Insight Bureau: With an aim to generate employment and attract investment in the IT field, Odisha Cabinet on Tuesday approved the Odisha IT Policy 2022.
The vision of new IT policy is to transform Odisha into a leading destination of investment for Information Technology in the country.
The policy will be in operation for 5 years from the date of its Gazette Notification or till it is substituted by another policy.
Highlights of the Odisha IT Policy 2022:
1. Specific incentive for IT parks:
25% of fixed capital investment will be provided as capital subsidy limited to Rs. 20 Crores. 15% of the cost of developing solar power plant subject to maximum of Rs. 25 Iakhs will be reimbursed. Greenfield IT Parks shall be eligible of 100% reimbursement of stamp Duty/ Registration Fee/ Conversion Fee.
2. Capital investment subsidy:
30% of fixed capital investment in buildings and infrastructure, excluding the cost of land subject to a maximum of Rs. 3 Cr. shall be accorded to eligible IT units.
3. Interest Subsidy:
Eligible IT units will be entitled to get an interest subsidy at 5% per annum on term loans availed from recognized financial institutions and banks, subject to a maximum of Rs. 10 Crores per year for a period of 5 years from the date of commencement of commercial operation.
4. Power Incentive:
Exemption of Electricity duty and Electrical Inspection Fee for 5 years. There will be reimbursement of electricity tariff at 30% for 3 years capped at Rs. 35 lakhs per unit.
5. Incubation space rental Subsidy:
IT units with up to 40 employees will get subsidies on the rental of Incubation space for a maximum of 3 years based on their Incubation space. Reimbursement u p to Rs. 1400/- per seat per month for Co-working space in designated IT Parks & Incubation Centers approved by Government and Rs. 1000/- per seat per month in notified private IT Park/IT Space.
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6. Lease rental Subsidy:
Eligible IT units hiring buildings on rent for operating their centers will be entitled for a subsidy of 75% of the actual rent paid or Rs. 20 per sq. ft. per month whichever is lower. An additional 25% lease rental limited to 5 lakhs per annum will be provided to women, and disabled Entrepreneurs.
7. Land Subsidy:
100% exemption of stamp duty on first transaction and 50% exemption on the second transaction on lease / sale agreement of land or built-up space allotted by Government. The eligible units will be entitled to get 100% reimbursement of the conversion fee and registration fee for 1st transaction.
8. SGST reimbursement:
Reimbursement of 100% state component of GST (SGST) for a period of 5 years in Bhubaneswar Development Authority (BDA) Area and for a period of 7 years in non -BDA Area subject to 100% of their Fixed Capital Investment (FCI).
9. Human Capital Investment Subsidy:
Recruitment Assistance shall be provided at Rs. 10,000 per newly recruited employee at executive level who are domiciles of Odisha with a maximum limit of Rs. 10 Lakhs per unit for a period of 03 years. Additional Rs. 1000 per employing women, SC/ST and Physically Disabled employees. 100% reimbursement of the expenditure incurred towards contribution for ESI and EPF of employees of IT units who are domicile of Odisha up to Rs. 5 crore per annum for a period of 03(three)years. For investment in non-BDA area, reimbursement would be up to Rs. 7 Crore.
10. Internet Connectivity Assistance:
Reimbursement at 50% of Internet bandwidth charges per annum subject to a maximum of Rs 5 lakhs per annum for a period of 2 years.
11. Biju Innovation Lab:
Assistance of Rs. 20 lakhs for setting up of and maintenance of Biju Innovation Lab for 5 years will be provided.
12. Incentives for Centre of Excellence(CoE):
In order to promote CoE in engineering colleges and educational institutes in Odisha, various incentives will be provided in the form of marketing assistance, Quality Certification assistance, Patent Registration assistance, Bandwidth Connectivity assistance, Interest Subsidy and investment Subsidy etc.
13. Emerging Technologies Incentive:
Companies/Units investing in the area of Artificial Intelligence(AI), Cyber Security, Extended Reality(XR), Automation, Blockchain, Big Data, Cloud Computing, Internet of Things (loT), Machine Learning(ML), Clean-technology, Education-technology, Agriculture-Technology, Health-technology and other emerging technologies shall be eligible for additional incentive.
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