first 6 years from the date of first capital investment made by the industrial unit. The date of commencement of commercial production should not be later than 3 years from the date of first capital investment made by the industrial unit. |
| Employment cost Subsidy | New Industrial Unit shall be eligible for receiving an incentive of INR 6000 per female worker per month and INR 5000 per male worker per month on actual employment by the Unit, for a period of five years (60 months) from the date of commencement of commercial production subject to the condition that such payment by the unit to its worker shall be Aadhar linked. |
| Market Development Initiative |
Reimbursement would be provided at 50% of the actual cost incurred for participating in domestic and international exhibitions/trade events as given below. Companies can avail it for 2 times for each category during the policy period.
|
| Environment-Friendly infrastructure incentives | Benefit as per Industrial Policy Resolution (IPR) 2022 |
| Power Tariff Reimbursement | |
| State Goods and Service Tax (SGST) reimbursement | |
| R&D Subsidy | |
| Land | |
| Stamp Duty |
Eligibility Criteria
The benefits under this policy shall be applicable to the industries operating in the above-mentioned sector with the following criteria:
Incentives and Provisions
| Incentive Name | Incentive Particulars | |||||
|---|---|---|---|---|---|---|
| Capital Investment Subsidy |
For eligible new industrial units, a 40% capital investment subsidy on actual investment made in Plant & Machinery (excluding the cost of land and building) up to a maximum of INR 50 Crores, will be disbursed in a phased manner, over a period of 5 years from the date of commencement of commercial production. The subsidy will be disbursed annually, and the investor can claim 8% of the overall eligible investment made till date on an annual basis. The subsidy is applicable to the eligible investments made up to the first 6 years from the date of the first capital investment made by the industrial unit. The date of commencement of commercial production should not be later than 3 years from the date of the first capital investment made by the industrial unit. |
|||||
| Employment cost Subsidy | New Industrial Unit shall be eligible for receiving an incentive of INR 6000 per female worker per month and INR 5000 per male worker per month on actual employment by the Unit, for a period of five years (60 months) from the date of commencement of commercial production subject to the condition that such payment by the unit to its worker shall be Aadhar linked. | |||||
| Market Development Initiative |
Reimbursement would be provided at 50% of the actual cost incurred for participating in domestic and international exhibitions/trade events as given below. Companies can avail it for 2 times for each category during the policy period.
|
|||||
| Environment-Friendly infrastructure incentives | Benefit as per Industrial Policy Resolution (IPR) 2022 | |||||
| Power Tariff Reimbursement | ||||||
| State Goods and Service Tax (SGST) reimbursement | ||||||
| R&D Subsidy | ||||||
| Land | ||||||
| Stamp Duty | ||||||
