Odisha's new industrial policy focuses on sops for businesses

BHUBANESWAR: With focus on infrastructure development and employment generation, the Odisha government's new Industrial Policy Resolution (IPR) has provisions of incentives both fiscal and non-fiscal for eligible enterprises across the state.

The meeting of the state Cabinet presided over by Chief Minister Naveen Patnaik gave its nod to the new IPR yesterday.

"The IPR 2015 has been approved after several rounds of consultation with different administrative departments and industry associations. Stress has been laid on infrastructure development in the latest IPR. The striking feature is the grant of employment-based incentives," said chief secretary G C Pati.

IPR has identified different focus sectors for the next five years, like auto and auto components, downstream and ancillary industries, agro and food processing, IT and ESDM (electronic system design & manufacturing), tourism, civil aviation and manufacturing in aviation, pharma, handicrafts and textiles and petroleum and petro chemicals.

To promote investments in the emerging ESDM (electronics system design and manufacturing) space, the state cabinet approved a slew of incentives.

"Those investors with investment exceeding Rs 200 crore and offering employment potential of over 500 would be entitled to 25 per cent investment subsidy on capital investment subject to a ceiling of Rs 50 crore. If their project is financed by public sector banks, the state government would offer an interest subvention of five per cent," said P K Jena, secretary, IT department.

As a measure for generating employment for local youths, Pati said the state has taken a pioneering initiative to design a special package of incentives for employment intensive large industrial units in the priority sector.