Facilitation for promotion of Micro, Small & Medium

Enterprises

Policies of Government of Odisha

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 exceed ₹5 crore

More than ₹10lakh but does not exceed ₹2 crore

Medium More than ₹5 crore but does not exceed ₹10 crore

More than ₹2 crore but does not exceed ₹5 crore

POLICY PROVISIONS

Easing of doing business involves

Policy FrameworksSl Notifications / Policies1. Odisha Industries (Facilitation)

Amendment Rules, 20152. Industrial Policy Resolution, 20153. Odisha Food Processing Policy, 20134. Micro, Small & Medium Enterprises

Development Policy, 20095. Odisha Procurement Preference

Policy For Micro & Small Enterprises, 2015

6. Odisha Youth Innovation Fund Scheme

7. 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 Feature of District Level Facilitation CellCell

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, 2015Investor having no land

Investor having less than 25% of required land

CAF Schedule I for assessment of land & utility Through DLNA

DLFC

Decision in DSWCA

Investor having 25% or more of required land

CAF Schedule IA for Clearance through DLNA for

recommendationRecommendation for availability of land

42 Clearances included within maximum 60 days.

DLNA Concerned Authority

Decision of Concerned Authority communicated to proponent

Timeline for Consent / Approval (OIFR, Timeline for Consent / Approval (OIFR, 2015)2015)Sl. No.

Department Disposal of Application Time Limit (Working

Days)Energy DISCOMs

1. Time taken from request for connection to release of connection where infrastructure is available

15

2. Time taken from request for connection to release of connection where infrastructure is not available

30

Environment & Forests

3. Consent to establisha. ‘A’ Category after obtaining environmental

clearance 60

b. ‘B’ Category after obtaining environmental clearance

45

c. ‘C’ Category 304. Permission under Hazardous Waste

(Handling & Management) Rules30

5. Consent to Operatea. ‘A’ Category after obtaining environmental

clearance 60

b. ‘B’ Category after obtaining environmental clearance

45

c. ‘C’ Category 30

Timeline for consent & approvalSl. No.

Department Disposal of Application Time Limit (Working

Days)Labour & ESI

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. Approval of Factory Plan for Major Accident Hazard (MAH) factories

90

9. Registration and Licensing of Factories 6010. Renewal/Amendment/Transfer of factory

license30

11. Issue of duplicate license 3012. Inspection of Boilers & issue of provisional

orders to operate boilers15

13. Approval of repair order of Boilers 1514. Steam pipeline drawing approval 3015. Registration of Boilers 3016. Endorsement of Certificates of Boiler

Operation Engineers, Boiler Attendants and Welders issued by other States

15

17. Revalidation of Welders’ certificates 15

Timeline for consent & approval

Sl. No.

Department Disposal of Application Time Limit (Working

Days)Labour & ESI Labour Commissioner

18. Registration under Odisha Shop and Commercial Establishment Act,1956

15

19. Renewal of Registration under Odisha Shop andCommercial Establishment Act,1956

15

20. Contract Labour(R & A)Act,1970i)Registration (one time)ii)Licenceiii)Renewal (annual)

15

21. Industrial Employment Standing Order Act, 1946

45

Housing & Urban Development

UDA/Municipalities

22. Building Plan Approval 6023. Issuance of Occupancy Certificate

(Applicable to Bhubaneswar Development Authority and other Development Authorities & ULBs

30

24. Trade License 1525. Water Connection 4526. Conversion of Land Use under master

plan60

Timeline for consent & approval

Sl. No.

Department

Disposal of Application Time Limit (Working

Days)Finance Commercial Taxes

27. Registration under VAT Act 328. Registration under CST Act 329. Registration for Profession Tax 330. Sanction of incentives under IPR 2015 30

Industries

IDCO

Decision on Land Allotment within IDCO Estates outside BMC Area

31. Allotment Letter after receipt of recommendation letter from Single Window Authority

30

32. Execution of Lease Agreement subject to compliance of T & C of allotment

15

33. Issue of Possession Certificate 15Decision on Land Allotment within IDCO Estates within BMC Area

34. 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

Timeline for consent & approval

Sl. No.

