BHUBANESWAR : In a bid to encourage private participation and attract a wider range of investors to Odisha’s tourism sector, the state cabinet on Friday approved the Odisha Tourism (Amendment) Policy, 2026 by raising the investment cap under capital investment subsidy (CIS) framework and reducing the eligibility threshold for expansion of existing tourism units.
The cabinet meeting presided over by Chief Minister Mohan Charan Majhi also approved a reduction in the minimum investment threshold for 3-star and above hotels and resorts from 50 keys to 10 keys. This is aimed at improving ease-of-doing business in line with the norms of the Ministry of Tourism.
Addressing mediapersons after the meeting, chief secretary Anu Garg said the amendments are expected to catalyse substantial private investment, support creation of 15,000 star-category hotel rooms by 2036 and generate lakhs of direct and indirect employment while significantly strengthening tourism-led economic growth in Odisha.
Garg said as per the amended policy, the CIS framework has been rationalised into two clear slabs to provide stronger and more predictable support to investors.
Tourism projects will be eligible for CIS at 30 per cent capped at Rs 50 crore for investments up to Rs 200 crore. The cap on CIS for investment above `200 crore will be Rs 100 crore.
The chief secretary said expansion norms for existing tourism units have also been rationalised by reducing the eligibility threshold from 50 per cent to 25 per cent of the existing capacity. The cabinet has also approved the expansion of special zones to include Gandharmardhan hills of Balangir and Bargarh districts, high-potential tourist destinations such as Hirakud, Satkosia, Similipal, Ratnagiri-Udayagiri-Lalitgiri and Bhitarkanika, in addition to the existing special zones of Chilika, Kandhamal, KBK region and Gajapati.
Tourism projects located in these special zones as well as those promoted by women, Scheduled Castes, Scheduled Tribes and differently-abled entrepreneurs will be eligible for CIS at 40 per cent subject to a ceiling of Rs 60 crore for investment up to Rs 200 crore. Similarly, the ceiling of CIS for projects exceeding Rs 200 crore has been fixed at Rs 120 crore.
Govt to support Odia cuisine
Besides, subsidies have been introduced for a range of emerging tourism segments, with museums and heritage properties eligible for capital support up to 40 per cent. Electric boats, electric caravans and art and craft theme complexes will be eligible for capital support up to 50 per cent.
The chief secretary said in addition, a dedicated Capex and Opex support framework has been introduced for promotion of authentic Odia cuisine. Odia cuisine restaurants at notified tourist destinations within Odisha, as well as outside the state in five metro cities of Mumbai, Delhi, Bengaluru, Chennai and Kolkata will be extended support. “This will strengthen Odisha’s culinary identity and expand its national and international visibility,” she said.