odisha - ibef · · 2017-09-08odisha is one of the largest producers of iron and steel in the...

For updated information, please visit www.ibef.org July 2017

ODISHA SCENIC . SERENE . SUBLIME

Table of Content

Executive Summary .…………….….…….3

Advantage Odisha ……..………………….5

Vision ……………………………………….6

Odisha – An Introduction …….………..….7

Budget 2016–17 …………..………...……18

Infrastructure Status ................................19

Business Opportunities ……..……….......39

Doing Business in Odisha ………….…….66

State Acts & Policies …….……..…...........67

For updated information, please visit www.ibef.org ODISHA 3

EXECUTIVE SUMMARY … (1/2)

The state’s economy witnessed high growth rates between 2011-12 and 2016-17, with GSDP of the state

growing at a CAGR of 10.71 per cent. Cumulative FDI inflows in the state, during April 2000 to March 2017,

amounted to US$ 416 million.

Strong economy

Source: Economic Survey of Odisha, CAGR – Compound Annual Growth Rate; GSDP – Gross State Domestic Product

Odisha has emerged as a key state with regards to the mineral and metal based industries. During 2015-16,

total production of minerals in the state was recorded at 239.45 million tonnes as compared to 189.83 million

tonnes in 2014-15. The state produced minerals worth US$ 4.65 billion during April 2016 and February 2017.

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.

Hub for mineral-based

industries

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

was recorded to be 89.9 million tonnes between April 2016 and February 2017. 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.

Strong iron and steel

sector

Odisha is considered to be the aluminium capital of India and is an ideal location for setting up aluminium and

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

million tonnes in 2014-15 to 10.84 million tonnes in 2015-16. It was 11.29 million tonnes between April 2016

and February 2017

Strong bauxite

production


EXECUTIVE SUMMARY … (2/2)

The state is home to a large number of MSME units. The state is amongst the top ten states accounting for

the highest number of MSME enterprises.

Strong growth in

SSI/MSME units

Source: Ministry of Micro, Small and Medium Enterprises, Central Electrical Authority, Economic Survey of Odisha, Ministry of Tourism

Odisha is the first state in India to have undertaken reform and restructuring initiatives in the power sector. As

of June 2017, the state had a total installed power generation capacity of 7338.27 MW. Strong power sector

Note: SSI – Small Scale Industry, MSME – Micro, Small and Medium Enterprises


ADVANTAGE: ODISHA

Policy, fiscal incentives and initiatives

The state offers a wide range of fiscal and policy

incentives for businesses under the Industrial Policy

Resolution, 2007.

Additionally, the state has sector-specific policies for IT

and micro, small and medium enterprises.

The state government has constituted ‘Team Odisha’

to help with investment promotion.

Facilitating infrastructure

Odisha has a up to date social, physical and industrial

infrastructure, and the state government has been

undertaking various infrastructural projects to boost the

infrastructure of the state.

As per state budget 2015-16, US$ 3.05 million was

allocated for Externally Aided Projects (EAP) under

Odisha Urban Infrastructure Development Fund

(OUIDF). Moreover, US$ 6.11 million was earmarked

to develop urban infrastructure in slum areas at

Berhampur Town, with the assistance of World Bank.

Rich labour pool

The state has a literacy rate of 72.87% which is close

to the national average. Owing to strong literacy rate,

large number of skilled labors are available in the state.

Hence, providing a boost in making it an ideal

destination for the mineral-based industry.

Furthermore, the state has a large pool of semi-skilled

and unskilled labour.

March 2014

Thermal

power

installed

capacity:

3.87 GW

June 2017

Thermal

power

installed

capacity:

4.99 GW

Advantage

Odisha

High economic growth

The state’s GSDP grew at a Compound Annual Growth

Rate (CAGR) of 10.7 per cent between 2011-12 and

2016-17.

The tertiary sector was the major contributor to the

state’s GSDP with contribution of 52.3% during 2015-

16.

Source: Economic Survey of Odisha, Central Statistics Office


ODISHA VISION 2022

Source: Confederation of Indian Industry

Infrastructure

To improve connectivity by

increasing road and rail density

and to improve passenger

services.

To provide universal access to

power, irrigation and to improve

urban infrastructure as well.

Industrial

development

To develop industrial parks with

quality infrastructure, to encourage

micro-enterprises as ancillaries and

to pave the way for cost &

technology orientation by

encouraging competition.

Govt. services

and

administration

To enhance the use of

Information Technology (IT)

to ensure transparency and

speed.

To minimize interface between

public and government for

dealings.

Health

To improve rural healthcare system,

to provide quality emergency

healthcare facilities, to patronise

health insurance, to imbibe health

and hygiene content in education

system, etc.

Education & skill

development

Agriculture

To improve the productivity of the

sector, to encourage modern

agricultural practices, to bring

insurance schemes for farmers

against natural disasters, etc.

To foster technical and vocational

education and skill development

programmes.

To establish educational townships.

Vision 2022

To frame concerted strategies to

address various issues of

unemployment and rural well being.

To bring about growth with equity.

To protect historical monuments

through proper renovation.

To nurture and promote classical

music, dance and literature.

Tourism & culture Growth and well-

being


ODISHA FACT FILE

Source: Census 2011, Economic Survey of Odisha

Odisha is located in the eastern region of India. The state shares its

borders with West Bengal in the north-east, Jharkhand in the north,

Andhra Pradesh in the south, Chhattisgarh in the west & the Bay of

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.

Odisha has 3 major seasons, summer (March to June), monsoon

(July-September) & winter (October-February).

Source: Maps of India

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

Female population (million) 25.5

Sex ratio (females per 1,000 males) 989

Literacy rate (%) 72.87


ODISHA IN FIGURES … (1/2)

Parameter Odisha All states Source

Economy 2016-17 2016-17

GSDP as a percentage of all states’ GSDP 3.1 100.0 Directorate of Economics & Statistics of Odisha, Central

Statistical Organisation

GSDP growth rate (%) 10.85 11.52 Directorate of Economics & Statistics of Odisha, Central


Per capita GSDP (US$) 1,324.6 1,799.9 Directorate of Economics & Statistics of Odisha, Central


Physical Infrastructure

Installed power capacity (MW) 7338.27 330,273.65 Central Electricity Authority, as of June 2017

Wireless subscribers (No) 33,868,226 1,164,200,000 Telecom Regulatory Authority of India, as of February

2017

Internet subscribers (No) 9,054,000 391,500,000 Telecom Regulatory Authority of India, as of December

2016

National highway length (km) 4,644.52 100,087.08 NHAI, Roads and Building Department-Government of

India

Major and minor ports (No) 1+2 13+187 India Ports Association 2015

Airports (No) 1 125 Airports Authority of India


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) 19.6 21.6 SRS Bulletin

Investment

Cumulative FDI equity inflows (US$

billion)1 0.416 332.11

Department of Industrial Policy & Promotion, April 2000

to March 2017

Industrial Infrastructure

Operational PPP projects (No) 27 1,246 DEA , Ministry of Finance, Government of India, July

2016

Operational SEZs (No) 3 186 Notified as of February 2016, Ministry of Commerce &

Industry, Department of Commerce, July 2016

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


ECONOMIC SNAPSHOT – GSDP

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

At current prices, Odisha’s total GSDP* was estimated at US$ 58.8

billion during 2016-17.

The state’s GSDP grew at a CAGR* of 10.7 per cent between 2011-

12 & 2016-17.

Source: Directorate of Economics & Statistics of Odisha, Central Statistical Organisation

35

.4

40

.1 45

.3

50

.0

53

.1 58

.8

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 10.7%

Per capita GSDP (US$)

83

7.7

93

9.9

1,0

50

.9

1,1

48

.3

1,2

07

.1

1,3

24

.6

0

200

400

600

800

1,000

1,200

1,400

201

1-1

2

201

2-1

3

201

3-1

4

201

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5

201

5-1

6

201

6-1

7

CAGR 9.59%

Odisha’s per capita GSDP* in 2016-17 was estimated at US$

1,324.6.

Per capita GSDP* of the state grew at a CAGR of 9.59 per cent

between 2011-12 and 2016-17.

Note: * Aranca research estimates based on data available from MOSPI, GSDP- Gross State Domestic Product


ECONOMIC SNAPSHOT – NSDP

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

Odisha’s total NSDP* was about US$ 51.85 billion during 2016-17.

The state’s NSDP* grew at a CAGR of 10.7 per cent between

2011-12 & 2016-17.

