SUN TEMPLE AT KONARK, ODISHA
ODISHA
SCENIC . SERENE . SUBLIME
For updated information, please visit www.ibef.org March 2018 Table of Content
Executive Summary .…………….….…….3
Advantage Odisha ……..………………….5
Vision ……………………………………….6
Odisha – An Introduction …….………..….7
Budget 2017-18 …………..………...……18
Infrastructure Status ...... 19
Business Opportunities ……..………...... 39
Doing Business in Odisha ………….…….66
State Acts & Policies …….……..…...... 67 EXECUTIVE SUMMARY … (1/2)
. The state’s economy witnessed high growth rates between 2011-12 and 2016-17, with GSDP of the state Strong economy growing at a CAGR of 10.71%. Cumulative FDI inflows in the state, during April 2000 to December 2017, amounted to US$ 425 million.
. Odisha has emerged as a key state with regards to the mineral and metal based industries. During 2016-17, Hub for mineral-based total production of minerals in the state was recorded at 264.87 million tonnes as compared to 238.08 million tonnes in 2015-16. The state produced minerals worth US$ 2.99 billion during April 2017 to November 2017. industries 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.
. Odisha is considered to be the aluminium capital of India and is an ideal location for setting up aluminium and Strong bauxite aluminum-based companies. The state has huge reserves of minerals such as bauxite, etc. and houses big multinational companies like Vedanta, Hindalco and Nalco. Bauxite production in the state increased from 9.3 production million tonnes in 2014-15 to 11.99 million tonnes in 2016-17. In April 2017 to November 2017, the production stood at 7.8 million tonnes.
. Odisha is one of the largest producers of iron and steel in the country. Total production of iron ore in Odisha Strong iron and steel was recorded to be 94.2 million tonnes in FY17 and 67.19 million tonnes for the period April-November 2017. sector Being one of the largest producers of iron and steel in India, the state of Odisha is one of the most favoured investment destinations for domestic and international iron and steel players.
Source: Economic Survey of Odisha, CAGR – Compound Annual Growth Rate; GSDP – Gross State Domestic Product
3 ODISHA For updated information, please visit www.ibef.org EXECUTIVE SUMMARY … (2/2)
Strong growth in . The state is home to a large number of MSME units. The state is amongst the top ten states accounting for SSI/MSME units the highest number of MSME enterprises.
. Odisha is the first state in India to have undertaken reform and restructuring initiatives in the power sector. As Strong power sector of February 2018, the state had a total installed power generation capacity of 7,338.36 MW.
Note: SSI – Small Scale Industry, MSME – Micro, Small and Medium Enterprises Source: Ministry of Micro, Small and Medium Enterprises, Central Electrical Authority, Economic Survey of Odisha, Ministry of Tourism
4 ODISHA For updated information, please visit www.ibef.org ADVANTAGE: ODISHA
February March 2014 High economic growth Policy, fiscal incentives and initiatives 2018
. The state’s GSDP grew at a Compound Annual Growth . The state offers a wide range of fiscal and policy Rate (CAGR) of 10.7% between 2011-12 and 2016-17. incentives for businesses under the Industrial Policy Thermal Thermal Resolution, 2007. power . The tertiary sector was the major contributor to the power state’s GSDP with contribution of 43.53% during 2016- . Additionally, the state has sector-specific policies for IT installed installed 17. and micro, small and medium enterprises. capacity: capacity: . The state government has constituted ‘Team Odisha’ 3.87 GW 4.99 GW to help with investment promotion.
Advantage Odisha Rich labour pool Facilitating infrastructure
. The state has a literacy rate of 72.87% which is close . Odisha has a up to date social, physical and industrial to the national average. Owing to strong literacy rate, infrastructure, and the state government has been large number of skilled labors are available in the state. undertaking various infrastructural projects to boost the Hence, providing a boost in making it an ideal infrastructure of the state. destination for the mineral-based industry. . As per state budget 2018-19, US$ 811.24 million has . Furthermore, the state has a large pool of semi-skilled been allocated for the Railway infrastructure and unskilled labour. development which is considered to be the highest allocation to the state.
Source: Economic Survey of Odisha, Central Statistics Office
5 ODISHA For updated information, please visit www.ibef.org ODISHA VISION 2022
. To develop industrial parks with . To improve rural healthcare system, quality infrastructure, to encourage to provide quality emergency micro-enterprises as ancillaries and healthcare facilities, to patronise to pave the way for cost & health insurance, to imbibe health technology orientation by and hygiene content in education encouraging competition. system, etc.
. To enhance the use of . To improve connectivity by Information Technology (IT) increasing road and rail density to ensure transparency and Health Industrial and to improve passenger speed. development services. . To minimize interface between . To provide universal access to Govt. services public and government for power, irrigation and to improve and Infrastructure dealings. urban infrastructure as well. administration Vision 2022 Growth and well- . To protect historical monuments Tourism & culture being . To frame concerted strategies to through proper renovation. address various issues of . To nurture and promote classical unemployment and rural well being. music, dance and literature. Agriculture Education & skill . To bring about growth with equity. development
. To improve the productivity of the sector, to encourage modern . To foster technical and vocational agricultural practices, to bring education and skill development insurance schemes for farmers programmes. against natural disasters, etc. . To establish educational townships.
Source: Confederation of Indian Industry
6 ODISHA For updated information, please visit www.ibef.org ODISHA FACT FILE
. Odisha has 3 major seasons, summer (March to June), monsoon (July-September) & winter (October-February).
Parameters Odisha
Capital Bhubaneswar
Geographical area (lakh sq. km) 155,707
Administrative districts (No) 30
Population density (persons per sq. km) 270
Total population (million) 41.97
Male population (million) 27.1
Source: Maps of India Female population (million) 25.5
. Odisha is located in the eastern region of India. The state shares its Sex ratio (females per 1,000 males) 989 borders with West Bengal in the north-east, Jharkhand in the north, Andhra Pradesh in the south, Chhattisgarh in the west & the Bay of Literacy rate (%) 72.87 Bengal in the east.
. Languages spoken in the state are Oriya & its various dialects, Hindi & English.
. Bhubaneswar, Mayurbhanj, Baleshwar, Khordha & Sundargarh, Ganjam, Cuttack are some of the large cities in terms of population.
Source: Census 2011, Economic Survey of Odisha
7 ODISHA For updated information, please visit www.ibef.org ODISHA IN FIGURES … (1/2)
Parameter Odisha All states Source
Economy 2016-17 2016-17
Directorate of Economics & Statistics of Odisha, Central GSDP as a percentage of all states’ GSDP 3.1 100.0 Statistical Organisation
Directorate of Economics & Statistics of Odisha, Central GSDP growth rate (%) 10.85 11.52 Statistical Organisation
Directorate of Economics & Statistics of Odisha, Central Per capita GSDP (US$) 1,324.6 1,799.9 Statistical Organisation
Physical Infrastructure
Installed power capacity (MW) 7,338.36 334,146.91 Central Electricity Authority, as of February 2018
Telecom Regulatory Authority of India, as of December Wireless subscribers (No) 34,023,044 1,167,435,645 2017 Telecom Regulatory Authority of India, as of September Internet subscribers (No) 9,860,000 429,230,000 2017
NHAI, Roads and Building Department-Government of National highway length (km) 4,838 115,435 India
Major and minor ports (No) 1+2 13+187 India Ports Association 2015
Airports (No) 1 125 Airports Authority of India
8 ODISHA For updated information, please visit www.ibef.org ODISHA IN FIGURES … (2/2)
Parameter Odisha All states Source
Social Indicators
Literacy rate (%) 72.87 73.0 Census, 2011
Birth rate (per 1,000 population) 18.6 20.4 SRS Bulletin
Investment
Department of Industrial Policy & Promotion, April 2000 Cumulative FDI equity inflows (US$ billion) 0.425 368.05 to December 2017
Industrial Infrastructure
DEA , Ministry of Finance, Government of India, July Operational PPP projects (No) 27 1,246 2016 Notified as of December 2017, Ministry of Commerce & Operational SEZs (No) 5 222 Industry, Department of Commerce, December 2017
Source: SRS: Sample Registration System, PPP: Public-Private Partnership, SEZ: Special Economic Zone
9 ODISHA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – GSDP
GSDP of Odisha at current prices (in US$ billion) GSDP per capita at current prices (US$)
CAGR 10.7% CAGR 9.59%
70.0 1,400
60.0 1,200
1,324.6
60.6
50.0 1,000
1,207.1
54.7
1,148.3
51.5
1,050.9
40.0 800
46.7
939.9
41.3
30.0 600 837.7 36.5
20.0 400
10.0 200
0.0 0
2016-17 2011-12 2012-13 2013-14 2014-15 2015-16
2015-16 2011-12 2012-13 2013-14 2014-15 2016-17
. At current prices, Odisha’s total GSDP* was estimated at US$ 60.6 . Odisha’s per capita GSDP* in 2016-17 was estimated at US$ billion during 2016-17. 1,324.6.
. The state’s GSDP grew at a CAGR* of 10.7% between 2011-12 & . Per capita GSDP* of the state grew at a CAGR of 9.59% between 2016-17. 2011-12 and 2016-17.
Note: * Aranca research estimates based on data available from MOSPI, GSDP- Gross State Domestic Product Source: Directorate of Economics & Statistics of Odisha, Central Statistical Organisation
10 ODISHA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – NSDP
NSDP of Odisha at current prices (in US$ billion) NSDP per capita at current prices (US$)
CAGR 10.7% CAGR 9.57% 60.0
1,200
50.0
1,000
1,203.6
53.5
1,092.7
48.0
40.0 1,037.9
45.2 800
951.5
41.0
862.4
30.0 36.8
600 762.1 32.2
20.0 400
10.0 200
0.0 0
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
. Odisha’s total NSDP* was about US$ 53.5 billion during 2016-17. . Odisha’s per capita NSDP* in 2016-17 was US$ 1,203.6 .
. The state’s NSDP* grew at a CAGR of 10.7% between . Per capita NSDP grew at a CAGR of 9.57% between 2011-12 and 2011-12 & 2016-17. 2016-17.
