EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. 293 CUTTACK, MONDAY, FEBRUARY 11, 2019/MAGHA 22 , 1940
HANDLOOMS, TEXTILES & HANDICRAFTS DEPARTMENT
NOTIFICATION
The 7th February, 2019
Subject: Odisha Handicrafts Policy-2019.
No. 801–HTH-HC- 01/2019/HT&H.— Odisha has a rich cultural heritage and is
endowed with traditional craft skills which have flourished over generations and exist today
in the form of Handicrafts. A huge potential exists in the State for economic development
in rural areas through self-employment and income generation by promoting handicrafts.
Next to the handlooms sector, the handicrafts sector is the major source of livelihood in the
non-farm sector. Promotion & sustenance of crafts is essential for the socio-economic
development of the State and the people pursuing it.
2. Recognizing its potential and importance, the Government of Odisha have been
pleased to declare a policy for handicrafts sector known as the “Odisha Handicrafts Policy,
2019”. The Policy aims to create a vibrant and sustainable handicrafts sector in the State
with enhanced market share in the domestic and international market, improve the income
and living standards of the handicraft artisans of the State, aspires to create income
generating opportunities and to preserve the cultural heritage and unique identity of
Odisha’s handicrafts.
3. The policy envisages adoption of a multipronged strategy to include promotion
of entrepreneurship, credit linkage, provision of raw material, marketing, training,
infrastructure, etc. to achieve the desired goals.
4. This has been approved by the State Cabinet in their 67th meeting held on the
29th January, 2019 as communicated by the Parliamentary Affairs Department in their
Memo No.602, dated the 29th January,2019.
5. A copy of the Odisha Handicrafts Policy, 2019 is enclosed for wide publication.
ORDER
Ordered that the Notification be published in the next issue of Extraordinary
Gazette of Odisha and copy thereof be forwarded to all Departments of Government/ all
Heads of Departments/ Accountant General (A&E), Odisha, / all R.D.Cs./ all Collectors/ all
DICs/RICs/Director, H&CI, Odisha, for information.
By Order of the Governor
SHUBHA SARMA
Commissioner-cum-Secretary to Government
The Odisha
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ODISHA HANDICRAFTS POLICY-2019
1.0 Introduction
1.1. Odisha the land of enchanting beauty is well known for its exquisite handicrafts. The
State was known as “Utkal”, which meant land of art of highest degree. It has a rich
tradition of handicrafts, unique in its characteristics that have evolved along with its
art & sculpture, temple architecture, folk art, dance & music. The craftsmanship is
singular for its technical perfection and artistic excellence. Having an ancient
tradition of crafting splendid pieces of art by hands, Odia artists have long been
presenting their awe inspiring master pieces to the world. Age has not withered the
beauty and dynamic diversity of Odisha's traditional arts and crafts. Even today,
despite the advent of modern technology and availability of cheap machine made
products, the handicraft industry has not only survived but also flourished amidst stiff
competition.
1.2. Almost each District of the State makes a rich contribution to the wide range of hand-
crafted articles available. Each article is in a class by itself and is also a painstaking
self-expression of the artisan and the local culture. As an industry it is highly labour
intensive and decentralized, spread all over the State in rural and urban areas and
has contributed significantly to the employment/ self-employment and GDP of the
State. Moreover, many artisans are engaged in certain crafts work on a part-time
basis. However, despite the large production base the domestic as well as export
market still remains largely under-tapped.
1.3. A huge potential exists in the State for economic development in rural areas through
self-employment and income generation by promoting handicrafts. Next to the
handloom sector, the handicrafts sector is the major source of livelihood in the non-
farm sector.
1.4. Based on assessment of the socio-economic status of the artisan, opportunities for
income generation and market position, the handicrafts of Odisha, which are 50 in
number (Detailed list at Annexure-I), may be broadly categorized under the following
heads:
(a) Popular Crafts such as stone carving, wood carving, silver filigree work,
applique work, pattachitra, palm leaf engraving, golden grass craft, wooden
painted toys, sea-shell work, terracotta & clay toys, costume jewellery, dhokra
casting, paper mache, cane and bamboo work and the like. These are called
popular crafts because of their good market potential as a result of which they
provide employment opportunities to a large number of artisans in the State.
