Odisha showcases investment opportunities in IT & ITeS sector

Bhubaneswar: In order to strengthen its position in the IT&ESDM sector, Odisha government organized an investment meet in New Delhi highlighting investment opportunities in the Industries, Electronics and IT (E&IT) and StartUp sectors.

The event
was attended by representatives from the IT and Electronics industry based in
the National Capital Region.

The
investment meet is part of Odisha Government’s initiative to connect with
potential investors in the lead up to the third edition of the biennial
investment conclave ‘Make in Odisha’ (MIO) scheduled from November 30 to
December 4 this year.

A string of reforms to ease and facilitate industrial infrastructure and commitment to cut down carbon footprint through the distribution of LED bulbs helped Odisha climb up the rankings of Niti Aayog’s Index.

The states
were appraised on the basis of efforts made to achieving the mandated
Sustainable Development Goals (SDGs) by 2030.

According to
a recent Niti Aayog report, Odisha is the second fastest mover state with a
score of 58. 2019 witnessed Odisha gaining nine points as its score moved up
from 51 in 2018.

Hemant
Sharma, Secretary (Industries & MSME) said, “Odisha is known to be one of
the first state to get the top four IT companies to set up centers on its turf.
Our next phase is to ramp-up information technology (IT) and ITes (IT enabled
services). In its geographic location, Odisha has many inherent advantages. We
have an abundance of rivers and some well-developed ports”.

Speaking at
the roadshow, Dr Nitin Jawale, Managing Director, IPICOL said, “Odisha has
progressed industrially and we are at a very good position now. We are
expecting further investments in 2020. Recognizing the importance of ESDM the
government has announced a special incentive package scheme for the sector
comprising of subsidy on fixed capital investment for plant & machinery,
exemption from Entry Tax on acquisition of machinery and equipment, Training
subsidy, etc. We are very hopeful that we will be able to establish ourselves
as the premier industrialized state in the country.”

Manoj
Mishra, Secretary, E&IT department, said: “Odisha is en route to
emerging as one of the most favored destinations for IT and electronics
investments. The government has recast its existing Information &
Communications Technology (ICT) policy. In the reformulated policy, the
government is offering reimbursement of the Goods & Services Tax (GST),
both to new and existing units.

Post the
policy amendment, new units in IT, ITes and ESDM verticals can avail
reimbursement on State GST for five years from the date of commercial
operations. Existing units can also avail the benefit if they opt for
expansion, modernization and expansion, but it would only apply to enhanced
production over and above the current rated capacity and limited to 100 per
cent of the additional cost of plant and machinery.”

Hemant
Sharma, Secretary (Industries & MSME); Manoj Mishra, Secretary E&IT
department, Nitin Bhanudas Jawale, managing director at Industrial Promotion
& Investment Corporation of Odisha Ltd (IPICOL) and Prasant Biswal, CEO of
Startup Odisha held one-on-one meetings with representatives from various
companies.

“Efforts
are also underway to develop air cargo facilities to fulfill industry
requirements.  In addition, the state
government has developed an electronics manufacturing cluster (EMC) straddling
207 acres at Bhubaneswar’s periphery. The cluster provides plug and play work
ambiance where investors can walk in and start businesses without ado,”
added Mishra.

Odisha is
one of the leading states when it comes to “Ease of doing business”
and recently edged past Maharashtra as the most attractive destination for investments
during H1 or the April-September period of FY20.

The state
has recently engaged foreign investors from Japan, Korea, Germany, UAE, Saudia
Arabia, USA and Singapore. In September 2019, a delegation of the Republic of
Korea with officials drawn from top corporations like Samsung Electronics,
Samsung India, LG Electronics, Hyundai Motors and Kia Motors as well as
representatives from Korea International Trade Association, Korea Trade
Insurance Corporation, Korea Plus and Korea Trade Investment Promotion Agency
had visited Odisha.

The road
show focused on how the state is growing and attracting investments in the IT
and Electronics sector.

India is one
of the major contributors to the international IT services market. The IT
industry is expected to grow by 15% in the future and India will be a major
software exporter.

The State
has created state-of-the-art infrastructure facilities equipped with
plug-n-play facilities and abundant power supply to ensure smooth operation of
IT sector. Odisha has attracted some of the largest IT companies in India.
Bhubaneswar is home to the four largest IT companies in India, TCS, Infosys,
Wipro and Mahindra Satyam.

The state
has an exclusive ICT policy providing incentives and creating a sound ecosystem
to the startup movement. The IPR 2015 identifies IT/ITES and ESDM as focus
sectors.

Odisha is
one of the early movers in recognizing the potential of IT &ITeS sector and
facilitated the setting up of the Infosys training center in 1998. The presence
of all four leading IT companies – TCS, Infosys, Wipro and Tech Mahindra in
Bhubaneswar speaks volumes for the congenial and proactive industrial climate
for IT in the state.

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