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regular-article-logo Tuesday, 30 September 2025

Odisha government frames new rules for ease of doing business

The state government passed an amendment to the Odisha Shops and Commercial Establishments Act, 1956. These provisions will apply to those shops and commercial establishments in the state that engage 20 or more employees

Subhashish Mohanty Published 30.09.25, 09:08 AM
Mohan Charan Majhi.

Mohan Charan Majhi. File picture

The state cabinet, chaired by chief minister Mohan Charan Majhi, on Monday approved several proposals, including for ease of doing business in the state and a model school in each panchayat of the state.

To create an environment for business ease, the state government passed an amendment to the Odisha Shops and Commercial Establishments Act, 1956. These provisions will apply to those shops and commercial establishments in the state that engage 20 or more employees.

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Henceforth, the daily working hours would be 10 hours instead of nine hours in these establishments.

“The work shift of an employee in an establishment shall not exceed six continuous hours without an interval for rest of at least an hour. There will be an increase in overtime work limit from 50 hours to 144 hours during a period of three months,” a government media release said.

Employees working beyond duty hours will be paid overtime.

“Where an employee works in any establishment for more than 10 hours on any day or for more than 48 hours in any week, he shall, in respect of such overtime work be entitled to double the ordinary rate of wages,” the media release said.

The government will allow the business establishments to decide for how long to keep their establishments open.

“Establishments shall have the choice to remain open 24/7 in a day and 365 days in a year,” it said.

It added that women employees can be engaged to work during night hours, subject to their consent. But the “safety and dignity” of the women employees need to be looked after.

“These reforms shall reduce compliance burden on small businesses and provide impetus to entrepreneurs, thus creating more economic activities while ensuring the welfare of employees. It shall also enhance employees’ earnings by allowing more overtime work and promote higher work participation opportunities for women in organized sector and the corporate sector,” the release said.

In another proposal, the state cabinet approved a plan for the comprehensive development of Maa Tarini Temple in Keonjhar, Majhi’s home district. A three-storey guest house, market complex, pilgrim facilitation centre and other facilities will come up at an estimated cost of 224.7 crore.

The state cabinet also approved a proposal to establish Adarsh Vidalayas (model schools) in every Odisha gram panchayat under the Godabarisha Mishra Adarsha Prathamika Vidyalaya Yojana. Around 2,200 model schools at an estimated 12,000 crore will come up in the first phase.

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