Orissa Food Processing Policy, 2022

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Orissa Food Processing Policy

Orissa has immense potential of growth and employment in the Food Processing sector and in order to provide renewed impetus, Government of Odisha is bringing out "Odisha Food Processing Policy-2022" with an objective to provide required infrastructural and institutional support and fiscal incentives to boost value addition in the sector.

Following are the details of Orissa Food Processing Policy, 2022

Effective from: 30.11.2022

Nodal Agency: MSME Department, Government of Odisha

Implementing Agency: Director of Industries, Odisha along with Regional Industries Centers (RICs) /District Industries Centers (DICs)


Incentives & Support Measures

  1. Capital Investment Subsidy for Food Processing Enterprises

Sl. No.


Rate of Subsidy

Max Limit


General Food Processing


30% of investment in Plant & Machinery

Rs. 3.5 Crores


Enterprise owned by SC,ST, persons with disabilities, women, technical entrepreneur

35% of investment in Plant & Machinery

Rs. 4 Crores


Anchor Industry

30% of investment in Plant & Machinery

Rs. 5 Crores


Additional incentive for following categories

  • Enterprise set-up in Industrially Backward Districts
  • Enterprise set-up in Designated IDCO industrial estates, industrial areas, designated Aqua parks or along Biju Expressway Highway corridor

5% of investment in Plant & Machinery

Rs. 50 Lakhs


Additional incentive for Enterprises with Captive solar power plant

25% of investment in Solar power plant

Rs. 25 Lakhs


  • For the enterprises set up by SC, ST, persons with disabilities, Women, Technical entrepreneur (degree/diploma in food technology, B.Sc. Agriculture, B.Sc. Horticulture, B.Sc. Veterinary Science or similar qualification in food processing sector) their stake in shareholding shall be 51% or more individually or jointly on the date of commencement of commercial production.
  • Eligible for Micro, Small and Medium Enterprises (Investment in Plant and machinery upto Rs. 50 crores)
  1. Assistance for Reefer Vehicles
    • 35% of Investment in vehicles with an upper limit of Rs. 25 lakhs
  1. Mega Food Park / Sea Food Park /State Food Park
    • 20% of project (excluding land)
    • Max limit Rs. 20 crores
  1. Stamp Duty Exemption (Industrial Policy)
    • 100% exemption for lands purchased from IDCO
  1. Power Subsidies (Industrial Policy)

Sl. No.





Electricity Duty exemption


7 Years


Power tariff reimbursement

Rs. 2 per unit

7 Years


Exemption of Additional Charges for procurement of Renewable Energy


7 Years

  1. SGST Reimbursement (Industrial Policy)
    • 100% of net SGST paid for first 3 years from date of First Fixed Capital Investment made
    • Max limit upto 200% of investment in Plant and machinery
  1. Employment Subsidy (Industrial Policy)
    • 100% of employer’s contribution towards ESI / EPF scheme for 5 years from date of commercial production
  1. Environment Friendly Infrastructure (Industrial Policy)
    1. 25% of investment in Green Plant & Machinery
    2. Maximum Limit of Rs. 10 Crores
    3. Infrastructure includes
      1. Green Buildings
      2. Waste water treatment facilities
      3. Effluent Treatment Plant
      4. Deep Sea discharge facility

Frequently Asked Questions (FAQs)

  1. Which unit is considered as a new unit?
    1. Any unit for which investment has commenced after the effective date of the policy i.e 30.11.2022
  2. Can a unit avail incentives from other state or central government schemes?
    1. Incentives as envisaged in this policy shall not be applicable to an enterprise if the similar incentives are availed under any other policies of State Government or Government of India.
  3. What is the time frame for implementation of the project?
    1. Government may consider condonation of delay beyond the stipulated period of 3 years in implementation of projects due to force majeure (reasons like natural calamities) and the reasons beyond the control of industrial units on case-to-case basis on recommendation of an Empowered Committee to be constituted under the Chairmanship of Principal Secretary to Government, MSME Department.

Ineligible Industries

  1. Hullers and Rice mills with investment of less than INR 10 Crore in plant and machinery.
  2. Flour mills, Pulse mills, Besan mills with investment of less than INR 1 Crore in plant and machinery.
  3. Edible / Non-Edible Vegetable Oil Mills having;
    1. Expeller with investment in plant & machinery less than Rs.10 Lakh.
    2. Solvent Extraction with investment in plant & machinery less than Rs.50 Lakh.
    3. Hydrogenation of Oil.
    4. Repacking of oil with Filtering, Colouring and Deodorizing
    5. Refining of Oil with investment in plant & machinery less than Rs.5 crore
  4. Confectionary with investment in plant & machinery with less than Rs.10 Lakh for industrially backward districts and less than Rs.1 Crore for other area.
  5. Bakeries and preparation of sweets and savouries etc. excluding units using mechanized process with an investment in plant and machinery of more than Rs.20 Lakhs in industrially backward districts and more than Rs.50 Lakhs in other districts.
  6. Mixture, Bhujia and Chanachur preparation units
  7. Manufacture of Ice candy.
  8. Manufacture and processing of betel nuts.
  9. Hatcheries, Piggeries, Rabbit or Broiler farming
  10. Units for cutting raw tobacco and sprinkling jiggery for chewing purposes and Gudakhu manufacturing units.
  11. Bottling units or any activity in respect of IMFL (Indian Made Foreign Liquor) or liquor of any kind.
  12. Re-packaging Units
  13. Packaged drinking/ mineral water.
  14. Soft drinks and carbonated drinks.
  15. Pre-processing of oil seeds: decorticating, parching and frying.


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