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Odisha’s Industrial Policy Resolution 2022 does not give every cement plant a capital subsidy. A standard cement or clinker project is not named as Priority or Thrust, so it normally falls under “All other sectors”: it may seek investment facilitation and industrial land at concessional rates, but it does not receive the Priority or Thrust fiscal package unless it qualifies for and is certified into one of those categories. Some building-material activities—such as plastics manufacturing and granite cutting and polishing—are specifically named Priority activities, while ordinary bricks, stone crushing and asbestos-based products are on the Negative list.
The policy took effect on 1 December 2022 and, as of November 2026, remains the framework reflected in the state’s published materials. This guide explains the category rules, the incentives that can be modelled, the limits of the 2026 announcements, and the classification questions a project should resolve before relying on a subsidy.
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The governing framework is the Government of Odisha’s Industrial Policy Resolution 2022 (IPR 2022). It was gazetted on 30 November 2022 and became effective on 1 December 2022. Its stated term is five years or until another policy replaces it, whichever is later; the state may amend it. The Industries Department’s policies and procedures index continues to list IPR 2022 and its operational guidelines. The June 2026 announcements described amendments to IPR 2022, not a replacement policy.
Earlier-policy benefits are not automatically converted into IPR 2022 benefits. Units already covered by an earlier IPR keep the applicable incentives under that policy. Special Economic Zone units are outside IPR 2022 because they are governed by a separate SEZ policy. A project being planned now cannot use the one-time migration option that was available to certain pre-existing projects: the option required filing within 180 days of 1 December 2022 and surrender of earlier incentives.
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Use the gazetted IPR 2022 rather than undated or older incentive summaries for financial modelling. For example, an older Invest Odisha page includes material associated with IPR 2015 and a “New Age Mega Investments” block describing a 10-year capital-subsidy disbursement. The IPR 2022 gazette instead sets out five-year disbursement for the Priority and Thrust capital subsidies. Do not substitute the older figure for the current gazette terms without a specific applicable notification.
Does a cement plant qualify for a subsidy?
Not by virtue of being a cement plant. Cement, clinker and cement grinding are absent from IPR 2022’s named Priority and Thrust lists and are also absent from its Negative list. Unless a particular project is certified under a special route, it belongs to “All other sectors.”
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The four categories have materially different outcomes:
| IPR 2022 category | Investment facilitation | Concessional industrial land | Financial incentives |
|---|---|---|---|
| Priority | Yes | Yes | Priority package |
| Thrust | Yes | Yes | Thrust package |
| Negative | Yes | No; land may be available under normal rules at benchmark value | No |
| All other sectors | Yes | Yes | No, except benefits specifically prescribed for all industrial units |
“All other sectors” is not the same as “Negative.” A standard cement project may seek land at the concessional industrial rate and general facilitation, but should not enter the Priority or Thrust subsidy rates in its base-case model. A project could seek an exceptional package: under clause 10(d), a high-level committee chaired by the Chief Secretary may recommend a special package for qualifying new projects, with the Cabinet considering the recommendation. That route is discretionary, case by case, and not an entitlement.
IPR 2022’s overview acknowledges cement among industries that have grown in Odisha, but that historical recognition does not make cement an incentive-preferred sector. Nor does the policy supply an official cement-capacity, limestone-reserve, cement-project approval or cement-incentive-sanction figure that can support a project-specific claim.
Which building-material activities are Priority, Negative or unlisted?
“Building materials” is not a single policy category. The process and product matter; escaping a Negative-list entry does not by itself create subsidy eligibility.
