1. Facilitation for promotion of Micro, Small & Medium Enterprises Ease of doing business Initiatives in Odisha

2. Easing business involves Appropriate policy frameworkTransparency in implementationDefinite timeline for disposal

3. Policy Frameworks SlNotifications / Policies 1.Odisha Industries (Facilitation) Amendment Rules, 2015 2.Industrial Policy Resolution, 2015 3.Odisha Food Processing Policy, 2013 4.Micro, Small & Medium Enterprises Development Policy, 2009 5.Odisha Procurement Preference Policy For Micro & Small Enterprises, 2015

4. Initiatives for implementation Online Udyami Aadhar acknowledgement replacing the earlier Entrepreneurs memorandum Strengthening of Odisha Industries (Facilitation) Rules through amendment in 2015 Coverage of services under Odisha Right to Public Service Act, 2012 Initiatives for online administration of selected incentives under Industrial Policy Resolution, 2007 & MSME Development Policy, 2009 District Level Facilitation Cell, involving representatives from Industries, made operational in Regional / District Industries Centres to guide & mentor entrepreneurs. 54 activities notified as Green Category by Forest & Environment Department for fast track clearance. Central Inspection Framework to rationalize inspection of industries Labour reforms

5. Feature of District Level Facilitation Cell  Constituted vide Industries Department Notification No. 4086 dated 23.06.2015 under the Chairmanship of General Manager, RIC / DIC with representatives from line departments & Industries Associations.  Cell focuses on actualization of investment through one-stop facilitation process.  Major function of the Cell include guidance & mentoring of investors; assessment the project, land and utility requirements; assistance in filing Combined Application Form & following-up on approvals from respective line Departments beyond the powers delegated to the members.

6. Process Flow under OIFR, 2015 Investor having no land Investor having less than 25% of required land CAF Schedule I for assessment of land & utility Through DLNA DLFC Decision in DSWCA Investor having 25% or more of required land CAF Schedule IA for Clearance through DLNA for recommendation Recommendation for availability of land 42 Clearances included within maximum 60 days. DLNAConcerned Authority Decision of Concerned Authority communicated to proponent

7. Timeline for consent / approval (OIFR, 2015) Sl. No.DepartmentDisposal of Application Time Limit (Working Days) EnergyDISCOMs 1. Time taken from request for connection to release of connection where infrastructure is available 15 2. Time taken from request for connection to release of connection where infrastructure is not available 30 Environment & Forests Odisha State Pollution Control Board 3.Consent to establish a.‘A’ Category after obtaining environmental clearance60 b.‘B’ Category after obtaining environmental clearance45 c.‘C’ Category30 4.Permission under Hazardous Waste (Handling & Management) Rules30 5.Consent to Operate a.‘A’ Category after obtaining environmental clearance60 b.‘B’ Category after obtaining environmental clearance45 c.‘C’ Category30

8. Timeline for consent & approval Sl. No. DepartmentDisposal of Application Time Limit (Working Days) Labour & ESIDirectorate of Factories and Boilers 6. Approval of Factory Plan for Non-Hazardous factories 30 7.Approval of Factory Plan for Hazardous factories60 8. Approval of Factory Plan for Major Accident Hazard (MAH) factories 90 9.Registration and Licensing of Factories60 10.Renewal/Amendment/Transfer of factory license30 11.Issue of duplicate license30 12. Inspection of Boilers & issue of provisional orders to operate boilers 15 13.Approval of repair order of Boilers15 14.Steam pipeline drawing approval30 15.Registration of Boilers30 16. Endorsement of Certificates of Boiler Operation Engineers, Boiler Attendants and Welders issued by other States 15 17.Revalidation of Welders’ certificates15

9. Timeline for consent & approval Sl. No. DepartmentDisposal of Application Time Limit (Working Days) Labour & ESI Labour Commissioner 18. Registration under Odisha Shop and Commercial Establishment Act,1956 15 19. Renewal of Registration under Odisha Shop and Commercial Establishment Act,1956 15 20. Contract Labour(R & A)Act,1970 i)Registration (one time) ii)Licence iii)Renewal (annual) 15 21.Industrial Employment Standing Order Act, 194645 Housing & Urban Development UDA/Municipalities 22..Building Plan Approval60 23. Issuance of Occupancy Certificate (Applicable to Bhubaneswar Development Authority and other Development Authorities & ULBs 30 24.Trade License15 25.Water Connection45 26.Conversion of Land Use under master plan60

10. Timeline for consent & approval Sl. No. DepartmentDisposal of Application Time Limit (Working Days) FinanceCommercial Taxes 27.Registration under VAT Act3 28.Registration under CST Act3 29.Registration for Profession Tax3 30.IndustriesSanction of incentives under IPR 201530 IDCO Decision on Land Allotment within IDCO Estates outside BMC Area 31. Allotment Letter after receipt of recommendation letter from Single Window Authority 30 32. Execution of Lease Agreement subject to compliance of T & C of allotment 15 33.Issue of Possession Certificate15 Decision on Land Allotment within IDCO Estates within BMC Area 34. Allotment Letter after receipt of recommendation from HLCC 30 35. Execution of Lease Agreement subject to compliance of T & C 15 36.Issue of Possession Certificate15

