Argus News - Odisha Cabinet Clears 11 Proposals; Tourism Policy Revamped

Bhubaneswar, Jan 10: The Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, on Friday approved 11 key proposals across departments, with a major focus on strengthening the state’s tourism sector through the Odisha Tourism (Amendment) Policy–2026.

The revised policy introduces significant reforms to attract investment and expand tourism infrastructure. The minimum investment threshold for 3-star and above hotels has been reduced from 50 keys to 10 keys, aligning with national norms. Expansion norms for existing tourism units have also been eased, lowering the eligibility threshold from 50 per cent to 25 per cent of existing capacity.

Capital Investment Subsidy (CIS) has been rationalised, with projects eligible for 30 per cent support capped at Rs50 crore for investments up to Rs 200 crore and Rs100 crore for larger projects. Special Zones have been expanded to include Hirakud, Satkosia, Similipal, Ratnagiri–Udayagiri–Lalitgiri and Bhitarkanika, in addition to Chilika, KBK, Kandhamala and Gajapati. Projects in these zones, as well as those promoted by women, Scheduled Castes, Scheduled Tribes and differently abled entrepreneurs, will receive enhanced subsidies of up to 40 per cent.

Emerging tourism segments such as museums, heritage properties, electric boats, caravans and art-and-craft complexes will be eligible for capital support ranging from 40 to 50 per cent. Incentives have also been introduced for MICE tourism, destination weddings, luxury camping and electric mobility-based tourism products.

To promote Odia cuisine, the Cabinet approved a dedicated Capex and Opex support framework for restaurants at notified destinations within Odisha and in five metro cities—Mumbai, Delhi, Bengaluru, Chennai and Kolkata—as well as five major tourist hubs including Agra, Varanasi, Goa, Kochi and Jaipur. A State Tourism Advisory Council will be constituted to oversee implementation.

In another major decision, the Cabinet cleared Tata Power Renewable Energy Limited’s integrated ingot-wafer and solar cell manufacturing project at the Tata SEZ in Gopalpur, Ganjam district. The Rs 10,000-crore project, to be developed in two phases, will have a capacity of 10 GW ingot-wafer and 5 GW solar cell manufacturing, generating over 5,000 direct and indirect jobs.