Context & Objective
The Industrial Policy Resolution 2022 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.
Vision and Mission of IPR-2022
Vision: To transform Odisha into a modern and advanced industrial state by offering the investors outstanding opportunities for sustainable business growth and to foster holistic socio-economic development of the people.
Mission: To maximize Odisha’s economic potential by leveraging its natural and human resource advantages, aided by modern technology, enabling the creation of a sustainable industrial ecosystem for inclusive growth.
The following sectors have been identified as Priority Sectors in the Policy:
- Ancillary and Downstream in metal sector
- Agro Processing
- Cold Storage and Cold-chain infrastructure
- Food and Sea-food Processing
- Gemstone - Cutting and Polishing; Granite – Cutting and Polishing
- Handicraft, Handloom, Coir based products
- Information Technology (IT), IT Enabled Services (ITES), and Datacenters
- Rare Earth Minerals based value-added products
- Specialty Steel and its Products
- Shipbuilding, Ship-repair, and construction of other mechanized floating vessels
- Tourism and Hospitality
- Special Category of Industries as mentioned below
- Industrial units in Priority Sector list, dealt under the State Financial Corporation Act 1951 or Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 or under the provisions of Insolvency and Bankruptcy Code (IBC) of India, 2016 or any other applicable provisions of law and thereafter sold to a new entity and certified eligible as new industrial unit for the purpose of this IPR
- Migrated industrial units in the priority sectors will be treated as new industrial units
- Non-mineral based new industrial units located in the districts of Bolangir, Gajapati, Kalahandi, Kandhamal, Koraput, Malkangiri, Mayurbhanj, Nabarangpur, Nuapada, Rayagada, Subarnapur, Boudh, Nayagarh, Deogarh, Kendrapada with a minimum investment of Rs 5 crores in Plant & Machinery and providing direct employment to not less than 20 state domiciled people
- Non-mineral based new manufacturing industrial units providing direct employment to not less than 200 state domiciled people
- Any industry other than mineral extraction and mineral based industries which exports more than 50% of its total turnover, duly certified by the Director of Export Promotion and Marketing, Odisha
- Industrial units utilizing notified forest produce as primary raw material
- Dormitories and hostels for workers
The following sectors have been identified as Thrust Sectors in the Policy:
- Aerospace and Defense
- Automobiles and Auto-components
- Biotechnology, Pharmaceuticals, Bulk Drug, and Medical Equipment
- Chemicals and Petrochemicals
- Electronics System Design and Manufacturing (ESDM)
- Green Energy Equipment
- Green Hydrogen and Green Ammonia
- Manufacturing in Aviation and Maintenance, Repair & Overhaul (MRO) facilities
- Mechanical and Electrical Capital Goods
- Telecommunication Equipment
- Textiles, Technical Textiles, Apparel, Wearables, and Luggage
- White Goods and Components
- Special Category of Industries as mentioned below:
- Non-mineral based new industrial units in the notified areas in the Biju Economic Corridor
- Non-mineral based new industrial units providing direct employment to not less than 1000 state-domiciled people
- Migrated industrial units in the thrust sectors will be treated as new industrial units.
- Industrial units in Thrust Sector list, dealt under the State Financial Corporation Act 1951 or Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or under the provisions of Insolvency and Bankruptcy Code of India, 2016 or any other applicable provisions of law and thereafter sold to a new entity and certified eligible as new industrial unit for the purpose of this IPR.
Ease of Doing Business
Key Highlights :
- IPICOL, RICs, and DICs will be further strengthened by way of improvements in infrastructure, manpower, and financial support, to enable them to discharge additional functions of investment facilitation.
- IPICOL shall induct Sectoral Experts in thrust and priority sectors to provide technical guidance to investors and government departments.
- IPICOL shall assign a “Nodal Officer” to provide handholding support to investors.
- The scope of work of DIPA shall be expanded to facilitate investments during the complete life cycle.
- For select high-value investments, a project-specific “Task Force” shall be constituted to steer the investments and monitor the project progress, providing necessary support for the successful completion of the projects in a timely manner.
- The Government shall rigorously implement the “Industry Care” mechanism, ensuring that all grievances/issues raised by industries about setting up and operating in the State are resolved promptly.
- The State Level Facilitation Committee (SLFC) shall be strengthened further by the involvement of representatives from all the concerned departments.
- Investors (for projects more than Rs 50 crore) can use an online portal to raise major concerns to the State Level Project Monitoring Group (SPMG), chaired by the Chief Secretary for quick resolution. IPICOL will be the technical secretariat for SPMG.
- The state shall endeavor to eliminate the physical interface between the approving departments and the industry, except in case of specific exceptions.
| Incentive Name
|| Incentive Particulars
| Land Incentives
- IDCO will allocate developed land in industrial areas at concessional industrial rates
- Units in Priority & Thrust Sectors will be granted 100% exemption from payment of premium on land registration
- New industrial units in the Thrust Sectors, creating direct employment of more than 1000 state-domiciled people, shall be eligible for land at 50% of the concessional industrial rate (except BDA and CDA)
- Eligible Companies having existing investments or making new investments of more than INR 5000cr or providing direct employment to >500 people in the State, shall be provided land for setting up offices in Odisha at a concessional industrial land rate.
| Stamp Duty Exemption
- No stamp duty will be required to be paid in respect of the land allotted by the Government, IDCO, or Private Industrial Estate Developers to the industrial units
| Exemption on Electricity Duty
- New industrial units in Priority and Thrust Sectors will be 100% exempt from Electricity Duty for 7 and 10 years respectively from the date of commencement of commercial production.
