Chief Minister Naveen Patnaik handed over the appointment letters to the constables at a function.
Patnaik said the state required a dedicated force in order to maintain a healthy industrial climate in Odisha, where industries are coming up.
"Conforming to the basic prerequisite, the state government has raised the Odisha Industrial Security Force which starts functioning today. I congratulate all the 1,370 constables for being part of this prestigious security force," he said.
The newly recruited personnel would be given nine months of training on lines of Central Industrial Security Force (CISF).
The senior officers of the newly created OISF will be deputed from Odisha police, a state government official said.