Note: * Aranca research estimates based on data available from MOSPI, NSDP- Net State Domestic Product Source: Directorate of Economics & Statistics of Odisha, Central Statistical Organisation
11 ODISHA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – PERCENTAGE DISTRIBUTION OF GSVA
. In 2016-17, the tertiary sector contributed the most (43.53%) to Gross State Value Added by economic activity at current basic GSVA, followed by secondary (29.2%) and primary (27.27%) prices sectors. 100% . During 2011-12 to 2016-17, the tertiary sector recorded the highest 39.09% CAGR 43.53% CAGR (12.32%), followed by the secondary (8.81%) and primary 90% (7.74%) sectors. 80% 12.32%
70%
60% 30.74% 29.20% 50%
40% 8.81% 30% 30.16% 27.27% 20%
10% 7.74% 0% 2011-12 2016-17
Primary Secondary Tertiary
Source: Directorate of Economics & Statistics of Odisha
12 ODISHA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – AGRICULTURAL PRODUCTION
. Food grain production in the state reached 9,058.8 thousand tonnes Agriculture production in Odisha – ‘000 tonnes (2016-17) in 2016-17. Further, in 2016-17, 1.36 million hectares of land was under cultivation of horticulture crops and the total production in the Rice 8,381.8 state stood at 11.723 million metric tonnes. Wheat 0.5 . Sugarcane production in the state stood at 814.7 thousand tonnes in Fruits 2432.29 2016-17. Vegetables 8760.09 . As per state budget 2017-18, an allocation of US$ 14.91 million was made for continuation of the corpus fund with Odisha State Seeds Flowers 7.24 Corporation, Odisha Agro Industries Corporation and Odisha Aromatic 0.61 Cashew Development Corporation. Spices 201.96 . The state government also proposed to enhance the post-harvest management practices in the state. For enhancement of millet Plantation crops 319.39 production & productivity across tribal areas of the state, the state Honey 1.25 government decided to implement “Special Programme for Millet in Onion 378.58 Tribal Areas” during 2016-17. Coarse Cereals 277.8 . ITC is planning to invest in organic farming and shrimps in Odisha. It is also exploring opportunities in organic cotton farming. Food grains 9,058.8
. As per State budget 2017-18,the state government has proposed the Pulses 398.8 sum of US$ 38.8 million take up micro-irrigation under PMKSY with a State Share of 40%.
Source: Department of Agriculture, Cooperation & Farmers Welfare, Government of India
13 ODISHA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – FDI INFLOWS & INVESTMENTS
. According to the DIPP, cumulative FDI inflows in the state during FDI equity inflows, 2008-09 to 2017-181 (US$ million) April 2000 to December 2017 stood at US$ 425 million. . The state is aiming to facilitate growth in the manufacturing sector 160 with an yearly increase of 15% till 2020. As per the state government 149 investment plans, the contribution of manufacturing sector in the overall GSDP of the state is projected to reach 27% by 2020. 140 . In order to increase the employment opportunities in the state, 120 Odisha government has announced plans to invest US$ 28.69 billion in the manufacturing sector generating nearly 3 lakh job opportunities by 2020. 100 . In line with the Centre's ambitious & flagship ‘Make in India’ initiative 80 to develop the country as a manufacturing hub, the Government of Odisha bagged investment commitments worth US$ 30.54 billion 60 52 during the ‘Make in Odisha’ conclave. 48 . In January 2017, Tata Steel entered into an agreement with 40 Chennai-based - Creative Port Development, at an estimated 28 amount of US$17.85 million, for the proposed development 20 15 12 10 of Subarnarekha Port at Chaumukh village in Balasore district. 9 9 6
. In January 2018, Odisha government approved five investment
0 1 tenders worth US$ 50.66 million in major sectors including
hospitality, food processing and downstream aluminium industry
2014-15 2009-10 2010-11 2011-12 2012-13 2013-14 2015-16 2016-17 2017-18 different sectors in State Level Single Window Clearance Authority 2008-09 (SLWCA) meeting. The move is expected to create employment opportunities for 1674 people. . Gujarat Co-operative Milk Marketing Federation Ltd (Amul) has decided to invest over US$ 77.78 million in the dairy sector of the state, as of November 2017. Note: 2017-181 : Up to December 2017 Source: Department of Industrial Policy & Promotion, Economic Survey of Odisha, News articles
14 ODISHA For updated information, please visit www.ibef.org ECONOMIC SNAPSHOT – EXPORT TRENDS
. According to the Ministry of Commerce & Industry, total exports from Export trends (US$ billion) Odisha in 2016-17 were valued at US$ 6.3 billion. Value exports from the state increased at a CAGR of 8.5% between 2006-07 and 2016- 17 ,as the state witnessed 114% growth in export turnover compared CAGR 8.5% to 2015-2016. 7.0
. The growth has mainly been on account of increase in the value of 6.0 6.3 exports of iron ore (301 %), bulk minerals and ores (311 %), residual chemical and allied products (861 %), iron and steel (104 %), aluminium and products of aluminium (72 %) and petroleum products 5.0
. The state has been a major exporter of both mineral & metallurgical products, which account for around 18.89% & 40.88% of the state’s 4.0 total exports, respectively. 3.7 3.5 3.0 3.4 3.4 . During 2016-17, total exports of seafood products from the state 3.2 3.1 2.9 increased 17% to reach US$ 325.95 million from US$ 278.76 million 2.80 2.7 in 2015-16. In addition, the state government is targeting to ensure 2.0 export of seafood products worth US$ 3.1 billion in 5 years starting 2.0
from 2017-18.The government has forecasted that it may ramp up its 1.0 export turnover to Rs 1 trillion (USD 15.45 billion) by implementing the new export strategy by the end of 2025. 0.0 . The Government of Odisha has recognized various sectors for the
promotion & facilitation of the exports from the state. The sectors that
2010-11 2007-08 2008-09 2009-10 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 have relatively higher preference of the state government are 2006-07 agriculture & processed food products, readymade garments, electronics, IT, engineering goods, arts & crafts & minerals & mineral based products.
Source: Economic Survey of Odisha, Ministry of Commerce and Industry, Government of India, News articles
15 ODISHA For updated information, please visit www.ibef.org ANNUAL BUDGET 2017-18
Annual State Plan ceiling of major departments
Sr No Sector US$ (million) Sr No Sector US$ (million) Agriculture and Farmers’ Empowerment Electronics and Information Technology 1 626.54 13 19.24 Department Department Labour & Employees State Insurance 2 Co-operation Department 165.76 14 19.04 Department 3 Skill Development & Technical Education 128.56 15 Panchayati Raj Department 1,355.81
4 Energy Department 272.07 16 Finance Department 3,438.15 Fisheries and Animal Resources 5 124.52 17 Disaster Management Department 394.32 Development Department Food Supplies and Consumer Welfare 6 160.90 18 Rural Development Department 1,179.42 Department Scheduled Tribes and Scheduled Caste 7 Forest and Environment Department 119.19 19 Development, Minorities and Backward 471.74 Classes Welfare Department 8 General Administration Department 50.63 20 Tourism and Culture Department 46.94 Handlooms, Textiles & Handicrafts 9 32.39 Department 21 Transport Department 64.22
10 Health and Family Welfare Department 910.45 22 Water Resources Department 1,471.95 School & Mass Education and Higher 11 2,217.16 Education 23 Women and Child Development Department 461.05 Housing and Urban Development 12 716.42 Department 24 Works Department 794.29
Source: Government of Odisha, Finance Department
16 ODISHA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – ROADS
. Odisha has around 254,845.32 km of roads, including 4,855.51 km of national highways & 4,148.82 km of state highways.
. The state is well connected to its neighbouring states & other parts of India through 41 national highways. The state had a road density of 164 km per 100 square km of area.
. In March 2018, Bhubaneshwar Smart City Limited (BSCL) participated in an investment meet at NITI Aayog to attract investments for its integrated multi utilities project. The project includes components such as 24X7 water supply, storm water drainage, solid waste management, round the clock power supply, road and pavement works, tree plantation and smart street lighting and is expected to cost nearly Rs 370 crore (US$ 57.15 million)
. The Ministry of Road Transport and Highways has given approval for the rehabilitation and upgradation of two road stretches in the State of Odisha. The 53.79 km stretch of NH-59 from 173/370 km to 229/400 km is to be widened to two lanes at a total cost of about Rs 214.23 crore (US$ 331.05 million). Source: Maps of India . 2017-18 Budget highlights:
• US$ 794.29 million has been proposed for the maintenance of Road type Road length (km) (as of 2015-16) roads, public building and bridges under the Works Department. National highways 4,855.51 • Under State Plan, US$ 524.48 million has been provided for State highways 4,148.82 improvement of 1,310 km of roads and construction of 37 bridges in the state. District roads 14,694.23
Source: Economic Survey of Odisha, National Highways Authority of India, Odisha Budget – 2016-17
17 ODISHA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – RAILWAYS
. As of March 2016, Odisha has railway track length of 2,572.16 km. . In March 2017, the state government started several projects to . Odisha serves as a link between eastern & western India through the strengthen & develop rail infrastructure in the state. US$ 364.8 railway network of the South Eastern Railways & the East Coast million worth of investments would help in mobilising minerals & Railways. encourage tourism.
. With the authorization of the Talcher-Sambalpur track, an imperative link has been cemented between coastal & western Odisha.
. Odisha falls in the East Coast Railways region. Its major divisions are Khurda Road, Sambalpur & Waltair, with district headquarters in Bhubaneswar.
. The Asian Development Bank (ADB) has inked a US$120 million loan agreement with the Government of India to fund double-tracking work and the electrification of railway tracks across high-density corridors in the country, which includes Odisha.
. With the allocation of the railway budget of US$ 696.52 million, the Odisha Government in February 2017, has announced to set up an electric loco periodical overhauling workshop & freight train maintenance facilities with routine overhauling facility for freight wagons in Kalahandi & Sambalpur districts.
. In Union Budget 2018-19, extension of Naupada-Gunupur line upto Theruvali was proposed at a cost of Rs 936 crore (US$ 139.51 million).
. In Union Budget 2018-19, the government has assigned Rs 5,252 crore (USD 811.24 billion) for the different railway infrastructure Source: Maps of India projects in Odisha, the allocated amount is highest ever till date. Source: Economic Survey of Odisha, News articles
18 ODISHA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – AIRPORTS … (1/2)
. Biju Patnaik Airport, is located in the state capital, Bhubaneswar. In November 2013, the airport was declared an international airport by the Ministry of Civil Aviation. . In 2014-15, AAI announced plans to undertake the construction of Jharsuguda airstrip. The airport is expected to start regional flights by February 2018. The airport is one of the five airports in Odisha which were chosen under the UDAAN scheme. . Direct links are available from Bhubaneswar to destinations such as New Delhi, Kolkata, Chennai, Nagpur, Mumbai & Hyderabad. In addition, there are 17 airstrips & 16 helipads at several places in the state. . The Airports Authority of India (AAI) has proposed construction of another international airport in Odisha due to the rising air traffic. The proposed airport will require 1,500-2,000 acres of land and will be built on PPP mode. In February 2018, government decided to allocate 1.47 acres additional land free of cost to the AAI for the expansion of the Jharsuguda Air strip. . A sum of US$ 6.4 million has been proposed in the 2017-18 state budget for the construction of air strips to enhance air connectivity. Also, a new scheme called the Regional Connectivity Scheme has been formulated by GOI to connect the small towns of the states through airstrips/ airports by way of e-bidding. . The state government has begun the process of constructing a new greenfield airport in Khurda district. As of December 2017, Airports Domestic airport Authority of India (AAI) is going to conduct a feasibility study of land Source: News articles, Airports Authority of India available.
