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Odisha now offering Rs 5 cr to open Odia cuisine restaurants across India
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Tuesday, 31 March, 2026, 08 : 00 AM [IST]
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Nandita Vijayasimha, Bengaluru
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The Government of Odisha has launched a major initiative to promote authentic Odia cuisine nationwide by offering financial assistance of up to Rs 5 crore for setting up Odia restaurants.
This is part of the revised tourism policy 2026 where the state will provide capital investment up to Rs 5 crore per restaurant and the extra operational cost support for up to 3 years including electricity expenses. For the restaurants to be set up in Odisha, the Department of Tourism’s, eligible capital expenditure (CAPEX) components are furnishing, interior, kitchen equipment, repair, renovation of existing restaurants.
In the first phase, these restaurants are planned to be open in Delhi, Mumbai, Bengaluru and Chennai, said the officials familiar with the development. There will be up to 5 restaurants per city. Even in the tourist destinations of Agra, Varanasi, Goa, Kochi and Jaipur, it will be 2 restaurants per location. For restaurants coming up in either metros or tourist spots, the eligible CAPEX comprises furnishing, interior and kitchen equipment.
The key aim is to promote Odisha’s rich culinary heritage covering across temple food, coastal dishes, tribal cuisine, pithas and so on. The move will encourage private investors and entrepreneurs to enter the hospitality sector. The restaurants are expected to signal authentic Odia culture through food, design, and overall dining experience.
The CAPEX disbursement schedule will be in three instalments. Under the first instalment, 50 percent will be disbursed, one year after the CoD (cash on delivery). The second and third instalment will be 25 percent each. The Department of Tourism will also provide operational expenditure linked to electricity charges and SGST (state goods and services tax). For the first year, reimbursement will be two times of monthly electricity charges. In the second and third year, reimbursements are monthly electricity changes and SGST. The overall monthly cap is limited to Rs 2 lakh per unit per month.
For restaurants outside Odisha, it will be a 3-year support where the reimbursement will be two times of monthly electricity charges. Here too, the total reimbursement will be limited to maximum Rs 2 lakh per unit per month.
Chetan L Hanchate, chief executive officer, Centre for Processed Foods (CPF), which offers consultancy, said the Odisha Government needs to be complemented for coming out with a new concept promoting State owned authentic and traditional sweets and savouries.
If these Odia cuisine restaurants are set up while properly adhering to food safety regulations, hygiene standards, licensing norms, and quality control, then it can preserve and promote regional heritage. Odia cuisine is deeply rooted in temple traditions like the food of Jagannath Temple and home-style cooking. Restaurants can bring this rich, lesser-known cuisine to a wider audience, added Hanchate.
Following regulations ensures customer confidence, making it easier to expand into chains or franchises across cities. "Compared to more mainstream Indian cuisines, Odia food like Dalma, Chhena Poda, Pakhala Bhata is still underrepresented and it creates an opportunity for differentiation," he said.
Authentic Odia cooking relies on regional produce, which can strengthen local supply chains. Also food is a major entry point into culture and well-run restaurants can spark interest in Odisha’s traditions, festivals, and history, Hanchate noted.
All said, compliance reduces legal risks, improves operational efficiency, and attracts investors and partnerships. Further, the techno financially viable model will encourage restaurant entrepreneurships, according to Hanchate.
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