IT dept seeks changes in IPR to promote ESDM sector

To give a boost to the Electronic System Design and Manufacturing (ESDM) sector, the state IT (information technology) department has pitched for inclusion of this sunrise sector in the objectives of the draft Odisha Industrial Policy - 2014, which is on its last leg of finalization.

The draft IPR will replace the old one formulated in 2007. IPR-2014 envisages to promote sectors such as IT/ ITes (enabled services), biotechnology, agro, marine and food processing, tourism, textiles and apparel and automotive industries, specifically, those offer strong linkages to employment generation and exports, apparently missing out the ESDM sector.

Before the finalization of the new IPR, the IT department has requested for inclusion of the ESDM industries in the objective list.

"In the subsection 2.3 in section-2 (objectives) of Draft Odisha Industrial Policy-2014 IT/ITES have been mentioned. It is requested to include ESDM in the said objectives", RN Palai, special secretary, state IT department, wrote to the industries secretary.

In addition, the IT department has moved the industries department for inclusion of the ESDM sector in the labor reforms proposed in the draft IPR for hassle free operation of the ESDM units.

"Necessary labour reforms for IT/ITes and electronics and telecommunication units have been proposed in the 11(e) and (f) of the draft Odisha Industrial Policy - 2014. ESDM industries may be included specifically in the above sections", Palai wrote in the letter.

In the proposed IPR, while section 11(e) enlists the categories of industries and establishments that will be declared as public utility services for the purpose of application of provisions under Chapter-V of the Industrial Disputes act 1947 , 11(f) lists the categories to be exempted from the provisions of Chapter VI of Factories Act 1948 (working hours of adults).

IT, ITes and ESDM units are identified as the priority sectors in the soon to be finalized industrial policy along with agro and food processing, ancillary and downstream, automobiles and auto-components, bio-technology among others.

It may be noted that ESDM sector is poised to generate cumulative revenue of Rs 18,800 crore in Odisha by 2024, as per the Strategic Roadmap for Development of ESDM Sector prepared by the India Electronics & Semiconductor Association ( IESA), a premier trade body representing the ESDM sector.

The industry body has also estimated that the sector has a potential to generate about 60000 jobs in the next 10 years in the state.