31

.2 35

.7

39

.8

43

.8

46

.6 51

.9

0.0

10.0

20.0

30.0

40.0

50.0

60.0

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 10.7%

Per capita NSDP (US$)

73

9.3

83

6.6

92

3.0

1,0

06

.9

1,0

60

.0

1,1

67

.6

0

200

400

600

800

1,000

1,200

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 9.56%

Odisha’s per capita NSDP* in 2016-17 was US$ 1,167.5 .

Per capita NSDP grew at a CAGR of 9.56 per cent between 2011-12

and 2016-17.

Source: Directorate of Economics & Statistics of Odisha, Central Statistical Organisation

Note: * Aranca research estimates based on data available from MOSPI, NSDP- Net State Domestic Product


ECONOMIC SNAPSHOT – PERCENTAGE

DISTRIBUTION OF GSVA

In 2016-17, the tertiary sector contributed the most (43.53 per cent)

to GSVA, followed by secondary (29.2 per cent) and primary (27.27

per cent) sectors.

During 2011-12 to 2016-17, the tertiary sector recorded the highest

CAGR (12.32 per cent), followed by the secondary (8.81 per cent)

and primary (7.74 per cent) sectors.

30.16% 27.27%

30.74%

29.20%

39.09% 43.53%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011-12 2016-17

Primary Secondary Tertiary

7.74%

12.32%

8.81%

CAGR

Source: Directorate of Economics & Statistics of Odisha

Gross State Value Added by economic activity at current basic

prices


ECONOMIC SNAPSHOT – AGRICULTURAL

PRODUCTION

Food grain production in the state reached 6,411.4 thousand tonnes

in 2015-16. Further, 1.26 million hectares of land was under

cultivation of horticulture crops and the total production in the state

stood at 10.799 million metric tonnes.

Sugarcane production in the state stood at 567.1 thousand tonnes in

2015-16.

As per state budget 2016-17, the state government recommended to

initiate a start-up fund in order to endorse entrepreneurship across

the agriculture sector. Further, provision of US$ 2.01 billion has been

made by the state government under Plan & Non Plan outlay for the

Agriculture Departments.

The state government also proposed to enhance the post-harvest

management practices in the state. For enhancement of millet

production & productivity across tribal areas of the state, the state

government decided to implement “Special Programme for Millet in

Tribal Areas” during 2016-17.

In order to support the efforts being implemented for the

endorsement of agri-entrepreneurship across the state, the state

government has also decided to launch a new agri start-up

programme, as per Budget 2016-17.

As per State budget 2017-18,the state government has proposed the

sum of US$ 38.8 million take up micro-irrigation under PMKSY with

a State Share of 40 per cent .

Source: Department of Agriculture, Cooperation & Farmers Welfare, Government of India

Rice 5,795.1

Wheat 2.0

Fruits 2430.10

Vegetables 8760.09

Flowers 72.88

Aromatic 0.61

Spices 181

Plantation crops 319.39

Honey 1.01

Onion 369.5

Coarse Cereals 160.8

Food grains 6,411.4

Pulses 454.1

Agriculture production in Odisha – ‘000 tonnes (2015-16)


ECONOMIC SNAPSHOT – FDI INFLOWS &

INVESTMENTS

According to the DIPP, cumulative FDI inflows in the state during

April 2000 to March 2017 stood at US$ 416 million.

In June 2015, the state government announced plans to facilitate

growth in the manufacturing sector with an yearly increase of 15 per

cent till 2020. As per the state government investment plans, the

contribution of manufacturing sector in the overall GSDP of the state

is projected to reach 27 per cent by 2020.

In order to increase the employment opportunities in the state,

Odisha government has announced plans to invest US$ 28.69 billion

in the manufacturing sector generating nearly 3 lakh job

opportunities by 2020.

In line with the Centre's ambitious & flagship ‘Make in India’ initiative

to develop the country as a manufacturing hub, the Government of

Odisha bagged investment commitments worth US$ 30.54 billion

during the ‘Make in Odisha’ conclave.

Tata Steel is eying foreign companies to invest in heavy industries

sector in the special economic zone project in Odisha over next 5

years.

In January 2017, Tata Steel entered into an agreement with

Chennai-based - Creative Port Development, at an estimated

amount of US$17.85 million, for the proposed development

of Subarnarekha Port at Chaumukh village in Balasore district.

FDI equity inflows, 2008-09 to 2016-17 (US$ million)

9

149

15

28

52 48

9 6 12

0

20

40

60

80

100

120

140

160

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

Source: Department of Industrial Policy & Promotion, Economic Survey of Odisha, News articles

In April 2017, Odisha government approved investment worth US$

263.33 million in nine different sectors in State Level Single Window

Clerance Authority (SLWCA) meeting. The move is expected to

create employment opportunities for 3,204 people.


ECONOMIC SNAPSHOT – EXPORT TRENDS

According to the Ministry of Commerce & Industry, total exports from

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 to 2015-2016.

The growth has mainly been on account of increase in the value of

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

The state has been a major exporter of both mineral & metallurgical

products, which account for around 18.89% & 40.88% of the state’s

total exports, respectively.

During 2015-16, total exports of seafood products from the state

reached to US$ 273.11 million. In addition, the state government is

targeting to ensure export of seafood products worth US$ 458.29

million during 2016-17.

The Government of Odisha has recognized various sectors for the

promotion & facilitation of the exports from the state. The sectors that

have relatively higher preference of the state government are

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

2.80

3.4 3.2

2.7

3.7 3.5

2.0

3.1 3.4

2.9

6.3

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

200

6-0

7

200

7-0

8

200

8-0

9

200

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201

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CAGR 8.5%

Exports trends (US$ billion)


ANNUAL BUDGET 2016-17

Source: Government of Odisha, Finance Department

Sr No Sector US$ (million)

1 Agriculture Department 2,013.73

2 Co-operation Department 278.29

3 Skill Development & Technical Education 96.19

4 Energy Department 427.88

5 Fisheries and Animal Resources

Development Department 103.81

6 Food Supplies and Consumer Welfare

Department 145.82

7 Forest and Environment Department 92.15

8 General Administration Department 36.77

9 Handlooms, Textiles & Handicrafts

Department 33.27

10 Health and Family Welfare Department 728.97

11 School & Mass Education and Higher

Education 2,046.49

12 Housing and Urban Development

Department 512.84

Sr No Sector US$ (million)

13 Information Technology Department 19.95

14 Labour & Employees State Insurance

Department 7.63

15 Panchayati Raj Department 1,292.23

16 Planning and Co-ordination Department 124.54

17 Revenue and Disaster Management

Department 497.84

18 Rural Development Department 991.42

19

Scheduled Tribes and Scheduled Caste

Development, Minorities and Backward

Classes Welfare Department

433.10

20 Tourism and Culture Department 37.05

21 Transport Department 58.63

22 Water Resources Department 1,106.27

23 Women and Child Development Department 717.01

24 Works Department 691.17

Annual State Plan ceiling of major departments



PHYSICAL INFRASTRUCTURE – ROADS

Source: Economic Survey of Odisha, National Highways Authority of India, Odisha Budget – 2016-17

Odisha has around 253,050.8 km of roads, including 4,644.52 km of

national highways & 5,086.1 km of state highways.

The state is well connected to its neighbouring states & other parts

of India through 15 National Highways. The state had a road density

of 161.1 km per 100 square km of area.

Budget highlights:

• US$ 691.17 million has been proposed for the maintenance of

roads, public building and bridges under the Works Department.

• Under State Plan, US$ 446.25 million has been provided for

enhancing 950 km of roads and establishment of 34 bridges in

the state.

• For doubling laning of 75 km long state highways which are

under State Highway Development Programme, US$ 76.38

million will be provided by the state government.

• US$ 130.17 million and US$ 76.49 million will be provided for the

upkeep of roads & bridges as well as buildings, respectively

during 2016-17.

• Moreover, US$ 6.87 million & US$ 6.11 million will be made

available for the road projects under PPP & enhancement of

PWD roads in Urban areas, respectively.

• For enhancing the connectivity between Western Odisha & KBK

districts, an amount of US$ 22.91 million will be provided under

the new scheme “Biju Expressway”.

Road type Road length (km) (as of 2015-16)

National highways 4,644.52

State highways 5,086.1

District roads 11,685.0


PHYSICAL INFRASTRUCTURE – RAILWAYS

Odisha has railway track length of 2,540 km.

Odisha serves as a link between eastern & western India through the

railway network of the South Eastern Railways & the East Coast

Railways.

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.