Department Disposal of Application 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

30

Home Directorate of Fire

40. No Objection Certificate 30

Revenue & Disaster Department

41. Conversion of land use in all other areas (except ULBs) 60

Health & Family Welfare

42. License under Drug and Cosmetics Act 30

* Entrepreneur Memorandum has been discontinued by Ministry of MSME, Government of India from 18.09.2015

INDUSTRIAL POLICY RESOLUTION, 2015

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:

IPR-20015 contd..

Sl.

Category

a. Agro and Food Processingb. Ancillary and Downstream c. Automobiles and Auto-components d. Manufacturing in Aviation and Maintenance Repair &Overhaul (MRO) e. Bio-technology f. Fly ash & Blast furnace slag based industries utilizing a minimum of 25% by weight

as base raw material g. Gem stone cutting and polishing h. Handicraft, Handloom, Coir and Leather products i. Information technology, IT enabled service and ESDM units j. Petroleum, Chemicals & Petro-chemicals k. Pharmaceuticals l. Plastics and Polymersm. Sea food Processingn. Shipbuilding and construction of other floating vessels/ Ship repair o. Textile including Technical Textile & Apparel p. Tourism and Hospitality (All the units/activities specified in Para 6.11 of Odisha

Tourism Policy -2013 are eligible units) q. 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 & Mr. Migrated industrial units treated as new industrial units under Priority sector s. Rehabilitated sick industrial unit treated at par with new industrial unit under

Priority sector t. 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

u. Non-mineral based new industrial units located in industrially Backward districts with minimum investment of five crore rupees in plant & machinery

3. Category of Districts for Administration of Incentives

IPR-20015 contd..IPR-20015 contd..

Category

Districts

A All other districts other than Category BB Industrially Backward Districts- Kalahandi,

Nuapada, Bolangir, Subarnpur, Koraput, Malkangiri, Rayagada, Nawrangpur, Kandhamal, Gajapati and Mayurbhanj.

4. Land at Concessional Rate IPR-20015 contd..IPR-20015 contd..

ZoneZone LocationLocation Concessional Industrial Land RateConcessional Industrial Land Rate(Rs. Lakhs / Acre)(Rs. Lakhs / Acre)

A Urban areas under the jurisdiction of Bhubaneswar Municipal Corporation area.

Rs. 125 Lakhs/ Acre

B Urban areas under the jurisdiction of Development Authorities of Cuttack, Rourkela, Berhampur, Sambalpur, Paradeep, Puri, Angul and Jharsuguda

Cuttack, Rourkela- Rs.60 Lakhs / Acre

Berhampur, Sambalpur, Paradeep, Puri, Angul, Jharsuguda–

Rs. 30 Lakhs / Acre

Municipal / NAC Municipal / NAC area area

Other than Other than Municipal / NAC Municipal / NAC

AreaArea

C Revenue Sub-Divisions of Bhubaneswar (except BMC area), Khurda, Angul, Cuttack, Jharsuguda, Panposh, Puri, Sambalpur.

Rs. 15 Lakhs / Acre

Rs. 6 Lakhs / Acre.

D Revenue Sub-Divisions of Athagarh, Balasore, Berhampur, Chhatrapur, Champua, Dhenkanal, Jagatsinghpur, Jajpur, Keonjhar, Talcher

Rs.10 Lakhs / Acre

Rs. 4 Lakhs / Acre

E Revenue Sub-Division of Banki, Baripada, Bhadrak, Baragarh, Bolangir, Jeypur, Koraput, Rayagada, Sundargarh

Rs. 6 Lakhs / Acre

Rs. 2 Lakhs / Acre

F 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. 3 Lakhs / Acre

Rs. 1 Lakh / acre

Ground Rent will be paid @ 1% of the land value10% 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 UseNew 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 FrameMicro & Small Sector

