Home » Commerce and Industry » ODISHA: DESTINATION REDIFINED


While the economy of Odisha expanded during the fiscal period 2011 to 2018 by 53 percent, its real per capital income increased by 42 percent to an estimated level of Rs. 92,727 in 2017-18. The improvement in the growth trajectory of the state over the last five years can be attributed to several development initiatives and prudent macro and micro management of the economy.

Odisha marches ahead to “take off” stage of growth in its economy. The vast coast line, fertile land, rich natural resources and nature’s abundant gift to the state are the hallmark of the state’s economic status. Political stability backed by able economic leadership paved the way for Odisha to an empowered and developed economy of the nation. Odisha is considered as a majestic land where the past and future forms a harmonious blend. The perspective state policies, strong institutional mechanisms, skilling of potential youth and enhanced sectorial outlays in priority sector expect to maintain the optimistic growth trajectory of Odisha’s economy in future. Besides this a proactive and stable Government backed by sustained. Team work, Transparency, Technology & Time (the much committed jibe of the State Government) may transform Odisha into a self-sustained developed economy.

The steady growth of the state economy assists the transformation and development of the state in break-neck speed. Although the real GSDP growth rate remains impressive at 7.14 percent in 2017-18 with improved growth performance including manufacturing, energy and water supply, but there are some concerns in agricultural sector after a hectic growth in 2016-17. There is strong rebound in services sector with a double digit growth of 12.4 percent. Inflation rate, related to food and beverages, has fallen sharply to 1.3 percent per annum. Finance, Infrastructure and social sectors have also improved on their performance. There is enough reason to believe that the considerable decline in the incidence of poverty witnessed in the past decade is holding its ground and momentum in the wake of sustained efforts on the part of the state Government to address the distributional concerns in the society. In fact, Odisha’s economy is poised to take off and consolidate its recent gains with good leadership, informed evidence based policymaking and accountable implementation of public policy programmes.

The state economy is on a path of steady improvement in its growth in 2017-18. Odisha’s GSDP is estimated to grow at 7.14 percent as against the national average of 6.5 percent in India. This follows a striking expansion of 10.39 percent in 2016-17. Over the past few years the state is exhibiting strong catch-up growth which is helping in the transformation of the economy, from a lagging state to a state on move. During the fiscal period 2011 to 2018, while the economy expanded by 53 percent, its real per capital income increased by 42 percent to an estimated level of Rs. 92,727 in 2017-18. The improvement in the growth trajectory of the state over the last five years can be attributed to several development initiatives and prudent macro and micro management of the economy. Although a structural shift is visible, but it is largely on account of a shrinking share of industrial sector in the state. At present services account for 45 percent of GSDP, industry 35 percent and agriculture sector about 20 percent. The fact that the share of industry in out-put is shrinking and agriculture continuous to account for an imposing 62 percent of the total unorganized workforce in the medium term. However even if there is considerable improvement in social attainments of people in Odisha, including addressing abject poverty, there is significant scope for bridging development gaps that still remain and improving the quality and coverage of publicly provided social services.

The state remains a better performer of economy among all major states in current decade. Its real growth rate averaged an impressive 7.02 percent as against 6.80 percent at the national level in last six years. 2016-17 was the year of macro buoyancy for Odisha with double digit real growth rate of 10.4 percent. During 2017-18 the state has registered a growth rate of 7.14 percent at 2011-12 prices, which surpasses all India growth rate of 6.5 percent. Services sector as a leading contributor to GSDP has contributed 38.54 percent in 2011-12 which increases tremendously to 45.25 percent in 2017-18 and surpasses agriculture and industry sector over years. The MPCE that symbolizes the extent of level of living, distinctly increased from            Rs. 472 in 2004-05 to Rs. 2285 in 2016-17 in Odisha. This directly influenced the faster fall in poverty ratio, deprivation level of Odisha to a visible extent. Economic growth is a crucial mean for expanding the substantive freedom that people value. This freedom is strongly associated with improvements in general living standards, such as great opportunities for people to become healthier and remain happy in the long run. The economy of Odisha posted its fastest growth in three years from 2015-16 to 2017-18 after moving downwards in 2014-15. The economic growth of the state in terms of GSDP at market prices was averaging 6.66 percent from 2012-13 to 2016-17 as against the all India average of 6.84 percent. The process of structural transformation of economics can be studied by viewing the sectorial shares of economic activities grouped into three broad sectors, namely Agriculture and allied Industries and services. Both, industries and service sectors, accounting for more than four fifths of GSDP, continued to be the largest contributors to economic growth. However the share of industries sector has been declined marginally. During these years services sector witnessed a continuous expansion with a total gross value of 45.25 percent. Agriculture and allied sector being monsoon dependant showed a fluctuating trend.

Inflation affects purchasing power of the population although the impact is not evenly distributed in the economy. Inflationary situation may be associated with fall in output and thereby affecting growth performance of the economy. The diversified sector of the state plays a vital role in the economic contribution of the state.



Agriculture-the traditional one

The state experienced transient success in terms of crop area production, productivity, food security, irrigation during the year leading to rise in farmer’s income. The production, productivity and per capita availability of animal husbandry and fishery products were impressive in 2016-17. Forestry sector performed well with the rise in actual forestry area and timber production. Formulation of state agriculture policy 2013, Odisha Fishery policy 2015 and exclusive agriculture budget by the state government show the way for sustainable practices with higher investment, efficient production technology, post-harvest solutions, effective value addition and remunerative market options in agriculture sector. The share of agriculture sector is about 20 percent of total GSDP of the state. The state government is keen to increase agricultural production and raise productivity through improved land and water management. Strategic intervention for increasing production and productivity of various crops are being implemented in the state through various schemes. Some of the major schemes and initiatives are NMOOP (National Mission on Oilseeds and Oil Palm), NMSA (National Mission for sustainable Agriculture), NMAET (National Mission on Agriculture Extension and Technology), RKVY (Rastriya Krishi Vikas Yojana), BKKY (Biju Krushaka Kalyan Yojana) and IWMP (Integrated Watershed Management Programme). Some of the prominent institute like OUAT, ICAR-CRRI, APICOL, OAIC, OSSC, OSCDC provides the necessary impetus for the rapid growth and development of these sectors.

The state government has awarded 2017 Prakruti Mitra and Prakruti Bandhu during 2016-17 on world environment day 2016. State forestry awards and “Biju Patanaik Award for wildlife conservation” are being given for outstanding contribution in the field of afforestation, plantation and wildlife conservation in the state.

Odisha is basically an agrarian state and here major population depends on Agriculture. The SWOT analysis of agriculture sector bears strategic implications. The opportunities are being explored. The threats like natural risks and depleting crop area continue to be major concerns. Although the sectorial share of agriculture to GSDP declines to less than one fifth of GSDP of Odisha in recent decade, it still provides employment, income and sustenance to more than 60 percent of working population. The crop production and productivity of the state is slowly picking up after the severe drought in 2015-16. But Odisha achieved transient success in terms of increased net area sown, food security, irrigation, enhancement in farmer’s income etc. during the year through policy initiatives of the Government and their effective implementation. State has made remarkable progress in Agriculture sector over the years. The production, productivity and per capita availability of animal husbandry and fishery products were more impressive in 2017-18. Forestry sector performed well with the rise in actual forest area, timber production and forest revenue. Odisha is keen to address the issues of F.A.R.M.E.R i.e. Finance, Allied activities, Risk mitigation, Marketing access, Extension research and Resource use in agriculture sector with high priority.