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Bhubaneshwar aircraft movement (nos.) Bhubaneshwar passenger traffic (million)
20,000 2.7
18,000 2.60
2.3
16,000
18,339
2.33
1.9
14,000 17,078
12,000 1.89
14,672
14,220 1.5
14,036
10,000
12,512
1.49
11,752 11,728
8,000 1.1 1.39
1.34
10,706
1.25
6,000 0.7 1.04
4,000 0.83
2,000 0.3
0 1
1 -0.1
2016-17 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2017-18
2011-12 2016-17 2009-10 2010-11 2012-13 2013-14 2014-15 2015-16 2017-18
Freight handled at Bhubaneshwar (tonnes)
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-181
1998 2,667 2,286 3,324 4,022 5,950 7,002 8,239 6,467
Note: 2017-181 : Up to January 2018 Source: AAI (Airports Authority of India)
20 ODISHA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – PORTS
. Paradip port is connected with the broad-gauge rail link of the East- Commodity-wise traffic handled at Paradip port Coast Railway & is also served by National Highway-5A.
. During April 2017- January 2018, Paradip port handled 84.57 million Commodity 2013-14 2014-15 2015-16 2016-17 tonnes of cargo traffic. As of December 2017, the state government Petroleum, oil & 26.6% 25.7% 26.6% 31.1% is planning to establish an outer harbor to the south of South Break lubricants Water for handling the vessels at the port. Iron 3.3% 0.7% 1.0% 12.4% . Odisha government has approved the second phase bidding for Fertilisers 7.0% 4.8% 6.0% 5% riverine port. The port is being constructed on Mahanadi river at Akhadasali village in Mahakalpada block of Kendrapara district at an Coal 49.8% 54.9% 52.6% 40.6% estimated cost of Rs 2,110 crore (US$ 325.29) Container 0.1% 0.2% 0.2% 0.1% . In May 2017, the state government signed five MoUs with 5 different Others 13.2% 13.8% 13.6% 9.1% companies for the construction of 2 minor ports. The ports are to be constructed at Astarang in Puri district & Subarnarekha in Balasore district. Total traffic handled from Paradip port (‘000 tonnes)
2013-14 2014-15 2015-16 2016-17 2017-181
Behrabalpur 68,003 71,011 76,390 88,950 84,570 (Baleshwar)
Paradip Ports (Jagatsinghpur) Gopalpur (Ganjam) Major ports Paradip
Gopalpur Minor ports Dharma Source: Maps of India Note: 2017-181 – Up to January 2018 Source: India Ports Association
21 ODISHA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – POWER … (1/2)
. Odisha is the 1st state in the country to bring in power sector Installed power capacity (MW) reforms.
. As of February 2018, Odisha accounted for a total installed power 10,000
generation capacity of 7338.36 MW, comprising 2,488.22 MW under
9,000 state utilities, 3,117.24 MW under the private sector & 1,732.90 MW
under central utilities.
8,000 9,421.52
. Of the total installed power generation capacity, 4,992.90 MW was
9,036.36
contributed by thermal power, 2,150.92 MW by hydropower & 194.52 7,000 8,538.27 MW by renewable power.
6,000 7,721.80 7,338.36
. As per budget 2016-17, the state government has initiated Odisha
Distribution System Strengthening Programme (ODSSP) under 6,946.30
which 500 new 33x11 sub-stations will be added by 2018. 5,000 5,996.30
. An outlay of US$ 24 million has been budgeted to provide 4,000 5,378.60 uninterrupted stable power supply in Bhubaneshwar and Cuttack Urban Complex under the State Capital Region Improvement of 3,000 Power System (SCRIPS) scheme. . In the 2017-18 budget, the government of India has announced 2,000 Odisha Renewable Energy Policy to promote green energy and have 1,000 proposed a budget of US$ 8.0 million towards the Odisha Renewable Energy Development Fund.
0 1 . As of March 2017, companies like NTPC, Adani Power & JSW
Energy are planning to take over coal fired power plants in the state,
2010-11 2011-12 2012-13 2013-14 2015-16 2016-17 2017-18 which have either started commercial operations or are at very 2014-15 advanced stages of commissioning.
Note: 1As of February 2018 Source: Central Electricity Authority
22 ODISHA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – POWER … (2/2)
. In February 2017, for ensuring 24x7 electricity supply of SC, ST Segment Company1 ashram schools located in remote areas, the state government has Power generation . Odisha Power Generation Corporation planned to install solar photovoltaic systems in 147 schools, at an company Limited (OPGC) estimated cost of US$ 4.95 million. . Odisha Power Transmission . To fulfil the state’s Renewable Purchase Obligations (RPO) for Corporation Limited (OPTCL) promoting the renewable energy sector, the Solar Energy Power transmission Corporation of India (SECI) has allocated 50 Megawatt (Mw) wind company . Central Electricity Supply Utility of power capacity to Odisha. Odisha (CESU)
. NALCO is planning to set up a 150 MW wind power plant in Odisha. . Western Electricity Supply Company of The company has sought land and other clearances from the state Orissa Limited (WESCO) government. . North Eastern Electricity Supply . Four companies (Tata Power, Adani Group, Torrent Power and Power distribution Company of Odisha Limited (NESCO) Greenko Group) have shown keen interest to acquire Central companies . Southern Electricity Supply Company of Electricity Supply Utility of Odisha (CESU Odisha). Electricity Odisha Limited (SOUTHCO) distribution privatisation would help to supply electricity in the distribution circles of Bhubaneshwar and would facilitate 2 million . Central Electricity Supply Utility of customers. Odisha (CESU)
. NHPC is planning to set up a 200 MW solar project in Odisha with an investment of Rs1,000 crore (US$ 154.46 million).
1OPGC, OPTCL and CESU are state government owned. WESCO, NESCO and SOUTHCO are private companies under Reliance Energy
23 ODISHA For updated information, please visit www.ibef.org AMRUT AND SMART CITIES … (1/2)
. 6 cities of Odisha were shortlisted to be developed as a smart cities. Two cities those have been selected by the Ministry of Urban Development to be developed as smart cities in the state of Odisha.
. In an effort to revolutionise the infrastructure of the state, the state Rourkela government decided to revamp 2 cities namely, Bhubaneshwar & Rourkela.
. As per budget 2016-17, Bhubaneshwar was ranked 1st in the Smart Cities challenge among the other 98 cities of the country and the state government has proposed an amount of US$ 50.92 million for uplifting & developing the city as one of the country’s upcoming smart cities.
. Bhubaneshwar, Odisha’s capital, has secured a spot in the list of world’s top 20 smart cities in 2017. The ranking has placed the city Bhubaneswar at the 13th position in terms of safety and 20th in three other parameters viz. mobility, healthcare and productivity.
Smart cities in Odisha
Cities Population
Bhubaneswar 840,834
Rourkela 320,040 Source: Ministry of Urban Development
24 ODISHA For updated information, please visit www.ibef.org AMRUT AND SMART CITIES … (2/2)
. 9 cities in the state were identified under Atal Mission for Cities/ Towns in Odisha covered under AMRUT Rejuvenation & Urban Transformation (AMRUT).. S. No. City/town . In budget 2017-18, the state government allocated US$ 32.05 million for the cities under AMRUT scheme. The funds will be used to 1. Bhubaneswar town provide basic services and amenities in the cities and to improve the quality of urban life. 2. Cuttack
3. Brahmapur Classification of AMRUT Cities in Odisha on the basis of population 4. Rourkela town
Number of AMRUT cities with population 5. Puri 9 less than 1 million 6. Sambalpur town Number of AMRUT cities with population 0 in the range of 1 – 10 million 7. Baleshwar town Number of AMRUT cities with population 0 greater than 10 million 8. Baripada town
Total number of AMRUT cities 9 9. Bhadrak
Source: Ministry of Urban Development, Government of India
25 ODISHA For updated information, please visit www.ibef.org PHYSICAL INFRASTRUCTURE – TELECOM
. As of November 2017, the state had an overall tele-density of Telecom Infrastructure (As of December 2017) 79.61%.
. According to the Telecom Regulatory Authority of India (TRAI), Wireless subscribers 34,023,044 Odisha had 34.02 million wireless subscribers and 273,288 wire-line Wireline subscribers 273,288 subscribers, as of December 2017. (1) . By the end of December 2017, 6,654,270 subscribers had submitted Internet subscribers 9,850,000 requests for mobile number portability in Odisha. Tele density (in %) 79.61 . As of FY17, the state had 8,175 post offices.
Performance status of Bharat Net project (as of December 2017) Major telecom operators in Odisha No. of GPs in Phase-I 3,8602 . Bharat Sanchar Nigam Limited (BSNL) Pipe laid (kms.) 8,1212 . Bharti Airtel Cable laid (kms.) 8,948 . Vodafone Essar
GPs for which cable laid 3,237 . Reliance Communications
No. of GPs Lit 5172 . IDEA Cellular
. Aircel Limited
. Tata Teleservices
Note: 1As of June 2017, 2As of July 2017 Source: Telecom Regulatory Authority of India, Department of Telecommunications, 1As of June 2017
26 ODISHA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE
. Odisha has an abundant water supply, endowed with approximately 11% of the country’s water resources.
. In December 2017, the state government signed an agreement with Germany’s KfW Development Bank to avail a concessional long term loan of Rs 440 crore (US$ 67.96 million) for development of infrastructure in different urban centres. The amount received will be utilised for infrastructure projects like energy efficient street lighting, reclamation and development of water bodies, solid waste management, sewerage systems, water supply and storm water drainage across the urban areas of the State.
. As per the budget 2017-18, the Government of Odisha has allocated an amount of US$ 716.42 million under the Housing and Urban Infrastructure Department.
. Further, under the Externally Aided Project (EAP), the state government has decided to provide an amount of US$ 0.96 million for Odisha Urban Infrastructure Development Fund of the state during 2017-18. The state government has also proposed to lay down an amount of US$ 3.2 million for the Odisha Integrated Sanitation Improvement Project as per the 2017-18 budget.
. Bhubaneswar Development Authority (BDA) has undertaken the development of Bhubaneswar Town Centre (BTC) over 12 acres of land with an investment of US$ 1.24 million. The project is envisioned as the city’s first planned Transit Oriented Development (TOD) initiative and also the first smart building project in Bhubaneswar. It will primarily have elements like theatre plaza, retail and malls, nature plaza, landscape, town plaza, art plaza, experience plaza, children’s plaza and more.
. Government of India has approved 5,133 affordable house in 26 cities with an investment of Rs 156 crore (USD 24.10 million) of which central government would contribute 77 crore (USD 11.89 million).