100 % up to 5 Acres Shall apply within the period of implementation ie 3 years for New MSMEs & 5 years for New Large Industries

Medium Sector 75 % up to 25 AcresLarge Sector 50 % up to 500 AcresPriority Sector 100% up to 100 Acres & 50% for

balance area6. Stamp Duty Exemption

Category Quantum Time FrameMicro & Small Sector @ 75 % of Stamp duty Shall apply at the time of

execution of required deed Medium Sector @ 50 % of Stamp duty Large Sector @ 25 % of Stamp duty Priority Sector @ 100% of Stamp duty

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

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

Category Quantum Time FrameMicro Enterprises Rs. 10 Lakhs

Shall apply within six months from end of each financial year

Small Enterprises Rs. 20 Lakhs Medium Enterprises Rs. 40 Lakhs Non-MSME Priority Sector Units

Rs. 1 crore .

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

8. EnergyExemption of electricity duty for 5 yearsCategory Contract Demand Time Frame

New MSMEs Contract demand up to 500 KVA Shall apply within 1 year from the date of Production

New units in Priority Sector

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

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 AuditsCategory Quantum Time Frame

Micro Enterprises Rs. 1 Lakh Shall apply within 1 year from the date implementation of Audit

Small Enterprises Rs. 2 Lakhs Medium Enterprises Rs. 3 Lakhs

IPR-20015 contd..9. VAT ReimbursementSl. Category Quantum Peri

odMaximum Time

Framei) New MSMEs 75% of VAT paid Five

(5) years

Limited to 100% of cost of Plant & M/c

Shall apply within six months from the end of each Financial Year

ii) New Industrial units in Priority Sector

100% of VAT paid

Seven (7) years

Limited to 200% of cost of Plant & M/c

iii) Existing MSME taking up E / M / D

75% of VAT paid on increased production

Five (5) years

Limited to 100% of additional cost of plant & M/c for E/M/D

iv) Existing industrial units in Priority sector taking up E / M / D

100% of VAT paid on increased production

Seven (7) years

Limited to 200% of additional cost of Plant &M/c acquired for taking up E/M/ D

v) New Pioneer Units under each Priority Sector

100% of VAT paid

Nine (9) years

Limited to 200% of cost of Plant & M/c

vi) Anchor Tenant in each industrial park

100% of VAT paid

Nine (9) years

Limited to 200% of cost of Plant & M/c

NB: Above provision will be suitably replaced / modified after Goods and Services Tax (GST) is introduced

Category Quantum Time Framei. New Multiplex Cinema Hall of at least 3 screens with minimum capital investment of Rs.3.00 crores

100% of ET paid

For 5 years

Shall apply within 1 year from the date of Productionii. Existing cinema hall is upgraded to a

multiplex and modernised with minimum investment of Rs. 1 crore

100% ET paid

For 5 years

10. Entertainment Tax

NB: Above provision will be suitably replaced / modified after Goods and Services Tax (GST) is introduced

IPR-20015 contd..11. Entry Tax ReimbursementSl.

Item Category Quantum Period

Maximum Time Frame

i) Plant & Machinery

New MSMEs and Priority Sector

100% of Entry Tax paid on acquisition of plant & M/c

One time

─ Shall apply within 1 year from the date of Production

Existing industrial units in MSMEs & Priority Sector units taking up E/M/D

100% of Entry Tax paid on additional acquisition of plant & M/c

One time

─

ii) Raw Materials

New MSMEs and Priority Sector units

100% of Entry Tax paid

Five years

100% of cost of Plant & M/c

Shall apply within six months from the end of each financial year

Existing industrial units in MSMEs & Priority Sector units taking up E/ M/ D

100% of Entry Tax paid on additional raw materials

Five years

100% of cost of additional Plant and machinery

New Pioneer Units under each Priority Sector

100% of Entry Tax paid

Seven years

100% of cost of plant & M/c

NB: Above provision will be suitably replaced / modified after Goods and Services Tax (GST) is introduced

