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2 Executive Summary... 3 Advantage Odisha... 5 Vision... 6 Odisha - An Introduction... 7 Budget Infrastructure Status 19 Business Opportunities Doing Business in Odisha State Acts & Policies

3 EXECUTIVE SUMMARY (1/2) The state s economy witnessed high growth rates between and , with Strong economy GSDP of the state growing at a CAGR of percent. Cumulative FDI inflows in the state, during April 2000 to March, amounted to US$ 403 million. Odisha has emerged as a key state with regards to the mineral and metal based Hub for mineral-based industries industries. During , total production of minerals in the state was recorded at million tonnes as compared to million tonnes in Key minerals found in the state are iron, coal, bauxite, manganese, nickel, chromite, limestone, dolomite, graphite, decorative stones, beach sand, China clay, tin ore, etc. Odisha is considered to be the aluminium capital of India and is an ideal location for Strong bauxite production 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 to million tonnes in Odisha is one of the largest producers of iron and steel in the country. Total production of Strong iron and steel sector iron ore in Odisha was recorded to be million tonnes during Being one of the largest producers of iron and steel in India, the state of Odisha is one of the most favoured investment destinations for domestic and international iron and steel players. Source: Economic Survey of Odisha CAGR Compound Annual Growth Rate; GSDP Gross State Domestic Product 3

4 EXECUTIVE SUMMARY (2/2) Strong growth in SSI/MSME units 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. Odisha is the first state in India to have undertaken reform and restructuring initiatives in Strong power sector the power sector. As of June, the state had a total installed power generation capacity of 9, MW. Source: Ministry of Micro, Small and Medium Enterprises Central Electrical Authority, Economic Survey of Odisha Ministry of Tourism, SSI Small Scale Industry, MSME Micro, Small and Medium Enterprises 4

5 ADVANTAGE: Thermal power installed capacity: 3.87 GW Policy, fiscal incentives and initiatives High economic growth Growing demand March 2014 The state s GSDP grew at a Compound Annual Growth Rate (CAGR) of per cent between and The tertiary sector was the major contributor to the state s GSDP with contribution of 47.5% during The state offers a wide range of fiscal and policy incentives for businesses under the Industrial Policy Resolution, 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. June Thermal power installed capacity: 7.1 GW Advantage Odisha 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. 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 , 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. Source: Economic Survey of Odisha, Central Statistics Office 5

6 VISION 2022 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. To enhance the use of Information Technology (IT) to ensure transparency and speed. To minimize interface between public and government for dealings. To protect historical monuments through proper renovation. To nurture and promote classical music, dance and literature. 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. Industrial development Health Govt. services and administration Infrastructure Vision 2022 Growth and well-being Tourism & culture 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 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. To frame concerted strategies to address various issues of unemployment and rural well being. To bring about growth with equity. To foster technical and vocational education and skill development programmes. To establish educational townships. Source: Confederation of Indian Industry 6

7 FACT FILE Bhubaneswar, Mayurbhanj, Baleshwar, Khordha and Sundargarh, Ganjam, Cuttack are some of the large cities in terms of population. Odisha has three major seasons, summer (March to June), monsoon (July-September) and winter (October-February). Parameters Odisha Capital Source: Maps of India 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, and the Bay of Bengal in the east. Bhubaneswar Geographical area (sq km) 155,707 Administrative districts (No) 30 Population density (persons per sq km) 270 Total population (million) Male population (million) 27.1 Female population (million) 25.5 Sex ratio (females per 1,000 males) 989 Literacy rate (%) Languages spoken in the state are Oriya and its various dialects, Hindi and English Source: Census 2011, Economic Survey of Odisha 7

8 IN FIGURES (1/2) Parameter Odisha All states Economy Source GSDP as a percentage of all states GSDP Directorate of Economics & Statistics of Odisha, Central Statistical Organisation, TechSci Research Estimates Average GSDP growth rate (%) Directorate of Economics & Statistics of Odisha, Central Statistical Organisation, TechSci Research Estimates Per capita GSDP (US$) 1,210 1,546 Directorate of Economics & Statistics of Odisha, Central Statistical Organisation, TechSci Research Estimates 9, , Central Electricity Authority, as of June Wireless subscribers (No) 29,556,380 1,033,157,014 Telecom Regulatory Authority of India, as of May Internet subscribers (No) 8,020, ,340,000 Telecom Regulatory Authority of India, as of January National Highway length (km) 4, , NHAI & Roads and Building Department India Ports Association Airports Authority of India Physical Infrastructure Installed power capacity (MW) Major and minor ports (No) Airports (No) 8

9 IN FIGURES (2/2) Parameter Odisha All states Source Literacy rate (%) Census 2011 Birth rate (per 1,000 population) SRS Bulletin Department of Industrial Policy & Promotion, from April 2000 to March PPP projects completed & operational (no) 27 1,246 DEA, Ministry of Finance, Government of India, July Operational SEZs (no) Ministry of Commerce & Industry, Department of Commerce, July Social Indicators Investment FDI equity inflows (US$ billion) Industrial Infrastructure SRS: Sample Registration System, PPP: Public Private Partnership, SEZ: Special Economic Zone 9

10 ECONOMIC SNAPSHOT GSDP At current prices, Odisha s total GSDP* stood at US$ 50.8 billion during The state s GSDP grew at a CAGR of per cent between and GSDP of Odisha at current prices (in US$ billion) CAGR 10.25% Source: Directorate of Economics & Statistics of Odisha, Central Statistical Organisation, TechSci Research Estimates GSDP* -available on secondary source (govt.) 10

