Draft

Odisha Industrial Policy - 2014

Issued by

Industries Department, Government of Odisha

Vide No. ___________
Dated XXth _____, 2014
No. Subject Page No.

1 Introduction 3
2 Objectives 4
3 Strategy 5
4 General Policy Framework 6
5 Financial and Other Support Measures 8
6 Incentives at a Glance for Priority Sector units 17
7 Focus Sectors for Next Five Years 18
8 Infrastructure Development Plan 22
9 Human Resource Development 25
10 Rehabilitation and Revival of Viable Sick Units 25
11 Labour Reforms 25
Marketing Support to Micro and Small Scale Enterprise in
12 26
Government Procurement
13 Export Promotion 27
14 Review and Monitoring 27
15 Miscellaneous 27
16 Annexure I – Definitions and Interpretations 29
Annexure II – Schedule: Undertakings Carrying on Activities
17 Recognised as Industrial Units, or Given the Status of Industrial 32
Units, for the Purpose of IPR 2014.
Annexure III - Covenants/ terms and Conditions for Allotment of
18 Land to IDCO and Lease of Land to Industrial Units by 35
Government of Odisha through IDCO

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1. INTRODUCTION

1.1. In order to promote industrial development, government introduced the Industrial

Policy Resolution (IPR) in 2001 and further enhanced in 2007. It was formulated to set
up a business climate conducive to accelerate investment in industry and
infrastructure projects, raise income, employment and economic growth in the state,
reduce regional disparities in economic development within the state and attract
domestic as well as foreign investors.

1.2. The Industrial Policy Resolution (IPR) of Odisha 2001 and 2007 has put in place a
robust policy framework for industrial promotion and investment facilitation in the
State, including creation of an enabling environment. The Industrial Policy Resolution
2014 aims at reinforcing and further expanding this process.

1.3. Odisha is one of the richest mineral states having chromite, nickel, bauxite ore and
coal deposits to the extent of 97.9%, 92.5%, 51.0%, and 33.2% respectively of the
total deposits of the country. The state has rich water resources as a natural corollary
to its geographical position.

1.4. The State considers industrial growth as a means to sustainable livelihood by

promoting higher capital formation absorbing surplus workforce. To realize these
benefits and hasten the socio-economic changes, industrial development is accorded
top priority by the State government.

1.5. Apart from the investments in traditional mineral-based sectors, the State has taken
initiatives to attract large scale investments in sectors such as agro-processing,
automobiles, auto-components, textile, apparel and ancillary and downstream. The
State will continue to give special focus to each of the priority areas for achieving
maximum value addition within the State.

1.6. The State Government has made pioneering efforts in formulating a robust
Rehabilitation & Resettlement Policy by adopting a holistic livelihood approach for
rehabilitation and resettlement of project affected families. Similarly, an appropriate
policy dispensation has been put in place for industries to contribute towards
periphery development as part of their corporate social responsibility.

1.7. IPR 2014 has been formulated after going through an elaborate iterative process
wherein all stakeholders, including Industry Associations, Sector Specific
Associations, Chambers of Commerce and Industry, Experts and Government
Departments/ Agencies concerned have been consulted and their suggestions have
been duly considered

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2. OBJECTIVES

The Industrial Policy Resolution, 2014 has been conceptualized with the aim of
making Odisha a destination of choice for the investors worldwide. The primary policy
objectives are as under:

2.1. To transform Odisha into a vibrant industrialized State

2.2. To promote sustainable and inclusive economic growth by attracting investments in a

structured manner in focus and priority sectors

2.3. To specifically promote sectors such as IT/ ITES, biotechnology, agro, marine and
food processing, tourism, textiles and apparel and automotive industries, which offer
strong linkages to employment generation and exports

2.4. To promote direct employment intensive sectors such as handicrafts, handlooms,

Khadi & village industries, coir and salt

2.5. To maximize employment generation and enhanced employability through skill

development

2.6. To encourage linkage between MSME and Large industries and make focused efforts
for development of ancillary and downstream industries

2.7. To encourage establishment of environment friendly and less polluting industries

2.8. To create an conducive business climate, enabling environment and effective

institutional structure to facilitate and encourage private sector investments

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3. STRATEGY

The new Industrial policy seeks to promote industrial development in the state to
optimally use the existing resource base of the state. The strengths of the state in
terms of physical advantages such as long coast line, strong manufacturing base,
excellent levels of support infrastructure, high base of entrepreneurial economy,
policy-driven government etc. would all be used to promote industrial development in
the state. The new policy has identified and developed a strategy which would
promote industrial development in the state in a planned manner.

3.1. To create an enabling environment for development of industrial and related social
infrastructure of international standards

3.2. To create level playing environment for all investors / private sector players by
enhancing the facilitation mechanism enabling to do their business with ease and less
transaction cost

3.3. To promote entrepreneurship development for healthy industrial development

3.4. To promote ancillary and downstream industrial parks

3.5. To provide special incentive packages for promotion of, priority and MSME sectors

3.6. To make provision of world-class infrastructural facilities for industries with active
participation of private sector/ industry

3.7. To promote skill development in order to enhance the employability of youth

especially women and also to make ready-to-employ human resource to the industry

3.8. To put in place an effective grievance redressal mechanism for speedy project
implementation and also for addressing post implementation issues

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4. GENERAL POLICY FRAMEWORK

The Industrial Policy Resolution 2014 shall pursue a multi-pronged approach for
industrial promotion by providing infrastructure support, institutional support and pre
and post-production incentives. While the IPR shall support industrialization in
general, targeted efforts shall be made to incentivise investment in priority sectors
with a view to maximizing the triple objectives of value addition, employment
generation and revenue augmentation.

4.1. Institutional Mechanism – Single Window Clearance

a) The State has an established Single Window Clearance mechanism in pursuance of

the Orissa Industries (Facilitation) Act 2004 for providing time bound clearances and
approvals. A Combined Application Form (CAF) has been created which all
departments/authorities are mandated to accept.

b) The State has put in place an effective institutional mechanism for industrial promotion
and investment facilitation at various levels. A three tier single window clearance
mechanism to facilitate speedy implementation of industrial projects is in place. At the
helm, the High Level Clearance Authority (HLCA) chaired by the Chief Minister and
State Level Single Window Clearance Authority (SLSWCA) chaired by the Chief
Secretary shall provide the overall direction and guidance.

c) IPICOL has been functioning as the State Level Nodal Agency (SLNA) and Technical
Secretariat for SLSWCA. District Level Single Window Clearance Authority
(DLSWCA) is activated in all the districts. The Regional Industries Centres (RIC) and
District Industries Centres (DIC) are effectively taking on the functions of District Level
Nodal Agency (DLNA).

d) IPICOL as the SLNA shall be further strengthened to function as an effective one stop
shop for investors.

e) Single Window Clearance mechanism will be made more effective so that most of
clearances / approvals are accorded at the time of approval by DLSWCA/ SLSWCA /
HLCA. Relevant provisions of Orissa Industries (Facilitation) Act 2004 shall be used
more effectively to improve the ease of doing business. Efforts shall be made to
accord all the required approvals within the specified time.

f) The State Level Single Window Clearance Authority (SLSWCA) and High Level
Clearance Authority (HLCA) shall review progress in implementation of the single
window services at the district and state level.

g) IPICOL shall, by end of June, 2015, establish a Comprehensive Industrial Data Bank
on medium and large scale industries with the help of a professional agency.

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 h) IPICOL shall develop and implement a web based system to facilitate time bound
clearances to investment proposals, including facility for e-filing of Common
Application Form (CAF), e-payment of processing fees and virtual single window
interface between investors and different clearance authorities by end of financial year
2014-15.

i) The Odisha Investment and Export Promotion Office (OIEPO) which is located in the
Office of the Resident Commissioner, Government of Odisha, New Delhi shall
proactively network with Embassies, Industry Associations, Chambers of Commerce
and Industry and others to promote Odisha as an attractive investment destination.
The OIEPO shall function as integral part of the SLNA for extending outreach services
to prospective investors outside the state.

It shall also facilitate investment related approvals and clearances in respect of the
industrial projects coming up in the State by liasioning with Government of India
Ministries and other agencies concerned.

j) “Team Odisha” shall mean the broad institutional framework of the Government that is
engaged in industrial facilitation and investment promotion in all key areas of
economic growth. The Chief Minister is the Captain of Team Odisha. The principal
goal of the Team is to provide necessary synergies and convergence of all
Government efforts to ensure Odisha’s position at the vanguard of economic and
social prosperity.

k) The HLCA chaired by the Chief Minister shall review implementation of the IPR-2014.
Besides giving overall direction to the industrial development efforts made by Team
Odisha, the HLCA may give specific direction (s) wherever required.

4.2. Simplification and Rationalization of Regulatory Mechanisms

a) The State shall take initiatives to review the regulatory mechanisms prevailing in the
State for making the business climate more business-friendly. Wherever necessary,
the State shall in consultation with experts and trade bodies, simplify and rationalize
the procedures.

b) The State shall compile an inventory of legal and procedural requirements of various
departments or agencies for doing business in the state.

c) The licenses, permissions, approvals etc. and procedures thereof, which have
become redundant or burdensome, shall be rationalized.

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5. FINANCIAL AND OTHER SUPPORT MEASURES

5.1. ELIGIBILITY

a) New industrial units shall be eligible for incentives provided in this policy, subject to
the general conditions and specific conditions as stipulated in this IPR.

b) Industrial units covered under earlier Industrial Policy Resolutions shall continue to
enjoy the incentives if admissible under the said policy as per eligibility.

c) Migrated Industrial units shall be eligible for incentives provided in this policy, subject
to the specific conditions stipulated in this policy.

d) Existing industrial units which take up expansion/ modernization/ diversification will be

eligible for specific incentives as specified.

