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Sector IT and BPM
State Odisha
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Overview

IT and ITES sector is a new industry, changing the face of knowledge economy. With the growing need for IT and hardware solutions across the globe, this sector has seen phenomenal growth in the recent past.

India is one of the major contributors to the international IT services market. The IT industry is expected to grow by 15% in the future and India will be a major software exporter. Odisha has attracted some of the largest IT companies in India. Bhubaneswar is home to the four of the largest IT companies in India TCS, Infosys, Wipro and Mahindra Satyam. The State has created state-of-the-art infrastructure facilities equipped with plug-n-play facilities and abundant power supply to ensure smooth operation of IT sector.

Odisha has developed IT specific SEZs to cater to the demand of the sector. Large IT infrastructure initiatives such as Info Park, Info valley, Infocity and IT investment regions are under development giving a fillip to the IT/ITES sector.

Recognizing the strong footprint of the IT sector the state has identified IT & ITeS as a priority sector. The presence of IT ecosystem coupled with an exclusive electronics manufacturing cluster shall establish Odisha as a major destination for further IT investments.

The state has an exclusive ICT policy providing incentives and creating a sound ecosystem to the startup movement. The IPR 2015 identifies IT and ITeS as focus sectors.

Investieren Sie Odisha

State Incentives

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  • One-Time Incentives
  • Recurring Incentives
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Land Cost Rebate

Land at subsidised rates as per the Industrial Policy 2015: 

  • Applicable for all industries

25% subsidy on cost of land:

  • Applicable for Anchor Industrial Units, i.e. for investments by lead investors in a park or cluster which would promote and further facilitate investment in the park or cluster

Exemption from payment of premium, leviable under OLR Act.1960 (Change of land-use charges):

  • 100% up to 100 acres and 50% for balance area
Fixed Capital Rebate

20% Capital Investment Subsidy:

  • On Fixed Capital Investment with a maximum limit of INR 5 crore

Capital grant to support Quality Infrastructure in Industrial parks/clusters:

  • 50% of the infrastructure cost with a ceiling of INR 10 crores per green field industrial park/cluster
  • 50% of total cost with a ceiling of INR 5 crores for up gradation of brown field clusters

For MSMEs:

@ 25% subsidy:

  • For Micro & Small up to INR 1 crore

@ 30% subsidy:

  • For Micro & Small up to INR 1.25 crores owned by SC, ST, Differently abled, women or technical entrepreneur

Additional 5%:

  • For MSMEs unit in industrially backward districts including KBK or Up to INR 10 lakhs for units engaged in recycling of E-waste, Hospital waste, Construction & demolition waste
Stamp Duty Exemption

100% Exemption:

  • With respect to land allotted by the Government to IDCO or Govt/IDCO to Private Industrial Estate Developers or when transfer of land/shed by Govt, IDCO and Private Industrial Estate developer to industrial units.
  • On Loan agreements, credit deeds, mortgages and hypothecation deeds executed by the Industrial Units in favour of Banks or Financial Institutions
Other Incentives
  • One-time reimbursement of Energy audit cost for MSMEs with maximum cap of INR 3 lakh
  • Environmental Protection Infrastructure Subsidy of 20 Lakhs or 20% of capital cost of setting ETP for MSMEs
  • 100% of the registration for Patent Registration cost up to maximum of INR 10 Lakhs
  • Quality Certification: Renewal for consecutive two years i.e. for a period of 3 years @ 100% to a total maximum limit of INR 3 Lakhs
  • Assistance for technical know-how: 100% of cost of purchase of technical know- how up to INR 1 Lakh in case of indigenous technology and up to INR 5 Lakhs in case of imported technology
  • Entrepreneurship Development Subsidy: Reimbursement of 75% of course fee limited to INR 50,000 per course

For Workers' Hostel:

  • Land rate at 50% of the prevailing market rates of IDCO for 1-3 acres of land, based on employment and investment with minimum investment of INR 100 crores in a forward district with employment for 100 workers and INR 50 crores in backward district with employment of 75 workers.

For MSMEs:

  • Seed Capital Assistance: One-time grant of 10% of term loan disbursed up to INR 15 lakhs for Micro & Small unit owned by 1st generation SC, ST, Differently abled or women entrepreneur in industrially backward districts including KBK
  • Project Report Subsidy: One-time grant of INR 50,000 or 2% of project cost, whichever lower for preparation of DPR/detailed feasibility report
  • Reimbursement of Audit Cost for Water Conservation: One-time reimbursement of 50% of audit cost up to INR 25,000
  • Assistance for raising Capital through SME exchange: One-time grant of 20% of expenditure in raising capital up to INR 10 lakh after successfully raising the equity
  • Trade Mark Assistance: 50% of expenditure up to INR 25,000
SGST Reimbursement

100% SGST reimbursement:

  • For a period of 7 years, to a maximum of 200% of cost of plant and machinery
  • For New Pioneer units for a duration of 9 years, to a maximum of 200% of cost of plant and machinery
  • For Anchor units for a duration of 9 years, to a maximum of 200% of cost of plant and machinery

This provision will be notified by government soon.

Under ICT Policy:

  • For a period of 5 years limited to 100% of the fixed capital investment
Skill Development/ Training Incentive

Reimbursement of training cost up to INR 1750 – INR 4000 per person:

  • For every person newly trained or undergoing skill upgradation for a period of three years, based on employment and investment with minimum investment of INR 100 crores in a forward district with employment for 100 workers and INR 50 crores in backward district with employment of 75 workers.

50% of skill upgradation or training for local manpower:

  • For MSMEs: Up to INR 3000 per person for maximum 10 persons in micro and 20 persons in Small and Medium enterprises. Additional INR 1000 per women trained
Interest Cost Subvention

5% per annum on term loan:

  • For a period of five years, to a maximum of INR 1 crore
  • For Micro & Small Enterprises with a ceiling of INR 10 lakhs and INR 20 lakhs respectively
Power Tariff Rebate

Reimbursement of INR 0.25 – 1.25 per unit:

  • For a period of 5 years, based on employment and investment with minimum investment of INR 100 crores in a forward district with employment for 100 workers and INR 50 crores in backward district with employment of 75 workers
Electricity Duty Rebate

Exemption from Electricity Duty:

  • 100% exemption 
Employment Generation Incentive

@ 100% Reimbursement of Employment Cost Subsidy (ESI/ESF):

  • For 3 years for displaced employees and for 5 years for disabled employees

@ 75% for male; 100% for female:

  • For Micro & small units for 5 years

@ 50% for male; 100% for female:

  • For Medium units for 3 years
Other Incentives
  • Rentals for Incubation Space: Units (with up to 40 people) to get 60% to 80% subsidy on lease rentals (based on area) for incubation space with maximum term of 2 years
  • Lease Rentals: Units (minimum 40 employees and 2 years of operation) to get 30% to 50% subsidy on lease rentals of built up space for a maximum term of 2 years

Important Links

Major Players

  • Mindtree
  • TCS
  • Infosys
  • Wipro
  • Tech Mahindra

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