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(b) Rare and Languishing Crafts, crafts which are declining, some of which are on
the verge of extinction. For example, the Jari work of Cuttack, solapith of Puri,
Jaikhadi work of Parlakhemundi, cloth flower garlands of Tusra in Bolangir and
Baleswar town, glass beads of Berhampur, theatrical dress making of Cuttack,
Keora leaf work of Ganjam and Kendrapara, artistic footwear of Barang, paddy
crafts of Koraput, Kalahandi and Bolangir, musical instruments of Koraput,
Baragarh and Nawrangpur, lacquered toys of Nawrangpur, Bargarh’s ritual toys,
durry and carpet work of Bolangir, flexible brass fish of Ganjam, betelnut work
of Aska and Berhampur and the like. There are very few artisans left now who
practice these crafts and keep them alive. Craftsmen engaged in these crafts
are not in a position to even earn subsistence level incomes due to various
reasons such as poor market for the items, production of these items being done
in a highly unorganized and isolated environment, etc.
1.5. The handicraft artisans in Odisha constitute a substantial part of the total workforce of
the state in the manufacturing, processing, and servicing sector adding to the GDP of
the State. The handicraft sector of the State also contributes to the direct export of
handcrafted goods to foreign countries. The export oriented crafts of the state mostly
consist of dhokra casting including brass and bell metal wares, stone carving,
appliqué & patch work, silver filigree, natural fiber crafts, etc.
1.6. Despite its obvious strengths, the handicraft sector in the state suffers from several
handicaps such as absence of adequate infrastructure, marketing network, credit
support from financial institutions and entrepreneurship. The handicraft sector has
also been adversely affected by the failure of the co-operative structure that had been
painstakingly created in the 1950s and 1960s to support the sector. In brief, some of
the challenges faced by the handicraft sector are as follows:
Old production techniques leading to higher cost and resultant compromise in
quality.
Production Schedules not in synchronization with orders
Product design and development not based on the market
Non-availability of Raw Material of proper quality, standard and specifications
Lack of standardization in pricing of the products
Lack of Convergence of other government schemes
Lack of capital (absence of access to credit especially for working capital
requirements)
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Absence of adequate handicraft marketing outlets for direct marketing
Difficulty to access urban markets.
2.0 Preamble
Recognizing the importance of Handicraft Industries/ Enterprises/ Related
Industries in providing self-employment opportunities to rural artisans particularly to
women and the weaker sections of society and realizing the present constraints of
the sector, lack of infrastructure and financial support and lack of entrepreneurship,
the Odisha Handicrafts Policy is being enunciated. This policy has been framed
after several rounds of discussion with various stake holders at different points of
time.
3.0 Vision
The Handicrafts Policy envisions sustainable development of the handicrafts sector
with improved livelihood opportunities for artisans and shaping of the future
generations by preserving the rich craft heritage of Odisha.
4.0 Objectives
It aims to do so by achieving the following objectives:
To empower handicraft artisans and make them lead partners in development.
To focus on the welfare of artisans.
To maximize income generating opportunities and attract new talent to the sector.
Creation of necessary physical and human capital
To enhance Odisha’s share of exports of handicraft goods.
To focus on revival of languishing crafts.
To ensure preservation of craft heritage.
To develop a Centre of Excellence at SIDAC
5.0 Strategy
Since there are multi-faceted aspects to the development of the Handicrafts sector and the
artisans, several parallel strategies would be simultaneously need to be implemented to
focus on different aspects. Major strategies that are to be followed for achieving the
objectives are:
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A. Product
A1. Raw Materials
Shortage of Raw materials has been a major problem for artisans of the State. State Govt.
shall continue its efforts to facilitate easy availability of raw materials required by the
handicraft artisans of the State. This will be done through establishment of Raw Material
Banks and adoption of innovative strategies for procurement of qualitative raw materials.
Public Private Partnership will be encouraged for this purpose.