However, defaulters of Banks, Development Financial Institutions, SIDBI, OSFC,

IPICOL, Government and Government controlled agencies, will be eligible for such
incentives only after they clear the dues.

e) Rehabilitated sick industrial units shall be eligible for such incentives as

recommended by State Level Inter Institutional Committee (SLIIC) within the
provisions of this IPR.

f) Transferred Units

i. A transferred unit after commencement of production shall be eligible to avail of

all or any of the incentives for the period for which the unit was eligible before
transfer but could not avail of the same due to suspension of production or
closure on account of sickness or for any other reason.
ii. An industrial unit seized under Section 29 of the State Financial Corporation Act,
1951 and thereafter sold to a new entrepreneur on sale of assets basis, shall be
treated as a new industrial unit for the purpose of this IPR. Arrears of VAT, Entry
tax, MV tax, EPF, ESI and Excise duty payable by previous owners shall not be
realizable from the transferees of the transferred units under section 29 of State
Financial Corporations Act, unless, otherwise provided for in any act enacted by
the Central or the State Government. These being public dues shall be realizable
from the previous owners under the Orissa Public Demand Recovery Act, 1962 or
any other relevant Act.
g) Industrial Units set up without financial assistance from Public Financial Institutions
and / or Banks will be required to be assessed by the appropriate agency i.e.,

i. IPICOL for Large Industrial Units;

ii. DI/DIC/RIC and OSFC jointly for Micro, Small & Medium Enterprises.

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h) Pioneer Units in each Priority Sector shall be eligible for extension of period of
incentives for an additional two years over and above the limit specified, provided the
unit has been in continuous commercial production during the normal period of
incentive.

i) Government may, if need be, notify special incentives for Pioneer Units over and above
those specified in this policy document.

5.2. GENERAL PROVISIONS

a) Implementation of various provisions covering the incentives, concessions, etc., will

be subject to the issue of detailed guidelines/ statutory notifications, wherever
necessary, in respect of each item by the concerned administrative department.

b) An industrial unit, which considers itself eligible for any incentives, shall apply in
accordance with the operational guidelines and the same shall be considered and
disposed of on merit by the competent authority.

c) Time frame for filing applications for different incentives: A unit shall become ineligible
to get incentives if it does not file its claim complete in all respects, within 6 (six)
months of its starting production or within the time limit prescribed in the Operational
Guidelines of this IPR, whichever is later

d) Determination of commencement of production: The date of commencement of

production for availing of incentives shall be determined by the DI or G.M / PM, DIC/
RIC for Micro, Small & Medium Enterprises and IPICOL for the large industrial units
basing on the totality of documentary evidence.

5.3. SPECIAL INCENTIVES FOR INVESTMENTS IN TIRBAL SUBDIVISIONS

Non-mineral based new industrial units in the non-Priority Sectors located in the Tribal
Revenue Sub-Divisions under Tribal- Sub Plan (as defined by Government of Odisha
from time to time) with minimum investment of one crore rupees in plant & machinery
and providing direct employment to minimum twenty five persons shall be treated as
deemed priority sector unit and be eligible for all incentives prescribed for the priority
sector.

INCENTIVES

5.4. LAND

a) Government (respective administrative department to which the land has been

allotted), vide notification in the gazette under terms and conditions specified in
Annexure III, will allot land to IDCO for new industrial units, existing units undertaking
expansion/ modernisation/ diversification, industrial parks, industrial estates, industrial

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 areas, industry clusters, special economic zones (SEZ), National Manufacturing and
Investment Zones (NMIZ), Petroleum, Chemicals and Petrochemicals Investment
Region (PCPIR), growth centres including infrastructure projects and any other project
as decided by Government and may take back land whenever necessary by a
notification. IDCO acting on behalf of Government of Odisha will sign a lease
agreement with the industrial unit including infrastructure projects
b) Government land may be allotted to new industrial units and existing units undertaking
expansion/ modernisation/ diversification, including infrastructure projects at the
following concessional industrial rates.
Zones Location Concessional Land Rate for New Industrial Units
(INR lakhs/ Acre)
Priority Sector Non-Priority Sectors
Units MSME Units Large Units
Zone Urban areas under the jurisdiction
Rates to be
–A of Development Authorities of
fixed by
Bhubaneswar, Cuttack, Rourkela, 2 X Rate for
Industries 1.5 X Rate for
Berhampur, Sambalpur, Paradeep, Priority sector
Department in Priority sector
Puri, Konark, Talcher and Angul Units in Zone
consultation with Units in Zone A
A
Revenue/ G.A.
Revenue Sub- Divisions of Angul,
Department
Cuttack, Jharsuguda, Talcher
Zone Revenue Sub- Divisions of Municipal/ NAC Municipal/ NAC Municipal/
–B Athagarh, Balasore, Berhampur, area: area: NAC area:
Champua, Chhatrapur, Dhenkanal, 8 Lakh/ Acre 12 Lakh/ Acre 16 Lakh/ Acre
Jagatsinghpur, Jajpur, Keonjhar,
Khurda, Panposh, Puri, Sambalpur Other than Other than Other than
Municipal/ NAC Municipal/ NAC Municipal/
Area: 3.5 lakh/ Area: 5.25 lakh/ NAC Area: 7
Acre Acre lakh/ Acre
Zone Revenue Sub- Divisions of Banki, Municipal/ NAC Municipal/ NAC Municipal/
–C Baripada, Bhadrak, Baragarh, area: area: NAC area:
Bolangir, Jeypur, Koraput, 5 Lakh/ Acre 7.5 Lakh/ Acre 10 Lakh/ Acre
Raygada, Sundergarh
Other than Other than Other than
Municipal/ NAC Municipal/ NAC Municipal/
Area: 1.75 lakh/ Area: 2.65 lakh/ NAC Area: 3.5
Acre Acre lakh/ Acre
Zone Revenue Sub- Divisions -
–D Anandpur, Athamallik, Balliguda,
Bamanghati, Bhanjanagar,
Municipal/ NAC Municipal/ NAC Municipal/
Bhawanipatana, Birmaharajpur,
area: area: NAC area:
Bonai, Boudh, Deogarh,
2.5 Lakh/ Acre 3.75 Lakh/ Acre 5 Lakh/ Acre
Dharmagarh, Gunupur, Hindol,
Kamakhyanagar, Kaptipada,
Other than Other than Other than
Kandhamala, Kendrapada,
Municipal/ NAC Municipal/ NAC Municipal/
Kuchinda, Malkangir, Nayagarh,
Area: 1 lakh/ Area: 1.5 lakh/ NAC Area: 2
Nuapada, Nilagir, Nabarangapur,
Acre Acre lakh/ Acre
Padampur, Pallahara, Panchpir,
Paralakhemundi, Patnagarha,
Rairakhol, Sonepur, Titilagarh.
Ground Rent payable by all lessee @ 1% of the benchmark valuation of land

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Note: If the unit does not complete all required documentation and commence production within two
years for Micro, Small & Medium Enterprises and three years for the rest, from the date of allotment
of land by IDCO to the unit, the unit will be charged market rate/ benchmark valuation of land
(whichever Government deems appropriate) for the said land parcel(s)

c) IDCO will aim to aggregate government land suitable for establishment of industry and
waste/ barren/ dry lands in different parts of the State to create Land Banks to meet
the land requirements of Large, Micro, Small and Medium Units.
d) IDCO may be provided with grant/ budgetary support/ utilize its own finances to
acquire private land in industrial towns/ areas and notify them as industrial areas/
create industrial parks/ estates
e) The Industrial Estates, Industrial Areas, Industrial Parks, Growth Centres etc. shall be
excluded from the tax regime of the Municipal and other local authorities for
management by the local industries’ associations, provided that the latter undertake to
maintain the infrastructure of the industrial estates either directly or through other
agencies by taking consent of IDCO and Housing and Urban Development
Department by amendment of the concerned Act, if required.
f) New Industrial units and existing industrial units taking up expansion/ modernisation/
diversification will be granted exemption from payment of premium (cost of
development of land) to IDCO as follows.
Micro & Small units in Non-Priority Sector 100 % up to 5 Acres
Medium units in Non-Priority Sector 75 % up to 25 Acres
Large units in Non-Priority Sector 50 % up to 500 Acres
Priority Sector Units 100% up to 1000 Acres

5.5. INTEREST SUBSIDY

a) New industrial unit coming under micro enterprise / small enterprise and priority sector
shall be entitled to interest subsidy @ 7% per annum on term loan availed from Public
Financial Institutions / Banks for a period of five years from the date of
commencement of production subject to a total maximum limit of
Rs 20 lakhs for Micro Enterprises;
Rs 40 lakhs for Small Enterprises; and
Rs 2 Crore for Priority Sector Units
b) Provided further that the concerned promoter(s) would not have defaulted to OSFC
/IPICOL /SIDBI /Banks /Public Financial Institutions /other Government agencies in
connection with the unit for which the incentive is sought or for any other unit/ activity
with which concerned promoter is directly or indirectly associated.

5.6. STAMP DUTY

a) No stamp duty will be required to be paid in respect of land leased by the

Government/IDCO to Private Industrial Estate Developers.

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b) In respect of lease of land / shed by Government, IDCO and Private industrial estate
developers to new industrial units and existing industrial units taking up expansion,
modernization and diversification 100% exemption on Stamp Duty shall be provided.

c) Stamp duty will be exempted in cases where reconstruction and amalgamation of

Companies is sanctioned by the Court under Section 394 of the Companies Act,
provided,
(i) it falls within the following norms, viz., where
a. at least 90% of the issued share capital of the transferee company is in the
beneficial ownership of the transferor company; or
b. the transfer takes place between a parent Company and a subsidiary
Company one of which is the beneficial owner of not less than 90% of the
issued share capital of the other; or
c. the transfer takes place between two subsidiary Companies of each of which
not less than 90% of the share capital is in the beneficial ownership of a
common parent Company; and
(ii) a certified copy of the relevant records of the Companies kept in the Office of the
Registrar of Companies is produced by the parties to the instrument to prove that
the conditions prescribed above are fulfilled.

d) Loan agreements, credit deeds, mortgages and hypothecation deeds executed by the
Industrial Units in favour of Banks or Financial Institutions shall be allowed 100%
exemption from stamp duty.

5.7. POWER

a) New industrial unit other than in Priority sector industries shall be exempted from the
payment of electricity duty up to a contract demand of 500 KVA for a period of 7 years
from the date of availing power supply for commercial production.
b) New industrial unit in the Priority Sector shall be exempted from payment of electricity
duty up to a contract demand of 5 MVA for a period of 7 years from the date of
availing power supply for commercial production.
c) Industries of seasonal nature like food processing, sugar, salt etc., will be provided
with the facility of temporary surrender of a part of their contracted demand subject to
approval of OERC.

