Odisha’s Industrial Growth: Driving Investment, Employment & Infrastructure for a Prosperous Future

Hon’ble Speaker Madam,

It is my great pleasure to present before the August House, for the second time, the budget for Industries Department for the Financial Year 2025-26. The Industries Department is responsible for driving comprehensive industrial development in the State, with a focus on generating employment, attracting investment, and contributing to economic growth. The Department primarily oversees matters related to large industries, with key functions centred around investment promotion, facilitation, infrastructure development, and the implementation of an incentive framework. To execute various schemes and enhance operational efficiency, the Department functions through three Public Sector Undertakings (PSUs):

1. Industrial Promotion & Investment Corporation of Odisha. (IPICOL)

2. Odisha Industrial Infrastructure Development Corporation. (IDCO)

3. Odisha Film Development Corporation. (OFDC) Additionally, to streamline land acquisition for industrial establishments, Six (6) Special Land Acquisition Cells have been set up in Sambalpur, Jharsuguda, Rayagada, Jagatsinghpur, Bhadrak, and Kendrapara. IPICOL has taken pro-active measures for Investment Promotion and Industrial Facilitation in the state.

The major activities of IPICOL are to extend Single Window Facilitation services to investors and to take up Promotional activities for the State. IPICOL has organised various investment promotion activities like Delhi & Mumbai Roadshow, visit to Singapore for Utkarsh Odisha, 18th Prabasi Bharatiya Dibas & UTKARSH ODISHA – Make in Odisha Conclave during FY 2024-25.

1. The Make in Odisha Conclave has significantly contributed to the State’s investment and economic growth. The 2025 edition of Utkarsh Odisha – Make in Odisha Conclave, held during January 28-29, 2025, reinforced Odisha’s status as the leading investment destination in the eastern part of the Country. Under the leadership of Hon’ble Chief Minister Shri Mohan Charan Majhi, our government’s vision to make Odisha a Samruddha Odisha by 2036, I am sure this conclave would be instrumental in achieving this. This edition attracted a total of 593 Project Proposals with an investment intent of ₹ 16.73 Lakh Crores and employment potential of 12.88 Lakh jobs across 20 sectors.

Taking into consideration the industries that would generate high employment, promoting New-Age industries, establishment of Ancillary and Downstream industries and would minimise harmful effects to environment, 145 MoUs were signed during the conclave. The conclave attracted delegates from over 16 countries including representatives from the partner countries- Singapore, Malaysia and Australia. Over 100 foreign delegates participated in the 2025 conclave. To support these activities and bolster investment promotion and publicity, a budgetary support of ₹ 120 Crore is provisioned in FY 2024-25 under “Grants to IPICOL for Investment Promotion and Publicity” and ₹ 38.0653 Crore has been further proposed in the FY 2025-26 for post UTKARSH ODISHA – Make in Odisha Conclave activities.

2. To attract Textile Industries, Our Govt has started taking concerted efforts. I would like to draw your kind attention that the following industries have shown their intent to start their business in Odisha viz: a) Jockey at Ramdaspur b) EPIC at Kalibet c) MAS at Bhuinpur d) Colortone at Balianta This would provide large scale employment. Keping in view the above, Govt of Odisha has planned to set up textile park. National and International Textile Companies can establish their plants wherein it is expected that over 50000 potential employments may be generated. This may lead to nearly 70% of employment among women. This would lead to economic empowerment of Women in the State and would lead to Women empowerment. To provide developed land with adequate enabled infrastructure and to attract investments in textile sector in Kalibet and Aranga area of Khurda, an amount of ₹ 20.00 Crore has been proposed under the scheme “Financial Assistance for Development of Textile Parks”.

3. The affluent substances generated from the waste of the textile industries need to be treated before being let out in the environment. In order to maintain a sustainable green practice in Textile Park in Kalibeti area of Khurda, an amount of ₹ 30 Crore has been proposed under the scheme “Development of CETPs for Textile Industries” for the FY 2025-26.

4. To make Odisha as a manufacturing hub in sectors like Automobile, EV, semiconductor and IT/ITeS, the establishment of FDI park is essential. I would like to elaborate in this aspect as to why Odisha is unable to attract FDI: The main reason behind such a scenario is lack of ultra-modern facilities and world class infrastructure. Under the leadership of our Hon’ble CM MCM, a high-level state delegation visited Singapore and held discussion regarding this. Later on, during the visit of His Excellency, the President of Singapore’s visit to Odisha, to establish a world class infrastructure for attracting FDI, a MOU was signed by the State Govt with SembCorp. I would like to say that SembCorp is a leading world class entity in establishment of FDI parks that has been replicated in countries like Malaysia, Vietnam and China. A budgetary provision of ₹ 10 Crore has been proposed under the scheme “FDI Park in State Capital Region” to develop Odisha into a robust manufacturing hub, with special focus on the automobile, EV, Semiconductor, and IT/ITES industry in FY 2025-26.