Industry: the vibrant one

The state government makes viable strategies to make industry sector efficient and competitive with the accelerated support of technology, infrastructural, institutional and entrepreneurial skill development. The industry sector of the state is a more vibrant one which is moving in breakneck speed. The fast growing industrial sector of the state has increased the visibility of the state of national and international level and the state has emerged as a major destination for industrial units. The government armed with a proactive industrial policy, focuses on providing institutional infrastructure and need based fiscal initiatives to consolidate and reinforce the industrialisation process in the state. The thrust on public policy is on environment sustainable industrialisation with generation of maximum employment opportunity and augmentation of state revenue. The contribution of manufacturing and mining sector to state’s GSDP has been a sizable 16.23 percent and 7.72 percent respectively during 2017-18. The state having been bestowed with a rich stock of minerals occupies a prominent place in the mineral map of the country. Assured availability and proximity of mineral resources play an important role in giving a competitive edge to the state industrial units. A series of revised and new orientation IPRs between 1980 and 2015, post economic reforms in 1990s; rise in domestic demand for industrial products, favourable investment destination for outside state large industrial houses due to rich stock of minerals, water and energy resources and state policy decisions etc. steered the industrialisation process of the safe. The state government has developed viable strategies to make industry sector efficient and competitive with the accelerated support of technological, infrastructural, institutional and entrepreneurial skill development. This would enable the state to compete in the domestic market as well as capture international markets with the industrial products. Industrialisation is crucial not only for income generation but also for people’s attitude towards self-reliance. The new regime of national level industrial reform includes measures such as Make in India Programme; I-BIZ Project by launching of Government to business (G & B) portal; new ministry of skill development and entrepreneurship, streamlining of environment and forest clearances and labour sector reform through new Shram Suvidha Portal. Besides a number of technology interventions has been carried out as part of improving Ease of Doing Business such as Go-I PLUS, Single Sign on (SSO), CICG, APAA, and e-subidha which expect to instil confidence among business coming and boost industrial growth of the state.

To promote industrialisation, the state Govt. has adopted strategic initiatives based on policy intervention, creation of infrastructure, investment promotion and business rule simplification. To make Odsha an attractive investment destination and diversified industrial growth with identified focus sectors. The Department has notified a new industrial policy in 2015 to facilitate the development of more special Economic zones (SEZ). Besides to ensure to ivest in the focused sector, the Department has come out with an innovative plan i.e. Odisha Industrial Development Plan (OIDP) with an objective to transform Odisha over ten years into a major industrial state in the country by harnessing its strategic advantages in the area of infrastructure, location, natural resources and skilled manpower. The plan aims at creation of additional 20 lakh jobs with an investment of about 2.5 lakh crores in five focus sectors by the year 2025. The industry sector is a top employment provider for more than 12 lakh persons in the state. The state has become a leading investment destination for key industrialists outside the state due to the advantage of rich mineral reserves, high industrial growth trajectory, effective single window system, competitive power tarrif political willpower and stability, availability of industrial manpower and development of infrastructure.

Industrial sector occupies an important position in state economy and has major role to play in realizing rapid economic development. This sector covers following sub-sectors.

  1. Manufacturing
  2. Mining & quarrying
  • Electricity, Gas, Water supply & utility services and
  1. Construction

Value additions from above sub-sectors account for more than one third of GSDP. Manufacturing sector contributes 18.55 percent on an average to total GSVA, thus becoming a major driver of growth. The other sub-sectors like mining quarrying and construction also contributes 9.32 percent and 8.21 percent an average respectively. The electric, gas, water supply & utility services sub-sectors has lower share averaging at 3.29 percent.

Industry: the busy climate

The growth of any economy depends on its industrial growth and development. The industrial sector of the state is a vibrant one which is moving in break-neck speed. Manufacturing and mining sectors emerged to contribute sizeable 19.42 percent & 8.69 percent share to GSDP of Odisha respectively in 2017-18 from a meager 1 pearcent share each in 1950s. the shift was required for effective mobilization of natural and human resources; larger employment generation, augmentation of domestic supply and sustainable export promotion of Odisha. State policies, reforms, investment decisions, resource stock, demand-supply characteristics, institutional mechanisms etc. showed the way to ‘advantage industry’ in Odisha over the decades. Series of revised and new orientation IPRs between 1980 & 2015 and its subsequent commencement. post economic reforms in 1990s; rise in domestic driven demand for industrial products; favourable investment destination for outside State large industrial houses due to rich stock of minerals, water and energy resources and State’s policy decisions etc. steered the industrialization process in Odisha. The State Government makes viable strategies to make industry sector efficient & competitive with the accelerated support of technological, infrastructural, institutional & entrepreneurial skill development. This would enable the State to compete with national domestic as well as capture international markets on its industrial products. Industrialization is crucial not only for income redistribution but also for people’s attitude towards self-reliance etc. The new regime of national level industrial reform measures such as liberalized mechanism of Ease of doing business. Make in India programme; E-Biz project by launching of Government to Business (G2B) portal; new Ministry of Skill Development & Entrepreneurship; Streamlining of environment & forest clearances and labour sector reform through new Shram Suvidha portal etc. expect to install confidence among business community & boost up industrial growth in the State.  This is actually working effectively in the state.

Business policy ambience in the state

Government of Odisha has formulated the following polices for providing necessary impetus to specific sectors.

.         Industrial Policy 2015

.         Policy and Incentive Framework

.         Sectoral Policies

.         Apparel Policy

.         Biotechnology Policy 2018

.         Health Care Investment Promotion Policy 2016

.         ICT Policy, 2014

.         Odisha Fisheries Policy 2015

.         Odisha Food Processing Policy 2016

.         Odisha Tourism Policy 2016

.         Pharmaceuticals Policy 2016

.         Renewable Energy Policy 2016

.         Odisha MSME Policy 2016

.         Policy for Special Economic Zones 2015

.         Startup Policy 2016

The Government has taken proactive measures to attract investments by creating the concept of “Team Odisha” and “Invest Odisha” for industrial facilitation and investment promotion. New Industrial Policy-2015 and SEZ Policy 2015 have been implemented by the Govt. with an aim to attract investment and create industry friendly atmosphere by extending various fiscal and non-fiscal incentives. Further, OIF, Rules 2004 have been amended keeping in mind the new requirement of opportunities. State Govt. drives the Make in India programme launched by Govt. of India and implements the Ease of Doing Business (EODB) in the state. The state has achieved a significant place in the World Bank ranking of EODB assessment. Further the Govt. has setup online processing of Combined Application Forms (CAF) for industries under e-Biz platform of Govt. of India. IDCOL, the state owned enterprise has signed MOU on Dt. 07.02.2015 with Indian Rare Earth Limited (IREL) for development of 1257.03 hcts. of Beach Sand area through JV Company. It has been decided to form a JV Company with IREL holding 51 percent and IDCOL holding 49 percent and application will be made to Govt. for reservation of Beach Sand area. Govt. has sanctioned a budgetary support of Rs. 1 crore to IDCOL for setting up Technology Development Centre for promotion of low purity Ferro Alloys from deposit of nickel bearing late-rite ores-COB at Sukinda. IDCO has planned to establish 12 New Industrial estates in the districts of Anugul, Balasore, Cuttack, Jharsuguda, Sambalpur, Jagatsinghpur, Khordha, Sundargarh, Bhadrak, Dhenkanl, Ganjam and Rayagada for development of MSME and Ancilary Down Stream Industries for which Land acquisition is in progress.