11 ECONOMIC SNAPSHOT NSDP Odisha s total NSDP# was about US$ billion during The state s NSDP grew at a CAGR of per cent between and NSDP of Odisha at current prices (in US$ billion) CAGR 10.4% Source: Directorate of Economics & Statistics of Odisha, Central Statistical Organisation, TechSci Research Estimates NSDP# -available on secondary source (govt.) 11

12 ECONOMIC SNAPSHOT PER CAPITA GSDP Odisha s per capita GSDP^ in stood at US$ 1,210 in comparison with US$ in Per capita GSDP of the state grew at a CAGR of 9.40 per cent between and Per capita GSDP (US$) CAGR 9.40% Source: Directorate of Economics & Statistics of Odisha, Central Statistical Organisation, TechSci Research Estimates Per Capita GSDP^ - calculated using GSDP million USD/Population in million 12

13 ECONOMIC SNAPSHOT PER CAPITA NSDP Odisha s per capita NSDP& in was US$ 1, in comparison with US$ during Per capita NSDP grew at a CAGR of 9.04% between and Per capita NSDP (US$) CAGR 9.04% Source: Directorate of Economics & Statistics of Odisha, Central Statistical Organisation, TechSci Research Estimates per capita NSDP& - available on secondary source (govt.) 13

14 ECONOMIC SNAPSHOT PERCENTAGE DISTRIBUTION OF GSDP In , the tertiaryµ sector contributed the most (52.3 per cent) to GSDP, followed by secondaryµ (32.8 per cent) and primaryµ (14.9 per cent) sectors. During to , the tertiary sector recorded the highest CAGR (12.38 per cent), followed by the secondary (9.87 per cent) and primary (5.76 per cent) sectors. Percentage distribution of GSDP CAGR 12.38% 9.87% 5.76% Source: Economic Survey of Odisha TechSci Research Estimates Sector-wise %share of GSDPµ -Geometric mean of YoY calculation from to

15 ECONOMIC SNAPSHOT AGRICULTURAL PRODUCTION Food grain production in the state reached 6,411.4 thousand tonnes in Further, 1.26 million hectares of land was under cultivation of horticulture crops and the total production in the state stood at million metric tonnes. Sugarcane production in the state stood at thousand tonnes in As per state budget -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 and 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 and productivity across tribal areas of the state, the state government decided to implement Special Programme for Millet in Tribal Areas during -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 -17. Agriculture production in Odisha 000 tonnes ( ) Rice 5,795.1 Wheat 2.0 Fruits 2,158.5 Vegetables 9,127.3 Flowers Aromatic 0.60 Spices Plantation crops Honey 1.00 Onion Coarse Cereals Food grains 6,411.4 Pulses Source: Department of Agriculture, Cooperation & Farmers Welfare, Government of India, 15

16 ECONOMIC SNAPSHOT FDI INFLOWS & INVESTMENTS According to the DIPP, cumulative FDI inflows in the state during April 2000 to March stood at US$ 403 million. As of June 2015, the state government announced plans to facilitate growth in the manufacturing sector with an yearly increase of 15% till As per the state government investment plans, the contribution of manufacturing sector in the overall GSDP of the state is projected to reach 27% by In order to increase the employment opportunities in the state, Odisha government has announced plans to invest US$ billion in the manufacturing sector generating nearly three lakh job opportunities by FDI equity inflows, to (US$ million) Source: Department of Industrial Policy & Promotion, Economic Survey of Odisha, News articles 16

17 ECONOMIC SNAPSHOT EXPORT TRENDS According to the Ministry of Commerce and Industry, total exports from Odisha in were valued at US$ 3.4 billion. Value exports from the state increased at a CAGR of 2.5%% between and The state has been a major exporter of both mineral and metallurgical products, which account for around 18.89% and 40.88% of the state s total exports, respectively. During , total exports of seafood products from the state reached to US$ million. In addition, the state government is targeting to ensure export of seafood products worth US$ million during -17. The Government of Odisha has recognized various sectors for the promotion and facilitation of the exports from the state. The sectors that have relatively higher preference of the state government are agriculture and processed food products, readymade garments, electronics, IT, engineering goods, arts & crafts, and minerals & mineral based products. Export trends (US$ billion) CAGR 2.5% Source: Economic Survey of Odisha, Ministry of Commerce and Industry, Government of India News articles 17

18 ANNUAL BUDGET -17 Annual State Plan ceiling of major departments Sr No Sector US$ (million) Sr No Sector US$ (million) 1 Agriculture Department 2, Information Technology Department Co-operation Department Skill Development & Technical Education Labour & Employees State Insurance Department Panchayati Raj Department 1, Energy Department Planning and Co-ordination Department Revenue and Disaster Management Department Rural Development Department Scheduled Tribes and Scheduled Caste Development, Minorities and Backward Classes Welfare Department Tourism and Culture Department Transport Department Water Resources Department 1, , Women and Child Development Department Works Department Fisheries and Animal Resources Development Department Food Supplies and Consumer Welfare Department 7 Forest and Environment Department General Administration Department Handlooms, Textiles & Handicrafts Department Health and Family Welfare Department School & Mass Education and Higher Education Housing and Urban Development Department Source: Government of Odisha, Finance Department 18

19 PHYSICAL INFRASTRUCTURE ROADS Odisha has around 253,050.8 km of roads, including 4, km of national highways and 5,086.1 km of state highways. The state is well connected to its neighbouring states and other parts of India through 15 National Highways. The state had a road density of km per 100 square km of area. Budget highlights: Source: Maps of India Road type Road length in (km) National highways 4, State highways 5,086.1 District roads 11,685.0 US$ million has been proposed for the maintenance of roads, public building and bridges under the Works Department. Under State Plan, US$ 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 (SHDP), US$ million will be provided by the state government. US$ million and US$ million will be provided for the upkeep of roads & bridges as well as buildings, respectively during -17. Moreover, US$ 6.87 million and US$ 6.11 million will be made available for the road projects under PPP and enhancement of PWD roads in Urban areas, respectively. For enhancing the connectivity between Western Odisha and KBK districts, an amount of US$ million will be provided under the new scheme Biju Expressway. Source: Economic Survey of Odisha, National Highways Authority of India, Odisha Budget