5. To ensure low-cost accommodation for industrial workers and to promote establishment of Industries, our govt has been constructing industrial workers’ hostel in different industrial towns. I would like to convey that the following 5 workmen hostel are nearing completion viz; Sl No Hostel Location with District Capacity 1 Rourkela in Sundergarh 1606 2 Jayamangala in Khurda 1349 3 Chatabara in Khurda 1442 4 Shramik Nibas, Khurda in Khurda 2000 5 Balasore 1349 In addition to these , our Govt is also constructing various workmen hostel in Bolangir, Chowdhar in Cuttack, Basantpur in Sambalpur , Jharsuguda, Balasore, Kalinganagar in Jajpur, Plastic Park and Excecutive Hostel in Paradeep and Working Women Hostel in Deras,Khurda. Construction of 13 nos. of Workers’ Hostel for staying of industrial workers at various Industrial Estates of the State have been undertaken with the financial support of SIDBI under SIDBI Cluster Development program. In FY 2025-26, an amount of ₹ 100 Crore has been provisioned under the Scheme “SIDBI Cluster Development Fund (SCDF) and an amount of ₹ 20.00 Crore has been proposed under the Scheme “Din Dayal Karmachari Niwas in Industrial Areas”.

6. Food processing industries are demand driven. As the per capita income is on the rise in Odisha, there is a demand for processed and packaged food. Being mostly in the small and medium sectors, these industries are employment intensive. Our govt has given special emphasis on this sector. Players like CAMPA, Hindustan Unilever Limited and Nestle have shown their intent in investing in Odisha and companies like Britannia, Coca-Cola, Indo-Nissin and Pepsi have shown their interest in expanding their businesses. To promote Ready to Eat (RTE), Ready To Cook (RTC) products in the State, Govt. has been planned to develop Five new Food Parks at Koraput, Bandhupali in Baragarh district, Bamani in Nabarangpur district, Golabandha in Deogarh district and Kurlupada in Kalahandi district. In order to implement this project, an amount of ₹ 21 Crore has been proposed under the scheme “Financial Assistance for Development of Mega Food Parks” in FY 2025-26.

7. A Multi Modal Logistics Park (MMLP) is a facility designed to improve the efficiency of logistics operations by integrating different modes of transportation—such as road, rail, air, and sea—into one cohesive hub. These parks play a critical role in reducing logistics costs, improving supply chain efficiency, and promoting economic growth. Under the Connect Odisha initiative, Government has planned to establish Multimodal Logistic Parks (MMLP) at 08 different locations of the State in FY 2025-26. An amount of ₹ 10 Crore has been proposed under the scheme “Connect Odisha Scheme (MMLP)” in FY 2025-26.

8. In the Utkarsh Odisha – Make in Odisha Conclave 2025, various MoUs across various sectors were signed with a focus on grounding of the projects at the earliest. For fast-track approval of project proposals SLSWCA and HLCA are to be conducted in the coming months for early grounding.One of the key goals of the state government is to ensure the ground-breaking and inauguration of projects cleared by the single window committees at the earliest. A budgetary grants of ₹ 5.25 Crore has been proposed under the scheme “Grants to IPICOL for Single Window and Project profile” in FY 2025-26 to carry out the activities of approval and clearance of projects.

9. The Odisha Government, with M/s PricewaterhouseCoopers(PWC) as its Investment Promotion Advisor, focuses on sustainable industrialization by promoting investments in key sectors, assisting IPICOL with investor engagement, and organizing events to attract investments.A budgetary support of ₹ 6.80 Crore has been proposed under “Grants for Investment Promotion Advisory Service ” in FY 2025-26 to carry out the scheme. A special cell in IPICOL may be established to facilitate Women Entrepreneurs.

10. To streamline the investment facilitation mechanism at the district level in terms of identification of land, advocacy for industrial infrastructure development, promotion activities based on local sectoral strength, support for grounding of projects, the State Government has setup facilitation cells at the district level called District Investment Promotion Agency (DIPA). The DIPA functions under the guidance of the district collector. As of now, DIPA is operational in all 30 district headquarters of Odisha. An amount of ₹ 18 Crore has been proposed for “Grants for District Investment Promotion Agency (DIPA)” during the FY 2025-26.

11. The Government is committed in bringing ease in regulatory compliance for businesses through reforms to make it easier, simpler and quicker to operate. As a part of ease of doing business, the technological platforms like GO SWIFT (to facilitate investor for ease of doing business in the single platform) , GO SMILE- Synchronized Mechanism for Inspection of Licensed Enterprises, GO PLUS- land use and service, E-Suvidha SPMG, Single Sign On (SSO), Invest Odisha Mobile App and Website have been adopted to facilitate the services to the Investor community. To facilitate ease of doing business in the State the State Level Facilitation Cell (SLFC) has been created at IPICOL which has resolved issues pertaining to industrial projects. A budgetary support of ₹ 8.20 Crore is proposed under the scheme “Grants for Development of SLFC/ DLFC to facilitate investors & grounding of Industrial Projects” during the FY 2025-26.

