Policies of Government of Odisha
Facilitation for promotion of Micro, Small &
Medium Enterprises
Director of Industries, Odisha,
Micro, Small & Medium Enterprises Department
Definition of Micro, Small & Medium Enterprises
The definition of Micro, Small & Medium Enterprises is laid down by
Government of India in Micro, Small & Medium Enterprises Development Act,
2006
Categories
Manufacturing
(Investment in Plant & Machinery)
Services
(Investment in Equipments)
Micro
Does not exceed ₹25 lakh
Does not exceed ₹10 lakh
Small
More than ₹25 lakh but does not More than ₹10lakh but does not
exceed ₹5 crore
exceed ₹2 crore
Medium
More than ₹5 crore but does not More than ₹2 crore but does
exceed ₹10 crore
not exceed ₹5 crore
POLICY PROVISIONS
Easing of doing business involves
• Appropriate policy framework
• Transparency in implementation
• Definite timeline for disposal
Policy Frameworks
Sl
1.
2.
3.
4.
5.
6.
7.
Notifications / Policies
Odisha Industries (Facilitation) Amendment
Rules, 2015
Industrial Policy Resolution, 2015
Odisha Food Processing Policy, 2013
Micro,
Small
&
Medium
Enterprises
Development Policy, 2009
Odisha Procurement Preference Policy For
Micro & Small Enterprises, 2015
Odisha Youth Innovation Fund Scheme
Cluster Approach
Odisha Industries (Facilitation)
Amendment Rules, 2015
Initiatives for implementation
 Online Udyami Aadhar







acknowledgement replacing the earlier
Entrepreneurs memorandum
Strengthening of Odisha Industries (Facilitation) Rules through
amendment in 2015
Coverage of services under Odisha Right to Public Service Act, 2012
Initiatives for online administration of selected incentives under
Industrial Policy Resolution, 2007 & MSME Development Policy, 2009
District Level Facilitation Cell, involving representatives from
Industries, made operational in Regional / District Industries Centres
to guide & mentor entrepreneurs.
54 activities notified as Green Category by Forest & Environment
Department for fast track clearance.
Central Inspection Framework to rationalize inspection of industries
Labour reforms
Feature of District Level Facilitation Cell
 Constituted vide Industries Department Notification
No. 4086 dated 23.06.2015 under the Chairmanship of
General Manager, RIC / DIC with representatives from
line departments & Industries Associations.
 Cell focuses on actualization of investment through
one-stop facilitation process.
 Major
function of the Cell include guidance &
mentoring of investors; assessment the project, land
and utility requirements; assistance in filing Combined
Application Form & following-up on approvals from
respective line Departments beyond the powers
delegated to the members .
Process Flow under OIFR, 2015
Investor
having no land
Investor having less than
25% of required land
Investor having 25% or
more of required land
CAF Schedule I for assessment of
land & utility Through DLNA
DLFC
CAF Schedule IA for Clearance
through DLNA for recommendation
Recommendation for availability of land
Decision in DSWCA
DLNA
Concerned Authority
Decision of Concerned Authority communicated to proponent
42 Clearances included within maximum 60 days.
Timeline for Consent / Approval (OIFR, 2015)
Sl.
Department
No.
Energy
1.
2.
Disposal of Application
Time Limit
(Working Days)
DISCOMs
Time taken from request for connection to release of
connection where infrastructure is available
Time taken from request for connection to release of
connection where infrastructure is not available
15
30
Environment &
Forests
3.
Consent to establish
a.
‘A’ Category after obtaining environmental clearance
60
b.
‘B’ Category after obtaining environmental clearance
45
c.
‘C’ Category
30
4.
Permission under Hazardous
Management) Rules
Consent to Operate
5.
Waste
(Handling
&
30
a.
‘A’ Category after obtaining environmental clearance
60
b.
‘B’ Category after obtaining environmental clearance
45
c.
‘C’ Category
30
Timeline for consent & approval
Sl.
Department
No.
Labour & ESI
Disposal of Application
Time Limit
(Working Days)
Directorate of Factories and Boilers
6.
Approval of Factory Plan for Non-Hazardous factories
30
7.
Approval of Factory Plan for Hazardous factories
60
8.
90
9.
Approval of Factory Plan for Major Accident Hazard
(MAH) factories
Registration and Licensing of Factories
10.
Renewal/Amendment/Transfer of factory license
30
11.
Issue of duplicate license
30
12.
15
13.
Inspection of Boilers & issue of provisional orders to
operate boilers
Approval of repair order of Boilers
14.
Steam pipeline drawing approval
30
15.
Registration of Boilers
30
16.
Endorsement of Certificates of Boiler Operation Engineers,
Boiler Attendants and Welders issued by other States
Revalidation of Welders’ certificates
15
17.
60
15
15
Sl. No.Department
Labour & ESI
18.
Disposal of Application
Timeline for consent & approval
Time Limit
(Working Days)
Labour Commissioner
Registration under Odisha Shop and Commercial
Establishment Act,1956
Renewal of Registration under Odisha Shop and
Commercial Establishment Act,1956
Contract Labour(R & A)Act,1970
i)Registration (one time)
ii)Licence
iii)Renewal (annual)
Industrial Employment Standing Order Act, 1946
19.
20.
21.
Housing & Urban
Development
15
15
15
45
UDA/Municipalities
22.
Building Plan Approval
60
23.
30
24.
Issuance of Occupancy Certificate (Applicable to
Bhubaneswar Development Authority and other
Development Authorities & ULBs
Trade License
25.
Water Connection
45
26.
Conversion of Land Use under master plan
60
15
Sl. No.Department
Finance
Disposal of Application
Timeline for consent & approval
Time Limit
(Working Days)
Commercial Taxes
27.
Registration under VAT Act
3
28.
Registration under CST Act
3
29.
Registration for Profession Tax
3
30.