5.8. Value Added Tax (VAT), Central Sales Tax (CST), Entry Tax and Entertainment
Tax
a) VAT Reimbursement
i. New Micro, Small & Medium Enterprises shall be eligible for reimbursement of
75% of VAT paid for a period of five (5) years from the date of commencement of
production limited to 100% of cost of plant and machinery provided that the VAT

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 reimbursement shall be applicable only to the net tax paid, after adjustment of
input tax credit against the output tax liability.
ii. New industrial units in Priority Sector shall be eligible for reimbursement of 100%
of VAT paid for a period of five (5) years from the date of commencement of
production, limited to 200% of cost of plant and machinery provided that the VAT
reimbursement shall be applicable only to the net tax paid, after adjustment of
input tax credit against the output tax liability.
iii. Existing industrial unit taking up expansion/ modernisation/ diversification as
defined in this IPR shall be eligible for reimbursement of VAT subject to the
condition that it shall be applicable only on increased production over and above
the existing installed capacity limited to 100% of cost of plant and machinery
acquired for taking up Expansion/ Modernization/ Diversification provided that the
VAT reimbursement shall be applicable only to the net tax paid, after adjustment
of input tax credit against the output tax liability.
b) Reimbursement of Entry Tax shall be available to eligible industrial units as follows:
i. New Micro & Small Enterprises and Priority Sector units shall be eligible for
100% reimbursement of Entry Tax on acquisition of plant & machinery for
setting up of industrial units till the date of commencement of production.
Existing industrial units taking up expansion/ modernisation/ diversification as
defined in this IPR shall be eligible for reimbursement of Entry Tax subject to the
condition that it shall be applicable only on additional acquisition of plant &
machinery till the date of commencement of production.
ii. New Micro and Small Enterprises and Priority Sector units shall be eligible for
100% reimbursement of Entry Tax on purchase of raw materials for a period of
five years from the date of commencement of production subject to a total
maximum ceiling of 100% of cost of plant and machinery.
Existing industrial units taking up expansion/ modernisation/ diversification as
defined in this IPR shall be eligible for reimbursement of Entry Tax on purchase
of additional raw materials for a period of five years from the date of
commencement of production subject to a total maximum ceiling of 100% of
cost of additional plant and machinery.
c) 100% reimbursement of CST on sales of finished products by the new industrial units
in Priority Sector for a period of 10 years.
d) Entertainment Tax
New Multiplex Cinema hall of at least 03 Screens with minimum capital investment of
Rs.3.00 crore & above with modern Projection system, Sound system, Air conditioner,
Generator Set, furniture & fixtures etc., where first fixed capital investment
commences after the effective date shall be eligible for 100% reimbursement of
Entertainment Tax (ET) for a period of five years starting from the date of its
commissioning. The eligibility for this incentive shall be certified by OFDC.

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5.9. EMPLOYMENT COST SUBSIDY

a) 75% reimbursement (in case of male workers) and 100% reimbursement (in case of
female workers) of expenditure on account of contribution towards ESI and EPF
Scheme for a period of 5 years for new Micro and Small units who employ skilled and
semi-skilled workers who are domicile of the state as regular employees (on company
payroll).
b) 50% reimbursement (in case of male workers) and 100% reimbursement (in case of
female workers) of expenditure on account of contribution towards ESI and EPF
Scheme for a period of 3 years for new Medium units who employ skilled and semi-
skilled workers who are domicile of the state as regular employees (on company
payroll).
c) 100% reimbursement of expenditure on account of contribution towards ESI and EPF
Scheme for a period of 3 years for new Industrial units who employ skilled and semi-
skilled workers who are domicile of the state and have been displaced due to the
establishment of the said Industrial Unit as regular employees (on company payroll).
d) 100% reimbursement of expenditure on account of contribution towards ESI and EPF
Scheme for a period of 5 years for new Industrial units who employ skilled and semi-
skilled Persons With Disabilities workers who are domicile of the state as regular
employees (on company payroll).
e) New Industrial units and Existing Industrial units taking up Expansion/ Modernization/
Diversification who wish to avail the above incentives must employ people who are
domicile of Odisha in the following ratio in vacancies in the following categories of
jobs:
Unskilled and Semiskilled: A minimum of 90% of total requirement
Skilled: A minimum of 60% of total requirement
Supervisory Managerial: A minimum of 30% of total requirement

5.10. PATENT REGISTRATION

New Industrial units and Existing Industrial units taking up Expansion/ Modernization/
Diversification will be encouraged to file patents for the products of their research and
development and State will provide assistance to entrepreneurs for Patent and Intellectual
Property Right (IPR) provisions @ 100% of the registration cost up to maximum of ten lakh
rupees (Rs 10.00 lakh).

5.11. QUALITY CERTIFICATION

New Industrial units Existing Industrial units taking up Expansion/ Modernization/

Diversification will be provided with assistance for obtaining quality certification from
nationally and internationally recognized Institutions @ hundred percent (100%) of the

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quality certification charges up to maximum of three lakh rupees (Rs.3.00 lakh) for a period
of 3 years from the date of commencement of production.

5.12. ASSISTANCE FOR TECHNICAL KNOW-HOW

New Industrial Units of Priority sector shall be eligible for reimbursement of 100% of cost of
purchase of technical know- how up to one lakh rupees in case of indigenous technology
and up to five lakh rupees in case of imported technology.

5.13. MARKETING SYNDICATION

OSIC / NSIC will act as Syndicate Leader for marketing of the products and services of
Micro & Small Enterprises of the State and will be responsible for the overall quality control
and collect service charges not exceeding 1% of sale value from the concerned units. In
order to derive the benefit of scale, major bulk orders of the Government should be routed
through OSIC so that it can act as a consortium leader for all the Micro & Small Enterprises
and organize raw material supply at reasonable rate.
5.14. FILM INDUSTRY

a) Film Industry in Odisha provides direct and indirect employment to a number of

people. In Odisha, the employment opportunities in film industry can be doubled by
improving market outreach of Odia films through appropriate incentives for film
production, film studios and multiplexes.
b) All Odia feature films produced in Odisha shall be exempted from Entertainment Tax.
c) OFDC shall formulate a scheme for extending Soft loan assistance at a nominal rate
of interest subject to maximum ceiling limit and on conditions as may be decided by
OFDC to producers of films in the State.
d) Producers of films who utilize the facilities of Kalinga Studio Limited (KSL), Film &
Television Institute of Odisha and Kalinga Prasad Colour Processing Laboratory will
be eligible to get incentives in shape of subsidy subject to the ceiling limit and terms
and conditions as may be laid down by OFDC.
5.15. INDUSTRY GRIEVANCE CELL

a) With a view to providing a timely and effective dispute/ grievance resolution

mechanism for industries, the State Government shall constitute an Industry
Grievance Cell which shall hear the grievances/ complaints of investors and make its
recommendation to the appropriate authority/ authorities for consideration and
redressal of the grievances.

b) The Industry Grievance Cell shall submit quarterly return on cases heard and
disposed to the SLSWCA and the HLCA.

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c) SLSWCA shall be the competent authority for taking final decision in all grievances
which do not involve any major policy decision. Where major policy decision is
involved, such matters shall be placed before the HLCA, which shall be the final
authority.
d) The Industry Grievance Cell shall meet once a quarter and have representation from
the following departments/ agencies/ bodies:
i. Secretary, Industries Department - Chairman
ii. Secretary, MSME Department - Member
iii. Secretary, Department of Water Resources – Member
iv. Secretary, Energy Department - Member
v. Secretaries of concerned Departments - Members
vi. Chairman cum Managing Director, IPICOL - Member
vii. Chairman cum Managing Director, IDCO – Member
viii. Secretary, State Pollution Control Board - Member
ix. Director, Industries – Convenor and Member Secretary
e) IPICOL shall hold Investors’ Connect meets every Monday in its premises which will
have representatives of al stakeholder departments involved in single window
approval. All investors will be encouraged to use this forum to register their
grievances. IPICOL will forward issues that are not possible to be addressed in this
forum to the Industry Grievance Cell.

f) Concerned Directorates of Government of Odisha shall assist the Industry Grievance

Cell by holding investor grievance forums at the Directorate level once a month to be
chaired by the respective Directors. The Directors shall submit monthly return on
cases heard and recommend course of action to the Industry Grievance Cell.

g) IPICOL will also co-ordinate with the State Level Project Monitoring Group (PMG) to
monitor implementation of various projects including approvals by the various
stakeholders and apprise the Industry Grievance Cell, SLSWCA and HLCA.

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6. INCENTIVES AT A GLANCE FOR PRIORITY SECTOR UNITS

a) Non-mineral based new industrial units located in the Tribal Revenue Sub-Divisions
under Tribal- Sub Plan (as defined by Government of Odisha from time to time) with
minimum investment of five crore rupees in plant & machinery and providing direct
employment to minimum hundred persons shall be treated as deemed priority sector
unit and be eligible for all incentives prescribed for the priority sector.
b) New Industrial units and existing industrial units in Priority Sector taking up expansion/
modernisation/ diversification will be granted 100% exemption from payment of
premium on land up to 1000 Acres.
c) In respect of transfer of land / shed by Government, IDCO and Private industrial
estate developers to new industrial units and existing industrial units in Priority Sector
taking up expansion, modernization and diversification, 100% exemption on Stamp
Duty shall be provided
d) Reimbursement of Entry Tax shall be available to eligible industrial units as follows:
i. Priority Sector units shall be eligible for 100% reimbursement of Entry Tax on
acquisition of plant & machinery for setting up of industrial units.
ii. Priority Sector units shall be eligible for 100% reimbursement of Entry Tax on
purchase of raw materials for a period of five years from the date of first Fixed
Capital Investment subject to a total maximum ceiling of 100% of fixed capital
investment.
e) 100% reimbursement of CST on sales of finished products by the new industrial units
in Priority sector for a period of 10 years.

f) New industrial units in Priority Sector shall be eligible for reimbursement of 100% of
VAT paid for a period of five (5) years from the date of commencement of production,
limited to 200% of cost of plant and machinery provided that the VAT reimbursement
shall be applicable only to the net tax paid, after adjustment of input tax credit against
the output tax liability.
g) New industrial unit coming under priority sector shall be entitled to interest subsidy @
7% per annum on term loan availed from Public Financial Institutions / Banks for a
period of five years from the date of commencement of production subject to a total
maximum limit of Rs 2 Crore
h) New industrial unit in the Priority Sector shall be exempted from payment of electricity
duty up to a contract demand of 5 MVA for a period of 7 years from the date of
availing power supply for commercial production.
i) New Industrial Units of Priority sector shall be eligible for reimbursement of 100% of
cost of purchase of technical know- how up to one lakh rupees in case of indigenous
technology and up to five lakh rupees in case of imported technology.

