Odisha Figures at a Glance

• Number of District 30• Total Area (in sq km) 155,707• Total Population (in million) Persons 41.95

Males 21.20Females 20.75

• Density of Population (per sq km) 269• Sex Ratio (females per 1,000 males) 978• Literacy Rate (%) Persons 73.45

Males 82.40Females 64.36

• Religion Population (%) Hindu 94.66Muslims, Christians,Buddhists, Sikhs and Jains 5.34

• Decennial Growth Rate (%) (2001-2011) 13.97• Meteorological Data Climate Tropical

Summer March-JuneMonsoon July-SeptWinter Oct-Feb

• Temperature (in Degree Celsius)Summer 35 - 40Winter 12 - 14

Source: Census of India 2011

Odisha Investment ClimateInvestment climate of a state is determined by a mix of factors

Regulatory Framework• Procedures for entry and exit of firms• Industrial regulation, Labour regulation, other

government regulations• Certainty about rules and regulations• Security, law and order situationResources/Input• Skilled and cost effective Labour• Labour market flexibility• Labour relations• Availability of natural resourcesPhysical & Social Infrastructure• Condition of physical infrastructure like power, water,

roads etc• Information infrastructure such as Telecom, IT, Road, Rail• Social infrastructure like educational and medical Facilities.

Incentives to industry• Tax incentives and exemptions• Investment subsidies and other incentives• Availability of finance at cost effective terms• Incentives for FDI• Profitability and incentives to industry

Key Industries in Odisha

• Agriculture• Forest based industry• Minerals (Ferro alloy, Aluminum)• Cement• Paper• Sugar• Fertilizer• Iron and steel• Handloom• Information Technology• Power• Tourism

Mineral reserve of Orissa as a percentage of the total deposit in India

Chromite - 97.37%,

Nickel Ore - 95.10%,

Graphite - 76.67%

Bauxite - 49.74%,

Iron Ore - 33.91%,

Manganese - 28.56%,

Coal - 27.59%.

Odisha• Geographical Position.

Odisha is geographically located on east coast of India, by the Bay of Bengal. It is surrounded by the states of West Bengal to the north-east and in the east, Jharkhand to the north, Chhattisgarh to the west and north-west and Andhra Pradesh to the south. Odisha is the 9th largest state by area in India, and the 11th largest by population. Oriya is the official language. It has a coastline of about 480 km.

• Demographic Position

According to the 2011 census of India, the total population of Odisha is 41,947,358, of which 21,201,678 (50.54%) are male and 20,745,680 (49.46%) are female, or 978 females per 1000 males. The population density is 269 per km².

• Literacy

The literacy rate is 73%, with 82% of males and 64% of females being literate, according to the 2011 census.

• Road Infrastructure

Odisha has 3704 KM of National Highway (2005-06) which accounts for 2.53% of India’s NH.

• Rail Infrastructure

As of 2005-06 the total Rail route length is 2430 KM which accounts for 4% of India’s total Rail length.

• Rainfall

The average annual rainfall is 1482mm of which 87% is received during June to September.

• Civil AviationA domestic airport is available at Bhubaneswar. There are 13 airstrips & 18 helipads at various location of the state.• WaterwaysThe Paradeep Port in the Jagatsinghpur district with handling capacity of 42.4 MT is a major port others being Dhamra in Bhadrakh district & Gopalpur in Ganjam District. The state government is encouraging private firms to step into the port sector to create infrastructure for several upcoming metallurgical projects in the state.• PowerOrissa was the first state in the country to bring in power sector reforms.Four distribution companies have been created: Western Electricity Supply Company of Orissa Limited (WESCO), North Eastern Electricity Supply Company of Orissa Limited (NESCO) and Southern Electricity Supply Company of Orissa Limited (SOUTHCO) with investments from Reliance Energy Limited. The fourth entity is the Central Electricity Supply Utility of Orissa (CESU) which is state-government owned.• TelecommunicationsAll major telecom companies are present with BSNL having the major market share.• Industrial InfrastructureTo facilitate the growth of industries by creating an enabling environment for attracting domestic and international investments, the state government enacted the Orissa Industries (Facilitation) Act, 2004, for implementing a single window clearance system.Education Infrastructure• The state has roughly 48,405 primary schools with over 4.5 million students enrolled. •Orissa has nine universities, 57 engineering colleges, 29 Master of Computer Applications (MCA) colleges, 34 polytechnics, four medical colleges, two dental colleges, 231 ITIs and 29 diploma colleges.•The state’s industrial policy aims to improve technical manpower and upgrade the skills of local entrepreneurs.Medical Infrastructure• In 2007-08, there were 1,704 government allopathic medical institutions in the state with 14,166 hospital beds. • •By the end of 2007-08, there were 181 hospitals, 231 community health centers, 14 mobile health units and 1,278