As per budget 2016-17, US$ 39.71 million has been proposed by the

state government for developing new railway projects such as the

ongoing Khurda-Bolangir line, new Jaypore-Malkangiri, Jaypore-

Nabarangpur railway lines, etc. in the state through direct state

funding as well as SPVs.

The provision for enhancement & upgradation of Bhubaneshwar

railway station has also been done by the state government.

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.

The government, sanctioned 2 new railways industrial projects worth

US$ 758.89 million in Odisha, for rail infrastructure development

Source: Economic Survey of Odisha, News articles

In March 2017, the state government started several projects to

strengthen & develop rail infrastructure in the state. US$ 364.8

million worth of investments would help in mobilising minerals &

encourage tourism.



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. 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 project is expected to be completed

by December 2016.

IndiGo has decided to run 1 flight each from Biju Patnaik

International Airport to Delhi & Kolkata from September 2016.

In June 2016, Government of Odisha offered subsidy to international

flight operators for introducing direct flights from Biju Patnaik

International Airport to Singapore & Bangkok. 2 Singapore airlines

that are showing interest in flying international flights from Biju

Patnaik International Airport are Tiger Air & Silk Air.

Under the National Civil Aviation Policy, the Airports Authority of

India undertook the revival of air strips in Jharsuguda, Odisha.

Source: News articles, Airports Authority of India Domestic airport


PHYSICAL INFRASTRUCTURE – AIRPORTS … (2/2)

Source: AAI (Airports Authority of India)

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

1998 2,667 2,286 3,324 4,022 5,950 7,002 8,239

0.8

3 1.0

4 1.2

5

1.3

9

1.3

4

1.4

9

1.8

9

2.3

3

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0.9

1.3

1.7

2.1

2.5

200

9-1

0

201

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1

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201

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Bhubaneshwar passenger traffic (million)

10

,70

6

11

,72

8 1

4,6

72

14

,22

0

11

,75

2

12

,51

2

14

,03

6

17

,07

8

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

200

9-1

0

201

0-1

1

201

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2

201

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201

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201

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201

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7

Bhubaneshwar aircraft movement (nos.)

Freight handled at Bhubaneshwar (tonnes)


PHYSICAL INFRASTRUCTURE – PORTS

Paradeep port is connected with the broad-gauge rail link of the East-

Coast Railway & is also served by National Highway-5A.

During 2015-16 (up to December 2015), Pardeep port handled 55.13

million tonnes of cargo traffic. During 2016-17, under the state’s

Sagarmala Programme, the state government has proposed to

establish an outer harbor to the south of South Break Water for

handling the vessels at the port.

Tata Steel acquired majority stake in Creative Port Development Pvt

Ltd, for the proposed development of “Subarnarekha Port” at

Chaumukh village of Balasore district in Odisha.

In May 2017, the state government signed five MoUs with 5 different

companies for the construction of 2 minor ports. The ports are to be

constructed at Astarang in Puri district & Subarnarekha in Balasore

district.

2013-14 2014-15 2015-161

68,003 71,011 48,937

Source: India Ports Association, 1During April-November 2015

Major ports Paradeep

Minor ports Gopalpur

Behrabalpur (Balasore)

Commodity 2013-14 2014-15 2015-161

Petroleum, oil &

lubricants 26.6% 25.7% 26.6%

Iron 3.3% 0.7% 1.0%

Fertilisers 7.0% 4.8% 6.0%

Coal 49.8% 54.9% 52.6%

Container 0.1% 0.2% 0.2%

Others 13.2% 13.8% 13.6%


Gopalpur

(Ganjam)

Paradip

(Jagatsinghpur)

Behrabalpur

(Baleshwar)

Export volume for Paradeep port

Total exports from Paradeep port (‘000 tonnes)

Ports


PHYSICAL INFRASTRUCTURE – POWER … (1/2)

Odisha is the 1st state in the country to bring in power sector

reforms.

As of June 2017, Odisha accounted for a total installed power

generation capacity of 7338.27 MW, comprising 2,488.22 MW under

state utilities, 3127.15 MW under the private sector & 1,772.90 MW

under central utilities.

Of the total installed power generation capacity, 4992.90 MW was

contributed by thermal power, 2150.92 MW by hydropower & 194.15

MW by renewable power.

As per budget 2016-17, the state government announced its plans to

allocate US$ 91.65 million for setting up 550 of 33/11 KV sub-

stations during 2016-17 to ensure uninterrupted power supply to

people in the state.

As of 2015-16, 15,539 habitations in addition to 182,602 BPL

households were electrified under the “Biju Gram Jyoti Yojana” & the

state government proposed an amount of US$ 38.95 million for this

scheme during 2016-17.

Under the Integrated Power Development Scheme, the Government

of Odisha has provided US$ 7.63 million for the development of

power sector. Moreover, towards the 2 centrally sponsored

schemes: Deendayal Upadhyaya Gram Jyoti Yojana & Rajiv Gandhi

Grameen Vidyutikaran Yojana, the state government has proposed

investment of US$ 15.27 million under each during 2016-17.

Source: Central Electricity Authority

Installed power capacity (MW)

5,3

78

.60

5,9

96

.30

6,9

46

.30

7,7

21

.80

9,0

36

.36

9,4

21

.52

8,5

38

.27

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7(1

)

As of March 2017, companies like NTPC, Adani Power & JSW

Energy are planning to take over coal fired power plants in the state,

which have either started commercial operations or are at very

advanced stages of commissioning.


PHYSICAL INFRASTRUCTURE – POWER … (2/2)

Sonthalia Group, Kolkata plans to set up a 600 MW mega solar park

in Odisha. As of November 2016, the group has sought 1,250

hectares of government land on a long-term lease for 35 years.

In February 2017, for ensuring 24x7 electricity supply of SC, ST

ashram schools located in remote areas, the state government has

planned to install solar photovoltaic systems in 147 schools, at an

estimated cost of US$ 4.95 million.

Odisha Power Generation Corporation (OPGC) has increased its

equity base by US$ 72.14 million to expand the capacity of the

company’s thermal power station. As of March 2016, OPGC

operates a 420 MW coal-based thermal power plant in Jharsuguda

district, and is in the process of expanding the capacity by 1,320

MW.

Segment Company1

Power generation

company

Odisha Power Generation Corporation

Limited (OPGC)

Power transmission

company

Odisha Power Transmission

Corporation Limited (OPTCL)

Central Electricity Supply Utility of

Odisha (CESU)

Power distribution

companies

Western Electricity Supply Company of

Orissa Limited (WESCO)

North Eastern Electricity Supply

Company of Odisha Limited (NESCO)

Southern Electricity Supply Company of

Odisha Limited (SOUTHCO)

Central Electricity Supply Utility of

Odisha (CESU)

1OPGC, OPTCL and CESU are state government owned. WESCO, NESCO and SOUTHCO are private companies under Reliance Energy


AMRUT AND SMART CITIES … (1/2)

Source: Ministry of Urban Development

Cities Population

Bhubaneswar 840,834

Berhampur 310,976

In September 2015, 6 cities of Odisha were announced to be

developed as a smart cities. In August 2015, only 2 cities were

shortlisted 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

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.

Bhubaneswar

Rourkela

Smart cities in Odisha


AMRUT AND SMART CITIES … (2/2)

Source: Ministry of Urban Development, Government of India

Number of AMRUT cities with population

less than 1 million 9


in the range of 1 – 10 million 0


greater than 10 million 0

Total number of AMRUT cities 9

S. No. City/town

1. Bhubaneswar town

2. Cuttack

3. Brahmapur

4. Rourkela town

5. Puri

6. Sambalpur town

7. Baleshwar town

8. Baripada town

9. Bhadrak

9 cities in the state were identified under Atal Mission for

Rejuvenation & Urban Transformation (AMRUT) as of October 2015.

As per budget 2016-17, for the selected 9 AMRUT cities of Odisha,

the state government has decided to allocate an amount of

US$21.41 million under AMRUT (Atal Mission for Rejuvenation &

Urban Transformation) in order to deliver these cities with enhanced

basic services.

Classification of AMRUT Cities in Odisha on the basis of

population

Cities/ Towns in Odisha covered under AMRUT


PHYSICAL INFRASTRUCTURE – TELECOM

As of February 2017, the state had an overall tele-density of 79.79

per cent.

According to the Telecom Regulatory Authority of India (TRAI),

Odisha had 33.86 million wireless subscribers and 290,072 wire-line

subscribers, as of February 2017.

By the end of February 2017, 5,348,130 subscribers had submitted

request for mobile number portability in Odisha.

As of December 2015, the state had 8,169 post offices.