11. Timeline for consent & approval Sl. No. DepartmentDisposal of Application Time Limit (Working Days) 37.MSMEApproval of EM-1*1 38.Approval of EM-2*2 39. Sanction of Interest Subsidy, Capital Investment Subsidy and VAT Reimbursement 30 HomeDirectorate of Fire 40.No Objection Certificate30 41. Revenue & Disaster Department Conversion of land use in all other areas (except ULBs)60 42.Health & Family Welfare License under Drug and Cosmetics Act30 *Entrepreneur Memorandum has been discontinued by Ministry of MSME, Government of India from 18.09.2015

12. POLICY PROVISIONS

13. ODISHA FOOD PROCESSING POLICY, 2013

14. Eligible items  Agro and Marine processing includes grading, grinding, cutting/ cubing/dicing, sorting, packing (dehydrated packing, vacuum packing, nitrogen sachet packing, tetra packing, canning, bottling), waxing, drying (spray drying, dehydration), irradiation any value add activity to the agricultural, horticulture, and forest produce. Agro processing also covers projects in hi-tech and bio-technology based agriculture.  Food Processing includes processing of ready-to-eat or ready-to- cook food and manufacturing of additives, preservatives, colors and fragrant manufactures for food products.  Agro Infrastructure providers include warehouse, cold storage, transportation food items including reefer vans/ containers and processing machinery producers  Quality assurance providers include food testing laboratory and certification agencies  Research and Human Resource Development includes Research & Development, Product Development, and Crop Development Institutes, and Human Resource Development (courses in Food Processing, Agro Management) OFPP, 2013

15. Illustrative list of eligible items: SlItems /Activities 1. Fruit and Vegetable Processing, including grading / packing; 2. Food grain milling / processing, using modern technology and equipment; 3. Dairy products (including milk processing and milk based products); 4. Processing of Poultry, eggs, meat and meat products; 5. Fish Processing including shrimps; 6. Bread, oilseed meals (edible), breakfast foods (such as cornflakes, oats and muesli), biscuits, confectionery (including cocoa processing and chocolate), oil expellers and refining, malt extracts, protein isolates, high protein foods, weaning food, extruded / other ready to eat food products and all other processed foods (excluding non-packed food items served in Hotels and Restaurants of all categories); 7. Fruit based ready to serve beverages; 8. Produce of animal husbandry 9. Spices and condiments 10. Tissue culture laboratories, green houses, green house nurseries & seed production standards, mushroom laboratories; OFPP, 2013

16. Illustrative list of eligible items (Continued) Sl.Items /Activities 11.Floriculture; 12.Cold Storage Enterprises; 13. Refrigerated transport vehicles / containers (excluding second hand refurbished vehicles / container); 14. Enterprises manufacturing food- grade packaging materials for food processing industry; 15.Enterprises engaged in packaging, canning and bottling of processed foods; 16 Enterprises manufacturing additives, preservatives, colours and fragrant for the processed food industry; 17Bio-technology and bio-informatics industries; 18.Commodity grading and packaging industry; 19. Processing of plantation crops including tea and coffee, forest produce such as herbal, medicinal and aromatic plants, coconut based products and Arecanut / Arecanut based products; 20.Sugar industry (excluding molassess / alcohol) 21Cattle/ Poultry/ Prawn Feed/ Fish Feed* (*Ref: Notification no. 4365/MSME / Dt. 11.06.2015) OFPP, 2013

17. List of ineligible items SlItems /Activities 1Rice huller and seller 2Flour mill of less than 50 TPD capacity 3Masala making without cold process grinding 4Bread/ Confectionery except mechanization 5Preparation of sweet meat and salted snacks except mechanized units. ( Ref: Notification No. 4365/ Dt.11.6.2015) 6Production of ice block 7De-mineralized water and distilled water manufacturing units 8Processing of betel nuts 9Tea blending units 10Units connected with raw-tobacco and gul related products Fruit juice base, aerated water and soft drink units (excepting the units manufacturing fruit pulp or fruit pulp and juice out of it). 11Mixture, Bhujia and Chanachur preparation units except mechanized units. ( Ref: Notification No. 4365/ Dt.11.6.2015) 12Fruit juice base, aerated water and soft drink units (excepting the units manufacturing fruit pulp or fruit pulp and juice out of it). OFPP, 2013

18. Administration of Incentives SlIncentiveQuantumEligibility CriteriaTime Frame 1.Rebate on Land 25% of price announced by Govt. (IDCO) in normal areas; Units set up in KBK and potential food clusters shall be eligible for additional 25% of IPR rates in addition to above. Land shall be provided from ‘Land Banks’ as detailed below: If commenced FCI prior to 15.3.13, it must commence production during 15.3.13 to 14.3.15 If commenced FCI after 15.3.15, it must commence production within two years from date of 1 st FCI. Within 6 months from date of commencement of production for new units and within 6 months from date of Expansion or, Diversification Project Cost (Rs. in Cr.) Max. land to be available 1 to 50Ac. 5.00 Above 50 to 100Ac. 10.00 Above 100Ac.30.00 2.Capital Investment Subsidy for new, Expan- sion & Moderni- sation cases and Top-up cases For General category - 25% of project cost (excluding cost of land); Ceiling: Rs.2.00 Cr. -do- For Women, SC & ST and units in KBK districts - 33% of project cost (excluding cost of land); Ceiling: Rs.3.00 Cr. OFPP, 2013