20 PHYSICAL INFRASTRUCTURE RAILWAYS Odisha has railway track length of 2,540 km. Odisha serves as a link between eastern and western India through the railway network of the South Eastern Railways and the East Coast Railways. With the authorization of the Talcher-Sambalpur track, an imperative link has been cemented between coastal and western Odisha. Odisha falls in the East Coast Railways region. Its major divisions are Khurda Road, Sambalpur and Waltair, with district headquarters in Bhubaneswar. As per budget -17, US$ 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 and upgradation of Bhubaneshwar railway station has also been done by the state government. Source: Maps of India Source: Economic Survey of Odisha, News articles 20

21 PHYSICAL INFRASTRUCTURE AIRPORTS (1/2) Biju Patnaik Airport, is located in the state capital, Bhubaneswar. In November, the airport was declared an international airport by the Ministry of Civil Aviation. In , Airports Authority of India 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 and Hyderabad. In addition, there are 17 airstrips and 16 helipads at several places in the state. The project is expected to be completed by December. IndiGo has decided to run one flight each from Biju Patnaik International Airport to Delhi and Kolkata from September. In June, Government of Odisha offered subsidy to international flight operators for introducing direct flights from Biju Patnaik International Airport to Singapore and Bangkok. Two Singapore airlines that are showing interest in flying international flights from Biju Patnaik International Airport are Tiger Air and Silk Air. Domestic airport 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 21

22 PHYSICAL INFRASTRUCTURE AIRPORTS (2/2) Bhubaneshwar aircraft movement (nos.) Bhubaneshwar passenger traffic (million) Freight handled at Bhubaneshwar (tonnes) ,998 2,667 2,286 3,324 4,022 5,950 7,002 Source: Airports Authority of India 22

23 PHYSICAL INFRASTRUCTURE PORTS Behrabalpur (Baleshwar) Gopalpur (Ganjam) Paradip (Jagatsinghpur) Paradeep port is connected with the broad-gauge rail link of the East-Coast Railway and is also served by National Highway-5A. During (up to December 2015), Pardeep port handled million tonnes of cargo traffic. During -17, under the state s Sagarmala Programme, Government of Odisha has proposed to establish an outer harbor to the south of South Break Water for handling the vessels at the port. Export volume for Paradeep port 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% Commodity Ports Major ports Minor ports Paradeep Gopalpur Behrabalpur (Balasore) Total exports from Paradeep port ( 000 tonnes) ,003 71,011 48,937 Source: Indian Ports Association 1 During April-November

24 PHYSICAL INFRASTRUCTURE POWER (1/2) Odisha is the first state in the country to bring in power sector reforms. As of June, Odisha accounted for a total installed power generation capacity of 9, MW, comprising 2, MW under state utilities, 5, MW under the private sector, and 1, MW under central utilities. Of the total installed power generation capacity, 7, MW was contributed by thermal power, 2, MW by hydropower, and MW by renewable power. As per budget -17, the state government announced its plans to allocate US$ million for setting up 550 of 33/11 KV sub-stations during -17 to ensure uninterrupted power supply to people in the state. Installed power capacity (MW) Source: Central Electricity Authority As of , 15,539 habitations in addition to 182,602 BPL households were electrified under the Biju Gram Jyoti Yojana and the state government proposed an amount of US$ million for this scheme during -17. Under the Integrated Power Development Scheme (IPDS), the Government of Odisha has provided US$ 7.63 million for the development of power sector. Moreover, towards the two centrally sponsored schemes- Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) as well as Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), the state government has proposed investment of US$ million under each during

25 PHYSICAL INFRASTRUCTURE POWER (2/2) Company1 Segment Power generation company Power transmission company Power distribution companies 1 Odisha Power Generation Corporation Limited (OPGC) Odisha Power Transmission Corporation Limited (OPTCL) Central Electricity Supply Utility of Odisha (CESU) Western Electricity Supply Company of Orissa Limited (WESCO) North Eastern Electricity Supply Company of Odisha Limited (NESCO) Southern Electricity Supply Company of Odisha Limited (SOUTHCO) Central Electricity Supply Utility of Odisha (CESU) OPGC, OPTCL and CESU are state government owned. WESCO, NESCO and SOUTHCO are private companies under Reliance Energy 25

26 AMRUT AND SMART CITIES (1/2) In September 2015, six cities of Odisha were announced to be developed as a smart cities. In August 2015, only two 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 two cities namely, Bhubaneshwar and Rourkela. As per budget -17, Bhubaneshwar was ranked first in the Smart Cities challenge among the other 98 cities of the country and the state government has proposed an amount of US$ million for uplifting and developing the city as one of the country s upcoming smart cities. Rourkela Bhubaneswar Smart cities in Odisha Cities Population Bhubaneswar 840,834 Berhampur 310,976 Source: Ministry of Urban Development 26

27 AMRUT AND SMART CITIES (2/2) Nine cities in the state were identified under Atal Mission for Rejuvenation and Urban Transformation (AMRUT) as of October As per budget -17, for the selected 9 AMRUT cities of Odisha, the state government has decided to allocate an amount of US$ million under AMRUT (Atal Mission for Rejuvenation and Urban Transformation) in order to deliver these cities with enhanced basic services. Classification of AMRUT Cities in Odisha on the basis of population Number of AMRUT cities with population less than 1 million Number of AMRUT cities with population in the range of 1 10 million Number of AMRUT cities with population greater than 10 million Total number of AMRUT cities Cities/ Towns in Odisha covered under AMRUT S. No. City/town S. No. City/town S. No. City/town 1. Bhubaneswar town 4. Rourkela town 7. Baleshwar town 2. Cuttack 5. Puri 8. Baripada town 3. Brahmapur 6. Sambalpur town 9. Bhadrak Source: Ministry of Urban Development, Government of India 27

