Industrial Policy Resolution 2022

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.

Priority Sectors

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
 Plastics
 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
o 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
o Migrated industrial units in the priority sectors will be treated as new industrial
units
o 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
o Non-mineral based new manufacturing industrial units providing direct
employment to not less than 200 state domiciled people
o 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
o Industrial units utilizing notified forest produce as primary raw material
o Dormitories and hostels for workers
Thrust Sectors

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:
 o Non-mineral based new industrial units in the notified areas in the Biju Economic
Corridor
o Non-mineral based new industrial units providing direct employment to not less
than 1000 state-domiciled people
o Migrated industrial units in the thrust sectors will be treated as new industrial units.
o 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.
Incentives

Incentive
Incentive Particulars
Name
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
pr

Land New industrial units in the Thrust Sectors, creating direct employment of more than
Incentives 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 No stamp duty will be required to be paid in respect of the land allotted by the
Exemption Government, IDCO, or Private Industrial Estate Developers to the industrial units

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
Exemption on of renewable energy for commercial production in the state.
Electricity Duty
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

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.
Power
Incentives
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

20 % (Priority Sector) or 30% (Thrust Sector) capital investment subsidy on actual

Incentive for
investment in plant & machinery (excluding the cost of land and building) without any
Fixed Capital
upper limit disbursed over 5 years from the date of commencement of commercial
Investment
production.
 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
State Goods plant and machinery, provided that the SGST reimbursement shall be applicable only
and Services to the net tax paid towards the state component of GST, after the adjustment of an
Tax (SGST) input tax credit against output tax liability.
reimbursement

For units in Biju Economic Corridor, the overall limit is 300% of the cost of plant
and machinery

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
Employment production for skilled and semi-skilled state domicile workers.
Subsidy

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
Environment-
Friendly
Infrastructure
Incentives
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.

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.

Special 100% exemption / reimbursement of state transmission charges for 20

Incentives for years from the date of consumption of renewable energy for commercial operations in
Captive the state.
Renewable
Energy Plants 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)

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
Incentive for infrastructure to industrial parks and clusters promoted by private sector developers or
Private industry associations or user units forming an SPV with a minimum land area of 100
Industrial acres
Parks
 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
Innovation and
crore.
R&D