primary health centers, of which 1,164 have new facilities.

• Key Nodal Agency

1. Industrial Promotion and Investment Corporation of Orissa Limited (IPICOL)

IPICOL is a key promotional institution and was incorporated in 1973 with the main objective of accelerating the pace of industrial development by promoting large and medium scale industries.

2.Industrial Development Corporation of Orissa Limited (IDCOL)

DCOL was set up in 1962 to set up and promote industrial units for utilization of natural resources available in the state.

3. Orissa Industrial Infrastructure Development Corporation (IDCO)

IDCO was established with the objective of creating infrastructure facilities in industrial estates and areas identified for accelerated growth of industries, trade and commerce.

4. Agricultural Promotion and Investment Corporation of Orissa Ltd (APICOL)

APICOL‟s aim is to strengthen the rural economy by providing financial support for promotion and development of agro-based and food-processing industries.

5. Orissa State Financial Corporation (OSFC)

OSFC is a premier state level financial institution that came into existence in 1956 to cater to the need of industrial development in the state. It provides financial assistance to small and medium scale industries in consortium with state level financial institutions. Besides, the corporation also receives financial assistance from state-and central-government, and provides soft loans and margin money for rehabilitation of sick industrial units.

6.Orissa Pisciculture Development Corporation Limited (OPDC)

OPDC has launched a number of projects such as supplying fishnet, fuel and fish seeds for the economic development of fishermen.

7. Directorate of Export Promotion & Marketing (DEPM)

DEPM has been set up to promote export of goods from the state of Orissa and to provide marketing assistance to SSI units of the state.

8. Orissa Small Industries Corporation (OSIC)

OSIC was established in April 1972 with main objective of aiding and assisting SSI units in the state for their sustained growth and development.

9. The Orissa State Cooperative Handicrafts Corporation (OSCHC)

Established in 1956, OSCHC is the primary authority that is engaged in encouraging exporters, enlarging marketing opportunities, introducing new design and technology and strengthening the production base in the handicrafts sector.

10. Orissa State Electronics Development Corporation (OSEDC)

OSEDC was established in 1981 as the nodal organization in the state for promotion of electronic industries, both, in hardware and software.

11. Grid Corporation of India Limited (GRIDCO)

GRIDCO is a Government of Orissa undertaking and was incorporated in April 1995 for power transmission. In 2005, GRIDCO‟s transmission-related activities were transferred to Orissa Power Transmission Corporation. Now, GRIDCO is a trading company and is involved in the bulk sale of power to the four power-distribution companies in Orissa. It also trades surplus power with neighboring states.

12.Orissa State Pollution Control Board (OSPCB)

OSPCB is responsible for managing the following: hazardous waste, bio-medical waste, municipal solid waste, usage and manufacture of recycled plastics, batteries, and the manufacture, storage and import of hazardous chemicals.

Industry wise Key PlayersKey Players Iron, Steel & Ferro Alloy• Tata Steel•Tata Sponge Iron Limited •Kalinganagar Integrated Steel Project•Rourkela Steel Plant •Orissa Sponge Iron and Steel Limited•Neelachal Ispat Nigam Limited•Balasore Alloys Limited •Pohang Steel Company Key Players Aluminium• National Aluminium Company Limited •Hindalco Industries Limited•Vedanta GroupKey Players Agro Based • Rourkela Fertilizer Plant• Paradeep Phospate Ltd.• Oshwal Chemicals & Fertilizers Ltd.Key Players Mining• Odisha Mining Corporation• Mahanadi Coalfields Ltd.Key Players Power Industry• Reliance Energy Ltd.• National Thermal Power CorporationIT/ITESInfosys Technologies Ltd.Tata Consultancy Services Ltd.