19. Administration of Incentives contd. SlIncentiveQuantumEligibility Criteria Time Frame 3.Electricity Duty exemption For new enterprises For a maximum 10 years from Date of Production. -do- For existing enterprises For a maximum 10 years from date of commencement of policy. 4.Interest Subsidy for new and Top- up cases 5% p.a on working capital loan availed from public sector banks / OSFC for 1st five years from D.O.P; Ceiling- Rs. 5.00 lakhs p.a - do -Within 6 months from the end of each financial year 5.Quality Certificatio n for new and Top- up cases. Reimbursement upto 50% of cost of certification like HACCP, GMP, ISO 9000, Agmark, FPO, GLP, TQM.; Ceiling – Rs.2.00 Lakhs - do -Within 6 months from date of obtaining certification or, 6 months from date of notification whichever is later. OFPP, 2013

20. Administration of Incentives contd. SlIncentiveQuantumEligibility Criteria Time Frame 6.Entry Tax Exemption On new and 2nd hand Plant & Machinery & Balancing equipment. 100%-do-Within one month of entry of P & M and balancing Equipment On raw materials, incidental goods & packaging materials 100% for a period of 5 years from Date of Production. Within one month of entry of raw materials, incidental goods and packaging materials 7.Mega Food Park, Sea Food Park Capital Subsidy @ 20% of project cost to SPV Maximum – Rs. 15.00 crores or, equity participation by GoO As per scoring pattern. CIS will be front ended to be released in 4 phases as per progress. After preparation of DPR and before making any physical progress on the ground. In case of MFP already approved by MoFPI, GoI, the applicant shall apply along with a copy of In-Principle approval letter of GoI Cost of preparation of DPR Rs. 5.00 lakhs for Mega Food Park. If project report is prepared for carbon credit – 50% of consultancy charges with a cap of Rs. 20.00 lakhs In-Principle approval of MoFPI, GoI is required. OFPP, 2013

21. Administration of Incentives contd. SlIncentiveQuantumEligibility Criteria Time Frame 7.Mega Food Park, Sea Food Park VAT reimbursement - 100% for 10 years Max -200% of Fixed Capital Investment New and Existing enterprise shall be eligible Within 6 months from the end of each financial year For Industrial units set up in Mega Food Parks & Sea Food park CIS: 25% with ceiling of Rs.2.00 cr. for General entrepreneurs in non- KBK area; and @33% with a ceiling of Rs. 3.00 cr. for SC, ST, Women & for KBK districts. Exemption of Entry Tax on P&M and balancing items Exemption of Entry Tax on raw materials for 5 years from DOP As per other units set up outside Mega Food Park OFPP, 2013

22. MSME DEVELOPMENT POLICY, 2009

23.  Effective Date- 17.02.2009.  Eligibility- Units made 1 st. Fixed Capital Investment after the Effective Date & commence Production within 2 years of 1 st. F C I  MSME Development Policy 2009 shall be read in conjunction with IPR-2007.  Units as enshrined in Annexure-ll, Schedule- Point (3) of IPR, 2007 shall not be eligible for fiscal incentives under this policy MSMED POLICY-2009 Contd.

24. Fiscal Incentives IncentivesEligibilityRate / period Time line for filing Application Capital Investment Subsidy New MSMEs 10% of FCI up to Rs. 8 lakh Within Six months of Commenceme nt of Production new MSMEs of SC / ST/ Women, Technical Degree / Diploma holder entrepreneurs 12% of FCI up to 10 lakhs VAT Reimbursement as in IPR-2007 MSEs set up by Women entrepreneurs Additional period of 2 years within six months from the end of each financial year

25. INDUSTRIAL POLICY RESOLUTION, 2007

26.  Effective Date- 02. 03.2007.  Eligibility- Units made 1 st. Fixed Capital Investment (FCI) after the Effective Date & before 24.08.2015 and commence Production within 2 years for MSME and 3 years for Large Industries of 1 st. F C I  Units as enshrined in Annexure-II, Schedule- Point (3) of IPR, 2007 shall not be eligible for fiscal incentives under this policy IPR-2007 Contd.

27. “Priority Sectors” means – New Industrial units where fixed capital investment commences on or after the effective date and fall within the following categories.  Information technology and IT enabled service  Tourism related  Bio-technology  Petroleum, Chemicals & Petro-chemicals  Pharmaceuticals  Handicraft, Handloom, Coir and Leather products  Gem stone cutting and polishing  Sea food Processing  Fly ash & Blast furnace slag based industries utilizing a minimum of 25% by weight as base raw material  Industry other than mineral extraction industry which exports more than 50% of total turnover duly certified by EPM  Units not qualifying for " Thrust Sector" status for not meeting minimum capital investment criteria. PRIORITY SECTOR IPR-2007 Contd.