IPR-20015 contd..12. Employment Cost Subsidy

NB: For Industrially Backward districts the Employment Cost Subsidy will be allowed for additional period of 2 years

Sl. Category of Enterprise Category of Employee

Quantum

Period Time Frame

i. Micro Enterprises & Small Enterprises

Male workers 75% 5 years

Shall apply within Six months from the end of each Financial Year

Female workers 100% 5 years

ii. Medium Enterprises Male workers 50% 3 years

Female workers 100% 3 years

iii. Priority Sector Skilled and semi-skilled workers of domicile of Odisha –displaced for the establishment of the said Indl unit as regular employees

100% 3 years

iv. New and existing Industrial units undertaking E/M/D in MSME and Priority Sector

Persons with Disabilities

100% 5 years

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

13. Patent Registration

Quantum Time Frame@ 100% of the registration cost up to maximum of Rs.10 Lakhs.

Shall apply within 1 year from the date obtaining Patent Registration

New Industrial units and Existing Industrial units in Micro, Small & Medium Enterprises and Priority Sector taking up Expansion/ Modernization/ Diversification

IPR-20015 contd..14. Quality Certification

Quantum Time FrameFor quality certification & its renewal for next consecutive two years i.e. for a period of 3 years @ 100% of the quality certification charges up to a total maximum limit of Rs.3 Lakhs.

Shall apply within 1 year from the date obtaining Quality certification / its renewal

New and Existing Industrial units in Micro, Small & Medium Enterprises and Priority Sector taking up Expansion/ Modernization/ Diversification

15. Assistance for Technical Know-how

Type Quantum Time FrameIndigenous technology

100% of cost of technical know- how up to Rs.1 Lakh

Shall apply within 1 year from the date of starting Production Imported

technology. 100% of cost of technical know- how up to Rs.5 Lakhs

New Industrial units in Micro, Small & Medium Enterprises and Priority sector

16. Entrepreneurship Development Subsidy

Quantum Time Frame75% of course fee limited to Rs.50,000 per course

Shall apply within 30 days of completion of Management Development

Budding entrepreneurs to undergo Management Development Training in reputed national level institutions

17. Environmental Protection Infrastructure Subsidy

Quantum Time FrameRs.20 Lakhs or 20% of capital cost of setting - up Effluent Treatment Plant (ETP) whichever is less.

Shall apply within 1 year of operationalization of Pollution Control Equipment

MSME adopting Zero Effluent or Waste Water Discharge (ZLD)

IPR-20015 contd..18. Capital Grant to Support Quality Infrastructure

Category Quantum• To industrial parks / cluster parks promoted by private sector or industry association or user units in a cluster format.

Quality infrastructure in the form of a capital Grant of 50% of the 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 a similar support provided the park / estate / cluster is user- managed.

Quality infrastructure in the form of a capital grant of 50% of total cost with a ceiling of Rs.5 crore provided the park / estate / cluster is user- managed. 19. Anchor Tenant Subsidy

Quantum Time Frame25% subsidy on cost of land Shall apply within Six months

of approval under Single Window

VAT Reimbursement for additional 2 years subject to the overall limit

Lead investment by a reputed investor to promote and facilitate further investment in the designated industrial Park / Estate (first tenant industry)

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

Quantum Time Frame@ 50% of total rent subject to a maximum of Rs.10 Lakhs

Shall apply at least 1 month before participating in the Trade Fair

Marketing Assistance to Industries Association for participation of minimum 5 units in Odisha Pavilion in International Trade Fairs abroad

22. Film IndustrySl. Category Incentivea) All feature films produced fully or

partly in Odisha Exempted from Entertainment Tax.

b) Producers of films who utilize the facilities of Kalinga Studio Limited, Film & Television Institute of Odisha and Kalinga Prasad Colour Processing Laboratory

Incentives in shape of subsidy subject to the ceiling limit and terms and conditions as may be laid down by OFDC

c) 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.

d) Multiplexes/ Cinema Halls shall be eligible to get allotment of government/ IDCO land at concessional industrial rate.