Source: Telecom Regulatory Authority of India, Department of Telecommunications 1As of December 2016

Wireless subscribers 33,868,226

Wireline subscribers 290,072

Internet subscribers(1)

9,054,0001

Tele density (in %) 79.79

No. of GPs in Phase-I 3,388

Pipe laid (kms.) 4,748

Cable laid (kms.) 3,699

GPs for which cable laid 1,629

No. of GPs Lit 104

Major telecom operators in Odisha

Bharat Sanchar Nigam Limited (BSNL)

Bharti Airtel

Vodafone Essar

Reliance Communications

IDEA Cellular

Aircel Limited

Tata Teleservices

Telecom Infrastructure (As of February 2017)

Performance status of NOFN project (as of April 2016)


DEVELOPMENT PROJECTS: URBAN

INFRASTRUCTURE

Odisha has an abundant water supply, endowed with approximately 11 per cent of the country’s water resources. Under the State Plan for

providing the water supply across bare & moderately covered urban wards of the state, the state government has projected to allocate US$ 22.91

million during 2016-17. However, for the preservation of various urban roads as well as water supply projects under Non-Plan, an allocation of

US$ 34.11 million has been made during 2016-17.

As per the budget 2016-17, the Government of Odisha has allocated an amount of US$ 512.84 million under the Housing and Urban Infrastructure

Department during 2016-17. Further, the work on execution of new sewerage projects has been taken up and an amount of US$ 26.73 million has

been proposed by the state government for the scheme of Urban Sewerage in the state.

Further, under the Externally Aided Project (EAP), the state government has decided to provide an amount of US$ 3.05 million for Odisha Urban

Infrastructure Development Fund of the state. Moreover, under the guidance of JICA, the next phase of Urban Sewerage & sanitation related

EAPs in Cuttack & Bhubaneshwar is being implemented, for which an allocation of US$ 30.55 million has been projected by the state government

as per the budget 2016-17.

In order to provide the slums of Berhampur town with urban infrastructure under the guidance of World Bank, an allocation of US$ 6.11 million will

be made during 2016-17. Moreover, under the Pradhan Mantri Awaas Yojana (PMAY), the state government has made an allocation of US$ 46.05

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


DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE

PARTNERSHIP (PPP) PROJECTS

Source: Ministry of Finance, Government of India

Project name Sector Type of PPP Project Cost (US$ million) Stage

Kirtania Port Subarnarekha Mouth Transport Build-Own-Operate-

Share-Transfer 334.10 Under construction

Jaipur Cluster Project Social and commercial

infrastructure Build-Own-Operate 9.55 Operational

Improvement to Putaspanga Bamberi

Road Transport Build-Operate-Transfer 10.39 Operational

Hop on Hop Tourist Bus Terminal Social and commercial

infrastructure Management Contract 3.82 Under construction

Gopalpur Port Transport Build-Own-Operate-

Share-Transfer 992.97 Operational

IT & Commercial Complex (Rourkela) Social and commercial

infrastructure Build-Operate-Transfer 11.75 Operational

Haridaspur-Paradip Railway Line Transport Build-Own-Operate-

Transfer 238.19 Under construction

Astaranga Port Project Transport Build-Own-Operate-

Share-Transfer 992.97 Under construction

Water Supply Project (IIT-NISER) Water sanitation Design-Build-Finance-

Operate-Transfer 28.68 Under construction

Solid Waste Management

(Bhubaneswar-Cuttack) Water sanitation

Design-Build-Finance-

Operate-Transfer 30.55 Under construction

Development of Deep Draught Coal

Berth at Paradip Port Transport Build-Operate-Transfer 62.45 Under construction

Sambalpur-Bargarh NH-6 Road Project Transport Build-Operate-Transfer

Toll 138.86 Operational

Road Upgradation (Sambalpur-

Rourkela) Project Transport

Build-Operate-Transfer

Toll 197.46 Under construction

Angul Sukinda new railway line Transport Build-Operate-Transfer

(BOT) 63.77 Under construction


DEVELOPMENT PROJECTS: SEZs AND INDUSTRIAL

ESTATES

Source: Ministry of Commerce & Industry, Government of India, IDCO – Odisha Industrial Infrastructure Development Corporation

The state has 15 SEZs as of July 2016, of which, three are

operational, 5 are notified & 7 are formally approved.

The state has 2 operational IT SEZ with 1 located in Bhubaneswar &

the other located in Jatni Tehsil, as of July 2016. Odisha also has 1

operational SEZ for production & export of aluminum which is located

at Jharsuguda district.

IDCO is the main developer for forty% of the formally approved

SEZs. The state has 86 industrial estates.

As of September 2015, employment was generated for 2,043 people

through SEZs in Odisha.

Industry Location SEZs (No)

IT/ITeS Khurda 3

Multiproduct Ganjam 1

Metal based SEZ Jajpur 1

Mineral based industries Ganjam 1

Manufacture & export

Of aluminium Jharsuguda 1

Formally approved SEZs (As of July 2016)

Operational SEZs in Odisha (As of July 2016)

Industry Location SEZs (No)

Orissa Industrial

Infrastructure

Development

Corporation (IDCO)

Bhubaneswar IT

Orissa Industrial

Infrastructure

Development

Corporation (IDCO)

Jatni IT (Knowledge

Park)

Vedanta Aluminium

Limited

Brundamal and

Kurebaga villages

Manufacture and

export of aluminium


SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)

As of 2014-15, there were 6 dental colleges, 155 engineering

colleges, 35 MCA colleges, 84 MBA colleges and 100

polytechnics/engineering schools in Odisha. In addition, their were 8

medical colleges in the state.

The major universities in the state are Utkal University & Biju Patnaik

University of Technology; popular colleges are Orissa Engineering

College & Sriram Chandra Bhanj Medical College.

The state is also home to premier institutions such as National

Institute of Technology (NIT) Rourkela, Xavier Institute of

Management & National Institute of Science Education & Research.

Under the Universal Immunisation Programme (UIP), the Odisha

government announced its plans to expand rotavirus vaccine in

Odisha as well other than 4 states pan-India, as of February 2017.

As per the state budget 2016-17, a provision of US$ 2.04 billion has

been made for the School & Mass Education Department & higher

education department during 2016-17. On the basis of growing

success of “Distribution of free bicycles to Class-X students”, the

state government has proposed to increase the allocation of bicycles

for covering the students of Class IX and X during 2016-17.

Moreover, for delivering the quality education across SC & ST

students of the state in association with the urban educational

institutions, the state government has projected an amount of US$

1.61 million.

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

Medical Colleges 8

Dental colleges 6

Engineering colleges 155

MCA colleges 35

MBA colleges (Pvt+ Govt.) 84

Polytechnics/engineering schools 100

Universities 18

Colleges 2,447

Educational infrastructure (2014-15)


SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)

In 2014-15, Odisha recorded a literacy rate of 72.87% out of which

the male literacy rate was 81.59% and the female literacy rate was

64.01%.

In 2014-15, Odisha had around 35,928 primary schools with 20,427

upper primary schools and 9,400 high schools.

During 2015-16 (up to December 2015), for providing the W—Fi

services in Central University of Orissa, Bhubaneshwar, an amount

of US$ 649.29 thousand was approved by the central government.

Moreover, for a period of 2012-17, 3 proposals for the establishment

of new universities through clustering of colleges and 3 proposals for

setting up of new universities through up-gradation of autonomous

colleges have been received by the state.

In May 2017, the state government decided to impart

entrepreneurship training to at least 10,000 people this year. The

training will be organised by the Institute of Entrepreneurship

Development, Bhubaneswar, District Industry centres and Coir

Board.

Source: Economic Survey of Odisha; Odisha Budget 2016-17, RUSA - Rashtriya Ucchatar Shiksha Abhiyan

Literacy rate 72.87

Male literacy 81.59

Female literacy 64.01

Number of schools

Primary: 35,928

Upper primary: 20,427

High schools: 9,400

School-dropout rate (%)

Primary: 1.97

Upper primary: 2.40

High Schools: 16.49

Pupil-teacher ratio Primary: 28:1

Upper primary: 24:1

Net-enrolment ratio in schools (%) Primary: 93.61

Upper primary: 91.57

Source: Census 2011

Literacy rates (%)

Odisha primary education statistics (2014-15)


SOCIAL INFRASTRUCTURE – HEALTH

In 2014-15, the state had 519 ayurvedic hospitals, 9 unani

dispensaries, 413 community health clinics, 1,329 primary health

centres and 80 mobile health units.

