odisha - august 2013

7/27/2019 Odisha - August 2013

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Note: CAGR Compound Annual Growth Rate; GSDP Gross State Domestic Product*Calculated in rupee terms

Strong economy The states economy witnessed high growth rates between 2004-05 and 2012-13, with

GSDP expanding at a CAGR* of 16.2 per cent.

Hub for mineral-basedindustries

Odisha has emerged as a key state with regards to the mineral- and metal-based

industries. The state leads in iron, steel, ferroalloy and aluminium production and has astrong base for coal-based power generation. The mining sector accounted for 6.6 percent ofOdishas GSDP during FY12 and grew at an average rate of 6.7 per cent duringFY 2006-12.

Highest aluminiumproduction capacity

Odisha accounts for around 52.0 per cent of Indias bauxite reserves and is an ideallocation for setting up aluminium-based companies. The state ranks first in the country interms of both production capacity and actual output of aluminium.

Strong iron and steelsector

Accounting for around 25.0 per cent of the countrys iron-ore deposits, Odisha is one ofthe favoured investment destinations for domestic and international iron and steel playersas well as one of the largest producers of iron and steel in India. The share of iron ore intotal exports of minerals stood at 96.2 per cent in 2011-12.


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Note: SSI Small Scale IndustryMSME Micro, Small and Medium Enterprises

Strong growth inSSI/MSME units

The state has been witnessing a rise in the number of SSI/MSME units in recent years.During 2011-12, 5,505 MSME units went into production with an investment of US$ 92million and 30,387 persons were provided employment.

Strong power sector

Odisha is the first state in India to have undertaken reform and restructuring initiatives in

the power sector. As of April 2013, the state had a total installed power generationcapacity of 6,946.33 MW.

Strong tourism sector With an estimated inflow of US$ 820 million into Odisha through the tourism sector during

2011-12, the sector has a vast potential in the state. National Geographic Travelermagazine has named the state in its 50 Tours of a Lifetime list in the 2013 edition.


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The engineering sector is delicensed;100 per cent FDI is allowed in thesector

Due to policy support, there wascumulative FDI of USD14.0 billion intothe sector over April 2000 February2012, making up 8.6 per cent of totalFDI into the country in that period

Growing demand

High economic growth

The states GSDP expanded at acompound annual growth rate(CAGR) of 16.2 per cent between2004-05 and 2012-13.

The tertiary sector recorded thehighest growth rate (18.5 per cent)among all three sectors in the sameperiod.

Facilitating infrastructure

Odisha has a well-developed social,physical and industrial infrastructure,and the state government hasundertaken several infrastructuralprojects to further promote overalldevelopment.

The states infrastructure includes well-connected road and rail networks,airports, ports, power, and telecom.

Rich labour pool

The state has a literacy rate of 73.5per cent and, therefore, has a largebase of skilled labour, making it anideal destination for the mineral-basedindustry.

Furthermore, the state has a largepool of semi-skilled and unskilledlabour.

FY2000-10

2.7 per cent

share inIndia's

incrementalGDP

FY2011-20

4.1 per cent

share inIndia's

incrementalGDP

AdvantageOdisha

Policy, fiscal incentives andinitiatives

The state offers a wide range of fiscaland policy incentives for businessesunder the Industrial Policy Resolution,2007.

Additionally, the state has sector-specific policies for IT and micro,small and medium enterprises.

The state government has constitutedTeam Odisha to help withinvestment promotion.


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Odisha is located in the eastern region of India. The stateshares its borders with West Bengal in the north-east,Jharkhand in the north, Andhra Pradesh in the south,Chhattisgarh in the west, and the Bay of Bengal in the east.

Languages spoken in the state are Oriya and its variousdialects, Hindi and English.

Bhubaneswar, Ganjam, Cuttack, Mayurbhanj, Baleshwar,Khordha and Sundargarh are some of the large cities interms of population.

Odisha has three major seasons, summer (March to June),monsoon (July to September) and winter (October toFebruary).

Sources: Economic Survey of Odisha, 2011-12,*Provisional Data Census 2011

Parameters Odisha

Capital Bhubaneswar

Geographical area (sq km) 155,707

Administrative districts (No) 30

Population density (persons per sqkm)*

269

Total population (million)* 41.9

Male population (million)* 21.2

Female population (million)* 20.7

Sex ratio (females per 1,000 males)* 978

Literacy rate (%)* 73.5

Source: Maps of India


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Parameter Odisha All-States Source

Economy

GSDP as a percentage of all states GSDP 2.7 100Planning Commission Databook, 2012-13,

current prices

Average GSDP growth rate* (%) 16.2 15.6Planning Commission Databook, 2004-05 to

2012-13, current prices

Per capita GSDP (US$) 1,113.5 1,414.2 Planning Commission Databook, 2012-13,current prices

Physical Infrastructure

Installed power capacity (MW) 6,946.3 225,133.1 Central Electricity Authority, as of May 2013

Wireless subscribers (No) 24,601,935 867,803,583Telecom Regulatory Authority of India, as of

March 2013

Broadband subscribers (No) 215,554** 15,050,000Ministry of Communications & Information

Technology, as of March 2013National highway length (Km) 3,594 79,116 National Highways Authority of India

Major and minor ports (No) 1+2 13 + 187 Indian Ports Association

Airports (No) 1 133 Airports Authority of India

SRS: Sample Registration System*In Indian rupee terms

**In 2011-12


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Parameter Odisha All-States Source

Social Indicators

Literacy rate (%) 73.5 74.0 Provisional Data Census 2011

Birth rate (per 1,000 population) 20.1 21.8 SRS Bulletin (www.censusindia.gov.in), 2012

Investment

FDI equity inflows (US$ billion) 0.34 193.3 Department of Industrial Policy & Promotion,April 2000 to March 2013

Outstanding investments (US$ billion) 849.0 10,499.2 CMIE (201213)

Industrial Infrastructure

PPP projects (No) 33 881 www.pppindiadatabase.com

SEZs (No) 5 385 Notified as of March 2013, www.sezindia.nic.in

SRS: Sample Registration System, PPP: Public Private Partnership, SEZ: Special Economic Zone


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At current prices, Odishas total GSDP was about US$ 47.6billion in 2012-13.

The states GSDP expanded at a CAGR of 16.2* per centbetween 2004-05 and 2012-13.

Source:Planning Commission Databook 2013*CAGR calculated in rupee terms

Note: GSDP: Gross State Domestic Product;CAGR: Compound Annual Growth Rate

GSDP of Odisha at current prices (in US$ billion)

17.3 19.2

22.5

32.132.3 34.4

42.7 45.047.6

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

CAGR16.2%*


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Odishas total NSDP was about US$ 39.0 billion in 2012-13.

The states NSDP increased at a CAGR of 15.3* per centbetween 2004-05 and 2012-13.


Note: NSDP: Net State Domestic Product;CAGR: Compound Annual Growth Rate

NSDP of Odisha at current prices (in US$ billion)

15.1

16.6 19.4

27.6 27.8 28.7

35.6 36.939.0

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

CAGR15.3%*


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Odishas per capita GSDP in 2012-13 was US$ 1,113.5compared with US$ 448.9 in 2004-05.

Per capita GSDP expanded at a CAGR of 14.7* per centbetween 2004-05 and 2012-13.