Sanction of incentives under IPR 2015
30
Industries
IDCO
33.
Decision on Land Allotment within IDCO Estates outside BMC
Area
Allotment Letter after receipt of recommendation letter from
Single Window Authority
Execution of Lease Agreement subject to compliance of T & C
of allotment
Issue of Possession Certificate
34.
Decision on Land Allotment within IDCO Estates within BMC
Area
Allotment Letter after receipt of recommendation from HLCC
30
35.
Execution of Lease Agreement subject to compliance of T & C
15
36.
Issue of Possession Certificate
15
31.
32.
30
15
15
Sl. No.Department
Disposal of Application
Timeline for consent & approval
Time Limit
(Working Days)
MSME
37.
Approval of EM-I*
1
38.
Approval of EM-II*
2
39.
Sanction of Interest Subsidy, Capital Investment Subsidy
and VAT Reimbursement
Directorate of Fire
30
No Objection Certificate
30
Conversion of land use in all other areas (except ULBs)
60
License under Drug and Cosmetics Act
30
Home
40.
Revenue & Disaster
Department
41.
Health & Family
Welfare
42.
• Entrepreneur Memorandum has been discontinued by Ministry of
MSME, Government of India from 18.09.2015
• On-line filing of application through e-biz portal has been enabled from
14.2.2016 by logging in to https://www.ebiz.gov.in/.
INDUSTRIAL POLICY RESOLUTION, 2015
IPR-20015 contd..
 Effective Date- 24. 08.2015.
 Eligibility- Units made 1st. Fixed Capital Investment
after the Effective Date (24.08.2015) and commence
Production within 3 years for MSME and 5 years for
Large Industries of 1st. F C I
 Existing Units taking up Expansion / Modernization /
Diversification
 Units as enshrined in Annexure-ll, Schedule- Point (3)
of IPR, 2015 (Negative list) shall not be eligible for
fiscal incentives under this policy
IPR-20015 contd..
1) “Pioneer Units” mean the first five industrial units of each Priority Sector which commence
fixed capital investment and go in to production during the operative period of this IPR.
2) “Priority Sector” means–Industrial units fall within following categories:
Sl.
Category
a.
Agro and Food Processing
Ancillary and Downstream
Automobiles and Auto-components
Manufacturing in Aviation and Maintenance Repair &Overhaul (MRO)
Bio-technology
Fly ash & Blast furnace slag based industries utilizing a minimum of 25% by weight as base raw material
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.
p.
q.
r.
s.
t.
u.
Gem stone cutting and polishing
Handicraft, Handloom, Coir and Leather products
Information technology, IT enabled service and ESDM units
Petroleum, Chemicals & Petro-chemicals
Pharmaceuticals
Plastics and Polymers
Sea food Processing
Shipbuilding and construction of other floating vessels/ Ship repair
Textile including Technical Textile & Apparel
Tourism and Hospitality (All the units/activities specified in Para 6.11 of Odisha Tourism Policy -2013 are
eligible units)
Any industry other than mineral extraction and mineral based, which exports more than 50% of its total
turnover, duly certified by the Director, E P & M
Migrated industrial units treated as new industrial units under Priority sector
Rehabilitated sick industrial unit treated at par with new industrial unit under Priority sector
Industrial unit seized under the S F C Act 1951/ S A R F A E S I Act, 2002 and thereafter sold to a new
entrepreneur on a sale of asset basis and treated as new industrial unit for the purpose of this IPR
Non-mineral based new industrial units located in industrially Backward districts with minimum investment of
five crore rupees in plant & machinery
IPR-20015 contd..
IPR-20015
contd.
3. Category of Districts for Administration of Incentives
Category
Districts
A
All other districts other than Category B
B
Industrially Backward Districts- Kalahandi, Nuapada, Bolangir,
Subarnpur, Koraput, Malkangiri, Rayagada, Nawrangpur,
Kandhamal, Gajapati and Mayurbhanj.
IPR-20015 contd..
IPR-20015
contd.
4. Land at Concessional Rate
Zone
A
B
Location
Concessional Industrial Land Rate
(Rs. Lakhs / Acre)
Urban areas under the jurisdiction of Bhubaneswar Municipal Rs. 125 Lakhs/ Acre
Corporation area.
Urban areas under the jurisdiction of Development Authorities Cuttack, Rourkelaof Cuttack, Rourkela, Berhampur, Sambalpur, Paradeep, Puri,
Angul and Jharsuguda
Berhampur, Sambalpur,
Paradeep, Puri, Angul,
Jharsuguda–
Municipal / NAC area
C
D
E
F
Rs.60 Lakhs /
Acre
Rs. 30 Lakhs /
Acre
Other than Municipal /
NAC Area
Revenue Sub-Divisions of Bhubaneswar (except BMC area), Rs. 15 Lakhs / Acre
Khurda, Angul, Cuttack, Jharsuguda, Panposh, Puri, Sambalpur.
Revenue Sub-Divisions of Athagarh, Balasore, Berhampur, Rs.10 Lakhs / Acre
Chhatrapur, Champua, Dhenkanal, Jagatsinghpur, Jajpur,
Keonjhar, Talcher
Rs. 6 Lakhs / Acre.
Revenue Sub-Division of Banki, Baripada, Bhadrak, Baragarh,
Bolangir, Jeypur, Koraput, Rayagada, Sundargarh
Revenue Sub-Divisions – Anandpur, Athamalik, Baliguda,
Bamanghati, Bhanjanagar, Bhawanipatna, Birmaharajpur, Bonai,
Boudh,
Deogarh,
Dharmagarh,
Gunupur,
Hindol,
Kamakshyanagar,
Kaptipada,
Kandhamala,
Kendrapada,
Kuchinda, Malkangiri, Nabrangpur, Nayagarh, Nilagiri,
Nuapada, Padampur, Pallahara, Panchpir, Paralakhemundi,
Patnagarh, Rairakhol, Sonepur, Titilgarh
Rs. 6 Lakhs / Acre
Rs. 2 Lakhs / Acre
Rs. 3 Lakhs / Acre
Rs. 1 Lakh / acre
Rs. 4 Lakhs / Acre
 Ground Rent will be paid @ 1% of the land value
10% of the land for large projects limiting to 300 Acre shall be earmarked for ancillary &
downstream industrial park
IPR-20015 contd..
