Bhubaneswar, Nov 30 (FN Bureau) The Odisha Cabinet on Wednesday approved the Industrial Policy Resolution (IPR) 2022 to make the state the industrial hub of Eastern India and a preferred investment destination. With this new policy, the validity of Odisha’s IPR 2015 will come to an end and IPR 2022 will come into force from the date of notification and will be applicable for a period of five years, official sources said.
The IPR 2022 has been conceptualized with the prime agenda of accelerating broad-based and regionally balanced industrial growth, generating large-scale employment. The new policy, approved simultaneously with Odisha conclave 2022, which kick-started on Wednesday, will promote industries in the identified thrust and priority sectors, to develop best-in-class industrial infrastructure, and to create an enabling environment for Start-ups and MSMEs. It would also promote Innovation, Research & Development in new areas of technology. Under the policy framework, industries have been classified in Thrust, Priority, Others and Negative categories. Official sources said the IPR 2022 will offer best-in-class incentives for units established in the Thrust and Priority sectors in the state. The major incentives applicable in the new policy are the availability of industrial land at concessional rates with 100 percent exemption from payment of stamp duty and land conversion charges.
New industrial units in Priority and Thrust Sectors shall be provided with 100 percent exemption from payment of electricity duty for 7 and 10 years respectively. New industrial units in the Priority and Thrust Sectors shall be provided reimbursement of Power Tariff of Rs. 2.00 per unit for a period of 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 percent and 20 percent capital investment subsidy respectively on actual investment in plant & machinery, which shall be disbursed in a phased manner. The new industrial units under thrust and priority sectors shall be eligible for reimbursement of 100 percent of net SGST paid, overall limited to 200 percent of the cost of plant and machinery. New industrial units in the Priority and Thrust sector category shall be eligible for 100 percent reimbursement of the employer’s contribution towards ESI and EPF Scheme or a period of 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. The IPR 2022 shall give specific focus on providing quality infrastructure for promoting orderly and sustainable industrial growth in the IPR 2022.
New industrial infrastructure development projects shall be implemented including 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 incentivized accordingly. A new scheme called “Land Pooling Scheme” shall be implemented wherein land- owners would contribute land to IDCO to form a land pool. IDCO shall then develop the land pool into a modern industrial park with the required infrastructure. Every district shall have at least one dedicated MSME park. The proposed policy is expected to attract significant investments and generate employment besides generating revenue. The new investors will also be instrumental in bringing high-end technologies to the state. They will also assist in the generation of ancillary industries, thereby having a multiplier effect on secondary employment, revenue and overall growth in the state.