IPR-20015 contd..

23. Employment Rating based Incentive (Priority Sector)Sl.

Type Incentive Time Frame

a) Power Reimbursement in Power Tariff per unit for a period of 5 years

Shall apply within six months from the end of each Financial Year

b) Training Subsidy

The training subsidy shall be reimbursed only once for each trainee either for training of newly recruited trainee or for skill up-gradation.

Shall apply within six months from the end of each Financial Year

c) Land for Workers Hostelsd) 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 SubsidyA1 / B1 10% of investment in Plant & M/c with a max. of Rs. 10.0 CrA2 / B2 10% of investment in Plant & M/c with a max. of Rs. 20.0 CrA3 / 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..

Sl.

Name of Activity Sl Name of Activity

01 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

20 Units for physical mixing of fertilizers.

02 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)

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).

03 a. 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

22 Manufacturing of tarpaulin out of canvas cloth with investment in plant and machinery of less than Rs. 20 Lakhs

03.b. Units without Spice-mark or Agmark 23 Saw mill, sawing of timber.04 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.

24 Carpentry, joinery and wooden furniture making except when part of a wood based cluster of at least 20 units

05 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.

25 Drilling rigs, Bore-wells and Tube-wells

06 Preparation of sweets and savouries etc. 26 Units for mixing or blending / packaging of tea07 Bread-making (excluding mechanised bakery) 27 Units for cutting raw tobacco and sprinkling jaggery for chewing

purposes and Gudakhu manufacturing units08 Mixture, Bhujia and Chanachur preparation units 28 Units for bottling of medicines09 Manufacture of Ice candy 29 Bookbinding / Rubber stamp making / Making notebooks,

exercise notebooks and envelopes.10 Manufacture and processing of betel nuts 30 Distilled water units11 Hatcheries, Piggeries, Rabbit or Broiler farming 31 Tailoring (other than readymade garment manufacturing units)12 Standalone Sponge Iron plants 32 Repacking / stitching / printing of woven sacks out of woven

fabrics13 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

33 Pre- processing of oil seeds- decorticating, expelling, crushing, parching, and frying

14 Cracker-making units 34 Aerated water and soft drink units15 Tyre retreading units with investment in plant and machinery of less

than Rs.20 Lakhs 35 Bottling units or any activity in respect of IMFL or liquor of any

kind16 Stone crushing units. 36 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

17 Coal / Coke screening, coal washing, Coal/ Coke Briquetting. 37 Polythene less than 40 micron in thickness / recycling of Plastic materials

18 Production of firewood and charcoal 38 Thermal power plants19 Painting and spray-painting units with investment in plant and

machinery of less than Rs.20 lakhs 39 Repackaging units

Activities not eligible for fiscal incentives as per IPR 2015 Activities not eligible for fiscal incentives as per IPR 2015 but 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.

Note: List of Industrial units indicated above may be modified by the Government from time to time

ODISHA FOOD PROCESSING POLICY, 2013

Activity Item includes RemarksAgro and Marine processing

GradingGrindingCutting/ cubing/dicingSorting

PackingDehydrated packing, vacuum packing, nitrogen sachet packing, tetra packing, canning, bottling

WaxingDrying Spray drying dehydrationIrradiation any value add activity Agricultural, horticulture and

forest produceProjects in hi-tech and bio-technology based agriculture

Food Processing

Processing of ready-to-eat or ready-to-cook food and manufacturing of additivesPreservativesColors and fragrant Manufactures for food

products.Agro Infrastructure providers

WarehouseCold storageTransportation food items Reefer vans/ containers Processing machinery producers