Strategy
Product
Raw Materials
Design
Producer
Capacity Building
Entrepreneurship
Welfare of artisans
Sectoral
Support
Credit Linkage
Data base management
Innovation
Cluster Development
Revival of Languishing Crafts
Infrastructure
Brand Building
Crafts Villages
Fiscal Incentives
Setting up of Facilitation Centres
Marketing
Packaging
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A1.1. Forest based Raw materials
Odisha State Forest Development Corporation Ltd./ Odisha Bamboo Development Agency/
Other agencies including Panchayats will facilitate supply of forest based raw materials
such as bamboo, wood, Lac etc. at cost to the artisans/SHGs/ Co-operatives/
Entrepreneurs on recommendation of the appropriate Authority.
A.1.2. Mineral based Raw materials
OMC/ OSCHC Ltd./any other organization of Government of Odisha shall be granted
mining lease for mining of suitable stones for handicrafts and to supply the same to
artisans/SHGs/Co-operatives/ entrepreneurs /Handicraft Raw Material Banks involved in
production/marketing of handicrafts on recommendation of the appropriate Authority.
A.1.3. Reservation of stone quarries suitable for Handicrafts
There are limited stones of different grades which are suitable for Stone Carving Craft.
Quarries which are used by the artisans for making sculptures/statues shall be reserved for
use of Govt. agencies. The latter will facilitate supply of stones to the artisans. This will
have the dual benefit of ensuring supply of raw materials for the handicrafts sector and also
prevent the over-exploitation of such quarries by industrial use.
A.1.4. Establishment of Raw material Bank
Financial assistance shall be provided to Govt. Agencies / private entrepreneurs to set up
Raw material Banks in clusters or at strategic locations for the benefit of handicraft artisans.
A2. Design
Design Development should be encouraged across all crafts to ensure new products with a
focus on utility items. Reputed designers shall be engaged on short/long term basis to
conduct Design Development and Product Development programmes to develop market
oriented/ life style/utility products, etc. Collaboration with reputed institutes working in this
sector will be encouraged. Partnership with private entities would be entered into for
crafting products with high marketability.
Similarly, financial assistance in shape of subsidy shall be provided to the units for
mechanization and up-gradation of technology for mass production, standardization and
quality control. Research & Development & Mix-media Application Centre will be set up in
different parts of the state.
A3. Packaging
In order to ensure higher exports of Handicraft products, attractive, safe and eco-friendly
packaging will be required. For this, collaboration with designers and institutes, both govt.
and private entities, having expertise in the packaging segment will be explored. Financial
assistance would be provided to the units set up for packaging purpose. Appropriate
packaging to enhance the aesthetic value and market price of handicraft products to be
encouraged for all products sold out in Handicraft outlets and to boost export.
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A4. Marketing
Sales statistics indicate that handicrafts have a larger market share in urban areas.
Ironically, artisans have limited scope and capability to access urban markets. The support
provided by the Government for marketing will be strengthened to increase the market
share of handicrafts. A combination of hospitality and handicrafts will be developed so that
all Govt. owned hospitality outlets will provide space for marketing handicrafts. Tourist
Guides will be sensitized to bring tourists to handicraft markets. Similarly, craftsmen will be
trained as guides to better handle the tourists. Timely delivery of orders and production of
items as per seasonality are aspects that need to be looked into. Building marketing
linkages, through public or private initiatives, in these areas will be done.
The scope for marketing of handicraft products will be extended by:
organizing Exhibitions/Fairs, Buyer-Seller meets.
enhancing quality standards and introducing testing and labeling facilities.
Facilitating participation of artisans in different Exhibitions/ Fairs organized by other
agencies at the national and international level.
Developing Marketing tie-ups with OSCHC Ltd. and other marketing agencies as well as
Corporates.
Focusing on e-marketing and having partnerships with digital market places
Taking up targeted marketing through partnerships with institutions and museums for
design development, marketing, etc.
Developing/ creating marketing infrastructure by Government as well as by private
organization on PPP mode.
Extending financial assistance to individual artisans, groups or cooperatives for opening
sales outlets.
Extending financial assistance for printing of product catalogues/ brochures to target orders
for export/sales.
Undertaking publicity for greater sale of handicraft products.
B. Producer
B1. Capacity Building
Capacity building is the basic requirement for continuance and development of any trade or
craft. The present system of imparting training through various modes like institutional
training programmes, advance training programmes, skill development training
programmes etc. to create a new generation of crafts persons and also to enhance the
skills of existing artisans shall be strengthened.
