Odisha Electronics Policy, 2021

Context & Objective

The Odisha Electronics Policy, 2021 visions development of ESDM industries in Odisha and is conceptualized to position Odisha as an attractive destination for the Electronics industry by providing class leading infrastructure and policy initiatives.

Special Focus Areas

Startups, Products and R&D/Innovation Firms, Incubation Centers in Educational Institutions & Private Sector pertaining to Electronic System Design and Manufacturing (ESDM)

Ease of Doing Business

  • IPICOL as the facilitation agency for Single Window Clearance for projects above Rs. 50 CR
  • A three-tier single window clearance mechanism to facilitate speedy implementation of industrial projects is in place
  • Projects below Rs. 50 crores, to be approved by Odisha Computer Application Centre (OCAC)
  • Provision of Self-Certification under various Labour laws
  • Provision for declaration as Public Utility Services
  • Venture Capital Fund for startup companies through a Special Purpose Vehicle

Infrastructure & Development

IT Parks/STPs Entry Tax Exemption (during construction)- for a period of 3 years 10% 0f area for Incubation Units
SEZ/ Incubation Centers
  • Separate SEZs/Incubation Centers to be setup for ESDM industries
  • A Semiconductor Characterization Lab at IIIT, Bhubaneswar to facilitate development of ESDM industry
  • Electropreneur Park at Infovalley, Bhubaneswar - a first of its kind of Incubation Centre in the Electronic Systems Design & Manufacturing (ESDM) sector in Eastern India
  • Electronic Manufacturing Cluster (EMC) set up over an area of 203 acres at Infovalley, Bhubaneswar with common facilities for the units and their workers housed there

Skill Development

  • Industry ready skills programs with focus on soft skills and communication skills
  • ESDM Academy in partnership with Industry
  • Special Incentives for Odisha Domicile professionals subject to a ceiling of INR 30 Lakhs per unit

Incentive framework

Rentals for Incubation Space
  • ESDM units (with up to 40 people) to get 60% to 80% subsidy on lease rentals (based on area) for incubation space with maximum term of 2 years.
  • The Subsidy will be applicable in all Government owned facility as well as designated ESDM Parks and Incubation Centers
Lease Rentals
  • ESDM units (minimum 40 employees and 2 years of operation) to 40% subsidy on lease rentals of built-up space for a maximum term of 2 years.
  • Additional 25% subsidy will be given if the Entrepreneur is women, SC/ST and person with the Disabilities limited to Rs.10 Lakhs per annum for 5 years
Interest Subsidy 5% per annum on term loan from Public Financial Institutions/Bank for a period of 5 years with a ceiling up to INR 10 Crores per annum.
Capital Investment Subsidy
  • Capital subsidy up to INR 250 crore (depending on the fixed capital investment)
    Fixed Capital Investment (FCI) % Subsidy Subsidy amount Max. Limit of Subsidy
    0-50 Crores 20% 0-10 Crores 10 Crores
    51-1000 Crores 10 Crores+10% of incremental FCI above 50 Crores 10.10 Crores - 105 Crores 105 Crores
    1001 Crores above 105 Crores +10% of incremental FCI above 1000 Crores 105.10 Crores - 250 Crores 250 Crores
  • Additional subsidy of 10% of Capital Investment Subsidy limited to Rs.1 crore will be provided to women, SC/ST, and Disabled Entrepreneurs
SGST Reimbursement 100% reimbursement of SGST for 5/7 years (Investment up to INR 50 Crores />INR 50 Crores)
Marketing Assistance
  • Reimbursement would be provided @50% of the actual cost incurred participating in domestic and international exhibitions/trade events
  • Companies can avail it for 2 times during the policy period while industry bodies can avail it 3 times during the policy period.
  • For Domestic level events - capped at Rs.3 lakhs per unit and for International events outside India - capped at Rs.6 lakhs per unit.
  • Exemption from electricity duty and Electrical Inspection fees for a period of 5 years
  • Energy Audit: Reimbursement would be provided to eligible ESDM units @75% of cost of energy audit subject to a cap of INR 2 Lakhs, which is lower
Additional incentives and benefits for Mega Projects Additional incentives and benefits for Mega projects above and beyond the incentives provided in this Policy can be considered on case-to-case basis
Production Linked Incentive (PLI)
  • Units can avail @1% of annual turnover starting from the year of commencement of production for 5 years subject to eligibility conditions
  • Benefit is limited to first 10 units with new investment and expansion
  • Further, the ESDM units with investments > INR 300cr, can also avail benefits under special incentives for new age mega industries under IPR Amendment IV

Incentives for ESDM Park Development

  • Land will be provided at concessional rates by IDCO as per IPR.
  • Stamp Duty - 100% stamp duty exemption on first transaction.
  • Reimbursement of Conversion Charges – Reimbursement of 100% of land conversion charges paid for converting land from agricultural use to industrial use.
  • 100% reimbursement of electricity duty for 5 years.
  • Infrastructure Development Subsidy: 25% of FCI in building & State-of-the-art infrastructure with all basic amenities such as internal roads, water, power and other common facilities for the Electronics Units housed/to be housed in the ESDM Park, excluding cost of land, limited to INR 10 Cr.
  • If Anchor Unit is developing the ESDM park, the unit will be eligible for other incentives available for individual ESDM Units over and above the incentives mentioned for ESDM Park development. ESDM Park Development incentives are limited to first 2 anchor units.