The Industrial policy of 2015 was full of both fiscal and non-fiscal incentives. The other states were in a better position to pull the new investors, especially in the non-mineral sectors. Odisha aimed to be among the top three states in ease of business work. Odisha came down four places to end at the 11th slot as per the latest rankings of 2018. Despite improving its score in compliance with the Business Reform Action Plan, and earning the title of leader, it lost to the other states in investor perception.
To improve its image, Odisha plans to bring in a new IPR that offers investors sops like SGST (State Goods & Services Tax) holiday and five-year exemption from electricity duty. It is also expected that the subsidy on fresh capital investments will be sweetened by existing and deserving investors.
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The industrial policy proposed to foresee industrial parks for the focus sectors and formulating industrial corridors for setting up small & medium firms across the state. A suitable interest subvention scheme is to be launched by the government to extend the credit at adjustable rates to the appropriate MSMEs (micro, small & medium enterprises).
The state government is working to extend the initiatives that were announced under VAT (Value Added Tax) after the jump of Goods & Services Tax (GST). In the growing sectors like textiles & apparel, ancillary & downstream industries, electronics manufacturing & information technology, chemicals & plastics, food processing and petroleum, the investors are looking for adjustable sops for setting up their facilities in Odisha.
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To meet the requirement of the investors, the state government has been working on sector-specific policies. Various investor-friendly apps got rolled out by the industries department and to make it more effective a definitive portal was created namely GOSWIFT (Government of Odisha Single Window Investor Facilitation & Tracking). It tracks down the life cycle of the investments.
The state has been working for the past four years, to outreach its efforts. In 2016 a biennial investor conclave was held that pulled Rs 2.03 trillion worth of investment intents towards the state. The second event took place in November 2018, which was grander than the first one, where the different sector investors pledged Rs 4.19 trillion for Odisha.
Industrial area in Odisha
Located to NH5 in between the towns of Berhampur and Chhatrapur, the Gopalpur industrial area has shown some tremendous growth in the years. The investment attraction here has also proved out to increase. Let’s take an example of Tata Steel which attracted INR 2500 Cr investment. Spread over thousands of acres of the sez area, Tata Steel Sez Gopalpur has brought in 7 projects eyes within this investment amount and approx. 3000 potential employment has also been reported to generate considering this opportunity. Four units have already been functional and for the approval exists in line.
With consideration of all such investment possibilities and the generation of employment, there is enormous growth potential. Even foreign investors are being attracted like never before. By all means, there is no doubt that the Industrial area in Odisha can be a new hub for the factories, investments and growth at large.