Quality assurance providers

Food testing laboratory

Certification agencies

Research and Human Resource Development

Research & DevelopmentProduct & Crop Development Institutes

Human Resource Development Courses in Food Processing, Agro Management

OFPP, 2013Eligible itemsEligible items

Illustrative list of eligible items:Sl Items /Activities1. Fruit and Vegetable Processing, including grading / packing;2. Food grain milling / processing, using modern technology and

equipment;3. Dairy products (including milk processing and milk based

products);4. Processing of Poultry, eggs, meat and meat products;5. Fish Processing including shrimps;6. 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);

7. Fruit based ready to serve beverages;8. Produce of animal husbandry9. Spices and condiments10

.Tissue culture laboratories, green houses, green house nurseries & seed production standards, mushroom laboratories;

OFPP, 2013

Illustrative list of eligible items (Continued)

Sl. Items /Activities11. Floriculture;12. Cold Storage Enterprises;13. Refrigerated transport vehicles / containers (excluding second

hand refurbished vehicles / container);14. Enterprises manufacturing food- grade packaging materials for

food processing industry;15. Enterprises engaged in packaging, canning and bottling of

processed foods;16 Enterprises manufacturing additives, preservatives, colours

and fragrant for the processed food industry;17 Bio-technology and bio-informatics industries;18. Commodity grading and packaging industry;19. 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;

20. Sugar industry (excluding molassess / alcohol)21 Cattle/ Poultry/ Prawn Feed/ Fish Feed*

(*Ref: Notification no. 4365/MSME / Dt. 11.06.2015)

OFPP, 2013

List of ineligible itemsSl Items /Activities1 Rice huller and seller2 Flour mill of less than 50 TPD capacity3 Masala making without cold process grinding4 Bread/ Confectionery except mechanization5 Preparation of sweet meat and salted snacks except

mechanized units. ( Ref: Notification No. 4365/ Dt.11.6.2015)6 Production of ice block7 De-mineralized water and distilled water manufacturing units8 Processing of betel nuts9 Tea blending units10

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).

OFPP, 2013

IncentivesIncentives OFPP, 2013

Effective Date

If commenced FCI prior to 15.3.13, it must commence production during 15.3.13 to 14.3.15If commenced FCI after 15.3.15, it must commence production within two years from date of 1st FCI.

Sl. Incentive Quantum Time Frame1. Rebate

on Land 25% of price of IDCO Land in Normal Area. Additional 25% for KBK & potential food clusters.

New units

Within 6 months from date of Commercial ProductionProject Cost (Rs.

in Cr.)Max. land to be

available1 to 50 Ac. 5.00 Existi

ng E/D

Within 6 months from date of Expansion or, Diversification

Above 50 to 100 Ac. 10.00Above 100 Ac.30.00

2. Capital Investment Subsidy (CIS)

New, Expansion & Diversification cases and Top-up cases

-do-

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.

3. Electricity Duty Exemption

New Enterprises

Maximum 10 years from Date of Production

-do-

Exiting Enterprises

Maximum 10 years from date of commencement of policy.

Sl. Incentive Quantum Time Frame4. Interest

SubsidyNew and Top-up

cases5% 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.

5. 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

6. 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

Incentives contd. OFPP, 2013

Sl Incentive Quantum Eligibility Criteria

Time Frame

7. Mega Food Park, Sea Food Park

Capital Subsidy @ 20% of project cost to SPV

Maximum – Rs. 15.00 crores or, equity participation by GoO

As per scoring pattern. CIS will be front ended to be released in 4 phases as per progress.

After preparation of DPR and before making any physical progress on the ground. In case of MFP already approved by MoFPI, GoI, the applicant shall apply along with a copy of In-Principle approval letter of GoI

Cost of preparation of DPR

Rs. 5.00 lakhs for Mega Food Park. If project report is prepared for carbon credit – 50% of consultancy charges with a cap of Rs. 20.00 lakhs

In-Principle approval of MoFPI, GoI is required.

