Odisha govt to amend norms to woo ESDM investors

The state govt is planning to bring down the minimum investment criteria to Rs 100 cr from Rs 200 cr

After failing to woo investors in the Electronics System Design & Manufacturing (ESDM) sector, the Odisha government is set to amend its special incentive package scheme meant for investors in the electronics sector to the woo the investors

The state government is planning to bring down the minimum investment criteria to Rs 100 crore from Rs 200 crore earlier for the investors to avail the 25% investment subsidy on fixed capital investment.

“The industries department has suggested to ease the eligibility norms so as to attract investors in the ESDM sector. The minimum investment criteria for the investors will be fixed at Rs 100 crore for the players generating an employment for a minimum of 250 persons at the time of starting of production compared to Rs 200 crore investments and jobs to 500 people presently”, said a government official.

“This will open up opportunities for smaller players keen to invest at the EMC (electronic manufacturing cluster) coming up at Infovalley. The matter is pending with the state finance department. Following the nod the finance department the proposal will be taken to the state cabinet for approval”, he added.

The incentives promised to eligible investors will be over and above the incentive provisioned by the Indian government.

The park, to be set up under EMC scheme of the Centre, will come up on 203 acres of land at a cost of Rs 205 crore. Out of this, the Indian government will give a grant of Rs 95 crore with the rest being contributed by the state government.

It may be noted that due to lack of enabling provisions in the Special Incentive Package Scheme and steep land cost, EMC is losing its appeal to investors. Home bred mobile manufacturers Lava and Micromax had explored the EMC and other locations in the state but did not turn up.'

More recently, Topaz Solar Power which had announced to set up a solar panel manufacturing unit at the EMC has decided to change the location.

Sources said two companies have been allotted land parcels at the EMC for manufacturing of solar panels.

As per India Electronics and Semiconductor Association (IESA), the trade body representing the ESDM industry, the EMC is expected to attract industries with the combined investment value of Rs 1,000 crore and employment potential of 10,000 to 12,000 persons.