28 PHYSICAL INFRASTRUCTURE TELECOM As of May, the state had an overall tele-density of per cent. According to the Telecom Regulatory Authority of India (TRAI), Odisha had million wireless subscribers and 296,612 wire-line subscribers, as of May. Telecom infrastructure (as of May ) Wireless subscribers 29,556,380 Wire-line subscribers 296,612 Internet subscribers 8,020,0001 Teledensity (in%) By the end of May, 4,538,806 subscribers had submitted request for mobile number portability in Odisha Source: Telecom Regulatory Authority of India, Department of Telecommunications 1 As of January As of December 2015, the state had 8,169 post offices. Performance status of NOFN project (As of April ) No. of GPs in Phase-I 3,388 Pipes 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 28

29 DEVELOPMENT PROJECTS: URBAN INFRASTRUCTURE Odisha has an abundant water supply, endowed with approximately 11% of the country s water resources. Under the State Plan for providing the water supply across bare and moderately covered urban wards of the state, the state government has projected to allocate US$ million during -17. However, for the preservation of various urban roads as well as water supply projects under Non-Plan, an allocation of US$ million has been made during -17. As per the budget -17, the Government of Odisha has allocated an amount of US$ million under the Housing and Urban Infrastructure Department during -17. Further, the work on execution of new sewerage projects has been taken up and an amount of US$ 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 OUIDF (Odisha Urban Infrastructure Development Fund) of the state. Moreover, under the guidance of JICA, the next phase of Urban Sewerage and sanitation related EAPs in Cuttack and Bhubaneshwar is being implemented, for which an allocation od US$ million has been projected by the state government as per the budget -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 -17. Moreover, under the Pradhan Mantri Awaas Yojana (PMAY), the state government has made an allocation of US$ million. Source: JNNURM, Ministry of Urban Development, Government of India, News articles UIDSSMT: Urban Infrastructure Development Scheme for Small and Medium Towns State Budget

30 DEVELOPMENT PROJECTS: KEY PUBLIC PRIVATE PARTNERSHIP PROJECTS Project name Sector Type of PPP Project cost (US$ million) Stage Kirtania Port Subarnarekha Mouth Transport Build-Own-Operate-Share-Transfer Under construction Jaipur Cluster Project Social and commercial infrastructure Build-Own-Operate 9.55 Operational Improvement to Putaspanga Bamberi Road Transport Build-Operate-Transfer 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 Operational IT & Commercial Complex (Rourkela) Social and commercial infrastructure Build-Operate-Transfer Operational Haridaspur-Paradip Railway Line Transport Build-Own-Operate-Transfer Astaranga Port Project Transport Build-Own-Operate-Share-Transfer Water Supply Project (IIT-NISER) Water sanitation Design-Build-Finance-Operate-Transfer Water sanitation Design-Build-Finance-Operate-Transfer Transport Build-Operate-Transfer Transport Build-Operate-Transfer Toll Transport Build-Operate-Transfer Toll Transport Build-Operate-Transfer (BOT) Solid Waste Management (Bhubaneswar-Cuttack) Development of Deep Draught Coal Berth at Paradip Port Sambalpur-Bargarh NH-6 Road Project Road Upgradation (Sambalpur-Rourkela) Project Angul Sukinda new railway line Under construction Under construction Under construction Under construction Under construction Operational Under construction Under construction Source: Ministry of Finance, Government of India 30

31 DEVELOPMENT PROJECTS: SEZs AND INDUSTRIAL ESTATES The state of Odisha has fifteen SEZs as of July, of which, three are operational, five are notified and seven are formally approved. The state has two operational IT SEZ with one located in Bhubaneswar and the other located in Jatni Tehsil, as of July. Odisha also has one operational SEZ for the production and export of aluminum which is located at Jharsuguda district. Formally approved SEZs (As of July ) Industry Location SEZs (No) IT/ITeS Khurda 3 Multiproduct Ganjam 1 Jajpur 1 Ganjam 1 Jharsuguda 1 Metal based SEZ Mineral based industries IDCO is the main developer for forty% of the formally approved SEZs. The state has 86 industrial estates. Manufacture & export Of aluminium As of September 2015, employment was generated for 2,043 people through SEZs in Odisha. Operational SEZs in Odisha (As of July ) Name Location Industry Orissa Industrial Infrastructure Development Corporation (IDCO) Bhubaneswar IT Orissa Industrial Infrastructure Development Corporation (IDCO) Jatni IT (Knowledge Park) Brundamal and Kurebaga villages Manufacture and export of aluminium Vedanta Aluminium Limited Source: Ministry of Commerce & Industry, Government of India, IDCO Odisha Industrial Infrastructure Development Corporation 31

32 SOCIAL INFRASTRUCTURE EDUCATION (1/2) As of , there were six dental colleges, 155 engineering colleges, 35 MCA colleges, 84 MBA colleges and 100 polytechnics/engineering schools in Odisha. In addition, their were eight medical colleges in the state. The major universities in the state are Utkal University and Biju Patnaik University of Technology; and popular colleges are Orissa Engineering College and 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, and National Institute of Science Education and Research. Educational infrastructure ( ) 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 As per the state budget -17, a provision of US$ 2.04 billion has been made for the School and Mass Education Department and higher education department during -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 -17. Moreover, for delivering the quality education across SC and 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 ClassSEBC: Socially and Educationally Backward Class 32

