The proposed new industrial policy (IPR 2022) includes a slew of incentives, including a five-year state GST holiday and a seven-year exemption from electricity duty, as well as subsidies for new capital investments, employment, and land, in order to transform Odisha into a modern and advanced industrial state.
The policy will be unveiled by the state government during Make-in-Odisha 2022. The IPR-2015, which was laden with fiscal and non-fiscal incentives, received a lukewarm reception from investors, as other states with more perks were better positioned. The draught policy proposes a capital grant of 50% of infrastructure costs up to Rs 25 crore for the development of a private industrial park and up to Rs 10 crore for innovation and R&D. While the Industrial Infrastructure Development Fund (IIDF) will be increased to Rs 500 crore in order to develop quality external and internal infrastructure, the government will establish a new fund, the Industrial Infrastructure Maintenance Fund (IIMF), with a Rs 500 crore outlay for infrastructure upgradation.
The state government will develop and launch a new land pooling scheme to expedite the establishment of new industrial parks by utilising private land. According to the plan, landowners would contribute land to IDCO to form a land pool. “IDCO will transform the land pool into a modern industrial park with all necessary infrastructure.” The draught policy stated that “the landowners shall be entitled to retain leasing rights for a specified portion of the developed land, and the balance of the developed land shall be leased out by IDCO.”