Source: JNNURM, Ministry of Urban Development, Government of India, News articles , UIDSSMT: Urban Infrastructure Development Scheme for Small and Medium Towns, State Budget 2016-17
27 ODISHA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE PARTNERSHIP (PPP) PROJECTS
Project name Sector Type of PPP Project Cost (US$ million) Stage Build-Own-Operate- Kirtania Port Subarnarekha Mouth Transport 334.10 Under construction Share-Transfer Deep Draught Iron Ore Berth in Transport Build-Operate-Transfer 96.87 Under construction Jagatsingpur district Improvement to Putaspanga Bamberi Transport Build-Operate-Transfer 10.39 Operational Road Social and commercial Hop on Hop Tourist Bus Terminal Management Contract 3.82 Under construction infrastructure Build-Own-Operate- Gopalpur Port Transport 992.97 Operational Share-Transfer Social and commercial IT & Commercial Complex (Rourkela) Build-Operate-Transfer 11.75 Operational infrastructure Build-Own-Operate- Haridaspur-Paradip Railway Line Transport 238.19 Under construction Transfer Build-Own-Operate- Astaranga Port Project Transport 992.97 Pre- construction Share-Transfer Design-Build-Finance- Water Supply Project (IIT-NISER) Water sanitation 28.68 Under construction Operate-Transfer Solid Waste Management Design-Build-Finance- Water sanitation 30.55 Under construction (Bhubaneswar-Cuttack) Operate-Transfer Development of Deep Draught Coal Transport Build-Operate-Transfer 62.45 Under construction Berth at Paradip Port Mechanization of East Quay 1, 2 & 3 Transport Build-Operate-Transfer 226.04 Under construction Berths Road Upgradation (Sambalpur- Build-Operate-Transfer Transport 197.46 Under construction Rourkela) Project Toll Build-Operate-Transfer Angul Sukinda new railway line Transport 63.77 Under construction (BOT)
Source: Ministry of Finance, Government of India
28 ODISHA For updated information, please visit www.ibef.org DEVELOPMENT PROJECTS: SEZs AND INDUSTRIAL ESTATES
. The state has 16 SEZs as of December 2017, of which, four are Formally approved SEZs (As of December 2017) operational, five are notified & seven are formally approved. Industry . The state has 2 operational IT SEZ with 1 located in Bhubaneswar & Location SEZs (No) the other located in Jatni Tehsil, as of December 2017. Odisha also IT/ITeS Khurda 3 has 1 operational SEZ for production & export of aluminium and 1 for mineral-based industries. Multiproduct Ganjam 1
. IDCO is the main developer for forty% of the formally approved Metal based SEZ Jajpur 1 SEZs. The state has 86 industrial estates. Mineral based industries Ganjam 1 . As of March 2016, employment was generated for 3,322 people Manufacture & export through SEZs in Odisha. Jharsuguda 1 Of aluminium
Operational SEZs in Odisha (As of December 2017)
Industry Location SEZs (No) Orissa Industrial Infrastructure Bhubaneswar IT Development Corporation (IDCO) Orissa Industrial Infrastructure IT (Knowledge Jatni Development Corporation Park) (IDCO) Vedanta Aluminium Brundamal and Manufacture and Limited Kurebaga villages export of aluminium Saraf Agencies Private Chhatrapur, Mineral-based Limited Gunjam district industries
Source: Ministry of Commerce & Industry, Government of India, IDCO – Odisha Industrial Infrastructure Development Corporation
29 ODISHA For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)
. As of 2016-17, there were 4 dental colleges, 123 engineering Educational infrastructure (2016-17) colleges, 41 MCA colleges, 62 MBA colleges and 117 polytechnics/engineering schools in Odisha. Medical Colleges (Pvt+ Govt.) 8 . The major universities in the state are Utkal University & Biju Patnaik Dental colleges (Pvt+ Govt.) 4 University of Technology; popular colleges are Orissa Engineering College & Sriram Chandra Bhanj Medical College. Engineering colleges (Pvt+ Govt.) 123 . The state is also home to premier institutions such as National MCA colleges (Pvt+ Govt.) 41 Institute of Technology (NIT) Rourkela, Xavier Institute of Management & National Institute of Science Education & Research. MBA colleges (Pvt+ Govt.) 62 . Under the Universal Immunisation Programme (UIP), the Odisha government announced its plans to expand rotavirus vaccine in Polytechnics/engineering schools 117 Odisha as well other than 4 states pan-India, as of February 2017.
. As per the state budget 2017-18, a provision of US$ 1.44 billion has been made for the School & Mass Education Department & higher education department during 2017-18.
. Under the state budget 2017-18, the Government has also provided US$29.6 million under the Ganadhar Meher Sikhya Manakbrudhi Yojana (GMSMY) to provide free school bags and educational kits to students in classes 1 to 5, free school uniforms to children in classes 1 to 8 and free bicycles to all students in class 9.
Source: Economic Survey of Odisha, University Grants Commission, MCA: Master of Computer Applications, MBA: Master of Business Administration, OBC: Other Backward Class, SEBC: Socially and Educationally Backward Class
30 ODISHA For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)
. In 2016-17, Odisha recorded a literacy rate of 73.4% out of which the Literacy rates (%) male literacy rate was 81.59% and the female literacy rate was 64.01%. Literacy rate 73.40 . In 2015-16, Odisha had around 36,760 primary schools with 22,795 Male literacy 81.59 upper primary schools and 9,671 high schools.
. During 2015-16 (up to December 2015), for providing the Wi—Fi Female literacy 64.01 services in Central University of Orissa, Bhubaneshwar, an amount Source: Census 2011 of US$ 649.29 thousand was approved by the central government.
. Moreover, for a period of 2012-17, 3 proposals for the establishment Odisha primary education statistics (2015-16) of new universities through clustering of colleges and 3 proposals for setting up of new universities through up-gradation of autonomous Primary: 36,760 colleges have been received by the state. Number of schools Upper primary: 22,795 High schools: 9,671 . In May 2017, the state government decided to impart entrepreneurship training to at least 10,000 people this year. The Primary: 2.82 training will be organised by the Institute of Entrepreneurship School-dropout rate (%) Upper primary: 3.87 Development, Bhubaneswar, District Industry centres and Coir High Schools: 16.49 Board. Primary: 24:1 Pupil-teacher ratio Upper primary: 23:1
Primary: 88.42 Net-enrolment ratio in schools (%) Upper primary: 81.79
Source: Economic Survey of Odisha; Odisha Budget 2016-17, RUSA - Rashtriya Ucchatar Shiksha Abhiyan
31 ODISHA For updated information, please visit www.ibef.org SOCIAL INFRASTRUCTURE – HEALTH
. In November 2017, 412 community health centres, 1,361 primary Health indicators (2016) health centres and 27 sub-district hospitals were operational in the state. Population served per hospital bed1 1,386 . Under plan and non plan expenditure, US$ 589.53 million has been Birth rate2 18.6 allocated for the Health and Family Welfare Department in the state budget 2017-18. Odisha State Medical Corporation (OSMC) is Death rate2 7.8 established by the Government of Odisha to supply free of cost drugs to the health facilities in Odisha. Infant mortality rate3 44 . Under National Health Mission, the centrally sponsored scheme instituted by the Government of India to improve the health care Life expectancy at birth (year) sector, the Government of Odisha proposed to allocate US$ 207.84 million in the state budget for 2017-18. Male (2011-15) 64.3 . In December 2017, the state government signed four MOUs with Female (2011-15) 67.3 Glocal Health Care Systems Pvt Ltd, Centre for Stem Cell Research of Christian Medical College, Narayana Hrudayalaya and LV Prasad Eye Institute to improve healthcare facilities and provide better Health infrastructure (January 2018) services in the state.
. In March 2018, the state government approved setting up of 19 Active primary health centres 1,363 hospitals in the state. Establishment of these hospitals will be done Active sub centres 6,691 under PPP mode and is expected to require private sector Active community health centres 420 investments worth Rs 1,150 crore (US$ 177.63 million). Active district hospitals 38 Active sub district hospitals 27
Note: 1As of 2014-15, 2Per thousand persons, 3Per thousand live births, PPP – Public Private Partnership Source: Central Bureau of Health Intelligence, Government of India, Ministry of Health and Family welfare, Economic Survey of Odisha, SRS Bulletin
32 ODISHA For updated information, please visit www.ibef.org CULTURAL INFRASTRUCTURE
. There are sports stadiums in Bhubaneswar, Cuttack & other cities. Badminton, cricket, hockey, tennis, table tennis & volleyball are the major sports although, other games are also popular.
. The main sports arenas are the Barabati Stadium & Jawaharlal Indoor Stadium in Cuttack, the Biju Patnaik Swimming Pool-cum-Sports Complex & the Kalinga Stadium in Bhubaneswar, a sports complex in Berhampur & 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 the Akbari Continental & Hotel Bishal, while Mayfair Beach Resorts and Panthanivas Puri are the most popular hotels in Puri.
. Over the past few years, there has been a gradual development in the tourism industry & cultural infrastructure of the state. On account of this, the Chief Secretary of the state has taken initiatives to foster the Odia Bhasa Pratisthan to enable the implementation of Odia in all government transactions. Also, in order to drive maximum footfalls & popularize the Nabakalebara Festival 2015, the cultural department for the festival has prepared a media plan to be followed in the subsequent years.
. Puri is a beach city famous for hosting the annual temple festival, or the Rath Yatra, which draws a large number of religious tourists. 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 & the Sun temple in Konark.
. Odissi is the major dance form of the state. The state government has allocated US$ 46.94 million to the Tourism and Culture Department as per 2017-18.
. Various cultural projects being under taken in Odisha include Odia Virtual Academy, Revival of Bhagabat Tungis, Kalamandal project, Odia Bhasa Pratisthan, Setting up Odia Chair in different Universities, etc. for which the state government has proposed US$ 0.15 million, US$ 0.45 million, US$ 0.76 million, US$ 0.15 million & US$ 0.30 million, respectively during 2016-17.
. The state is hosting the 22nd edition of Asian Athletics Championships in July 2017 at the Kalinga Stadium in Bhubaneshwar. A total of 800 athletes from 45 countries are participating in the event.
. The state will be host to the 14th edition of men’s hockey World Cup in 2018. The state government is the title sponsor for the 2018 world cup.
33 ODISHA For updated information, please visit www.ibef.org INDUSTRIAL INFRASTRUCTURE … (1/3)
. As a part of the state government-enacted Orissa Industries . As per budget 2017-18, the state government allocated US$ 2.98 (Facilitation) Act, 2004, a single-window clearance system was million under the Industrial Infrastructure Development Fund (IIDF) to implemented in the state. This was done with the aim of facilitating ensure quality infrastructure is available to industrial clusters. the growth of industries and creating an attractive environment for . Further, the state government has also projected to assign US$ 1.52 both domestic and international investments. million under the initiative of BANY (Biju Atma Nijukti Yojana) during 2016-17. . IDCO and NALCO have signed an MoU to develop an ancillary and downstream aluminium park at Angul over 450 acres of land. . For the endorsement as well as financial assistance to MSME units of Odisha, the state government has decide to allocate US$ 4.73 . A mega food park is being established near Bhubaneswar over 282 million and it has also been decided that for the establishment of acres through the PPP mode. IDCO is the nodal agency for the Infrastructure Development Fund (IDF), an amount od US$ 1.52 establishment of this park. million will be allocated during 2016-17. . For industrial development in the state, Government of Odisha . In April 2017, the Odisha government approved an investment of announced plans to invest US$ 18.84 million for MSME sector. Major US$ 263.33 million in nine different sectors. The move will create initiatives under this investment are- employment for 3,204 people.