5.Exemption of premium on conversion of Ag. Land for Industrial Use
New Industrial units and existing industrial units taking up E / M / D, new Industrial units and existing
industrial units in Priority Sector taking up Expansion / Modernization / Diversification (E / M /D)
Category
Quantum
Time Frame
Micro & Small Sector
100 % up to 5 Acres
Medium Sector
75 % up to 25 Acres
Large Sector
50 % up to 500 Acres
Priority Sector
100% up to 100 Acres & 50% for balance area
Shall apply
within the
period of implementation
ie 3 years for New MSMEs
& 5 years for New Large
Industries
6. Stamp Duty Exemption
 No stamp duty for land allotted by the Govt to IDCO or Govt / IDCO to Private Industrial Estate
Developers
 Transfer of land / shed by Govt, IDCO & Private Industrial Estate Developers to new industrial units and
existing industrial units acquiring fresh land for E / M / D
Category
Micro & Small Sector
Medium Sector
Large Sector
Priority Sector
Quantum
@ 75 % of Stamp duty
@ 50 % of Stamp duty
@ 25 % of Stamp duty
@ 100% of Stamp duty
Time Frame
Shall apply at the time
execution of required deed
of
 Transferred to a new owner / management under the provisions of the SFC Act, 1951 or under
SARFAESI Act 2002 or on the recommendation of the SLIIC.
 Units under proprietary /partnership firms to be converted to companies for rehabilitation on the
recommendation of the SLIIC.
 Where reconstruction and amalgamation of Companies is sanctioned by the Court under Section 394 of
the Companies Act ( Subject to conditions enunciated in IPR)
 Loan agreements, credit deeds, mortgages and hypothecation deeds executed by the Indl Units in
favour of Banks or Financial Institutions shall be allowed 100% exemption from stamp duty.
IPR-20015 contd..
7. Interest Subsidy
 New MSME and non MSME Priority sector units @ 5% per annum on term loan for Five years / Seven
years for Industrially Backward districts from the date of commencement of production
 Guarantee fee charged under CGTMSE will be reimbursed to Micro & Small Enterprises
Category
Quantum
Micro Enterprises
Small Enterprises
Medium Enterprises
Non-MSME Priority Sector Units
Rs. 10 Lakhs
Rs. 20 Lakhs
Rs. 40 Lakhs
Rs. 1 crore .
Time Frame
Shall apply within six months
from end of each financial year
8. Energy
Exemption of electricity duty for 5 years
Category
New MSMEs
New units in Priority Sector
Contract Demand
Contract demand up to 500 KVA
Contract demand up to 5 MVA
New & existing industrial units setting up Captive Power Plant with
non-conventional sources & bio-fuel as Green Energy Subsidy
Time Frame
Shall apply within 1 year from the
date of Production
Shall apply within 1 year from the
date of Commissioning
 Seasonal Units such as food processing, sugar, salt and cotton ginning & pressing unit shall be allowed
for temporary surrender of a part of their contract demand as per norms of OERC.
 One-time reimbursement of cost of Energy Audits
Category
Micro Enterprises
Small Enterprises
Medium Enterprises
Quantum
Rs. 1 Lakh
Rs. 2 Lakhs
Rs. 3 Lakhs
Time Frame
Shall apply within 1 year from
the date implementation of
Audit
IPR-20015 contd..
9. VAT Reimbursement
Sl.
Category
Quantum
Period Maximum
i)
New MSMEs
75% of VAT paid
Five (5)
years
Seven (7)
years
ii)
Time Frame
Limited to 100% of Shall apply within
cost of Plant & M/c
six months from
Limited to 200% of the end of each
Financial Year
cost of Plant & M/c
New Industrial units 100% of VAT paid
in Priority Sector
iii)
Existing MSME taking 75% of VAT paid on Five (5) Limited to 100% of
up E / M / D
increased production years
additional cost of plant
& M/c for E/M/D
iv)
Existing
industrial 100% of VAT paid on Seven (7) Limited to 200% of
units in Priority sector increased production years
additional cost of Plant
taking up E / M / D
&M/c acquired for
taking up E/M/ D
v)
New Pioneer Units 100% of VAT paid
Nine (9) Limited to 200% of
under each Priority
years
cost of Plant & M/c
Sector
vi)
Anchor Tenant in each 100% of VAT paid
Nine (9) Limited to 200% of
industrial park
years
cost of Plant & M/c
NB: Above provision will be suitably replaced / modified after Goods and Services Tax (GST) is introduced
10. Entertainment Tax
Category
Quantum
i. New Multiplex Cinema Hall of at least 3 screens with 100% of ET
minimum capital investment of Rs.3.00 crores
paid
ii. Existing cinema hall is upgraded to a multiplex and 100% ET paid
modernised with minimum investment of Rs. 1 crore
Time Frame
For
years
For
years
5 Shall apply within 1
year from the date of
5 Production
NB: Above provision will be suitably replaced / modified after Goods and Services Tax (GST) is introduced
IPR-20015 contd..
11. Entry Tax Reimbursement
Sl.
