Orissa

General Information

Infrastructure

Industrial Policy

The main thrust of the new Industrial Policy 1996 is on creating an environment conducive to the smooth setting up and successful functioning of industries. The prime objective is to harness Orissa's vast natural resources and potential for accelerated industrial growth consistent with the protection of the environment. The policy emphasis for attracting and facilitating large investment in infrastructure and industries both from inside the country and abroad. For the purpose of incentives, depending upon industrial development of different area of state, the state has been grouped into three zones.

Zone - A : Anandpur, Athamallik, Balliguda, Bamanghati, Bhawanipatna, Birmaharajpur,Bonai, Boudh, Deogarh, Dharamgarh, Gunupur, Hindol, Kamakhyanagar, Kaptipada,Khandmals, Kuchinda, Malkangiri, Nawapara, Niligiri, Nowrangpur, Padampur,Pallahara, Panchpir, Paralakhemundi, Patnagarh, Rairakhol and Sonepur Sub-divisions.
Zone - B: Athagarh, Banki, Baripada, Bhanjanagar, Bhadrak, Bolangir, Champua,Lagatsinghpur, Leypore, Kendrapara, Keonjhar, Khurda, Koraput, Nayagarh,Puri, Sundargarh and Titlagarh sub-divisions.
Zone - C: Angul, Balasore, Bargarh, Berhampur, Bhubaneswar, Chhatrapur, Cuttack,Dhenkanal, Jajpur, Jharsuguda, Panposh, Rayagada, Sambalpur and Talcher Sub-divisions.

Incentives

20% capital investment subsidy, up to Rs. 2 million, for new industrial units in Zone-A

15% capital investment subsidy, up to Rs. 1.5 million, for new industrial units in Zone-B

10% capital investment subsidy, up to Rs. 1 million, for new industrial units in zone-B

Capital investment subsidy of 10% up to Rs. 1million, on energy conservation equipment

All new units will be eligible for exemption/deferment of sales tax up to 100% of fixed capital investment for 7 years (Zone-A), 6 years (Zone-B), 5 years (Zone-C).

Sick industrial units may be given by the Government any of the incentives/facilities applicable to new industrial units.

Octroi exemption on machinery and equipment for setting up new units

New industrial units with contract demand up to 500 KVA will be exempted from payment of electricity duty for a period of 5 years from the date of power supply

New and existing industrial units will be allowed capital investment subsidy of 10%, subject to a maximum of Rs.1 million on energy conservation equipment and machinery, purchased on the basis of an energy audit report and plan prepared by an approved consultant and installed in the industrial unit.

A power plant generating power from non-conventional sources, set up after the effective date, shall be deemed to be a new industrial unit and will be entitled to all the incentives under this policy. These plants will not be liable to pay electricity duty.

Allotment of government land for industrial projects at pre-determined rates

Stamp duty exemption for units transferred to a new owner/management on recommendation of State Inter-Institutional Committee or State Level Nodal Committee.

Electronics/Telecommunication (hardware and software) industrial units will be eligible for incentives applicable to Zone-A irrespective of their actual location.

In appropriate cases, venture capital for technical entrepreneurs (belonging to electronics and computer disciplines) up to 50% of the equity requirements, subject to a limit of Rs.2.5 million (either singly or jointly) and equity participation for other categories of entrepreneurs up to 25% subject to a limit of Rs.2.5 million will be provided. This facility will be available for a maximum period of five years with effect from the effective date.

State identified priority sectors

Bio-Technology, Electronics and Software, Leather, Mineral-Based Industries, Power, Seed Production, Export-Oriented Industry, Tourism, Petroleum Refinery & Petro-Chemicals, Gemstones, Automobile and Automobile Components.

Contact

[Andhra Pradesh] [Assam] [Bihar] [Delhi] [Goa] [Gujarat] [Haryana] [Himachal Pradesh] [Jammu & Kashmir] [Karnataka] [Kerala] [Madhya Pradesh] [Maharashtra] [Orissa] [Punjab] [Rajasthan] [Tamil Nadu] [Uttar Pradesh] [West Bengal]