BHUBANESWAR: The proposed new industrial policy (IPR 2022) offers a slew of sops like state GST holiday for five years and electricity duty exemption for seven years, subsidy on fresh capital investments, employment and land to transform Odisha into a modern and advanced industrial state.
The state government plans to unveil the policy during Make-in-Odisha 2022. The IPR-2015 that was loaded with fiscal and non-fiscal incentives received a lacklustre response from investors as other states with more sops were better positioned. The draft policy has proposed a capital grant of 50 per cent of the cost of infrastructure subject to maximum Rs 25 crore for development of private industrial park and up to Rs 10 crore for innovation and R&D. While the Industrial Infrastructure Development Fund (IIDF) will be enhanced to Rs 500 crore to develop quality external and internal infrastructure, the government will set up a new fund - Industrial Infrastructure Maintenance Fund (IIMF) with an outlay of Rs 500 crore for upgradation of infrastructure.
In order to fast-track the setting up of new industrial parks by utilising private land, a new land pooling scheme will be formulated and launched by the state government. As per the scheme, landowners would contribute land to IDCO to form a land pool. “IDCO will develop the land pool into a modern industrial park with required infrastructure. The landowners shall be entitled to retain leasing rights for a specified portion of the developed land and the balance of developed land would be leased out by IDCO,” the draft policy stated.
In a bid to enable port-based industrial growth, the state government will develop large industrial regions near Paradip, Dhamra, Gopalpur, Subarnarekha and other ports through IDCO as well as private agencies. At least one MSME park will be set up in each district. New industrial units in thrust sectors, that create direct employment for not less than 1,000 locals, will be eligible for land at a special subsidised rate of 50 per cent of the concessional industrial rate (except for areas covered under BDA and CDA). IDCO will also provide land to companies for setting up offices at a concessional rate. Eligible industrial units in the priority sector will be provided a 20 per cent capital investment subsidy on actual investment in plant and machinery which will be disbursed in a phased manner over a period of five years. The subsidy is applicable for the first three years for MSMEs and five years for large industries.
In the thrust sector, units will be provided a 30 per cent capital investment subsidy for a period of five years. The units can claim 6 per cent of the overall eligible investment made on an annual basis against four per cent in case of priority sector. Electricity is exempted for a period of 10 years for thrust sectors. For green hydrogen and green ammonia manufacturing units, power duty is exempted for a period of 20 years along with reimbursement of power tariff of Rs 3 per unit for 20 years. It has been decided that IPICOL will set up satellite offices in identified locations in India and abroad, preferably through partnership with suitable agencies to further improve the coverage of investor outreach. It will also design and implement a ‘project investment tracker’ to monitor the progress, triggering necessary action by the relevant officials as required.The policy is expected to provide a major fillip to industrial development and create new employment avenues, enabling overall socio-economic development of the state.