28. THRUST SECTOR & PIONEER UNITS “Thrust Sector” means new industrial units in the following categories which commence fixed capital investment on or after the effective date and full fill the criteria stipulated as under. SectorMinimum Capital Investment Employment Generation ( Direct) Agro- ProcessingRs. 25 crores100 AutomobilesRs. 300crores500 Auto- ComponentsRs. 50 crores200 TextileRs. 50 crores500 ApparelRs. 10 crores500 Ancillary & Down StreamRs. 10 crores100 “Pioneer Units” mean the first five industrial units of each thrust area, which commence fixed capital investment and go in to commercial production during the operative period of this IPR. IPR-2007 Contd.

29. Non- mineral based new industrial units of Kalahandi Nuapada, Bolangir, Subarnpur, Koraput, Malkangir, Rayagada, Nawrangpur, Gajapati, Kandhamall & Mayurbhanj -  with minimum investment in P&M/c for Rs. 5crore &  providing direct employment to minimum 100 persons shall be treated as deemed thrust sector unit and eligible for all incentives prescribed for the thrust sector. Such deemed thrust sector status may also be granted to other industrial units by High Level Clearance Authority through Notifications of Industries Department. SPECIAL INCENTIVES FOR KBK REGION: IPR-2007 Contd.

30. FISCAL INCENTIVES Govt. land under Land Bank & other Govt. land may be allotted at concessional rate to Industrial Units including Infrastructure Projects Land at special concessional rate to Thrust Sector Units by HLCA Concessional Industrial Rate of Land LAN D IPR-2007 Contd. Zone-A Urban areas coming under the jurisdiction of Bhubaneswar Municipal Corporation, Cuttack Municipal Corporation, Rourkela Municipality, Berhampur Municipality, Sambalpur Municipality and Paradeep NAC. Rates to be fixed by Revenue/ G. A. Dept in consultation with Ind. Dept Zone - BRevenue Sub- Divisions of Angul, Athagarh, Balasore, Berhampur, Bhubaneswar, Champua, Cuttack, Dhenkanal, Jagatsinghpur, Jajpur, Jharsuguda, Keonjhar, Khurda, Panposh, Puri, Sambalpur, Talcher, Municipal / NAC Area- Zone -B -@ Rs 5 lakh / Ac, Zone- C-@ Rs 3 lakh / Ac, Zone- D @ Rs. 1.5 lakh/ Ac Other than Municipal / NAC Area- Zone -B -@ Rs 2 lakh / Ac, Zone- C -@ Rs 1 lakh / Ac, Zone- D @ Rs. 0.5 lakh / Ac Zone - CRevenue Sub- Divisions of Banki, Baripada, Bhadrak, Baragarh, Bolangir, Chhatrapur, Jeypur, Koraput, Raygada, Sundergarh. Zone - DRevenue Sub- Divisions - Anandpur, Athamallik, Balliguda, Bamanghati, Bhanjanagar, Bhawanipatana, Birmaharajpur, Bonai, Boudh, Deogarh, Dharmagarh, Gunupur, Hindol, Kamakhyanagar, Kaptipada, Kandhamala, Kendrapada, Kuchinda, Malkangir, Nayagarh, Nuapada, Nilagir, Nabarangapur, Padampur, Pallahara, Panchpir, Paralakhemundi, Patnagarha, Rairakhol, Subarnapur, Titilagarh.  Ground Rent - @ 1% of the land value

31. LAND Exemption of premium on conversion of agricultural land for industrial purpose IDCO SHED – May be available in 04 annual installments for Micro & Small Enterprises. 1Micro & Small100% up to 5 Ac. No Time limit. But shall have to commence or already commenced production within the period of 2 years for MSMEs and 3 years for Large Industries from the date of 1 st. Fixed Capital Investment. 2Medium75% up to 25 Ac. 3Large 50% up to 500 Ac. 4Priority50% 5Thrust Sectors100% IPR-2007 Contd.

32. STAMP DUTY No stamp Duty for land allotted by Govt. to IDCO or Govt. / IDCO to Private Industrial Estate Developers  Transfer of land / shed to New & Existing taking up E/M/D Exemption of applicable Stamp Duty Micro & Small @ 75% Medium @ 50% Large @ 25% Priority @ 50% Thrust Sector @ 100% Stamp duty exempted -  Units transferred to new management  Conversion of Prop / Partnership to Company for rehabilitation  Loan agreement, Credit deed, Mortgages and Hypothecation deed executed by industrial unit in favour of Banks or F I  Reconstitution & amalgamation of companies is sanctioned by the Court under section 394 of the Companies ACT IPR-2007 Contd.

