Odisha's IT policy reforms to boost employment, offer incentives to firms

The BJP-led Odisha government is most likely to unveil a new Information Technology (IT) policy. This will offer a range of concessions and exemptions to companies establishing campuses and operating within Odisha.

This move is designed to reduce bureaucratic hurdles and create a more business-friendly environment. The state government’s ambitious incentive scheme aims at invigorating employment within its burgeoning IT sector. Firms are set to receive a one-time financial contribution of Rs 25,000 for every local resident recruited into their services, with an upper limit of Rs 50 lakh per company over five years, commencing from the start of commercial operations.

The initiative, part of the draft Odisha IT Policy 2025, seeks to create a vibrant ecosystem for technology investments within the state. It intends to energise technological expansion by enhancing IT infrastructure, thereby positioning Odisha as a preferred destination for IT businesses.

The Indian technology industry remains on an impressive growth trajectory, spurred by heightened technology adoption across various sectors, including healthcare, education, and finance. The draft policy forecasts a significant escalation in India's tech exports by 11.4%, while domestic sector growth is projected at 4.9% per annum, driven by consistent investments from both corporate and governmental bodies.

Alongside recruitment incentives, the Odisha government will offer other appealing measures such as ready-to-use, encumbrance-free land, and subsidies on office space rental costs. Firms will also benefit from power concessions, tax incentives, and interest reimbursements on long-term loans. Additionally, internet bandwidth expenses will see a substantial subsidy, with a yearly reimbursement of up to ₹5 lakh for two consecutive years from the commencement of their operations.

To sharpen the state's competitive edge in research and innovation, the policy includes the reimbursement of 50% of research and development (R&D) expenditure, capped at Rs 10 crore, subject to governmental approval. This is available for academic institutions, R&D centres, and prestigious technical organisations.

For IT start-ups and deep-tech organisations, an impressive allocation of Rs 1,000 crore is envisioned in a support fund. This fund will provide aid through equity investments, convertible debentures, and project-based grants.

In a move to streamline operations, IT companies in Odisha will be exempt from routine inspections by the Labour Department and will be permitted to self-certify various records, in accordance with the legal provisions of the policy, except where specific complaints are lodged.