Item
i)
Plant
& New MSMEs and 100% of Entry Tax
paid
on
Machinery Priority Sector
acquisition
of
plant & M/c
Existing industrial 100% of Entry Tax
on
units in MSMEs & paid
Priority Sector units additional
acquisition
of
taking up E/M/D
plant & M/c
New MSMEs and 100%
Raw
of Entry
Materials Priority Sector units Tax paid
Existing
industrial 100% of Entry Tax
units in MSMEs & paid
on
Priority Sector units additional
raw
taking up E/ M/ D materials
New Pioneer Units 100% of Entry Tax
under each Priority paid
Sector
ii)
Category
Quantum
Period
Maximum
One
time
─
One
time
─
Time Frame
Shall
apply
within 1 year
from the date
of Production
Five
years
Five
years
100% of cost of Shall
apply
within
six
Plant & M/c
from
100% of cost of months
additional Plant and the end of each
financial year
machinery
Seven
years
100% of cost
plant & M/c
of
NB: Above provision will be suitably replaced / modified after Goods and Services Tax (GST) is introduced
IPR-20015 contd..
12. Employment Cost Subsidy
 New and existing units undertaking E/M/D employing skilled and semi-skilled workers of domicile of
Odisha as regular employees shall be reimbursement expenditure on contribution for ESI and EPF
Sl.
i.
ii.
iii.
iv.
Category of Enterprise
Category of Employee
Quantum
Period
Time Frame
Shall apply within
Six months from
the end of each
Financial Year
Micro Enterprises & Small Male workers
Enterprises
Female workers
75%
5 years
100%
5 years
Medium Enterprises
50%
3 years
100%
100%
3 years
3 years
100%
5 years
Male workers
Female workers
Priority Sector
Skilled and semi-skilled
workers of domicile of
Odisha –displaced for the
establishment of the said
Indl unit as regular
employees
New and existing Industrial Persons with Disabilities
units undertaking E/M/D in
MSME and Priority Sector
NB: For Industrially Backward districts the Employment Cost Subsidy will be allowed for additional period of 2
years
13. Patent Registration
 New Industrial units and Existing Industrial units in Micro, Small & Medium Enterprises and Priority
Sector taking up Expansion/ Modernization/ Diversification
Quantum
Time Frame
@ 100% of the registration cost up to maximum of Rs.10 Shall apply within 1 year from the date
Lakhs.
obtaining Patent Registration
14. Quality Certification
IPR-20015 contd..
 New and Existing Industrial units in Micro, Small & Medium Enterprises and Priority Sector taking up
Expansion/ Modernization/ Diversification
Quantum
Time Frame
For quality certification & its renewal for next consecutive two Shall apply within 1 year from the date
years i.e. for a period of 3 years @ 100% of the quality obtaining Quality certification / its renewal
certification charges up to a total maximum limit of Rs.3
Lakhs.
15. Assistance for Technical Know-how
New Industrial units in Micro, Small & Medium Enterprises and Priority sector
Type
Quantum
Time Frame
Indigenous technology 100% of cost of technical know- how up to Rs.1 Lakh Shall apply within 1 year from
Imported technology. 100% of cost of technical know- how up to Rs.5 Lakhs the date of starting Production
16. Entrepreneurship Development Subsidy
 Budding entrepreneurs to undergo Management Development Training in reputed national level
institutions
Quantum
75% of course fee limited to Rs.50,000 per course
Time Frame
Shall apply within 30 days
Management Development
of
completion
of
17. Environmental Protection Infrastructure Subsidy
MSME adopting Zero Effluent or Waste Water Discharge (ZLD)
Quantum
Time Frame
Rs.20 Lakhs or 20% of capital cost of setting - up Effluent Shall apply within 1 year of operationalization
Treatment Plant (ETP) whichever is less.
of Pollution Control Equipment
18. Capital Grant to Support Quality Infrastructure
Category
IPR-20015 contd..
Quantum
• To industrial parks / cluster parks promoted by private sector Quality infrastructure in the form of a capital Grant of 50% of the
or industry association or user units in a cluster format.
infrastructure cost with a ceiling of Rs.10 crore per park or cluster.
• In the case of up-gradation of the existing parks / clusters for Quality infrastructure in the form of a capital grant of 50% of
a similar support provided the park / estate / cluster is user- total cost with a ceiling of Rs.5 crore provided the park / estate /
managed.
cluster is user- managed.
19. Anchor Tenant Subsidy
 Lead investment by a reputed investor to promote and facilitate further investment in the designated
industrial Park / Estate (first tenant industry)
Quantum
Time Frame
25% subsidy on cost of land
Shall apply within
Six months of
VAT Reimbursement for additional 2 years subject to the overall limit approval under Single Window
20. Marketing Syndication


OSIC / NSIC will act as Syndicate Leader for marketing of the products and services of Micro & Small
Enterprises & collect service charges not exceeding 1% of sale value
OSIC/ NSIC shall act as a consortium leader for Micro & Small Enterprises and organize raw material
supply at reasonable rate.
21. Marketing Assistance to Industries Association
 Marketing Assistance to Industries Association for participation of minimum 5 units in Odisha Pavilion
in International Trade Fairs abroad
Quantum
Time Frame
@ 50% of total rent subject to a maximum of Rs.10 Shall apply at least 1 month before participating in the
Lakhs
Trade Fair
IPR-20015 contd..
22. Film Industry
Sl.
a)
b)
c)
d)
Category
Incentive
All feature films produced fully or partly in Exempted from Entertainment Tax.
Odisha
Producers of films who utilize the facilities of Incentives in shape of subsidy subject to the ceiling
Kalinga Studio Limited, Film & Television limit and terms and conditions as may be laid down
Institute of Odisha and Kalinga Prasad Colour by OFDC
Processing Laboratory
Soft loan assistance at a nominal rate of interest subject to maximum ceiling limit and on conditions
as may be decided by OFDC to producers of films in the State.
Multiplexes/ Cinema Halls shall be eligible to get allotment of government/ IDCO land at
concessional industrial rate.
23. Employment Rating based Incentive (Priority Sector)
Sl.
