Odisha Cabinet Approves Amendments to Food Processing Policy

New committee structure aims to simplify fiscal incentive process for MSMEs, boost investments and employment in food processing sector
Bhubaneswar: The Odisha Cabinet has approved key amendments to the Odisha Food Processing Policy 2016, intending to streamline the process of administering and approving fiscal incentives for food processing units in the state. These changes have been made to bring the older policy in alignment with the provisions of the more recent Odisha Food Processing Policy 2022.
The core of the amendment focuses on restructuring the approval committees responsible for clearing fiscal incentive claims made by Micro, Small, and Medium Enterprises (MSMEs). Previously, three separate committees handled different levels of investment:
* The Sub-Divisional Level Committee (SDLC), chaired by the Director of Industries, Odisha, approved claims up to ₹25 lakh.
* The Sub-State Level Empowered Committee (Sub-SLEC), chaired by the Secretary of the MSME Department, handled claims between ₹25 lakh and ₹1 crore.
* The State Level Empowered Committee (SLEC), chaired by the Chief Secretary, cleared claims exceeding ₹1 crore.
Under the new structure, the committee system has been reorganized into three levels with updated investment thresholds:
* District Level Committee (DLC), chaired by the Collector and District Magistrate of the respective district, will now approve investments up to ₹1 crore.
* State Director Level Committee (SDLC), chaired by the Director of Industries, Odisha, will handle claims from ₹1 crore to ₹10 crores.
* State Level Committee (SLC), chaired by the Secretary of the MSME Department, will be responsible for clearing projects involving investments between ₹10 crores and ₹50 crores.
This restructuring is expected to significantly reduce red tape and simplify procedures for MSMEs seeking government incentives under the food processing policy. By decentralizing the approval authority and making it more accessible at the district and state director levels, the government aims to expedite the processing of applications and promote faster implementation of food processing projects.
The amendments are also seen as a move to attract more private investment in Odisha’s agro and food processing sectors, which in turn is expected to create more job opportunities in both rural and urban areas.
The Odisha Food Processing Policy 2022, notified on November 30, 2022, aims to transform the state into a leading hub for food processing in eastern India. The policy offers a range of fiscal and non-fiscal incentives to entrepreneurs and investors. With these recent amendments, the state government is seeking to ensure smoother implementation and faster delivery of benefits promised under the updated policy framework.