Per capita GSDP (US$)

449

492569

802

797836

1,0241,067

1,113

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

CAGR14.7%*


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Odishas per capita NSDP in 2012-13 was US$ 911.2compared with US$ 392.6 in 2004-05.

Per capita NSDP increased at a CAGR of 13.8* per centbetween 2004-05 and 2012-13.


Per capita NSDP (US$)

393

426491

689 684697

853 874911

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

CAGR13.8%*


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In 2012-13, the tertiary sector contributed the most (49.6 percent or US$ 23.6 billion) to GSDP, followed by thesecondary (27.0 per cent or US$ 12.9 billion) and primary(23.4 per cent or US$ 11.1 billion) sectors.

During 2004-05 to 2012-13, the tertiary sector recorded thehighest CAGR (18.5* per cent), followed by the secondary

(16.5* per cent) and primary (12.2* per cent) sectors.

Source:CMIE,

*CAGR calculated in rupee terms

Percentage distribution of GSDP

31.023.4

26.6 27.0

42.449.6

2004-05 2012-13

Primary Secondary Tertiary

CAGR**

12.2%

18.5%

16.5%


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Source: Economic Survey of Odisha, 2012-13*Million nuts

CropAnnual production:

2011-12 (000 tonnes)

Rice 5,807

Sugarcane 885

Coconut 375*

Onion 419

Maize 212

Turmeric 209

Tur 115

Ginger 135

Ground nut 79

Potato 63

Gram 30

In 2011-12, the total production of food grains in the statewas around 6.32 million tonnes.

Rice is the primary crop in the state. The total production ofrice in the state was around 5.81 million tonnes in 2011-12.

The major oilseeds grown in the state include groundnuts,

castor seeds, linseeds, and sesame.

As of 2011-12, 5.24 million hectares was under cultivationof principal crops.


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According to the DIPP, cumulative FDI inflows during April2000 to March 2013 amounted to US$ 341 million.

In 2012-13, the state had US$ 849 billion of outstandinginvestments.

Of the total outstanding investments, the manufacturing

sector accounted for around 47.8 per cent, followed by theelectricity sector (33.6 per cent).

Break up of outstanding investments by sector(2012-13)

47.8%

7.8%

33.6%

9.1%

1.6%

Manufacturing

Mining

Electricity

Services

Others

Source: CMIEOthers includes irrigation and real estate

Note: DIPP Department of Industrial Policy & Promotion


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Odishas total exports came in at US$ 3.4 billion in 2011-12.Exports increased at a CAGR of 4.7* per cent between2006-07 and 2011-12.

The state has been a major exporter of both mineral andmetallurgical products, which account for around 57.4 percent and 29.7 per cent of the states total exports,

respectively.

In 2011-12, total exports of minerals and ores from the statehad reached 13.49 million tonnes.

The state government has identified some sectors for exportpromotion and facilitation. These are agriculture andprocessed food products, readymade garments, electronics,IT, engineering goods, arts & crafts, and minerals & mineral-

based products.Source

:Economic Survey of Odisha, 2012-13*CAGR calculated in rupee terms

Export trends (US$ billion)

2.8

3.4 3.2

2.7

3.83.4

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

CAGR4.7%*


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Odisha has around 250,328 km of roads, including 3,594km of national highways and 3,616 km of state highways.

The state is well connected to its neighbouring states andother parts of India through 15 national highways.

The private sector is being encouraged to participate in the

construction of highways.

During 2011-12, the state had a road density of 160.77 kmper 100 square km of area.

Source: Ministry of Road Transport & Highways,Economic Survey of Odisha, 2012-13

Road type Road length in 201112 (Km)

National highways 3,594

State highways 3,616

District roads 11,376



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Growing demandAt the end of 2011-12, total railway route length in Odishawas 2,469 km, including 54 km of narrow gauge.

Odisha serves as a link between eastern and westernIndia through the railway network of the South EasternRailways and the East Coast Railways.

With the commissioning of the Talcher-Sambalpur line, avital link has been established between coastal andwestern Odisha.

Odisha falls in the East Coast Railways region. Its majordivisions are Khurda Road, Sambalpur and Waltair, withdistrict headquarters in Bhubaneswar.

In the Railway Budget 2012-13, surveys for three new

railway lines have been announced; Raipur-Bargarh viaAarang, Tumgaon, Jhalap and Sairapali, Ambikapur-Jharsuguda to connect with Delhi main line andAmbikapur-Jharsuguda via Batuali, Sitapur, Pathalgaonand Kotba.

Source: http://www.indianrailways.gov.in



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A domestic airport, the Biju Patnaik Airport, is located inthe state capital, Bhubaneswar.

Direct links are available from Bhubaneswar todestinations such as New Delhi, Kolkata, Chennai,Nagpur, Mumbai and Hyderabad. In addition, there are 12airstrips and 16 helipads at several places in the state.

The new domestic terminal at the Biju Patnaik Airport wasinaugurated on 04 March 2013. The terminal building wascompleted at a cost of US$ 31.3 million.

Moreover, AAI is planning to modernise, expand andoperate the Jharsuguda Airport, in light of the industrialhub, which is being built near the airstrip. Three majorcompanies, Hindalco, Dubal-L&T and Vedanta Group will

be setting up aluminium complexes in the district.

The state government has proposed to develop greenfieldairports in Rayagada, Paradip, Dhamara, Angul andKalinganagar in an effort to boost intra-state and inter-state civil aviation facilities.

Bhushan Steel Ltd, a manufacturer of diversified steelproducts, is setting up a commercial airport at Arahata in theAngul district to cater to its own requirements and also toother surrounding industries.

Domestic airport


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The Paradeep Port is a major port of India. It is located inthe Jagatsinghpur district.

The port handled 56.55 MMT of cargo in 2012-13.

The port is connected with the broad-gauge rail link of theEast-Coast Railway and is also served by National

Highway-5A.

Ports

Major ports Paradeep

Minor ports Gopalpur Behrabalpur (Balasore)

Gopalpur(Ganjam)

Paradip(Jagatsinghpur)

Behrabalpur(Baleshwar)

Source: Indian Ports AssociationNote: MMT Million metric tonnes


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In addition to the two minor ports at Gopalpur and Behrabalpur, the state is developing port infrastructure at Dhamra (Bhadrakdistrict), Kirtania (Balasore district), Chudamani (Bhadrak district), Jatadhar (Jagatsinghpur district) and Astaranga (Puridistrict).

The state government is encouraging private firms to strengthen port infrastructure for several upcoming metallurgicalprojects in the state.

The state cabinet has approved the formation of the Orissa Maritime Board, which will act as the single-window agency forthe development of ports and inland waterways.

The Union Ministry of Shipping has proposed the setting up of a major port at Bahuda Muhana in southern Odisha.


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Odisha is the first state in the country to bring in powersector reforms.

As of May 2013, Odisha had a total installed powergeneration capacity of 6,946.33 MW, comprising 2,546.22MW under state utilities, 2,783.00 MW under the privatesector, and 1,617.11 MW under central utilities.

Of the total installed power generation capacity, 4,682.10MW was contributed by thermal power, 2,166.93 MW byhydropower, and 97.30 MW by renewable power.

During 2011-12, the state had 3.93 million powercustomers.