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B2. Entrepreneurship
B2.1. Enterprise Development
Apart from the artisan or producer, entrepreneurs should be developed in this sector to take
it forward at the national and international level. Enterprise Development is essential in
order to increase the production base, self & wage employment, create a pan-India
presence for Odisha’s handicrafts and to boost exports. Entrepreneurs with aptitude and
financial soundness shall be identified and groomed through capacity building trainings to
set up handicraft enterprises. At the same time capacity building of the existing
entrepreneurs/ key personnel of handicraft enterprises will also be taken up. Financial
assistance for setting up handicraft units will be provided.
B2.2.Award to Handicrafts Enterprises/Entrepreneurs
In order to encourage competition and efficiency amongst handicrafts enterprises, annual
State Awards shall be given to the best Handicrafts Enterprises / Entrepreneurs in
recognition to their contribution in terms of achieving highest turnover, highest export,
highest employment, adoption of new technology, registration of patents, etc.
In addition, Design Development Awards to be emphasized from grass root level either at
the district/ regional level or at State level each year.
B2.3.Craft Tourism
Craft Tourism (Fusion of handicraft with tourism & culture) shall be treated as an enterprise
to promote integrated craft centres at strategic locations with facilities like production, sales,
demonstration etc. to attract tourists. Registration of handicraft enterprises shall be done as
per the guidelines of Govt. of Odisha, MSME Development Act, 2006 of Government of
India or any other act of Govt. of Odisha or Govt. of India from time to time or both.
Additional incentives shall be provided to women/specially abled entrepreneurs over &
above the IPR incentives.
B3. Welfare of Artisans
Welfare and social security of the artisans is most vital for continuance of the traditional
craft sector. The State Govt. will cover artisans of the State with various Social Security
measures such as Life Insurance, Health Insurance, providing better environment for
working, scholarship for children of artisans for pursuing higher studies, financial assistance
for senior artisans, etc.
C. Sectoral Support
C1. Credit Linkage
Extending Margin Money Assistance to the handicraft artisans of the State for availing bank
finance to set up their units/ enterprises shall be strengthened. Sanction & disbursement of
loan to the entrepreneurs will be facilitated by the State Govt. New opportunities for
providing credit will be explored.
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C2. Data Base Management
Data is important for formulation and effective implementation of different schemes for the
development of any sector. Steps shall be taken for creating a data base for the handicrafts
sector of Odisha.
C2.1. Survey of artisans
Survey of artisans shall be taken up to develop data base of artisans with mapping of
villages. It shall be regularly up-dated for better implementation of the policy programmes of
the State.
C2.2. Issue of Photo Identity Cards
All the artisans of the State will be issued with Photo Identity Cards to avail benefits of
different schemes of Govt. of Odisha.
C2.3. Other Databases
Other database like database of clusters, artisan organizations, MCMs, entrepreneurs,
exporters, marketers, designers, packagers, buyers, machine suppliers, handicraft
promoting agencies, raw material with their availability etc. will be developed. Craft
documentation from raw material to final product & making may be done for each craft.
C2.4. Dedicated web-portal
A dedicated web portal for online data entry &reporting to disseminate information and to
allow on-line applications shall be developed.
C3. Innovation
Handicrafts sector shall be encouraged to develop innovative products to enhance their
competitiveness in terms of design, quality, productivity, cost, etc. For this purpose,
collaboration with National institutions such as NID, NIFT and reputed entities in the private
sector would be done.
C4. Cluster Development
Government shall make concerted efforts to develop the existing craft clusters/ villages in
the State as strong production bases through need based interventions inter alia, such as
formation of SHGs/Co-operative of artisans for collective participation, capacity building of
the artisans/artisan organizations, modernization of production process, design inputs,
CFCs, raw material banks, credit linkage and marketing. Handholding support shall be
provided for a minimum period of three years. New artisans can be added to the existing
clusters by imparting skill training. Govt. Agencies/Cooperatives/ SHGs/ master craft
persons/ entrepreneurs shall be assisted to play a catalytic role in development of the
cluster.
C5. Revival of Languishing Crafts
In order to revive the languishing crafts of the State, the HT&H Department shall take
appropriate steps. Diagnostic studies shall be conducted to identify the bottlenecks and the
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interventions required to revive the languishing crafts. Documentation and recording of this
intangible heritage will be done. A State Level Committee will be constituted to closely
monitor for revival of such crafts for sustainable development.
