Bhubaneswar: The Odisha government Wednesday decided to amend key policies to boost the semiconductor and renewable energy sectors.
It also made a provision of Rs 12,458 crore for an irrigation project.
The cabinet of Chief Minister Mohan Charan Majhi approved a total of 10 proposals of different departments which includes amendments to the Odisha Semiconductor Manufacturing and Fabless Policy and Odisha Renewable Energy Policy (OREP), 2022.
Originally notified in September 2023 and subsequently amended in March 2024 and July 2025, the Odisha Semiconductor Manufacturing and Fabless Policy played a pivotal role in attracting investments in strategic segments such as compound semiconductor units, Chief Secretary Anu Garg said.
So far, proposals from five companies have been approved, including two projects that secured support under the India Semiconductor Mission (ISM), she said.
In response to stakeholder feedback and evolving national policy priorities, the third amendment was made, Garg said.
With this amendment, the government will support emerging segments such as semiconductor equipment manufacturing and R&D, manufacturing of semiconductor-grade chemicals, gases and materials, along with supply chain components, and research and development for the advanced technologies to strengthen the overall semiconductor ecosystem in the state, she added.
The state will provide additional fiscal support of 25 per cent of the eligible capital expenditure (capex) for projects approved by the ISM, the official said.
Similarly, the state cabinet decided to amend the Odisha Renewable Energy Policy to accelerate renewable energy development, enhance investor confidence and ensure affordable green power for consumers in the state, Garg said.
The state decided to extend electricity duty exemption at the rate of 50 paise per unit to eligible net-metering consumers on energy consumption from renewable energy projects established within the state for a period of 10 years from the project’s commissioning date.
The government will also provide a 20 paise per unit state transmission utility (STU) charge exemption for standalone battery energy storage systems (BESS) commissioned in the state, she said.
The cabinet approved the execution of the Parbati Giri Megalift Irrigation Project with an outlay of Rs 12,458 crore from the state’s own resources over five years, from 2026-27 to 2030-31 to create an additional irrigation potential of 2,62,275 hectares through 161 projects in all districts of the state.
Further, the state government approved the improvement of tanks and minor irrigation projects (MIPs) phase-3. With an outlay of Rs 389 crore, irrigation facilities over 15,700 hectares of ayacut will be revived under the scheme, Garg said.
The state government extended the Malati Devi Prak Vidyalaya Paridhan Yojana for five years, starting from the current financial year 2026-27 with a budget of Rs 586.50 crore to provide free uniforms and shoes to pre-school children enrolled in Anganwadi centres.
The Jashoda scheme and its sub-scheme Ashribad have been extended for another five years with an outlay of Rs 296.99 crore, Garg said.
The schemes were launched by the previous government to provide a financial, educational, and social safety net for children living without biological parents or with incapacitated parents, those infected by HIV and those who lost their breadwinner during the Covid-19 pandemic.
Besides, the cabinet decided to implement Odisha State Workflow Automation System (OSWAS) 3.0 with a cost of Rs 122.60 crore for paperless office operations, she added.
