Bhubaneswar: The State Cabinet headed by Chief Minister Naveen Patnaik on Tuesday approved a compressive Electronics Policy to attract investment in the sector for which Odisha has a vast potential.
Promotion of electronics & electronics manufacturing sector in the State is the focus area of the State Government. To stimulate the Electronics System Design and Manufacturing (ESDM) industry in the State, the Government has come up with the Electronics Policy 2021, a senior official said.
Odisha Electronics Policy 2021 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, he said.
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.
New investment and expansion can avail production Linked Incentive(PLI) @ 1 per cent of annual turnover for 5 years starting from year of commencement of production, on first come first serve basis for first 10 investments.
As per the policy, Fixed Capital Investment Subsidy (FCI) ranging from Rs.10 crores to Rs. 250 crores will be provided to ESDM Units on the basis of their fixed capital investment.
For power, the State Government has provisioned exemption of Electricity Duty and Electrical Inspection Fees for a period of 5 years. The eligible ESDM units would be provided subsidy on power bills for a period of 5 years at 30 per cent limited to Rs. 50 lakhs per unit.
Similarly, 100 per cent exemption of stamp duty and 50 per cent exemption on second transaction will be provided to such investors. There will be reimbursement of 100 per cent of land conversion charges payable for converting land from agricultural use to industrial use.
To encourage women entrepreneurs and persons with Disabilities, the State will provide an additional subsidy of 10 per cent of the investment subsidy limited to Rs. 1 crore to the entrepreneurs who are women, SC/ST or Persons with Disabilities. Provision of additional 25 per cent subsidy on lease rentals up to Rs. 10 lakhs per annum for 5 years will also be provided to such entrepreneurs.
The Policy has also specific 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 and Startups.
The State Government will also provide 25 per cent reimbursement on cleaner/greener production measures limited to Rs. 20 lakh per unit on the basis of certification by accredited certifying agencies.
Under Human Capital Investment Subsidy, the Policy says recruitment assistance will 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, it said.
Eligible units will also be entitled to get interest subsidy for timely payment @5 per cent per annum on term loan availed from Public Financial Institutions/Banks for a period of 6 years from the date of commencement of production.
Reimbursement of 100 per cent 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 per cent of the Fixed Capital Investment will be provided to eligible investors.
As per the Policy, 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 the E&IT Department will be responsible for day-to-day monitoring of various activities under this policy.
This Policy will remain in force until March, 2026 or till substituted by another scheme.