In recent years, the Government of Odisha has launched several innovative schemes to foster the growth of Micro, Small, and Medium Enterprises (MSMEs) in the manufacturing sector. These initiatives aim to transform Odisha into a manufacturing powerhouse, creating jobs and driving economic growth across the state.
Odisha MSME Development Policy 2022: A Game-Changer for Manufacturing
The Odisha MSME Development Policy 2022 stands out as a cornerstone initiative, designed to create a thriving ecosystem for manufacturing MSMEs. This comprehensive policy focuses on several key areas:
For more information Visit: Start an Industry in Odisha
Infrastructure Development
The policy emphasizes the creation of quality infrastructure to support manufacturing MSMEs. This includes the development of industrial estates, parks, and clusters specifically tailored to the needs of small and medium manufacturers.
Growth-Enabling Incentives
To encourage investment and expansion in the manufacturing sector, the policy offers a range of fiscal incentives. These include:
- Land Incentives: Preferential allotment and subsidized rates for industrial land.
- Stamp Duty Exemption: Reducing the cost of property transactions for manufacturing units.
- Electricity Duty Exemption: New enterprises with investments up to INR 50 crores in plant and machinery are exempt from electricity duty for up to 750 KVA for five years.
Focus Sectors
The policy identifies eight focus sectors for concentrated development in the manufacturing domain. These sectors are strategically chosen to leverage Odisha’s natural resources and competitive advantages.
Related Article:Best Business Opportunities in Odisha (Orissa …
Support for Raw Material Sourcing
Recognizing the challenges MSMEs face in procuring raw materials, the policy includes measures to facilitate easier and more cost-effective sourcing of inputs for manufacturing units.
Capital Investment Subsidy: Fueling Manufacturing Growth
One of the most significant incentives under the new policy is the Capital Investment Subsidy (CIS) for manufacturing MSMEs. This scheme provides:
- Up to 25% subsidy on investments in plant and machinery for new units.
- Additional support for units in industrially backward areas.
- Extra incentives for manufacturing enterprises owned by women, SC, ST, and persons with disabilities.
SGST Reimbursement: Boosting Cash Flow for Manufacturers
The State Goods and Services Tax (SGST) reimbursement scheme is another powerful tool in Odisha’s arsenal to support manufacturing MSMEs. This initiative allows eligible units to claim reimbursement of the GST paid, effectively reducing their tax burden and improving cash flow.
Project report: Start Business Ideas in Odisha
Technology Upgradation Support
Recognizing the importance of staying competitive in the global market, Odisha’s schemes include:
- Technology Purchase Subsidy: Encouraging MSMEs to adopt cutting-edge manufacturing technologies.
- Quality Certification Support: Assisting manufacturers in obtaining international quality certifications.
- Zero Defect Zero Effect (ZED) Certification: Promoting sustainable and high-quality manufacturing practices.
Skill Development and Employment Generation
The Odisha government’s schemes also focus on creating a skilled workforce for the manufacturing sector:
- Employment Cost Subsidy: Incentivizing manufacturers to create new jobs.
- Skill Upgradation Programs: Collaborating with industry to provide relevant training.
Related Database on: Odisha (Orissa, India) – Business, Industrial Directory, Database, List of Companies, Small & Medium Enterprises (SME) & Industries [.xlsx, excel format] 4th edition
Financing Support for Manufacturing MSMEs
Access to finance is crucial for manufacturing MSMEs. Odisha’s schemes address this through:
- Interest Subsidy: Reducing the cost of borrowing for manufacturing units.
- Credit Guarantee Scheme: Facilitating easier access to loans without collateral.
- Assistance for Capital Raising: Supporting MSMEs in listing on the SME exchange.
Sustainable Manufacturing Initiatives
Odisha’s schemes also promote sustainable manufacturing practices:
- Water Conservation Audit Reimbursement: Encouraging efficient water use in manufacturing.
- Energy Conservation Audit Reimbursement: Promoting energy-efficient manufacturing processes.
MSME Awards: Recognizing Manufacturing Excellence
To foster a spirit of competition and excellence, the Odisha government has instituted annual State Awards for MSMEs. These awards recognize outstanding contributions in various aspects of manufacturing, with prizes ranging from INR 51,000 to INR 1,51,000.
Related Article: Startup Business Ideas in Odisha (Orissa).
Sector-Specific Manufacturing Schemes
In addition to the overarching MSME policy, Odisha has launched sector-specific schemes to boost manufacturing in key industries:
- Food Processing: The PM Formalization of Micro Food Processing Enterprises (PM FME) Scheme supports small food manufacturers.
- Handloom and Handicrafts: Special initiatives to promote traditional manufacturing sectors.
- Electronics Manufacturing: Incentives for setting up electronics manufacturing units in dedicated clusters.
Ease of Doing Business for Manufacturers
To complement these schemes, Odisha has implemented several ease of doing business measures specifically for manufacturers:
- Single-window clearance system for manufacturing units.
- Streamlined land allotment process for industrial use.
- Simplified labor compliance procedures for manufacturing MSMEs.
Read this Market Research Report
Leveraging Central Government Schemes
Odisha actively promotes and facilitates the implementation of central government schemes for manufacturing MSMEs, including:
- Prime Minister Employment Generation Programme (PMEGP): Supporting new manufacturing micro-enterprises .
- Credit Linked Capital Subsidy Scheme (CLCSS): Assisting in technology upgradation for small manufacturers.
- Micro and Small Enterprises – Cluster Development Programme (MSE-CDP): Developing manufacturing clusters.
Youtube Video: Investment Opportunities in Odisha (Orissa).
The Road Ahead: Odisha’s Manufacturing Vision
With these comprehensive schemes and policies, Odisha is positioning itself as a premier destination for manufacturing MSMEs. The state’s focus on infrastructure development, financial incentives, technology support, and skill development creates a holistic ecosystem for manufacturing growth.
As these schemes continue to evolve and new initiatives are introduced, Odisha is set to witness a manufacturing revolution. The emphasis on sustainable practices, quality certifications, and innovation ensures that the state’s manufacturing sector will not only grow but also remain competitive in the global market.
For entrepreneurs and investors in the manufacturing sector, Odisha’s schemes present a golden opportunity to establish and expand their operations in a supportive and growth-oriented environment.
