Industrial Policy Resolution 2015

Context & Objective

The Industrial Policy Resolution 2015 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.
Priority Sectors

The following sectors have been identified as Priority Sectors in the Policy:

Agro and Food Processing, Ancillary and Downstream, Automobiles and Auto-
components, Manufacturing in Aviation and Maintenance Repair & Overhaul (MRO)
facilities, Bio-technology, Gem stone cutting and polishing, Handicraft, Handloom,
Coir and Leather products, Information technology, IT enabled service and ESDM
units, Petroleum, Chemicals & Petro-chemicals, Pharmaceuticals, Plastics and
Polymers, Sea food Processing, Textile including Technical Textile & Apparel,
Tourism and Hospitality.
New Age Sectors

Government of Odisha has made amendments to the Industrial Policy Resolution

(IPR) 2015, aiming to attract industrial investments in Mega Industries in New Age
Sectors to the state.

The New Age Sectors including Electric Vehicles Manufacturing; Green Energy;
Electronics and Telecommunication equipment manufacturing; Textile, apparel,
wearables and luggage; Pharmaceuticals; White Goods and components; Capital
Goods; Aerospace and Defense have shown immense potential to contribute
towards the economic and social development of the country. While the conventional
industrial sectors will serve as a platform, the New Age Sectors are set to provide an
impetus for accelerated industrial growth in the coming years. Besides generating
revenue and creating local employment, the Mega Industries will also be
instrumental in bringing high-end technologies to the state. They will also assist in
generation of ancillary industries around them, thereby having a multiplier effect on
employment, revenue and overall growth in the state. Hence enhanced incentives
(through Amendment dated 29th November, 2021) are being made available for
investment in New Age Sectors.
Infrastructure Development Support
An exclusive Industrial
Infrastructure
Development Fund (IIDF)
Industrial Infrastructure Development Fund with an initial corpus of
Rs.100 crore for
development of quality
infrastructure
Separate policy for SEZs to
Special Economic Zones provide fiscal and non-fiscal
incentives
To be developed at
Kalinganagar in an area of
approx. 40,000 acres with
National Investment and Manufacturing Zone (NIMZ) state-of-the-art
infrastructure into a
competitive manufacturing
base
To be developed at
Jagatsinghpur and
Kendrapara districts in an
Petroleum, Chemicals and Petrochemical Investment
area of 284 sq. km. with
Region (PCPIR)
Indian Oil Company Limited
as the anchor tenant, one of
the 4 PCPIRs in the country
In addition to Dhamra and
Gopalpur ports, being
developed on PPP mode,
Ports the State Government shall
develop complimentary
infrastructure to support
port- based manufacturing
Incentives
Part A: Employment Rating Based Incentives
Category All other districts other than Category B
A
Category of
Industrially Backward Districts- Kalahandi, Nuapada, Bolangir,
Districts Category
Subarnpur, Koraput, Malkangiri, Rayagada, Nawrangpur,
B
Kandhamal, Gajapati and Mayurbhanj
Category Investment Minimum Employment
(Rs. Crore) (Number)
A1 >100 100
Category A2 >200 200
Classification A
of Industry A3 >500 400
B1 >50 75
 Category B2 >100 100
B B3 >250 200
Committed 24*7 power
Dedicated industrial feeders
Power
Reimbursement of Rs. 0.25 – 1.25 per unit for a period of 5
years-based employment and investment (Category A1-3, B1-3)
Reimbursement of training cost upto Rs. 1750 – 4000 per
person for every person trained and newly recruited for a period
Training Subsidy
of three years-based employment and investment (Category A1-
3, B1-3)
Land for Workers Hostels Land rate at 50% of the prevailing market rates of IDCO
50% of the infrastructure cost with a ceiling of Rs.10 crore per
Capital grant to support green field industrial park/cluster
Quality Infrastructure 50% of total cost with a ceiling of Rs.5 crore for up gradation
of brown field clusters.
Capital subsidy of 10% upto maximum as indicated based
on employment and investment in Auto and Auto Components,
Agro and Food Processing, Textile including Technical Textile &
Apparel, Pharmaceuticals and Plastics sectors
Capital Subsidy for Plant
and Machinery Category Max Capital Subsidy
A1/ B1 10% of investment with a max. of Rs. 10.0 Cr
A2/ B2 10% of investment with a max. of Rs. 20.0 Cr
A3/ B3 10% of investment with a max. of Rs. 50.0 Cr
Part B: Other Incentives
Land provided at subsidized IPR rates
Land Land to be available on long term lease (90 years)
Ground Rent @ 1% and Cess @ 0.75% of the land value to
be paid
25% subsidy on cost of land
Anchor Tenant Subsidy SGST Reimbursement for additional 2 years subject to the
overall limit
Priority sector Micro Small Medium Large
Incentive
#
100% up to 100 Acres 100 % 100 % 75 % up 50 %
Exemption from payment
and 50% for balance area up to 5 up to 5 to 25 up to
of premium, leviable
Acres Acres Acres 500
under OLR Act.1960
Acres
5% per annum for 5 years on term loan availed from Public
Interest Subsidy Financial Institutions / Banks
Max Limit (Rs. Lakhs) for 100 (Non-MSME 10 20 40
Interest Subsidy Industries)
100% 75% 50% 25%
100% exemption from stamp duty on Loan agreements, credit
Stamp Duty Exemption deeds, mortgages and hypothecation deeds executed by the
Industrial Units in favor of Banks or Financial Institutions
Energy (Exemption in 5 MVA for 5 years 500 KVA for 5 years
contract demand)
Reimbursement of net 100% for 7 years 75% for 5 years
SGST
100% of raw materials for 5 years
75% for 75% for 5 50% for 3 years
Micro & years
Small for 5
years and
Male
50% for
Medium
enterprises
for 3 years
Reimbursement of 100% for 5 100% for 100% for 3
Employment Cost Subsidy years in 5 years years
(ESI/ESF)* Micro &
Female Small and
3 years for
medium
enterprises
Domicile 100% for 3 years
of state
Disabled 100% for 5 years
Patent Registration 100% of the registration cost up to maximum of Rs.10 Lakhs
Renewal for consecutive two years i.e. for a period of 3 years @
Quality Certification 100% to a total maximum limit of Rs.3 Lakhs.
100% of cost of purchase of technical know- how up to Rs.1
Assistance for technical Lakh in case of indigenous technology and up to Rs.5 Lakhs in
know-how case of imported technology.
Entrepreneurship Reimbursement of 75% of course fee limited to Rs.50,000 per
Development Subsidy course
Environmental Protection 20 Lakhs or 20% of capital cost of
Infrastructure Subsidy setting ETP

Key Incentives for New Age Mega Investments:

 30% capital investment subsidy on investment made in Plant & Machinery,
disbursed over a period of 10 years with no upper ceiling
 Reimbursement of Power Tariff of INR 2.00 per unit for all power consumed
for a period of 7 years
 100% exemption from payment of electricity duty for a period of 7 years
 Reimbursement of 100% of net SGST paid for a period of 7 years, overall
limited to 200% of the cost of plant and machinery
 100% exemption of Stamp duty and land registration charges
 100% reimbursement of ESI/EPF for 5 years, for skilled and semi-skilled
workers, who are domicile of the state.
