Bhubaneswar: Odisha Cabinet Saturday approved 12 proposals, including continuance of the state Viability Gap Funding (VGF) support for select international air routes from Bhubaneswar and setting up an integrated new-age manufacturing complex at an investment of Rs 17,250 crore in the state.
The proposals were approved at the Cabinet meeting here under the chairmanship of Chief Minister Mohan Charan Majhi.
The Cabinet cleared a proposal of the Commerce and Transport department to continue and rationalise VGF support for international flight operations currently run by IndiGo, connecting Bhubaneswar with Dubai and Singapore,” Chief Secretary Anu Garg told reporters after the meeting.
Stating that these routes were launched earlier with state VGF support to bridge initial commercial viability gaps, the chief secretary said that the move comes in view of a decline in passenger load factor following the withdrawal of earlier support, raising concerns over the possible discontinuation of the route.
Apart from the Bhubaneswar-Dubai route, the Bhubaneswar–Singapore route will also get VGF support for a six-month period. The step is aimed at optimising public resources while stabilising priority international routes, she said.
The total VGF support proposed for the two routes over the six-month period is estimated at approximately Rs 26.87 crore. The expenditure will be met from the approved allocation under the B-MAAN scheme, the chief secretary said, adding that any further continuation, modification, or expansion of international routes will be decided at the level of the Chief Minister, based on periodic performance reviews of route viability and passenger demand.
However, the cabinet did not take any decision on providing VGF support for the Bangkok and Abu Dhabi routes.
The cabinet also approved an industrial investment proposal by Kalyani Group to set up an integrated new-age manufacturing complex at Gajamara in Dhenkanal district. The project will be developed over around 1,100 acres and is expected to significantly strengthen the state’s presence in advanced manufacturing, particularly in the automotive, aerospace, and defence sectors, Garg said.
The proposed integrated complex will include multiple production units, such as a speciality steel project by Kalyani Steels Limited, a super-alloy manufacturing unit by Saarloha Advanced Materials Private Limited and an industrial components casting and forging facility by Bharat Forge and its subsidiaries. The project has been approved under special provisions of Odisha’s Industrial Policy Resolution (IPR) 2022, she said.
As estimated, the total proposed investment for the integrated complex stands at approximately Rs 17,250 crore. The project is expected to generate more than 4,800 direct jobs and around 5,500 indirect jobs during the construction and initial operational phases. Total employment, including jobs created through vendor parks and ancillary units, is projected to exceed 20,000 in the coming years, an official said.
The chief secretary said the project will begin with a speciality steel plant and later expand into a super alloy facility. The focus is on value-added manufacturing within the state. The integrated automotive, aerospace and defence equipment manufacturing complex will produce components locally, reflecting Odisha’s push towards high-value manufacturing. The project is expected to generate over 12,000 high-value jobs,” she said.
The cabinet approved the “State Cooperative Policy 2026”. The policy aims to transform the cooperative sector into a technology-driven, efficient, and member-centric system, contributing to inclusive development in the state, the chief secretary said, adding that it follows the National Cooperative Policy announced in July 2025.
The cabinet also cleared the framing of the Odisha Uniformed Services Staff Selection Commission (Method of Recruitment and Conditions of Service of the Chairman and Members) Rules, 2026. The Commission will now conduct centralised, transparent, technology-driven recruitment for Odisha Police, Excise, Forest & Environment, and Commerce & Transport departments.
In a bid to strengthen irrigation infrastructure across the state, the cabinet approved the Rs 362 crore Diversion Weir Improvement Scheme from the state’s own funds for its implementation over the next three financial years, from 2025-26 to 2027-28.
The cabinet also approved the State Council on Science and Technology scheme to be implemented over five years from 2025-26 to 2029-30 with an estimated budget of Rs 254.85 crore. The scheme aims to promote science, technology, and innovation for socio-economic development, Garg said.
Other proposals approved included amendments to professional service recruitment rules and amendments to Odisha Superior Judicial Service and Judicial Service Rules 2007.
PTI