C6. Infrastructure
Lack of infrastructure is the bottleneck for the development of handicrafts sector of the
State. Proper infrastructure shall be developed in clusters and strategic locations by
Government or on PPP mode to provide common facilities, marketing and other amenities.
Wherever possible, convergence with existing schemes will be done.
C6.1. Development of SIDAC as “Centre of Excellence”
The State Government has set up the State Institute for Development of Arts & Crafts
(SIDAC) on 15th October, 2004 for development of the handicrafts sector. Over the years
its activities involve managing State level training programmes, Design Development
programmes, organizing National level Crafts Mela and the establishment and managing of
the Odisha Crafts Museum etc. The infrastructural and manpower needs of SIDAC will be
addressed to develop it as a “Centre of Excellence” at par with National level institutions.
C6.2. Infrastructure for Craft Schools
District Level Training centres are located in different Districts of the State. Most of them are
running in rented accommodation. Proper infrastructure facilities and adequate manpower
like own building shall be provided for the Govt. craft schools/ outreach training centres.
These will serve as links between the artisans and markets.
C6.3. Common Facility Centres in Clusters
Common Facility Centres including common work-sheds, go-downs for processing of raw
material, finishing of products, testing & quality control, packaging etc. shall be created in
craft clusters. These CFCs shall also be provided with basic amenities like toilets & drinking
water, rest houses etc.
C6.4. Handicrafts Park
Handicraft parks shall be established in different parts of the State by Govt. or on PPP
mode to develop and showcase the craft heritage of the State. Financial incentive, as
decided by the Govt., will be provided to such parks which generate large scale, organised
employment.
C6.5. Handicrafts Museum
Handicrafts Museums shall be set up at strategic locations across the State to preserve the
rich crafts heritage of the State, to create awareness amongst visitors and to develop as
centres of tourism.
C6.6. Infrastructure for Marketing
Infrastructure like handicraft malls, Urban Haats, Craft Centres, Souvenir Shops etc. at
important tourist places shall be created by Government or on PPP mode for promotion of
marketing.
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C6.7. Land for Handicraft Project
Government land shall be provided for establishment of Handicraft projects as per Govt.
Policy. IDCO and Collector & District Magistrate may allot land for the purpose on priority
basis. Where Government land is not available, private land shall be purchased as per
Revenue Rules.
C6.8. Use of land of Defunct Panchayat Industries
Land of defunct Panchayat Industries in strategic locations shall be transferred to
Directorate of H&CI, Odisha for setting up of mini handicraft park/market complex/craft
school etc.
C7. Brand Building
Following measures shall be taken for enhancing the recall value of the handicrafts of
Odisha.
Creation of a Logo for Handicrafts of Odisha.
G.I Registration of Crafts.
Development and Printing of catalogues/ brochure/ audio-visual Documentation/ websites
Advertisement through electronic and print & social media.
Publicity hoardings shall be put up on Express Trains, Railway Stations, Airports, Market
places & Tourist Centres at the State, National and International level.
C8. Craft Village
C8.1. Craft Heritage Village
Handicraft is an integral part of our tradition, art and culture. Odisha is famous for its rich
craft heritage. It is imperative to preserve the craft tradition for posterity. Important craft
centres shall be declared as “Heritage Villages” on the lines of Raghurajpur, for focused
development. Highly skilled artisans shall be involved for restoration of heritage sites with
the help of organizations like ASI, INTACH etc. The Craft Villages will also be integrated
with Kalagrama of Odia Language, Literature & Culture Department. The existing Urban
Haats that were developed at Bhubaneswar (Ekamra Haat), Puri (Neelachal Haat) and
Konark (Konark Haat) will be further developed through PPP as crafts tourist centres
providing amenities for tourists such as eateries, accommodation, basic facilities etc. and
also marketing opportunities for artisans.
C8.2. Craft Village linked with Tourism
There are many villages in the State where artisans of a particular craft live and practice
their crafts for generations. With this concept, craft promotion and tourism can be taken up
at a single location. Artisans live and work at the same place and thereby the artisans are
provided with marketing opportunity& live demonstration. Such Craft Villages shall be
developed with necessary infrastructure in association with Tourism and other Departments
to promote craft and tourism together.