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| Activity | IPR 2022 treatment | Practical implication |
|---|---|---|
| Plastics manufacturing, including a qualifying PVC pipe, profile or tank plant | Named Priority activity | Can seek the Priority package, subject to eligibility and certification. |
| Single-use plastic manufacturing | Negative | The separate Negative-list entry is not overridden by the broad plastics Priority heading. |
| Granite cutting and polishing; gemstone cutting and polishing | Named Priority activities | Cutting and polishing are distinct from stone crushing. |
| Stone crushing | Negative | No investment threshold is stated for the entry. |
| Ordinary brick-making | Negative | Refractory bricks and specified waste-based bricks are excepted from this entry. |
| Bricks made with fly ash, red mud or similar industrial waste as at least 25% of the base raw material; refractory bricks | Not caught by the brick Negative-list entry | Usually “All other sectors” unless another route is certified; this exception is not itself a subsidy. |
| Asbestos-based products, including a product line that falls within that description | Negative | An asbestos-cement sheet line must be assessed against this entry. Non-asbestos fibre-cement board is not specifically named. |
| Painting and spray-painting services | Negative | This entry concerns painting activity, not paint manufacturing. |
| Construction chemicals, architectural paints, waterproofing compounds and cement admixtures | Not specifically classified by those descriptions | “Chemicals and petrochemicals” is Thrust, but the policy does not establish that every construction-chemical product falls within it; obtain a classification. |
| Cement and clinker, ready-mix concrete, autoclaved aerated concrete, tiles, gypsum board and non-asbestos boards | Not named in the lists cited | Default to “All other sectors” unless a special route or sector classification applies. |
| Metal fabrication or roofing products | Potentially Priority as metal-sector ancillary/downstream activity | Must satisfy the policy’s in-state supply or raw-material tests; the product label alone is insufficient. |
| Specialty steel and its products | Named Priority activity | The IPR does not define every product that qualifies as specialty steel; a mill should not assume ordinary rebar or sections qualify. |
For metal-sector ancillary status, an in-state undertaking must supply or propose to supply at least 50% of its production or services to one or more other industrial undertakings within Odisha. Downstream status requires value addition using at least 50% by weight of intermediate products, final products or waste from one or more in-state industrial undertakings as the base raw material. The project must establish that it meets the applicable definition.
Other Negative-list entries can affect wood-based building products: carpentry, joinery and wooden furniture are Negative where plant-and-machinery investment is under Rs 1 crore, and saw-milling is Negative. Those entries do not change the default treatment of cement.
Can an unlisted project qualify through its location, jobs or exports?
IPR 2022 includes special routes that can treat certain unlisted non-mineral projects as Priority or Thrust. Whether a limestone-based cement project counts as “mineral based” is not resolved in the policy text: IPR 2022 does not define that term. A cement promoter therefore should not assume that the district, employment, export or corridor routes apply. Seek a written classification under the applicable status guideline before relying on them.
The published IPR 2022 routes include:
- Priority—named districts: A new non-mineral-based industrial unit in Bolangir, Gajapati, Kalahandi, Kandhamal, Koraput, Malkangiri, Mayurbhanj, Nabarangpur, Nuapada, Rayagada, Subarnapur, Boudh, Nayagarh, Deogarh or Kendrapada, with at least Rs 5 crore invested in plant and machinery and direct employment of at least 20 Odisha-domiciled people.
- Priority—employment: A new non-mineral-based manufacturing unit directly employing at least 200 state-domiciled people. The cited test does not set a separate minimum investment figure.
- Priority—exports: An industry other than mineral extraction and mineral-based industries exporting more than 50% of turnover, certified by the Director of Export Promotion and Marketing, Odisha.
- Priority—forest or agro-forestry produce: Units using notified forest produce or social and agro-forestry produce as their primary raw material.
- Thrust—Biju Economic Corridor: A new non-mineral-based industrial unit in a notified corridor area. The area must be notified; a location in eastern Odisha alone is not enough.
- Thrust—employment: A new non-mineral-based industrial unit directly employing at least 1,000 state-domiciled people.
The IPR’s corridor route raises the net-SGST ceiling to 300% of plant-and-machinery cost for qualifying non-mineral new units in notified Biju Economic Corridor areas; the general ceiling is 200%. The policy materials cited here do not provide a usable corridor map, so verify the site against the notification before modelling the higher ceiling.