The process of implementation of 76 projects for which investors has evinced interest after the make in Odisha conclaves organised by the state Government has started. Of the 76 projects, more than 60 have shown progress. 55 of them have already been approved by the Single Window Committees at the State & District Level. Implementation of five more have started after Departmental Clearance as these did not require Single Window Clearance. Out of the approved projects 10 are in food processing sector, eight each in manufacturing and metals & mines sectors, seven each in tourism & petrochemicals and plastic sectors. The rest 21 proposed projects are in health, infrastructure, information technology, electronics, energy, green energy in textile sectors.

Infrastructure: the road to progress

Infrastructure builds up a strong edifice of State’s economy. Railway & Ports play a vital role in infrastructure development.

Railway routes pass through twenty-three districts of the State, excluding Boudh, Deogarh, Kandhamal, Kendrapara, Malkanagiri & Nawarangpur. The density of coverage is relatively high in some regions of the State, while central parts remain largely untouched. A large disparity across districts exists. Overall, railway coverage is poor in the State and this is one of the factor that has hampered the pace of its industrial development. The railway route length in the State per thousand sq.km. which is the same as railway density, is about 16 km., while the national railway density is around 20 km. Paradeep Port, declared as the 8th major port of India in April, 1966 by Government of India, is the only major port in Odisha and the first major port on the East Coast commissioned in independent India. It has an artificial type lagoon of 500 meters length, 160 meters width and one turning circle of 520 meters moorings and one Ro-Ro jetty for handling various cargoes. Of this, 5 berths are fully mechanized for handling of iron ore, thermal coal and POL. Two berths are captive berth has been allotted to M/S ESSAR for handling of iron ore pellets on captive basis and the others are multi-purpose in nature and semi-mechanized. The port has 109 million tonnes of cargo handling capacity. The major on-going capacity addition projects in the port are Southern oil jetty multipurpose clean cargo berth, Deep drought coal berth and Deep drought iron ore berth on BOT basis.

With 480 Kms. of coast lines, Odisha has 13 potential sites for minor ports development. These minor ports are located at Gopalpur, Bahuda Muhan & Palur in Ganjam district, Baliharchandi & Astaranga in district, Jatadhar Muhan in Jagatsinghpur district, Inchri, Chandipur, Bahabalpur, Kirtania & Bichitrapur (Talasari) in Balasore district, Dhamra & Chudamani in Bhadrak district. Dhamra port is commercially operational while Gopalpur and Kirtania minor ports are under development with private sector support. As on December 2018 Gopalpur and Dhamara ports have handled about 18.20 lakh MT and 19.23 MT cargo respectively. Government of Odisha makes effort to develop a riverine port on Mahanadi River near Paradeep to boost coastal shipping. Odisha has declared Port Policy in 2004, Odisha Boat Rule 2004 and Maritime Board Bill 2012 for proper development, management, registration, operation and monitoring of ports and boats with private participation.

Steel: the solid one

Steel is known as the building block of national economy and fortunately Odisha is a key player in production of Steel in the country. Odisha is a vast reserve resource of Iron Ore. 33 percent of total iron ore reserves of India belongs to the State and has about 20 percent of the total steel production capacity of the country. Rourkela Steel Plant (RSP) & Neelachal ispat Nigam are the two PSUs in Odisha. The seven major players in private sectors included most of the reputed groups. The installed capacity of hot metal, crude Meta and saleable steel in RSP increased to 4.5 MTPA, 4.2 MTPA and 4.0 MTPA respectively after expansion through modernization of the plant. The corporate, Bhusan Steel expands its steel manufacturing capacity at Dhankanal district to 6 MTPA. It is also setting up 197 MW CPP. The investment of Bhusan Steel remains at Rs. 131.8 billion. Another mega corporate Tata Steel has set up 6 MTPA Integrated Steel Plant at Kalinga Nagar in Jajpur district at a projected cost of Rs. 431.5 billion and has been operational. Being a part of mineral development policy the state has ben value additions, mass employment generation and welfare oriented revenue collection. This has enabled the pursuing State Government to have 49 numbers of MoUs with different National & International steel companies for establishment of Mega Steel Plants in the State with a production target of 77.16 MT and involving investment over 213,969 crore. Of these 49 MoUs 35 have started commencement of their work. These industries have provided direct employment to about 25 thousands persons and indirect employment to 13 thousands persons which is quite disappointing in nature day by day. The State Government have approved the policy for long term linkage of iron ore, chrome ore and other minerals to the MoUs signed steel plant companies of Odisha through OMC. The State Government collaborates with Ministry of Steel, Government of India to upgrade Biju Pattnaik National Steel Institute to Centre for Excellence and to establish Ultra Mega Projects through NMDC (CPSU). To provide necessary impetus to the economy and encourage investments in the manufacturing sector, the State has envisaged this “National Investment and Manufacturing Zone” at Kalinga Nagar and is determined to create state of the art infrastructure and enabling industrial urbanism, catering to metal and manufacturing industry. The project is spread over an area of 40,339 acres which already boasts of large integrated steel plants with supportive infrastructure. An estimated investment of over $15.21 billion is expected to be made in this zone. Availability of diverse and large mineral reserves of aluminium, chrome and other feedstock will enable the potential investors for setting up of their industries with focus on Auto-ancillaries; component manufacturing, equipment/process manufacturing, heavy fabrication, downstream steel industries etc. The zone shall also have exclusive areas earmarked to be developed as downstream/ancillary industrial parks, which will thrive on the available feedstock. The development of these parks and the supporting physical and social infrastructure shall be carried out on PPP basis providing significant opportunities for the developers.

Aluminum: the emerging sector

The aluminium sector shows a promissory growth in the State economy over the years. With the presence of major player of the industry this sector strengthens the State economy. India is richly endowed with bauxite resource, which is the basic raw material for aluminium production. Estimated bauxite reserves of the country (proven and probable) stand at 593 million tons. Odisha has 52 percent of bauxite reserve and produces 35 percent of total bauxite production in India. Three major players are operating in Indian Aluminum Industry i.e. National Aluminum Company Limited (NALCO), HINDALCO Industries and the Sesa Sterlite Group, with a total installed smelting capacity of about 29 million tons. National Aluminium Company Limited (NALCO), a public sector unit with Government of India holding 80.93% equity, was established in January 1981, with its registered office at Bhubaneswar. The company has its Bauxite mines situated on a plateau in Damanjodi, Koraput in the State of Odisha. This bauxite deposit is mined by a fully mechanized system having a capacity of 6.8 MT per year. The aluminium refinery is located at Damanjodi, Odisha. The alumina produced is transported to aluminium smelter at Angul (Odisha) and to Vizag (Andhra Pradesh) port by rail with NALCO’s captive wagons. The present capacity of alumina refinery is 2.275 million tonnes per annum. The aluminium smelter and coal based pit head captive power plant at Angul are strategically located. NALCO has planned to set up a 0.5 MTPA Smelter and 1050 MW Power Plant in Sundargarh district in Odisha at an estimated investment of Rs. 19,000 Crore. It plans for establishment of approx. 14 MW Wind Power Project in mined out area of Damanjodi with an estimated investment of Rs. 82 Crore. In another major green initiative, the company has successfully commissioned 260 KW roof-top solar systems at its Corporate Office building at Bhubaneswar. The company also plans to install about 2 MW roof-top and ground mounted solar power project at NALCO Research and Technology Centre (NRTC) campus at Bhubaneswar.

