The Odisha Cabinet, under the chairmanship of Chief Minister Mohan Charan Majhi, has given its approval to 10 major proposals spanning six state departments, placing a primary focus on digital administration, semiconductor manufacturing, irrigation expansion, and power infrastructure.
One of the crucial decisions of the Odisha Cabinet includes amendments to the Odisha Semiconductor Manufacturing and Fabless Policy and Odisha Renewable Energy Policy (OREP), 2022. It also made a provision of Rs 12,458 crore for an irrigation project.
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 added.
Another key decision is to make government offices paperless up to the block level. The Cabinet approved OSWAS 2.0, which aims to strengthen digital governance and replace physical files with electronic processes, making government functioning faster and more efficient.
The revised Odisha Semiconductor Manufacturing policy aligns with the Centre’s India Semiconductor Mission 2.0, with the aim of attracting greater investment in semiconductor manufacturing in Odisha.
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.
Under the revised framework, the state will provide additional fiscal support of 25 per cent of the eligible capital expenditure (capex) for projects approved by the ISM, an 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 government has decided to offer an electricity duty exemption of 50 paise per unit to eligible net-metering consumers on green power generated from renewable energy projects set up within Odisha, valid for 10 years from each project’s operational start date.
Additionally, the state will grant a 20 paise per unit waiver on state transmission utility (STU) charges for standalone battery energy storage systems (BESS) commissioned in the state, Garg stated.
In another major decision, 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.
Furthermore, the government sanctioned Phase 3 of the scheme to improve tanks and minor irrigation projects (MIPs), allocating Rs 389 crore to restore irrigation capabilities across 15,700 hectares of cultivable command area (ayacut), Garg noted.
The works will include reservoir desilting, strengthening of dam embankments, repairing spillways and head regulators, canal improvement and other rehabilitation works.
The state government also extended the Malati Devi Prak Vidyalaya Paridhan Yojana for five years starting in the 2026-27 financial year, reserving a budget of Rs 586.50 crore to supply free uniforms and footwear to pre-school children in Anganwadi centers.
In another decision, the Jashoda initiative and its companion sub-scheme Ashribad were renewed for an additional five-year period with a financial commitment of Rs 296.99 crore, according to Garg.
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.
