New Delhi: The Odisha Government on Thursday launched a 'special investment scheme for priority - stainless steel' to offer investors a 20 percent subsidy on capital investment.
Odisha Principal Secretary, Industries, Hemant Sharma launched the scheme at the Global Stainless-Steel Expo 2023 (GSSE 2023) in Mumbai.
Speaking about the salient features of the scheme, the top state official said: "Under this scheme, businesses investing in the stainless steel downstream sector in Odisha will receive a substantial 20 percent capital investment subsidy on their investments. This lucrative incentive is designed to stimulate growth and innovation within the sector".
The State Government will provide the subsidy over a period of 5 years and there is no cap on the investment limit, he said.
The scheme also provides for businesses operating in the stainless steel downstream sector a power tariff subsidy of Rs 2/unit and a 100 percent exemption on electricity duty, a move which will significantly reduce the operational costs of the entities and enhance the overall competitiveness of the industry.
"To further support the workforce and promote job creation, the scheme provides for a 100 percent reimbursement of Employee State Insurance (ESI) and Employee Provident Fund (EPF) contributions for up to five years, and land allocation for projects on a priority basis," Sharma said.
Over 500 stakeholders of the stainless steel industry from India and abroad are participating in the three-day Global Stainless-Steel Expo 2023.
Jindal Stainless Managing Director said, "While opportunities for stainless steel are plenty, our industries are also facing challenges like subsidised imports from China that are dumped into our domestic market and have reduced our MSMEs from manufacturers to traders."
Sharma said that Odisha is making significant contributions to the stainless steel and minerals sectors. The state's status as the largest producer of iron ore and bauxite showcases its rich mineral resources. This positions the state as a critical player in the raw materials supply chain for various industries, including steel and aluminium.
Topics like demand creation, emissions targets, exports, and research and development (R&D) of new technologies crucial for the sector will be taken up at the event.