Government of Odisha has made in-principle allocated 30 acres of land to NALCO in Angul Aluminum Park. NALCO has signed a MoU with Indian Rare Earth Ltd. (IREL) in July, 2014 for development of 1 LTPA titanium slag project at Chhatrapur in Odisha in Joint Venture (JV). To promote downstream and ancillary industries within the State, the company has committed 50,000 tonnes of the hot metal to the Angul Aluminum Park, which has been established in JV mode with IDCO. Odisha leads in the country with respect to aluminium production, after Vedanta Aluminum Limited (VAL) commenced production. The Aluminum produced by NALCO and Sesa Sterlite, together comprised about 57% of the total aluminium production. The Aluminum Park at Angul is exclusively state of the art industrial park for ancillary and downstream industries of Anumina. Spread over an aea of 223 acres, the park is strategically located at a distance of only 4 Kms. from National Highway-42. It is also first of its kind in the sub-smelter. About $29 million is proposed to be spent on developing state of an art infrastructure to facilities the industries and its value added products.

Mining: the stable one

Odisha is a mineral rich state and mining royalty constitutes the main source of state exchequer. Increasing Royalty rate of some ores and necessary amendment in MMDR Act in 2015 encourages Government of Odisha to formulate Odisha Mineral Exploration Policy-2015. The yearlong activities in this sector make the sector as the debatable one. The need to formulate Odisha Mineral Exploration Policy, 2015 was contemplated due to rich stock of mineral resources in Odisha, scope for increasing share of mining sector in State GDP, massive employment opportunities; necessity of judicious distribution of these mineral resources; scope for higher fiscal resources for the State etc. The objective of the policy is to strengthen the industrial institutional set up for the mineral exploration in the State and to upscale the mineral exploration and activities with an aim to upgrade the exploration level to G2 level in keeping with the UNFC norms within a stipulated time and eventually to G1 level so that the potential of mining sector is achieved through scientific exploitation of mineral resources.

The scientific mineral in the potential areas of the State are meant for augmenting the estimated mineral resources, systematic planning of mining activities and conservation of minerals. It also includes strengthening of Directorate of Geology by entering into MoUs with GSI & MECL on exploration activities. The policy proposes to set up an Odisha Mineral Exploration Corporation with active participation of the Odisha Mining Corporation to augment the mineral resource based industries of the State and to intensify the mineral exploration in the State. Both institutional and manpower capacity building will be strengthened. A master plan will be prepared for ten to fifteen years for taking up reconnaissance and prospecting operations for mineral, exploration etc. in consultation with all stakeholders.


The ancillary and downstream industries played a vital role in the state economy. Metal industry has witnessed an exponential growth in the country. As one of the largest growing economies, India is a major consumer of metals such as Steel & Aluminum. India is the largest consumer of Sponge Iron in the world, second largest consumer of stainless steel and third largest consumer of finished steel. India is also the fourth largest crude steel producer and fifth largest aluminium producer in the world. Odisha with its bountiful natural resources has always been the favourite investment destination in the metal sector. Odisha has huge potential for ancillary and downstream industries in the metal sector. The Government has been pro-active and pushing the activities to come up with an array of investment regions and Industrial Parks such as Kalinganagar National Park at Anugul, Downstream Steel Park at Anugul, Stainless Steel Park at Kalinganagar etc. The Industrial Parks would have committed feedstock from the mother industries in the vicinity and world class infrastructure with enabling ecosystem is awaited in this field. Odisha invites investors to explore the large opportunities in the sector and reap the benefits of the investor friendly ecosystem. In Metal, Aluminum & Paper sectors 102 downstream Industries have been started with an employment potential of 8166.

Petrochemical & chemical: the robust one

Petrochemical is the building block of national economy & Petrochemical industry has been one of the fastest growing sectors in the country and provides large scale employment opportunity. In recent years Petrochemical & Chemical are the major thrust area of the State. Odisha’s mega Chemical & Petrochemical Complex is very much limited to Paradeep. Due to closure of the State owned Paradeep Phosphate Limited at Paradeep and Fertiliser Plant at Talcher, the state has suffered a lot. Since State economy is based on agriculture, the importance of fertilizer plant has a special impact on the growth and development of the state. But the problems of Fertilizer Plants are not only limited to State but also several Fertilizer plants have stopped production in India due to inadequate gas supply from domestic market. This resulted in India importing over 15 lakh tons of fertilizers at higher prices. But despite of that, the state has good news to be elated. Under the prevailing circumstances the fertilizer industry got a boost by the announcement of a joint venture pact signed by Coal India, GAIL, RCF and the Fertilizer Corporation of India to set up an integrated coal gasification-cum-fertiliser and ammonium nitrate complex at Talcher in Odisha. Report indicates that the upstream venture costing Rs. 3000 crores, is to be called GAIL Coal Gas India Limited will hold 35% stake in the same, Fertilizer Corporation of India Limited will 11%, RCF & Coal India will hold 3% stake each, while the balance of 48% will be given to the technology provider and financial institutions. The upstream project is for converting coal into synthetic gas and the downstream plant proposes in manufacturing urea & other fertilizers. The downstream venture to be called Talcher Chemicals & Fertilizers Limited will be headed by RCF & Coal India, each of whom will hold a 40% stake, while GAIL & FCIL will take the balance 10% each. This plant is expected to manufactuire 1.3 million tons of urea. Two coal blocks have been earmarked for this project; one has been allocated and the other is stand by and kept as reserve. The development work to mine coal in this allocated block will start very soon.  The elating news is that the state is that PPL has been taken by “ADVANTAGE” Group which has an ambitious plan to revamp the plant by 2022 by utilizing about 9459.17 crores of Rupees.

To promote investment in petroleum, chemicals and petrochemicals, the state has placed this sector in the list of priority sectors. Government of Odisha has initiated steps to crate mega integrated Petroleum Chemicals and Petrochemicals investment Region (PCPIR) in 284 acres in Jagatsinghpur and Kendrapara districts. This is the 4th PCPIR, in the country and IOCL is the anchor tenant in this PCPIR. An SPV “Paradeep Investment Region Development Limited” has also been formed for the implementation of infrastructure in the region. In order to sustain the current investment level and attract future investments, high quality industrial and social infrastructure support is a key requirement. Since a large part of the investment is to come from petroleum, chemicals and petrochemicals, the state has placed this sector in the list of priority sectors. Government of Odisha has initiated steps to crate mega integrated Petroleum Chemicals and Petrochemicals investment Region (PCPIR) in 284 acres in Jagatsinghpur and Kendrapara districts. This is the 4th PCPIR, in the country and IOCL is the anchor tenant in this PCPIR. An SPV “Paradeep Investment Region Development Limited” has also been formed for the implementation of infrastructure in the region. In order to sustain the current investment level and attract future investments, high quality industrial and social infrastructure support is a key requirement. A large part of the investment is to come from the private sector in the Public Private Partnership (PPP) mode as one of the preferred routes. The Odisha Public Private Partnership policy was introduced in 2007 to supplement limited public resources, create a more competitive environment, help improve efficiencies at reduce costs, Planning and co-ordination Department has been designated as the nodal Department and the Odisha Industrial Infrastructure Development Corporation (IDCO) as the technical secretariat for promotion of PPP projects. The high level clearance committee (HLCA) established under the Chairmanship of the Chief Minister approved all infrastructure projects of over Rs. 500 crore being undertaken in PPP mode. The state has also constituted Empowered Committee on infrastructure (ECI) consisting of a group of Secretaries under the Chairmanship of the Chief Secretary for facilitating infrastructure development in the state under PPP. The state Government has already created a “Land Bank” to meet the land requirements of anchor industries which have huge employment potential. A time bound action plan to implement and upgrade the maintenance & infrastructure facilities broadly aligned with the challenging needs in view of the current & emerging industrial scenario in the state has been initiated. Indian Oil Corporation Limited (IOCL) is India’s largest commercial enterprise headquarter at Delhi. Indian Oil’s business interests straddle the entire hydrocarbon value chain from refining, pipeline v transportation and marketing of petroleum products to exploration and production of crude oil and gas, marketing of natural gas and petrochemicals, besides forays into alternative energy and globalization of downstream operations. Having set up subsidiaries in Sri Lanka, Mauritius and the UAE, the corporation is simultaneously scouting for new business opportunities in the energy markets of Asia and Africa. It has also formed about 20 joint ventures with reputed business partners from India and abroad to pursue diverse business interest. Indian Oil Corporations latest Paraddep refinery is the nation’s largest fuel major started production of Petrol from the Rs. 3,455 Crore facility with its 3.9 MMTPA major spirits unit. The plant is looking for VGO-HDT which is yet to be commissioned. The refinery complex is the most modern facility in the country and is also the first and the largest Greenfield facility on the East Coast. This 15 million ton refinery is also the largest on the country’s Eastern Coast and is equipped with the largest technology including IOC’s own patented ‘Ind Max’ technology for better and higher LPG output. The refinery complex spans over 2100 acres, while the proposed Rs. 35,000 crore petrochem will come up on the north bank of jetty. It also has a 17 meter deep natural draft for its oil jetty that can berth very large ships and has captive multi fuel power plant that can generate over 360 MWs electricity. The Paradeep refinery is symbol of “Make in India” initiative. The sculpture is national salute to Govt. of India’s initiative to take India to the next level of growth by attracting big investments in the country and giving a boost to Indian skill and trade for economic development. The INDMAX technology implementation will double LPG gas to every household in next three years. The process has already been started and in State Capital Bhubaneswar the pipe line gas supply to kitchen instead of cylinder has already been resumed.