Source:Central Electricity Authority

*As of May 2013

Installed power capacity (MW)

Source: Economic Survey of Odisha 2012-13

4,072.5 4,059.3

5,378.6 5,996.3

6,946.3 6,946.3

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14*


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Segment Company*

Power generation company Odisha Power Generation Corporation Limited (OPGC)

Power transmission company Odisha Power Transmission Corporation Limited (OPTCL)

Power distribution companies

Western Electricity Supply Company of Orissa Limited (WESCO) North Eastern Electricity Supply Company of Odisha Limited (NESCO)

Southern Electricity Supply Company of Odisha Limited (SOUTHCO) Central Electricity Supply Utility of Odisha (CESU)

*OPGC, OPTCL and CESU are state government owned. WESCO, NESCO and SOUTHCO are private companies under Reliance Energy


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Telecom infrastructure (March 2013)

Wireless subscribers 24,601,935

Wire-line subscribers 374,427

Broadband subscribers 215,554*

Post offices 8,155**

Telephone exchanges 1,158*

Teledensity (in per cent) 60.21

Sources: Telecom Regulatory Authority of India,Department of Telecommunications, Annual Report 2012-13, Ministry of

Communication and Information Technology, Government of India, India Post*As of December 2011, **As of January 2013

As of March 2013, the state had an overall teledensity of60.2 per cent.

According to the Telecom Regulatory Authority of India(TRAI), Odisha had 24.6 million wireless connections and374,427 wire-line subscribers, as of March 2013.

There were 1,158 telephone exchanges in the state as ofDecember 2011.

Major telecom operators in Odisha

Bharat Sanchar Nigam Limited (BSNL)

Bharti Airtel

Vodafone Essar

Reliance Communications

IDEA Cellular

Aircel Limited

Tata Teleservices


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Under the JNNURM, five projects costing US$ 149.5 million have been approved for Bhubaneswar and Puri, and US$ 60.8million had been released as of March 2013.

The projects have been sanctioned between 2006-07 and 2009-10. Some of the key areas of development are water supply,storm water drainage, sewerage systems and urban renewal.

Under UIDSSMT, 11 water supply projects are being implemented.

The project Integrated Sewerage System for BhubaneswarCity has been sanctioned for an estimated cost of US$ 165.5million.

Odisha has relatively abundant water supply, endowed with approximately 11.0 per cent of the countrys water resources.

The Bhubaneswar city gets 250 MLD pipe water supply, including 200 MLD from surface sources and 50 MLD from ground.

Sources: JNNURM, Ministry of Urban Development, Government of IndiaNote: UIDSSMT: Urban Infrastructure Development Scheme for Small and Medium Towns

Note: JNNURM Jawaharlal Nehru National Urban Renewal MissionMLD Million litres per day


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Contract authority ProjectInvestment

(US$ million)PPP type Status

Education

Industry Science and Technology Department,

Odisha

Biotech park atAndharua,

Bhubaneswar

20.2 BOOT Under construction

Ports

Department of Commerce & Transport, Odisha Dhamra Port 536.7 BOOST Under operation

Department of Commerce & Transport, OdishaKirtania Port at themouth of the river

Subarnarekha434.8 BOOST Under construction

Roads

National Highways Authority of India (NHAI)Chandikhole-

Jagatpur-Bhubaneswar

220.9 BOT-Toll Under construction

Source: pppindiadatabase.comBOOT: Build-Own-Operate-Transfer, BOOST: Build-Own-Operate-Share-Transfer, BOT: Build-Own-Transfer


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Contract authority ProjectInvestment

(US$ million)PPP type Status

Railways

Odisha Industrial Infrastructure DevelopmentCorporation (IDCO)

Haridaspur-Paradeepbroad-gauge rail link

129.1 DBFOT Under construction

Urban Development

Housing and Urban Development Department

Housing-cum-commercial complex

Patrapada andRanasinghpur

130.4 DBFOT Bidding

Orissa Industrial Infrastructure DevelopmentCorporation (IDCO)

Info-Park atBhubaneswar

108.7 BOOT Under construction

Source: pppindiadatabase.comBOOT: Build-Own-Operate-Transfer, DBFOT: Design-Build-Finance-Operate-Transfer


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Sources: www.sezindia.nic.in

Odisha had 10 formally approved SEZs, as of March 2013.

The state has one operational IT/ITeS SEZ inBhubaneswar, as of January 2013.

IDCO is the main developer for forty per cent of the formallyapproved SEZs.

The state has 86 industrial estates.

As of March 2013, five SEZs had been notified in the state.

Formally approved SEZs

Industry Location SEZs (No)

IT/ITeSKhurda, Jatni,Bhubaneswar

4

Mineral-based SEZ Ganjam 1

AluminiumSambalpur,Jharsuguda

2

Metal-based SEZ Jajpur 1

Multi-product Ganjam 1

Solar Cuttack 1

Note: IDCO Odisha Industrial Infrastructure Development Corporation


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Formally approved SEZ


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Educational infrastructure (201011)

Medical colleges 7^

Dental colleges 4

Engineering colleges 101

MCA colleges 60MBA colleges 71

Polytechnics/Engineering schools 90

Universities 16*

Colleges 1,100

As of 2010-11, the state had four dental colleges, 101engineering colleges, 60 MCA colleges, 71 MBA collegesand 90 polytechnics/engineering schools.

As of November 2012, the state had seven medicalcolleges.

The major universities in the state are Utkal University andBiju Patnaik University of Technology; and popular collegesare Orissa Engineering College and Sriram Chandra BhanjMedical College.

The state is also home to premier institutions such asNational Institute of Technology (NIT) Rourkela, XavierInstitute of Management, and National Institute of ScienceEducation and Research.

Source: Economic Survey of Odisha, 2012-13,University Grants Commission, Medical Council of India

MCA: Master of Computer ApplicationsMBA: Master of Business Administration

^As of November 2012*As of August 2011


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Source: Census 2011 (provisional data)

Odisha has a literacy rate of 73.5 per cent according to theprovisional data of Census 2011; the male literacy rate is82.4 per cent and the female literacy rate is 64.4 per cent.

The states industrial policy aims to improve technicalmanpower and upgrade skills of local entrepreneurs.

In 2011-12, Odisha had around 55,106 primary schools withover 4.43 million students.

As per Budget 2013-14, US$ 92 million would be providedto Odishas government under the SSA programme toachieve the constitutional goal of universalisation ofelementary education.

Note: SSA: Sarva Siksha Abhiyan

Literacy rates (%)

Literacy rate 73.5

Male literacy 82.4

Female literacy 64.4

Odisha primary education statistics (2011-12)

Number of schools

Primary: 55,106

Upper primary: 23,239

High schools: 8,280

School-dropout rate (%)Primary: 0.43

Upper primary: 3.07

Pupil-teacher ratioPrimary: 30:1

Upper primary: 39:1

Net-enrolment ratio inschools (%)

Primary: 93.27

Upper primary: 90.84

Source: Economic Survey of Odisha, 2012-13


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Sources: Central Bureau of Health Intelligence, Government of India,Sample Registration System (SRS) Bulletin October 2012,

(www.censusindia.gov.in)*Per thousand persons

**Per thousand live births^As of March 2012

Health indicators (2012)

Population served per governmenthospital bed

1,435^

Birth rate* 20.1

Death rate* 8.5

Infant mortality rate** 57

Life expectancy at birth (year)

Male (2002-06) 59.5

Female (2002-06) 59.6

As of March 2012, the state had 3,569 allopathic medicalinstitutions, including 1,944 medical institutions in the publicsector and 1,625 in the private sector.

As of March 2012, the state had 16,537 beds in governmentmedical institutions.