VAT reimbursement - 100% for 10 years

Max -200% of Fixed Capital Investment

New and Existing enterprise in the park shall be eligible

Within 6 months from the end of each financial year

For Industrial units set up in Mega Food Parks & Sea Food park

•CIS: 25% with ceiling of Rs.2.00 cr. for General entrepreneurs in non-KBK 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

As per other units set up outside Mega Food Park

As per other units set up outside Mega Food Park

OFPP, 2013Incentives contd.

MSME DEVELOPMENT POLICY, MSME DEVELOPMENT POLICY, 20092009

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

MSMED POLICY-2009 Contd.

Sl.

Name of Activity Sl

Name of Activity

01 Rice0 1hu Hullers and Rice mills with investment in plant and machinery of less than two crore rupees.

27 Units for cutting raw tobacco and sprinkling jaggery for chewing purposes and Gudakhu manufacturing units.

02 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.

28 Units for bottling of medicines.

03 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.

29 Bookbinding.

04 Confectionary (excluding mechanized confectionary). 30 Rubber stamp making.05 Preparation of sweets and numkeens, etc. 31 Making notebooks, exercise notebooks and envelopes.06 Bread-making (excluding mechanised bakery). 32 Printing press.07 Mixture, Bhujia and Chanachur preparation units. 33 Photo copying.08 Manufacture of Ice candy and Ice fruits. 34 Stenciling units.09 Manufacture and processing of betel nuts. 35 Processing of Stencil paper.10 Hatcheries, Piggeries, Rabbit or Broiler farming. 36 Distilled water units.11 "Iron and Steel Processors" including cutting of sheets,

bars, angles, coils, M.S. sheets, recoiling, straightening, corrugating, drop hammer units etc.

37 Distillery Units.

12 Cracker-making units. 38 Tailoring (other than readymade garment manufacturing units).

13 Tyre retreading units with investment in plant and machinery of less than ten lakh rupees.

39 Repacking and stitching of woven sacks out of woven fabrics.

14 Stone crushing units. 40 Laundry / Dry cleaning.15 Coal / Coke screening units. 41 Photographic studios and laboratories.16 Coal / Coke Briquetting. 42 Clinical/Pathological laboratories.17 Production of firewood and charcoal. 43 Beauty parlours.18 Painting and spray-painting units with investment in

plant and machinery of less than ten lakh rupees.44 Video parlours.

19 Units for physical mixing of fertilizers. 45 Guest Houses / Restaurants.20 Brick-making units (except units making refractory bricks

and those making bricks from flyash, red mud and similar industrial waste).

46 Goods and passenger carriers.

21 Manufacturing of tarpaulin out of canvas cloth with investment in plant and machinery of less than ten lakh rupees

47 Decorticating, expelling, crushing, parching, and frying of oil seeds.

22 Oil mills including oil processing, filtering, colouring, decolouring, refining, hydrogenation, scenting etc except Oil refining with / without solvent extraction facility.

48 Fruit Juice base, aerated water and soft drink units (excepting the units manufacturing fruit pulp or fruit pulp and juice out of it).

23 Saw mill, sawing of timber. 49 Distillery, Bottling units or any activity in respect of IMFL or liquor of any kind.

24 Carpentry, joinery and wooden furniture making. 50 Size reducing, size separating units.25 Drilling rigs, Bore-wells and Tube-wells. 51 Grinding and mixing units.26 Units for mixing or blending of tea.

Activities not eligible for incentives as per IPR Activities not eligible for incentives as per IPR 20072007

MSMED POLICY-2009 Contd.