• Biju Atma Nijukti Yojana (BANY) . Setting up of an Electronics Manufacturing Cluster (EMC) in Bhubaneshwar Industrial Area has been approved by the central • National Mission on Food Processing(NMFP) government. The EMC is to be built over an area of 204 acres at a • Incentives for food processing industries cost of US$ 31.11 million.
• Capacity building of entrepreneurs Key Industrial zones
• VAT re‐imbursement . Talcher-Angul . Gopalpur-Chatrapur
• Subsidy under MSME Policy 2009 . Kalinganagar-Duburi . Paradip-Jagatsinghpur
. Bhubaneshwar-Khurda . Jharsuguda-Brajarajnagar
. Rayagada-Sunabeda
Source: Economic Survey of Odisha, DCO – Odisha Industrial Infrastructure Development Corporation, MoU – Memorandum of Understanding
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Industrial zones Description
. The IT park is spread over 350 acres in Bhubaneswar and has IT companies such as Infosys, Wipro, Infocity TCS and MindTree. Equipped with modern infrastructure including a nine-hole golf course, it is one of the biggest IT parks in eastern India. Infocity-II is projected to be spread over 500 acres at Janla.
. It has a built-up space of 350,000 sq ft in a hi-tech steel and glass structure equipped with high-speed Fortune Tower connectivity in Bhubaneswar and is home to a number of IT companies.
Industrial Infrastructure Development . It is a strategically located, 11-storeyed business centre in Bhubaneswar and has a number of IT/ITeS Corporation (IDCO) Tower companies.
. The Chandaka Industrial Estate in Khurda is an IT/ITeS SEZ developed by the Orissa Industrial Special economic zones (SEZs) Development Corporation. Nine more SEZs have been given formal approval and five had been notified by the Government of India.
. The Software Technology Parks of India (STPI) has developed software technology parks at Technology parks Bhubaneswar, Rourkela and Berhampur.
. The state government is planning to establish a mega food park near Bhubaneswar over 282 acres in Mega food park PPP mode. Odisha Industrial Infrastructure Development Corporation (IDCO) is the nodal agency for establishment of the park.
35 ODISHA For updated information, please visit www.ibef.org INDUSTRIAL INFRASTRUCTURE … (3/3)
Category MSME units (No) (2015-16)
Repairing & services 110,910
Food & allied sectors 31,662
Engineering & metal 15,311
Textiles 12,861
Glass & ceramics 9,867
Forest & wood based 1,468
Miscellaneous manufacturing 11,819
Paper & paper products 3,603
Chemical & allied sectors 3,485
Rubber & plastics 1,976
Electrical & electronics 1,549
Livestock & leather 576
Source: Economic Survey of Odisha, MSME: Micro, Small and Medium Enterprises
36 ODISHA For updated information, please visit www.ibef.org KEY INDUSTRIES
. Odisha’s industries are based mainly on the natural resources Key Industries in Odisha available in the state. It carries more than 35% of country’s natural . Iron and steel, and ferroalloy resources. . Aluminium . Forest-based products provide livelihood to a large section of the population of the state. Agriculture and allied sectors have provided . Handloom employment, directly or indirectly, to more than 60.0% of the state's . Agro-based industry total workforce. . Mining . The state has significant reserves of iron ore, bauxite, nickel, coal, etc. Hence, it is an attractive destination for mineral-based industries. . IT/ ITeS
. The state is one of the top producers of aluminium in the country, . Electronics both in terms of production capacity as well as actual production. . Tourism . In September 2017, the state government approved the ‘Odisha Mobile Towers, OFC and related Telecom Infrastructure Policy, Investment intentions in terms of IEMs filed, LOIs / DILs issued 2017’. The policy aims to streamline the process for companies entering the telecom sector in Odisha, establish modern Year Number Proposed Investments (US$ billion) telecommunication network and encourage development of 2012-13 58 10.55 telecommunication network in remote areas. 2013-14 40 16.37
2014-15 27 4.68
2015-16 23 4.02
2016-17 36 3.49
2017-18 31 1.08
Source: Economic Survey of Odisha, DIPP, IEM: Industrial Entrepreneur Memoranda, LOI: Letters of Intent; DIL: Direct Industrial Licenses
37 ODISHA For updated information, please visit www.ibef.org KEY INDUSTRIES – IRON, STEEL AND FERROALLOY … (1/3)
. Odisha being one of the largest producers of iron and steel in the country, accounts for 10% share in the nation’s steel production. The state also accounts for 25% share in the iron reserves of India. Iron ore production in the state increased from 80.87 million tonnes during 2015-16 to 102.66 million tonnes during 2016-17.
. Steel Authority of India (SAIL), a public sector undertaking (PSU) involved in the production of steel, operates Rourkela Steel Plant in Odisha and was taken up for expansion during the 11th and 12th five year plan. Before expansion, the hot metal, saleable steel and crude steel producing capacity of the steel plant was 2 million tonnes, 1.67 million tonnes and 1.9 million tonnes, respectively. After the expansion of steel plant, production capacity of hot metal, saleable steel and crude steel has reached 4.5 million tonnes, 3.9 million tonnes and 4.2 million tonnes, respectively.
. Moreover, during 2016-17, Rourkela Steel Plant produced a record 2.76 million tonnes of steel. Production of crude steel, saleable steel and sinter was 2.9 million tonnes, 2.74 million tonnes and 5.27 million tonnes respectively
. 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 port facilities at Paradip, Gopalpur and Behrabalpur (Baleshwar).
. Iron ore (hematite) is found in Dhenkanal, Jajpur, Keonjhar, Koraput, Mayurbhanj, Sambalpur & Sundergarh districts and iron ore (magnetite) occurs in Mayurbhanj district in the state.
. As per state budget 2016-17, for building steel bailey bridges across the remote areas of IAP districts, an allocation of US$ 10.69 million has been proposed by Government of Odisha during 2016-17.
. JSW Steel Ltd. of Jindal Group decided to setup a steel project in Jagatsinghpur district in March 2017. In November 2017, Ministry of Environment, Forest and Climate Change (MOEFCC) gave clearance to JSW Steel for setting up a 13.2 MTPA mega steel plant cum captive power plant. The company is planning an investment of US$ 7.8 billion which is expected to create 50,000 jobs.
Source: Economic Survey of Odisha, State Budget 2016-17, MTPA: Million tonnes per annum
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Key ferro-alloy industries in Odisha
Producer Product mix
Ispat Alloys, Balasore Ferro Manganese, Ferro Chrome
Indian Charge Chrome Ltd., Chandwar Charge Chrome, Ferro Chrome
Ferro Alloy Corp. Ltd., Balasore Charge Chrome, H.C. Ferro Chrome
Indian Metals & Ferro AlloysLtd.,Rayagara, Karatpur Ferro Chome, Charge Chrome,Ferro Silicon
Tata Steel Ferro Alloy Plant, Bamnipar, Kendujhar H. C. Ferro Chrome, Charge Chrome
Tata Steel Ferro Alloy Plant, Rawmet H. C. Ferro Chrome
Tata Steel Ferro Alloy Plant Goda Silico Manganese, Ferro Manganese
Ferro Chrome Ltd Ferro Chrome
Jeypur Sugar Ltd, Jeypur, Ferro Chrome
Source: News articles
39 ODISHA For updated information, please visit www.ibef.org KEY INDUSTRIES – IRON, STEEL AND FERROALLOY … (3/3)
Key players
. Established in 1907, Tata Steel is Asia's first and one of India's largest private sector steel companies. The consolidated revenue of the company for 2016-17 was recorded to be US$ 16.82 billion.
. It is amongst the lowest-cost producers of steel in the world and one of the few select steel companies in the world that have a positive Economic Value Added (EVA+). The company has a crude-steel production capacity of over 30 MTPA. It has set up a new subsidiary, Tata Steel Odisha to lead a new steel plant costing US$ 7.3 billion in Kalinganagar (Jajpur district) and was Tata Steel inaugurated in November 2015. The company plans to expand its production capacity to 16 million tonnes by 2025.
. A subsidiary of the Korean company POSCO, which is among the world’s top five steel producers, The multi-product SEZ of the company has been approved in principle. The plant’s first phase will be completed in 2016-17 and is estimated to cost US$ 12 billion. It will manufacture hot-rolled products and slabs. POSCO India Pvt Ltd
. Visa Steel Ltd is a subsidiary of VISA Infrastructure Ltd. It produces pig iron, coke and chrome ore. In 2016-17, the company recorded consolidated revenues of US$ 235.01 million. It has two manufacturing facilities in Odisha. The plant at Kalinganagar has an annual production capacity of 225,000 tonnes of pig iron, 400,000 tonnes of coke, 50,000 tonnes of ferro-chrome and
300,000 tonnes of sponge 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 ton per annum (TPA) special steel plant at Visa Steel Ltd Kalinganagar industrial complex.
. Essar Steel is a global producer of steel and is present in India, Canada, the US, Middle East and Asia. It has a capacity of 14.2 million tonnes per annum (MTPA) of steel. It is making significant investments in setting up steel plants across the world. In 2014, company established a 12 MTPA integrated steel plant at Paradip in Odisha . Essar Steel
40 ODISHA For updated information, please visit www.ibef.org KEY INDUSTRIES – ALUMINIUM … (1/2)
. Odisha ranks first in India in terms of both production capacity and Bauxite and Alumina production by NALCO (million tonnes) actual output of aluminium. (2017-181) . Odisha is considered to be the aluminium capital of India and is an ideal location for setting up aluminium and aluminum-based Bauxite 7.83 companies due to the presence of more than half of the country’s Alumina 2.10 bauxite reserves, in the state, and presence of Vedanta, Hindalco and NALCO in Odisha. Bauxite production in the state increased from 10.84 million tonnes in 2015-16 to 11.99 million tonnes in 2016- 17. Bauxite production during April-September 2017 stood at 6.0 million tonnes.
. It also has adequate water and power supply for such industries.
. A new aluminum park is going to be set up at Angul in Odisha. The park will entail an investment of US$ 27.99 million and will come up over an area of 223 acres. It is expected that the park will create 15,000 job opportunities.
. India’s aluminum major, NALCO, is planning to set up two joint ventures (JVs) at this upcoming aluminium park. The two JVs will manufacture special grade aluminium to be used in metro trains, e- vehicles, aerospace and automobile sector,
. In January 2018, the state government has given approval for five investment proposals including two Angul Aluminium Park worth Rs 328 crore (US$ 50.66 million). Also the project has received the clearance of State Level Single Window Clearance Authority (SLSWCA). Note: 2017-181 – Up to November 2017 Source: Indian Bureau of Mines, NALCO: National Aluminium Company Limited,1Up to December, 2014
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Key players
. 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, power generation, rail and port management. The company recorded revenues of US$ 371.57 million in the third quarter of 2017-18.