As of March 2012, there were 140 hospitals, 378 communityhealth centres, and 1,227 primary health centres under thepublic sector.

Health infrastructure (201112)

Government hospitals 140

Community health centres 378

Primary health centres 1,227

Sub-centres 6,688

Source: Economic Survey of Odisha, 201213


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NUHM: National Urban Health Mission; PPP: Public-Private Partnership

The Panchabyadhi Scheme, introduced by the state government in 2001, has provisions for free and guaranteed treatment ofmalaria, leprosy, diarrhoea, acute respiratory infections and scabies in all health centres.

The first ever workshop of state health secretaries on NUHM, with the spotlight on the state's public-private partnership in thehealth sector, was held at New Delhi in May 2013. At the workshop, the PPP guidelines for urban slum health projects inseven cities in Odisha were distributed as models, which can be adopted by other states as well.

In the budget estimate for the 2012-13, US$ 331 million has been allocated for the sectors development.

The 2013-14 Annual State Plan ceiling for the sectors development has been set at US$ 102 million.

Some initiatives proposed under the 12th Annual Plan are:

To strengthen district hospitals in terms of both equipment and staffing for a wide range of secondary care services aswell as some tertiary level services.

To link new medical and nursing colleges to district hospitals in underserved states and districts; districts with apopulation of 2.5 million and above should be prioritised for the establishment of such colleges.

New programmes for developing mid-level health workers and nurse-practitioners (which have been introduced insome states) must be similarly linked to district hospitals and their attached district knowledge centres.


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There are sports stadiums in Bhubaneswar, Cuttack, and other cities. Badminton, cricket, hockey, tennis, table tennis andvolleyball are the major sports although, other games are also popular.

The Dharani Dhar sports complex was inaugurated in Keonjhar district, in December 2009.

The main sports arenas are the Barabati Stadium and Jawaharlal Indoor Stadium in Cuttack, the Biju Patnaik SwimmingPool-cum-Sports Complex and the Kalinga Stadium in Bhubaneswar, a sports complex in Berhampur, and a synthetic hockey

surface stadium in Rourkela.

The key hotels in Bhubaneswar are the Trident Hilton, Kalinga Ashoka and Swosti Plaza. In Cuttack, the key hotels are theAkbari Continental and Hotel Bishal, while Mayfair Beach Resorts and Panthanivas Puri are the most popular hotels in Puri.

The Utkal Art Gallery was set up by the state government in Bhubaneswar in 2007.

Puri is a beach city famous for hosting the annual temple festival, or the Rath Yatra, which draws a large number of religioustourists.

The state is home to several famous temples, such as the Lingaraj temple and the Kedareshwar temple in Bhubaneswar,Jagannath temple and Gundicha temple in Puri and the Sun temple in Konark.

Odissi is the major dance form of the state.

The 201314 Annual State Plan ceiling for the sectors development has been set at US$ 21 million.


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As a part of the state government-enacted Orissa Industries(Facilitation) Act, 2004, a single-window clearance systemwas implemented in the state. This was done with the aimof facilitating the growth of industries and creating anattractive environment for both domestic and internationalinvestments.

The Government of India has identified locations such asDuburi, Chhatrapur, Kalinga Nagar (Bhubaneswar),Jharsuguda and Kesinga as GrowthCentres.

A biopharma IT park at Bhubaneswar is being establishedunder the public private partnership (PPP) model over anarea of 64.68 acres land.

IDCO has been entrusted with the responsibility of creating

infrastructure facilities in industrial estates across the state.

The upgradation of industrial infrastructure at KalinganagarIndustrial Complex is being carried out to promote PPPprojects in the state.

Under the IIU scheme, the proposal for developing plastic,polymer and allied clusters at Balasore has been approvedby the Government of India, which has released US$ 3.2

million as the first installment.

IDCO and NALCO have signed an MoU to develop anancillary and downstream aluminium park at Angul over 450acres of land.

A mega food park is being established near Bhubaneswarover 282 acres through the PPP mode. IDCO is the nodalagency for the establishment of this park.

Key industrial zones

Talcher-Angul

Kalinganagar-Duburi

Bhubaneshwar-Khurda

Rayagada-Sunabeda

Gopalpur-Chatrapur

Paradip-JagatsinghpurJharsuguda-Brajarajnagar

Note: IIU Industrial Infrastructure UpgradationIDCO Odisha Industrial Infrastructure Development Corporation

NALCO National Aluminium Company LimitedMoU Memorandum of Understanding


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Industrial zones Description

Infocity

The IT park is spread over 350 acres in Bhubaneswar and has IT companiessuch as Infosys, Wipro, TCS and MindTree. Equipped with moderninfrastructure including a nine-hole golf course, it is one of the biggest IT parksin eastern India. Infocity-II is projected to be spread over 500 acres at Janla.

Fortune Tower

It has a built-up space of 350,000 sq ft in a hi-tech steel and glass structure

equipped with high-speed connectivity in Bhubaneswar and is home to anumber of IT companies.

Industrial Infrastructure DevelopmentCorporation (IDCO) Tower

It is a strategically located, 11-storeyed business centre in Bhubaneswar andhas a number of IT/ITeS companies.

Special economic zones (SEZs)

The Chandaka Industrial Estate in Khurda is an IT/ITeS SEZ developed by theOrissa Industrial Development Corporation. Nine more SEZs have been givenformal approval and five had been notified by the Government of India.

Technology parks The Software Technology Parks of India (STPI) has developed software

technology parks at Bhubaneswar, Rourkela and Berhampur.

Mega food park

The state government is planning to establish a mega food park nearBhubaneswar over 282 acres in PPP mode. Odisha Industrial InfrastructureDevelopment Corporation (IDCO) is the nodal agency for establishment of thepark.


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Category MSME units (No)

Repairing & services 38,878

Food & allied sector 25,683

Engineering & metal 12,919

Textiles 8,608Glass & ceramics 8,495

Forest & wood based 7,030

Miscellaneous manufacturing 6,459

Paper & paper products 2,982

Chemical & allied sectors 2,910

Rubber & plastics 1,792

Electrical & electronics 1,154

Livestock & leather 451

Sources: Economic Survey of Odisha, 201213MSME: Micro, Small and Medium Enterprises


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Odishas industries are based mainly on the naturalresources available in the state.

Forest-based products provide livelihood to a large sectionof the population of the state. Agriculture and allied sectorshave provided employment, directly or indirectly, to morethan 60.0 per cent of the state's total workforce.

The state has significant reserves of iron ore, bauxite, nickel,coal, etc. Hence, it is an attractive destination for mineral-based industries.

The state is one of the top producers of aluminium in thecountry, both in terms of production capacity as well asactual production.

In 2011-12, around 5,505 medium- and small-scale unitswere established in the state.

By the end of 2011-12, the state government had signedMoUs with 94 reputed investors across sectors forinvestments of around US$ 85 billion to set up industries invarious sectors, such as steel, aluminium and cement.

Key industries in Odisha

Iron and steel, and ferroalloy

Aluminium

Handloom

Agro-based industry

Mining

IT/ITeS

Electronics

Tourism

Medium and small scale units (2011-12)

Units (No) 117,361

Investments made (US$ million) 92.2

Sources: Economic Survey of Odisha, 2012-13


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Odisha is one of the largest producers of iron and steel in the country.

