Bhubaneswar: In a major move to transform Odisha into an advanced tech hub, the state Cabinet on Wednesday approved the Third Amendment to the Odisha Semiconductor Manufacturing and Fabless Policy.
Aimed at expanding the state’s electronics manufacturing ecosystem, the updated policy introduces direct financial incentives and strategic support for critical supply chain components, advanced materials, research and development, and specialised inputs, aligning the state’s industrial push with the national India Semiconductor Mission (ISM) 2.0 framework.
First notified in September 2023 and updated in March 2024 and July 2025, the state’s semiconductor policy has already facilitated approvals for five major company proposals, including two projects supported under the national mission.
Under the newly approved third amendment, Odisha will offer an additional fiscal support of 25% on eligible capital expenditure (CapEx) for projects approved by the India Semiconductor Mission. This financial assistance will be released on a pari passu basis, matching the federal government’s milestone-based disbursements.
Beyond direct manufacturing and Assembly, Testing, Marking, and Packaging (ATMP/OSAT) units, the broadened scope encompasses semiconductor equipment manufacturing, semiconductor-grade chemicals, specialty gases, and advanced raw materials.
To draw large-scale investments into these niche sectors, the Cabinet has also included provisions for customised incentive packages for Mega Projects, which will be evaluated by a Chief Secretary-led High-Level Committee prior to Cabinet approval.
Officials anticipate that this comprehensive ecosystem shift will significantly cut import dependence, spur job creation across logistics and engineering sectors, and drive skill development for local MSMEs.
Alongside the semiconductor policy push, the Cabinet approved a proposal to launch OSWAS 3.0, the next-generation digital governance platform for state administration. Tata Consultancy Services (TCS) has been awarded the contract for implementation and five years of operational support at a negotiated value of ₹122.60 crore (excluding taxes). Re-engineered on a modern micro-services architecture augmented with artificial intelligence, the upgraded system builds on the expansion of OSWAS 2.0 across block and tehsil offices to deliver paperless, scalable, and secure administrative processing.