BHUBANESWAR: In a move to position Odisha as a leader in the semiconductor and electronics ecosystem, the state cabinet chaired by CM Mohan Charan Majhi on Wednesday amended the Odisha Semiconductor Manufacturing and Fabless Policy.
The amendment is aimed at attracting more investments by making semiconductor and allied projects more viable, competitive and sustainable with broader and lucrative package of incentives.
As many as 16 significant changes in the policy including a special package for first few projects in each category, enhanced performance-linked incentives (PLI), relocation support for units shifting to Odisha, and incentives for semiconductor park developers, have been approved. The amendment also strengthened provisions for R&D and workforce skilling, which are two critical areas for long-term sustainability and innovation in the sector.
The state has already attracted strategic proposals under the earlier version of the policy, with notable approvals granted to RIR Power Electronics Ltd, SiCSem Pvt Ltd and Heterogeneous Integrated Packaging Systems Pvt Ltd. These investments focused on compound semiconductors, assembly, testing, marking and packaging (ATMP) units, and fabless design.
Senior officials said, the amendment will ensure seamless integration with existing regulatory frameworks, including the Odisha Industrial Facilitation Act and the IPR 2022. An apex committee headed by the chief secretary will oversee policy implementation and fast-track project approvals.
Minister for Electronics and IT Mukesh Mahaling said the revised policy framework is designed to catalyse investment in one of the most capital-intensive and high-technology sectors in line with India Semiconductor Mission. “The approved amendment reflects Odisha’s intent to create a globally competitive, investor-friendly semiconductor ecosystem,” he said.
The cabinet also cleared the acceptance of the single bid amounting to `290.66 crore (without tax) submitted by TCS Ltd for the IFMS 3.0.