The Odisha government is contemplating remodelling its Industrial Policy Resolution (IPR), sensing competition from other states and in the pursuit of new investments. The IPR of Odisha was last revised in the year 2015.
Recently, Odisha surpassed four states to finish 11th in the ‘Ease of Doing Business’ ranking released in 2018. Although Odisha gained its score in compliance with Business Reforms Action Plan and earned the tag of ‘leader’, it lost ground to competing states in investor perception. The state now aims to be positioned among the top three states in ‘Ease of Doing Business’ ranking.
“We don’t want to lose the edge in drawing investments. The changing dynamics, investor perception and rising competition from other states cannot be wished away. Hence, we are going for a revamp of the existing IPR to accommodate new provisions. The new policy statement is likely to be unveiled in 2020,” said an official source.
The new industrial policy proposed will have focus sectors for setting up of small & medium enterprises across the state. Here are a few important changes:
- extension of credit at concessional rates to the eligible MSMEs (micro, small & medium enterprises)
- extending incentives announced under VAT (Value Added Tax) after the rollout of Goods & Services Tax (GST)
- introduction of several investor-friendly apps and to top it all a definitive portal – Government of Odisha Single Window Investor Facilitation & Tracking (GOSWIFT) – which tracks the entire life cycle of an investment, from proposal to implementation and beyond
Over the past four years, Odisha has intensified its efforts to attract investments. Make in Odisha, first held in 2016 attracted Rs 2.03 trillion worth of investment intents. The second edition organised in November 2018 fetched even better results with investors across sectors pledging Rs 4.19 trillion.