Key Objectives

• Promote entrepreneurship across urban and rural areas.

• Facilitate growth of new MSMEs and expansion of existing ones.

• Encourage inclusion of women, SC/ST, and differently-abled entrepreneurs.

• Ensure equitable industrial development across all districts.

• Promote green and sustainable practices and support technology upgrades.

• Improve ease of doing business through online systems and faster clearances.

Key Benefits & Features for Business Owners

1. Comprehensive Incentives for MSMEs

The policy offers financial assistance for new enterprises as well as expansion, modernization, and diversification (E/M/D) of existing units.

Incentives include:

• Fixed Capital Investment Subsidy (CIS) — 25% of plant & machinery investment (up to ₹2 crore); 30% (up to ₹2.5 crore) for women, SC/ST, or differently-abled entrepreneurs.

• Additional 5% CIS for units in backward districts, focus sectors, or within industrial estates and corridors.

• Anchor units (large MSMEs supporting cluster development): CIS up to 30% (max ₹4 crore).

2. Land, Power, and Duty Benefits

• Land Allotment Subsidy – up to 100% of land cost for small investors (max 5 acres); 75% for medium units (max 25 acres).

• Stamp Duty Exemption – 100% for projects up to ₹10 crore; 75% for ₹10–50 crore.

• Electricity Duty Exemption – 5-year exemption for new units up to 750 KVA contract demand.

• Power Subsidy – reimbursement on drawal and connection charges for eligible MSMEs.

3. Technology, Quality & Green Incentives

• Technology Purchase Subsidy – 50% of technology cost (up to ₹20 lakh).

• Green Measures Support – +5% CIS for non-polluting, waste-recycling, renewable energy or effluent-treatment initiatives (max ₹25 lakh).

• Audit Reimbursements – 75% of energy audit cost (max ₹5 lakh) and 75% of water audit cost (max ₹1 lakh).

• Intellectual Property Support – 100% trademark reimbursement (max ₹3 lakh).

4. Infrastructure & Cluster Support

• Development of MSME Parks, Industrial Estates, and product-specific clusters with plug-and-play facilities.

• Focus on common facilities, logistics, and testing centers to reduce cost and improve competitiveness.

(Source: investodisha.gov.in | odisha.gov.in | IndiaFilings)

Empowered Facilitation

• District Industries Centres (DICs) and Regional Industries Centres (RICs) act as the nodal agencies for all MSME support.

• All applications for incentives and clearances are processed through online systems to reduce delays.

• A dedicated MSME Cell under the Department of MSME coordinates with other departments for approvals, land allotment, and infrastructure.

Performance & Implementation

Since the adoption of the policy:

• Odisha has witnessed rising MSME registrations through the Udyam portal.

• Several industrial clusters (engineering, food processing, apparel, plastic, etc.) are under development.

• The state has positioned MSMEs as a backbone for employment generation, supply chains, and exports.

(Sources: Government of Odisha MSME Department, Invest Odisha)

Eligibility & Coverage

• Applies to all Micro, Small, and Medium Enterprises (as per MSME Act definitions).

• Covers both manufacturing and service enterprises.

• Incentives available for:

  • New enterprises setting up in Odisha.

  • Existing MSMEs undertaking expansion, modernisation, or diversification.

• Special provisions for women, SC/ST, and differently-abled entrepreneurs.

Ease of Doing Business & Support Mechanisms

• Integrated online incentive management system for sanction and release.

• Single-window clearance through GO-SWIFT and MSME Odisha portals.

• Self-certification and time-bound approvals to enhance investor confidence.

• Facilitated access to finance, marketing support, and skill training programs.

(Source: msme.odisha.gov.in | investodisha.gov.in)

Why It Matters for Business Owners

Lower Startup Costs
With capital, land, and power subsidies, MSMEs enjoy significant cost advantages.

Inclusive Growth Opportunities
Targeted support for women, SC/ST, and rural entrepreneurs ensures wider participation.

Sustainable & Green Incentives
Additional benefits for adopting renewable and waste-management technologies.

Improved Ease of Doing Business
Digitised, transparent, and time-bound processes minimise bureaucratic friction.

Strategic Location & Market Access
Odisha offers strong connectivity to eastern ports and emerging industrial corridors — a key advantage for export-oriented MSMEs.

Important Considerations & Risks

• Ensure compliance with MSME definitions and registration (Udyam).

• Incentive disbursal depends on timely submission and adherence to policy timelines.

• Infrastructure readiness in certain regions may vary — assess your chosen district’s industrial facilities and logistics.

• Policy updates or clarifications may follow — check official notifications before final investment decisions.

Key Links & Contact Points

• Department of MSME, Government of Odisha: https://msme.odisha.gov.in

• Investment Facilitation Portal (GO-SWIFT): https://investodisha.gov.in
• Full Policy Document: Odisha MSME Development Policy 2022 (PDF)

Why This Policy Is Timely

Odisha’s MSME Development Policy 2022 marks a shift toward inclusive, technology-driven, and sustainable industrial growth.
It combines financial incentives, infrastructural readiness, and institutional support — making it a practical and lucrative opportunity for entrepreneurs and investors seeking to establish or scale businesses in the state.