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Providing minimum common amenities to artisans of the village in the form of
communication, roads, water and electricity etc.
Popularise different crafts of Odisha among tourists thereby creating a market for
handicrafts of the State both at the national and international level.
Safeguarding the health of the artisans.
Improving productivity.
Skill development.
Increasing livelihood of the artisans in a sustainable manner
C9. Fiscal Incentives
Handicrafts Sector has been identified as a focus as well as a priority sector for the purpose
of availing fiscal incentives under IPR-2015. The fiscal incentives provided under IPR-2015
and MSME Development Policy-2016 shall be made available to handicraft production units
and developers of handicraft infrastructure projects as given in Annexure-II and Annexure-
III.
These incentives will stand automatically revised with modification in the related
policies, namely IPR-2015 and MSME Development Policy-2016.
The units/ enterprises may choose to avail a particular incentive under either this
Policy or the MSME Development Policy or the IPR-2015.
C10. Setting up of Facilitation Cell
C10.1.HT&H Department shall organize Road shows /Investors’ Meets at strategic locations in
order to promote handicraft sector. RICs/DICs shall similarly organize awareness
programmes for artisans and entrepreneurs within their Districts.
C10.2. A Facilitation Cell shall be set up by recruiting talent from both within and outside
government at State level /RICs/DICs to support entrepreneurs/ investors in Handicrafts
Sector.
C10.3. An online mechanism for administration of incentives in a time bound manner will be
adopted to ensure timely sanction and release of incentives.
6.0 Miscellaneous/General Provisions
(a) This policy shall remain in force until substituted by another Policy. The State
Government may at any time amend any provision of this policy.
(b) A special package of incentives over and above what has been enumerated in this
Policy document may be considered for new projects/ schemes on a case to case
basis taking into account the benefits to the State.
(c) Doubts relating to interpretation of any term and / or dispute relating to the operation of
any provision under this policy shall have to be referred to the concerned
Administrative Department, Government of Odisha for clarification / resolution and the
decision of Government in this regard shall be final and binding on all concerned.
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(d) The Fiscal Incentives under IPR-2015 and MSME Development Policy-2016 will be
governed for handicraft enterprises as per the Operational Guidelines issued/ will be
issued from time to time.
(e) For definitions of terms used in the Policy, Annexure-IV may be referred to.
(f) No right or claim for any incentive under this policy shall be deemed to have been
conferred merely on the ground of provision in this policy.
(g) Implementation of various provisions covering the incentives, concessions etc. will be
subject to the issue of detailed guidelines and concurrent notifications, wherever
necessary in respect of each item by HT&H Department /concerned Administrative
Department.
*****
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Annexure-I
Approved List of Handicraft Industries (Recognized Crafts)
1. Applique 26 Lacquer Work
2. Art Leather 27 Metal Craft
3. Art Textiles (Tie & Dye) 28 Natural fiber craft
4. Artificial Bonsai 29 Paddy Craft
5. Artistic Foot-ware 30 Palm leaf Decorative
6. Artistic Mat 31 Palm-leaf Engraving
7. Batik Printing 32 Paper Mache
8. Betel-nut craft 33 Patta&Tasar Painting
9. Brass and Bell Metal 34 Root Craft
10. Cane and Bamboo 35 Sabai Grass Craft
11. Clay Toys 36 Sea shell work
12. Cloth Flower 37 Silver Filigree
13. Coconut Shell 38 Soft Toys
14. Coir Craft 39 Solapith
15. Costume Jewellery 40 Stone Carving
16. Dhokra Casting 41 Straw Craft
17. Durry Carpet 42 Terracotta & Pottery
18. Embroidery 43 Theatrical Dress
19. Gem Stone Processing 44 Tribal Jewellery
20. Golden Grass 45 Wood Carving
21. Gopa Craft 46 Wooden in-lay
22. Horn Work 47 Wooden painted Toys
23. Jaikhadi works 48 Woolen carpet weaving
24. Jute Craft 49 Zari works
25. Keora Leaf Product 50 Cloth Patchwork
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Annexure II
FISCAL INCENTIVES FOR MSMEs (Handicrafts)
AS AVAILABLE FOR THE PRIORITY SECTOR UNITS UNDER INDUSTRIAL POLICY
RESOLUTION-2015
1. LAND AT CONESSIONAL RATE
Ground rent @1% of the land value
2. EXEMPTION OF PREMIUM ON CONVERSION OF AGRICULTURAL LAND FOR
INDUSTRIAL USE
New Industrial units and existing industrial units taking up E/M/D
Priority Sector 100% up to 100 Acres & 50% for
balance Area
3. INTEREST SUBSIDY
New MSME @ 5% per annum on term loan for Five years and same for Seven
years for Industrially Backward Districts limiting to:
Micro Enterprise Rs.10 lakh
Small Enterprise Rs.20 lakh
Medium Enterprise Rs.40 lakh
4. STAMP DUTY EXEMPTION
No stamp duty for land allotted by the Government to IDCO or Govt./ IDCO to
Private Industrial Estate Developers.
