Odisha aims fresh investment, approves new IT Policy

Odisha government Tuesday announced its new IT Policy, 2022, to transform the state into a leading destination of investment for Information Technology and propel employment.

The Assembly was informed of the new IT Policy by Parliamentary Affairs Minister Niranjan Pujari after the state cabinet meeting, presided over by Chief Minister Naveen Patnaik, approved it. The policy is aimed at generating employment and investment in the IT sector. It will be in operation for five years from the date of its gazette notification or till it is substituted by another policy, he said.

The policy has been drafted by the electronics and information technology department and envisions transforming Odisha into a leading destination of investment for Information Technology in the country. It also aims to position the state prominently on the global map as a preferred IT outsourcing destination which will propel employment opportunities and inclusive growth, Pujari said.

The policy is prepared in consonance with the state's 5T initiative for good governance involving teamwork, technology, transparency, time, and transformation, he added.

In the new IT policy, provisions have been made for specific incentives for lT parks. Twenty-five percent of the fixed capital investment will be provided as a capital subsidy limited to Rs 20 crore, while 15 percent of the cost of developing a solar power plant, subject to a maximum of Rs 25 lakh, will be reimbursed.

"Greenfield lT parks shall be eligible for 100 percent reimbursement of stamp duty, registration fee, conversion fee," the police said. Thirty percent of fixed capital investment in buildings and infrastructure, excluding the cost of land subject to a maximum of Rs three crore, will be accorded to eligible lT units.

The eligible list units will be entitled to an interest subsidy at five percent per annum on term loans availed from recognized financial institutions and banks subject to a maximum of Rs 10 crore per year for five years from the date of commencement of commercial operation, it said.

The policy has provision for exemption of electricity duty and electrical inspection fee for five years. There will be reimbursement of electricity tariff at 30 percent for three years capped at Rs 35 lakh per unit.

The units with up to 40 employees will get subsidies on the rental of incubation space for a maximum of three years based on their incubation space. The eligible list units hiring buildings will be entitled to a subsidy of 75 percent of the actual rent paid or Rs 20 per square foot per month whichever is lower, it said.

This apart, provision is made for 100 percent exemption of stamp duty on the first transaction and 50 percent exemption on the second transaction on lease sale agreement of land or built-up space allotted by the government. The eligible units will be entitled to 100 percent reimbursement of the conversion fee and registration fee for the first transaction.

Reimbursement of 100 percent state component of GST will be provided for five years in the Bhubaneswar Development Authority (BDA) area and seven years in the non-BDA area subject to 100 percent of their fixed capital investment.

According to the new IT Policy, recruitment assistance will be provided at Rs 10,000 per newly recruited employee at the executive level who are domiciles of Odisha with a maximum limit of Rs 10 lakh per unit for three years.