The state accounts for about 25.0 per cent of all the iron-ore deposits in India, thus making it one of the favoured investmentdestinations for domestic and international iron and steel players.

Odisha has substantial reserves of other minerals that go into steel making such as coal, dolomite and limestone.

In addition, there are abundant water resources, adequate power, a reasonably good road and rail connectivity and portfacilities at Paradeep, Gopalpur and Behrabalpur (Baleshwar).

Iron ore (hematite) is found in Dhenkanal, Jajpur, Keonjhar, Koraput, Mayurbhanj, Sambalpur & Sundergarh districts and ironore (magnetite) occurs in Mayurbhanj district in the state.

ArcelorMittal has proposed to set up a 12 million tonnes per annum steel plant in the state for an investment of US$ 7.4billion.

Around 50 MoUs have been signed with various steel promoters for investments of up to US$ 42.4 billion and an estimatedproduction of 83.66 MTPA.

Of the 50 MoUs, 30 projects have started partial production with an investment of US$ 14.8 billion, achieving aproduction capacity of 12.66 MTPA of steel and 11.45 MTPA of sponge iron.

Employment to 27,690 persons directly and 60,390 persons indirectly through these industries.

The 2013-14 Annual State Plan ceiling for the sectors development has been set at US$ 3.55 million.

MTPA: Million tonnes per annum


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Key players

Tata Steel

POSCO India Pvt Ltd

Established in 1907, Tata Steel is Asia's first and one of India's largest private sector steelcompanies. It recorded revenues of US$ 7.03 billion in 2012-13.

It is amongst the lowest-cost producers of steel in the world and one of the few select steelcompanies in the world that have a positive Economic Value Added (EVA+). The company has acrude-steel production capacity of over 30 MTPA. It is planning to set up a new steel plant forover US$ 7.3 billion in Kalinganagar (Jajpur district) and preliminary work is in progress. The plant

will have an annual production capacity of 6 million tonnes. Tata Steel is also in a joint venturewith L&T to set up a deep-water port at Dhamra for handling bulk cargo, with a total capacity ofover 83 million tonnes. The port commenced its commercial operations from May 2011.

A subsidiary of the Korean company POSCO, which is among the worlds top five steelproducers, POSCO India plans to set up a 12 million tonnes per annum green field project in theJagatsinghpur district of Odisha. The plants first phase will be completed in 2016-17 and isestimated to cost US$ 12 billion. It will manufacture hot-rolled products and slabs.

Visa Steel Ltd is a subsidiary of VISA Infrastructure Ltd. It produces pig iron, coke and chromeore. In 2012-13, the company recorded revenues of US$ 187.7 million. It has two manufacturingfacilities in Odisha. The plant at Kalinganagar has an annual production capacity of 225,000tonnes of pig iron, 400,000 tonnes of coke, 50,000 tonnes of ferro-chrome and 300,000 tonnes ofsponge iron. The other plant is in Golagaon, with a chrome-ore beneficiation and grinding plant,each with a capacity of 100,000 tonnes per annum. The company is operating a 0.5 million tonper annum (TPA) special steel plant at Kalinganagar industrial complex.

Visa Steel Ltd

Essar Steel is a global producer of steel and is present in India, Canada, the US, Middle East andAsia. Its revenues in 2011-12 were US$ 2.15 billion and it has a capacity of 14 million tonnes perannum (MTPA) of steel. It is making significant investments in setting up steel plants across theworld; one among these is the 12 MTPA integrated steel plant at Paradeep in Odisha.

Essar Steel


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Odisha ranks first in India in terms of both production capacity and actual output of aluminium.

Odisha has around 52.0 per cent of the bauxite reserves of India, making it an ideal location for setting up aluminium andaluminium-based companies.

It also has adequate water and power supply for such industries.

Some of the biggest companies in the aluminium industry including National Aluminium Company Limited, HindalcoIndustries Limited and Vedanta Group have operations in Odisha.

IDCO and NALCO have signed an MoU to develop an ancillary and downstream aluminium park at Angul over 450 acres ofland, close to NALCOs smelter plant. Around 65 acres of government land have been taken as advance possession.

MTPA: Million tonnes per annumNALCO: National Aluminium Company Limited


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Key players

National Aluminium Co Ltd

(NALCO)

Hindalco Industries Ltd

(HIL)

NALCO is among Asia's largest and one of the world's leading integrated aluminium complexes.Its operations include bauxite mining, alumina refining, aluminium smelting and casting, powergeneration, rail and port management. The company had revenues of US$ 1.27 billion in 2012-13. It employs some of the worlds finest technologies used in the aluminium industry. NALCO issetting up an aluminium park in Angul in a joint venture with IDCO. The company is also planninga green field project in Jharsuguda for a smelting and power complex of 500,000 tonne capacity,

with an investment of US$ 1.8 billion.

With a turnover of US$ 4.75 billion in 2012-13, HIL is owned by the Aditya Birla Group and isamong the world's largest aluminium rolling companies and one of the biggest producers ofprimary aluminium in Asia. It acquired the Indian Aluminium Company Limited (Indal) in 2000. HILproduces 161,400 tonnes per annum (TPA) of aluminium from its plant at Hirakud.

Vedanta Resources plc, the London-based holding company of the Sterlite group, is a key playerin the aluminium industry in India. The company recorded revenues of US$ 15 billion in 2012-13.Vedanta operates several bauxite mines. It produces aluminium from its Bharat AluminiumCompany Limited (BALCO) and Madras Aluminium Company Limited (MALCO). The companyoperates its aluminium refinery at Lanjigarh in Kalahandi. It has a capacity of 1 MTPA. Thecompany is in process of 1.25 MTPA aluminium smelter expansion at Jharsuguda.

Vedanta Group


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Odishas SSI is characterised by low capital investmentrequirement, low gestation periods, high value addition andhigh export promotion prospects.

The Odisha State Cooperative Handicrafts Corporation isengaged in strengthening the production base, enlargingmarketing opportunities, encouraging exporters andintroducing new designs and technology in the handicraftssector.

In order to strengthen the artisan-based enterprises in thehandicrafts sector, 19 handicraft training centres arefunctioning in different districts.

Source:Economic Survey of Odisha, 2012-13MSME: Micro, Small and Medium Enterprises

SSI Small Scale Industries

Cumulative no of MSME units establishedsince 2001-02 (000)

70

74 7983 88

9297

102 107112

117

2001-02

2002-03

2004-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12


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The following are some of the initiatives taken by the government during 2011-12 for the sectors development:

Under the Rehabilitation of Handicraft Artisans scheme, US$ 0.12 million margin money provided to 1,407 artisans toset up their own units

Under the Clusters Development Programme, 31 clusters covering 1,144 artisans of 77 SHGs have been assisted

Under the Skills Training Programme, training of 569 trainees completed at different handicraft training centres

Trained 225 artisans under the Master Craftsman Training Programme and 60 artisans under the GurusishyaParampara

901 artisans participated in 18 district level and six state level exhibitions used for marketing assistance with a salesturnover of US$ 0.78 million

42 foreign buyers and buying agents participated in international handicraft and handloom fairs, in which orders worthUS$ 0.52 million were generated

Financial assistance amounting to US$ 0.02 million sanctioned in favour of four handicraft co-operative societies forthe construction of work sheds and revolving fund



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Handicraft and cottage industry in Odisha

YearNo of units established

during the yearInvestment (US$ million)

Employment generated(Number of persons)

2002-03 25,041 13.6 39,528

2003-04 23,287 15.1 39,743

2004-05 18,277 10.8 30,052

2005-06 13,363 8.9 22,734

2006-07 13,063 11.8 20,605

2007-08 9,011 9.5 15,368

2008-09 9,294 7.6 16,279

2009-10 14,539 7.9 28,305

2010-11 7,596 5.8 12,431

2011-12 7,293 6.3 9,187

Source:Economic Survey of Odisha, 2012-13


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Odisha's main agriculture products are rice, pulses, oilseeds, vegetables, groundnut, cotton, jute, coconut, spices, sugarcane,potato and fruits.