Transfer of land/ shed by Govt./ IDCO/
Private Industrial Estate Developers to
new units and existing units acquiring
fresh land for E / M / D
Priority Sector 100% of Stamp
Duty
Stamp Duty exemption on transfer of management/ conversion to company/ reconstruction
& amalgamation of Companies/ execution of loan deed/ credit deed/ hypothecation deeds.
5. ELECTRICAL ENERGY SUBSIDY
A Exemption of
Electricity Duty for
5 years
New MSMEs Up to Contract demand of
500 KVA
New units in the
Priority Sector
Up to Contract demand of
5 MVA
B One-time reimbursement of cost of Energy Audits for achieving energy
efficiency up to
Micro Enterprises-Rs.1
lakh
Small Enterprises-Rs.2
lakh
Medium Enterprises- Rs.3
lakh
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6. GST
GST reimbursement/exemption will be provided to the eligible unit as decided by
Government from time to time.
7. EMPLOYMENT COST SUBSIDY- for employing skilled & semi-skilled workers of
domicile of Odisha as regular employees
New & existing units taking
up E/M/D in Micro & Small
Sector
Male workers-75% of ESI & EPF contribution for 5
years
Female workers-100% of ESI & EPF contribution
for 5 years
New & existing units taking
up E/M/D in Medium Sector
Male workers-50% of ESI & EPF contribution for 3
years
Female workers-100% of ESI & EPF contribution
for 3 years
New & existing units taking
up E/M/D in MSME and
Priority Sector-displaced for
the establishment of the
said industrial unit
100% of ESI & EPF contribution for 3 years
New & existing Industrial
units undertaking E/M/D in
MSME and Priority Sector-
with Disabilities
100% of ESI & EPF contribution for 5 years
Employment Cost Subsidy- for additional period of 2 years for Industrially
Backward Districts.
8. PATENT REGISTRATION
New units and Existing units in MSME &
Priority Sector taking up Expansion/
Modernization/ Diversification
100% of the registration cost limited to
Rs. 10 lakh
9. QUALITY CERTIFICATION -& its renewal for next consecutive two years.
New and Existing units in MSME &
Priority Sector taking up E/ M/ D
100% of quality certification charges
limited to Rs.3 lakh
10. ASSISTANCE FOR TECHNICAL KNOW-HOW
New units in MSME &
Priority Sector
Indigenous tech. 100% of cost up to Rs.1
lakh
Imported tech. 100% of cost up to Rs.5
lakh
11. ENTREPRENEURSHIP DEVELOPMENT SUBSIDY
75% of course fee limited to Rs.50,000/- per course to budding entrepreneurs to undergo
Management Development Training in reputed national level institutions.
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12. ENVIRONMENTAL PROTECTION INFRASTRUCTURE SUBSIDY
Rs.20 lakh or 20% of capital cost whichever is less for adopting Zero Effluent / ZLD &
setting up Effluent Treatment Plants by MSMEs
13. CAPITAL GRANT TO SUPPORT QUALITY INFRASTRUCTURE
Industrial parks/ Cluster parks promoted
by private sector/ Ind. Associations/ User
units in cluster format
50% of the infrastructure cost up-to
Rs.10 crore/ park or cluster
Up-gradation of the existing parks/
clusters provided the park/ estate/
cluster is User-managed
50% of total cost up-to Rs.5 crore
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Annexure-III
FISCAL INCENTIVES FOR HANDICRAFTS IN MSME DEVELOPMENT POLICY- 2016
1. Capital Investment Subsidy
Sl.