Under plan and non plan expenditure, US$ 728.97 million has been

allocated for the Health and Family Welfare Department in the state

budget 2016-17. Odisha State Medical Corporation (OSMC)

established by the Government of Odisha to supply free of cost

drugs to the health facilities in Odisha. As per state budget 2016-17,

US$ 33.96 million was allocated for OSMC to purchase drugs.

Under National Health Mission, the centrally sponsored scheme

instituted by the Government of India to improve the health care

sector, the Government of Odisha proposed to allocate US$ 182.88

million in the state budget for 2016-17.

Moreover, for the development of health care institutions

infrastructure in the state, an amount of US$ 116.86 million has been

projected by the state government during 2016-17. The work on

construction of five new medical colleges in five districts of the state

has been initiated for which the state government has projected an

amount of US$ 93.95 million during 2016-17.

Source: Central Bureau of Health Intelligence, Government of India, Ministry of Health and Family welfare, Economic Survey of Odisha, 1Per thousand persons, 2Per thousand live births,

Active primary health centres 1,329

Active sub centres 6,691

Active community health centres 413

Active district hospitals 36

Active sub district hospitals 27

Population served per hospital bed 1,386

Birth rate1

19.6

Death rate1

8.4

Infant mortality rate2

51

Male (2011-15) 64.3

Female (2011-15) 67.3

Health indicators (2014-15)

Life expectancy at birth (year)

Health infrastructure (2014-15)


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. As per the budget 2016-17, the state government has allocated US$ 37.05 million for the endorsement

of culture, tourism as well as heritage of the state during 2016-17.

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.


INDUSTRIAL INFRASTRUCTURE … (1/3)

As a part of the state government-enacted Orissa Industries

(Facilitation) Act, 2004, a single-window clearance system was

implemented in the state. This was done with the aim of facilitating

the growth of industries and creating an attractive environment for

both domestic and international investments.

IDCO and NALCO have signed an MoU to develop an ancillary and

downstream aluminium park at Angul over 450 acres of land.

A mega food park is being established near Bhubaneswar over 282

acres through the PPP mode. IDCO is the nodal agency for the

establishment of this park.

For industrial development in the state, Government of Odisha

announced plans to invest US$ 18.84 million for MSME sector. Major

initiatives under this investment are-

• Biju Atma Nijukti Yojana (BANY)

• National Mission on Food Processing(NMFP)

• Incentives for food processing industries

• Capacity building of entrepreneurs

• VAT re‐imbursement

• Subsidy under MSME Policy 2009

In December 2016, ITC declared that the company will establish its

consumer goods facility and a five star hotel in the state, with an

investment of US$ 122.21 million.

As per the budget 2016-17, the state government will allocate US$

3.36 million towards the incentives for IPR (Industrial Policy

Resolution). Moreover, for the enhancement of industrial

infrastructure in the state, US$ 1.52 million will be provided as a

financial assistance to IDCO during 2016-17.

Further, the state government has also projected to assign US$ 1.52

million under the initiative of BANY (Biju Atma Nijukti Yojana) during

2016-17.

For the endorsement as well as financial assistance to MSME units

of Odisha, the state government has decide to allocate US$ 4.73

million and it has also been decided that for the establishment of

Infrastructure Development Fund (IDF), an amount od US$ 1.52

million will be allocated during 2016-17.

In April 2017, the Odisha government approved an investment of

US$ 263.33 million in nine different sectors. The move will create

employment for 3,204 people.

Source: Economic Survey of Odisha, DCO – Odisha Industrial Infrastructure Development Corporation, MoU – Memorandum of Understanding

Key Industrial zones

Talcher-Angul

Kalinganagar-Duburi

Bhubaneshwar-Khurda

Rayagada-Sunabeda

Gopalpur-Chatrapur

Paradip-Jagatsinghpur

Jharsuguda-Brajarajnagar



Industrial zones Description

Infocity

The IT park is spread over 350 acres in Bhubaneswar and has IT companies such as Infosys, Wipro,

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.

Fortune Tower It has a built-up space of 350,000 sq ft in a hi-tech steel and glass structure equipped with high-speed

connectivity in Bhubaneswar and is home to a number of IT companies.

Industrial Infrastructure Development

Corporation (IDCO) Tower

It is a strategically located, 11-storeyed business centre in Bhubaneswar and has a number of IT/ITeS

companies.

Special economic zones (SEZs)

The Chandaka Industrial Estate in Khurda is an IT/ITeS SEZ developed by the Orissa Industrial

Development Corporation. Nine more SEZs have been given formal approval and five had been

notified by the Government of India.

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

Bhubaneswar, Rourkela and Berhampur.

Mega food park

The state government is planning to establish a mega food park near Bhubaneswar over 282 acres in

PPP mode. Odisha Industrial Infrastructure Development Corporation (IDCO) is the nodal agency for

establishment of the park.



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

Category MSME units (No)

Repairing & services 46,441

Food & allied sectors 27,284

Engineering & metal 13,887

Textiles 9,162

Glass & ceramics 9,257

Forest & wood based 7,572

Miscellaneous manufacturing 6,946

Paper & paper products 3,187

Chemical & allied sectors 3,038

Rubber & plastics 1,858

Electrical & electronics 1,204

Livestock & leather 465


KEY INDUSTRIES

Odisha’s industries are based mainly on the natural resources

available in the state. It carries more than 35% of country’s natural

resources.

Forest-based products provide livelihood to a large section of the

population of the state. Agriculture and allied sectors have provided

employment, directly or indirectly, to more than 60.0% of the state's

total workforce.

The state has significant reserves of iron ore, bauxite, nickel, coal,

etc. Hence, it is an attractive destination for mineral-based industries.

The state is one of the top producers of aluminium in the country,

both in terms of production capacity as well as actual production.

As of November 2016, Odisha released the draft of its first

Biotechnology policy. The state aims to become one of the top five

bio-tech hubs in the country. The state government has proposed to

set up a fund with an investment of US$ 3.73 million and provide land

on priority for setting up of biotechnology projects. Year Number Proposed Investments (US$ billion)

2012-13 58 10.55

2013-14 40 16.37

2014-15 27 4.68

2015-161

23 4.02

Source: Economic Survey of Odisha, DIPP, 1Up to October 2015, IEM: Industrial Entrepreneur Memoranda, LOI: Letters of Intent; DIL: Direct Industrial Licenses

Key Industries in Odisha

Iron and steel, and ferroalloy

Aluminium

Handloom

Agro-based industry

Mining

IT/ITeS

Electronics

Tourism

Investment intentions in terms of IEMs filed, LOIs / DILs issued


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 per cent 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 2015-16 (up to December 2015), Rourkela Steel Plant produced 2.30 million tonnes of hot metal, 111 thousand tonnes of pig

iron (for sale) and 1.58 million tonnes for production of finished steel (for sale).

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 Paradeep,

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.

In December 2016, Tata Steel signed an agreement with Brahmani River Pullets Ltd (BRPL), for acquiring 100% equity shares of the company.

In March 2017, JSW Steel Ltd. of Jindal Group has decided to setup a mega steel project of 10 million tonnes capacity in Jagatsinghpur district.

The company has proposed to set up an integrated steel project with a captive power plant of 900MW capacity with an investment of US$ 7.43

billion.

Source: Economic Survey of Odisha, State Budget 2016-17, MTPA: Million tonnes per annum



… (2/3)

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

Key ferro-alloy industries in Odisha



… (3/3)

Tata Steel

POSCO India Pvt Ltd

Visa Steel Ltd

Visa Steel Ltd is a subsidiary of VISA Infrastructure Ltd. It produces pig iron, coke and chrome ore. In 2015-16, the company

recorded consolidated revenues of US$ 199.07 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

Kalinganagar industrial complex.

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 2015-16 was recorded to be US$ 17.89 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

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.

Key players

Essar Steel

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 Paradeep in Odisha .


KEY INDUSTRIES – ALUMINIUM … (1/2)

Odisha ranks first in India in terms of both production capacity and

actual output of aluminium.

Odisha is considered to be the aluminium capital of India and is an

ideal location for setting up aluminium and aluminum-based

companies due to the presence of more than half of the country’s

bauxite reserves, in the state, and presence of Vedanta, Hindalco

and NALCO in Odisha. Bauxite production in the state increased

from 9.3 million tonnes in 2014-15 to 10.84 million tonnes in 2015-16.

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

In May 2016, with total investment of US$ 114.57 million, NALCO

and IREL (Indian Rare Earths Limited) have agreed to establish a

one-lakh TPA titanium slag project in the state’s Ganjam district in

the coming years.