During 2011-12, around 382,930 hectares (ha) was under fruit cultivation and 3,75 million coconuts were produced. In 2010-11, coconuts were cultivated over an area of around 53,250 ha.

There is a vast scope for agro-based industries for rice, lentils, edible oil-milling, dehydration of vegetables, maize-milling,

cattle and poultry rearing, cotton oil, potato chips, coconut oil, sugar mills, mushroom cultivation, non-edible oils and others.

The agricultural sector contributed about 17.49 per cent to the states GSDP in 2012-13.

The Jalanidhi programme, which is being implemented in the state, encourages farmers to create captive irrigation sourcesthrough shallow tube wells, bore wells, dug wells, and river lift/surface lift projects. The state government has tied up fundingwith NABARD to provide subsidies under this programme.

The Mega Lift Scheme was launched during 2011-12 to provide irrigation to farmers in upland areas by lifting water from

rivers.

There has been a significant improvement in the use of fertilisers in the state. Fertiliser usage increased 52 per cent from41.00 kg/ha in 2001-02 to 62.19 kg/ha in 2011-12.

The 2013-14 Annual State Plan ceiling for the sectors development has been set at US$ 243 million.


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Key players

Sakthi Sugars Ltd

Aska CooperativeSugar Industries Ltd

One of the largest white crystal sugar producers in India, Sakthi Sugars has a total capacity tocrush 19,000 tonnes of sugarcane a day. The company has facilities in both Tamil Nadu andOdisha, the Odisha plant of the company is situated in Dhenkanal district. The company recordedUS$ 421.6 million of revenues in 2012-13.

Established in 1963, Aska is one of the oldest sugar mills in the state, located in Aska town of theGanjam district. The cooperative provides livelihood to 20,000 sugarcane growers in the area.The plant has a capacity to crush 2,500 tonnes per day. It has a distillery and an ancillary unitproducing 10,000 bulk litres of rectified spirit utilising molasses, the organic by-product of thesugar unit.

PPL was incorporated in 1981 as a joint venture between the Government of India and theRepublic of Nauru. In 2011-12, it had revenues of US$ 984.2 million. It is a prime player in thephosphoric fertilisers space. These fertilisers have applications for a wide range of crops. It has adi-ammonium phosphate plant in Paradeep, which has an annual capacity of 720,000 tonnes.

Paradeep Phosphates

Ltd (PPL)


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Odisha is one of Indias richest states in terms of mineralreserves.

The mineral belt is spread over an area of more than 6,000sq km.

The key minerals found in the state are iron, coal, bauxite,

manganese, nickel, chromite, limestone, dolomite, graphite,decorative stones, beach sand, china clay, tin ore, etc.

Within the state, coal constitutes 88 per cent of all mineraldeposits, followed by iron ore and bauxite.

Of the 600 mining leases in 2011-12, 128 were operational.

Odisha Mining Corporation and the Directorate of Mines

have identified 52 gem belts with 16 mining blocks in thewestern districts of the state.

A sophisticated gemstone laboratory has been set up atBhubaneswar with assistance from UNDP.

Source:Economic Survey of Odisha, 2012-13

Total exports of minerals and ores (million tonnes)

14.6316.20

28.62 26.28

15.59

24.76

13.49

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

Mineral resources as a percentage of India's

natural reserves/resources (2011-12)Iron-ore 33

Bauxite 55

Nickel ore 92

Chromite 95

Coal 27

Source

:

Report on Annual Plan 2011-12, Government of Orissa


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Key players

Orissa Mining Corporation

Ltd

Mahanadi CoalfieldsLtd (MCL)

OMC was established in 1956 to explore and harness the mineral wealth of Odisha. In 1961, itbecame a state-owned corporation of the Government of Odisha. OMC has reserves of around654.9 million tonnes of iron ore, 6.3 million tonnes of manganese-ore, 25.3 million tonnes ofchromite, 19.6 million tonnes of limestone and other minerals. OMC has 35 mining leases(chromite - 11, iron - 11, iron & manganese - 5, manganese - 3, limestone - 1 and gemstone - 4).

MCL is a subsidiary of Coal India Limited and was formed in April 1992. It has two coalfields atTalcher & IB Valley in Odisha. The total raw coal production at MCL in 2011-12 was 103.12million tonnes against 100.28 million tonnes in 2010-11. The company expects to achieve itstargeted coal production of 112 million tonnes in 2012-13.The company employs around 22,023people. It has improved overall productivity with the output per man-shift of the companyincreasing from 14.6 tonnes in 2009-10 to 15.36 tonnes in 2011-12.

Rungta Mines Limited is the flagship company of the S R Rungta Group. The companyspecialises in mining iron-ore and manganese ore. it is also involved in mining of limestone,dolomite, fireclay and bauxite. In August 2009, the company announced plans to set up a one

million tonne cement plant in Odisha, which will involve an investment of US$ 126.5 million.

Rungta Mines Ltd

Founded in 1955, FACOR is one of the largest producers and exporters of high-carbon ferro-chrome and charge-chrome in the world. The company has a large chrome ore mining complex inBhadrak, which has the capacity to produce 65,000 tonnes per annum of charge-chrome and250,000 tonnes per annum of chrome ore. It recorded revenues of US$ 98.55 million in 2012-13.

Ferro Alloys Corp Ltd

(FACOR)


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The IT sector is dominated by over 300 SMEs.

The sector employs about 12,000 software professionals.

The state has an ample talent pool to cater to the needs of this industry. It produces 40,000 technical and managementprofessionals and 50,000 general graduates every year.

Odisha exported software (made by registered units through STPI) worth US$ 275.0 million in 2010-11.

Software exports from the state had been targeted at around US$ 386 million in 2012-13.

Two software technology parks one each in Bhubaneswar and Rourkela are in operation. Their presence has led to moreefficient deployment of information technology in the private sector, as the units operating under this scheme enjoy variousbenefits such as single-window clearance, duty free imports and permission for 100% foreign equity.

STPI: Software Technology Parks of India,SME: Small and Medium Enterprises


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The following were the major activities by the State Information Technology (IT) department in 2011-12:

National E-Governance Plan for delivery of web-enabled anytime/anywhere access to information and services inrural India.

The infrastructural work of SDC, which would be set up at state headquarters, was completed and inaugurated inNovember 2011.

The implementation of various schemes, such as e-Procurement, e-Registration, e-Municipality, e-District, and e-Despatch has been initiated.

The government has approved an estimated US$ 5.33 million for the construction of an IT tower named OCACIncubation Tower adjacent to the existing OCAC Building in Bhubaneswar.

The modernisation of record rooms in tehsils has been started, and the delivery of hardware, furniture, and otheraccessories and training to tehsil staff has been completed.


In order to attract ICT investments, the centre is considering a mega project in Bhubaneswar, Odisha.

