Odisha taps investments with conclaves to leapfrog into big economy
By Pradeep Kumar Panda
Bhubaneswar, April 25: With Odisha aiming $1 trillion economy by 2030, a series of successful investment conclaves set the stage for the big leap for the state’s economy. The state government organized the first conclave in 2016 which attracted 84 proposals worth Rs. 2.03 lakh crores of investments.
While 50 out of those proposals were approved, 29 of them are under construction, and six have already started productions. The second edition of the conclave was organized in 2018 which attracted Rs. 4.23 lakh crores of investment across 17 diversified sectors. While 202 investment intents were received during the event and 100 proposals were approved, 58 of them have already started construction and five have already started production.
The third edition of the conclave was organized in 2022 which attracted Rs. 10.17 lakh crores of investment across 22 diversified sectors. Major initiatives taken by the government to promote Odisha as an investment destination include a strategic action plan for the implementation of the ‘Vision 2025’ which lays a road map for industrial growth in the state over the next decade during the recently concluded Odisha Investors meet in Bengaluru.
The state has identified five focus sectors that include agro and food processing, chemicals and petrochemicals, textiles and apparel, downstream and ancillary industries in metal sector and electronic system design and manufacturing and IT/ITeS. The plan covers policy, infrastructure, investment promotion and skilling interventions that the state government plans to undertake for industrial development in these focus sectors.
The state government also launched an advance version of its industrial portal for land use and services i.e, GOPLUS. The GOPLUS Version 2.0 provides information about the entire land bank available in the state for industrial use and works as a onestop portal to provide information about all land related queries of an investor. Using the portal, an investor can get information about availability of land parcel in the vicinity of preferred infrastructure utilities such as airport, port etc.
Odisha government also launched its startup policy 2016 that aims to create 1,000 startups in the state by 2020.The policy will aim at providing incentives, support and assistance to start ups at all stages of development including idea or prototype stage, commercialization stage as well as the marketing stage. The Odisha government has also set up a startup capital infrastructure fund upto Rs 25 crore that will be used to support development of startup ecosystem in the state.
In order to increase the employment opportunities in the state, Odisha government has announced plans to invest $ 28.69 billion in the manufacturing sector generating nearly three lakh job opportunities by 2020.
In June 2015, in an effort to increase the traffic of foreign airlines in the state, the state government exempted the Value Added Tax (VAT) imposed on aviation turbine fuel. In July 2015, the state government announced plans to frame a rural Business Process Outsourcing (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 and Berhampur.
As per budget 2016-17, $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 per state budget 2016-17, the state government allocated $ 1.52 million for development and enhancement of eco-tourism in Odisha. A biopharma IT park at Bhubaneswar is being established under the public private partnership (PPP) model over a land area of 64.68 acres.
A mega food park is being established near Bhubaneswar over 282 acres through the PPP mode. Odisha Industrial Infrastructure Development Corporation (IDCO) is the nodal agency for the establishment of this park.
In order to strengthen the artisan-based enterprises in the handicrafts sector, 19 handicraft training centres are functioning in different districts.
Focus Sectors of Odisha Government
The Government of Odisha has recognised six sectors as its focus sectors for sustainable growth of industries and economy. Of these, five are manufacturing sectors, highlighted during the Make in Odisha Conclave 2018. Three of these six sectors are labour intensive in nature and are expected to generate large employment opportunities in the State.
Agro Food Processing including Seafood: To support these agro-based industries, the State government has established Mega Food Parks at Rayagada and Khurda and a sea food park at Deras.
Textiles including technical textiles: Odisha is a leader in skilled and quality workforce for the textile sector, with immense opportunity to invest in this field. Dedicated apparel parks have been established at Ramdaspur and Chhatabar.
Ancillary and Downstream Industries in Metal Sector: Odisha is the mineral hub of India and the largest aluminium, steel and stainless-steel producer in the country. To facilitate growth of ancillary and downstream sectors, a National Investment and Manufacturing Zone has been set up at Kalinganagar along with downstream park at Angul and Jharsuguda Chemicals, Plastics and Petrochemicals: One of the four Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) in India has been established at Paradip. The PCPIR is anchored by a 15 MMTPA refinery set up by IOCL.
Electronics Manufacturing
To enhance electronic manufacturing in the State, a dedicated electronics manufacturing cluster has been established near Bhubaneswar. A revised special incentive package has also been introduced to facilitate investments in the sector.
Odisha is one of the fastest growing economy of the country. Odisha has transitioned to middle income category states in terms of Gross State Domestic Product (GSDP). Odisha is on course to become $1 trillion economv by 2030. “New Odisha, Empowered Odisha” has become favourite destination for investment and industrialisation.
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