Type
a)
Power
b)
c)
d)

Incentive
Time Frame
Reimbursement in Power Tariff per unit for a period of 5 years
Shall apply within six months from
the end of each Financial Year
Training The training subsidy shall be reimbursed only once for each trainee Shall apply within six months from
Subsidy either for training of newly recruited trainee or for skill up-gradation.
the end of each Financial Year
Land for Workers Hostels
Subsidy for Plant and Machinery To units in Auto and Auto Components, Agro and Food Processing, Textile including Technical Textile & Apparel,
Pharmaceuticals and Plastics sectors as follows:
Classification
Max Capital Subsidy
A1 / B1
10% of investment in Plant & M/c with a max. of Rs. 10.0 Cr
A2 / B2
10% of investment in Plant & M/c with a max. of Rs. 20.0 Cr
A3 / B3
10% of investment in Plant & M/c with a max. of Rs. 50.0 Cr
Pioneer Units in each Priority Sector shall be eligible for extension of period of incentives for an additional two years
over and above the period specified, provided the unit has been in continuous production during the normal period
of incentive
IPR-20015 contd..
Activities not eligible for fiscal incentives as per IPR 2015 but eligible for investment facilitation,
allotment of land under normal rules at benchmark value/ market rate and recommendations to the financial
institutions for term loan and working capital and to the Power Distribution Companies.
Sl.
01
Name of Activity
Sl
Name of Activity
Hullers and Rice mills with investment in plant and machinery of less than Rs.25
Lakhs for industrially backward districts and less than one crore rupees for
other areas
Flour mills including manufacture of besan, pulse mills and chuda mills except
investment in plant & machinery of more than Rs.25 Lakhs for industrially
backward districts and less than Rs. 1 Crore for other areas (excluding Roller
Flour Mills)
Processing of spices with investment in plant and machinery with less than
Rs.10 Lakhs for industrially backward districts and less than two crore rupees
for other areas
Units without Spice-mark or Agmark
20
Units for physical mixing of fertilizers.
21
Brick-making units (except units making refractory bricks and those
making bricks from flyash, red mud and similar industrial waste not less
than 25% as base material).
22
Manufacturing of tarpaulin out of canvas cloth with investment in plant
and machinery of less than Rs. 20 Lakhs
23
Saw mill, sawing of timber.
24
Carpentry, joinery and wooden furniture making except when part of a
wood based cluster of at least 20 units
25
Drilling rigs, Bore-wells and Tube-wells
06
07
Confectionary with investment in plant and machinery with less than Rs.10
Lakhs for industrially backward districts and less than two crore rupees for
other areas.
Oil Mills with expellers including oil processing, filtering, de-colouring,
colouring, refining of edible oils and hydro-generation there-of except
investment in plant & machinery of Rs.10 Lakhs in Indl. backwards areas.
Preparation of sweets and savouries etc.
Bread-making (excluding mechanised bakery)
26
27
08
09
Mixture, Bhujia and Chanachur preparation units
Manufacture of Ice candy
28
29
10
11
12
13
Manufacture and processing of betel nuts
Hatcheries, Piggeries, Rabbit or Broiler farming
Standalone Sponge Iron plants
Iron and Steel Processors, such as cutting of sheets, bars, angles, coils, M.S.
sheets, recoiling, straightening, corrugating, drop hammer units etc. with low
value addition
Cracker-making units
Tyre retreading units with investment in plant and machinery of less than Rs.20
Lakhs
Stone crushing units.
30
31
32
33
Units for mixing or blending / packaging of tea
Units for cutting raw tobacco and sprinkling jaggery for chewing purposes
and Gudakhu manufacturing units
Units for bottling of medicines
Bookbinding / Rubber stamp making / Making notebooks, exercise
notebooks and envelopes.
Distilled water units
Tailoring (other than readymade garment manufacturing units)
Repacking / stitching / printing of woven sacks out of woven fabrics
Pre- processing of oil seeds- decorticating, expelling, crushing, parching,
and frying
02
03 a.
03.b.
04
05
14
15
16
34
35
36
Aerated water and soft drink units
Bottling units or any activity in respect of IMFL or liquor of any kind
Size reducing / size separating units / Grinding / mixing units with
investment in plant & machinery of less than ten crore rupees except
manufacturing of Cement with clinker
Polythene less than 40 micron in thickness / recycling of Plastic materials
17
Coal / Coke screening, coal washing, Coal/ Coke Briquetting.
37
Thermal power plants
18
Production of firewood and charcoal
38
Repackaging units
19
Painting and spray-painting units with investment in plant and machinery of
39
Rs.20 lakhs
Note:less
Listthan
of Industrial
units indicated above may be modified by the Government from time to time
ODISHA FOOD PROCESSING POLICY, 2013
OFPP, 2013
Eligible items
Activity
Item includes
Agro and Marine
processing
Grading
Grinding
Cutting/ cubing/dicing
Sorting
Packing
Waxing
Drying
Irradiation any value add activity
Remarks
Dehydrated packing, vacuum packing,
nitrogen sachet packing, tetra packing,
canning, bottling
Spray drying dehydration
Agricultural, horticulture and forest
produce
Projects in hi-tech and bio-technology based agriculture
Food Processing
Agro Infrastructure
providers
Quality assurance
providers
Research and
Human Resource
Development
Processing of ready-to-eat or ready-to-cook food and
manufacturing of additives
Preservatives
Colors and fragrant
Manufactures for food products.
Warehouse
Cold storage
Transportation food items
Processing machinery producers
Food testing laboratory
Reefer vans/ containers
Certification agencies
Research & Development
Product & Crop Development Institutes
Human Resource Development
Courses in Food Processing, Agro
Management
Illustrative list of eligible items:
Sl
OFPP, 2013
7.