National Aluminium Co . It employs some of the world’s finest technologies used in the aluminium industry. In 2014, NALCO established an Ltd (NALCO) aluminium park in Angul in a joint venture with IDCO.
. Hindalco Industries Ltd recorded consolidated revenues of US$ 1.71 billion during the third quarter of 2017-18.
. HIL is owned by the Aditya Birla Group and is among the world's largest aluminium rolling companies and one of the biggest producers of primary aluminium in Asia. It acquired the Indian Aluminium Company Limited (Indal) in Hindalco Industries 2000. HIL produces 161,400 tonnes per annum (TPA) of aluminium from its plant at Hirakud Ltd (HIL)
. Vedanta Resources plc, the London-based holding company of the Sterlite group, is a key player in the aluminium industry in India. The company recorded revenues of US$ 3.79 billion during the third quarter of 2017-18.
. Vedanta operates several bauxite mines. It produces aluminium from its Bharat Aluminium Company Limited (BALCO) and Madras Aluminium Company Limited (MALCO). The company operates its aluminium refinery at
Lanjigarh in Kalahandi. The company also commissioned a red mud powder plant at the refinery. It has a capacity of 1 MTPA and is in process of 1.5 MTPA aluminium smelter expansion at Jharsuguda. Work has also commenced on its US$ 8.4 billion Aluminium project in Niyamgiri in Odisha. Vedanta Group
42 ODISHA For updated information, please visit www.ibef.org KEY INDUSTRIES – SSI, HANDICRAFT AND COTTAGE INDUSTRIES … (1/2)
. Odisha’s SSI is characterised by low capital investment requirement, Training Centres controlled by Khadi and Village Industries low gestation periods, high value addition and high export promotion Commission (KVIC) in Odisha prospects. Training Center Location . The Odisha State Cooperative Handicrafts Corporation is engaged in strengthening the production base, enlarging marketing Multi Disciplinary Training Centre Bhubaneswar opportunities, encouraging exporters and introducing new designs Sambalpur Silk & Gramodyog Samiti, National Deogarh and technology in the handicrafts sector. According to state budget Rural Resource Education & Training Centre 2017-18, an amount of US$ 32.39 million has been proposed for various schemes under the handloom, textile and handicrafts sectors in the state.
. The cottage industry in Odisha is involved in paddy processing, cashew nut processing, stone carving, beekeeping and wood carving. In addition, spices, pulses as well as brass and bell metal products are produced by the KVIC in Odisha. During 2016-17, 136 thousand hectares of area was under cotton production, while the yield of cotton in the state was recorded to be 375 kg per hectare.
. The state government also proposed a new scheme called Baristha Bunakar Sahayata Yojana has been formulated with provision of US$ 0.77 millions for rewarding the weavers of the state for their uninterrupted services rendered in keeping the heritage of art & craft of Odisha alive.
Source: Economic Survey of Odisha
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Financial assistance to handloom weavers (in US$ million) Funds released under National Handloom Development Programme (2016-17) – US$ ‘000 1.20 Handloom Marketing Assistance (HMA) 360.09 1.15
1.00
Funds sanctioned for Handicrafts (2016-17)- US$ ‘000 0.80 Ambedkar Hastshilp Vikas Yojna (AHVY) 22.66
Marketing Support and Services (MSS) 0.60 24.45 Scheme 0.57 Design 58.86 0.40 0.45
0.20
0.10 0.00 2012-13 2013-14 2014-15 2015-16
Source: Ministry of Textiles, Government of India
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. Odisha's main agriculture products are rice, pulses, oilseeds, Requirement, availability and sales of fertilizers in Odisha vegetables, groundnut, cotton, jute, coconut, spices, sugarcane, (‘000 MT) (2015-16) potato and fruits. There is a vast scope for agro-based industries for rice, lentils, edible oil-milling, dehydration of vegetables, maize- Fertilizer Requirement Availability Sales milling, cattle and poultry rearing, cotton oil, potato chips, coconut oil, sugar mills, mushroom cultivation, non-edible oils and others. Urea 660 610 587
. As per budget 2017-18, an amount of US$ 626.54 million has been DAP 240 172 164 allocated to the Department of Agriculture and Farmers’ Empowerment during 2017-18. Further, for increasing the supply of MOP 160 89 89 fertilizers in the state, a new scheme-“Grant to State procurement NPK 380 267 252 agencies” is being planned for providing financial support to procurement agencies, in order to fulfil their handling charges.
. Moreover, the state government has also decided to launch a new agri start-up programme in 2016-17, for supporting the efforts being implemented for the endorsement of agri-entrepreneurship across the state, as per budget 2016-17 of Odisha.
. As per budget 2017-18, an amount of US$ 24.05 million has been allocated to the Integrated Watershed Management Programme.
. The government has taken initiative for strong agricultural extension system which will enable delivery of appropriate technology and improved agronomic practices to the farmers. National Mission on Agriculture Extension and Technology with an outlay of US$29.7 millions and the Farm Mechanisation Programme of the State Government with an outlay of US$51.99 million will cater to these objectives . Source: Requirement, availability and sales of fertilizers in Odisha (‘000 MT) (2015-16), State budget 2017-18
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Agro Climatic Zone
Fertilizer Districts Covered Crops
North-Western Rice, Greengram, Blackgram, Arhar, Horsegram, Groundnut, Mustard, Wheat, Potato, Sundargarh, Deogarh Plateau Sweet potato, Vegetables, Mango, Banana, Citrus, Litchi, Guava and Papaya.
North-Central Mayurbhanj, Keonjhar Rice, Wheat, Arhar, Greengram, Blackgram, Horsegram, Groundnut, Linseed, Mustard, Mesta, Niger, Sweet potato, Potato, Chilli, Turmeric, Ginger, Vegetables, Mango, Banana, Plateau (Except Anandapur) Citrus, Pineapple and Sapota. Balasore, Bhadrak, North-Eastern Rice, Greengram, Blackgram, Mustard, Groundnut, Jute, Sweet potato, Potato, Chilli, Jajpur (Except Sukinda), Coastal Plains Vegetables, Mango, Banana, Papaya, Guava, Coconut. (Anandapur) Cuttack (Part), East & South Kendrapara,Jagatsinghpur, Puri, Rice, Maize, Greengram, Blackgram, Jute, Groundnut, Mustard, Sesamum, Horsegram, Coastal Plains Ganjam (Part), Khurda, Vegetables, Potato, Sugarcane, Chilli, Mango, Banana, Coconut, Guava, Citrus, Cashew. Nayagarh Rice, Maize, Jowar, Ragi, Sugarcane, Horsegram, Greengram, Cotton, Ganjam (Part), Gajapati, North-Eastern Blackgram, Mustard, Niger, Groundnut, Turmeric, Mesta, Sweet potato, Rayagada, Kandhamal, Ghats Chilli, Ginger, Vegetables, Mango, Jack fruit, Citrus, Pineapple, Sapota, Boudh Coconut. Rice, Maize, Ragi, Jowar, Small millets, Horsegram, Castor, Arhar, Eastern Ghats Nawarangpur (Part), Gram, Groundnut, Mustard, Cotton, Mesta, Turmeric, Ginger, Sweet Highland Koraput (Part) potato, Vegetables, Mango, Jack fruit, Guava, Ber, Cashew.
Source: Economic Survey of Odisha
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Agro Climatic Zone
Fertilizer Districts Covered Crops
South Eastern Rice, maize, ragi, horsegram, wheat, blackgram, greengram, Groundnut, niger, sesamum, Malkangiri, Koraput (Part) mesta, sweet potato, pea, chilli, Vegetables, ginger, mango, banana, guava, ber, Ghats pineapple, cashew. Western Kalahandi, Nuapada, Undulating Rice, maize, wheat, jowar, arhar, greengram, blackgram, horsegram, Gram, groundnut, Nawarangpur (Dabugaon) mustard, cotton, sugarcane, vegetables, lathyrus, Onion, mango, papaya, guava, banana. Lands Western Bargarh, Subarnapur, Rice, wheat, arhar, greengram, blackgram, horsegram, gram, Groundnut, mustard, mesta, Central Table Bolangir, Sambalpur, sugarcane, chilli, potato, vegetables, Mango, banana, guava, ber, cashew. Lands Jharsuguda Dhenkanal, Angul, Cuttack Mid Central (Part) Rice, maize, greengram, blackgram, arhar, sesamum, groundnut, Mustard, onion, Table Lands vegetables, sugarcane, chilli, mango, litchi, citrus, Guava, sapota, pineapple. & Sunkinda
Source: Economic Survey of Odisha
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Key players
. The company was established in the year 1961 and has a average capacity to crush 19,000 tonnes of sugarcane a day. The company has four crushing units, three units are located in Tamil Nadu while one in Dhenkanal district. The Odisha plant has sugarcane processing capacity of 2500 tonnes per day. The company recorded annual sales of US$ 58.02 million during the first three quarters of 2017-18. Sakthi Sugars Ltd
. The company was established in the year 1963. Its plant is located in Aska town of the Ganjam district in Odisha, 170 km from Bhubaneswar. The cooperative employs 900 people and provides livelihood to 20,000 sugarcane growers in the area. Presently, the plant has a crushing capacity of 2,500 tonnes per day. The plant also has a Aska Cooperative Sugar distillery and an ancillary unit with a capacity to produce 10,000 bulk litres of rectified spirit per day by utilizing Industries Ltd molasses.
. PPL was incorporated in 1981 as a joint venture between Adventz group company, Zuari Agro Chemicals Ltd and Maroc Phosphore SA. It is a prime player in the phosphoric fertilisers space. These fertilisers have applications for a wide range of crops. It has a di-ammonium phosphate (DAP) plant in paradip, which had an annual capacity of
720,000 tonnes. In 2014-15, the quantity of DAP manufactured by the company stood at 573.9 thousand metric paradip Phosphates tonnes. The quantity of DAP manufactured by the company during April-June 2015 stood at 108.4 thousand metric Ltd (PPL) tonnes.