Bauxite 10.84

Alumina 1.95

Source: Indian Bureau of Mines, NALCO: National Aluminium Company Limited,1Up to December, 2014

Bauxite and Alumina production by NALCO (million tonnes)

(2015-16)


KEY INDUSTRIES – ALUMINIUM … (2/2)

National Aluminium Co

Ltd (NALCO)

Hindalco Industries

Ltd (HIL)

Vedanta Group

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$ 11.20 billion in 2015-16

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.

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$ 1.05 billion in 2016-17.

It employs some of the world’s finest technologies used in the aluminium industry. In 2014, NALCO established an

aluminium park in Angul in a joint venture with IDCO.

Hindalco Industries Ltd recorded consolidated revenues of US$ 15.28 billion during 2015-16.

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

2000. HIL produces 161,400 tonnes per annum (TPA) of aluminium from its plant at Hirakud

Key players


KEY INDUSTRIES – SSI, HANDICRAFT AND COTTAGE

INDUSTRIES … (1/2)

Odisha’s SSI is characterised by low capital investment requirement,

low gestation periods, high value addition and high export promotion

prospects.

The Odisha State Cooperative Handicrafts Corporation is engaged in

strengthening the production base, enlarging marketing

opportunities, encouraging exporters and introducing new designs

and technology in the handicrafts sector. According to state budget

2016-17, an amount of US$ 33.27 million has been proposed for

various schemes under the handloom, textile and handicrafts sectors

in the state.

Moreover, the state government also proposed a new scheme under

the Odisha Craft Skill Development and Rural Employment “Utkarsh”

project, at an estimated cost of US$ 10.69 million, as per the 2016-17

budget.

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 2015-16, 125

thousand hectares of area was under cotton production, while the

yield of cotton in the state was recorded to be 544 kgs 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.

Training Center Location

Multi Disciplinary Training Centre Bhubaneswar

Sambalpur Silk & Gramodyog Samiti, National

Rural Resource Education & Training Centre Deogarh

Source: Economic Survey of Odisha

Training Centres controlled by Khadi and Village Industries

Commission (KVIC) in Odisha


KEY INDUSTRIES – SSI, HANDICRAFT AND COTTAGE


Handloom Marketing Assistance (HMA) 109.49

Ambedkar Hastshilp Vikas Yojna (AHVY) 1,120.29

Marketing Support and Services (MSS)

Scheme 165.48

Human Resource Development (HRD)

Scheme 63.65

Infrastructure 36.83

Design 11.94

R&D 11.45

Financial assistance to handloom weavers (in US$ million)

1.15

0.45

0.10

0.57

0.00

0.20

0.40

0.60

0.80

1.00

1.20

2012-13 2013-14 2014-15 2015-16

Source: Ministry of Textiles, Government of India

Funds released under National Handloom Development

Programme (2014-15) – US$ ‘000

Training Centres controlled by Khadi and Village Industries

Commission (KVIC) in Odisha


KEY INDUSTRIES – AGRICULTURE AND FERTILISER


Odisha's main agriculture products are rice, pulses, oilseeds,

vegetables, groundnut, cotton, jute, coconut, spices, sugarcane,

potato and fruits. There is a vast scope for agro-based industries for

rice, lentils, edible oil-milling, dehydration of vegetables, maize-

milling, cattle and poultry rearing, cotton oil, potato chips, coconut oil,

sugar mills, mushroom cultivation, non-edible oils and others.

As per budget 2016-17, an amount of US$ 2.01 billion has been

allocated to the agriculture department during 2016-17. Further, for

increasing the supply of fertilizers in the state, a new scheme-“Grant

to State procurement 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 .

Fertilizer Requirement Availability Sales

Urea 660 610 587

DAP 240 172 164

MOP 160 89 89

NPK 380 267 252

Requirement, availability and sales of fertilizers in Odisha

(‘000 MT) (2015-16)

Source: Requirement, availability and sales of fertilizers in Odisha (‘000 MT) (2015-16), State budget 2017-18




Fertilizer Districts Covered Crops

North-Western

Plateau Sundargarh, Deogarh

Rice, Greengram, Blackgram, Arhar, Horsegram, Groundnut, Mustard, Wheat, Potato,

Sweet potato, Vegetables, Mango, Banana, Citrus, Litchi, Guava and Papaya.

North-Central

Plateau

Mayurbhanj, Keonjhar

(Except Anandapur)

Rice, Wheat, Arhar, Greengram, Blackgram, Horsegram, Groundnut, Linseed, Mustard,

Mesta, Niger, Sweet potato, Potato, Chilli, Turmeric, Ginger, Vegetables, Mango, Banana,

Citrus, Pineapple and Sapota.

North-Eastern

Coastal Plains

Balasore, Bhadrak,

Jajpur (Except Sukinda),

(Anandapur)

Rice, Greengram, Blackgram, Mustard, Groundnut, Jute, Sweet potato, Potato, Chilli,

Vegetables, Mango, Banana, Papaya, Guava, Coconut.

East & South

Coastal Plains

Cuttack (Part),

Kendrapara,Jagatsinghpur, Puri,

Ganjam (Part), Khurda,

Nayagarh

Rice, Maize, Greengram, Blackgram, Jute, Groundnut, Mustard, Sesamum, Horsegram,

Vegetables, Potato, Sugarcane, Chilli, Mango, Banana, Coconut, Guava, Citrus, Cashew.

North-Eastern

Ghats

Ganjam (Part), Gajapati,

Rayagada, Kandhamal,

Boudh

Rice, Maize, Jowar, Ragi, Sugarcane, Horsegram, Greengram, Cotton,

Blackgram, Mustard, Niger, Groundnut, Turmeric, Mesta, Sweet potato,

Chilli, Ginger, Vegetables, Mango, Jack fruit, Citrus, Pineapple, Sapota,

Coconut.

Eastern Ghats

Highland

Nawarangpur (Part),

Koraput (Part)

Rice, Maize, Ragi, Jowar, Small millets, Horsegram, Castor, Arhar,

Gram, Groundnut, Mustard, Cotton, Mesta, Turmeric, Ginger, Sweet

potato, Vegetables, Mango, Jack fruit, Guava, Ber, Cashew.


Agro Climatic Zone




Fertilizer Districts Covered Crops

South Eastern

Ghats Malkangiri, Koraput (Part)

Rice, maize, ragi, horsegram, wheat, blackgram, greengram, Groundnut, niger, sesamum,

mesta, sweet potato, pea, chilli, Vegetables, ginger, mango, banana, guava, ber,

pineapple, cashew.

Western

Undulating

Lands

Kalahandi, Nuapada,

Nawarangpur (Dabugaon)

Rice, maize, wheat, jowar, arhar, greengram, blackgram, horsegram, Gram, groundnut,

mustard, cotton, sugarcane, vegetables, lathyrus, Onion, mango, papaya, guava, banana.

Western

Central Table

Lands

Bargarh, Subarnapur,

Bolangir, Sambalpur,

Jharsuguda

Rice, wheat, arhar, greengram, blackgram, horsegram, gram, Groundnut, mustard, mesta,

sugarcane, chilli, potato, vegetables, Mango, banana, guava, ber, cashew.

Mid Central

Table Lands

Dhenkanal, Angul, Cuttack

(Part)

& Sunkinda

Rice, maize, greengram, blackgram, arhar, sesamum, groundnut, Mustard, onion,

vegetables, sugarcane, chilli, mango, litchi, citrus, Guava, sapota, pineapple.

Agro Climatic Zone





Sakthi Sugars Ltd

Aska Cooperative Sugar

Industries Ltd

Paradeep Phosphates

Ltd (PPL)

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 Paradeep, 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

tonnes. The quantity of DAP manufactured by the company during April-June 2015 stood at 108.4 thousand metric

tonnes.

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

turnover of US$ 127.43 million in 2016-17.

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

distillery and an ancillary unit with a capacity to produce 10,000 bulk litres of rectified spirit per day by utilizing

molasses,

Indian Farmers Fertiliser

Cooperative (IFFCO)

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$ 4.1 billion in

2014-15.

Key players


KEY INDUSTRIES – MINING … (1/3)

District Major mineral

Koraput Bauxite, chinaclay, dolomite, limestone, mica,

quartz

Mayurbhanj

Asbestos, fireclay, chinaclay, iron ore, kyanite,

quartzite, soapstone, talc, base metal (lead and

copper), coal, dolomite, manganese, nickel ore,

vanadiferous/ magnetite, gold.

