Odisha to Unveil New IT Policy with Increased Incentives for Local Hiring
The Odisha government is set to introduce a new Information Technology (IT) policy aimed at accelerating the state’s IT sector growth while significantly increasing incentives for companies hiring local talent. The policy, which will be launched soon by the state IT department, proposes a more than twofold increase in recruitment incentives for companies employing youth from Odisha.
Under the new policy, IT companies will receive a one-time recruitment assistance of ₹25,000 per employee hired from Odisha, provided they remain in service for at least one year. The maximum limit for this incentive is set at ₹25 lakh per unit over a period of five years from the start of operations. This marks a significant increase from the ₹10,000 incentive per local recruit introduced in Odisha’s 2022 IT policy. Additionally, companies hiring women, SC/ST candidates, or physically disabled individuals will receive an additional ₹1,000 per hire.
To further support job creation, IT firms employing local youth will be eligible for a 100% reimbursement of Employees’ State Insurance (ESI) and Employees’ Provident Fund (EPF) contributions for their workforce.
Incentives for IT Parks and Large-Scale Investments
Companies establishing IT parks in Odisha will benefit from 100% stamp duty exemption on the first transaction and 50% exemption on the second transaction for leased or purchased government-allotted land or built-up spaces. For investments exceeding ₹1,000 crore, the government will reimburse 15% of the investment with a ₹200 crore cap.
Eligible IT units, towers, and parks will also receive 100% exemption from electricity duty for five years and a 100% reimbursement of State GST. Further capital investment reimbursements include:
- 30% for investments below ₹100 crore
- 25% for investments between ₹100 crore and ₹200 crore
- 20% for investments above ₹250 crore
Boost for IT Infrastructure and AVGC Industry
To ensure infrastructure development, at least 70% of the built-up area in IT towers must be allocated to IT and ITeS units, while up to 30% can be used for support infrastructure, including public utilities, food zones, and recreational centers.
The policy also extends incentives to the AVGC (Animation, Visual Effects, Gaming, and Comics) industry, including capital subsidies, reimbursement of production costs, recruitment assistance, and marketing support.
Internship and Regulatory Exemptions
IT firms hiring 2 to 20 interns annually will be reimbursed 50% of the stipend paid to each intern. Additionally, the government has granted IT companies exemptions from routine inspections under multiple labor laws, including the Factories Act, Minimum Wages Act, and Contract Labour Act, among others.
Recognizing IT units as Public Utility Services under the Industrial Disputes Act, 1947, the state aims to shield them from disruptions caused by strikes and bandhs.
Odisha’s IT Growth and Future Goals
In the 2022 IT policy, Odisha had set a target of ₹10,000 crore in annual IT exports. While the state achieved ₹7,500 crore in 2023-24, up from ₹5,207 crore in 2021-22, the new IT policy aims to drive faster expansion and attract more investments.
With enhanced incentives, ease of business reforms, and a focus on infrastructure, the Odisha government is positioning the state as an emerging IT hub that fosters local employment and attracts major IT players.