Odisha Political Scenario

The Government of Odisha and its 30 districts consists of an executive, led by the Governor of Odisha, a judiciary, and a legislative branch.Like other states in India, the head of state of Odisha is the Governor, appointed by the President of India on the advice of the Central government. His or her post is largely ceremonial. The Chief Minister is the head of government and is vested with most of the executive powers. Bhubaneswar is the capital of Odisha, and houses the Vidhan Sabha (Legislative Assembly) and the secretariat. The Orissa High Court, located in Cuttack, has jurisdiction over the whole state.The present Legislative Assembly of Odisha is unicameral, consisting of 147 Member of the Legislative Assembly(M.L.A). Its term is 5 years, unless sooner dissolved.The state of Odisha is represented at the Centre by its 21 Member of Parliaments in the Lok Sabha and 10 Member of Parliaments in Rajya Sabha. The Members of Rajya Sabha were elected and / or nominated by the Member of Legislative Assembly through their parent political parties.Present Assembly Party Wise (Fifteenth Assembly 2014)• Biju Janata Dal – 117• Indian National Congress – 16• Bharatiya Janata Party – 10• Others – 4 Odisha Lok Sabha Representation (16Th Lok Sabha)• Biju Janata Dal – 20• Bharatiya Janata Party – 1Odisha Rajya Sabha Representation• Biju Janata Dal – 8• Indian National Congress – 1• Others – 1

Industrial Policy Resolution, 2007

Aims to create a business climate conducive to accelerating investment in industry and infrastructure projects.

Industrial Policy Resolution, 2007 (IPR 2007) envisages to:

•Raise income, employment and economic growth in the state•Reduce regional disparities in economic development within the state •Deregulate the business environment •Implement and make operational, single window mechanism for industrial clearances•Ensure balanced utilization of natural resources for sustainable development•Provide existing industrial units in Orissa with incentives and concessions, subject to certain conditions•Provide thrust to identified industrial sectors such as downstream steel, aluminum, petrochemicals, mineral processing and value addition, chemicals and fertilizers, agro and food-processing, handicrafts and handloom, IT and export oriented industries

Orissa Public Private Partnership Policy, 2007

The policy aims to supplement scarce public resources, create a more competitive environment and help improve efficiencies and reduce costs.

The key objective of this policy is to:•Leverage state and central government funds, support private investment and create a conducive environment for utilizing available resources, innovation and providing flexibility to the private sector for better infrastructure and service at an optimal cost.•Set up a transparent, consistent, efficient administrative mechanism to create a level playing field for all participants and protect interest of all stakeholders.•Prepare a shelf of projects to be offered for public private partnership (PPP) and take them forward with the assistance of the concerned departments through a transparent selection process.•Put in place an effective and efficient institutional mechanism for speedy clearance of the projects.•Provide the necessary risk sharing framework in the project structure so as to assign risks to the entity most suited to manage them.•Create a robust dispute redress mechanism regulatory framework for PPP projects.•Provide the required viability gap funding (VGF) where the essential projects are intrinsically unviable.•Create an Orissa Infrastructure Development Fund (OIDF) to facilitate the implementation of the objectives of the policy.

Orissa Tourism Policy, 1997Through the Orissa Tourism Policy, the state government acts as a promoter and catalyst to create an environment for planned and sustained development of tourism.

According to the policy:

•The approach to development will concentrate on thrust areas and travel circuits as identified by the state government.•Maintenance and improvement of the existing roads and planning of new roads to the tourist centers will be given priority.•Operation of charter flights will be encouraged while improving the air service to the state.•Water sports and water transport services will be encouraged.•Incentives to hotels and other tourism-related activities will continue.•Bhubaneswar would have a convention complex and a golf course.•Marketing and publicity, for exploiting tourism potential and the facilities, will be stepped up.•Human resource development will be given priority.