No.
Category of Enterprise Quantum of Assistance
1 New Micro & Small Enterprises @ 25% of capital investment made in
Plant & Machinery subject to an upper
limit of Rs.1 crore only.
2 New Micro & Small Enterprises
owned by SC, ST, Differently abled,
Women & Technical (Degree/
Diploma) entrepreneurs
@ 30% of capital investment made in
Plant & Machinery subject to an upper
limit of Rs.1.25 crore only.
3 New Micro & Small Enterprises set
up in industrially backward Districts
including KBK Districts.
Additional capital investment subsidy
@ 5% of investment made in Plant &
Machinery with an upper limit
prescribed at Sl.1 & 2 above as
applicable.
Note: For the enterprises set up by SC/ ST/ Differently Abled/ women/ Technical Degree or
Diploma holders, their stake in equity participation/ shareholding shall be 51% or more
individually or jointly.
2. Trade Mark Assistance
New MSMEs shall be entitled for reimbursement of 50% of expenditure incurred in
obtaining Trade Mark subject to maximum of Rs.25,000/-.
3. Any other incentives as applicable for handicraft enterprises under the above policy.
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Annexure-IV
Definitions & Interpretations
For the purpose of this Handicrafts Policy, the various terms shall have the meanings
assigned to them hereunder:
1) Handicrafts: “It must be predominantly made by hand. It does not matter if some
machinery is also used in the process”.
“It must be graced with visual appeal in the nature or ornamentation on inlay
work or some similar work lending it an element of artistic improvement. Such
ornamentation must be of a sustainable nature and not a mere pretence”. (N.B.-
Definition as given by the Hon’ble Supreme Court in the case of Collector of Excise,
New Delhi vs Louis Shoppe)
2) Handicraft Artisan: Any person engaged in/ practicing handicraft production as a
primary/ pre-dominant source of his/ her livelihood.
3) Handicraft enterprise: Any enterprise exclusively engaged in production of
handicrafts goods ormarketing of handicraft goods. The Common Facility Centre
(CFC) created for handicraft producers are included. It may be owned and
managed by an artisan/entrepreneur/SHG/Co-operative Society/ Partnership firm or
a Company.
4) Handicraft entrepreneur: Entrepreneurs having own handicraft enterprise or
interested to set up own handicraft enterprise.
5) Handicraft SHG: Self Help Group formed by 10-20 handicraft artisans only.
6) Handicraft Co-operative Society: Co-operative Society formed by handicraft
artisans only registered under Societies Registration Act 1962.
7) Craft Village: A craft village would be a village or group of contiguous villages
within a radius of 3-5Kms. having at least 30 traditional artisans practicing the
same/similar crafts.
8) Cluster: A cluster would be a village or group of contiguous villages within a radius
of 5-10Kms. having at least 100 traditional artisans practicing the same/similar
crafts.
9) “Earlier” IPRs means the applicable Industrial Policy Resolution
10) “Effective Date” means the date of notification of this Handicrafts Policy.
11) “Existing Industrial Unit” means an industrial unit that has commenced production
before the effective date of this policy.
12) “Fixed Capital Investment” means investment in land, building, plant, machinery and
balancing equipment.
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13) “Expansion/ Modernisation/ Diversification” (E/M/D) holds the same meaning as
defined in IPR-2015.
14) “Priority Sector” means – handicraft enterprises as per Annexure-I.
15) “Raw material” means materials required by the unit that directly go into the
composition of its finished goods.
16) For administration of incentives the handicraft enterprises shall file memorandum
under MSME Development Act, 2006 any modification/ Amendment by Govt. of
India/ Govt. of Odisha from time to time.
17) The handicraft enterprises have to file/ obtain EIN (Entrepreneurs Identification
Number), UAM (Udyog Aadhar Memorandum) verified by the designated authority
indicating the item of production, quantity & value and date of commercial
production.
*****
Printed and published by the Director, Printing, Stationery and Publication, Odisha, Cuttack-10
Ex. Gaz. 2244-173+100