Cabinet Approves Odisha IT Policy 2022; Know Incentives & Other Features

Bhubaneswar: Information Technology (IT) Policy 2022 approved by the Odisha Cabinet was placed in the Assembly on Tuesday.

Parliament Affairs Minister Niranjan Pujari placed the decisions taken by the Cabinet under the chairmanship of chief minister Naveen Patnaik on the day. The IT Policy 2022, a major Cabinet decision, aims at generating employment and investment in the sector. It will be in operation for 5 years from the date of its Gazette Notification or till it is substituted by another policy.

According to a media release of Electronics and Information Technology department, the vision of new IT policy is to transform Odisha into a leading destination of investment for Information Technology in the country and position it prominently on the global map as a preferred IT outsourcing destination propelling employment opportunities and inclusive growth.

Following are the 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 crore. 15% of the cost of developing solar power plant subject to maximum of Rs 25 lakhs will be reimbursed. Greenfield IT Parks shall be eligible of 100% reimbursement of Stamp Duty/Registration Feel 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 crore will be accorded to eligible IT units.
3.Interest Subsidy:
Eligible IT units will be entitled to get an interest subsidy at 5% per year on term loans availed from recognised financial institutions and banks, subject to a maximum of Rs 10 crore per year for 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 lakh s per unit.
5.Incubation space rental Subsidy:
IT units with upto 40 employees will get subsidies on the rental of Incubation space for a maximum of 3 years based on their incubation space. Reimbursement upto Rs 1400 per seat per month for co-working space in designated IT Parks & Incubation Centers and Rs 1000 per seat per-month in notified private IT Park/IT Space.
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, SC/7 and disabled entrepreneurs.
7.Land Subsidy:
100% exemption of stamp duty on first transaction and 50% exemption on second transaction on lease/sale agreement of land or built-up space allotted by the government. The eligible units will be entitled to get 100% reimbursement of conversion fee and registration fee for 1st transaction.
8.SGST reimbursement:
Reimbursement of 100% state component of GST (SGST) for 5 years in Bhubaneswar Development Authority (BDA) area and for 7 years in non-BDA area subject to 100% of their Fixed Capital Investment (FCI).
9.Human Capital Investment Subsidy:
Recruitment assistance will 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 lakh per unit for 3 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 upto Rs 5 crore per annum for 3 years. For investment in non-BDA area,  reimbursement would be upto Rs 7 Crore.
10.Internet Connectivity Assistance:
Reimbursement at 50% of internet bandwidth charges per annum subject to a maximum of Rs 5 lakh per annum for 2 years.
11.Biju Innovation Lab:
Assistance of Rs 20 lakh for setting up and maintenance of Biju Innovation Lab for 5 years.
12. Incentives for Centre of Excellence (CoE):
In order to promote CoE in engineering colleges and educational institutes, 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 (IoT), Machine Learning (ML), Clean-tech, Edu-tech, Agri-Tech, Health-tech and other emerging technologies will  be eligible for additional incentive.

Amendment to Odisha Mobile Towers, Optical Fibre Cable and related Telecom Infrastructure Policy, 2017

The Cabinet also approved amendment to Odisha Mobile Towers, Optical Fibre Cable (OFC) and related Telecom Infrastructure Policy, 2017. The amendment was necessitated as the 2017 Policy does not have a “deemed approval” clause which results in delay in decision on grant of permission on erection of towers, micro communication equipment, in-building solutions etc. The missing clause also renders the policy non-aligned with the Central rule, Indian Telegraph Right of Way Rules, 2016 which has made it mandatory to grant permission for underground and
overhead telegraph infrastructure within 60 days of the application.

The proposed amendment in the policy aims to incorporate deemed approval clause in the Odisha Mobile Towers, Optical Fibre Cable and related Telecom Infrastructure Policy, 2017 as per the Indian Telegraph Right of Way Rules, 2016 and also the amendments made in this Rule in 2019.