The State Cabinet of Odisha headed by CM Naveen Patnaik has approved the Odisha IT Policy 2022 on 19 July 2022. This will likely to transform Odisha into leading destination for IT investment. This will also position the state as an attractive destination for the industry, creating employment opportunities and inclusive growth.
The policy will also position the state prominently on the global map as a preferred IT outsourcing destination generating employment opportunities and inclusive growth.
The key highlights of the policy were:
Incentive package for IT parks:
25 per cent of fixed capital investment will be provided as capital subsidy limited to Rs 20 crore. 15 per cent of the cost of developing solar power plant subject to a maximum of Rs 25 lakhs will be reimbursed. Greenfield IT Parks shall be eligible for 100 per cent reimbursement of stamp Duty/ Registration Fee/ Conversion Fee.
Capital investment subsidy:
30 per cent of fixed capital investment in buildings and infrastructure, excluding the cost of land subject to a maximum of Rs 3 crore shall be accorded to eligible IT units.
Interest Subsidy:
Eligible IT units will be entitled to get an interest subsidy at 5 per cent per annum on term loans availed from recognized financial institutions and banks, subject to a maximum of Rs 10 crore per year for a period of 5 years from the date of commencement of commercial operation.
Power Incentive:
Exemption of electricity duty and electrical inspection fee for 5 years. There will be reimbursement of electricity tariff at 30% for 3 years capped at Rs 35 lakh per unit.
Incubation space rental Subsidy:
IT units with upto 40 employees will get subsidies on the rental of Incubation space for a maximum of 3 years based on their incubation space. Reimbursement upto Rs 1,400 per seat per month for co-working space in designated IT Parks & Incubation Centers and Rs 1,000 per seat per-month in notified private IT Park/IT Space.
Lease rental Subsidy:
Eligible IT units hiring buildings on rent for operating their centers will be entitled for a subsidy of 75 per cent of the actual rent paid or Rs 20 per sq ft per month whichever is lower. An additional 25% lease rental limited to 5 lakhs per annum will be provided to women, SC/7 and disabled entrepreneurs.
Land Subsidy:
100 per cent exemption of stamp duty on first transaction and 50 per cent exemption on second transaction on lease/sale agreement of land or built-up space allotted by the government. The eligible units will be entitled to get 100% reimbursement of conversion fee and registration fee for 1st transaction.
SGST reimbursement:
Reimbursement of 100 per cent state component of GST (SGST) for 5 years in Bhubaneswar Development Authority (BDA) area and for 7 years in non-BDA area subject to 100 per cent of their Fixed Capital Investment (FCI).
HR Capital Investment Subsidy:
Recruitment assistance will be provided at Rs 10,000 per newly recruited employee at executive level who are domiciles of Odisha with a maximum limit of Rs 10 lakh per unit for 3 years. Additional Rs 1,000 per employing women, SC/ST and Physically Disabled employees.
100 per cent reimbursement of the expenditure incurred towards contribution for ESI and EPF of employees of IT units who are domicile of Odisha upto Rs 5 crore per annum for 3 years. For investment in non-BDA area, reimbursement would be upto Rs 7 Crore.
Internet Connectivity Assistance:
Reimbursement at 50 per cent of internet bandwidth charges per annum subject to a maximum of Rs 5 lakh per annum for 2 years.
Biju Innovation Lab:
Assistance of Rs 20 lakh for setting up and maintenance of Biju Innovation Lab for 5 years.
Incentives for Centre of Excellence (CoE):
In order to promote CoE in engineering colleges and educational institutes, various incentives will be provided in the form of marketing assistance, Quality Certification assistance, Patent Registration assistance, Bandwidth Connectivity assistance, Interest Subsidy and investment Subsidy etc.
Emerging Technologies Incentive:
Companies/units investing in the area of Artificial Intelligence(AI), Cyber Security, Extended Reality(XR), Automation, Blockchain, Big Data, Cloud Computing, Internet of Things (IoT), Machine Learning (ML), Clean-tech, Edu-tech, Agri-Tech, Health-tech and other emerging technologies will be eligible for additional incentive.
The Odisha IT Policy 2022 shall be in operation for 5 years from the date of its Gazette Notification or till it is substituted by another Policy.