. IFFCO produces and distributes fertilizers to farmers and member co-operatives in India. Its products include urea and fertilisers, indigenous seeds and chemicals. The revenue of the company was US$ 3.37 billion in Indian Farmers Fertiliser 2016-17. Cooperative (IFFCO)
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Mineral reserves by districts
District Major mineral Mineral 2015-16 2016-17 Bauxite, chinaclay, dolomite, limestone, mica, Koraput Bauxite (tonnes) 10,839,542 11,914,000 quartz Asbestos, fireclay, chinaclay, iron ore, kyanite, Chromite (tonnes) 3,102,940 4,129,711 quartzite, soapstone, talc, base metal (lead and Mayurbhanj Iron ore (thousand copper), coal, dolomite, manganese, nickel ore, 80,866,243 102,663,381 vanadiferous/ magnetite, gold. tonnes) Manganese ore 425,271 627,613 Malkangiri Limestone, tin ore, quartz (tonnes)
Nabarangapur Chinaclay, iron ore Dolomite (tonnes) 1,035,242 1,249,995
Rayagada Bauxite, graphite, manganese, quartz Coal (tonnes) 138,580,000 139,208,000 Lead, copper, coal, dolomite, fireclay, iron ore, Sundergarh limestone, manganese, quartz, bauxite Graphite (tonnes) 17,643 20,156 Coal, base metal (lead and copper), chinaclay, Limestone Sambalpur 4,524,561 4,762,094 fireclay (thousand tonnes) Pyrophyllite Asbestos, pyroxenite, iron ore, chromite, 4,490 0 Keonjhar chinaclay, pyrophyllite, manganese, gold, (tonnes) dolomite, limestone, quartzite, quartz Quartzite (tonnes) 50,084 48,360 Kadhamal Graphite Silica Sand 421 0 Balasore Vanadiferous/magnetite (tonnes)
Source: Ministry of Mines, Government of India
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. Odisha is one of India’s richest states in terms of mineral reserves. The mineral belt is spread over an area of more than 6000 sq km. Coal production in Odisha – thousand tonnes Moreover, the state accounts for more than 35% of total iron ore Year Production (thousand tonnes) resources of the country. The key minerals found in the state are iron, coal, bauxite, manganese, nickel, chromite, limestone, dolomite, 2010-11 111,094 graphite, decorative stones, beach sand, china clay, tin ore, etc. 2011-12 105,120 . In January 2017, NTPC's board approved an investment of over US$ 156.63 million for Dulanga coal mining project at in Odisha, for an 2012-13 109,679 estimated production capacity of 7 million tonnes per annum (MTPA). 2013-14 108,175 Mineral revenue in Odisha (US$ million) 2014-15 121,101 1,100
1,000 2015-16 138,580
900
800 2016-17 139,920
1,045.73
978.38
700
915.66
885.73 885.04
600 . As of February 2018, Essel group has been given permission to
765.36
500 730.05 restart its mining operation at Jilling and Koira mines.
400
279.63 . State-owned mining entity Odisha Mining Corporation (OMC) has
300 207.48
182.37 shown keen interest to hold its first ever national e-auctions for
200 426.13 bauxite, and is about to conduct the auction on the MSTC platform in 100 299.22
0 April.
2006-07 2005-06 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Source: Ministry of Mines, Government of India, Department of Steel & Mines, Government of Odisha
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Key players
. OMC was established in 1956 to explore and harness the mineral wealth of Odisha. In 1961, it became a state- owned corporation of the Government of Odisha. OMC has reserves of around 654.9 million tonnes of iron ore, 6.3 million tonnes of manganese-ore, 25.3 million tonnes of chromite, 19.6 million tonnes of limestone and other Orissa Mining minerals. OMC has 35 mining leases (chromite - 11, iron - 11, iron & manganese - 5, manganese - 3, limestone - 1 Corporation Ltd and gemstone - 4).
. MCL is a subsidiary of Coal India Limited and was formed in April 1992. It has two coalfields at Talcher & IB Valley in Odisha. The total raw coal production at MCL in 2014-15 was 121.37 million tonnes which increased to 139.21 Mahanadi Coalfields million tonnes in 2016-17. The company employs around 22,036 people. Ltd (MCL)
. Rungta Mines Limited is the flagship company of the S R Rungta Group. The company specialises 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 in Bhadrak, which has the capacity to
produce 65,000 tonnes per annum of charge-chrome and 250,000 tonnes per annum of chrome ore. It recorded Ferro Alloys Corp Ltd revenues of US$ 92.00 million in 2016-17. (FACOR)
51 ODISHA For updated information, please visit www.ibef.org KEY INDUSTRIES – IT/ITeS AND ELECTRONICS … (1/2)
. The IT sector is dominated by over 300 SMEs. The sector employs around 12,000 software professionals. In order to attract ICT investments, the centre is considering a mega project in BhubaNeswar, Odisha. . The state has an ample talent pool to cater to the needs of this industry. It produces 40,000 technical & management professionals & 50,000 general graduates every year. . In July 2015, the state government announced plans to frame a rural BPO scheme under which subsidies are planned to be offered for establishing BPO units. In places where STPI (Software Technology Parks of India) stations are situated, employment opportunities are expected to be generated in the state. STPIs in the state are located in Bhubaneswar, Balasore, Rourkela & Berhampur. In Odisha, the IT firms registered with the STPI provide employment to about 10,000 people. . As of February 2017, the state government announced plans to spend US$18.62 million of which US$3.72 million and US$2.48 million will be for State Wide Area Network (SWAN) and the State Data Centre .Also aa provision of US$2.32 million has been made for establishment of Software Technology Park of India and US$0.93 million for development of Infocity-II-IT-SEZ.. . The state government allocated US$ 19.24 million under state budget 2017-18, for embracing various projects related to IT & e-Governance under different departments of the state. . The state government announced plans to spend US$ 663.57 million by 2020 for the development of IT/ITeS/ESDM sector of Odisha, with an aim to create more than 100,000 job opportunities through this investment. Increased demand from IT giants such as TCS, Infosys & Wipro is expected to generate 30,000 jobs over the next 2 years. . IT/ITeS and ESDM rank among the major focus areas under the new Industrial Policy Resolution (IPR – 2015) launched by the government . . As of November 2016, the state announced its plans to sign a pact with the Software Technology Parks of India (STPI) for setting up 4 new centres at Jajpur, Anugul, Koraput (Jeypur) & Sambalpur. . With launch of interceptor missile at Balasore, Odisha, in February 2017, the country has achieved a milestone by developing a 2-layer Ballisitc Missile Defence System. With this development, India has also entered the 4-nation group with the ability to secure its air space against threats. . In June 2017, an exclusive portal has been developed for RBI by Odisha Space Applications Centre (ORSAC), the apex body for space technology applications in the state. It has been developed with an aim of the financial inclusion goals to be taken forward as a total of 4,253 gram panchayats in Odisha still remain unbanked.
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Key players
. Infosys was set up in 1981. The company recorded revenues of US$ 10.62 billion in 2016-17. It has presence in the areas of IT consulting, modular global sourcing, process re-engineering and BPO services. 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 2017, the company had an employee strength of 200,364 globally. In Odisha, it has a world-class development centre at Bhubaneswar. It has been in Odisha for over a decade, now. The Infosys Ltd development centre at Bhubaneswar anchors Infosys’ relationships with clients from Canada, Europe and North America.
. TCS is among the leading Indian IT services, business solutions and outsourcing companies. It had revenues of US$ 18.30 billion in 2016-17. TCS employs over 387,000 people worldwide with a presence in 55 countries. It has operations in Odisha
Tata Consultancy (in Bhubaneswar) since 2001. The company plans to further strengthen its presence in the state by 2015-16 and create over Services (TCS) 10,000 IT jobs.
. Established in 1945, the company had revenues of US$8.60 billion in 2016-17. It has presence in the areas of IT services, product engineering, technology infrastructure services, BPO and other consulting solutions.
. The company provides services such as application development, deployment and maintenance, business intelligence and Customer Relationship Management (CRM). The company is based in Bengaluru, and has 72 plus development centres and 50 plus industry specific ‘centres of excellence’ in over 54 countries. In February 2008, the company set up a development Wipro Ltd centre in Bhubaneswar.
. Established in 2001, Orisys Infotech is a software development company, which offers services from system applications to business application development. It is involved in a variety of services, such as software development, web solutions, e- commerce, multimedia and search engine optimization. The company is based in Bhubaneswar. Orisys Infotech Pvt Ltd
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. In 2016-17, 12,842,899 domestic tourists & 76,361 foreign tourists Hotel Infrastructure in Odisha (2015-16) visited the state of Odisha. Odisha has vast potential for development of tourism. It is one of the critical sectors of the state’s No. of No. of economy, in terms of foreign exchange earnings as well as Year No. of Beds Hotels Rooms employment generation opportunities. . Bhubaneswar, the capital city of the state, is known as the temple High-Spending Group 383 11,903 25,062 city of India & is home to about 500 temples. Puri, Bhubaneswar & Konark are the main centres for religious tourism. Middle-Spending Group 455 9,219 18,924
. As of March 2017, 357 places of Odisha have been recognized as Low-Spending Group 921 15,264 29,108 major tourist attractions. Total 1,759 36,386 73,094 . In 2016, Chief Minister Shri Naveen Patnaik has decided to launch a new programme ABADHA- Augmentation of Basic Amenities &Development of Heritage & Architecture for holistic development of Puri and transform it to a World class heritage city,allocated Total tourist arrivals in Odisha (millions) US$15.52 million.
. In February 2017, the state government signed a MoU with AirAsia to 14.0
commence direct international flights to Malaysia, to promote in 12.0
bound tourism in Southeast Asia. For the purpose, various new tour 10.0
13.19
packages have been introduced such as Coastal Trek, Jagannath 12.14
8.0
11.12
9.36 Trail, Weekend Gateways, Cycle Tours, Coastal Cruise, etc. 10.13
6.0
8.33
7.64
4.0 6.94
. Many tourism projects have been sanctioned and are underway in 6.40 5.99
2.0 5.28 the 12th plan under various schemes such as Destination Scheme, 4.67 Beach Circuit Development Scheme and Swadesh Darshan 0.0
Scheme.
2014-15 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2015-16 2016-17
Source: Economic Survey of Odisha, Tourism Report, Government of Odisha, Ministry of Tourism, Government of India
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. The Government of Odisha is increasing its focus on eco tourism. . Ortel Communications, Odisha’s biggest multi-system operator, to During 2015-16, the maximum inflow of domestic tourists was provide high speed broadband services with an investment of US$ recorded in December, whereas the inflow of foreign tourists into the 44.62 million to boost the infrastructure in the state. state was maximum in the month of January 2016. Majority of the tourist in Odisha come from from West Bengal and Andhra Pradesh. Funds sanctioned under various schemes to promote tourism During 2015-16, these two states (West Bengal and Andhra in Odisha Pradesh) accounted for around 16.31% share in tourist visits to Year No. of projects Sanctioned amount (US$ million) Odisha.
. During 2015-16, total money inflow in Odisha through tourist 2012-13 2 0.10 spending was recorded to be US$ 1.93 billion which witnessed an 2013-14 12 10.85 increase of 8.74% from money inflow of US$ 1.78 billion in 2014-15.
. Under Budget for 2017-18, an investment of US$ 46.94 million is 2014-15 3 10.76 proposed for the growth and development of the tourism sector.
. The pilgrimage site of Puri has been identified by the Ministry of Tourism for preservation and maintenance under the Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD), which was launched in 2014-15.
. An amount of US$ 11.8 million was sanctioned under PRASAD for the development of coastal circuit in Odisha in 2016-17.
