Bhubaneswar, 12/1 : In a decisive move to position the state as India’s next technology hub, the Odisha government announced on Monday that it will unveil a comprehensive ‘IT and Semiconductor Policy 2026’ next month. The new framework, described by officials as a “game-changer,” aims to attract global chipmakers and IT giants to the eastern seaboard, effectively branding Odisha as the “Silicon East” of India.
The announcement comes on the heels of a high-level review meeting chaired by the Chief Minister at the Lok Seva Bhawan. While the state had previously updated its IT incentives in 2025, the upcoming policy is expected to be far more aggressive, specifically targeting the semiconductor value chain—from design and fabrication to assembly, testing, marking, and packaging (ATMP).
Strategic Roadmap for 2026-2031
According to sources within the Electronics and Information Technology Department (E&IT), the new policy will offer a “best-in-class” fiscal incentive structure. Key highlights are expected to include:
Capital Subsidy: A top-up subsidy of up to 30% on capital investment, over and above the central government’s incentives under the India Semiconductor Mission (ISM).
Power & Water: 100% exemption on electricity duty for 15 years and highly subsidized industrial water rates for fabrication units.
Land Concessions: Allotment of land at concessional rates in the upcoming ‘O-Chip Park’ near Info Valley, Bhubaneswar.
R&D Support: A dedicated corpus of ₹500 crore to support startups and research institutions focusing on chip design and embedded systems.
Official Stance
Speaking to the press, a senior government official stated, “Odisha has already proven its mettle in the metals and manufacturing sectors. The next decade belongs to technology. With this policy, we are not just competing with other Indian states; we are competing with Vietnam and Malaysia. We expect to formally launch the policy document in the second week of February during the ‘Make in Odisha – Tech Edition’ conclave.”
Focus on Employment
The state government has set an ambitious target of generating over 10 lakh direct and indirect jobs over the next five years. To support this, the policy will also unveil a ‘Skilled-in-Odisha’ module specifically curated for the semiconductor industry, in collaboration with IIT Bhubaneswar and NIT Rourkela, to churn out industry-ready VLSI engineers.
Industry experts have welcomed the move. “The eastern region of India has been waiting for a catalyst. If Odisha can guarantee stable power and clean water—critical for chip making—this policy could indeed turn Bhubaneswar into a major semiconductor node,” said an analyst from the India Electronics & Semiconductor Association (IESA).
As the global race for semiconductor sovereignty heats up, Odisha’s timely intervention signals its readiness to move beyond mineral-based industries and embrace the silicon revolution.
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