Odisha state cabinet has approved ‘IT policy 2022’ that seeks to position the state as a preferred IT outsourcing destination and boost investments and employment.
The Government of Odisha has been at the forefront in the adoption of emerging technologies in IT to drive and transform governance in the state to positively impact the lives of its citizens in consonance with the 5T principles of good governance (Teamwork, Technology, Transparency, Time, Transformation), according to an official statement released after the state cabinet meeting.
“The state is all set to realise the vision of digital democracy. The vision of this policy is to transform Odisha into a leading destination of investment for Information Technology in the country and position it prominently on the global map as a preferred IT outsourcing destination propelling employment opportunities and inclusive growth,” it said.
According to the new IT policy, the state government will provide specific incentives for IT parks. 25 per cent of fixed capital investment will be provided as a capital subsidy limited to Rs 20 crore. 15 per cent of the cost of developing a 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.
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, according to reports.
The eligible IT units will be entitled to get an interest subsidy at 5 per cent per annum on term loans availed from recognised 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.
The state government has proposed to provide an exemption of electricity duty and electrical inspection fee for 5 years. There will be reimbursement of electricity tariff at 30 per cent for 3 years capped at Rs 35 lakh per unit. IT units with up to 40 employees will get subsidies on the rental of incubation space for a maximum of 3 years based on their incubation space.
Reimbursement up to Rs. 1400 per seat per month for co-working space in designated IT Parks & Incubation Centers approved by Government and Rs 1000 per seat per month in notified private IT Park/IT Space.
Reimbursement of SGST
The government proposes to provide reimbursement of 100 per cent state component of GST (SGST) for a period of 5 years in Bhubaneswar Development Authority (BDA) Area and for a period of 7 years in non-BDA Area subject to 100 per cent of their Fixed Capital Investment (FCI).
Further, recruitment assistance shall 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 a period of 3 years. An additional Rs 1000 per employing women, SC/ST and physically disabled employees will be provided.
The report further added that companies/units investing in the area of Artificial Intelligence (AI), Cybersecurity, Extended Reality (XR), Automation, Blockchain, Big Data, Cloud Computing, Internet of Things (loT), Machine Learning (ML), Clean-tech, Edu-tech, Agri-Tech, Health-tech and other emerging technologies shall be eligible for the additional incentive, as per the new IT policy.
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.