Page 17 of 41
7. FOCUS SECTORS FOR NEXT FIVE YEARS

7.1. Auto and Auto Components

a) Automotive industry has universally emerged as an important driver in the economy.

The State has identified Automobiles & Automotive Components as priority sector. In
to attract auto and auto component industry to Odisha, and provide impetus to the
sector in the state, the Government of Odisha intends to leverage the existing
advantages of Odisha in raw material availability, proximity to large domestic markets
in East, Central and South India to attract investments in auto industry.
b) Government of Odisha shall accord priority to the auto and auto component sector in
allotment of developed industrial land. Locations that are already earmarked by
Government for investment by SMEs with emphasis on automobile sectors are
Jagatpur and Choudwar in Cuttack and Jharsuguda.
c) In addition, the State shall conduct market assessment and feasibility for auto park
demand and identify areas and land requirements for auto parks. The State shall
identify and reserve the areas for development of auto parks in Odisha. Upon
notification of the areas, IDCO being the nodal agency for development of industrial
estates in the State shall initiate establishment of auto parks.
d) IDCO shall ensure that the auto parks will be provided with adequate connectivity to
the expressway and freight corridors connecting to Dhamra, Paradeep and other
ports.

7.2. Downstream and Ancillary Industries

a) Odisha contributes almost 10% of steel production capacity and 25% of iron ore
reserves of the country. In addition, Odisha has the highest aluminium production
capacity in India.
b) In the last decade, the State has focused on value addition in the minerals sector.
Consequently, Odisha is emerging as the mining, metal, and manufacturing hub of the
country. Investment in this sector has created vast opportunities for ancillary and
downstream industries in the small and medium sector in the State.
c) GoO has also been promoting downstream and ancillary industries as priority sectors.
The State has taken initiatives to develop a number of downstream and ancillary
parks where in MSMEs involved in Aluminium Fluoride, Calcined Petroleum Coke,
Coal Tar Pitch, Aluminium & non-ferrous casting for automobiles, slugs & circles
powder, rolled products, Hot rolled coils, Strips, Cold rolling of hot rolled products,
Cold – rolled strip, Forging products, Sheets, Home appliances and others.
d) The establishment of these parks shall enable maximum value addition with the state
and generate high employment through promotion of small scale industries.

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7.3. Agro and Food Processing

a) Odisha’s diverse agro-climatic condition features 10 agro-climatic zones and 8 major

soil types which are favourable for production of different types of crops, vegetables,
fruits and spices. It is a major contributor to the national production of vegetable and is
4th largest vegetable producing state of India. The state has a good base in the
marine and seafood segment with a coast line of over 480 KM and is 9th largest fish
producing state of India. It enjoys the location advantage of its proximity to Eastern
and Southern India and connectivity to South East Asia through its sea ports.
b) There is vast untapped potential for food processing industry in the state. In Odisha,
only a miniscule 0.7% of the total produce is processed currently. The National Food
Processing Policy strives to achieve 25% from the current national average of 6% by
2025. In line with the national benchmark, the Odisha Food Processing Policy, 2013
aims to achieve 10% of food processing by 2017 and 25% by 2025 in the state.
c) To limit the wastage and increase value to farm produce, development of food
processing enterprises and adequate post-harvest infrastructure especially storage
and transportation facilities is necessary. The State has taken various initiatives to
develop cold chain, storage, grading & sorting, segregation and packaging
infrastructure for the farm and marine produce. To facilitate growth in this sector, the
state is developing Food Parks at Malipara near Khurda and at Raygada which will
enhance the value addition within the state. .

7.4. IT and Electronics

a) The State shall continue to accord priority to the IT and ITES and ESDM Sector in
recognition of its potential for employment, exports, wealth generation and spin off on
the growth of services sector. The State will continue to facilitate development of
Special Economic Zones/IT Parks/Cyber Parks/ Software Technology Park (STP) and
Electronics Manufacturing Cluster (EMC) for Electronics, IT/ITES and Information &
Communication and ESDM industry.
b) The State has taken initiatives in the recent past for facilitating and promoting
development of IT and ITES and ESDM industries in the state including an IT
Investment Region (ITIR) including an Electronic Manufacturing Cluster (EMC)
proposed to be set up on approximately 40 sq km of land under the public-private
partnership model in the Mouza-Andharua region near Bhubaneswar and Infocity-II
which is being implemented on 600 acres of land at Janla on the outskirts of
Bhubaneswar.

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7.5. Tourism

a) Odisha offers excellent opportunities in the in-bound tourism sector. Along with
ancient monuments, beaches, religious and Buddhist tourist attractions, State also
has tourist destinations with Hot springs, water-bodies, forest and wildlife.
b) In a bid to boost tourism, the State has taken initiatives to rope in private sector to
develop hospitality infrastructure by developing branded/ luxury and budget
accommodation including hotels in strategic tourist locations in Public Private
Participation mode.
c) The State intends to create an environment for planned and sustained development of
tourism by developing and promoting tourist centres in the State. With the aim of
increasing tourist traffic, the State initiated to promote the State by regular
participation in National and International Tourism Fairs, and is developing Puri and
Chilika as Special Tourism Areas.

7.6. Civil Aviation

a) The Aviation Infrastructure in the State of Odisha has total 19 airstrips and 16
helipads, of which 12 airstrips are maintained by the State Government and 7 by other
agencies. Government of Odisha (GoO) aims to provide world class civil aviation
infrastructure facilities and efficient, safe and reliable air services to meet the
requirements of domestic and foreign trade and tourism, and to meet connectivity
requirements of remote and inaccessible areas on a priority basis.
b) The State is committed to provide support and facilitation to the industry to ensure
development of aviation sector in Odisha. In order to promote alternative and
sustainable air transportation option to travel domestically, internationally and within
the state the Government of Odisha is in the process of formulating an incentive
package for the sector.
c) The Government of Odisha is taking various initiatives to improve the existing Airport
infrastructure and flight connectivity within the state. The State plans to develop the
infrastructure for Airports/ Airstrips to the interior areas of the state. However, keeping
in mind the huge requirement of funds for the development of airport infrastructure
and the financial constraints coupled with other conflicting budgetary priorities of the
government, the government is also planning develop airports/ airstrips on its own and
in Public Private Partnership (PPP) mode.

7.7. Pharma

a) Growth potential of the Pharma Sector in the country is immense and the State shall
also develop this sector on a sustainable basis. Recognizing its potential, the State
has declared the Pharma as a priority sector in the IPR.

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b) The State has developed Cuttack-Bhubaneswar Pharmaceutical Cluster to facilitate
pharmaceutical sector. It comprises of a number of pharmaceutical units, including
manufacturers of generic drugs. The State is also facilitating the establishment of an
increasing number of educational institutions that offer B Pharma and M Pharma
degrees.

7.8. Handcrafts and Textile

a) In the state handloom and textile sector provides massive employment opportunity to
rural artisans. The state has a rich tradition of producing handloom products and
hand woven textiles due to indigenous knowledge and skill imbibed over the
generation of rural artisans. The State is known for craftsmanship in the country.
b) Recognizing the state’s unique and exquisite creations of handicraft and textile in all
over the world GoO has accorded Textile as a priority sector. The State wishes to
develop a unique and international brand appeal for the handicrafts and textile of
Odisha.

7.9. Petroleum and Petro-Chemicals

a) Petrochemical Industry has been one of the fastest growing sectors in the country and
provides large scale employment opportunity. To promote investment in Petroleum,
Chemicals & Petrochemical and the State has placed this sector in the list of priority
sectors.
b) The Government of Odisha has initiated steps to create mega integrated Petroleum,
Chemicals and Petrochemicals Investment Region (PCPIR) on 284 acres in
Jagatsinghpur and Kendrapara districts. This will be the 4th PCPIR in the country and
IOCL is an anchor tenant in this PCPIR: it is setting up 15 MMTA grass root refinery-
cum-petrochemical complex. An SPV “Paradeep Investment Region Development
Limited” has also been formed for the implementation of Infrastructure in the Region.

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8. INFRASTRUCTURE DEVELOPMENT PLAN

8.1. Public Private Partnership in Infrastructure

a) In order to sustain the current investment level and attract future investments, high
quality supporting industrial and social infrastructure is a key requirement. The future
development of the country hinges on the development of its infrastructure and
efficient delivery of its services. A large part of this investment is to come from the
private sector in the Public Private Partnership (PPP) mode as one of the preferred
routes.

b) The Odisha Public Private Partnership Policy was introduced in 2007 to supplement
limited public resources, create a more competitive environment, help improve
efficiencies and reduce costs.

c) The PPP policy of the State has created a robust institutional mechanism to
encourage private investments in infrastructure development on public private
partnership (PPP) mode. Planning and Coordination Department has been designated
as the nodal department and the Odisha Industrial Infrastructure Development
Corporation (IDCO) as the technical secretariat for promoting PPP projects.

d) The High Level Clearance Authority (HLCA) established under the chairmanship of
Chief Minister approves all infrastructure projects of over Rs. 500 Crore being
undertaken in PPP mode.

e) The State has also constituted an Empowered Committee on Infrastructure (ECI)

consisting of a group of Secretaries under the Chairmanship of the Chief Secretary,
for facilitating infrastructure development in the State under PPP.

f) The key infrastructure sectors identified under the policy include Roads, Bridges,
Airports, Industrial Parks, Bio-Technology Parks, SEZs, Solid Waste Management,
and Tourism.