33. TAXES  VAT exemption on finished product of Khadi, Village, Cottage & Handicraft industrial units and traditional Coir products sold at authorised sales outlet. Shall apply within six months from the date of commencement of production  Entry Tax Exemption A) Plant & M/cNew Micro & Small, Thrust Sector- case to case basis Shall apply within 2 years for MSMEs & 3 years for Large Ind. From the 1 st. date of F C I B) Raw materials New Micro & Small for 5 years limiting to 100% FCI & Thrust Sector units for similar incentives on a case to case basis Shall apply within six months from the date of commencement of production IPR-2007 Contd.

34. TAXES  VAT Reimbursement New MSMEs50% of VAT paid for 5 years limited to 100% FCI Shall apply within six months from the end of each financial year New Industrial Units in Priority Sector 75% of VAT paid for 5 years limited to 100% of FCI New Industrial Units in Thrust Sector 75% of VAT paid for 10 years limited to 200% of FCI Existing Units taking up E / M / D On increased production capacity for the period applicable  Entertainment Tax 100% reimbursement of ET for 5 years to New Multiplex Cinema Halls Shall apply within six months from the end of each financial year IPR-2007 Contd.

35. INTEREST SUBSIDY  New Industrial Units @ 5 % for 5 years limited to: - Rs.10 lakh - Micro Enterprises - Rs.20lakh - Small Enterprises - Rs.100 lakh - Thrust Sector Units  New Industrial Units under PMEGP/ PMRY / REGP @ 3% for 5 years limited to Rs.25000 /- only  Shall apply within six months from the end of each financial year  Loans sanctioned on or after 22.12.2011. IPR-2007 Contd.

36. POWER  New industrial units other than Thrust Sector - 100 % ED exempted for 5 years up to 110 K V A  New industrial units in Thrust Sector - 100 % ED exempted for 5 years up to 5 M W  New Captive Power Plant - 50 % ED exempted for 5 years on for self consumption  Shall apply within six months from the date of commencement of production / Commissioning IPR-2007 Contd.

37.  PATENT REGISTRATION New Industrial Units - 50% of registration cost up to Rs. 5 lakh Shall apply within six months of obtaining Patent Registration  QUALITY CERTIFICATION New Industrial Units - 50% of Quality Certification charge up to Rs. 2 lakh Shall apply within six months of obtaining Quality Certification  ASSISTANCE FOR TECHNICAL KNOW- HOW SectorIndigenous Technology Imported Technology Time line New Micro, Small & Thrust Sector Up to Rs.1 lakh Up to Rs.5 lakh Shall apply within six months of commencement of production IPR-2007 Contd.

38. ODISHA PROCUREMENT PREFERENCE POLICY FOR MICRO & SMALL ENTERPRISES, 2015

39.  EFFECTIVE DATE- 10.06.2015  Eligibility- Micro & Small Enterprises of the State except MSEs not declared ineligible under the extant policies and under new policies announced by the State  Mandatory Procurement from Micro and Small Enterprises - minimum twenty per cent (20%) of the value of the requirement  Special provision for Procurement form Micro and Small Enterprises owned by Scheduled Castes or Scheduled Tribes, Physically Challenged, Women and Technical (Degree / Diploma holding) - 4 percent out of 20 percent)  Sanction of Departure - The Administrative Departments may sanction departure from the scheme in particular cases, where such departure is in the interest of the State. ODISHA PROCUREMENT PREFERENCE POLICY FOR MICRO & SMALL ENTERPRISES, 2015

40. INDUSTRIAL POLICY RESOLUTION, 2015

41.  Effective Date- 24. 08.2015.  Eligibility- Units made 1 st. Fixed Capital Investment after the Effective Date (24.08.2015) and commence Production within 3 years for MSME and 5 years for Large Industries of 1 st. F C I  Units as enshrined in Annexure-ll, Schedule- Point (3) of IPR, 2015 shall not be eligible for fiscal incentives under this policy IPR-20015 contd..

42. 1)“Pioneer Units” mean the first five industrial units of each Priority Sector which commence fixed capital investment and go in to production during the operative period of this IPR. 2)“Priority Sector” means –Industrial units which fall within the following categories: a.Agro and Food Processing b.Ancillary and Downstream c.Automobiles and Auto-components d.Manufacturing in Aviation and Maintenance Repair &Overhaul (MRO) facilities e.Bio-technology f.Fly ash & Blast furnace slag based industries utilizing a minimum of 25% by weight as base raw material g.Gem stone cutting and polishing h.Handicraft, Handloom, Coir and Leather products i.Information technology, IT enabled service and ESDM units j.Petroleum, Chemicals & Petro-chemicals Cont- IPR-20015 contd..

43. “Priority Sector” (Cont- ) k.Pharmaceuticals l.Plastics and Polymers m.Sea food Processing n.Shipbuilding and construction of other floating vessels/ Ship repair o.Textile including Technical Textile & Apparel p.Tourism and Hospitality (All the units/activities specified in Para 6.11 of Odisha Tourism Policy -2013 are eligible units) q.Any industry other than mineral extraction and mineral based industries, which exports more than 50% of its total turnover, duly certified by the Director, Export Promotion and Marketing r.Migrated industrial units treated as new industrial units under Priority sector s.Rehabilitated sick industrial unit treated at par with new industrial unit under Priority sector t.Industrial unit seized under the State Financial Corporation Act 1951/ Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and thereafter sold to a new entrepreneur on a sale of asset basis and treated as new industrial unit for the purpose of this IPR u.Non-mineral based new industrial units located in industrially Backward districts with minimum investment of five crore rupees in plant & machinery Government may modify the above list from time to time. IPR-20015 contd..

