Odisha Electronics Policy 2021: Key Highlights
The Odisha government has approved the Odisha Electronics Policy 2021 to promote innovation and stimulate the Electronics System Design and Manufacturing (ESDM) industry in the state.
“The policy has been conceptualised to position Odisha as an attractive destination for the electronics industry by providing a congenial, industry-friendly and proactive industrial climate with class-leading infrastructure, supporting facilities and policy initiatives,” said state electronics and IT secretary Manoj Mishra.
On the economic front, the state government has incentivised the industry via Production Linked Incentive (PLI), Fixed Capital Investment Subsidy (FCI), State GST Reimbursement among other measures. In terms of welfare, Interest, Power and Land subsidy will be provided to the people by the state government.
Given below are the key highlights of the Odisha Electronics Policy 2021:
- Production Linked Incentive (PLI): Incentive of up to 1% of annual turnover can be obtained for 5 years starting from the year of commencement of production, on a first come first serve basis for the first 10 investments.
- Fixed Capital Investment Subsidy (FCI): Subsidy ranging from Rs 10 crores to Rs 250 crores will be provided to ESDM Units depending on their fixed capital investment.
- Power Incentives: Exclusion of Electricity Duty and Electrical Inspection Fees for 5 Years is implied. The eligible ESDM Units would be provided subsidy on power bill for 5 years at 30% limited to Rs. 50 Lakhs per unit.
- Land Incentives: 100% exemption on stamp duty and 50% exemption on the second transaction. Reimbursement of 100% of land conversion charges payable for converting land from agricultural use to industrial use.
- Assistance to Women Entrepreneurs and PwDs: Additional subsidy of 10% of Investment Subsidy limited to Rs. 1 Crore will be provided to women entrepreneurs, SC/ST or PWDs. Provision of an additional 25% subsidy on lease rentals up to Rs 10 lakhs per year for 5 years will be provided.
- Incentives for Local Enterprises: The Government will grant special incentives to units that employ local youths.
- Green and Self-power Generating: 25% reimbursement on cleaner/greener production measures limited to Rs 20 lakhs per unit based on certification by accredited certifying agencies.
- Human Capital Investment Subsidy: Recruitment aid of Rs 8000 will be provided to recently recruited regular employees who are domiciles of Odisha with a maximum limit of Rs 30 Lakhs for 3 years. Additional Rs 2000 will be given for employees who are Women, SC/ST or PwDs.
- State GST Reimbursement: Compensation of 100% state component of GST(i.e. SGST) paid for 5 years from the beginning of commercial production limited to 100% of the Fixed Capital Investment will be granted.