8.2. Industrial Estates

a) The State recognizes that hassle-free availability of sufficient land-bank is a pre-

requisite to the development of industrial infrastructure. IDCO would act as the
designated nodal agency of the State Government for development of industrial and
related infrastructure within the State. Land banks will be created to meet the land
requirements of anchor industries which have huge employment potential. Efforts
shall be made to identify waste/barren/dry lands in different parts of the State for
creation of land banks.

b) IDCO shall undertake a comprehensive Land Zoning Plan in respect of new Industrial
Estates, Parks etc., and would also undertake planning of existing Industrial Estates

Page 22 of 41
 to the extent possible. IDCO shall bring out a comprehensive land management
regulation for industrial estates, parks, growth centres, etc. with the approval of
Government in Industries Department. Orissa Industrial Infrastructure Development
Corporation (OIIDC) Act would be broadly aligned with the changing needs in view of
the current and emerging industrial scenario in the state.

c) A time bound action plan shall be drawn up and implemented for up gradation and
maintenance of infrastructure facilities in existing Industrial Estates, Parks, IID
Centres, and Growth Centres etc. of IDCO. Suitable financial and management
models shall be developed for this purpose.

8.3. SEZs

a) The State Government recognises the potential of Special Economic Zones (SEZ) in
driving industrial/ economic growth and facilitating exports. As part of its strategy for
employment generation and export promotion, the State Government shall create an
enabling environment for establishment of the SEZs at different locations. Special
thrust shall be given to promoting IT & ITES, biotechnology, engineering, food
processing and textile & apparel industries and other priority sectors.

b) The State shall continue to support the implementation of the SEZs in a time bound
manner

c) The State Government shall issue a separate policy for SEZs proving fiscal and non-
fiscal incentives to SEZs.

8.4. NIMZ

a) The Government of India came out with the National Manufacturing Policy (NMP) in
October 2011. One of the key features of NMP is the establishment of National
Manufacturing & Investment Zones (NMIZ). The State shall take steps to declare and
develop an NMIZ. The NIMZ shall be developed as a greenfield/brownfield industrial
cluster having state-of-the-art infrastructure and offering business-friendly policies or
services. The infrastructure would range from logistics, power, skill development,
public utilities, environment protection, which are all the essential requirements of a
competitive manufacturing base.

b) The infrastructure in NIMZ shall be supported by business-friendly approval

mechanisms and operating policies. The development of NMIZ will provide attractive
opportunities to investors across the board.

8.5. PCPIR

a) The Government of Odisha has initiated steps to create mega integrated Petroleum,
Chemicals and Petrochemicals Investment Region (PCPIR) on 284 acres at

Page 23 of 41
 Jagatsinghpur and Kendrapara districts. This will be the 4th PCPIR in the country and
IOCL is an anchor tenant in this PCPIR, it is setting up 15 MMTA grass root refinery-
cum-petrochemical complex. An SPV “Paradeep Investment Region Development
Limited” has also been formed for the implementation of Infrastructure in the Region.
Setting up of PCPIR would help units in the PCPIR to get the benefits of networking
and greater efficiency through the use of common infrastructure and support services.

b) The SPV shall identify and acquire land for the purpose and identify potential tenant
industries based on the feed stock available from anchor industries. State
Government Agencies concerned and Central Institute of Plastic & Engineering
Technology (CIPET) shall also be involved in this project.

8.6. Ports

a) Apart from Dhamra, Gopalpur and Kirtania ports, which are being developed on PPP
mode, the State Government shall promote more ports and fishing harbours at
suitable locations for giving a thrust to economic activities in those regions. Special
efforts shall also be made to develop industrial areas in the hinterland of ports for
enhancing their viability and intensifying economic activities in the port area
development region.

b) Government will in due course create a special package for the port sector in the form
of a Port Policy to incentivise investment in ports in the state.

8.7. Social and Urban Infrastructure

a) Social and Urban Infrastructure is important to sustain industrial development. The

State Government intends to encourage investment in social and urban infrastructure
sectors in the Investment Regions, Hubs and Industrial Parks. There will be linkages
between industrial infrastructure and social & urban infrastructure in the vicinity of
industrial area in order to make available urban infrastructure and improve quality of
life of the people.

b) Special thrust shall be laid on promotion of high quality social infrastructure in the form
of schools, colleges, technical and professional institutions, hotels, multiplexes,
townships, commercial complexes, health-care facilities, leisure & entertainment
facilities, resorts, golf courses, tourism areas, etc.

c) Government and IDCO will issue separate notifications for the rates for allotment of
land to institutions, social infrastructure and commercial establishments across the
state.

Page 24 of 41
9. HUMAN RESOURCE DEVELOPMENT

a) The emergence of Odisha as major industrial hub has necessitated elaborate

planning for Quality Manpower and Human Resource Development.

b) The State Government shall take up the following activities to promote human
resource development:

i. Address the supply side and demand side issues of technical manpower.
ii. Address the need for introduction of new and specialized courses to match
industry requirements.
iii. Maximize industry institution linkages by encouraging industries to adopt
existing technical institutions and also to set up specialized advanced technical
training institutions wherever feasible.
iv. Promote setting up of Specialized Industrial Training Institutes (ITIs) and Skill
Development Centres (SDCs) based on requirements.
v. Closely work with various industries for identification/ formulation of courses and
providing practical training to students.
vi. Government will encourage opening of Industrial Training Centre (ITC) in blocks
where there is no ITI/ITC.
10. REHABILITATION AND REVIVAL OF VIABLE SICK UNITS

a) The intensification of industrial activities in the State provides significant growth

opportunities for the existing industries, especially in the SME sector, including those,
which have become sick for various reasons. The State Government shall through
Directorate of Industries identify potentially viable sick units. Such industries shall be
placed on a fast track mode for consideration of rehabilitation assistance by
Government and all agencies concerned. The existing institutional mechanism of
District Level Committees (DLC), Sub-Committee of State Level Inter Institutional
Committee and the State Level Inter Institutional Committee (SLIIC) shall be suitably
reinforced for this purpose.

b) The SLIIC shall be empowered to extend need based incentives as available under
the present IPR for this purpose. The industries so assisted will be treated at par with
new industrial unit for determining the maximum level of incentive that could be
sanctioned by SLIIC.

11. LABOUR REFORM

a) The Orissa Industries (Facilitation) Act-2004 and corresponding Rules-2005 lay down
the broad framework for Labour Reforms. A time bound action plan shall be
formulated for expeditious implementation of these provisions.

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b) Highest priority shall be accorded to amalgamation of different records, registers and
returns required to be maintained under the various Labour Laws and introduce
systems of Self-Certification for labour related compliance of routine nature.

c) A system of joint inspection by various regulatory agencies such as Odisha State

Pollution Control Board (OSPCB), Labour Inspector, Chief Inspector of Factories &
Boilers, Regional Provident Fund Commissioner, and Regional Director, Employees
State Insurance Corporation shall be devised and implemented in a time bound
manner.

d) Implementation of these provisions shall be reviewed by the State Level Single

Window Clearance Authority and the High Level Clearance Authority from time to
time.

e) The following categories of Industries / Establishments shall be declared as Public

Utility Services for the purpose of application of provisions under Chapter-V of the I.D.
Act 1947.

i. Information Technology & IT Enabled Services

ii. Bio Technology
iii. Agro-based & Marine-based Processing
iv. Electronics & Telecommunications
v. Export Oriented Units
vi. Software Technology Park (STP) Units
vii. Infrastructure projects including Industrial Parks, SEZs and IT Parks approved
under STP Scheme of Government of India

f) Industrial units and establishments in the following categories shall be exempted from
the provisions of Chapter VI of Factories Act 1948 (Working Hours of Adults).

i. Information Technology & IT Enabled Services

ii. Bio Technology
iii. Electronics & Telecommunication
iv. Export Oriented units
v. Industries set up in Special Economic Zones, Software Technology Parks and
Electronic Hardware Technology Park

12. MARKETING SUPPORT TO MICRO AND SMALL SCALE ENTERPRISE IN

GOVERNMENT PROCUREMENT

a) The existing rules for extending marketing support to Small Scale Industries shall be
brought in alignment with the Micro, Small and Medium Enterprises Act, 2006 Orissa
MSME Development Policy 2009 and corresponding Rules. The following measures
shall be undertaken:

Page 26 of 41
 i. Comprehensive review of the rate contract purchase list, exclusive purchase list
and open tender purchase list shall be undertaken by a committee consisting of
representatives of Industries Department, MSME Department, Directorate of
Export Promotion and Marketing (EP&M), Director of Industries and
representatives of Industries Associations, which shall submit their
recommendations for Government approval in Industries Department.

ii. With a view to encouraging large and medium industries, including those in
private sector, in the State to meet their store purchase requirements from the
local MSEs, institutional mechanism in the line of Plant Level Advisory
Committee existing in respect of Central Public Sector Undertakings (CPSUs)
shall be devised and implemented.

b) Local Micro & Small Enterprises and Khadi & Village industrial units including
handloom and handicrafts will enjoy a price preference of 5% over local medium and
large industries and industries outside the State. Any local small scale industrial unit
having ISO or ISI Certification/ Handloom Mark for its product will get an additional
price preference of 3%

c) For facilitating government purchase of MSE products, an MSE Exclusive List shall be
prepared by Director of Industries, taking the items generally manufactured by the
MSE units of the State. The items so listed shall be reserved for the MSE units of the
State for Government procurement through limited tender system.

13. EXPORT PROMOTION

Augmentation of exports commensurate with the export potential of the State shall be
a priority activity of the Government. An Export Policy and Action Plan for export
promotion shall be notified in consultation with leading exporters of the State and
related agencies. An Export Resource Centre shall be established in the Directorate
of Export Promotion and Marketing.

14. REVIEW AND MONITORING

The implementation of the policy will be periodically reviewed by High Level

Clearance Authority (HLCA) for necessary facilitation and mid-course correction,
wherever necessary.