Items /Activities
Fruit and Vegetable Processing, including grading / packing;
Food grain milling / processing, using modern technology and equipment;
Dairy products (including milk processing and milk based products);
Processing of Poultry, eggs, meat and meat products;
Fish Processing including shrimps;
Bread, oilseed meals (edible), breakfast foods (such as cornflakes, oats and muesli),
biscuits, confectionery (including cocoa processing and chocolate), oil expellers
and refining, malt extracts, protein isolates, high protein foods, weaning food,
extruded / other ready to eat food products and all other processed foods
(excluding non-packed food items served in Hotels and Restaurants of all
categories);
Fruit based ready to serve beverages;
8.
Produce of animal husbandry
9.
Spices and condiments
1.
2.
3.
4.
5.
6.
10. Tissue culture laboratories, green houses, green house nurseries & seed
production standards, mushroom laboratories;
Illustrative list of eligible items (Continued)
Sl.
11.
12.
13.
14.
15.
16
17
18.
19.
OFPP, 2013
Items /Activities
Floriculture;
Cold Storage Enterprises;
Refrigerated transport vehicles / containers (excluding second hand refurbished
vehicles / container);
Enterprises manufacturing food- grade packaging materials for food processing
industry;
Enterprises engaged in packaging, canning and bottling of processed foods;
Enterprises manufacturing additives, preservatives, colours and fragrant for the
processed food industry;
Bio-technology and bio-informatics industries;
Commodity grading and packaging industry;
20.
Processing of plantation crops including tea and coffee, forest produce such as
herbal, medicinal and aromatic plants, coconut based products and Arecanut /
Arecanut based products;
Sugar industry (excluding molassess / alcohol)
21
Cattle/ Poultry/ Prawn Feed/ Fish Feed*
(*Ref: Notification no. 4365/MSME / Dt. 11.06.2015)
List of ineligible items
Sl
OFPP, 2013
Items /Activities
1
Rice huller and seller
2
Flour mill of less than 50 TPD capacity
3
Masala making without cold process grinding
4
Bread/ Confectionery except mechanization
5
Preparation of sweet meat and salted snacks except mechanized units. ( Ref:
Notification No. 4365/ Dt.11.6.2015)
6
Production of ice block
7
De-mineralized water and distilled water manufacturing units
8
Processing of betel nuts
9
Tea blending units
10 Units connected with raw-tobacco and gul related products Fruit juice base,
aerated water and soft drink units (excepting the units manufacturing fruit pulp
or fruit pulp and juice out of it).
11 Mixture, Bhujia and Chanachur preparation units except mechanized units. ( Ref:
Notification No. 4365/ Dt.11.6.2015)
12 Fruit juice base, aerated water and soft drink units (excepting the units
manufacturing fruit pulp or fruit pulp and juice out of it).
Incentives
Effective Date
OFPP, 2013
If commenced FCI prior to 15.3.13, it must commence production during
15.3.13 to 14.3.15
If commenced FCI after 15.3.15, it must commence production within two
years from date of 1st FCI.
Sl.
Incentive
1.
Rebate on
Land
Quantum
25% of price
of IDCO Land in Normal Area.
Additional 25% for KBK & potential food clusters.
Project Cost
(Rs. in Cr.)
1 to 50
Above 50 to 100
Above 100
2.
3.
Capital
Investment
Subsidy
(CIS)
Electricity
Duty
Exemption
Time Frame
New
units
Within 6 months from
date of Commercial
Production
Existing
E/D
Within 6 months from
date of Expansion or,
Diversification
Max. land to be available
Ac. 5.00
Ac. 10.00
Ac.30.00
New, Expansion & Diversification cases and Top-up
cases
General Category
25% of project cost (excluding
cost of land); Max. Rs.2.00 cr.
Women, SC & ST
and units in KBK
33% of project cost (excluding
cost of land); Max. Rs.3.00 cr.
New Enterprises
Maximum 10 years from Date of
Production
Exiting Enterprises
Maximum 10 years from date of
commencement of policy.
-do-
-do-
Incentives contd.
Sl.
Incentive
4.
Interest
Subsidy
5.
6.
OFPP, 2013
Time Frame
Quantum
New and Top-up cases
5% p.a on working capital
loan availed from public
sector banks / OSFC for 1st
five years from Date of
Production; Max. Rs.5.00
lakhs per annum
Within 6 months from the end
of each financial year.
Quality
Certification
for new and
Top-up
cases.
Reimbursement upto 50% of cost of certification like
HACCP, GMP, ISO 9000, Agmark, FPO, GLP, TQM.;
Ceiling – Rs.2.00 Lakhs
Within 6 months from date of
obtaining certification or, 6
months
from
date
of
notification whichever is later
Entry
Tax
Exemption
On new and 2nd hand
Plant & Machinery &
Balancing equipment.
100%
Within one month of entry of P
& M and balancing Equipment
On
raw
materials,
incidental
goods
&
packaging materials
100% for a period of 5
years
from
Date
of
Production.
Within one month of entry of
raw materials, incidental goods
and packaging materials
OFPP, 2013
Incentives contd.
Sl
Incentive
Quantum
7.
Mega Food Capital Subsidy @ Maximum – Rs. 15.00 crores As
per
scoring
Park,
Sea 20% of project or, equity participation by pattern. CIS will be
Food Park
front ended to be
cost to SPV
GoO
released in 4 phases
as per progress.
Cost
preparation
DPR
of
of
Eligibility Criteria
Time Frame
After preparation of DPR
and before making any
physical progress on the
ground. In case of MFP
already approved by
MoFPI, GoI, the applicant
Rs. 5.00 lakhs for Mega Food In-Principle approval shall apply along with a
of
In-Principle
Park. If project report is of MoFPI, GoI is copy
approval letter of GoI
prepared for carbon credit – required.
50% of consultancy charges
with a cap of Rs. 20.00 lakhs
Max -200% of Fixed Capital New and Existing Within 6 months from
Investment
enterprise in the the end of each financial
park shall be eligible year
VAT
reimbursement 100% for 10 years
For
Industrial • CIS: 25% with ceiling of As per other units As per other units set up
units set up in Rs.2.00 cr. for General set up outside Mega outside Mega Food Park
Mega Food Parks entrepreneurs in non-KBK Food Park
& Sea Food park
area; and @33% with a
ceiling of Rs. 3.00 cr. for SC,
ST, Women & for KBK
districts.
