The IT department to soon announce a policy offering a one-time recruitment bonus of ₹25,000 to IT firms for each employee they hire from Odisha
OdishaPlus Bureau
The Odisha government is preparing to launch a new information technology (IT) policy aimed at significantly increasing the incentives for companies to hire local youth.
This upcoming policy, set to be announced by the state IT department, will offer a one-time recruitment bonus of ₹25,000 to IT firms for each employee hired from Odisha, provided they stay employed for at least one year. The total incentive can reach up to ₹25 lakh per unit over five years from when operations begin.
In the 2022 IT policy, the Odisha government introduced a one-time incentive of ₹10,000 for each new executive-level employee from Odisha. The new proposal includes an additional ₹1,000 for every woman, SC/ST individual, or person with disabilities hired by these companies.
Local young people will receive full reimbursement for their contributions to the Employees State Insurance (ESI) and Employees Provident Fund (EPF) for their employees. Companies that establish IT parks in the state can benefit from a complete stamp duty exemption on their first transaction and a 50% exemption on the second transaction related to lease or sale agreements for government-allotted land or space.
For companies investing over ₹1,000 in IT parks, the government intends to reimburse 15% of the investment, up to a maximum of ₹200 crore. Eligible IT units, towers, or parks will enjoy a full exemption from Electricity Duty for five years starting from when they begin commercial operations in the state. Additionally, these IT units, towers, or parks will also receive full reimbursement for State GST.
The new policy includes important features such as a 30% reimbursement on fixed capital investment for units investing less than ₹100 crore. For investments between ₹100 crore and ₹200 crore, the reimbursement is 25%. Units investing over ₹250 crore will receive a 20% reimbursement.
For IT Towers, at least 70% of the built-up area must be dedicated to IT/ITeS units, while up to 30% can be used for support services like public utilities, cafeterias, food zones, and recreational centers. This IT policy aims to boost growth in the state’s IT sector and offers rewards to companies that hire 2-20 interns annually, with 50% of each intern’s stipend reimbursed.
Additionally, the policy provides incentives for the AVGC (Animation, Visual Effects, Gaming, and Comics) industries, including capital subsidies, reimbursement for production costs of animation films, series, and games, as well as recruitment and marketing support.
IT companies receive various benefits, such as being exempt from regular inspections by the Labour department under several laws, including the Factories Act 1948 and the Minimum Wages Act. They are also free from regulations under acts like the Maternity Benefit Act and the Child Labour (Prohibition & Regulation) Act. Additionally, the State government has classified IT units as Public Utility Services under the Industrial Disputes Act, of 1947, protecting them from disruptions due to strikes.
In its 2022 IT policy, Odisha set a goal of ₹10,000 crore in annual IT exports. However, it achieved ₹7,500 crore in 2023-24, an increase from ₹5,207 crore in 2021-22.