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Classification is not self-certified merely because a project meets a promoter’s reading of a threshold. The Industries Department has an operational guideline for grant of Priority or Thrust status. The status and incentive claims are subject to the prescribed application, documents and merit-based disposal.
What does the Priority package provide?
A project certified as Priority may claim the applicable package below, subject to IPR 2022 and its operational guidelines. These figures are not general incentives for all cement or building-material units.
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| Benefit | Priority terms in IPR 2022 |
|---|---|
| Capital investment subsidy | 20% of actual eligible investment in plant and machinery, excluding land and buildings, disbursed over five years from commercial production; annual claim is 4% of eligible investment. |
| Electricity duty | 100% exemption for seven years from commercial production. |
| DISCOM power tariff | Rs 2.00 per unit for power purchased and consumed from local DISCOMs, for seven years from commercial production. |
| Net SGST | 100% reimbursement of net SGST paid, capped at 200% of plant-and-machinery cost; qualifying non-mineral units in notified Biju Economic Corridor areas have a 300% ceiling. |
| Employer ESI and EPF | 100% reimbursement of the employer contribution for skilled and semi-skilled workers domiciled in Odisha, for five years from commercial production. |
| Renewable power procured for operations | Exemption or reimbursement of cross-subsidy surcharge, additional surcharge and state transmission charges for qualifying renewable power sourced from state-based renewable plants or GRIDCO, for seven years. |
The IPR’s subsidy rules limit eligible investment to the first three years from first fixed-capital investment for MSMEs and first five years for large units. Commercial production must begin within three years for an MSME or five years for a large unit from that first investment. The capital subsidy has no upper limit according to Invest Odisha’s IPR 2022 presentation, but the eligible-cost definition and claim procedure still control.
The gazette clauses cited for net SGST give a percentage ceiling, not a reimbursement year-count. They also define net tax as the state component paid after input-tax credit is adjusted against output tax. Do not insert a seven- or ten-year SGST period from an older summary. Confirm the applicable claim timing and documentation under the separate departmental net-SGST operational guideline.
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How does the Thrust package differ?
For a unit certified as Thrust, the capital subsidy rises to 30%, disbursed at 6% annually over five years, and power and employment support generally run longer than under Priority.
| Benefit | Thrust terms in IPR 2022 |
|---|---|
| Capital investment subsidy | 30% of eligible plant-and-machinery investment, excluding land and building, disbursed over five years at 6% per year. |
| Electricity duty | 100% exemption for ten years from commercial production. |
| DISCOM power tariff | Rs 2.00 per unit for ten years. |
| Renewable power procured for operations | Qualifying cross-subsidy surcharge, additional surcharge and state transmission charges exempted or reimbursed for ten years. |
| Net SGST | 100% reimbursement, capped at 200% of plant-and-machinery cost, or 300% for qualifying non-mineral units in notified Biju Economic Corridor areas; the cited clauses do not state a reimbursement year-count. |
| Employer ESI and EPF | 100% reimbursement for eligible skilled and semi-skilled Odisha-domiciled workers for seven years. |
| Special land rate for major employment | A new Thrust unit directly employing at least 1,000 state-domiciled people may receive land at 50% of the concessional industrial rate, except in Bhubaneswar Development Authority and Cuttack Development Authority areas. |
Thrust is a named category, not simply a higher subsidy tier a large project can elect. The named sectors include aerospace and defence; automobiles and auto-components; biotechnology, pharmaceuticals, bulk drugs and medical equipment; chemicals and petrochemicals; electronics system design and manufacturing; green-energy equipment; green hydrogen and green ammonia; aviation manufacturing and maintenance, repair and overhaul; mechanical and electrical capital goods; telecommunications equipment; textiles, technical textiles, apparel, wearables and luggage; and white goods and components. Cement is not on this list.