15. MISCELLANEOUS

a) This policy lays down the base fiscal and non-fiscal incentives available to any
industry being set up across the state

b) Government of Odisha has notified a separate policy – Orissa MSME development

Policy 2009 – which provides fiscal and non-fiscal incentives to MSME units being

Page 27 of 41
 established in the state. Investors and Entrepreneurs are encouraged to refer to the
said policy and its amendments/ substitutions as applicable along with this policy.

c) Various sector specific policies as notified by Government of Odisha from time to time
may provide for additional fiscal and non-fiscal incentives over and above the
incentives specified in this policy document. Investors are encouraged to refer to the
said policies and their amendments/ substitutions as applicable along with this IPR.

d) If both IPR and the Sectoral Policy provide different level/ rates of incentives under the
same category, Investors may avail of the higher level/ rate as applicable under either
policy.

e) Benefits/ Incentives available under the IPR, but not mentioned in the sectoral policies
will be applicable to such sectors and Investors may avail of the same under IPR.

f) Any Act or sector specific policy of Government of Odisha along with its rules and
procedures thereunder dealing with promotion of investments in the state that is
conflicting with this policy, its rules and procedures shall be suitable amended to the
extent required to bring conformity with this policy within one year of notification of this
policy.

g) This policy shall remain in force until substituted by another policy or an amendment
of this policy. The State Government may at any time amend any provision of this
policy.

h) A special package of incentives over and above what has been enumerated in this
Policy document may be considered for new industrial projects in certain sectors or
certain locations on case to case basis taking into account the benefits to the State.
The Cabinet on the recommendations of the SLSWCA and the HLCA and
concurrence of Finance department may consider such proposal.

i) Doubts relating to interpretation of any term and / or dispute relating to the operation
of any provision under this IPR shall have to be referred to the Industries Department,
Government of Odisha for clarification / resolution and the decision of Government in
this regard shall be final and binding on all concerned.

Page 28 of 41
Annexure – I
DEFINITIONS AND INTERPRETATIONS

For the purpose of this Industrial Policy Resolution, the various terms shall have the
meanings assigned to them hereunder:

1) “Ancillary Industry” means an Industrial undertaking which is engaged or is proposed to

be engaged in manufacturing or production of parts, components, sub-assemblies,
tooling or intermediates or rendering of services and the undertaking supplies or renders
or proposes to supply or render not less than 50% of its production or services as the
case may be, to one or more other industrial undertakings.
2) “Downstream Industry” means an Industrial undertaking, which is engaged or proposed
to be engaged in value addition of the intermediate or final produce or waste product of
one or more industrial undertakings utilizing a minimum of 25% by weight as base raw
materials.
3) “Earlier Industrial Policy Resolution” means the applicable previous IPRs
4) “Effective Date” means the date of notification of this IPR.
5) “Entry Tax” means the Tax payable under Orissa Entry Tax Act, 1999.
6) “Existing Industrial Unit” means an industrial unit that has commenced commercial
production before the effective date of this IPR.
7) “Expansion / Modernization / Diversification” of an existing industrial unit means
additional investment of at least 50% of the undepreciated book value of plant and
machinery of the said unit made in acquisition of additional plant and machinery and
technology for such E / M/ D, duly apprised and approved by DIC/ RIC/ SISI/ NSIC/
NCDC/ OCAC/ STPI/ IPICOL/ OSFC/ SIDBI/ Public Financial Institutions. In case of
“Expansion”, the additional investment as above must result in at least 50 % addition in
production capacity. In case of “Diversification” the additional investment as above must
result in production of at least one additional product.
8) “Finished Goods” means goods exclusively manufactured by the industrial unit and
includes by-products, scrap, defective products either sold as such or as seconds /scrap
/waste etc. which also come out as a result of its normal manufacturing activity /
process.
9) “Fixed Capital Investment” means investment in land, building, plant, machinery and
balancing equipment.
10) “Infrastructure Project” means roads, bridges & culverts, railway lines, power plants,
electric substations and transmission lines, cold storage, water supply and storage
facilities undertaken predominantly for use by industrial units, ports, airports, container
terminals, bonded warehouses, satellite townships around industrial centres, film cities,
film studios, transport and telecommunication facilities, common effluent treatment
plants, waste management facilities, tool rooms, R&D Institutes, Technology
Laboratories / Centres, Quality testing labs / centres, exhibition and conference centres,
trade centres, display centres, way side facilities for marketing of products, industrial
townships, industrial estates, amusement parks, Multiplexes, Golf courses and other
tourism-related infrastructure, social and allied infrastructure such as schools, technical
& professional institutes and hospitals etc.

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11) “Industrial Unit” means any industrial undertaking located inside the State and engaged
in any manufacturing or servicing activity as detailed in the Schedule appended to this
policy.
12) “Local Micro & Small Enterprises” means Micro & Small Enterprises situated in the State
of Odisha
13) “Micro, Small, Medium & Large Enterprise “means an Industrial Unit as defined by the
Government of India from time to time.
14) “New Industrial Unit” means an industrial unit where fixed capital investment has
commenced on or after the effective date and which goes in to commercial production
within two years for Micro, Small & Medium Enterprises and three years for the rest,
from the date of starting first fixed capital investment.
15) “Migrated Industrial unit” means an industrial unit which has commenced fixed capital
investment but not gone into commercial production before the effective date and will
have the option to be treated as New Industrial Unit under this IPR provided that
- it goes into commercial production within two years for Micro, Small & Medium
Enterprises and three years for the rest from the effective date and
- It will surrender and or refund the incentives availed, if any, under earlier IPRs.
Provided also that such option shall be exercised in the prescribed form as
provided in The Operational Guidelines of this policy and submitted to the GM /
PM, DIC/ RIC for Micro & Small Enterprises and to the Director of Industries,
Odisha for the rest within 180 days from the effective date. Once the option is
exercised, it shall be final and irrevocable.
16) “Pioneer Units” mean the first five industrial units of each Priority Sector which
commence fixed capital investment and go in to commercial production during the
operative period of this IPR.
17) “Priority Sectors” means – New Industrial units where fixed capital investment
commences on or after the effective date and fall within the following categories.
a. Agro and Food Processing
b. Ancillary and Downstream
c. Automobiles and Auto-components
d. Bio-technology
e. Fly ash & Blast furnace slag based industries utilizing a minimum of 25%
by weight as base raw material
f. Gem stone cutting and polishing
g. Handicraft, Handloom, Coir and Leather products
h. Information technology, IT enabled service and ESDM units
i. Petroleum, Chemicals & Petro-chemicals
j. Pharmaceuticals
k. Sea food Processing
l. Textile including Technical Textile & Apparel
m. Tourism and Hospitality (branded 3 star and above/ luxury hotels in
Bhubaneswar and budget hotels/ any star hotel in any other location in the
state)

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 n. Any industry other than mineral extraction and mineral based industries,
which export more than 50% of its total turnover, duly certified by the
Director, Export Promotion and Marketing.
Note – Government may modify the above list from time to time
18) “Raw Material” means materials required by the unit that will directly go into the
composition of its finished products.
19) “Transferred Unit” means an industrial unit whose ownership or management has been
transferred in pursuance of the provisions of the State Financial Corporations Act. 1951
or SIDBI Act, 1989 or transferred with the approval of OSFC or IPICOL or SIDBI.
20) “VAT” means value added tax as defined under the provisions of The Orissa Value
Added Tax Act, 2004‘ & Orissa Value Added Tax Rules, 2005‘ “CST” means Central
Sales Tax as defined under the provisions of Central Sales Tax Act, 1956.
21) “Year” for the purpose of incentives means a period of 365 consecutive days.
22) “BIFR” means the Board for Industrial and Financial Reconstruction.
23) “BIS” means Bureau of Indian Standards
24) “DIC” means District Industries Centre
25) "DLNA" means District Level Nodal Agency
26) "HLCA" means High Level Clearance Authority
27) "IDCO" means the Odisha Industrial Infrastructure Development Corporation
28) "IDCO land" means land allotted to and land acquired by IDCO
29) "IPICOL" means the Industrial Promotion and Investment Corporation of Odisha Limited
30) “ISO” means International Standards Organisation
31) “ IPR” means Industrial Policy Resolution
32) "NCDC" means the National Co-operative Development Corporation
33) "NSIC" means the National Small Industries Corporation
34) "OERC" means the Odisha Electricity Regulatory Commission
35) "OFDC" means the Odisha Film Development Corporation Ltd
36) “OCAC” means Odisha Computer Application Centre
37) “OSFC” means the Odisha State Financial Corporation
38) “OSIC” means the Odisha Small Industries Corporation
39) “PMRY” means Prime Minister’s Rozgar Yojana
40) “REGP” means Rural Employment Generation Programme
41) “RIC” means Regional Industries Centre
42) “SIDBI” means the Small Industrial Development Bank of India
43) “SLNA” means State Level Nodal Agency
44) “SLSWCA” means State Level Single Window Clearance Authority
45) “STPI” means Software Technology Parks of India

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Annexure-II
SCHEDULE

UNDERTAKINGS CARRYING ON ACTIVITIES RECOGNISED AS INDUSTRIAL UNITS, OR

GIVEN THE STATUS OF INDUSTRIAL UNITS, FOR THE PURPOSE OF IPR- 2014.
1. Units engaged in manufacturing and / or servicing activity belonging to the following
categories.
a) Industries listed under the first schedule of the Industries Development and Regulation Act,
1951 and classified under the Micro, Small and Medium Enterprises Development Act, 2006.
b) Industries falling within the purview of the following Boards and public Agencies:-
(i) Small Scale Industries Board/ National Board for MSME.
(ii) Coir Board.
(iii) Silk Board.
(iv) All India Handloom and Handicrafts Board.
(v) Khadi and Village Industries Commission / Board.
(vi) Any other Agency constituted by Government for industrial development.
c) Infrastructure projects including projects undertaken for social infrastructure, technical and
professional institutions only for the purpose of determining applicable land rate.
d) Service sector projects such as Tourism, Information Technology and IT Enabled Services,
Research and Development only for the purpose of determining applicable land rate and for
100% reimbursement of Entry Tax on acquisition of plant and machinery for setting up/
establishment of units.