MSME: The Aspire One

The flagship of any industrial sector is SME, popularly known as Micro, Small and Medium Enterprises (MSME). Micro, Small and Medium enterprises (MSME), the backbone of any economy plays a vibrant role for the industrial growth of the State. MSME drives the State economy through its maximum contribution to employment generation, equitable distribution of the State income and proper mobilization of private sector resources of capital and skill. Government of Odisha endeavours to create adequate space for MSME development in the State over the years through various fiscal and non-fiscal incentives under IPR 2001, IPR 2015; MSME Development policy 2009 and related policies. Downstream industries have been categorised as “Thrust Sector”. Cluster units development in approach is being adopted to promote competitiveness of potential sectors. MSME sector shows upswing trend over years both in number of units, investment and empowerment generation. In view of the growing importance of small and micro manufacturing enterprises for the state economy, they have been provided with different types of subsidies including fiscal subsidies which include (i) Rebate on Land (ii) Capital Investment Subsidy (iii) Interest Subsidy (iv) Power Subsidy and (v) Reimbursement of the expenditure incurred for quality certification up to 50 percent.

The Directorate of Industries, Odisha is functioning under the administrative control of MSME Department. It is looking after promotion of MSMEs including Khadi and Village Industries, Coir Industries and Salt Industries in the State. Besides PMEGP (Prime Minister’s Employment Generation Programme) is also implemented. Growth of MSME sector is being emphasized not only because of its potential for generation of employment opportunities but also for its contribution to the output of the State. Government of Odisha aims to create adequate space for MSME development in the state over the years through various fiscal and non-fiscal incentives under IPRs including IPR 2015; MSME Development Policy-2015. State Govt. has introduced the single window clearance system – a three tier mechanism to attract industrial ventures through expeditious clearance at a single contact point. Cluster development approach is being adopted for enhancing the competitiveness of potential sectors.

MSME sector shows increasing trend over years both in number of units, investment and employment generation. During 2017-18 financial year, the MSME sector in Odisha has achieved a record growth with 59683 units gone into production with an investment of Rs. 323469.82 crore and employment generation of 179221 persons. Odisha is the first state to introduce administration of incentive for MSME basing on 3Ts from 16.9.17. Besides that the Department has initiated a programme on learning development in state of Odisha portal recently.

MSME Development Policy of Odisha 2015 has been formulated through an elaborate consultative process involving all stake holders including Industrial Association, Financial Institutions concerned and Government departments. The new IPR-2015 targets some of the fiscal incentives towards MSME’s such as, providing land at concessional rates, interest subsidy, exemption of stamp duty, VAT reimbursement, assistance for technical knowhow and marking supports and many more. The main emphasis of this new MSME policy is to make Odisha “a destination of choice” for MSME enterprises. The policy aims to attract new investment and provide support to the existing enterprises and accordingly the frame work has been divided as enabling, supporting and incentive frame work. To achieve the objectives the Government has stressed more on Single-Window facilitation cell, setting up ancillary and downstream units.

To support and accelerate the pace of development of Micro and Small enterprises sector, State Government have made an effort to develop a robust policy “Odisha Procurement Preference Policy for Micro and Small Enterprises-2015”, to provide and ensure fair, transparent, consistent and rationally equitable procurement practices of goods and services. State Government Departments and agencies and also Central Public Sector Undertaking signed MoU for different projects in the State. Externally aided projects shall also procure minimum 20% of their annual value of goods and services from local MSM’s.

Coastal Industries:

Odisha has good number of salt producing units in coastal districts. Ganjam and Balasore all three salt producing coastal districts, both in co-operative and private sector. There are three registered working co-operative Societies engaged in salt production along with 39 licenses in Private Sector. Huma is one of these co-operative societies. During last year 10047 MT of salt is produced, where as it was 10760 MT during the previous year. Out of the total production of 10047 MT, 3557 MT (99.78 percent) produced in co-operative sector and 6490 MT by private sector. State Government have taken necessary steps for strengthening salt production in co-operative sector by providing financial assistance for development of salt land, infrastructure facilities like construction of storage, go-down, purchase of pump sets, sinking of bore-wells for getting sub-soil brine etc.

Odisha ranked fifth at all India level as major coconut producing States and coconut cultivation is being made over an area of 51,000 ha with 2758 lakh nuts per annum. There is ample scope for development of coir industries in Odisha having a coast line of 480 Kms. Coir fiber production in the State is around 3660 MT per annum. Coir industry is labour intensive and 80 percent of the workers engaged in spinning of coir yarn are rural women. During last year 208 coir industries has been set up with coir products valued at Rs. 101.07 crore were produced by employing 112290 persons.

FOOD PROCESSING: The Promising One

Odisha is basically an agrarian state where majority of population depends on Agriculture. Agriculture is elemental to sustainable development & livelihood of Odisha. The depleted share of agriculture did not deter the State Government to address the sectoral challenges with high priority. The rise of net cultivated area & food grain production remain encouraging during last year leaving aside the barriers of low yield rates & uncertainties of natural shocks etc. Although livestock population fell sharply between 2007 & 2018 the per capita milk & meat consumption show rising trend of fish production along with the per capita consumption of fish increased to 11.4 Kg against WHO norm of 11 Kg. Forestry sector performed well  with 35 percent  of area being actual forest & tree cover. Better conservation measure, rise in mangrove areas and plantation activities helped to improve forest area in the state. Major state policies like State Agriculture Policy 2013, Sabuja Mission & stronger institutional supports put broad agriculture sector as a major driver of Odisha’s economy. Odisha is one of the largest producers of fruits, rice, pulses & major crops in the country. Odisha has 363,000 hectors of area under agriculture & horticulture, which has been increasing over the years. The state houses a large industry, which is recognized as an agricultural activity. The state has also excellent potential in developing value added products from diary, with all the available resources. Odisha intends to be a major destination for investments in agro/food processing infrastructure as a priority sector for inventions. As an initial step to encourage food processing infrastructure, the state houses 274,000 of cold storage facilities. Since the potential of food processing industry is very high, the state has formulated an exclusive food processing policy in 2013 by providing incentives to units willing to set up food processing investment in the state. This policy provides a one-time capital grant towards development of food parks. To encourage investors in the sector, two mega food parks are under developed at Rayagada & Khordha offer plug and play infrastructure with cold storate facilities, testing labs, skill development centres creating a complete ecosystem to the development of industry. The state has also identified the sector as a priority sector and as part of the IPR-2015 offer special incentives to the investors. Opportunities are abound in the field of rice-processing, support infrastructure, vegetable processing & poultry sectors. The state encourages investments in this sector and provides ‘Single Point’ to the interested investors.

