Odisha is moving forward to establish itself as a significant IT Powerhouse in India, with plans to generate 50,000 employment opportunities in the sector within the next few years. The State government has developed a comprehensive strategy to attract more investors to the IT industry by offering attractive incentives, according to official sources.
The new IT policy, which is awaiting cabinet approval, promises companies benefits such as reduced electricity costs, lower office rents, and capital investment incentives. There are plans to enhance internet connectivity through underwater cables from Singapore and Malaysia, along with setting up a data center in Puri to strengthen digital infrastructure.
Investment Incentives
To foster growth in the IT sector, the government is offering a range of incentives. These include exemptions on electricity bills up to Rs 35 lakh and a 30% discount on capital investments for projects valued up to Rs 100 crore. For projects between Rs 100 crore and Rs 200 crore, a 25% reduction is available, while projects exceeding Rs 200 crore will receive a 20% concession. Additionally, IT startups and companies leasing office spaces can benefit from 50% rent reimbursement for three to five years, a 30% reduction in electricity bills up to Rs 35 lakh, and annual internet fee coverage of up to Rs 12 lakh during the initial five years.
Must Read: Odisha’s IT Sector Set for Growth with New Policy Incentives and Job Creation Focus
Criticism and Commitment
The BJP has expressed dissatisfaction with the previous government’s policies, labeling them as insufficient. In contrast, Minister Mukesh Mahaling highlighted the current government’s commitment to fulfilling its promises. He noted that the previous government’s 2022 IT policy remained unimplemented, while the current draft policy is available online. The government’s goal is to attract more investors to the IT sector.
IT Sector Expansion
The budget has allocated specific funds to enhance the IT sector. Odisha plans to establish eight new Software Technology Parks of India (STPI) centers, complementing existing ones, with proposed locations at Keonjhar and Koraput. This initiative involves substantial investment, totaling several crores. The State is actively gathering input from local and international IT experts and investors to refine the new policy, as noted by the Minister. This collaborative approach aims to ensure the policy meets the needs of both domestic and international stakeholders.
