Odisha woos IBM, Capgemini, Intel to boost IT growth, offers incentives

The Odisha government is wooing 10 IT companies to set up business in the state, armed with a recast Information & Communication Technology (ICT) policy and its reputation of having abundant power.

Odisha wants IBM, Capgemini, Cognizant Technology Solutions, Accenture and Intel Corporation to come to the state, following TCS, Infosys, Wipro and Tech Mahindra.

“The electronics and IT department is writing to these companies to bring them to the state. Odisha as a state has its own set of advantages. More importantly, it is a power surplus state,” said a state government official.

The IT sector employs about 18,000 people in Odisha, contributing significantly to the state’s exports basket. IT exports from the state are pegged at Rs 3800 crore.

In the reformulated ICT policy, the government is offering reimbursement on Goods & Service Tax (GST) both to new and existing units, replacing VAT. As per the amendment, new industrial units in IT, ITes (IT-enabled services) and ESDM (electronics system design & manufacturing) are entitled to State GST reimbursement for five years from the date of starting 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.

That apart, a revised special incentive package scheme has relaxed the stiffer norms for investors on employment and investments for availing subsidies on capital investment.

Incentives announced in the repackaged scheme will be valid till March 31, 2020 or till it is superseded by some other scheme.