TOURISM: Destination Odisha

Odisha has huge potential in tourism sector with ancient cultural heritage, a myriad of monuments and nature’s bounties beach resorts, ecotourism, flora & fauna, biodiversity, national parks & sanctuaries. Odisha, the soul of Incredible India has tremendous potential in tourism sector, because of its golden history, strategic geographical location, diverse demography and profound bounties of nature. It is endowed with rich potential of employment & income generation, foreign exchange earnings and value addition to the State economy. Tourism in Odisha is one of the main contributors to the economy (15 percent of GDP of Odisa). It is highly labour intensive sector. According to estimate, for every million rupees investment, Tourism sector creates 89 jobs as against 45 jobs in Primary Sector and 13 jobs in Secondary Sector. The ratio of indirect jobs to the direct jobs in the Tourism sector is approximately 3:1. The state of Odisha secured 3rd rank in terms of intensity of overnight domestic tourism, with an average of 541 trips per 100 households, as compared to the all India average 418 trips per 100 households.

It has capability to augment employment & income generation, foreign exchange earning & value addition to the state economy. With abundance of natural assets, Odisha tourism has undertaken programmes for ecologically sound & economically viable tourism development, integration of infrastructural support, institutional mechanism, investment etc. with developed framework of the state.  OTDC has played a pivotal role in attracting millions of domestic & international tourists of Odisha by building an overwhelming support system for tourists at all key destination scattered throughout the State. Tourist revenue is equally important for the state exchequer. Although tourism in the state plays a comparatively small role in Indian Tourism scenario, still huge potential for growth is ingrained in this sector in Odisha. The state has several destinations to attract tourists from the city of temples to sanctuaries and wildlife parks. The Budhist monastic complexes at Ratnagiri, Lalitgiri & Udayagiri along with Chandaka Elephant Reserve, Nandankanan Zoo & the Chilika Lake are some of the major natural tourist attraction points of Odisha. Over the years the number of tourist from within the state, outside the state and abroad has been increasing. Last year the number of tourists from within the state has increased three fold, while it is more than double from rest of India & abroad. The gross inflow of money of Odisha in tourism sector during last year has been assessed at Rs. 11,628.91 crore, a rise of 9.7 percent over its previous year. The Trade, Hotels & Restaurants industry is a subsector of tourism and has been consistently growing in Odisha since 1950-51. Development of the hotel industry is essential for the growth & development of tourism. Over last 10 years, the number of hotels has increased to 87 percent in Odisha. Of late, high priority has been given to the development & promotion of tourism as well as hotel industry sector in the state. In total, 344 tourist spots have been identified for their development and promotion along with 21 tourist units. The most awaited “Shamuka Beach Project” at Puri targeted towards high end tourists, is on progress. The state Government has formulated the most awaited Odisha Tourism Policy in 2013. The Odisha Tourism Policy envisages an aggressive & proactive approach to achieve the growth potential by initiating identified policy measures, strategy, fund support, professional management input & establishing required synergies through effective co-ordination, institutional arrangements, focused attention & improved performance of the sector. The policy stressed more on sustainable tourism & envisages developing Odisha into most preferred tourist destination. The policy announced a good package of fiscal and non-fiscal incentives on infrastructural and social needs. In the name of “Explore Odisha” a tourist magazine covers all the endeavours of the tourism sector. The ample scope of medical tourism has make Odisha a preferred destination.

To promote Odisha as a medical tourism destination, the state needs to add 1100 specially hospital beds by 2025 with an investment of around Rs. 580 crore. Bhubaneswar, the capital city has emerged a health care hub in eastern India with the presence big players like Apollo Hospital, LV Prasad Eye Institute, Care Hospital, Amri Hospital, Narayan Hrudalaya, AIIMS & Kalinga Hospital, Utkal Hospital, Max Fort, Blue Whale etc. Since many other reputed hospitals of India are planning to open their units in Odisha in near future, the prospect of this sector is quite encouraging. Since the medical expenses are far cheaper in eastern region the prospect seems to attract to medical tourists. Even the Ayurvedic segment does not lag behind in this context. Most of the new initiatives have been taken during these years for the growth & development of these sectors. But much needed to be done and in this regard the “Keralite approach” may be followed to attract tourists and incentives have to be provided to the small operators.

HANDICRAFTS: The Traditional

The state in fact is considered as the land of handicrafts which is an indispensable part of our cultural heritage. Odisha has acquired incomparable fame for its cottage and handicrafts products. People of the state have achieved an excellent legacy in preparing these products. As many as 50 different crafts are practiced by about 1.30 lakh artisans, dispersed throughout the state. The handicrafts sector constitutes a significant segment of the decentralized sector of the State’s economy. It provides employment to lakhs of artisans in rural and urban areas especially in the weaker sections of our society with less capital investment. Many artisans of the state have been honoured with National Awards including Padma Awards in different crafts. Having an ancient tradition of making splendid pieces of hand carved artifacts, Odisa artists have long been presenting their awe inspiring master pieces to the world. There are a lot of handicrafts that have been running as the life force in the cultural land of Odisha. Some of them include Patta Chitra, Sand Art, Metal work, Silver Filigree, Stone Carving and making Puppets and Masks etc. Patta Chitras are miniature paintings used as wall hangings with religious themes as their subject matter. Legends from the lives of Lord Krishna are mainly depicted on this specially treated cloth known as Patta. Developed over the years this art form has helped a distinct school of painting to evolve. Having its origin in Sanskrit language, the word Patta Chitra literally means a painted piece of cloth. This ritualistic art observes a fine blend of sophisticated art and folk element in the form of rich colours. The skilled hands of the talented artisans present blood red, red ochre, lamp black, yellow, white and indigo in a unique way as they pretend to be offsetting each other. These pattas are carried back home by pilgrims from Puri as precious mementos. Practised widely in Raghurajpur and Dandshahi villages at the outskrirts of Puri, these pattas have become synonymous to the place.

Puri is also famous for another handicraft. This is known as carving a sand sculpture with just clean and fine grained sand mixed with water. Attractive sculptures are carved out of this sand by Odia artists. Dating back to fourteenth century A.D. the origin of this art is associated to Poet Balaram Das, the author of Dandi Ramayan. Very eye-catching and splendidly beautiful this art form has gained immense popularity with the development of tourism. In Puri & Konark beach it has become a regular features.