MSMED POLICY-2009 Contd.Fiscal

IncentivesIncentives Eligibility Rate / period Time line for filing

ApplicationCapital Investment Subsidy (CIS)

MSMEs (others) 10% of FCI up to Rs. 8 lakh

Within Six months of Commencement of ProductionMSMEs of SC /

ST/ Women, Technical Degree / Diploma holder entrepreneurs

12% of FCI up to Rs.10 lakhs

VAT Reim-bursement as in IPR-2007

MSEs set up by Women entrepreneurs

Additional period of 2 years

Within six months from the end of each financial year

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 PROCUREMENT PREFERENCE POLICY FOR MICRO & SMALL ENTERPRISES, 2015

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/ servicesFinancial Assistance

Sl. Category Quantumi. 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 innovative idea / products / services as prize money as a part of state level felicitation

Rs 3,00,000

OSIC Ltd. is the Nodal Agency for implementation of the scheme

ODISHA YOUTH INNOVATION SCHEME

CLUSTER APPROACH

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)

What is a Cluster ?

CLUSTER APPROACH

Types of Cluster

CLUSTER APPROACH

Sl Type of cluster Criteria1. 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 among producing enterprises

5. Dynamic / Underperforming

Degree of vibrancy & growth in recent past

6. Export Primary market located abroad

1. Revitalizing the Industry Association,2. Identifying gaps in the Cluster and effort to

bridge them,3. Providing new market linkages4. Pushing cluster to export5. Improving quality6. Setting up a common facilities (common

machinery centre, common lab) in the cluster to be managed by entrepreneurs themselves

7. Design inputs into cluster8. Sustainability

Developing Cluster means ……

CLUSTER APPROACH

Micro & Small Cluster Development Programme (MSE-CDP) – Government of India

• 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%

Office memorandum No. 1(17)/SICDP/Cluster/TM/2006 dated 10.02.2010 Of the Development Commissioner (MSME)

Schematic Support CLUSTER APPROACH

State Initiatives for Micro & Small Cluster Development Programme (SIMSECDP)

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

Industries Department Notification No.I-SI-5/2010.IND – 14824/I dated 29.09.2010

Schematic Support

CLUSTER APPROACH

Status of Clusters in Odisha i. Number of Clusters identified 56

ii. Preliminary DSR Completed 50iii. DSR completed 33iv. DSR under process 5v. DSR proposal submitted to O/o DC (MSME) 3vi. Soft interventions approved 10vii. DPR submitted for approval of CFC

(Pharmaceutical Cluster at Cuttack-Bhubaneswar and Cashew Cluster at Bramhagiri, Puri)

2

viii. CFC Sanctioned & project under implementation(Cashew cluster at Rambha, Ganjam and *Ayurvedic Cluster at Berhampur, Ganjam)

2

ix. CFC completed (Bargarh Rice Milling Cluster) 1* Assisted under AYUSH Cluster of Department of AYUSH, Government of India

* * * *

Policies & Operational Guidelines Policies & Operational Guidelines available at:available at:Sl.

Policy Department Website

1 Industrial Policy Resolution, 2015 & Operational Guidelines

Industries Department

http://www.odisha.gov.in/industries/index.htm

Directorate of Industries

http://diodisha.nic.in/

2. Food Processing Policy, 2013 & Operational Guidelines

MSME Department

Directorate of Industries

http://www.msmeodisha.gov.in/

http://diodisha.nic.in/

3. Procurement Preference Policy for MSEs, 2015

4. Odisha MSMED Policy, 2009 & Operational Guidelines

5. Youth Innovation Fund Scheme

Application ProcedureApplication ProcedureEligible 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.

Contact DetailsContact 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: secy-msme.od@nic.in | Web: http://www.msmeodisha.gov.in/

3. Directorate of Industries, Odisha

Killa Maidan, Buxi Bazar, Cuttack-753001, OdishaTel:0671-2301892 | FAX:0671- 2301227 email: diorissa@nic.in | http://diodisha.nic.in/ 

4. Directorate of Export Promotion & Marketing

Tel: 0674-2530440 | FAX: 0674-2533268 | email: depmodisha@gmail.com | http://depmodisha.nic.in/

5. Invest Odisha (Industrial Promotion and Investment Corporation of Odisha Limited – IPICOL)

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/

THANKS