Industry Odisha Bureau, Aug13: The Odisha government has decided to amend its Semiconductor Manufacturing and Fabless Policy to provide incentive support to component manufacturing units.
State cabinet led by Chief Minister Mohan Charan Majhi has approved a total of 10 proposals from different department including amendments to the Odisha Semiconductor Manufacturing and Fabless Policy last evening.
Originally notified in September 2023 and subsequently amended in March 2024 and July 2025, the Semiconductor Manufacturing and Fabless Policy has played a pivotal role in attracting investments in strategic segments such as compound semiconductor units, said Chief Secretary Anu Garg.
So far, proposals from five companies have been approved, including two projects that secured support under the India Semiconductor Mission (ISM), she said.
In response to stakeholder feedback and evolving national policy priorities, the third amendment was made, Garg said.
With this amendment, the government will support emerging segments such as semiconductor equipment manufacturing and R&D, manufacturing of semiconductor-grade chemicals, gases and materials, along with supply chain components, research and development for the advanced technologies with a view to strengthening the overall semiconductor ecosystem in the state, she added.
The State will provide additional fiscal support of 25 percent of the eligible capital expenditure (capex) for projects approved by the India Semiconductor Mission (ISM), she informed.
Similarly, the Cabinet has given approval for amendment to the Odisha Renewable Energy Policy to accelerate renewable energy development, enhance investor confidence and ensure affordable green power for consumers in the state, Garg stated.
The state decided to extend Electricity Duty Exemption at the rate of 50 paise per unit to eligible net-metering consumers on energy consumption from renewable energy projects established within the state for a period of ten years from the project’s commissioning date.
The government will also provide a 20 paise per unit state transmission utility (STU) charge exemption for standalone battery energy storage systems (BESS) commissioned in the state, she said.
The Cabinet approved the execution of the Parbati Giri Megalift Irrigation Project with an outlay of Rs 12,458 crore from the state’s own resources over 5 years, from 2026-27 to 2030-31 to create an additional irrigation potential of 2,62,275 hectares through 161 projects in all districts of the state.
Further, the State Government approved the improvement of tanks and minor irrigation projects (MIPs) phase-3. With an outlay of Rs 389 crore, irrigation facilities over 15,700 hectares of ayacut will be revived under the scheme, Garg said.
Besides, the cabinet decided to implement Odisha State Workflow Automation System (OSWAS) 3.0 with a cost of Rs 122.60 crore for paperless office operations.
