Bhubaneswar

The Odisha Cabinet on Saturday approved 12 proposals, including the continuation of state Viability Gap Funding (VGF) support for two international air routes from Bhubaneswar and a major industrial investment of Rs 17,250 crore to establish an integrated new-age manufacturing complex in the state.

The decisions were taken at a Cabinet meeting chaired by Chief Minister Mohan Charan Majhi, Chief Secretary Anu Garg said while briefing reporters.

The Cabinet approved a proposal of the Commerce and Transport Department to continue and rationalise VGF support for IndiGo-operated international flights connecting Bhubaneswar with Dubai and Singapore. These routes had earlier been launched with state support to offset initial commercial viability gaps.

Garg said passenger load factors declined after the earlier withdrawal of VGF, raising concerns over the sustainability of the routes. To stabilise operations, the Cabinet approved VGF support for both the Bhubaneswar–Dubai and Bhubaneswar–Singapore routes for a six-month period.

The total VGF outlay for the two routes during this period is estimated at around Rs 26.87 crore, to be met from the approved allocation under the B-MAAN scheme. Any future continuation, modification or expansion of international routes will be decided by the Chief Minister based on periodic performance reviews of passenger demand and route viability.

However, no decision was taken on extending VGF support for the Bhubaneswar–Bangkok and Bhubaneswar–Abu Dhabi routes.

In another major decision, the Cabinet approved an industrial proposal by the Kalyani Group to set up an integrated new-age manufacturing complex at Gajamara in Dhenkanal district. The project, to be developed over around 1,100 acres, aims to strengthen Odisha’s footprint in advanced manufacturing, particularly in the automotive, aerospace and defence sectors.

The integrated complex will comprise multiple production units, including a speciality steel plant by Kalyani Steels Limited, a super-alloy manufacturing facility by Saarloha Advanced Materials Private Limited, and industrial components casting and forging units by Bharat Forge and its subsidiaries. The project has been approved under special provisions of Odisha’s Industrial Policy Resolution (IPR) 2022.

The total proposed investment is estimated at approximately Rs 17,250 crore. The project is expected to generate over 4,800 direct jobs and around 5,500 indirect jobs during the construction and early operational phases. Including employment through vendor parks and ancillary units, total job creation is projected to exceed 20,000 in the coming years.

Garg said the project will initially focus on speciality steel manufacturing and later expand into super-alloy production, with an emphasis on value-added manufacturing within the state. The integrated automotive, aerospace and defence manufacturing ecosystem is expected to generate more than 12,000 high-value jobs over time.

The Cabinet also approved the State Cooperative Policy 2026, aimed at transforming the cooperative sector into a technology-driven, efficient and member-centric system aligned with inclusive development goals. The policy follows the National Cooperative Policy announced in July 2025.

Additionally, the Cabinet cleared the Odisha Uniformed Services Staff Selection Commission (Method of Recruitment and Conditions of Service of the Chairman and Members) Rules, 2026. The commission will oversee centralised, transparent and technology-driven recruitment for the Odisha Police, Excise, Forest and Environment, and Commerce and Transport departments.

To strengthen irrigation infrastructure, the Cabinet approved the Rs 362 crore Diversion Weir Improvement Scheme, to be funded entirely from state resources and implemented over three financial years from 2025–26 to 2027–28.

The Cabinet also approved the State Council on Science and Technology scheme, to be implemented over five years from 2025–26 to 2029–30 with an estimated outlay of Rs 254.85 crore. The initiative aims to promote science, technology and innovation for socio-economic development.

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Other decisions included amendments to professional service recruitment rules and changes to the Odisha Superior Judicial Service and Judicial Service Rules, 2007.