Note: ICT - Information & Communication TechnologySDC Software Data Centre

OCAC - Odisha Computer Application Centre


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Key players

Infosys Ltd

Tata Consultancy

Services (TCS)

Infosys was set up in 1981. The company recorded revenues of US$ 7.40 billion in 2012-13. It haspresence in the areas of IT consulting, modular global sourcing, process re-engineering and BPOservices. The company has international operations in countries such as Australia, China, Japan, UK,Germany, the US and marketing and technological alliances with Informatica, IBM, HP, Microsoft,Oracle, etc.

As of March 2013, the company had an employee strength of 156,000 globally. In Odisha, it has aworld-class development centre at Bhubaneswar. It has been in Odisha for over a decade, now. The

development centre at Bhubaneswar anchors Infosys relationships with clients from Canada, Europeand North America.

TCS is among the leading Indian IT services, business solutions and outsourcing companies. It hadrevenues of US$ 11.60 billion in 2012-13. TCS employs over 238,583 people worldwide with apresence in 42 countries. It has operations in Odisha (in Bhubaneswar) since 2001.

Established in 1945, the company had revenues of US$ 10.44 billion in 2012-13. It has presence in theareas of IT services, product engineering, technology infrastructure services, BPO and other consultingsolutions.

The company provides services such as application development, deployment and maintenance,business intelligence and customer relationship management (CRM). The company is based inBengaluru, and has 72 plus development centres and 50 plus industry specific centres ofexcellence inover 54 countries. In February 2008, the company set up a development centre in Bhubaneswar.

Wipro Ltd

Established in 2001, Orisys Infotech is a software development company, which offers services fromsystem applications to business application development. It is involved in a variety of services, such assoftware development, web solutions, e-commerce, multimedia and search engine optimisation. Thecompany is based in Bhubaneswar.

Orisys Infotech Pvt Ltd


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Odisha has vast potential for the development of tourism. Itis one of the critical sectors of the state economy in terms offoreign exchange earnings as well employment generationopportunities.

The National Geographic Traveler magazine has namedOdisha in its 50 Tours of a Lifetime list in the 2013 edition.

About 92,206 individuals are directly engaged and 276,618persons are indirectly engaged in this sector in Odisha.

Bhubaneswar, the capital city of the state, is known as thetemple city of India and is home to about 500 temples. Puri,Bhubaneswar and Konark are the main centres for religioustourism.

The tourist inflow in the state increased from 7.82 million in2010-11 to 8.53 million in 2011-12, representing a growth ofaround 9.1 per cent.

The states tourism revenue has been estimated at US$ 820million for 2011-12, an increase of 9.4 per cent over 2010-11.

Source:Economic Survey of Odisha, 2012-13;

Tourism report 2011-12, Government of Odisha

Total number of hotels

Total tourist arrivals in Odisha (millions)

817 829 860905 934

1,153 1,202

1,232 1,276 1,326 1,328

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

6.3 6.57.2

7.8 8.5

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012


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The states eco-tourism destinations include spots outside sanctuaries and national parks.

A new scheme for developing eco-tourism was introduced in 2009-10, and US$ 0.15 million was spent to develop Anjar inKeonjhar district, Ansupa in Cuttack district and Sidhamula in Nayagarh district as eco-tourism destinations.

During 2010-11, eco-tourism infrastructure was developed at Mahavinayak in Jajpur district and Nrusinghnath in Bargarhdistrict.

During 2011-12, development projects for Olasuni near Chandikhol in Jajpur district, Machhabandha in Mayurbhanj district,and Pakidi Hill of Ghumsur South Division in Ganjam district were implemented with a budget provision of US$ 0.22 million.

In May 2013, Odisha Tourism and Odisha Sangeet Natak Akademi organised National Chhau Dance Festival atBhubaneswar.

Odishas government has identified 329 locations to be developed and promoted as key tourist destinations in the state. Thetourism department aims to promote these places through national and international media.

The 2013-14 Annual State Plan ceiling for the development of tourism and culture in the state has been set at US$ 21.2million.


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High-level clearanceauthority

District-level single-window

clearance authority

Under the chairmanship of

Chief Minister of

Odisha

Chief Secretary

District Collector

Industrial Promotionand Investment

Corporation of Odisha(IPICOL) (Team

Odisha): State-level

Nodal agency

State-level single-windowclearance authority

Investments handled

District Industries

Centre

Greater than US$219.4 million

Between US$10.9 and US$219.4 million

Less than US$

10.9 million


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The government has enacted the Orissa Industries Facilitation Act, 2004, for implementing the single-window clearancesystem for faster and one-point clearance of industrial projects, single-point dissemination of industrial project relatedinformation 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 projectsinvolving investment less than US$ 10.9 million.

The State-level Single-Window Clearance Authority is chaired by the Chief Secretary of the state for projects involvinginvestment of US$ 10.9 million or more, but less than US$ 219.4 million.

A High-level Clearance Authority chaired by the Chief Minister of Odisha examines and considers proposals for industrial andother projects involving investment of US$ 219.4 million or above.


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Agency Description

Industrial Promotion andInvestment Corporation of

Odisha Limited(IPICOL)

IPICOL is a key promotional institution. It was incorporated in 1973 with the mainobjective of accelerating the pace of industrial development by promoting large andmedium scale industries.

In 2010-11, the IPICOL received 83 combined application forms for setting up projectswith an investment of US$ 54.1 billion.

Industrial DevelopmentCorporation of Orissa Limited

(IDCOL)

IDCOL was established in 1962 to promote, establish and run industries in the state.

The corporation, since its inception, has set up 15 industrial units across sectorsincluding cement, ferrochrome, pig iron and spun pipe.

Orissa Industrial

Infrastructure DevelopmentCorporation(IDCO)

IDCO was established with the objective of providing infrastructure assistance for rapidestablishment and orderly growth of industry in Odisha.

The corporation is engaged in multiple activities that foster rapid industrialisation in thestate by developing industrial infrastructure.

In 2010-11, IDCO allotted 335 acres of land and sheds to 174 small and medium units invarious industrial estates/areas across the state.


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Agency Description

Agricultural Promotion andInvestment Corporation of

Odisha Limited(APICOL)

APICOLs aim is to strengthen the rural economy by providing financial support forpromotion and development of agro-based and food-processing industries.

APICOL provides subsidy to the agro-processing and food-processing units in the state.

In 2009-10, the corporation promoted 52 commercial agro-enterprises with an aggregate

investment of about US$ 474,440.

Orissa State FinancialCorporation

(OSFC)

OSFC is a premier state-level financial institution that was established in 1956 to cater tothe needs of industrial development in the state.

It provides financial assistance to small and medium scale industries in consortium withstate-level financial institutions.

Besides, the corporation also receives financial assistance from the state and centralgovernments, and provides soft loans and margin money for rehabilitation of sick

industrial units.

Orissa PiscicultureDevelopment Corporation

Limited(OPDC)

OPDC is the only public sector undertaking in the fishery sub-sector and aims at carryingon business in pisciculture in brackish water areas, freshwater ponds and other watersources.

It has launched a number of projects such as supplying fishnet, fuel and fish seeds forthe economic development of fishermen.


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Agency Description

Directorate of ExportPromotion & Marketing

(DEPM)

DEPM has been set up to promote export of goods from Odisha and to providemarketing assistance to SSI units of the state.

It disseminates market intelligence, oversees enquiries related to tenders and trade fromexisting and potential exporters and entrepreneurs.

