The Odisha government plans to sign at least 25 Memoranda of Understanding (MoUs) during the current fiscal year in the food and beverages sector, said Hemant Sharma, Additional Chief Secretary, Home, Industries Department and I&PR, Government of Odisha.
“The food and beverage sector, which is treated as a priority sector, has demonstrated significant growth and investment momentum in Odisha. A total of 33 industries have been proposed, with an estimated investment of ₹7,655 crore and the potential to generate 14,532 employment opportunities in 2025-26,” he told businessline over the phone from Bhubaneswar.
So far, 8 projects have been grounded, accounting for ₹3,815 crore in investment and creating 16,165 jobs. The inauguration of 9 projects has been done, contributing ₹2,404 crore in investment and generating 3,731 employment opportunities. In all, Odisha plans to set up 10 mega food parks.
Ease of doing biz
One of the reasons for large food and beverage companies such as Hindustan Coca-Cola, ITC, Nestle, Bisleri, Parle, Indo Nissin and Tata Gluco for choosing Odisha over other eastern States is that it is seen as one where it is easy to do business, he said. All projects are cleared through a single window clearance system.
“There is a big transformation in the food and beverage sector, and it is reaping the benefits of economic growth. Odisha’s economy is growing at 7.5-8 per cent, faster than the national economy,” said Sharma.
Over the past 4-5 years, some of the large companies have set up shop in Odisha. “We have better logistics in Odisha compared to other States in the region. We provide cement roads up to the unit that is set up in our State. We provide 33 KW power lines,” he said.
Additional land
To attract food companies to the State, Odisha has set up food parks near the capital, Bhubaneswar. The food parks have good infrastructure and water connection. “From the National Highway, units are provided a 60-ft road at our cost,” the Additional Chief Secretary said.
Any company taking up land in the food park is given the option to take additional land, which it can acquire within the next five years. “For example, Nestle took 50 acres. We reserved 50 acres for any extension of the units. We also kept aside 20 acres for its vendors,” said Sharma.
Odisha first tried this for Hindustan Coca-Cola, which took an additional 18 acres. If a company fails to make use of the additional allocation, the State then takes it for others.
Lands for the companies are given on concession. “We also provide financial assistance of 20 per cent of capital costs. We give 5-10 years of subsidy for this. Only Gujarat provides such facilities. We learnt it from them,” he said.
Local employment
Industrial units in the food parks are provided with power at a discounted rate of ₹4 per unit for five years. “If anyone wants to bring power from outside, we will give 100 per cent exemption from electricity duty,” said Sharma.
Though employing locals is not mandatory, the State government bears the Employees’ State Insurance Corporation (ESIC) and Employees’ Provident Fund burden of the employer if they are Odisha locals.
The State refunds 50 per cent of cash costs if the employment of the domestic people is more than 50 per cent. However, it will not apply to companies that produce alcoholic beverages.
This, for example, has helped Pragati Milk to set up three plants in the State. One is in central Odisha, the other is the coastal part and the third is in the northern part of the State.
On encouraging local sourcing of agricultural produce such as rice, maize, garlic, turmeric of spices, the State provides transport subsidy. It also provides subsidies for cold chain infrastructure, said the additional chief secretary.
Overall, the food and beverage sector is progressing well across proposed, approved, and operational stages, indicating robust industrial development and job creation, said Sharma.
Published on April 24, 2026