Malkangiri Limestone, tin ore, quartz

Nabarangapur Chinaclay, iron ore

Rayagada Bauxite, graphite, manganese, quartz

Sundergarh Lead, copper, coal, dolomite, fireclay, iron ore,

limestone, manganese, quartz, bauxite

Sambalpur Coal, base metal (lead and copper), chinaclay,

fireclay

Keonjhar

Asbestos, pyroxenite, iron ore, chromite,

chinaclay, pyrophyllite, manganese, gold,

dolomite, limestone, quartzite, quartz

Kadhamal Graphite

Balasore Vanadiferous/magnetite

Mineral 2015-16 2016-17

Bauxite (tonnes) 10,839,542 11,914,000

Chromite (tonnes) 3,102,940 4,129,711

Iron ore (thousand

tonnes) 80,866,243 102,663,381

Manganese ore

(tonnes) 425,271 627,613

Dolomite (tonnes) 1,035,242 1,249,995

Coal (tonnes) 138,580,000 139,208,000

Graphite (tonnes) 17,643 20,156

Limestone

(thousand tonnes) 4,524,561 4,762,094

Pyrophyllite

(tonnes) 4,490 0

Quartzite (tonnes) 50,084 48,360

Silica Sand

(tonnes) 421 0

Source: Ministry of Mines, Government of India

Mineral reserves by districts



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.

Moreover, the state accounts for more than 35% of total iron ore

resources of the country. The key minerals found in the state are

iron, coal, bauxite, manganese, nickel, chromite, limestone, dolomite,

graphite, decorative stones, beach sand, china clay, tin ore, etc.

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

estimated production capacity of 7 million tonnes per annum (MTPA).

Year Production (thousand tonnes)

2010-11 111,094

2011-12 105,120

2012-13 109,679

2013-14 108,175

2014-15 121,101

2015-16 138,580

2016-17 139,920

Mineral revenue in Odisha (US$ million)

12

2.9

8

14

3.0

7

17

2.0

3

21

0.9

1

30

8.7

0 50

8.7

8 70

0.6

8

86

7.6

1

84

3.2

0

81

5.0

1

1,0

12

.22

79

6.6

1

0

100

200

300

400

500

600

700

800

900

1,000

1,100

200

5-0

6

200

6-0

7

200

7-0

8

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

5-1

6

Source: Ministry of Mines, Government of India, Department of Steel & Mines, Government of Odisha

Coal production in Odisha – thousand tonnes



Orissa Mining

Corporation Ltd

Mahanadi Coalfields

Ltd (MCL)

Rungta Mines Ltd

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.

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

minerals. OMC has 35 mining leases (chromite - 11, iron - 11, iron & manganese - 5, manganese - 3, limestone - 1

and gemstone - 4).

MCL is a subsidiary of Coal India Limited and was formed in April 1992. It has two coalfields 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

million tonnes in 2016-17. The company employs around 22,036 people.

Ferro Alloys Corp Ltd

(FACOR)

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

revenues of US$ 88.36 million in 2016-17.

Key players


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$ 50.34 million under state budget 2016-17, for embracing various projects related to IT & e-Governance under

different departments of the state.

In September 2015, the state government announced plans to spend US$ 663.57 million over the course of next 5 years 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 in

November 2015.

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.


KEY INDUSTRIES – IT/ITeS AND ELECTRONICS … (2/2)

Infosys Ltd

Tata Consultancy

Services (TCS)

Wipro Ltd

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

centre in Bhubaneswar.

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

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

(in Bhubaneswar) since 2001. The company plans to further strengthen its presence in the state by 2015-16 and create over

10,000 IT jobs.

Key players

Orisys Infotech Pvt Ltd

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.


KEY INDUSTRIES – TOURISM … (1/2)

In 2016-17, 12842,899 domestic tourists & 76,361 foreign tourists

visited the state of Odisha. Odisha has vast potential for

development of tourism. It is one of the critical sectors of the state’s

economy, in terms of foreign exchange earnings as well as

employment generation opportunities.

Bhubaneswar, the capital city of the state, is known as the temple

city of India & is home to about 500 temples. Puri, Bhubaneswar &

Konark are the main centres for religious tourism.

As of 2015-16, 350 places of Odisha have been recognized as major

tourist attractions.

As per state budget 2016-17, the state government allocated US$

1.55 million for development & enhancement of eco-tourism in

Odisha.

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 US$15.52 million.

In February 2017, the state government signed a MoU with AirAsia to

commence direct international flights to Malaysia, to promote in

bound tourism in Southeast Asia. For the purpose, various new tour

packages have been introduced such as Coastal Trek, Jagannath

Trail, Weekend Gateways, Cycle Tours, Coastal Cruise, etc.

Source: Economic Survey of Odisha, Tourism Report, Government of Odisha, Ministry of Tourism, Government of India

Year No. of

Hotels

No. of

Rooms No. of Beds

High-Spending Group 383 11,903 25,062

Middle-Spending Group 455 9,219 18,924

Low-Spending Group 921 15,264 29,108

Total 1,759 36,386 73,094

Total tourist arrivals in Odisha (millions)

4.6

7

5.2

8

5.9

9

6.4

0

6.9

4

7.6

4

8.3

3

9.1

2

9.8

7

10

.90

11

.90

12

.90

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

200

5-0

6

200

6-0

7

200

7-0

8

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

Hotel Infrastructure in Odisha (2015-16)


KEY INDUSTRIES – TOURISM … (2/2)

The Government of Odisha is increasing its focus on eco tourism.

During 2015-16, the maximum inflow of domestic tourists was

recorded in December, whereas the inflow of foreign tourists into the

state was maximum in the month of January 2016. Majority of the

tourist in Odisha come from from West Bengal and Andhra Pradesh.

During 2015-16, these two states (West Bengal and Andhra

Pradesh) accounted for around 16.31 per cent share in tourist visits

to Odisha.

During 2015-16, total money inflow in Odisha through tourist

spending was recorded to be US$ 1.93 billion which witnessed an

increase of 8.74 per cent from money inflow of US$ 1.78 billion in

2014-15.

The Nabakalebara Festival-2015 was a grand success due to

promotional efforts of the government.

Under Budget for 2016-17, an investment of US$ 37.05 million is

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.

As of November 24, 2015, US$ 8.29 million was sanctioned under

PRASAD for the development of infrastructure in Puri.

Source: Economic Survey of Odisha, Tourism Report, Government of Odisha, Ministry of Tourism, Government of India

Year No. of projects Sanctioned amount (US$ million)

2012-13 2 0.10

2013-14 12 10.85

2014-15 3 10.76

Ortel Communications, Odisha’s biggest multi-system operator, to

provide high speed broadband services with an investment of

US$44.62 million to boost the infrastructure in the state

Funds sanctioned under various schemes to promote tourism

in Odisha


SINGLE–WINDOW CLEARANCE MECHANISM… (1/2)

High-level clearance

authority

District-level single-window

clearance authority

Chief Minister of Odisha

Chief Secretary

District Collector

Industrial Promotion

and Investment

Corporation of

Odisha (IPICOL)

(Team Odisha):

State-level

State-level single-window

clearance authority

District Industries

Centre

Greater than

US$ 219.4 million

Between

US$ 10.9 and

US$ 219.4 million

Less than

US$ 10.9 million

Investments handled Under the chairmanship of Nodal agency


SINGLE-WINDOW CLEARANCE MECHANISM … (2/2)

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.


KEY INVESTMENT PROMOTION OFFICES … (1/3)

Agency Description

Industrial Promotion and Investment

Corporation of Odisha Limited

(IPICOL)

IPICOL is a key promotional institution. It was incorporated in 1973 with the main objective of

accelerating the pace of industrial development by promoting large and medium scale industries.

In 2014-15, the IPICOL received 26 combined application forms for setting up projects with an

investment of US$ 11.97 billion.

Industrial Development Corporation of Orissa

Limited

(IDCOL)

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

The corporation, since its inception, has set up 15 industrial units across sectors including

cement, ferrochrome, pig iron and spun pipe.

Orissa Industrial Infrastructure Development

Corporation

(IDCO)

IDCO was established with the objective of providing infrastructure assistance for rapid

establishment and orderly growth of industry in Odisha.

The corporation is engaged in multiple activities that foster rapid industrialisation in the state by

developing industrial infrastructure.

In 2012-13, IDCO allotted 352.530 acres of land and sheds to 14 new industrial estates/areas

across the state.

Agricultural Promotion and Investment

Corporation of Odisha Limited

(APICOL)

APICOL’s aim is to strengthen the rural economy by providing financial support for promotion

and development of agro-based and food-processing industries.

