Upload
oswald-wilson
View
226
Download
1
Tags:
Embed Size (px)
Citation preview
Emerging East: Orissa’s Turn Around
MP Mr. Baijayant Panda
and
Professor Chitta Baral
Arizona State University
ORISSA
Structure of PresentationStructure of Presentation
• Orissa’s vision
• Competitive advantages
• Orissa – the State on path of progress
• Human Resources Development
• Infrastructure
• Opportunity Orissa
State at a GlanceState at a Glance
• Capital – Bhubaneswar
• Area – 1,55,707 square kilometers – Same as NY + CT
• Population 2001 – 36,804,660 – Same as the population of CA in 2006
• Major industries – Steel, Aluminum, Power, Cement, Mineral-based, Paper, Higher Education
• Connectivity– Air: Bhubaneswar
– Roads: A leg of the Golden Quadrilateral passes through it
– Rail: Howrah –Chennai and Howrah – Mumbai
– Major Port: Paradeep
Vision of Orissa
““To usher in balanced socio-economic To usher in balanced socio-economic growth of Orissa that hinges on growth of Orissa that hinges on sustainable development with strong sustainable development with strong fundamentals of industrial growth, right fundamentals of industrial growth, right harnessing of natural resources and harnessing of natural resources and actualization of employment potential.”actualization of employment potential.”
Shri Naveen PatnaikShri Naveen Patnaik HonourableHonourable Chief MinisterChief Minister OrissaOrissa
Did you know this about Orissa?
Did you know this about Orissa?
The making of a knowledge hub in Bhubaneswar• Institutes aspiring to be an MIT (IIT Bhubaneswar), a Cal Tech
(NISER Bhubaneswar), a Berkeley (NU Bhubaneswar) and a Stanford (Vedanta University Puri) are currently being built in the Bhubaneswar-Puri area of Orissa.
• Part of the Government of India’s 11th plan initiative of 8 new IITs, Six science institutes and 14 National Universities– No other metropolitan area in India is currently scheduled to
have more than two; Bhubaneswar will have all three• NISER Bhubaneswar: 2nd batch started this year• IIT Bhubaneswar: 1st batch started this year
– Vedanta University in Puri – a $3 billion university with a $1 billion initial pledge from Mr. Anil Agarwal
• 10 existing universities, 15 more being made; 39 existing engineering colleges, 12 more in pipeline; 15+ existing colleges (some offering graduate degrees)
Did you know this about Orissa?
The making of a transportation “channel”! • Ports (existing and in pipeline)
– Paradeep
– Dhamara
– Gopalpur
– Kirtania
– Jatadhari (for POSCO)
– Astaranga, Puri
– Bahuda Muhana, Ganjam
– Baliharchandi, Puri
– Barunei, Kendrapada
– Chudamani, Bhadrakh
– Inchudi, Balasore
– Palur, Ganjam
• National waterway 5
Emerging PortsEmerging Ports
Dhamra Gopalpur
Developers Tata Steel and Larsen & Toubro
Orissa Stevedores and Noble Shipping (Hong Kong)
Capacity 80 mtpa (13 mtpa by 2008)
30 mtpa (10 mtpa by 2009)
Berths 13 6
Channel 18 metres 13.5 metres
Vessels Cape size Panamax
COAL
Mineral%
Reserve
Iron Ore 34%
Bauxite 63%
Nickel 95%
Chromite 98%
Coal 24%
Mineral sand
32%
Graphite 77%
Power TariffPower TariffState Industrial Power Tariff (Rs./
KWH)
Orissa 2.90
West Bengal 3.50
Jharkhand 3.20
Andhra Pradesh 3.80
Kerala 3.50
Gujarat 4.00
Maharashtra 5.00
Haryana 4.00
• Orissa is a power surplus State
• Orissa has successfully carried out power sector reforms - Distribution privatised
Density of RoadsDensity of Roads
• Road length per 1,000 square kilometre of area
1991-92 2002
Orissa 1,260 1,522
Andhra Pradesh 553 713
Chhattisgarh 321 262
Jharkhand 492 144
West Bengal 700 1,037
India 615 776
• Source: Planning Commission, Statistical Abstract of India
Number of Strikes & LockoutsNumber of Strikes & Lockouts• Number of strikes & lockouts (2002)
Strikes Lockouts Number of mandays lost due to
industrial disputes 2001
Orissa 7 - 32,676
Andhra Pradesh 30 30 10,48,457
Jharkhand 4 - -
West Bengal 21 172 1,48,16,437
All India State Average
8 8 10,74,931
• Source: Indian Labour Year Book, Labour Bureau, Ministry of Labour, GoI, 2002
• Industrial Disputes in India, 2001
Competitive AdvantagesCompetitive Advantages
In a globalised scenario, Orissa has drawn attention of investors with strengths:
Natural• Rich mineral resources (*)• Coastline – gateway to SE Asian & Far Eastern markets• Adequate fresh water available for industrial use
– About 10% of India’s utilizable water (surface & ground): 108.147 Billion Cubic Meters.
