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MSME Development Policy

Context & Objective

The emphasis of this MSME Development Policy 2009 is to make Odisha “a destination of choice” for MSME enterprises. The objective is the Policy is to enhance competitiveness of MSME sector in the State and provide a conducive eco-system to encourage MSMEs and attract new investments into the sector. It also strives to broad base the growth of MSME in all potential sectors of economy and provide opportunities to local entrepreneurial talent and encourage entrepreneurship.

Ease of Doing Business

District Industrial Centers (DIC) shall act as the nodal agency for promotion of MSME in the State

  • Single Window Clearance & Online Combined Application Form (CAF) to facilitate time bound clearances to investment
  • District Level Single Window Clearance Authority shall assess & recommend the requirement of land
  • The DICs shall be strengthened and revitalized to eliminate the existing bottlenecks and facilitate smooth functioning to address the needs of the investors.
  • Online disbursement of incentives mechanism shall be developed and the applicable incentives shall be disbursed in time bound manner.
  • An online platform shall also be facilitated for the investors to lodge grievances. A team at the state level headed by the Secretary, MSME Department shall monitor all the grievances lodged, and the action taken on the grievances.
Infrastructure & Development
  • Odisha MSME Venture Capital Scheme to provide financial assistance in the form of equity and quasi-equity
  • Reservation of 20% area in industrial estate, industrial parks, industrial corridors and land banks for MSMEs and Development of 10% of the land limiting to 200 Acres by Large and Mega Industries for setting up of Ancillary and Downstream MSMEs in cluster mode
  • Sector specific Ancillary & Downstream industrial parks shall be set up in association with mother plants.
  • Land on free of cost as the State Government’s share to CFCs set up by SPVs of MSME clusters
Raw Material & Marketing
  • Linkages amongst MSMEs and Central / State PSUs for sourcing crucial raw materials at the lowest rate
  • OSIC / NSIC as the Nodal Agency for sourcing and supplying of raw materials to MSMEs
  • Exemption of earnest money and 25% of security deposit for registered local MSEs
  • Additional price preference of 3% to local Medium & Small Enterprises having ISO or ISI certification.
Promotion of Clusters
  • Cluster Development Cell shall be set up in Directorate of Industries to converge resources and dovetail funds for cluster development
  • New clusters of Ancillary & Downstream units shall be promoted at major industrial hubs
Financial Incentives
Capital Incentive Subsidy
  • 10% of FCI upto Rs. 8 lakh to new MSEs
  • 12% of FCI up to 10 lakhs to SC, ST, PH, Women, Technical entrepreneurs
Technology upgradation
  • 50% cost reimbursement, up to Rs 1 lakh in case of indigenous technology and up to Rs. 5 lakh in case of imported technology
Clean Development Mechanism
  • 50% subsidy or Rs. 25,000, whichever is less on consultancy services for adoption of CDM

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