• Exemption of Entry Tax on
P&M and balancing items
• Exemption of Entry Tax on
raw materials for 5 years
from DOP
MSME DEVELOPMENT POLICY, 2009
MSMED POLICY-2009 Contd.
 Effective Date- 17.02.2009.
 Eligibility- New MSME Units made 1st Fixed Capital
Investment after the Effective Date & Commenced
Production within 2 years of 1st. F C I
 MSME Development Policy 2009 shall be read in
conjunction with IPR-2007.
 Units as enshrined in Annexure-ll, Schedule- Point
(3) of IPR, 2007 shall not be eligible for fiscal
incentives under this policy
Activities not eligible for incentives as per IPR 2007
Sl.
01
Name of Activity
Sl
27
23
Rice0 1hu Hullers and Rice mills with investment in plant and
machinery of less than two crore rupees.
Flour mills including manufacture of besan, pulse mills and chuda
mills excluding Roller Flour Mill with investment in plant and
machinery of less than one crore rupees.
Making of spices with investment in plant and machinery of less
than two crore rupees and without Spice-mark or Agmark and
brand name, pampad excluding pampad manufactured by
Cooperative Societies.
Confectionary (excluding mechanized confectionary).
Preparation of sweets and numkeens, etc.
Bread-making (excluding mechanised bakery).
Mixture, Bhujia and Chanachur preparation units.
Manufacture of Ice candy and Ice fruits.
Manufacture and processing of betel nuts.
Hatcheries, Piggeries, Rabbit or Broiler farming.
"Iron and Steel Processors" including cutting of sheets, bars,
angles, coils, M.S. sheets, recoiling, straightening, corrugating, drop
hammer units etc.
Cracker-making units.
Tyre retreading units with investment in plant and machinery of
less than ten lakh rupees.
Stone crushing units.
Coal / Coke screening units.
Coal / Coke Briquetting.
Production of firewood and charcoal.
Painting and spray-painting units with investment in plant and
machinery of less than ten lakh rupees.
Units for physical mixing of fertilizers.
Brick-making units (except units making refractory bricks and those
making bricks from flyash, red mud and similar industrial waste).
Manufacturing of tarpaulin out of canvas cloth with investment in
plant and machinery of less than ten lakh rupees
Oil mills including oil processing, filtering, colouring, decolouring,
refining, hydrogenation, scenting etc except Oil refining with /
without solvent extraction facility.
Saw mill, sawing of timber.
24
Carpentry, joinery and wooden furniture making.
50
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
MSMED POLICY-2009 Contd.
Name of Activity
28
Units for cutting raw tobacco and sprinkling jaggery for chewing
purposes and Gudakhu manufacturing units.
Units for bottling of medicines.
29
Bookbinding.
30
31
32
33
34
35
36
37
Rubber stamp making.
Making notebooks, exercise notebooks and envelopes.
Printing press.
Photo copying.
Stenciling units.
Processing of Stencil paper.
Distilled water units.
Distillery Units.
38
39
Tailoring (other than readymade garment manufacturing units).
Repacking and stitching of woven sacks out of woven fabrics.
40
41
42
43
44
Laundry / Dry cleaning.
Photographic studios and laboratories.
Clinical/Pathological laboratories.
Beauty parlours.
Video parlours.
45
46
Guest Houses / Restaurants.
Goods and passenger carriers.
47
Decorticating, expelling, crushing, parching, and frying of oil seeds.
48
Fruit Juice base, aerated water and soft drink units (excepting the
units manufacturing fruit pulp or fruit pulp and juice out of it).
49
Distillery, Bottling units or any activity in respect of IMFL or liquor of
any kind.
Size reducing, size separating units.
MSMED POLICY-2009 Contd.
Fiscal Incentives
Incentives
Eligibility
Capital Investment
Subsidy (CIS)
VAT Reimbursement as in
IPR-2007
Rate / period
Time line for filing
Application
MSMEs (others)
10% of FCI up to
Rs. 8 lakh
MSMEs of SC / ST/
Women, Technical
Degree / Diploma
holder
entrepreneurs
MSEs set up by
Women
entrepreneurs
12% of FCI up to
Rs.10 lakhs
Within Six months
of Commencement
of Production
Additional period
of 2 years
Within six months
from the end of each
financial year
ODISHA PROCUREMENT PREFERENCE
POLICY FOR MICRO & SMALL
ENTERPRISES, 2015
ODISHA PROCUREMENT PREFERENCE POLICY FOR MICRO & SMALL ENTERPRISES, 2015
 EFFECTIVE DATE- 10.06.2015
 Eligibility- Micro & Small Enterprises except MSEs declared
ineligible under the extant & new policies of the State
 Mandatory Procurement from MSES - minimum twenty per cent
(20%) of the annual value goods or services of the requirement
 Special provision for Procurement form M S ES owned by SC,
ST, Physically Challenged, Women and Tech (Deg/Dip)- 4% out
of 20%
 State Govt Depts, Heads of Dept, Boards, Corporations,
Development
Authorities
and
Improvement
Trusts,
Municipalities, N A Cs, Co-operative Bodies and Institutions
aided by State Govt and Companies where Govt share is 50% or
more, CPSUs, MoU signed projects in the State, Power
Generation & Distribution Companies, Union Govt / State Govt
aided projects / externally aided projects funded by donor etc
shall procure.
ODISHA YOUTH INNOVATION
SCHEME
ODISHA YOUTH INNOVATION
SCHEME
"Odisha Youth Innovation Scheme" to encourage new ideas / demonstrative
product, prototypes, patents, incubated products or services / development of any
enterprise based on eligible innovative idea/ products/ services
Financial Assistance
Sl.