The special green-hydrogen and green-ammonia power terms—Rs 3 per unit and 20-year periods—are specific to those activities and should not be applied to a cement kiln. Likewise, Invest Odisha’s office-land provisions for companies above stated investment or employment thresholds are separate from the general industrial-plot and fiscal incentives; the eligible office-area schedule should be checked with the department.
What support remains available to an “All other sectors” project?
A standard cement project may seek investment facilitation through GO SWIFT, Odisha’s single-window system, and may apply to IDCO for land at the concessional industrial rate. IDCO’s final notified rate includes development and administrative charges; no dependable zone-by-zone rupee-per-acre figure is stated here. A project should obtain the current rate for its actual site rather than assume a statewide land price.
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One stamp-duty provision is written broadly for industrial units: loan agreements, credit deeds, mortgages and hypothecation deeds executed in favour of banks or financial institutions receive 100% stamp-duty exemption under the gazette clause. Separate land-transfer relief applies to new Priority and Thrust units, and to qualifying existing Priority or Thrust units taking fresh land for expansion, modernisation or diversification. Priority and Thrust units may also receive full exemption from land-conversion premium with the prescribed eligibility certificate.
IPR 2022 offers additional measures that are not a direct kiln subsidy. A private industrial park or cluster of at least 100 acres, promoted by a private developer, association or user-unit special-purpose vehicle, can receive a grant of 50% of industrial-infrastructure cost up to Rs 25 crore per park or cluster. That grant is for the park or cluster infrastructure, not a capital subsidy on the cement plant. The state also provides for local purchase preference in public procurement, but the policy does not itself reserve cement or bricks for local producers.
For a captive renewable-energy plant, Invest Odisha lists a separate package including a 30% capital subsidy on eligible plant and machinery and technical civil works, 20-year electricity-duty relief and 20-year state transmission-charge relief, along with other provisions. The published material cited for this guide does not establish that a cement kiln in “All other sectors” automatically receives those benefits for its captive plant. The department’s guideline on cross-subsidy, additional surcharge and transmission charges includes industries opting for captive renewable plants, but the exact eligibility and project configuration should be confirmed in writing before counting the benefit.
Historical state-wide electricity-duty figures are not a cement entitlement. In a written Assembly reply reported in December 2024, the Energy Department said Rs 4,097.67 crore of electricity dues had been exempted for 14 industries over ten years from FY 2015–16 under IPR and SEZ policies. The report separately described a Rs 1,324.83 crore interest-rebate waiver under a 2022 one-time settlement scheme for 36 industries. These totals cover different industries and policies; they do not establish a subsidy amount for a new cement project.
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On 26 June 2026, Chief Minister Mohan Charan Majhi launched GO-EAST, an investment-acceleration and facilitation initiative, and announced additional incentives for non-mineral investment in 15 backward or less-industrialised districts. The announcement described a GO-EAST Cell in IPICOL and a Go SWIFT module for approvals and grant tracking. Facilitation is not itself a subsidy, and the news reports do not state the additional incentive rate, duration or cap. Do not add an unverified percentage to a project model.
IPR 2022 already contains a Priority-equivalent route for qualifying non-mineral units in 15 named districts, with the Rs 5 crore plant-and-machinery and 20-domiciled-job thresholds. June 2026 reports referred to districts including Bolangir, Kalahandi, Nuapada, Kandhamal, Boudh and Gajapati; they did not reproduce a complete official list or the full amendment terms. One report used “Thrust Sector districts,” wording that should not be treated as a settled legal classification without the operative notification. The reported project counts also conflict: Business Standard cited 152 projects at implementation stage, while The Statesman reported 12 projects nearing commissioning for an investment stock of over Rs 3.11 trillion. Neither count should be presented as a reconciled official statistic.
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On 13 October 2026, the Cabinet approved an IPR 2022 amendment concerning stamp duty on instruments executed for eligible company reconstruction, amalgamation, demerger or arrangement schemes sanctioned under the Companies Act, 2013. The announcement states the purpose—supporting acquisition and restructuring of stressed, defunct or underused industrial assets—but does not publish the applicable percentage or cap. Until the operative amendment supplies those terms, the cap cannot be modelled. This announcement is separate from the existing stamp-duty provisions for industrial-unit loan documents and qualifying land transfers.