12. Odisha Investment and Export Promotion Office (OIEPO) located in the office of the Residence Commissioner, New Delhi is liaisoning with the GOI Ministries and other concerned agencies for extending outreach services to investors for approval and clearance of the project coming up in the state as well as to reinforce the network proactively with the Embassies, Industry Association, Chambers of Commerce and Industry and other International Organization to promote Odisha as an attractive investment destination. In order to strengthen the establishment, budget provision of ₹ 24 lakh bas been proposed in FY 2025-26.

13. VISION 2030 – The metal downstream and ancillary sectors is one of the employment incentive segments. The purpose of the Vision 2030 in the metal downstream and ancillary sector is to provide a roadmap to achieve 50% value addition in the segment by 2030. The segment is expected to catapult the State’s employment (10 times) from 0.3 lakhs to about 3 Lakhs (direct and indirect) and investment (7 times ) from INR 10000 crore to INR 65,000 crore by 2030.

14. IDCO has developed 140 Industrial Estates/ Areas in different strategic locations of the state with an area of Ac. 13335.551 land and 1542 Nos. built up sheds. Area sanctioned under category – A is Ac. 25,182.805 and area reserved under category – B is Ac.51,355.714 and the total extent of land comes to Ac.76538.519 in both Category -A & B of Land Bank Scheme. To expedite the land allotment process and provide ready-to-use land for industrial projects, a target has been set up to acquire or alienate 1000 acres of land in Category-A under the Land Bank Scheme. A budget of ₹ 106 crore has been proposed for the scheme in FY 2025-26.

15. The State Government will develop an industrial corridor connecting Paradip – Choudwar – Dhenkanal – Angul -Sambalpur – Jharsuguda – Sundargarh – Rourkela region to ensure rapid and integrated growth by facilitating seamless multi-modal transport services. In order to implement this project, an amount of ₹ 10 Crore has been proposed under the scheme “ Financial Assistance for development of Industrial Corridor” in the FY 2025-26.

16. In order to improve the infrastructure for film industry an amount of ₹ 8.5283 Crore has been proposed under the scheme “Redevelopment of Kalinga Studio Ltd” for the FY 2025-26.

17. To meet the budgetary gap of any department to undertake timely implementation of external infrastructure work to any industrial park/area /investment region or estate, the Industrial Infrastructure Development Fund (IIDF) has been set up. Under the IIDF Scheme, development of quality external infrastructure like roads, water supply system, power supply system are to be provided to the new upcoming Industrial Parks and Industrial estates for which an amount of ₹ 60.00 crore has been proposed during the FY 2025-26.

18. To improve essential infrastructure like roads, water supply, and power, enhancing the industrial environment and supporting economic growth in existing Industrial Estates (Mancheswar, Jagatpur, Kalunga, Somnathpur, Auto Nagar, Khordha, Somanathpur), an amount of ₹ 100.00 crore has been proposed under scheme “Up-gradation/ Repair & Maintenance of Infrastructure in different Industrial Estate/ Areas ” for the FY 2025-26.

19. “Plug and play” industrial parks are pre-built industrial facilities that offer ready-to-use infrastructure, allowing businesses to start operations immediately upon entry. These parks typically provide essential amenities like electricity, water supply, internet connectivity, transportation access, and waste management systems. This Government of India scheme shall be executed in collaborations with states and the private sector.

20. State Government is committed to provide facilitation support to all industries while providing competitive and best-in-class financial incentives to the desired sector of industries in graded manner to achieve the objectives of the IPR 2022. Incentives like SGST reimbursement, Electricity Duty Exemption, Stamp Duty Exemption, Employment Cost Subsidy, Capital Investment Subsidy etc. under Industrial Policy Resolution of the State Government for Large Industries. Along with the same, other subsidies for industries like Capital Investment Subsidy, Interest subsidy for Cinema halls, Multiplexes under Odisha State Film Policy 2019 are also administered. An amount of ₹ 144 crore has been proposed under the scheme “Subsidy in shape of Financial Assistance against VAT/GST reimbursement in large sector “, ₹ 1.25 Crore has been proposed under the scheme “Odisha State Film Policy“ and ₹ 50.00 Crore has been proposed under the scheme “Subsidies under IPR“ in FY 2025-26. Lastly, I would like to say that Government has taken significant steps in terms of introducing industry-friendly policy and regulatory framework for Industrial promotion and development in the new Budget. To boost investment and industrial growth, budget of ₹ 801 Crore under programme expenditure and ₹ 7.1491 Crore under EOM in respect of Industries Department has been proposed in financial year 2025-26 which may be passed by the Assembly.

Bande Utkal Janani

Jai Hind