Odisha is uniquely positioned to attract Pharmaceutical investments. The state has enjoyed 2 decades of stable and transparent governance which has enabled a higher the national average GSDP growth. Over the past few years, Odisha has also emerged as the skill capital of India with presence of globally recognised institutes of Higher Learning & Research including IIT, IIM, IIIT, NIT, AIIMS, KIIT, XIMB. The state is one of the first to have a dedicated Skill Development Authority, which develops customised training programs for workers based on Industry's requirement. Finally, the State provides one of the most competitive cost of doing business with amongst the lowest land and utility charges in the country backed by an enabling doing business framework.
The State has identified Pharmaceutical sector as one of the priority sectors. Keeping this in consideration, the State has also promulgated an exclusive Pharmaceutical Policy 2016, providing competitive incentives to units setting up in the state. Odisha has a strong logistics base for export-import through Paradip & Dhamra ports and excellent connectivity to the hinterland markets in the country.
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
Capital Subsidy for Plant and Machinery - 10% of investment in plant and machinery:
Minimum investment of INR 20 crores in a forward district with employment for 80 workers and INR 10 crores in backward district with employment of 40 workers with maximum cap of INR 50 crores depending on investment and employment range
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
Pharmaceutical Clusters:
50% of the infrastructure cost as grant for clusters up to INR 10 crore per park/cluster
50% up to INR 5 crore for upgradation of existing park/cluster
Additional environmental protection infrastructure subsidy of INR2 crore or 50% of cost of such common facilities for adopting zero effluent/waste water discharge facilities (Common Effluent Treatment Plant, Incinerator etc.) whichever is less
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
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.
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
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
100% Exemption:
For a contract demand of 5 MVA for 5 years
Employment Generation Incentive
@ 100% Reimbursement of Employment Cost Subsidy (ESI/ESF):
For 3 years for displaced employees and for 5 years for disabled employees