44. CategoryDistricts AAll other districts other than Category B B Industrially Backward Districts- Kalahandi, Nuapada, Bolangir, Subarnpur, Koraput, Malkangiri, Rayagada, Nawrangpur, Kandhamal, Gajapati and Mayurbhanj. Classification of Districts:- For the purpose of administering the incentives, the classification of districts is as follows: Industrial Development in Industrially Backward Districts  Aim to provide enabling industrial infrastructure such as road connectivity, power supply, water supply, telecommunication and mobile connectivity etc. and common facilities for storage, preservation and agri-marketing  Identify potential sectors for each district and provide incubation support to units in these sectors.  Non-mineral based new industrial units located in Industrially Backward districts with minimum investment of Rupees Five crore in plant & machinery shall be treated as Priority sector unit and be eligible for all incentives prescribed for the Priority sector. IPR-20015 contd..

45. ZonesLocation Concessional Industrial Land Rate. (Rs. Lakhs / Acre) Zone-A Urban areas under the jurisdiction of Bhubaneswar Municipal Corporation area. Rs. 125 Lakhs/ Acre Zone-B Urban areas under the jurisdiction of Development Authorities of Cuttack, Rourkela, Berhampur, Sambalpur, Paradeep, Puri, Angul and Jharsuguda Cuttack–Rourkela- Rs.60 Lakhs / Acre, Berhampur, Sambalpur, Paradeep, Puri, Angul, Jharsuguda– Rs. 30 Lakhs / Acre Zone-C Revenue Sub-Divisions of Bhubaneswar (except BMC area), Khurda, Angul, Cuttack, Jharsuguda, Panposh, Puri, Sambalpur. Municipal/NAC area – Rs. 15 Lakhs / Acre, Other than Municipal / NAC Area: Rs. 6 Lakhs / Acre. Zone-D Revenue Sub-Divisions of Athagarh, Balasore, Berhampur, Chhatrapur, Champua, Dhenkanal, Jagatsinghpur, Jajpur, Keonjhar, Talcher Municipal / NAC area Rs.10 Lakhs / Acre Other than Municipal / NAC Area –Rs. 4 Lakhs / Acre Zone-E Revenue Sub-Division of Banki, Baripada, Bhadrak, Baragarh, Bolangir, Jeypur, Koraput, Rayagada, Sundargarh Municipal / NAC area-Rs. 6 Lakhs / Acre, Other than Municipal / NAC Area- Rs. 2 Lakhs / Acre Zone-F Revenue Sub-Divisions – Anandpur, Athamalik, Baliguda, Bamanghati, Bhanjanagar, Bhawanipatna, Birmaharajpur, Bonai, Boudh, Deogarh, Dharmagarh, Gunupur, Hindol, Kamakshyanagar, Kaptipada, Kandhamala, Kendrapada, Kuchinda, Malkangiri, Nabrangpur, Nayagarh, Nilagiri, Nuapada, Padampur, Pallahara, Panchpir, Paralakhemundi, Patnagarh, Rairakhol, Sonepur, Titilgarh Municipal / NAC area – Rs. 3 Lakhs / Acre Other than Municipal / NAC Area –Rs. 1 Lakh / acre  Ground Rent will be paid @ 1% of the land value 10% of the land for large projects limiting to 300 Acre shall be earmarked for ancillary & downstream industrial park Land at concessional rate IPR-20015 contd..

46. Exemption of premium on conversion of Ag. Land for Industrial Use New Indl units and existing indl units taking up E / M / D, new Indl units and existing indl units in Priority Sector taking up E/ M / D Micro & Small Sector 100 % up to 5 AcresShall apply within the period of implementation ie 3 years for MSMEs & 5 years for Large Industries Medium Sector75 % up to 25 Acres Large Sector50 % up to 500 Acres Priority Sector 100% up to 100 Acres & 50% for balance area INTEREST SUBSIDY a) New MSME and non MSME Priority sector units @ 5% per annum on term loan for five years / Seven years for Industrially Backward districts from the date of commencement of production for a total maximum limit of- Micro EnterprisesRs. 10 Lakhs Shall apply within six months from end of each financial year Small EnterprisesRs. 20 Lakhs Medium Enterprises Rs. 40 Lakhs Non-MSME Priority Sector Units Rs. 1 Crore b)Guarantee fee charged under CGTMSE will be reimbursed to Micro & Small Enterprises IPR-20015 contd..

