Bhubaneswar, Nov 23: State Cabinet held under the chairmanship of Chief Minister, Naveen Patnaik today approved Electronics Policy, 2021.
The Odisha Electronics Policy 2021 has been formulated to stimulate the Electronics System Design and Manufacturing (ESDM) industry in the State, according to an official release.
The Policy has been conceptualized 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. These, coupled with a skilled workforce would create a favourable ecosystem for growth and development of the Electronics industry in Odisha.
This Policy aspires to promote excellence and innovation in the electronics sector and significantly augment availability of skilled manpower with a special focus on fostering a culture of research, innovation and entrepreneurship by building an ecosystem of interlinked Academia-Industry-Professional-Leaders. It also aims to give emphasis on MSME enterprises as the growth drivers of the economy.
Key highlights of the incentives in Odisha Electronics Policy 2021:
1. Production Linked Incentive (PLI): New investment and expansion can avail production Linked Incentive(PLI) @ 1% of annual turnover for 5 years starting from year of commencement of production, on first come first serve basis for first 10 investments.
2. Fixed Capital Investment Subsidy (FCI): Subsidy of range from Rs.10 crores to Rs. 250 crores will be provided to ESDM Units on the basis of their fixed capital investment.
3. Power Incentives: Exemption of Electricity Duty and Electrical Inspection Fees for a period of 5 Years. The eligible ESDM Units would be provided subsidy on power bill for a period of 5 years at 30% limited to Rs. 50 Lakhs per unit.
4. Land Incentives: 100% exemption of stamp duty and 50% exemption on second transaction. Reimbursement of 100% of land conversion charges payable for converting land from agricultural use of industrial use.
5. Assistance to Women Entrepreneurs and Person with Disabilities: Additional subsidy of 10% of Investment Subsidy limited to Rs. 1 Crore will be provided to Entrepreneurs who are Women, SC/ST or persons with Disabilities. Provision of additional 25% subsidy on lease rentals up to Rs. 10 Lakhs per Annum for 5 years will be provided.
6. Incentives for Local Enterprises: The Government will provide special incentives to units that employ local youths on their roll. Local Enterprises are eligible to get set preference in public procurement as provided to the MSMEs, Start-ups as per OGFR/Finance Department’s OM.
7. Green and Self-Power Generating: 25% reimbursement on cleaner/greener production measures limited to Rs. 20 lakhs per unit on the basis of certification by accredited certifying agencies.
8. Human Capital Investment Subsidy: Recruitment Assistance shall be provided at Rs. 8000 per newly recruited regular employee who are domiciles of Odisha with a maximum limit of Rs. 30 Lakhs for a period of 3 years. Additional Rs. 2000 will be provided for the employees who are Woman, SC/ST or person with disabilities.
9. Interest Subsidy: Eligible Units shall be entitled to interest subsidy for timely payment @5 % per annum on term loan availed from Public Financial Institutions/Banks for a period of 6 Years from the date of commencement of production.
10. State GST Reimbursement: Reimbursement of 100% State Component of GST(SGST) as per actual paid for a period for 5 Years from the date of state of commercial production limited to 100% of the Fixed Capital Investment will be provided . An Apex Committee chaired by the Chief Secretary will be formed to monitor the Policy implementation with regard to its target and objectives. The Odisha Computer Applications Centre( OCAC) on behalf of E&IT Department will be responsible for day-to-day monitoring of various activities under this policy. This scheme will remain in force until 31st March,2026 or till substituted by another scheme.