Source: Economic Survey of Odisha, Tourism Report, Government of Odisha, Ministry of Tourism, Government of India
55 ODISHA For updated information, please visit www.ibef.org SINGLE–WINDOW CLEARANCE MECHANISM… (1/2)
Investments handled Under the chairmanship of Nodal agency
Greater than High-level clearance Chief Minister of Odisha US$ 219.4 million authority Industrial Promotion and Investment Corporation of Odisha (IPICOL) (Team Odisha): State-level Between State-level single-window US$ 10.9 and Chief Secretary clearance authority US$ 219.4 million
Less than District-level single-window District Industries District Collector US$ 10.9 million clearance authority Centre
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. The government 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$ 10.9 million.
. The State-level Single-Window Clearance Authority is chaired by the Chief Secretary of the state for projects involving investment 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 and other projects involving investment of US$ 219.4 million or above.
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Agency Description
. IPICOL is a key promotional institution. It was incorporated in 1973 with the main objective of Industrial Promotion and Investment accelerating the pace of industrial development by promoting large and medium scale industries. Corporation of Odisha Limited . In 2014-15, the IPICOL received 26 combined application forms for setting up projects with an (IPICOL) investment of US$ 11.97 billion.
Industrial Development Corporation of Orissa . IDCOL was established in 1962 to promote, establish and run industries in the state. Limited . The corporation, since its inception, has set up 15 industrial units across sectors including (IDCOL) cement, ferrochrome, pig iron and spun pipe.
. IDCO was established with the objective of providing infrastructure assistance for rapid establishment and orderly growth of industry in Odisha. Orissa Industrial Infrastructure Development Corporation . The corporation is engaged in multiple activities that foster rapid industrialisation in the state by developing industrial infrastructure. (IDCO) . In 2012-13, IDCO allotted 352.530 acres of land and sheds to 14 new industrial estates/areas across the state.
. APICOL’s aim is to strengthen the rural economy by providing financial support for promotion and development of agro-based and food-processing industries. Agricultural Promotion and Investment Corporation of Odisha Limited . APICOL provides subsidy to the agro-processing and food-processing units in the state. (APICOL) . In 2009-10, the corporation promoted 145 commercial agro-enterprises with an aggregate investment of about US$ 24,38,619.77 .
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Agency Description
. OSFC is a premier state-level financial institution that was established in 1956 to cater to the needs of industrial development in the state.
Orissa State Financial Corporation . It provides financial assistance to small and medium scale industries in consortium with state- (OSFC) level financial institutions.
. Besides, the corporation also receives financial assistance from the state and central governments, and provides soft loans and margin money for rehabilitation of sick industrial units.
. OPDC is the only public sector undertaking in the fishery sub-sector and aims at carrying on Orissa Pisciculture Development Corporation business in pisciculture in brackish water areas, freshwater ponds and other water sources. Limited (OPDC) . It has launched a number of projects such as supplying fishnet, fuel and fish seeds for the economic development of fishermen. . DEPM has been set up to promote export of goods from Odisha and to provide marketing assistance to SSI units of the state.
Directorate of Export Promotion & Marketing . It disseminates market intelligence, oversees enquiries related to tenders and trade from existing (DEPM) and potential exporters and entrepreneurs.
. It provides guidance in export processing, pricing of export items and on different incentives for exports, granted by the Government of India.
. OSIC was established in April 1972, with the main objective of aiding and assisting SSI units in the state for their sustained growth and development. Odisha Small Industries Corporation Ltd (OSIC) . The corporation has been extending help for marketing support, financial assistance on purchase of raw materials, providing sub-contracting opportunities in the construction sectors and also rendering various other services to SSI units.
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Agency Description
. Established in 1956, OSCHC is the primary authority engaged in encouraging exporters, The Orissa State Cooperative Handicrafts enlarging marketing opportunities, introducing new design and technology and strengthening the Corporation (OSCHC) production base in the handicrafts sector.
Orissa State Electronics Development . OSEDC was established in 1981 as the nodal organisation in the state for promotion of Corporation (OSEDC) electronic industries, both in hardware and software.
. GRIDCO is a Government of Odisha undertaking and was incorporated in April 1995 for power transmission.
Grid Corporation of India Limited . In 2005, GRIDCO’s transmission-related activities were transferred to Orissa Power (GRIDCO) Transmission Corporation.
. Now, GRIDCO is a trading company and is involved in the bulk sale of power to the four power distribution companies in Odisha. It also trades surplus power with neighboring states.
. OSPCB is responsible for managing hazardous waste, bio-medical waste, municipal solid- waste, recycled plastics, batteries as well as manufacture, storage and import of hazardous Orissa State Pollution Control Board chemicals. (OSPCB) . Its functions are broadly classified under areas such as enforcement, advisory, monitoring, research and facilitation.
60 ODISHA For updated information, please visit www.ibef.org CONTACT LIST
Agency Description
Killa Maidan, Cuttack-753 001
Phone: 91-0674-2536640
Directorate of Industries Fax: 91-0674-2536819
E-mail: [email protected]
Website: http://diodisha.nic.in/
IPICOL House, Janpath, Bhubaneswar-751 022
Phone: 91-0674-2542 601 Industrial Promotion and Investment Fax: 91-0674-2543 766 Corporation of Odisha Limited (IPICOL) E-mail: [email protected]
Website: http://www.ipicolorissa.com/
61 ODISHA For updated information, please visit www.ibef.org KEY APPROVALS REQUIRED
Timelines for approvals and clearances
Department Timeline
Incorporation of company Registrar of Companies Registration/Industrial License/Industrial Entrepreneurs District Industries Centres for SSI, Secretariat for Industrial Assistance (Government of Memorandum (IEM) India) for Large and Medium Industries Allotment of land Industrial Infrastructure Development Corporation (IDCO) a) IDCO Permission for land use b) Department of Town and Country Planning (In case industry is located outside an industrial area) c) Local authority/District Collector No-Objection Certificate (NOC) and consent under Orissa State Pollution Control Board (OSPCB) Water and Air Pollution Control Act Forest and environment clearance Ministry of Forest & Environment, Government of India
Approval of construction activity and building plan Concerned Development Authority Distribution Companies- CESU, NESCO, SOUTHCO, WESCO Sanction of electricity Transmission Company- Orissa Power Transmission Corporation Limited (OPTCL) Water supply Department of Water Resources
Factory and boiler clearance Chief Inspector of Factories and Boilers Orissa State Financial Corporation (OSFC), IPICOL, Commercial Banks such as IDBI, Finance ICICI, State Bank of India, etc. Orissa Value Added Tax (VAT) Act, and Central and Commercial Tax Department and Central and State Excise Department State Excise Act
62 ODISHA For updated information, please visit www.ibef.org COST OF DOING BUSINESS IN ODISHA
Cost parameter Cost estimate
Land (per sq m) 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$ 450
Power cost (per kwh) Industries: US 7.5 cents to US 10.4 cents
Labour cost (minimum wage per day) US$ 2.5 to US$ 3.41
Source: Ministry of Labour and Employment, Government of India, Industry sources
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Objectives
Industrial Policy . To revolutionise the state of Odisha into a dynamic industrialised territory. Resolution (IPR) 2015 . To attract investments and promote economic growth in the state of Odisha. Read more
Special Economic Zones . To encourage domestic as well as foreign investments in the state of Odisha. Policy 2015 . To promote economic activities in the state and increase exports from SEZs in Odisha. Read more
The State Reservoir . Tapping the potential of aquaculture to contribute to food and nutritional security. Fishery Policy 2014 . Boosting the public-private partnership investment across the sector. Read more
Information & Communication . Development of new IT/ITeS locations across the state through upgradation of the IT infrastructure by setting up IT Technology (ICT) Policy parks. 2014 Read more
. To promote sustainable tourism with a view to create employment opportunities and to bring about socio-economic Odisha Tourism Policy benefits to the community. 2016 . To give high priority to development and promotion of prime tourism products, conservation of heritage, etc. Read more
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Objectives
State Agriculture Policy . To bring in a shift from the present level of subsistence agriculture to profitable commercial agriculture. 2013 . To promote sustainable agricultural development. Read more
. To promote the use of solar energy in the state in order to support development and address the problem on Odisha Solar Policy 2013 energy security. Read more
Odisha State Urban . To provide universal access to potable piped water supply on 24/7 basis at an affordable price and in an equitable, Water Supply Policy, sustainable and an eco-friendly manner with verifiable service level bench mark for citizens in urban areas of the 2013 State. Read more
. Equal opportunity and experience to enable youth for developing knowledge, skills and competencies to play an State Youth Policy 2013 active role in all aspects of the society Read more
Excise Policy 2017-18 . To adopt excise duty, fee structure and guidelines for the settlement of excise shops and establishments.
Read more
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Objectives
. To create an environment conducive to public/private/community participation and investments in renewable Renewable Energy energy Policy 2016 . To facilitate R&D and development of manufacturing units in the renewable energy sector. Read more
Export Policy 2017 . To provide necessary support to exporting industries with the aim of providing a boost to exports. (Draft) . To establish a institutional mechanism for regular dialogue with export sector. Read more
. To lay down the principles of equitable and judicious use of water for survival of life, welfare of human beings and Water Policy 2007 sustainable as well as balanced growth of the state. Read more
Orissa Public Private . To supplement scarce public resources, create a more competitive environment, help improve efficiencies and Partnership (PPP) Policy reduce costs. 2007 Read more
MSME Development . To encourage new manufacturing capacity based on improved competitiveness. Policy 2016 . To facilitate MSMEs in accessing domestic and export markets. Read more
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Objectives
Entrepreneurship . To bring about a change in the mind-set regarding entrepreneurship through elimination of negative biases towards Development Policy the sector. 2015 . To support start-ups in the state by providing infrastructure facilities, marketing assistance and credit. Read more
Odisha Mobile Towers, . To streamline the process of application and grant of permission for telecom infrastructure within specified time OFC and related lines. Telecom Infrastructure . To facilitate establishment of modern telecommunication infrastructure to provide high speed internet. Policy, 2017 Read more
. To develop a world class “Start-up Hub” in Odisha by 2020
Odisha Startup Policy - . To create a strong institutional framework for effective implementation, monitoring and evaluation of this policy 2016 . To create an enabling environment and supporting eco-system that facilitates at least 1,000 startups in the next five years Read more
67 ODISHA For updated information, please visit www.ibef.org EXCHANGE RATES
Exchange Rates (Fiscal Year)
Year INR equivalent of one US$
2004-05 44.81
2005-06 44.14
2006-07 45.14
2007-08 40.27
2008-09 46.14
2009-10 47.42
2010-11 45.62
2011-12 46.88
2012-13 54.31
2013-14 60.28
2014-15 60.28
2015-16 65.46
2016-17 67.09
Q1 2017-18 64.46
Q2 2017-18 64.29
Q3 2017-18 64.74
Source: Reserve Bank of India, Average for the year
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