47. STAMP DUTY EXEMPTION a)No stamp duty for land allotted by the Govt to IDCO or Govt / IDCO to Private Indl Estate Developers b)Transfer of land / shed by Govt, IDCO & Private Indl Estate Developers to new indl units and existing indl units acquiring fresh land for E / M / D Micro & Small Sector@ 75 % of Stamp dutyShall apply at the time of execution of required deed Medium Sector@ 50 % of Stamp duty Large Sector@ 25 % of Stamp duty Priority Sector@ 100% of Stamp duty (c)Transferred to a new owner / management under the provisions of the SFC Act, 1951 or under SARFAESI Act 2002 or on the recommendation of the SLIIC. d)Units under proprietary /partnership firms to be converted to companies for rehabilitation on the recommendation of the SLIIC. e)Where reconstruction and amalgamation of Companies is sanctioned by the Court under Section 394 of the Companies Act ( Subject to conditions enunciated in IPR) (f)Loan agreements, credit deeds, mortgages and hypothecation deeds executed by the Indl Units in favour of Banks or Financial Institutions shall be allowed 100% exemption from stamp duty. ENERGY (a)Exemption of electricity duty for 5 years New MSMEsContract demand up to 500 KVAShall apply within 1 year from the date of Production New units in Priority SectorContract demand up to 5 MVA New & existing industrial units setting up Captive Power Plant with non-conventional sources & bio-fuel as Green Energy Subsidy. Shall apply within 1 year from the date of Commissioning (b)Seasonal Units such as food processing, sugar, salt and cotton ginning & pressing unit shall be allowed for temporary surrender of a part of their contract demand as per norms of OERC. (c)One-time reimbursement of cost of Energy Audits Micro EnterprisesRs. 1 LakhShall apply within 1 year from the date implementation of Audit Small EnterprisesRs. 2 Lakhs Medium EnterprisesRs. 3 Lakhs IPR-20015 contd..

48. VAT Reimbursement i) New MSMEs 75% of VAT paid Five (5) years Limited to 100% of cost of Plant & M/c Shall apply within six months from the end of each Financial Year ii) New Industrial units in Priority Sector 100% of VAT paid Seven (7) years Limited to 200% of cost of Plant & M/c iii) Existing MSME taking up E / M / D 75% of VAT paid on increased production Five (5) years Limited to 100% of additional cost of plant & M/c for E/M/D iv) Existing industrial units in Priority sector taking up E / M / D 100% of VAT paid on increased production Seven (7) years Limited to 200% of additional cost of Plant &M/c acquired for taking up E/M/ D v) New Pioneer Units under each Priority Sector 100% of VAT paid Nine (9) years Limited to 200% of cost of Plant & M/c vi) Anchor Tenant in each industrial park 100% of VAT paid Nine (9) years Limited to 200% of cost of Plant & M/c  Above provision will be suitably replaced / modified after Goods and Services Tax (GST) is introduced IPR-20015 contd..

49. Reimbursement of Entry Tax a) Plant & Machinery New MSMEs and Priority Sector 100% of Entry Tax paid on acquisition of plant & M/c Shall apply within 1 year from the date of Production Existing industrial units in MSMEs & Priority Sector units taking up E/M/D 100% of Entry Tax paid on additional acquisition of plant & M/c. b) Raw Materials New MSMEs and Priority Sector units 100% of Entry Tax paid for five years limiting to 100% of cost of Plant & M/c Shall apply within six months from the end of each financial year Existing industrial units in MSMEs & Priority Sector units taking up E/ M/ D 100% of Entry Tax paid on additional raw materials for a period of five years limiting to 100% of cost of additional Plant and machinery. New Pioneer Units under each Priority Sector 100% of Entry Tax paid for seven (7) years limiting to 100% of cost of plant & M/c  The above provision will be suitably replaced/ modified after GST is introduced. ENTERTAINMENT TAX (ET) i New Multiplex Cinema Hall of at least 3 screens with minimum capital investment of Rs.3.00 crores 100% of ET paid For 5 yearsShall apply within 1 year from the date of Production ii Existing cinema hall is upgraded to a multiplex and modernised with minimum investment of Rs. 1 crore 100% ET paid For 5 years  The above provision will be suitably replaced/ modified after GST is introduced IPR-20015 contd..

50. EMPLOYMENT COST SUBSIDY i)New and existing units undertaking E/M/D in Micro and Small sector- employing skilled and semi-skilled workers of domicile of Odisha as regular employees Male workers75% of expenditure on contribution for ESI and EPF 5 years Shall apply within Six months from the end of each Financial Year Female workers100% of expenditure on contribution for ESI and EPF 5 years ii)New and existing units undertaking E/M/D in Medium sector- employing skilled and semi-skilled workers of domicile of Odisha as regular employees. Male workers50% of expenditure on contribution for ESI and EPF 3 years Female workers100% of expenditure on contribution for ESI and EPF 3 years iii)New and existing Industrial units undertaking E/M/D in MSME and Priority Sector Skilled and semi- skilled workers of domicile of Odisha – displaced for the establishment of the said Indl unit as regular employees 100% of expenditure on contribution for ESI and EPF 3 years iv)New and existing Industrial units undertaking E/M/D in MSME and Priority Sector employing skilled and semi-skilled persons with Disabilities of domicile of Odisha as regular employees. Persons with Disabilities 100% of expenditure on contribution for ESI and EPF 5 years v)For Industrially Backward districts the Employment Cost Subsidy will be allowed for additional period of 2 years. IPR-20015 contd..

