BHUBANESWAR: Odisha Cabinet on Tuesday approved its first-ever Electronics Policy for the promotion of electronics and electronics manufacturing sector in the state. Chief Secretary SC Mohapatra told media persons that the Odisha Electronics Policy 2021 has been conceptualised to position the State as an attractive destination for the electronics industry by providing a congenial, industry-friendly and proactive industrial climate with leading infrastructure, supporting facilities and policy initiatives.
The policy will significantly augment the availability of skilled manpower with a special focus on fostering a culture of research, innovation and entrepreneurship by building an ecosystem of interlinked academia-industry-professional-leaders.
The highlights of the policy include a production linked incentive at 1 per cent (pc) of annual turnover for 5 years starting from the year of commencement of production for the first 10 investments, on a first-come-first-serve basis. Besides, a fixed capital investment subsidy in the Rs 10 crore to Rs 250 crore range will be provided against fixed capital investment.
The units will be exempted from electricity duty and electrical inspection fees for a period of five years. There will be a subsidy on power bills for a period of five years at 30 pc limited to Rs 50 lakh per unit. There will be 100 pc exemption of stamp duty and 100 pc reimbursement of land conversion charges payable for converting land from agricultural use to industrial use.
Besides, there will be an additional subsidy of 10 pc on investment limited to Rs 1 crore for entrepreneurs who are women, SC/ST or persons with disabilities. Provision of an additional 25 pc subsidy on lease rentals up to Rs 10 lakh per annum for five years will also be provided.
The Electronics Policy has special incentives for units that employ local youths. Local enterprises will be eligible to get preference in public procurement as provided to the MSMEs and startups. There will also be 25 pc reimbursement on cleaner/greener production measures limited to Rs 20 lakh per unit on the basis of certification by accredited certifying agencies.
Eligible units will be entitled to interest subsidy for timely payment at 5 pc per annum on a term loan availed from public financial institutions/banks for a period of six years from the date of commencement of production. Besides, reimbursement of 100 pc State component of GST (SGST) for five years from the date of production - limited to 100 pc of the fixed capital investment - will be provided.
An apex committee chaired by the Chief Secretary will be formed to monitor the policy implementation with regard to its target and objectives. The Odisha Computer Applications Centre on behalf of the Electronics & Information Technology department will be responsible for day-to-day monitoring of various activities under this policy. The scheme will remain in force till March 31, 2026, or till substituted by another scheme.