Information and Communication Technology (ICT) Policy, 2004

Aims to narrow down the digital divide among the citizens of the state

The objectives of this policy is to provide:

•Inexpensive access to information•Transparency in governance practice•Door-step delivery of host of services•Increased employment •High export turnover and economic growth

Single Window Clearance Mechanism

• The government has enacted the Orissa Industries (Facilitation) Act, 2004, for implementing the single window clearance system for faster and one-point clearance of industrial projects, single point dissemination of industrial project related information, and streamlining inspection of industries by different agencies and authorities.

•The district level single window clearance authority works under the chairmanship of the District Collector for projects involving investment less than US$ 11.9 million.•The state level single window clearance authority is chaired by the Chief Secretary of the state for projects involving investment of US$ 11.9 million or more, but less than US$ 238 million. •A high level clearance authority chaired by the Chief Minister of Orissa examines and considers proposals for industrial and other projects involving investment of US$ 238 million or above.

State Level Comparative Assessment of SEZ Act

Special Economic Zone to be Industrial Township

West Bengal

• The governor having regard to the area of a Special Economic and municipal services to beprovided, may by notification, declare such SEZ to be an Industrial Township in accordancewith the provisions of the West Bengal Municipal Act 1993

• The concerned authority shall also perform the functions of an Industrial Township Authorityas specified in the West Bengal Municipal Act, 1993

Gujarat

• Every zone, having regard to the municipal services proposed to be provided in the area ofthe Zone and such other factors, shall be deemed to be an industrial area under theprovision to clause (1) of article 243Q of the constitution of India

• Notwithstanding anything contained in any other law for the time being in force, the area ofZone shall cease to be under the jurisdiction of any municipal corporation, municipal council,nagar panchayat or gram panchayat or the notified area constituted under the State laws veryzone, having regard to the municipal services proposed to be provided in the area of the Zoneand such other factors, shall be deemed to be an industrial area under the provision to clause(1) of article 243Q of the constitution of India

• Notwithstanding anything contained in any other law for the time being in force, the area ofZone shall cease to be under the jurisdiction of any municipal corporation, municipal council,nagar panchayat or gram panchayat or the notified area constituted under the State laws

Maharashtra• The state government shall declare the Zone to be an

industrial township under the provisions to clause (1) of Article 243-Q of the constitution of India The zone shall be governed subject to the provisions of this chapter.

SEZ Specific FundWest Bengal•There shall be a fund to be called the Special Economic Zone Development Authority Fund to be held by the authority in trust for the purposes of the SEZ Act

•The authority may, with the previous approval of the State Government, borrow money from the open market or otherwise for carrying out the functions under the SEZ act

Single Agency and Self Certification SystemWest BengalThe development commissioner shall exercise the followingpowers so as to provide for single window clearance system inthe SEZ• The powers of the Labour commissioner The powers of the

director, town and country planning departmentHaryana

The development commissioner shall exercise the followingpowers so as to provide for single window clearance system inthe SEZ• The powers of the Labour commissioner and chief

inspector of factories for Labour laws• Powers of Haryana Pollution Control Board• The powers of the director, town and country planning

department

GujaratNotwithstanding anything contained in any other law, the state governmentmay:• Prescribe a common application form for approval, clearance, license,

registration and no objection certificate under one or more laws• Authorize the development commissioner to exercise such of the powers

of the state government or a body subordinate to the government as maybe specified by general or special order

• Prescribe a single return for reporting under two or more laws• Authorize an officer or agency for monitoring the compliance of the laws

applicable in the zoneMaharashtraThe Development Commissioner shall have the following powers namely:• Acting as the registering authority for Tenants in the Zone.• Allotting the Importer-Exporter code number for Tenants in the Zone• Exercising the powers of adjudication under Section 13 read with

Section 11 of Foreign Trade (Development & Regulation) Act, 1992 forTenants.

• Valuation of exports declared on SOFTEX form by Tenants in the Zone.• Issuing eligibility certificates for grant of employment visa to low level

foreign technicians to be engaged by Tenants in the Zone.

Way Forward

• Update the Odisha Industrial Policy.

• Formulate a Special Economic Zone Policy for Odisha.