51. PATENT REGISTRATION New Industrial units and Existing Industrial units in Micro, Small & Medium Enterprises and Priority Sector taking up Expansion/ Modernization/ Diversification @ 100% of the registration cost up to maximum of Rs.10 Lakhs. Shall apply within 1 year from the date obtaining Patent Registration QUALITY CERTIFICATION New and Existing Industrial units in Micro, Small & Medium Enterprises and Priority Sector taking up Expansion/ Modernization/ Diversification For quality certification & its renewal for next consecutive two years i.e. for a period of 3 years @ 100% of the quality certification charges up to a total maximum limit of Rs.3 Lakhs. Shall apply within 1 year from the date obtaining Quality certification / its renewal ASSISTANCE FOR TECHNICAL KNOW-HOW New Industrial units in Micro, Small & Medium Enterprises and Priority sector Indigenous technology 100% of cost of technical know- how up to Rs.1 Lakh Shall apply within 1 year from the date of starting Production Imported technology. 100% of cost of technical know- how up to Rs.5 Lakhs IPR-20015 contd..

52. ENTREPRENEURSHIP DEVELOPMENT SUBSIDY To budding entrepreneurs to undergo Management Development Training in reputed national level institutions. 75% of course fee limited to Rs.50,000 per course Shall apply within 30 days of completion of Management Development ENVIRONMENTAL PROTECTION INFRASTRUCTURE SUBSIDY MSME adopting Zero Effluent or Waste Water Discharge (ZLD) Rs.20 Lakhs or 20% of capital cost of setting - up Effluent Treatment Plant (ETP) whichever is less. Shall apply within 1 year of operationalization of Pollution Control Equipment CAPITAL GRANT TO SUPPORT QUALITY INFRASTRUCTURE  To industrial parks / cluster parks promoted by private sector or industry association or user units in a cluster format. Quality infrastructure in the form of a capital Grant of 50% of the infrastructure cost with a ceiling of Rs.10 crore per park or cluster.  In the case of up-gradation of the existing parks / clusters for a similar support provided the park / estate / cluster is user- managed. Quality infrastructure in the form of a capital grant of 50% of total cost with a ceiling of Rs.5 crore provided the park / estate / cluster is user- managed. ANCHOR TENANT SUBSIDY Lead investment by a reputed investor to promote and facilitate further investment in the designated industrial Park / Estate (first tenant industry) 25% subsidy on cost of land Shall apply within Six months of approval under Single Window VAT Reimbursement for additional 2 years subject to the overall limit MARKETING SYNDICATION  OSIC / NSIC will act as Syndicate Leader for marketing of the products and services of Micro & Small Enterprises & collect service charges not exceeding 1% of sale value  OSIC/ NSIC shall act as a consortium leader for Micro & Small Enterprises and organize raw material supply at reasonable rate. MARKETING ASSISTANCE TO INDUSTRIES ASSOCIATIONS Marketing Assistance to Industries Association for participation of minimum 5 units in Odisha Pavilion in International Trade fairs abroad @ 50% of total rent subject to a maximum of Rs.10 Lakhs Shall apply at least 1 month before participating in the Trade Fair IPR-20015 contd..

53. FILM INDUSTRY a) All feature films produced fully or partly in Odisha Exempted from Entertainment Tax. b) Producers of films who utilize the facilities of Kalinga Studio Limited, Film & Television Institute of Odisha and Kalinga Prasad Colour Processing Laboratory Incentives in shape of subsidy subject to the ceiling limit and terms and conditions as may be laid down by OFDC. c) 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)Multiplexes/ Cinema Halls shall be eligible to get allotment of government/ IDCO land at concessional industrial rate. IPR-20015 contd..

54. EMPLOYMENT RATING BASED INCENTIVES ( PRIORITY SECTOR)  Special Incentives New Industrial Units & E M /D. PSUs shall not be eligible for these incentives. a) Power Reimbursement in Power Tariff per unit for a period of 5 years Shall apply within six months from the end of each Financial Year b)Training Subsidy The training subsidy shall be reimbursed only once for each trainee either for training of newly recruited trainee or for skill up-gradation. Shall apply within six months from the end of each Financial Year Land for Workers Hostels  D. Subsidy for plant and machinery To units in Auto and Auto Components, Agro and Food Processing, Textile including Technical Textile & Apparel, Pharmaceuticals and Plastics sectors as follows: ClassificationMax Capital Subsidy A1/ B110% of investment in Plant & M/c with a max. of Rs. 10.0 Cr Shall apply within 1 year of Production A2/ B210% of investment in Plant & M/c with a max. of Rs. 20.0 Cr Classification10% of investment in Plant & M/c with a max. of Rs. 50.0 Cr  Pioneer Units in each Priority Sector shall be eligible for extension of period of incentives for an additional two years over and above the period specified, provided the unit has been in continuous production during the normal period of incentive IPR-20015 contd..

55. THANKS