33 SOCIAL INFRASTRUCTURE EDUCATION (2/2) In , 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 , Odisha had around 35,928 primary schools with 20,427 upper primary schools and 9,400 high schools. During (up to December 2015), for providing the W Fi services in Central University of Orissa, Bhubaneshwar, an amount of US$ thousand was approved by the central government. Moreover, for a period of , 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. Literacy rates (%) Literacy rate Male literacy Female literacy Source: Census 2011 Odisha primary education statistics ( ) 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: Pupil-teacher ratio Primary: 28:1 Upper primary: 24:1 Net-enrolment ratio in schools (%) Primary: Upper primary: Source: Economic Survey of Odisha; Odisha Budget -17, RUSA - Rashtriya Ucchatar Shiksha Abhiyan 33

34 SOCIAL INFRASTRUCTURE HEALTH In , the state had 519 ayurvedic hospitals, 9 unani dispensaries, 413 community health clinics, 1,329 primary health centres and 80 mobile health units. Health infrastructure ( ) Health indicators ( ) Population served per hospital bed 1,386 Birth rate Active primary health centres 1,329 Death rate1 8.4 Active sub centres 6,691 Infant mortality rate2 51 Life expectancy at birth (year) Active community health centres 413 Active district hospitals 36 Male ( ) 64.3 Active sub district hospitals 27 Female ( ) 67.3 Under plan and non plan expenditure, US$ million has been allocated for the Health and Family Welfare Department in the state budget -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 -17, US$ 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$ million in the state budget for -17. Moreover, for the development of health care institutions infrastructure in the state, an amount of US$ million has been projected by the state government during -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$ million during -17. Source: Central Bureau of Health Intelligence, Government of India, Ministry of Health and Family welfare, Economic Survey of Odisha 1 Per thousand persons, 2Per thousand live births, 34

35 CULTURAL INFRASTRUCTURE There are sports stadiums in Bhubaneswar, Cuttack, and other cities. Badminton, cricket, hockey, tennis, table tennis and volleyball are the major sports although, other games are also popular. The main sports arenas are the Barabati Stadium and Jawaharlal Indoor Stadium in Cuttack, the Biju Patnaik Swimming Pool-cum-Sports Complex and the Kalinga Stadium in Bhubaneswar, a sports complex in Berhampur, and a synthetic hockey surface stadium in Rourkela. The key hotels in Bhubaneswar are the Trident Hilton, Kalinga Ashoka and Swosti Plaza. In Cuttack, the key hotels are the Akbari Continental and 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 and cultural infrastructure of the state. On account of this, the Chief Secretary of the state Sri Pati 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 and popularize the Nabakalebara Festival , 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 and the Sun temple in Konark. Odissi is the major dance form of the state. As per the budget -17, the state government has allocated US$ million for the endorsement of culture, tourism as well as heritage of the state during -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 and US$ 0.30 million, respectively during

36 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$ 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 As per the budget -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 -17. Further, the state government has also projected to assign US$ 1.52 million under the initiative of BANY (Biju Atma Nijukti Yojana) during -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 -17. Key industrial zones Talcher-Angul Kalinganagar-Duburi Bhubaneshwar-Khurda Rayagada-Sunabeda Gopalpur-Chatrapur Paradip-Jagatsinghpur Jharsuguda-Brajarajnagar Economic Survey of Odisha, IDCO Odisha Industrial Infrastructure Development Corporation, MoU Memorandum of Understanding 36

37 INDUSTRIAL INFRASTRUCTURE (2/3) Industrial zones Description 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. 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. It is a strategically located, 11-storeyed business centre in Bhubaneswar and has a number of IT/ITeS companies. 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. The Software Technology Parks of India (STPI) has developed software technology parks at Bhubaneswar, Rourkela and Berhampur. 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. Infocity Fortune Tower Industrial Infrastructure Development Corporation (IDCO) Tower Special economic zones (SEZs) Technology parks Mega food park 37

38 INDUSTRIAL INFRASTRUCTURE (3/3) Category MSME units (No) Repairing & services 46,441 Food & allied sectors 27,284 Engineering & metal 13,887 Textiles 9162 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 Source: Economic Survey of Odisha MSME: Micro, Small and Medium Enterprises 38

39 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. 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 Year Number Proposed Investments (US$ billion) Source: Economic Survey of Odisha, DIPP, 1Up to October 2015 IEM: Industrial Entrepreneur Memoranda LOI: Letters of Intent DIL: Direct Industrial Licenses 39

40 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 million tonnes in to million tonnes during 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 (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 -17, for building steel bailey bridges across the remote areas of IAP districts, an allocation of US$ million has been proposed by Government of Odisha during -17. Source: Economic Survey of Odisha, State Budget -17, MTPA: Million tonnes per annum 40

41 KEY INDUSTRIES IRON, STEEL AND FERROALLOY (2/3) Key ferro-alloy industries in Odisha Producer Product mix Ispat Alloys, Balasore Ferro Manganese, Ferro Chrome Indian Charge Chrome Ltd., Chandwar Charge Chrome, Ferro Chrome Ferro Alloy Corp. Ltd., Balasore Charge Chrome, H.C. Ferro Chrome Indian Metals & Ferro AlloysLtd.,Rayagara, Karatpur Ferro Chome, Charge Chrome,Ferro Silicon Tata Steel Ferro Alloy Plant, Bamnipar, Kendujhar H. C. Ferro Chrome, Charge Chrome Tata Steel Ferro Alloy Plant, Rawmet H. C. Ferro Chrome Tata Steel Ferro Alloy Plant Goda Silico Manganese, Ferro Manganese Ferro Chrome Ltd Ferro Chrome Jeypur Sugar Ltd, Jeypur, Ferro Chrome Source: News articles 41

