Odisha Cabinet Clears Electronics Component Manufacturing Policy

The State Cabinet on Monday approved the ‘Odisha Electronics Component Manufacturing Policy 2025’, a strategic initiative aimed at transforming the state into a leading hub for electronics manufacturing. The policy, launched under the leadership of Chief Minister Mohan Charan Majhi, seeks to generate high-skilled jobs while reducing India’s reliance on imported electronic components. The policy offers a comprehensive incentive framework, fully matching the Centre’s Electronics Component Manufacturing Scheme (ECMS) support.

For the first 10 large-scale projects, investors can receive a 50% capital subsidy. Alternatively, they can choose to receive matching subsidies, turnover-linked incentives, and extra capital subsidies. Land distribution, rental aid, a ten-year electricity duty exemption, and power tariff reimbursements are all included in the package. Megaprojects that create more than 1,000 jobs or have investments above ₹500 crore are eligible for special rules that grant them tailored benefits.

The move aligns Odisha with the national “Make in India” vision by fostering a robust electronics ecosystem. The Union Cabinet had earlier cleared the ECMS in 2025 to tackle India’s overdependence on imported components despite steady growth in electronics assembly and finished goods manufacturing. The scheme focuses on strengthening domestic production of passive components such as resistors, capacitors, and inductors—key inputs for consumer electronics, automotive, and defense industries.

With this dual approach, Odisha is positioning itself as a key player in India’s self-reliance drive, boosting domestic value addition, attracting global and domestic investments, and integrating with international supply chains.

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