2. Industrial unit will not include non-manufacturing / servicing industries except:

(a) General workshops including repair workshops having investment in plant & machinery of
Rs. 25 lakh and above and running with power.
(b) Cold storage and Fish freezing units.
(c) Electronics repair and maintenance units for professional grade equipment and Computer
Software, Data Processing, ITES/BPO and related services.
(d) Technology Development Laboratory /Prototype Development Centre.
(e) Printing press with investment in plant and machinery of Rs. 50 lakh and above
(f) Laundry/ Dry Cleaning with investment in plant and machinery/ equipment of Rs. 25 Lakh and
above
(g) Photographic studios and laboratories with investment in plant and machinery/ equipment of
Rs. 50 Lakh and above

3. The following units shall not be eligible for fiscal incentives specified under this IPR
and allotment of land at concessional rates and/ or within municipal corporation limits in
the state, but shall be eligible for investment facilitation, allotment of land under normal
rules at market rate and recommendations to the financial institutions for term loan and
working capital and for recommendation, if necessary, to the Power Distribution
Companies:

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01. Rice husk Hullers and Rice mills with investment in plant and machinery of less than one
crore rupees.
02. Flour mills including manufacture of besan, pulse mills and chuda mills excluding Roller
Flour Mill with investment in plant and machinery of less than one crore rupees.
03. Making of spices with investment in plant and machinery of less than two crore rupees and
without Spice-mark or Agmark and brand name, pampad excluding pampad manufactured by
Cooperative Societies.
04. Confectionary with investment in plant and machinery less than Rs. 25 lakh.
05. Preparation of sweets and numkeens, etc.
06. Bread-making (excluding mechanised bakery).
07. Mixture, Bhujia and Chanachur preparation units.
08. Manufacture of Ice candy and Ice fruits.
09. Manufacture and processing of betel nuts.
10. Hatcheries, Piggeries, Rabbit or Broiler farming.
11. Iron and Steel Processors including cutting of sheets, bars, angles, coils, M.S. sheets,
recoiling, straightening, corrugating, drop hammer units etc.
12. Cracker-making units.
13. Tyre retreading units with investment in plant and machinery of less than ten lakh rupees.
14. Stone crushing units.
15. Coal / Coke screening / Coal washing / Coal Briquetting / Coke Briquetting.
16. Production of firewood and charcoal.
17. Painting and spray-painting units with investment in plant and machinery of less than ten
lakh rupees.
18. Units for physical mixing of fertilizers.
19. Brick-making units (except units making refractory bricks and those making bricks from
flyash, red mud and similar industrial waste @ not less than 25% as base material).
20. Manufacturing of tarpaulin out of canvas cloth with investment in plant and machinery of less
than ten lakh rupees
21. Saw mill, sawing of timber.
22. Carpentry, joinery and wooden furniture making.
23. Drilling rigs, Bore-wells and Tube-wells.
24. Units for mixing or blending/ packaging of tea.
25. Units for cutting raw tobacco and sprinkling jaggery for chewing purposes and Gudakhu
manufacturing units.
26. Units for bottling of medicines.
27. Bookbinding / Rubber stamp making / Making notebooks, exercise notebooks and
envelopes.
28. Photo copying.
29. Stencilling units / Processing of Stencil paper.
30. Distilled water units.
31. Tailoring (other than readymade garment manufacturing units).
32. Repacking/ stitching/ printing of woven sacks out of woven fabrics.
33. Clinical/Pathological laboratories.
34. Beauty parlours/ Spa
35. Video parlours.
36. Guest Houses / Restaurants.

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37. Goods and passenger carriers.
38. Pre-processing of Oil seeds - decorticating, expelling, crushing, parching, and frying.
39. Fruit Juice base, aerated water and soft drink units (excepting the units manufacturing fruit
pulp or fruit pulp and juice out of it).
40. Distillery, Bottling units or any activity in respect of IMFL or liquor of any kind.
41. Size reducing / size separating units / grinding/ mixing units except manufacturing of Cement
with clinker
42. Polythene less than 40 micron in thickness / recycling of Plastic materials.

Note: List of Industrial units indicated above may be modified by the Government in Industries
Department from time to time.

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Annexure-III
For the purpose of allotment of land to IDCO by State Government under the provisions of
this IPR and lease of such land by IDCO to industrial units, the following terms and
conditions shall be binding upon IDCO and the industrial unit:

COVENANTS/ TERMS AND CONDITIONS FOR ALLOTMENT OF LAND TO IDCO

i. Government, vide notification in the gazette, will allot land to IDCO for new industrial
units, existing units undertaking expansion/ modernisation/ diversification, industrial
parks, industrial estates, industrial areas, industry clusters, special economic zones
(SEZ), growth centres including infrastructure projects
ii. IDCO after performing all the covenants and terms herein on its part contained may
peaceably hold and enjoy the demised land during the said term without any let,
hindrance or interruption by the State Government or any other person claiming under or
in trust of the State Government
iii. Government may take back the said land whenever necessary by means of a
notification in the gazette
iv. IDCO shall keep marked the boundaries of the demised premises and point them out
when so required by the Collector or any other officer authorised by him in this behalf
v. Upon expiry of the ninety-nine years hereby reserved the State Government shall, upon
request by the lessee, consider a renewal of the term for the like period through IDCO
and upon the terms and conditions as specified by Government from time to time
vi. That IDCO shall be competent to develop the demised land and provide therein
infrastructure for micro, small, medium and large industries. Provided that such
infrastructure shall mean to include sheds, provision of industrial and drinking water,
communications, sewerage, effluent discharge etc.
vii. That IDCO shall be competent for laying out the demised land into various plots besides
setting apart land for laying of roads, drains and other common infrastructure as deemed
required for future occupants of the plot so laid out
viii. That IDCO shall be competent to mortgage the demised land in full or in part for
securing loans for developing the demised land for providing therein infrastructure for
micro, small, medium and large industries.
ix. That IDCO shall be competent to accord permission to the lessee to create a mortgage
in accordance with the principles laid down by the State Government by a general or
special order for such purpose as and when required by the said lessee from time to
time in respect of the demised property i.e. land, shed etc. for securing loan for
implementation of the project
x. Provided however that at any point of time, the permission so issued by IDCO shall be
confined for creation of a specific mortgage by the lessee with any individual financier or
consortium of financiers for the said patch of demised land and there can be no multiple
mortgages with a single permission issued by IDCO

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 xi. That if the annual rent, as applicable under this IPR, at any time, be in arrear and remain
unpaid for three calendar months after the same shall have become due, whether
demanded or not, then and in such case it shall be lawful for IDCO to re-enter into and
upon the demised land or any part thereof in the name of the whole and to hold the
same henceforth as if these presents had not been made without prejudice to any right
of action or remedy of the State Government in respect of any antecedent breach of any
of the covenants by the lessee herein contained
xii. That upon breach or non-observance of any of the conditions specified herein by the
lessee, the State Government through IDCO may declare that the lease agreement has
been terminated and officers of IDCO or any officer or person appointed on that behalf
by State Government shall be entitled to re-enter and take possession of the demised
land and of the buildings and other structures erected thereon and the materials thereof,
as well as the stores and stocks.
xiii. Provided That before such re-entry State Government through IDCO shall give to the
lessee written notice of its intention so to do and the lessee shall have right to remedy
the breach or non-observance complained of, within three months from the date of such
notice in which event IDCO/ State Government shall not be entitled to re-enter and take
possession
xiv. Provided Further that in case the demised lands are so resumed the lessee shall not be
entitled to any compensation whatsoever for the demised land or the building and other
structures erected thereon and the materials thereof, as well as the stores and stocks,
but shall be at liberty to enter upon the demised land and to remove all such buildings
and structures and the materials thereof, as well as the stores and stocks within nine
months from the date of termination of the agreement failing which the lessee shall
cease to have any right to such buildings and structures and the materials thereof, as
well as the stores and stocks.
xv. That, should the demised land or any part thereof be at any time required by the State
Government for any purpose declared by the State government to be a public purpose,
the State Government shall be entitled to resume the same on giving 6 months’ notice in
writing and on the expiry of the said period may, through any officer or person
authorized by the State Government in that behalf, re-enter and take possession of the
said demised land or part thereof and all buildings and structures thereon
xvi. Provided That unless surrendered by IDCO, except for the breach of the covenants
contained herein or except when the State Government requires it for a public purpose
under no other circumstances whatsoever the State government shall be entitled to
resume possession of the demised land which has been developed by IDCO and such
other demised land on which infrastructure has been provided
xvii. The State Government reserves the rights to the mineral wealth lying under the said
demised land

COVENANTS/ TERMS AND CONDITIONS FOR LEASE OF LAND TO INDUSTRIAL UNITS

(LESSEE) BY GOVERNMENT OF ODISHA THROUGH IDCO (LESSOR)

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 xviii. The lessee agrees and admits its liability to pay any such sun or further sums towards
compensation of the demised land demanded by IDCO towards compensation under the
provisions of the Land Acquisition Act or in pursuance of the orders of Civil Court
xix. The Lessee shall start construction within six months, install the plant and machinery
and go into commercial production within 24 (twenty four) months from the date of taking
over possession of the property.
xx. The Lessee shall not assign or transfer or encumber or part with his interest either in
part or in whole any manner whatsoever without the previous approval in writing of the
Lessor.
xxi. Notwithstanding anything contained in the lease deed, the Lessee with the previous
consent in writing of the Lessor can assign or transfer his interest in the property in
favour of any scheduled bank/financial institution/ Life Insurance Corporation or any
other bonfire source for securing loan to be advanced them for construction of building,
purchase of machinery and raw materials etc. that such mortgage shall not affect the
rights and powers of the Lessee under this deed and , that the Lesser before exercising
its rights and powers of the Lesser under this deed will consult the Bank or the Financial
Institution as the case may be.
xxii. The Lessee shall pay all existing and future rates and taxes, charges, claims,
assessments outgoing of any description chargeable against the Lesser or occupier in
respect of the allotted land and building erected thereon.
xxiii. Paying rent hereby reserved as stated above, by observing the terms and conditions of
this arrangement, the Lessee shall occupy the property and carry on his Industry/
Business without any obstruction or interruption from the lesser or its successors.
xxiv. The Lessee shall pay directly to the concerned authorities all the charges for the
consumption of electricity, water etc.
xxv. The Lessee shall not use the property for any purpose other than the one of which the
allotment has been made by Lessor.
xxvi. The Lessee shall not alter the name of the constitution of the Company or effect such
other changes without obtaining the prior approval of the Lessor.
xxvii. The Lessee will take possession of the property on “as it is” condition and no further
demand for any development such as earth filling, raising and levelling etc. shall be
entertained. Any other improvement or development is purely the responsibility of the
Lessee.
xxviii. Any Officer of the Lessors or its authorised representatives shall be entitled at all
reasonable times to enter up on the property to view and inspect the same whenever
necessary and to ascertain the condition thereof.
xxix. If the dues of the Lessor hereby reserved or any part thereof, shall at any time remain
arrears and unpaid for 6 Calendar months next after the date on which the same shall
have become due whatever the same shall have been lawfully demanded or not, or if
there is a breach or non- observance by the Lessee or any conditions and covenants
herein contained and the Lessee fails to remedy the breach within 6 months of the
notice in writing given by the Lessor or becomes insolvent or enters into an agreement