42 KEY INDUSTRIES IRON, STEEL AND FERROALLOY (3/3) Key players Established in 1907, Tata Steel is Asia's first and one of India's largest private sector steel companies. The consolidated revenue of the company for was recorded to be US$ 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 The company plans to expand its production capacity to 16 million tonnes by Tata Steel POSCO India Pvt Ltd 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 -17 and is estimated to cost US$ 12 billion. It will manufacture hot-rolled products and slabs. Visa Steel Ltd is a subsidiary of VISA Infrastructure Ltd. It produces pig iron, coke and chrome ore. In , the company recorded consolidated revenues of US$ 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. 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. Visa Steel Ltd Essar Steel 42

43 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 to million tonnes in It also has adequate water and power supply for such industries. In May, with total investment of US$ 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 and Alumina production by NALCO (million tonnes) ( ) Bauxite Alumina 1.95 Source: Indian Bureau of Mines NALCO: National Aluminium Company Limited 1 Up to December,

44 KEY INDUSTRIES ALUMINIUM (2/2) Key players National Aluminium Co Ltd (NALCO) Hindalco Industries Ltd (HIL) NALCO is among Asia's largest and one of the world's leading integrated aluminium complexes. Its operations include bauxite mining, alumina refining, aluminium smelting and casting, power generation, rail and port management. The company recorded revenues of US$ 1.04 billion in 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$ billion during 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 HIL produces 161,400 tonnes per annum (TPA) of aluminium from its plant at Hirakud. Vedanta Resources plc, the London-based holding company of the Sterlite group, is a key Vedanta Group player in the aluminium industry in India. The company recorded revenues of US$ billion in In , the company recorded revenues of US$ 4.55 billion. 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. 44

45 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 -17, an amount of US$ 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$ million, as per the -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 , 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. Training Centres controlled by Khadi and Village Industries Commission (KVIC) in Odisha Training Center Location Multi Disciplinary Training Centre Bhubaneswar Sambalpur Silk & Gramodyog Samiti, National Rural Resource Education & Training Centre Deogarh Source: Economic Survey of Odisha 45

46 KEY INDUSTRIES SSI, HANDICRAFT AND COTTAGE INDUSTRIES (2/2) Funds released under National Handloom Development Programme ( ) US$ 000 Handloom Marketing Assistance (HMA) Training Centres controlled by Khadi and Village Industries Commission (KVIC) in Odisha Ambedkar Hastshilp Vikas Yojna (AHVY) 1, Marketing Support and Services (MSS) Scheme Human Resource Development (HRD) Scheme Infrastructure Design R&D Financial assistance to handloom weavers (in US$ million) Source: Ministry of Textiles, Government of India 46

47 KEY INDUSTRIES AGRICULTURE AND FERTILISER INDUSTRIES (1/4) 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 -17, an amount of US$ 2.01 billion has been allocated to the agriculture department during -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 -17, for supporting the efforts being implemented for the endorsement of agri-entrepreneurship across the state, as per budget -17 of Odisha. Requirement, availability and sales of fertilizers in Odisha ( 000 MT) ( ) Fertilizer Requirement Availability Sales Urea DAP MOP NPK Source: Ministry of Food Processing Industries, Government of India 1 As of June

48 KEY INDUSTRIES AGRICULTURE AND FERTILISER INDUSTRIES (2/4) Agro Climatic Zone Agro Climatic Zone Districts Covered North-Western Plateau Sundargarh, Deogarh North-Central Plateau Mayurbhanj, Keonjhar (Except Anandapur) North-Eastern Coastal Plains East & South Coastal Plains Balasore, Bhadrak, Jajpur (Except Sukinda), (Anandapur) Cuttack (Part), Kendrapara,Jagatsinghpur, Puri, Ganjam (Part), Khurda, Nayagarh Crops Rice, Greengram, Blackgram, Arhar, Horsegram, Groundnut, Mustard, Wheat, Potato, Sweet potato, Vegetables, Mango, Banana, Citrus, Litchi, Guava and Papaya. Rice, Wheat, Arhar, Greengram, Blackgram, Horsegram, Groundnut, Linseed, Mustard, Mesta, Niger, Sweet potato, Potato, Chilli, Turmeric, Ginger, Vegetables, Mango, Banana, Citrus, Pineapple and Sapota. Rice, Greengram, Blackgram, Mustard, Groundnut, Jute, Sweet potato, Potato, Chilli, Vegetables, Mango, Banana, Papaya, Guava, Coconut. 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. Source: Economic Survey of Odisha 48

49 KEY INDUSTRIES AGRICULTURE AND FERTILISER INDUSTRIES (3/4) Agro Climatic Zone Agro Climatic Zone 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. Source: Economic Survey of Odisha 49

50 KEY INDUSTRIES AGRICULTURE AND FERTILISER INDUSTRIES (4/4) Key players Sakthi Sugars Ltd Aska Cooperative Sugar Industries Ltd Paradeep Phosphates Ltd (PPL) Indian Farmers Fertiliser Cooperative (IFFCO) 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$ million in The company was established in the year 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, 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 726,000 tonnes. In , the quantity of DAP manufactured by the company stood at thousand metric tonnes. The quantity of DAP manufactured by the company during April-June 2015 stood at thousand metric tonnes. IFFCO produces and distributes fertilizers to farmers and member co-operatives in India. Its products include urea and fertilisers, indigenous seeds and chemicals. The revenue of the company was US$ 4.1 billion in