- Industrial units in the Priority and Thrust Sectors shall be eligible for 100% exemption/reimbursement of cross-subsidy & additional surcharges and state transmission charges on renewable energy procured from state-based renewable energy plants / GRIDCO for 7 and 10 years respectively from the date of procurement of renewable energy for commercial production in the state.
For Green Hydrogen and Green Ammonia manufacturing units,
- 100% exemption from payment of Electricity Duty for 20 years from the date of commencement of commercial production
- For renewable energy consumed, cross subsidy surcharge & additional surcharges, and state transmission charges will be exempted/reimbursed for 20 years from the date of commencement of commercial production
| Power Incentives
- New industrial units in Priority and Thrust Sectors shall be provided reimbursement of Power Tariff of Rs. 2/unit for a period of 7 and 10 years respectively from the date of commencement of commercial production.
- For Green Hydrogen and Green Ammonia manufacturing units, reimbursement of Power Tariff of Rs. 3.00 per unit consumed and purchased from local DISCOMs / GRIDCO for 20 years from the date of commencement of commercial production
| Incentive for Fixed Capital Investment
- 20 % (Priority Sector) or 30% (Thrust Sector) capital investment subsidy on actual investment in plant & machinery (excluding the cost of land and building) without any upper limit disbursed over 5 years from the date of commencement of commercial production.
| State Goods and Services Tax (SGST) reimbursement
- 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, provided that the SGST reimbursement shall be applicable only to the net tax paid towards the state component of GST, after the adjustment of an input tax credit against output tax liability.
- For units in Biju Economic Corridor, the overall limit is 300% of the cost of plant and machinery
| Employment Subsidy
- New industrial units in the Priority and Thrust Sectors shall be eligible for 100% reimbursement of the employer’s contribution towards ESI and EPF Scheme for a period of 5 and 7 years respectively from the date of commencement of commercial production for skilled and semi-skilled state domicile workers.
| Environment-Friendly Infrastructure Incentives
- For the new & existing industrial units in Priority and Thrust sectors, a subsidy of 25% of the investment in new plant & machinery and the cost of new technical civil works will be provided for the following green measures up to the maximum total limit of Rs. 10 crores per industrial unit: Green Buildings, Waste-water Treatment Facilities, Effluent Treatment Plant and Deep-sea discharge facility
- New and Existing Industries in Thrust and Priority Sectors practicing at least 50% waste-water recovery through Zero Liquid Discharge (ZLD) by setting up of new facilities as certified by Odisha State Pollution Control Board (OSPCB) shall be provided up to 50% of capital subsidy on cost of relevant equipment up to a maximum of Rs. 10 crore per industrial unit.
| Special Incentives for Captive Renewable Energy Plants
- 30% capital investment subsidy for plant and machinery including technical civil works, transmission lines and systems in a phased manner
- 100% exemption of Electricity Duty for 20 years from the date of consumption of renewable energy for commercial operations in the state.
- 100% exemption / reimbursement of state transmission charges for 20 years from the date of consumption of renewable energy for commercial operations in the state.
- Priority allocation of site(s) for renewable energy generating plant(s) under the categories as mentioned above.
- Provision of long-term lease of water reservoir surface area for floating solar power plant at a total premium of Rs.1 lakh/acre.
- Power Banking shall be allowed within the state on a monthly basis subject to regulation by Odisha Electricity Regulatory Commission (OERC)
| Incentive for Private Industrial Parks
- Capital grant limited to 50% of the cost of industrial infrastructure subject to maximum of Rs. 25 crore per park or cluster for development of quality industrial infrastructure to industrial parks and clusters promoted by private sector developers or industry associations or user units forming an SPV with a minimum land area of 100 acres
| Innovation and R&D
- Eligible R&D investments in the identified Priority and Thrust Sectors would be eligible for 50% assistance on investments subject to a maximum of Rs. 10 crore.
|| Investment Facilitation
|| Land @ Concessional rates
|| Priority Sector Incentives
|| Thrust Sector Incentives
| All other Sectors
N.B: The incentives may be availed subject to fulfillment of the eligibility criteria; general and specific provisions for the respective incentives as mentioned in the IPR 2022
Investments in the ‘All other sectors’ category will not be eligible for financial incentives specified under this IPR, except those specifically prescribed, but can avail allotment of land at the concessional industrial rate in the state and will be provided necessary investment facilitation.
Investments in Negative Sectors shall neither be eligible for financial incentives specified under IPR-2022 nor for allotment of land at concessional industrial rates in the State, but shall be eligible for investment facilitation, allotment of land under normal rules at benchmark value, and recommendations to the financial institutions for term loan and working capital and for recommendation, if necessary, to the Power Distribution Companies.