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 with his creditors for composition of the said business, this agreement will be deemed to
have been terminated and the Lessor may not- withstanding the waiver of any previous
causes of action or rights or remedy of re-entry and without prejudice to any such right
or remedy of the Lessor for recovery of rent remaining due under lease, enter upon the
said land and responses the same as if this demised premises had not been leased out.
In such a case the Lessee shall pay to the Lessor the Lessor may determine such
amounts by way of damages or such other charges as. The amount of damage or other
dues recoverable from the Lessee will be adjusted against the amount already paid by
the Lessee. If after such adjustment there remains any surplus, the same only be
returned to the Lessee without any interest. If after such adjustment there still remains
some dues recoverable from the Lessee and if he failed to pay the same, the Lessee
shall be free to take any legal action as he deems fit.
xxx. In the event of cancellation of the lease, the Lessee shall be bound and liable to vacate
and deliver to the Lessor the vacant possession of the property free from all
obstructions, failing which the Lessee shall be liable to pay to the Lessor damages at the
rate of Rs. 500/- (Rupees five hundred) only per day per acre of unauthorized use and
occupation of the property besides any other liabilities provided for this agreement or in
any other law for the time being in force.
xxxi. In case the Lessee wants to terminate the lease of his own accord before the expiry of
the period of lease, he shall give six months’ notice to the Lessor in that behalf and in
such case the Lessee shall pay to the Lesser such amount by way of damages as may
be determined by the Lesser. The amount of damages and other dues if any,
recoverable from the Lessee shall be adjusted against the amount already paid by the
Lessee. It after such adjustments there remains any surplus, it shall be returned to the
Lessee after the Lessee duly hands over possession of the property to the Lessor. If
after such adjustments, there still remain any dues to be recovered from the Lessee and
if he fails to pay the same, the Lessor shall be free to take any legal action as it deems
fit.
xxxii. The Lessor shall however have the discretion of permitting the Lessee to fulfil the
obligation and liabilities under this agreement on such terms as the Lessor may
determine and as the circumstances may warrant.
xxxiii. All outstanding and other dues payable by the Lessee shall be recoverable as a public
demand under the Orissa Public Demand Recovery Act 1962.
xxxiv. The Lessor shall not be responsible for any damage caused to property by natural
calamities like flood, earthquake, cyclone or any other act of God and explosion, fire, riot
etc.
xxxv. The Lessor reserves the right to the mineral wealth including minor minerals on, in or
under the area covered by the lease and the Lessee will have the surface rights over the
land. The existing outstanding customary rights of Government and the public roads and
paths through or bounding the land are reserved and are in no way affected by the
Lease.
xxxvi. The Lessee shall not at any time during the tenure of the lease acquire an absolute or
exclusive proprietary right over the land or claim any such right whatsoever, excepting

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 the rights to use the land in the manner prescribed herein and in case of any transfer of
the land either in the usual course of inheritance or by rights of succession or by way of
adverse possession and easement right of any third party as applicable against the land
belonging to the Government or in case of encumbrance created either voluntarily by the
Lessee or otherwise by an order of the Civil court, the limitations, conditions and
restrictions imposed in this deed of lease will apply “Mutatis Mutandis” to any outsider
claiming interest over the demised premises through the Lessee for any such purpose or
otherwise in constructing any of the terms in this deed of lease, the provisions of the
Government Grants Act-1895 and the provisions of the Transfer of Property Act-1882,
will not be applicable.
xxxvii. The Lessee shall duly comply with the provisions of the Orissa River Pollution Act-1953
and the rules made there under as also with any condition which may from time to time
be imposed by the Orissa River Board constituted under the said Act or the
Central/State Pollution Control Board as regards collection, treatment and disposal or
discharge of effluents or waste or otherwise howsoever and shall indemnify and keep
indemnified the Lessor against the consequences of any breach or non-compliance of
any such provisions or conditions as aforesaid.
xxxviii. The Lessee shall obtain necessary clearance from the State Pollution Control Board,
Odisha within six months for establishment of the project on the allotted land as regards
collection, treatment, disposal and discharge of effluent or waste etc. or otherwise before
taking up any civil construction/industrial activities and will maintain environmental
balance which might be required at the time of commission of industry.
xxxix. The lessee shall have to abide by all the applicable environment related laws/rules &
regulations which exist and which may be framed by the competent authority from time
to time.
xl. The liquid effluent discharge of/from the industries of the lessee shall meet OSPCB
prescribed norms.
xli. The lessee shall obtain clearance from Ministry of Environment and Forests, Govt. of
India. The lessee shall abide by the provision of prevailing forest laws, rules and
guidelines issued by the State/Central Govt. from time to time.
xlii. On the expiry of the lease period or on termination of the lease due to the branch of any
of the conditions of the deed or the transfer of the land or its mis-utilisation by the
Lessee, the Lessor will have the right of re-entry over the land and takeover the
possession of the demised property and all buildings/structures erected thereon. If the
lessor does not wish to takeover constructions/additional constructions the lessee shall
be bound to remove them within a period fixed by the lessor and in case the lessee fails
to do so the construction shall lapse to the lessor and no compensation whatsoever on
this account will be payable to the lessee by the lessor.
xliii. The land or any part thereof, if required by Government at any time for any public
purpose, the lessor shall entitle to resume the land or any part thereof on giving six
months’ notice in writing and on expiry of the said period the lessor or any officer
authorized by him re-enter and may take possession of the said land and all
buildings/structures etc. thereon.

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 xliv. The land covered under the agreement has been allotted for promoting the development
of industries and to provide facilities to the entrepreneurs for setting up Industries. If
during the tenure of this lease any relevant Act is passed or enforced by the State
Legislature of Odisha, the terms and conditions of this deed will be deemed to have
been automatically amended in accordance there with, and any term and condition if
found repugnant to such Act of the Legislature, will be treated as void and not binding on
the parties.
xlv. Notwithstanding anything here in before contained, where the Lessee has become liable
to be evicted or is evicted from the said property under any of the foregoing conditions,
the lessor may in its discretion continue the allotted property in the occupation of the
Lessee on payment of such fine by the Lessee as may be decided by the Lessor and in
such case this agreement shall have effect as if there had been no eviction of the
Lessee.
xlvi. The Lessee shall make necessary provision for peripheral development along with
provisions for development of ancillary industries. These provisions shall have to be
incorporated in the project report if not provided.
a) That if the Lessee utilizes only a portion of the land for the purpose for which it was
allotted and the Lessor is satisfied that the Lessee can continue portion of the land used
by him even if the unutilized part thereof is resumed, the Lessor may make an order
declaring the transfer of the land with respect to the unutilized portion shall revert to the
Lessor and direct that an amount not exceeding one fourth of such portion of the amount
paid by the Lessee as cost of acquisition of land or premium for lease of land as is
relative to the unutilized portion shall be forfeited to the Lessor as damage and that
balance of that portion shall be refundable to the Lessee and the order so made shall be
subject to the provisions of the sub- clause (b) below be final and binding. In case of
resumption of the whole land, one fourth of such land cost paid by the Lessee shall be
forfeited to the Lessor as damage and balance shall be refunded.
b) That where there is any dispute with regard to the amount relating to the un- utilised
portion of the land, such disputes shall be referred to the Govt. in the Industries
Department and the decision of the Government thereon shall be final.
xlvii. The Lessor reserves the right to impose any further condition and stipulations, or
alterations in the covenants necessary at any time to implement this agreement.
xlviii. The lessee shall not at any time cause or permit to be caused any nuisance in or upon
the demised premises or anything, which shall cause unnecessary or anything, will shall
cause unnecessary annoyance or inconvenience or disturbances to others.
xlix. The lessee shall abide by the guidelines of Government of Odisha regarding
rehabilitation of displaced families.
l. Financial closure of the project shall be completed within one year from the date of
allotment of land.
li. If construction work will not be started within 6 (six) months, the lease will be deemed to
have been cancelled at the end of 6 months period. Further, if the land or any part of

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 shall not be utilized fully for the purpose for which it is allotted within a period of 3 (three)
years, the same shall revert to IDCO free from all encumbrances.
lii. In case the project land (private or government or both) will be interspersed with forest
land, the lessee shall have to allow free access to the local community till the same is
alienated in their favour after obtaining due approval of the diversion proposal by the
Ministry of Environment & Forest.
liii. In Case of government land for felling of trees for the purpose of the project,
enumeration of the number of trees shall be made and the lessee shall deposit the
necessary cost with the government. In case of acquired private land, necessary
clearance of the local District Forest Officer (DFO) shall be obtained by the project
authority before felling of trees.
liv. The lessee shall maintain 50 meters, from all directions for developing green belt &
plantation shall be taken up by the lessee at their own cost.
lv. The rehabilitation site shall be kept at a reasonable distance from the reserve/protected
forest area and the displaced people shall be provided with necessary agriculture and
grazing land for sustenance.
lvi. Due opportunity shall be the local people to express their views in Grama Sabha
meeting in the schedule areas and public hearing made by the Pollution Control Board.
lvii. The lessee agrees to facilitate participation of small and medium industries within the
State for providing products and services required for the project during its construction
and implementation phase as well as during operation and to promote the ancillary and
downstream industries within the State. The State Government will nominate a nodal
agency /officer to interact with the company for this purpose.
lviii. The lessee while implementing the project shall undertake to comply with all statutory
requirements / clearances in respect of laws, regulations and procedures governing
establishment and operation of Industries.
lix. The lessee, shall have only surface right over the land.
lx. The land shall be utilized for the purpose for which it is sanctioned and shall not be
transferred/ leased out to any other institution/ individual.
lxi. The lessee shall be liable to pay the cost of standing trees if found to be involved directly
or indirectly in felling the trees standing over the leased out land during process of the
lease proposal.
lxii. The lessee shall make necessary provisions for adequate soil conservation and
rainwater harvesting structures therein to establish rain conservation and harvesting
system.
lxiii. The lease will be determined on breach of any of the terms & condition of lease deed
/allotment. It can also be determined if the land is otherwise required by the Govt.in
public purpose on payment of compensation.

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