51 KEY INDUSTRIES MINING (1/3) Mineral reserves by districts 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 Mineral production Mineral Bauxite (tonnes) 9,191,521 10,839,542 Chromite (tonnes) 2,134,990 3,102,940 Iron ore (thousand tonnes) 53,133,754 80,866,243 Manganese ore (tonnes) 357, ,271 Dolomite (tonnes) 460,813 1,035,242 Coal (tonnes) 121,101, ,580,000 Sundergarh Lead, copper, coal, dolomite, fireclay, iron ore, limestone, manganese, quartz, bauxite Graphite (tonnes) 5,134 17,643 Sambalpur Coal, base metal (lead and copper), chinaclay, fireclay Limestone (thousand tonnes) 3,413,260 4,524,561 Keonjhar Asbestos, pyroxenite, iron ore, chromite, chinaclay, pyrophyllite, manganese, gold, dolomite, limestone, quartzite, quartz Pyrophyllite (tonnes) 4,389 4,490 Quartzite (tonnes) 29,817 50,084 Silica Sand (tonnes) Kadhamal Graphite Balasore Vanadiferous/magnetite Source: Ministry of Mines, Government of India 51

52 KEY INDUSTRIES MINING (2/3) Mineral revenue in Odisha (US$ million) Coal resources in Odisha million tonnes (As of April 2015) Proved Indicated Inferred 30,747 36,545 8,507 Total reserves 75,799 Odisha is one of India s richest states in terms of mineral reserves. The mineral belt is spread over an area of more than 6,000 sq km. Moreover, the state accounts for more than 35 per cent 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. Source: Ministry of Mines, Government of India Ministry of Coal, Government of India 52

53 KEY INDUSTRIES MINING (3/3) Key players Orissa Mining Corporation Ltd Mahanadi Coalfields Ltd (MCL) 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 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 It has two coalfields at Talcher & IB Valley in Odisha. The total raw coal production at MCL in was million tonnes which increased to metric tonnes in The company employs around 22,023 people. Rungta Mines Ltd Rungta Mines Limited is the flagship company of the S R Rungta Group. The company specialises Ferro Alloys Corp Ltd (FACOR) Founded in 1955, FACOR is one of the largest producers and exporters of high-carbon ferro-chrome 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$ million. 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$ million in

54 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 and management professionals and 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 and Berhampur. In Odisha, the IT firms registered with the STPI provide employment to about 10,000 people. Information and Communication Technology Policy-2014 has been formed, aimed at creating employment opportunities for over 60,000 IT professionals in the state, through Also, the scheme focuses at bringing over 10 leading IT and 5 ESDM companies to the state. The state government allocated US$ million under state budget -17, for embracing various projects related to IT and e-governance under different departments of the state. In September 2015, the Government of Odisha announced plans to spend US$ million over the course of next five years for the development of IT/ITeS/ESDM sector of Odisha. The government aims at creating more than 100,000 job opportunities through this investment. Increased demand from IT giants such as Tata Consultancy Services, Infosys and Wipro is expected to generate 30,000 jobs over the next two 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 Source: News articles STPI: Software Technology Parks of India, SME: Small and Medium Enterprises BPO: Business Process Outsourcing 54

55 KEY INDUSTRIES IT/ITeS AND ELECTRONICS (2/2) Key players Infosys was set up in The company recorded revenues of US$ 9.53 billion in 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 2015, the company had an employee strength of 176,187 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$ billion in From April-September 2015, the company recorded revenues of US$ 8.76 billion. TCS employs over 315,000 people worldwide with a presence in 55 countries. It has operations in Odisha (in Bhubaneswar) since The company plans to further strengthen its presence in the state by and create over 10,000 IT jobs. Infosys Ltd Tata Consultancy Services (TCS) Established in 1945, the company had revenues of US$ 7.82 billion in 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. Wipro Ltd 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. 55

56 KEY INDUSTRIES TOURISM (1/2) In , 12,067,695 domestic tourists and 67,364 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 and is home to about 500 temples. Puri, Bhubaneswar and Konark are the main centres for religious tourism. Hotel Infrastructure in Odisha ( ) Year No. of Hotels No. of Rooms No. of Beds High-Spending Group ,903 25,062 Middle-Spending Group 455 9,219 18,924 Low-Spending Group ,264 29,108 Total 1,759 36,386 73,094 Total tourist arrivals in Odisha (millions) As of , 350 places of Odisha have been recognized as major tourist attractions. As per state budget -17, the state government allocated US$ 1.52 million for development and enhancement of eco-tourism in Odisha. Source: Economic Survey of Odisha, Tourism Report, Government of Odisha, Ministry of Tourism, Government of India 56

57 KEY INDUSTRIES TOURISM (2/2) The Government of Odisha is increasing its focus on eco tourism. During , 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. Majority of the tourist in Odisha come from from West Bengal and Andhra Pradesh. During , these two states (West Bengal and Andhra Pradesh) accounted for around per cent share in tourist visits to Odisha. During , 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 The Nabakalebara Festival-2015 was a grand success due to promotional efforts of the government. Under Budget for -17, an investment of US$ million is proposed for the growth and development of the tourism sector. Funds sanctioned under various schemes to promote tourism in Odisha Year Number of projects Sanctioned amount (US$ million) 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 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 Ministry of Tourism, Government of India 57

58 SINGLE-WINDOW CLEARANCE MECHANISM (1/2) Under the chairmanship of Investments handled Greater than US$ million High-level clearance authority Between US$ 10.9 and US$ million State-level single-window clearance authority Chief Secretary Less than US$ 10.9 million District-level single-window clearance authority District Collector Chief Minister of Odisha Nodal agency Industrial Promotion and Investment Corporation of Odisha (IPICOL) (Team Odisha): State-level District Industries Centre 58

59 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$ 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$ million or above. 59

