In a major move to transform the state’s hospitality and labour landscape, the Odisha Cabinet, led by Chief Minister Mohan Charan Majhi, approved the Odisha Tourism (Amendment) Policy-2026 on Friday. The major reform initiative is designed to revitalise the state’s tourism sector, aligning it with the long-term objectives of Vision 2036 and 2047.
The proposal for amending the Odisha Tourism Policy (OTP) 2022 was among the total 11 agenda items cleared during the Cabinet meeting.
Chief Secretary Anu Garg emphasised that the revised policy focuses on three core pillars – aggressive investment attraction, the promotion of sustainable tourism, and ensuring balanced development across all regions of the state.
A significant amendment in the policy includes lowering the entry barrier for high-end hospitality. The minimum investment threshold for 3-star and above hotels and resorts has been slashed from 50 rooms to just 10 rooms. Additionally, the expansion criteria for existing units have been eased, with the eligibility threshold for capacity increases reduced from 50 per cent to 25 per cent, she said.
The cabinet also significantly expanded the list of Special Zones to include high-potential 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 in these Special Zones—as well as those led 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.
Diversification is a major theme of the 2026 policy, which introduces targeted subsidies for “new-age” tourism. Museums and heritage properties can receive up to 40 per cent capital support. At the same time, sustainable ventures like electric boats, electric caravans, and art theme complexes are eligible for up to 50 per cent support.
“These incentives are intended to diversify Odisha’s tourism products and promote new-age, sustainable and experiential tourism offerings across the state,” she added.
Beyond infrastructure, the policy targets emerging tourism segments, including MICE (Meetings, Incentives, Conferences, and Exhibitions), destination weddings, and tourism based on electric mobility. 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 streamline these efforts, a State Tourism Advisory Council will be established under the chairmanship of the Tourism Minister. These amendments are expected to attract private investment, create 15,000 new hotel rooms by 2036, and generate numerous employment opportunities, Garg said.
To bolster the state’s human capital, the cabinet also greenlit Phase II of the Odisha Skill Development Project (OSDP). This Rs 1,140 crore initiative, supported by the Asian Development Bank (ADB), will run through 2030 and focuses on creating a “future-ready” workforce through advanced training and industry-aligned skilling.
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.
