Bhubaneswar, 12/1 : In a decisive move to cement its position on the global technology map, the Odisha state government is set to unveil a comprehensive, revamped IT and Semiconductor Policy next month. Sources within the Electronics and Information Technology Department (E&IT) indicate that the new framework will be a “game-changer,” specifically designed to outpace recent policy updates from rival states like Uttar Pradesh and Gujarat.
While the state laid a strong foundation with its 2025 initiatives, the upcoming policy—slated for a February launch—is expected to introduce aggressive fiscal incentives, including a capital subsidy top-up that could be the highest in the country. The move comes as a direct response to the rapidly evolving semiconductor landscape in India, where competition for “fab” (fabrication) units is intensifying.
Focus on Compound Semiconductors and Fabless Design
Unlike generic policies, Odisha’s new roadmap will reportedly double down on niche high-growth areas: Compound Semiconductors (Silicon Carbide and Gallium Nitride) and the Fabless Design ecosystem.
“We are not just looking at assembly; we are looking at the entire value chain,” a senior official from the E&IT department stated on condition of anonymity. “The new policy will operationalize the ‘O-Chip’ programme with a dedicated fund of ₹500 crore to support fabless startups and design houses. We want Bhubaneswar to be the design capital of Eastern India.”
Key Highlights Expected:
Capital Subsidy Top-Up: The state is expected to offer a flat 25-30% capital subsidy over and above the central government’s 50% support under the India Semiconductor Mission (ISM). This could effectively reduce the capex burden for investors to just 20-25%.
Power & Water Incentives: Recognizing the energy-intensive nature of fabs, the policy is likely to promise power tariffs fixed at ₹2 per unit for 10 years and 100% exemption on electricity duty.
Infrastructure Push: A dedicated 500-acre ‘Silicon Park’ near InfoValley is being demarcated with “plug-and-play” infrastructure, including hazardous waste management systems crucial for chip manufacturing.
Talent Pipeline: A new clause will mandate industry-academia collaboration, specifically tying up with IIT Bhubaneswar and IIIT to produce 5,000 industry-ready VLSI engineers annually.
Industry Reaction and Existing Momentum
The announcement is timed perfectly to capitalize on recent wins. The state has already secured commitments from players like RIR Power Electronics for a Silicon Carbide facility and 3D Glass Solutions for advanced packaging. The new policy aims to fast-track these projects while attracting global giants currently scouting for locations in India.
“If the rumors of a 30% state subsidy are true, Odisha becomes an automatic choice for ATMP (Assembly, Testing, Marking, and Packaging) units,” said an industry analyst from the India Electronics & Semiconductor Association (IESA). “The eastern seaboard offers a logistical advantage for exports to Southeast Asia that northern states cannot match.”
With the draft notification in its final stages, the Chief Minister is expected to officially launch the policy at a mega-investment conclave in Bhubaneswar next month. As the race for India’s silicon future heats up, Odisha is clearly signaling that it intends to lead, not follow.
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