Category
Quantum
i.
Any New Idea
Rs. 50,000
ii.
Any Demonstrative Product, Prototypes, Patents,
Incubated Products or Services
Rs. 1,00,000
iii.
Development of any Enterprise based on eligible Rs 3,00,000
innovative idea / products / services as prize money as a
part of state level felicitation
OSIC Ltd. is the Nodal Agency for implementation of the scheme
CLUSTER APPROACH
CLUSTER APPROACH
What is a Cluster ?

Cluster in MSME Sector implies:

Concentration of economic enterprises,

Producing
a
typical
product
/
service
or
a
complementary range of products / services,

Within a geographical area (spans over a few village,
town, city or adjoining area)
CLUSTER APPROACH
Types of Cluster
Sl
Type of cluster
Criteria
1.
Industrial / Artisan
MSM enterprises with hired labour &
electrically driven machinery / personal skills
of artisan
2.
Natural / Induced
Evolution naturally or induced through special
policy measures
3.
Small / Large
Volume of business, geographical area of
spread or employment generation
4.
Vertical / Horizontal
Mutual
relationship
enterprises
5.
Dynamic / Underperforming
Degree of vibrancy & growth in recent past
6.
Export
Primary market located abroad
among
producing
Developing Cluster means ……
1.
2.
3.
4.
5.
6.
7.
8.
CLUSTER APPROACH
Revitalizing the Industry Association,
Identifying gaps in the Cluster and effort to bridge them,
Providing new market linkages
Pushing cluster to export
Improving quality
Setting up a common facilities (common machinery
centre, common lab) in the cluster to be managed by
entrepreneurs themselves
Design inputs into cluster
Sustainability
Schematic Support
CLUSTER APPROACH
Micro & Small Cluster Development Programme (MSE-CDP) –
Government of India
Office memorandum No. 1(17)/SICDP/Cluster/TM/2006 dated
10.02.2010 Of the Development Commissioner (MSME)
• 70% GoI funding for Common Facility Centres (CFC) with
project cost up to Rs.15 crore
• Maximum 75% GoI funding for soft intervention (i.e.
training, exposure visits, marketing assistance, capacity
building, etc) with project cost up to Rs.25 lakh.
• Eligible cost of projects for infrastructure development
upto Rs.10 crore with GoI funding upto 60%
Schematic Support
CLUSTER APPROACH
State Initiatives for Micro & Small Cluster Development
Programme (SIMSECDP)
Industries Department Notification No.I-SI-5/2010.IND – 14824/I dated
29.09.2010
Need based assistance for :
• Awareness Campaigns & Sensitization of Stake holders
& Support Institutions,
• Base line Survey,
• Hiring of consultants for Preparation of Project Report
for Hard Component;
• Initiating trust building & soft activities like holding
meetings of the stake holders,
• Exposure visits to replicate best practices
Status of Clusters in Odisha
i.
ii.
iii.
iv.
v.
vi.
vii.
Number of Clusters identified
Preliminary DSR Completed
DSR completed
DSR under process
DSR proposal submitted to O/o DC (MSME)
Soft interventions approved
DPR submitted for approval of CFC
(Pharmaceutical Cluster at Cuttack-Bhubaneswar and
Cashew Cluster at Bramhagiri, Puri)
viii. CFC Sanctioned & project under implementation
(Cashew cluster at Rambha, Ganjam and *Ayurvedic
Cluster at Berhampur, Ganjam)
ix. CFC completed (Bargarh Rice Milling Cluster)
* Assisted under AYUSH Cluster of Department of AYUSH, Government of India
****
56
50
33
5
3
10
2
2
1
Application Procedure
Eligible enterprise shall file their claim in the prescribed form along with documents within
time limit as per the Operational Guidelines prescribed for each incentives under each
policy.
Policies & Operational Guidelines available at:
Sl.
Policy
Department
Website
1
Industrial Policy Resolution, 2015
& Operational Guidelines
Industries Department
http://www.odisha.gov.i
n/industries/index.htm
Directorate of
Industries
http://diodisha.nic.in/
MSME Department
http://www.msmeodish
a.gov.in/
Directorate of
Industries
http://diodisha.nic.in/
2.
Food Processing Policy, 2013 &
Operational Guidelines
3.
Procurement Preference Policy for
MSEs, 2015
4.
Odisha MSMED Policy, 2009 &
Operational Guidelines
5.
Youth Innovation Fund Scheme
Contact Details
Sl.
Organization
Address
1
Industries Department
Tel:0674-2536640/2390253 | FAX: 0674-2536819/2396299 | Email:
indsec.od@nic.in | Web: http://www.odisha.gov.in/industries/
index.htm
2.
MSME Department
Tel:91 + 674 2391384 | FAX: 91+ 674 2394051 (FAX) | Email: secymsme.od@nic.in | Web: http://www.msmeodisha.gov.in/
3.
Directorate of Industries, Odisha
Killa Maidan, Buxi Bazar, Cuttack-753001, Odisha
4.
Directorate of Export Promotion &
Marketing
Tel:
0674-2530440
|
FAX:
0674-2533268
depmodisha@gmail.com | http://depmodisha.nic.in/
5.
Invest Odisha (Industrial Promotion and
Tel: 0674-254 2601 | FAX: 0674-2543766 | email:
cmd@investodisha.org | http://investodisha.org/
6.
Odisha Small Industries
Corporation Limited
Industrial Estate, Madhupatna, Cuttack – 10 | Tel:- 0671-2342580 |
FAX : 91-671-2341875 | email:
osicltd@gmail.com |
http://osicltd.in/
Investment Corporation of Odisha Limited –
IPICOL)
Tel:0671-2301892 | FAX:0671- 2301227 email: diorissa@nic.in |
http://diodisha.nic.in/
|
email:
THANKS