The artists of Cuttack also invariably contributed to enrich their tradition in the form of an art known as Gold and Silver Filigree. Owing its popularity to this art form only the silverware or Tarakashi of Odisha (Orissa) is very widely known. Thin wires drawn from beaten silver and foils are fashioned to make unique examples of artistic excellence. Forms of animals and birds, small show pieces, fine pieces of Jewellary and articles of daily use like vermillion receptacles are made by the filigree artists that are popular in the world. Artists of Odisha create miraculous masterpieces of art practicing yet other crafts that are now not popular in India but across the globe as well.

SEA FOOD: The Demanding One

The impact of sea food in the growth and developed of human body’s metabolism is well-known and sea food is the most demanding items in the world right now. India is the second largest producer of sea food in the world with its 8,118 Km long coastline. India is also one of the largest exports of shrimps to the markets of Europe, Japan & US. The exports has also seen an unprecedented growth of over 50% in last year, over the previous year. Odisha with its long coastline of 480 Km. has setup suitable infrastructure facilities to enable seafood processing such as marine fish landing centers, processing plants, marine crafts, ice plants, cold storages and peeling sheds. An exclusive Sea Food Park is under development to boost the opportunities in the sector. The Greenfield cluster at Deras houses creates a common infrastructure for collective processing of seafood products. It houses exclusive common facilities for sea food processing like cold storage, pro-processing centers, block ice factory, skill development center, polythene unit, R & D center, etc. It is only such facility on the east coast India. With all the required infrastructure and utilities available, the part will provide the necessary base to setup a competitive seafood unit. Falcon Marine is the leading sea food exporter of the State. The Industrial Policy 2015 has identified seafood processing a thrust sector and has made special incentives for the development of the sector. Other than IPR, the Odisha Food Processing Policy also provides for various incentive schemes for investors.


Odisha has a long history of textile industry. The handlooms of Odisha have gained worldwide acclaim and reputation for design artistic, craftsmanship and quality. Various designs have existed in Odisha such as Sambalpuri, Bomkei, Pashapalli, Bichitrapuri, Sonepuri, Khandua, Saktapada, Tarabali etc. Odisha is also famous for its Ikat type of weaving. India is among the ten largest exporters of apparels in the world. India also ranks second in cotton and silk production while leading the world in Jute production. India is one of the cheapest countries in terms of cost competitiveness of the materials. Handloom occupies an important place in preserving the state’s heritage & culture. Handloom sector, next to the agriculture provides massive employment to the rural artisans. Handloom occupies a significant place in preserving the state’s heritage and culture. The handloom products of Odisha have received national and international recognition for highly artistic designs, craftsmanship and durability of their products.

The state Government has laid emphasis on development of the handloom sector and improvement the socio-economic conditions of wavers. Some major schemes which have been implemented for improvement of this sector are promotion of Handloom Industries, Integrated Handloom Development Scheme, Cluster Development Programme, Group approach, Marketing & Export Promotion Scheme. The “Indian Institute of Handloom Technology” has been setup and functioning at Baragarh. A special project “Design Reference for collection of Odisha Handloom” is under implementation with involvement to establish a sustainable market linkage with buyers of inside & outside the country. As regards to tussar the state is known for its exquisite silk and tussar fabrics.

BIOTECHNOLOGY: The Up-Coming Trend

Biotech is the most emerging branch of modern science with huge growth potential. The Indian Biotech industry is seem to have high potential and is expected to grow at a rate of 28% driven by a range of factors such as growing demand, intensive R & D activities and strong Government support. Odisha is being increasingly seen as a favourable investment destination as has been highlighted by RBI and World Bank reports. The state abounds in biodiversity rich areas such as Chilika lake, Bhitarkanika, Similipal hills and many more. Odisha has a robust research and education infrastructure in the biotechnology sector such as the institute of Life Sciences, Bhubaneswar, Regional Medical Research Centre, Regional Plant Resource Centre, National Institute of Science Education and Research. The state is developing a state-of-the-art Biotech Pharma-II over an area of 65 acres in Andharua, Bhubaneswar in PPP mode with an investment of USD 20 million. This park will house a Biotechnology Incubation Centre spread over an area of 30,000 Sqft.

The KIIT-TBI Bio-incubator is an initiative to foster techno-entrepreneurship in the field of biotechnology is a first of its kind in Odisha and one amongst 12 bio-incubators supported by Government of India. It provides holistic ecosystem for nurturing ideas into commercially feasible ventures in various area of the life sciences. Other development in this sector include development of two more biotech parks, one at Khordha district and another Marine Biotechnology park at Ganjam district. In addition to this, a sub-scheme “Germplasm and DNA bank” has been prepared for development of Germplasm and DNA Gene bank in the state. The industrial policy resolution 2015 accords priority sector status to the biotechnology sector and proves several unique incentives to the investing units.

IT SECTOR: The Challenging One

India is one of the major contributors to the international information technology (IT) services market. Relatively being a new concept IT/ITES and ESDM sector is a industry which changes the fact of knowledge economy. With the growing need the IT and hardware solutions across the globe, this sector has seen phenomenal growth in the recent past. The IT industry is expected to grow by 15% in the future and India will be a major software exporter. Since its inception in 2004, the Indian Electronic & Semiconductor Association (IESA) has played an important role in facilitating the growth of electronics and semiconductor ecosystem in the country. IESA has prepared the strategic road map for development of ESDM industry in the state of Odisha in collaboration with Ernst and young (India) and with the active participation and support of Department of Information Technology, Govt. of Odisha & other agencies. The state has created state-of-the-art infrastructure facilities equipped with ready to use facilities and abundant power supply to ensure smooth operation of IT sector. Large IT infrastructure initiatives such as Info-Park, Info-Valley, Infocity and IT investment regions are under development giving impetus to the IT-ITES sector. Odisha has attracted some of the largest IT companies in India. Bhubaneswar is the base of five largest IT companies in India i.e. TCS, Infosys, Wipro, Tech Mahindra & Mind Tree. Recognizing the strong footprint of the IT sectors the state has identified ESDM as a priority sector. The presence of IT ecosystem occupied with an extensive electronic manufacturing cluster shall establish Odisha as a major destination for ESDM investments. The state has an exclusive ICT policy providing incentives and creating a sound ecosystem to the start-up movement. The IPR 2015 identifies IT/ITES and ESDM as a focus sector. Recognizing the importance of ESDM the government has announced a special incentive package scheme for the sector comprising of subsidy on fixed capital investment for plant & machinery, exemption from Entry Tax on acquisition of machinery and equipment, Training subsidy etc. ICT Policy 2014, launched by Government of Odisha in January 2014, envisages developing IT/ITES/ESDM industries in the state for inclusive growth and creating of employment in Odisha and leverage IT/ITES in governance to transform the state to a knowledge driven welfare society for improving the quality of life of citizens. The basic objectives and deliverables of the ICT policy are to promote investment destinations, employability, youth empowerment, accessibility and e-governance in IT/ITES industries & education in the state. The policy aims to create world class ICT infrastructure and integrate all ICT operators. It also aims to create “Brand Odisha” for IT/ITES/ESDM industries across the globe. Odisha aspires to achieve several milestones by 2020 with effective implementation of ICT policy 2014.