It provides guidance in export processing, pricing of export items and on differentincentives for exports, granted by the Government of India.

Odisha Small IndustriesCorporation Ltd

(OSIC)

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

The corporation has been extending help for marketing support, financial assistance onpurchase of raw materials, providing sub-contracting opportunities in the constructionsectors and also rendering various other services to SSI units.

The Orissa State CooperativeHandicrafts Corporation

(OSCHC)

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


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Agency Description

Orissa State ElectronicsDevelopment Corporation

(OSEDC)

OSEDC was established in 1981 as the nodal organisation in the state for promotion ofelectronic industries, both in hardware and software.

Grid Corporation of IndiaLimited (GRIDCO)

GRIDCO is a Government of Odisha undertaking and was incorporated in April 1995 forpower transmission.

In 2005, GRIDCOs transmission-related activities were transferred to Orissa PowerTransmission Corporation.

Now, GRIDCO is a trading company and is involved in the bulk sale of power to the fourpower distribution companies in Odisha. It also trades surplus power with neighboringstates.

Orissa State Pollution ControlBoard

(OSPCB)

OSPCB is responsible for managing hazardous waste, bio-medical waste, municipalsolid-waste, recycled plastics, batteries as well as manufacture, storage and import of

hazardous chemicals.

Its functions are broadly classified under areas such as enforcement, advisory,monitoring, research and facilitation.


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Agency Contact information

Department of Industries

Killa Maidan, Cuttack-753 001Phone: 91-0674-2536640

Fax: 91-0674-2536819E-mail: [email protected]

Website: http://www.orissa.gov.in/industries/index.htm

Industrial Promotion and Investment Corporation of OdishaLimited (IPICOL)

IPICOL House, Janpath, Bhubaneswar-751 022Phone: 91-0674-2542 601

Fax: 91-0674-2543 766E-mail: [email protected]

Website: http://www.ipicolorissa.com/


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Approvals/Clearances required Departments to be consulted

Incorporation of company Registrar of Companies

Registration/Industrial License/Industrial EntrepreneursMemorandum (IEM)

District Industries Centres for SSI, Secretariat for Industrial Assistance(Government of India) for Large and Medium Industries

Allotment of land Industrial Infrastructure Development Corporation (IDCO)

Permission for land use(In case industry is located outside an industrial area)

a) IDCOb) Department of Town and Country Planningc) Local authority/District Collector

No-objection Certificate (NOC) and consent underWater and Air Pollution Control Act

Orissa State Pollution Control Board (OSPCB)

Forest and environment clearance Ministry of Forest & Environment, Government of India

Approval of construction activity and building plan Concerned Development Authority

Sanction of electricityDistribution Companies- CESU, NESCO, SOUTHCO, WESCOTransmission Company- Orissa Power Transmission Corporation Limited (OPTCL)

Water supply Department of Water Resources

Factory and boiler clearance Chief Inspector of Factories and Boilers

FinanceOrissa State Financial Corporation(OSFC), IPICOL, Commercial Banks such asIDBI, ICICI, State Bank of India, etc.

Orissa Value Added Tax (VAT) Act, and Central andState Excise Act

Commercial Tax Department and Central and State Excise Department


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Cost parameter Cost estimate

Industrial land (per sq ft) US$ 2 to US$ 15

Office space rent (per sq ft per month) US$ 0.2 to US$ 2

Residential rent (for a 2,000 sq ft house, per month) US$ 200 to US$ 400

Five-star hotel room (per night) US$ 200 to US$ 450Power cost (per kwh) Industries: US 7.4 cents to US 10.4 cents

Labour cost (minimum wage per day)Unskilled: US$ 1.7Skilled: US$ 2.1

Sources: Ministry of Labour and Employment, Government of India, Industry sources


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Orissa Micro, Small, and Medium Enterprises (MSME) Development Policy 2009

To enhance contribution of MSMEs in manufacturing and services sector ofOdishas economy.

Read more

Objective

Excise Policy 2009-10

To adopt excise duty, fee structure and guidelines for the settlement of excise shops andestablishments.

Read more

Objective

State Agriculture Policy 2008

To bring in a shift from the present level of subsistence agriculture to profitable commercialagriculture so that people would accept agriculture as a vocation.

Read more

Objective
http://www.teamorissa.org/MSME_Dev_Policy_2009.pdfhttp://orissa.gov.in/excise/excise_policy/Excise_Policy2009-10.pdfhttp://orissa.gov.in/e-magazine/orissaannualreference/ORA-2011/pdf/193-212.pdfhttp://orissa.gov.in/e-magazine/orissaannualreference/ORA-2011/pdf/193-212.pdfhttp://orissa.gov.in/excise/excise_policy/Excise_Policy2009-10.pdfhttp://www.teamorissa.org/MSME_Dev_Policy_2009.pdf


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Water Policy 2007

To lay down the principles of equitable and judicious use of water for survival of life, welfare ofhuman beings and sustainable as well as balanced growth of the state.

Read more

Objective

Export Policy 2008 (Draft)

To facilitate rapid and sustainable growth in exports from the state.

To provide a simple, transparent and responsive regulatory environment for unhindered growth inexports.

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Objectives

Industrial Policy Resolution (IPR) 2007

To transform Odisha into a vibrant industrialised state.

To promote orderly and environmentally sustainable industrial growth.

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Objectives
http://www.orissa.gov.in/waterresources/policy/State_Water_Policy_2007.pdfhttp://www.orissa.gov.in/industries/pdf/2009/Draft_%20policy_of_Orissa-FIEO-Er.pdfhttp://orissa.gov.in/e-magazine/orissaannualreference/OR-Annual-2009/pdf/243-264.pdfhttp://orissa.gov.in/e-magazine/orissaannualreference/OR-Annual-2009/pdf/243-264.pdfhttp://www.orissa.gov.in/industries/pdf/2009/Draft_%20policy_of_Orissa-FIEO-Er.pdfhttp://www.orissa.gov.in/waterresources/policy/State_Water_Policy_2007.pdf


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Information & Communication Technology (ICT) Policy 2004

Odishas government would strive to develop a well-planned, robust, and futuristic IT architecturein the state; this would bring about positive changes in all walks of life and society, therebyresulting in ease and convenience in transactions, augmentation of employment opportunities forthe educated youth and initiation of higher economic growth in a definite time frame.

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Objective

Orissa Public Private Partnership (PPP) Policy 2007

To supplement scarce public resources, create a more competitive environment, help improveefficiencies and reduce costs.

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Objective

The State Reservoir Fishery Policy 2004

To introduce systematic and remunerative pisciculture in reservoirs.

To substitute traditional methods by introducing advanced technologies and techniques.

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Objectives
http://ccaorissa.gov.in/ccanew/pdf/ICTPolicyNew.pdfhttp://orissa.gov.in/PPP_Policy%20_2007.pdfhttp://www.orissa.gov.in/fisheries&ard/fisherypolicy.pdfhttp://www.orissa.gov.in/fisheries&ard/fisherypolicy.pdfhttp://orissa.gov.in/PPP_Policy%20_2007.pdfhttp://ccaorissa.gov.in/ccanew/pdf/ICTPolicyNew.pdf


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Average for the year

YearINR equivalent of one

US$

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-10 47.41

2010-11 45.57

2011-12 47.94

2012-13 54.31

Exchange rates


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odisha - august 2013

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