How should a promoter verify eligibility before committing?
Build the financial case around the project’s actual activity and category, not a broad label such as “building materials.” A useful sequence is:
- Define the product and process. Separate cement manufacturing, grinding, ready-mix, fly-ash brick production, stone cutting, crushing, plastic pipe manufacture and any other distinct lines. Check each against the Priority and Negative lists.
- Resolve material-source and mineral status. If relying on a non-mineral upgrade, document the raw materials and ask the competent department to confirm how the project is classified. The policy does not define “mineral based,” which is especially important for limestone cement.
- Map location and thresholds. Verify whether the site is within a named district or a notified Biju Economic Corridor area, and document eligible plant-and-machinery investment and direct Odisha-domiciled employment. Do not assume an announced district list or corridor location without the notification.
- Apply for status and incentive eligibility. Follow the status and incentive operational guidelines. The production dates and first fixed-capital-investment date are determined on documents: the General Manager of the RIC or DIC for MSMEs and the Director of Industries for large units.
- Obtain current site and utility terms. Request the applicable IDCO land rate, power-supply and renewable-energy treatment, and confirmation of any stamp-duty or conversion-premium relief. Do not substitute headline policy rates for a written eligibility decision.
- Keep discretionary support outside the base case. A special package requires committee recommendation and Cabinet consideration. Model it only after approval terms are documented.
Expansion, modernisation or diversification does not make an ordinary cement unit eligible for new-unit fiscal support by itself. Under IPR 2022, those benefits apply to existing units already in Priority or Thrust sectors and subject to defined tests. Expansion requires at least 50% additional plant and machinery against undepreciated book value and at least 50% additional capacity; diversification requires at least one additional product; modernisation requires the specified energy-saving, pollution-reduction or latest-technology test. Classification comes first.
For source documents and current forms, begin with the Invest Odisha IPR 2022 page, the incentives wizard and the Industries Department’s operational-guideline index. Use the gazette for policy wording and obtain written confirmation for any classification or claim whose application to a cement or building-material project is uncertain.
What is the practical decision rule?
For a standard cement or clinker project, the prudent starting position is “All other sectors,” not a 20% or 30% subsidy. Reclassify the project only where a named activity or a fully documented Priority/Thrust route applies and the competent authority confirms status. For building materials, check the precise process: plastics manufacturing and granite cutting and polishing are named Priority activities; ordinary bricks, stone crushing and asbestos-based products are Negative; exempted fly-ash or refractory bricks leave the Negative list but do not automatically become subsidised. Treat the 2026 GO-EAST incentive and restructuring stamp-duty cap as unavailable for financial modelling until their operative terms are published.
Frequently Asked Questions
Can a cement project in Kalahandi claim the district incentive automatically?
No. The IPR 2022 district route is for a new non-mineral-based unit and includes investment and direct-employment thresholds. Because the policy does not define whether limestone cement is mineral-based, location alone does not settle eligibility; obtain a written classification.
Do fly-ash bricks receive the same subsidy as a plastics factory?
No. At least 25% fly ash, red mud or similar industrial waste as base raw material can take a brick unit outside the specified Negative-list entry. That does not make it a named Priority activity, so it generally remains in “All other sectors” unless another qualifying route is certified.
Can an existing cement plant claim IPR 2022 incentives for an expansion?
Not solely because it is expanding. The expansion provisions apply to existing units already in Priority or Thrust sectors and impose investment and capacity tests; an unlisted cement unit does not enter a paying category simply by adding equipment.
Does the June 2026 GO-EAST announcement specify the extra subsidy rate?
The cited announcement reports additional incentives for non-mineral investment in 15 districts but does not state a usable percentage, duration or cap. A project should rely on the operative amendment or notification, not a rate inferred from news wording.