Gems & Jewellary

The topological figure of Odisha has made it a favoured destination of Gemstone after Jaypur, Rajasthan. The state is a treasure trove of a large variety of gemstones including emerald, moonstone, cat’s eye, topaz, zircon, sapphire, ruby, aquamarine etc. But there commercial exploration is still in nascent stage. The state has so far developed 29 gemstone belts from which only 18 belts are operational which spread across several districts. Although the state Government has formulated a Gem Stone Policy in 1998 but it is unable to cater the basic need of setting up of lapidary units for cutting, polishing of gemstones & exploration and leasing of gemstone belts in Odisha. The state Government has established a Gems & Jewellary Park at Ramdaspur in Cuttack district. The project envisages a total investment of Rs. 685 crore in three phases. The first phase investment will be around      Rs. 209 crore. The expenditure on infrastructure development has been estimated to Rs 129.5 crore including common facility centre. The project will require 300 MW power, 100 acre of land and 300 cubic meter of water per day. The proposed components in the park includes precious & semi-precious diamond cutting, diamond polishing, designing of Gold, Silver, Platinum, diamond jewellery, manufacturing of jewellery, fashion jewellery and life style products, development of retail centers & export houses. This project envisages employment potential for around 16000 people. However, in first phase around 4000 persons will be engaged. The park will provide added thrust to export-oriented gems & jewellery sector in eastern India. This is the most ambitions project of the state Government.


Odisha has always endeavoured to provide a hassle-free business environment, a number of reforms have been carried out by various Departments of the state Government in the recent past. Additionally, a number of technological interventions has also been carried out by the state Government such as the integration of business related services with the e-Biz portal. Odisha is the first state in India to launch a synchronized Central Inspection Framework for all industrial establishments successfully. To resolve any investor queries post allotment of land by IDCO, an online Automated Post Allotment Application (APAA) has been launched. The Industries Department, Government of Odisha has developed GOI PLUS (Govt. of Odisha Industrial portal for Land use and services) & GO-SWIFT system to display real time information with regards to industrial land and other activities in the state. The system provides detailed information pertaining to industrial land with regards to availability of plots and location specific attributer in terms of connectivity, rail and road linkages and other utilities. The system also provides information about the existing industries and educational infrastructure available in the vicinity of the land. The state of Odisha is committed to simplify the processes and expedite project approvals.  Odisha is backed by the stable government, Proactive leadership and host of team activities to make a conductive business climate. Odisha has embarked on a mission to leverage technology to complement the governance framework. The approvals and clearance for the establishment and operations of the industries shall be through an on on-line portal with minimum human interface. The state is a pioneer in implementing the “Ease of Doing Business” framework through a robust single window clearance mechanism. In fact, Odisha is one of the first states in India to constitute a Single Window Clearance System (SWCS) through legislation. This system enables the investor to approach a single designated authority and seek all clearances and approvals to setup and operationalize an industry. Odisha introduced Single Window Clearance Mechanism in pursuance of the Orissa Industries (Facilitation) Act. 2004 for providing time bound clearance and approvals. An online Combined Application Form (CAF) has been created which all departments/authorities are mandated to accept for various clearance and approvals. The state has put in place an effective institutional mechanism for industrial promotion and investment facilitation at various levels. A three-tier single window clearance mechanism to facilitate speedy implementation of industrial projects is in place. At the helm, the High Level Clearance Authority (HLCA) chaired by the Chief Minister and State Level Single Window Clearance Authority (SLSWCA) chaired by the Chief Secretary provides the overall director and guidance. Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL) acts as the state level Nodal Agency (SLNA) and Technical Secretariat for SLSWCA is active in all the districts. The District Industries Centers (DICS) are effectively taking on the functions of District Level Nodal Agency (DLNA).

The Single Window Clearance System in the state categorizes the proposed projects into three gourps based on the total investment proposed. An investor with a proposed investment of less than Rs. 50 crore (US $ 8million) approaches the respective DIC, which acts as the nodal agency for all further approval and clearance process. The project is considered for clearance by the District Level Single Window Clearance Authority (DLSWA). For projects with ivestment greater than Rs. 50 crore (approx. US $ 8 million), the nodal agency for single window clearance process is IPICOL. All the proposals with proposed investment amount of greater than 50 crore (approx. US $ 8 Million) are evaluated and assessed by the state level single window clearance agency (SLSWCA). However, for projects with proposed investment of greater than Rs. 1000 crore (appox. US $ 160 Million), a special High Level Clearance Agency (HLCA), headed by the Chief Minister, has been constituted for the clearance. One of the key reforms undertaken by the state Government is to improve the investment climate by formulating the investment facilitation cell both in state level & District level. Inspections ensure that the enterprise are following the requisite legal & regulatory framework and minimizing risk for the employees. Odisha has undertaken several inspection related reforms, primary one being the setting up of a Central Inspection Framework. The Central Inspection Framework was created to address the common complains about ambiguity, duplication and overlapping mandate between inspection authorities and perceived lack of co-operation and co-ordination. The central inspection framework created by the Government eliminates the process of multiple visits to the same enterprises and synchronizes various inspections. The framework aims to achieve the objective of simplifying business regulations and bring in transparency and accountability in inspections. The CIGG shall also be responsible for monitoring the performance of field offices and collecting regular reports at suitable intervals and then aggregating these reports to determine benchmark achievement against plans. E-Biz online portal has been created as a one-stop –shop for convenient and efficient online G2B services for the business community. It has been envisioned as a means to reduce the complexity in obtaining information and services related to starting business in India and dealing with licenses and permits across the business lifecycle. Government of Odisha has integrated 15 services from the state and made it available on the e-Biz online portal to enable hassle-free processes for the investors. 9 more services will be integrated soon and all registration, application, approval and renewal related services will be available on the portal for easy access by the investors. Automated Post Allotment Application (APAA) for smooth management of existing MSME business units is associated with IDCO. This portal has been developed to facilitate online registrations, applications for any post allotment matters, online payments, application tracking and processing activities. The portal has been envisioned to reduce the steps involved in the application process. It also enables the units to download the sanctioned letters, removing all physical interfaces between them and IDCO, thus reducing the burden on both.

From an “Aspiring leader”, Odisha is now recognized as a “Leader”. The implementation of business reforms along with Central Inspection Frame Work clubbed with e-Biz on line platform has made the state’s journey to destination. The Goiplus, a GIS based land Bank system for all industrial land in Odisha has also been appreciated in India as it provides all required details related to existing industries in the state such as raw materials used & finished products produced. Other reforms include exemption of green category industries from Consent Management, self-certification under various labour and environment laws, issues of certifications and licenses for longer duration with provisions for auto renewal and reduced frequency of Departmental Inspections based on third party empanel audit reports helped Odisha to grab accolades.


In modern day Business means professionalism which can be generated from a conductive climate mixed up with creativity and innovation. The people of Odisha have a list of priorities to be addressed by the new state Government to witness holistic development with the high hopes that the state will progress exponentially, particularly in industrial sector we are marching ahead in break-neck speed. The much talked about special status for Odisha can catapult holistic development for the state. But some of the ground realities are quite harsh in nature. The ease of doing business has not been happening for people who are actually doing business. Another matter of concern is that young educated postgrads and grads more than half of the entire student population is still leaving Odisha today, looking for better opportunities. The kind of migration cannot build any state and this migration of educated unemployment has to be eradicated. The challenge for the state is to derive a demographic dividend from the large population of youth and this can be achieved by their engagement in development and productive activities, which is only possible through rapid industrialisation with sustainable environment friendly ambience. Odisha is a land of opportunities and possibilities. But its road to greatness is neither assured nor earmarked. What we become will depend on what we do. We have too many expectations but least commitments. Lack of ability to deliver the reform process as well as the inability to form good clusters and contract enforcement exposes our short comings. Odisha has a stable Government and tries to adapt various innovative approaches in the past. It is also first of its kind in many features. So it is the most opportune moment for all of us to develop an eco-friendly business environment along with the development of ancillary and downstream industries for an inclusive growth of the state which can enrich the quality of life for the posterity.



About Dr. Sukant Mishra

Management Consultant

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