60 KEY INVESTMENT PROMOTION OFFICES (1/4) Agency Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL) Industrial Development Corporation of Orissa Limited (IDCOL) Orissa Industrial Infrastructure Development Corporation (IDCO) Description 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 , the IPICOL received 26 combined application forms for setting up projects with an investment of US$ billion. 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. 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 , IDCO allotted acres of land and sheds to 14 new industrial estates/areas across the state. 60

61 KEY INVESTMENT PROMOTION OFFICES (2/4) Agency Agricultural Promotion and Investment Corporation of Odisha Limited (APICOL) Orissa State Financial Corporation (OSFC) Orissa Pisciculture Development Corporation Limited (OPDC) Description 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 , the corporation promoted 145 commercial agro-enterprises with an aggregate investment of about US$ 24,38, 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. 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. 61

62 KEY INVESTMENT PROMOTION OFFICES (3/4) Agency Directorate of Export Promotion & Marketing (DEPM) Odisha Small Industries Corporation Ltd (OSIC) The Orissa State Cooperative Handicrafts Corporation (OSCHC) Description 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. 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. 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. 62

63 KEY INVESTMENT PROMOTION OFFICES (4/4) Agency Orissa State Electronics Development Corporation (OSEDC) Grid Corporation of India Limited (GRIDCO) Orissa State Pollution Control Board (OSPCB) Description OSEDC was established in 1981 as the nodal organisation in the state for promotion of electronic industries, both in hardware and software. 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. 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. 63

64 CONTACT LIST Agency Contact information Directorate of Industries Killa Maidan, Cuttack Phone: Fax: Website: Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL) IPICOL House, Janpath, Bhubaneswar Phone: Fax: Website: 64

65 KEY APPROVALS REQUIRED Approvals/Clearances required Departments to be consulted 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) IDCO Department of Town and Country Planning 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 65

66 COST OF DOING BUSINESS IN Cost parameter Cost estimate Industrial land (per sq ft) US$ 2 to US$ 15 Office space rent (per sq ft per month) US$ 0.2 to US$ 2 Residential rent (for a 2,000 sq ft house, per month) US$ 200 to US$ 400 Five-star hotel room (per night) US$ 200 to US$ 450 Power cost (per kwh) Labour cost (minimum wage per day) Industries: US 7.5 cents to US 10.4 cents US$ 2.5 to US$ 3.41 Source: Ministry of Labour and Employment, Government of India, Industry sources 66

67 STATE ACTS & POLICIES (1/5) Industrial Policy Resolution (IPR) 2015 Objectives To revolutionise the state of Odisha into a dynamic industrialised territory. To attract investments and promote economic growth in the state of Odisha. Read more Special Economic Zones Policy 2015 Objectives 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. Read more The State Reservoir Fishery Policy 2014 Objectives Tapping the potential of aquaculture to contribute to food and nutritional security. Boosting the public-private partnership investment across the sector. Read more 67

68 STATE ACTS & POLICIES (2/5) Information & Communication Technology (ICT) Policy 2014 Objective Development of new IT/ITeS locations across the state through upgradation of the IT JUNE infrastructure by setting up IT parks. Read more Odisha Tourism Policy Objectives 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 State Agriculture Policy Objectives To bring in a shift from the present level of subsistence agriculture to profitable commercial agriculture. To promote sustainable agricultural development. Read more 68

69 STATE ACTS & POLICIES (3/5) Odisha Solar Policy Objective To promote the use of solar energy in the state in order to support development and address the problem on energy security. Read more Odisha State Urban Water Supply Policy, Objective 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. Read more State Youth Policy Objective Equal opportunity and experience to enable youth for developing knowledge, skills and competencies to play an active role in all aspects of the society Read more 69

70 STATE ACTS & POLICIES (4/5) Excise Policy Objective To adopt excise duty, fee structure and guidelines for the settlement of excise shops and establishments. Read more Orissa Micro, Small, and Medium Enterprises (MSME) Development Policy 2009 Objective To enhance contribution of MSMEs in manufacturing and services sector of Odisha s economy. Read more Export Policy 2008 (Draft) Objectives 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. Read more 70

71 STATE ACTS & POLICIES (5/5) Water Policy 2007 Objective 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. Read more Orissa Public Private Partnership (PPP) Policy 2007 Objective To supplement scarce public resources, create a more competitive environment, help improve efficiencies and reduce costs. Read more MSME Development Policy 2015 Objectives To improve competitiveness in the MSME industry of the state of Odisha. To encourage investments in the MSME sector of Odisha. Read more Entrepreneurship Development Policy 2015 Objectives To bring about a change in the mind-set regarding entrepreneurship through elimination of negative biases towards the sector. updated information, please visit To support start-ups in the state by providing For infrastructure facilities, marketing Read more assistance and credit. 71

72 CONFERENCES/SUMMITS FOR -17 Venue of summit/conference Date One Week National Workshop On Research Methodology in Social Sciences August, Bhubaneswar 16th August, National Conference on Skill Development Bhubaneswar 23rd September, International Conference on Recent Advancement in Air-conditioning and Refrigeration: RAAR Bhubaneswar 10th November, International Conference on Role of Media in Democracy Bhubaneswar 25th November, IMI Bhubaneswar and EGADE Business School, Mexico City jointly organize International Conference on "Innovation, Market Competition and Economic Development." Bhubaneswar 9th December, International Conference on Advanced Computing and Intelligent Engineering Bhubaneswar 21st December, Summit/conference Source: India conference alerts De-centring English Studies: Studying Literature in the Global South Bhubaneswar 20th January, Source: India Conference Alerts 72

73 ANNEXURE Average exchange rates Year INR equivalent of one US$ Source: Reserve Bank of India 73

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