Odisha Cabinet approves amendment of Tourism policy, 10 other proposals

Bhubaneswar, Jan 9 (PTI) The state cabinet on Friday approved the Odisha Tourism (Amendment) Policy-2026, a major reform initiative aimed at strengthening the tourism sector and aligning it with the state's Vision 2036 and 2047.

The proposal for amendment the Odisha Tourism Policy (OTP) 2022 was among the total 11 agenda which got the state government's nod at the cabinet meeting chaired by Chief Minister Mohan Charan Majhi.

Chief Secretary Angu Garg said that the amendment of the OTP-2022 focuses on attracting investment, promoting sustainable tourism, and ensuring balanced regional development.

The major amendments include lowering the minimum investment threshold for 3-Star and above hotels and resorts from 50 rooms to 10 rooms, and simplifying expansion requirements for existing units.

In regard to the expansion norms for existing tourism units have also been rationalised by reducing the eligibility threshold from 50 per cent to 25 per cent of existing capacity, enabling easier and faster expansion of operational units, she said.

The cabinet has also approved the expansion of Special Zones to include high-potential tourist destinations such as Hirakud, Satkosia, Similipal, Ratnagiri Udayagiri-Lalitgiri, Gandhmardan region and Bhitarkanika, in addition to the existing special zones of Chilika, KBK (Kalahandi-Bolangir-Koraput), Kandhamala and Gajapati.

Tourism projects located in these Special Zones, as well as projects promoted by Women, Scheduled Castes, Scheduled Tribes and Differently Abled entrepreneurs, will be eligible for enhanced Capital Investment Subsidy (CIS) at the rate of 40 per cent, subject to a ceiling of Rs 60 crore for projects with investment up to Rs 200 crore and Rs 120 crore for projects with investment exceeding Rs 200 crore, she said.

In the amended OTP, the targeted subsidies have been introduced for a range of emerging tourism segments, with museums and heritage properties eligible for capital support of up to 40 per cent and electric boats, electric caravans and art and craft theme complexes eligible for capital support of up to 50 per cent.

"These incentives are intended to diversify Odisha's tourism products and promote new-age, sustainable and experiential tourism offerings across the state.

The policy also targets emerging tourism segments, including MICE (Meetings, Incentives, Conferences, and Exhibitions), destination weddings, and electric mobility-based tourism. New incentives for museums, heritage properties, and sustainable tourism projects like electric boats and caravans have been introduced. Additionally, there are subsidies for promoting authentic Odia cuisine both within Odisha and in major metro cities.

To foster governance and stakeholder engagement, a State Tourism Advisory Council will be formed under the Tourism minister's chairmanship. These amendments are expected to attract private investment, create 15,000 new hotel rooms by 2036, and generate numerous employment opportunities, Garg said.

The cabinet also approved the Rs 1,140 crore Odisha Skill Development Project (OSDP) Phase II, a five-year initiative to be implemented from 2025-26 to 2029-30 with financial assistance from the Asian Development Bank (ADB).

The cabinet also approved proposals, including one each from the Industries Department, Home Department, Panchayati Raj and Drinking Water Department, and the Revenue Department. In addition, three proposals of the Food Supplies and Consumer Welfare Department and two proposals of the Water Resources Department were approved. PTI AAM AAM RG