Bhubaneswar, Jan 9 (AHN) The Odisha Cabinet approved several key proposals of different departments during a meeting held under the chairmanship of Chief Minister Mohan Charan Majhi at the Lok Seva Bhawan in Bhubaneswar on Friday.

The 11 key proposals cleared by the state cabinet on Friday include the approval of the Odisha Tourism (Amendment) Policy-2026, which is a major reform initiative aimed at strengthening Odisha’s tourism sector.

Several significant amendments have been made to the earlier Odisha Tourism Policy-2022, aiming to further boost the tourism sector in the state.

“The Cabinet has approved a reduction in the minimum investment threshold for 3-Star and above hotels and resorts from 50 keys to 10 keys, in line with the norms of the Ministry of Tourism, Government of India. 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,” informed the government in an official statement.

The state government has also rationalised the Capital Investment Subsidy (CIS) framework in the Odisha Tourism (Amendment) Policy-2026. As per the amendments, tourism projects will be eligible for CIS at 30 per cent, capped at Rs 50 crore for investments up to Rs 200 crore and Rs 100 crore for investments above Rs 200 crore.

The Cabinet has also approved the expansion of Special Zones to include high-potential tourist destinations such as Hirakud, Satkosia, Similipal, Ratnagiri–Udayagiri–Lalitgiri and Bhitarkanika, in addition to the existing special zones of Chilika, KBK, 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 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.

The government also decided to introduce targeted subsidies 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.

The amended policy introduces focused incentives for segments such as MICE, destination weddings, luxury camping and electric mobility-based tourism products.

In addition, a dedicated Capex and Opex support framework has been introduced for the promotion of authentic Odia cuisine through support to Odia cuisine restaurants at Department of Tourism-notified tourist destinations within Odisha, as well as outside the state in five metro cities -- Mumbai, Delhi, Bengaluru, Chennai and Kolkata - and at five major tourist destinations -- Agra, Varanasi, Goa, Kochi and Jaipur.

The Cabinet has approved the constitution of a State Tourism Advisory Council under the chairpersonship of the state Tourism department Minister to ensure smooth implementation of various initiatives in the new policy.

In another major decision, the state Cabinet also approved an integrated ingot-wafer and solar cell manufacturing project by Tata Power Renewable Energy Limited (TPREL) at the Tata Special Economic Zone (SEZ) at Gopalpur in Ganjam district.

The project will be developed in two phases with an overall capacity of 10 GW ingot-wafer and 5 GW solar cell manufacturing. With an investment of about Rs 10,000 crore, it is expected to generate over 5,000 direct and indirect employment opportunities.