Odisha Eases Tourism Investment Rules, Enhances Subsidies; Cabinet Approves Major Policy Amendments

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Odisha Eases Tourism Investment Rules, Enhances Subsidies; Cabinet Approves Major Policy Amendments

The Odisha Cabinet has approved the Odisha Tourism (Amendment) Policy-2026, introducing major reforms to attract private investment, promote sustainable tourism, and boost regional development.

Published by Dibyajyoti | January 10, 2026

The Odisha government has approved sweeping reforms to strengthen and modernize the State’s tourism sector under the Odisha Tourism (Amendment) Policy-2026. The new policy aims to align tourism development with Vision-2036 and Vision-2047 by enhancing competitiveness, improving ease of doing business, and encouraging broad private sector participation.

A major reform includes reducing the minimum investment threshold for 3-Star and above hotels and resorts from50 keys to 10 keys, matching national tourism guidelines. Expansion norms for existing units have also been relaxed, lowering the eligibility threshold from50% to 25%of current capacity to facilitate faster and easier upgrades.

TheCapital Investment Subsidy (CIS)structure has been simplified into two slabs:

30% subsidycapped at ₹50 crore for investments up to ₹200 crore
30% subsidycapped at ₹100 crore for investments above ₹200 crore

The policy expands Special Tourism Zones to include destinations such as Hirakud, Satkosia, Similipal, Ratnagiri–Udayagiri–Lalitgiri, and Bhitarkanika. Projects in these zones—and those led by women, SC/ST, and differently-abled entrepreneurs—will receiveenhanced 40% subsidy, capped at ₹60 crore for investments up to ₹200 crore and ₹120 crore for larger projects.

Additional targeted incentives have been introduced for emerging tourism formats. Museums and heritage sites will get up to40% capital support, while electric boats, electric caravans, and art-and-craft theme complexes can receive up to50% support, encouraging sustainable tourism practices.

The policy also includes incentives for MICE tourism, destination weddings, luxury camping, and electric mobility-based tourism. A new Capex and Opex framework will support the promotion of authenticOdia cuisine, including assistance for Odia restaurants at key tourist hubs in Odisha and major metro cities like Mumbai, Delhi, Bengaluru, Chennai, and Kolkata, as well as destinations such as Agra, Varanasi, Goa, Kochi, and Jaipur.

Furthermore, tourism service providers and homestay owners will be eligible for support to participate in national and international tourism promotion events, boosting Odisha’s visibility in the global tourism market.