Industries Department, Government of Odisha

Check whether this is the right door

• IPR 2022 is for industrial units that set up or expand in Odisha. It is not a startup grant, an incubator seat or an interest subsidy.
• Startup-specific support in Odisha runs through Startup Odisha, whose site lists the Micro, Small & Medium Enterprises Department as its office. A startup that plans to manufacture in the state can look at both.

Get sector status first

• Apply for Priority or Thrust sector status before anything else. It is a two-stage process: provisional status, then the status certificate, each in the prescribed form with the checklist of documents.
• File within the prescribed time limit. A late or incomplete file risks being turned down, so use the checklist in the operational guideline.
• MSMEs file with the General Manager of the Regional or District Industries Centre. Large industries file with the Managing Director of IPICOL.

How the incentives are claimed

• There is no intake window. Most incentives start counting from the date commercial production begins, so keep production dates and investment records in order from the start.
• Each incentive has its own operational guideline. Read the one for the incentive you want before you file.
• The capital subsidy is paid in annual claims over five years, so plan for repeated filings rather than one application.
• The SGST reimbursement covers only the net State GST paid after input tax credit.
• The employment subsidy covers workers who are domiciled in Odisha.

Watch for amendments

• The policy has been amended since 2022. Stamp duty and land conversion premium terms changed in 2024 and apply from the date of that notification.
• Always read the latest text on the department's Policies and Procedures page, not an older summary, including ones on third-party sites.

The Industries Department of the Government of Odisha is the state department responsible for the all-round industrial development of Odisha. Its own description is that this generates employment, attracts investment and supports the state's economy. It works from Kharavel Bhawan in Bhubaneswar. For a founder, its main offer is the Industrial Policy Resolution 2022 (IPR 2022), a set of financial incentives for industrial units in the state's Priority and Thrust sectors.

This is not an incubator or an accelerator, and it does not run a startup programme. It is a policy and incentives department, and the incentives are written for industrial units that set up or expand in Odisha. Startup-specific support in the state runs through Startup Odisha, whose site lists the Micro, Small & Medium Enterprises Department as its office rather than this department. A startup that manufactures in Odisha can still be an eligible industrial unit under IPR 2022.

How the incentives work

IPR 2022 came into force on 1 December 2022. It applies for five years or until another policy replaces it, whichever is later. It has been amended since it was issued, and a 2024 amendment changed how some land-related incentives are paid, which is covered below.

The incentives are described for eligible units in the Priority sector and the Thrust sector, so sector status is the first step. A unit applies in two stages: first for provisional Priority or Thrust sector status, and then for the status certificate itself, in the prescribed form with the listed supporting documents and within the prescribed time limit. Most incentives then run for a fixed number of years counted from the date commercial production starts. Thrust sector units generally get longer or richer terms than Priority sector units.

There is no application window or deadline cycle. Each incentive has its own operational guideline that sets what to file and by when after production begins. The department's Policies and Procedures page lists these guidelines, and it is the place to check the current version before filing.

What the policy offers

Capital investment subsidy. Eligible new units in the Priority and Thrust sectors receive a subsidy on actual investment in plant and machinery, leaving out land and building. It is paid in phases over five years from the start of commercial production. A unit claims a share of its eligible investment each year, and the share is higher for Thrust sector units. Captive renewable energy plants have their own capital subsidy, which also covers technical civil works, transmission lines and systems.

Power incentives. New Thrust sector units are exempt from electricity duty for ten years from the start of commercial production. New units in both sectors can have their power tariff reimbursed per unit for power bought and consumed from the local distribution companies, for seven years in the Priority sector and ten years in the Thrust sector. Green hydrogen and green ammonia units have a separate, longer package of twenty years. The policy also covers reimbursement and exemption of some charges on renewable energy.

Net SGST reimbursement. New units in the Thrust and Priority sectors are reimbursed the net State GST they pay, after input tax credit is set off against output tax. The reimbursement is capped in relation to the cost of plant and machinery, and the cap is higher for non-mineral units in the notified areas of the Biju Economic Corridor.

Employment subsidy. New Priority sector units are reimbursed the employer's contribution to ESI and EPF for five years from the start of commercial production. This applies to skilled and semi-skilled workers who are domiciled in Odisha.

Land, stamp duty and conversion premium. Eligible units can get land at a concessional industrial rate, and units that create a large number of direct jobs can get a special subsidised rate, except in areas covered by the Bhubaneswar Development Authority and the Cuttack Development Authority. Under the original policy, land use conversion premium under the Orissa Land Reforms Act was exempted on an eligibility certificate, and stamp duty was waived on land allotted by the Government to IDCO and on loan deeds. The 2024 amendment changed this: stamp duty is now reimbursed, loan deeds get exemption or reimbursement, and a conversion fee paid upfront is reimbursed after commercial production. The amended terms apply from the date of the amended notification, not backwards.

Other provisions. IPR 2022 also contains a subsidy for environment-friendly measures in new plant and technical civil works, a capital grant for private industrial parks and clusters, assistance for research and development investments in the identified sectors that goes to academia and technical or scientific organisations, and a long-term lease of reservoir surface for floating solar plants.

Who can apply

Applicants are industrial units in Odisha that fall in a notified Priority or Thrust sector. The incentive terms are mostly written for new industrial units. Captive renewable energy plants set up in the state have their own provisions, and green hydrogen and green ammonia manufacturers have the longer power package. The state-domicile condition applies to the workers counted for the employment subsidy.

Who handles applications

Applications go to the department's field offices. For MSMEs, the application goes to the General Manager of the Regional Industries Centre or District Industries Centre. For large industries, it goes to the Managing Director of IPICOL. IPICOL is the state's nodal agency for facilitating larger investments, while the Regional and District Industries Centres handle the rest. The department's website also links to Invest Odisha, IDCO and OCAC under Investment in Odisha.

Contact and location

The department is at the 6th Floor, Kharavel Bhawan, Bhubaneswar 751001. Its published contact inbox is indsec.or@od.gov.in.