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

In 2009-10, the corporation promoted 145 commercial agro-enterprises with an aggregate

investment of about US$ 24,38,619.77 .



Agency Description

Orissa State Financial Corporation

(OSFC)

OSFC is a premier state-level financial institution that was established in 1956 to cater to the

needs of industrial development in the state.

It provides financial assistance to small and medium scale industries in consortium with state-

level financial institutions.

Besides, the corporation also receives financial assistance from the state and central

governments, and provides soft loans and margin money for rehabilitation of sick industrial units.

Orissa Pisciculture Development Corporation

Limited (OPDC)

OPDC is the only public sector undertaking in the fishery sub-sector and aims at carrying on

business in pisciculture in brackish water areas, freshwater ponds and other water sources.

It has launched a number of projects such as supplying fishnet, fuel and fish seeds for the

economic development of fishermen.

Directorate of Export Promotion & Marketing

(DEPM)

DEPM has been set up to promote export of goods from Odisha and to provide marketing

assistance to SSI units of the state.

It disseminates market intelligence, oversees enquiries related to tenders and trade from existing

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.

Odisha Small Industries Corporation Ltd

(OSIC)

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.

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.



Agency Description

The Orissa State Cooperative Handicrafts

Corporation (OSCHC)

Established in 1956, OSCHC is the primary authority engaged in encouraging exporters,

enlarging marketing opportunities, introducing new design and technology and strengthening the

production base in the handicrafts sector.

Orissa State Electronics Development

Corporation (OSEDC)

OSEDC was established in 1981 as the nodal organisation in the state for promotion of

electronic industries, both in hardware and software.

Grid Corporation of India Limited

(GRIDCO)

GRIDCO is a Government of Odisha undertaking and was incorporated in April 1995 for power

transmission.

In 2005, GRIDCO’s transmission-related activities were transferred to Orissa Power

Transmission Corporation.

Now, GRIDCO is a trading company and is involved in the bulk sale of power to the four power

distribution companies in Odisha. It also trades surplus power with neighboring states.

Orissa State Pollution Control Board

(OSPCB)

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

chemicals.

Its functions are broadly classified under areas such as enforcement, advisory, monitoring,

research and facilitation.


CONTACT LIST

Agency Description

Directorate of Industries

Killa Maidan, Cuttack-753 001

Phone: 91-0674-2536640

Fax: 91-0674-2536819

E-mail: [email protected]

Website: http://diodisha.nic.in/

Industrial Promotion and Investment

Corporation of Odisha Limited (IPICOL)

IPICOL House, Janpath, Bhubaneswar-751 022

Phone: 91-0674-2542 601

Fax: 91-0674-2543 766

E-mail: [email protected]

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

http://diodisha.nic.in/

http://www.ipicolorissa.com/


KEY APPROVALS REQUIRED

Department Timeline

Incorporation of company Registrar of Companies

Registration/Industrial License/Industrial Entrepreneurs

Memorandum (IEM) District Industries Centres for SSI, Secretariat for Industrial Assistance (Government of

India) for Large and Medium Industries

Allotment of land Industrial Infrastructure Development Corporation (IDCO)

Permission for land use

(In case industry is located outside an industrial area)

a) IDCO

b) Department of Town and Country Planning

c) Local authority/District Collector

No-Objection Certificate (NOC) and consent under

Water and Air Pollution Control Act Orissa State Pollution Control Board (OSPCB)

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

Approval of construction activity and building plan Concerned Development Authority

Sanction of electricity Distribution Companies- CESU, NESCO, SOUTHCO, WESCO

Transmission Company- Orissa Power Transmission Corporation Limited (OPTCL)

Water supply Department of Water Resources

Factory and boiler clearance Chief Inspector of Factories and Boilers

Finance Orissa State Financial Corporation (OSFC), IPICOL, Commercial Banks such as IDBI,

ICICI, State Bank of India, etc.

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

State Excise Act Commercial Tax Department and Central and State Excise Department

Timelines for approvals and clearances


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


STATE ACTS & POLICIES … (1/4)

Industrial Policy

Resolution (IPR) 2015

To revolutionise the state of Odisha into a dynamic industrialised territory.

To attract investments and promote economic growth in the state of Odisha.

To encourage domestic as well as foreign investments in the state of Odisha.

To promote economic activities in the state and increase exports from SEZs in Odisha.

Special Economic Zones

Policy 2015

Objectives

Tapping the potential of aquaculture to contribute to food and nutritional security.

Boosting the public-private partnership investment across the sector.

The State Reservoir

Fishery Policy 2014

Information &

Communication

Technology (ICT) Policy

2014

Odisha Tourism Policy

2013

Development of new IT/ITeS locations across the state through upgradation of the IT infrastructure by setting up IT

parks.

To promote sustainable tourism with a view to create employment opportunities and to bring about socio-economic

benefits to the community.

To promote Odisha as one stop tourism destination.

Read more

Read more

Read more

Read more

Read more

http://www.osicltd.in/Content/images/PDF/IPR_BROCHURE.pdf

http://investodisha.org/download/Special_Economic_Zones_2015.pdf

http://www.orissafisheries.com/File/comprehansive-REVISED-DRAFT-ODISHA-FISHERIES POLICY 2014.pdf

http://www.panthanivas.com/pdf/Odisha Tourism Policy 2013.pdf

http://www.bbs.stpi.in/Documents/ICT_Policy_2014.pdf



Objectives

To bring in a shift from the present level of subsistence agriculture to profitable commercial agriculture.

To promote sustainable agricultural development.

State Agriculture Policy

2013

Odisha Solar Policy 2013 To promote the use of solar energy in the state in order to support development and address the problem on

energy security.

To provide universal access to potable piped water supply on 24/7 basis at an affordable price and in an equitable,

sustainable and an eco-friendly manner with verifiable service level bench mark for citizens in urban areas of the

State.

Odisha State Urban

Water Supply Policy,

2013

Equal opportunity and experience to enable youth for developing knowledge, skills and competencies to play an

active role in all aspects of the society State Youth Policy 2013

Excise Policy 2009-10 To adopt excise duty, fee structure and guidelines for the settlement of excise shops and establishments.

Read more

Read more

Read more

Read more

Read more

http://www.apicol.co.in/State Agriculture Policy 2013.pdf

http://www.orissa.gov.in/sciencetechnology/Odisha_Solar_Policy.pdf

http://www.dsysodisha.gov.in/pdf/osyp_2013.pdf

http://www.urbanodisha.gov.in/(S(zhw2zb452ks2pt45zlwrvg45))/pdf/gazettes_notifications/STATE_URBAN_WATER_SUPPLY_POLICY.pdf

http://orissa.gov.in/excise/excise_policy/Excise_Policy2009-10.pdf



Objectives

To enhance contribution of MSMEs in manufacturing and services sector of Odisha’s economy.

Orissa Micro, Small, and

Medium Enterprises

(MSME) Development

Policy 2009

Export Policy 2008

(Draft)

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

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

To lay down the principles of equitable and judicious use of water for survival of life, welfare of human beings and

sustainable as well as balanced growth of the state. Water Policy 2007

To supplement scarce public resources, create a more competitive environment, help improve efficiencies and

reduce costs.

Orissa Public Private

Partnership (PPP) Policy

2007

MSME Development

Policy 2015

To improve competitiveness in the MSME industry of the state of Odisha.

To encourage investments in the MSME sector of Odisha.

Read more

Read more

Read more

Read more

Read more

http://www.orissa.gov.in/industries/pdf/2009/Draft_ policy_of_Orissa-FIEO-Er.pdf

http://www.teamorissa.org/MSME_Dev_Policy_2009.pdf

http://www.urbanodisha.gov.in/(S(3ybkzuvjs0rq4zvglb4l3g55))/pdf/gazettes_notifications/STATE_URBAN_WATER_SUPPLY_POLICY.pdf

http://orissa.gov.in/PPP_Policy _2007.pdf

http://www.orissafisheries.com/File/comprehansive-REVISED-DRAFT-ODISHA-FISHERIES POLICY 2014.pdf



Objectives

To bring about a change in the mind-set regarding entrepreneurship through elimination of negative biases towards

the sector.

To support start-ups in the state by providing infrastructure facilities, marketing assistance and credit.

Entrepreneurship

Development Policy

2015 Read more

http://msmeodisha.gov.in/PDF/2015 05 29_Draft Odisha Entrepreneurship Development Policy.pdf


ANNEXURE

Source: Reserve Bank of India

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


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