• Discovery of natural gas off the coast
Institutional• Positive investment climate & single window industrial
facilitation by Team Orissa (*)• Proactive policy framework for developing key
economic sectors and for infrastructure buildup
Competitive AdvantagesCompetitive Advantages
Developmental• Land contiguous to ports available for industries• Surplus quality power at most competitive rate (*)• Part of the mainline national rail and road grid
Economic• Low cost labour and availability of skilled workforce• Predominance of organised industrial activity (*)
Infrastructural • Major port at Paradeep moving 50 mtpa• 90 industrial parks / growth centres (9000 hectares)• Seamless connectivity by rail & road• Highest density of roads in eastern India (*)
Competitive AdvantagesCompetitive Advantages
Investor Investor friendly policiesfriendly policies
Investor Investor friendly policiesfriendly policies
Port facilityPort facilityPort facilityPort facility
Mineral Mineral resources resources
in proximityin proximity
Mineral Mineral resources resources
in proximityin proximity
Plentiful Plentiful waterwater
Plentiful Plentiful waterwater
Land bankLand bankLand bankLand bank
Rail connectivityRail connectivityRail connectivityRail connectivity
CompetitiveCompetitivepower tariff power tariff CompetitiveCompetitivepower tariff power tariff
Skilled Skilled manpower manpower
Skilled Skilled manpower manpower
Government Government facilitationfacilitation
Government Government facilitationfacilitation
Road networkRoad networkRoad networkRoad network
Lowest cost producer Lowest cost producer of Steel / Aluminaof Steel / Alumina
Lowest cost producer Lowest cost producer of Steel / Aluminaof Steel / Alumina
Orissa - The state on the move…Developments during the last three years
Metal Sector
• Preferred destination for Foreign & Domestic Investors
• 45 projects for over 70 mtpa of Steel (28 plants partly commissioned). More than US$45 Bn investment
• 4 new aluminum complexes with more than 4 mtpa alumina and 1 mtpa aluminum smelter capacity under implementation (US$ 10 Bn)
• Rare earth projects through FDI mode (US$ 0.50 Bn)
• Major investors in the metal sector - POSCO, Arcelor-Mittal, Tata Steel, Bhusan, Jindal, Essar, Aarti, Hindalco, Vedanta, L&T – Dubai Aluminium, etc
Rourkela Steel Plant
Workshop
Orissa - The state on the move…Developments during the last three years
Chemical & Petrochemical
• 15 mtpa mega petrochemical complex by IOC (US$ 6Bn)
• Deepak Fertilizers implementing 2 chemical projects at Paradeep
• Mega Petroleum, Chemicals & Petrochemicals Investment Region (PCPIR) under development in Paradeep area (284 Square kilometres)
Cement• 5 mtpa capacity addition utilising
flyash & blast furnace slag ($0.50 Bn)
Chemicals
Petrochemicals
Orissa - The state on the move…Developments during the last three years
Energy and Power
• 13 Thermal Power Projects under implementation with capacity of 13,500 MW (US$ 11 Bn)
• Major names include Tata Power, Reliance Energy, Sterlite Energy, Mahanadi Aban, Monnet Ispat, Essar Power, Lanco Group, NavBharat Power, CESC and GMR Energy
• Project by Reliance Industries Limited for hydrocarbon based power generation & gas grid (US$ 1.5Bn)
• Various Mini-Hydel projects with a combined capacity of 200 MW
• Non-conventional projects with 100 MW
Energy & Power
Power Sector
Orissa - The state on the move…Developments during the last three years
Special Projects• Mega shipbuilding & repair yard at Dhamra ($
0.6 Bn)
• Auto components park by RSB
Tourism• 5.3 million tourists visited Orissa in 2006
(growth rate >13%)
• Foreign tourists 40,000 (growth rate 17%)
• Hospitality sector investments by some of the most respected hotel chains
• Special Tourism Area (STA) near Puri spread over 1000 acres already under implementation
• Infrastructure upgradation projects in the Buddhist and beach-based circuits
Exotic Beach at Puri
NALCO
Orissa - The state on the move…Developments during the last three years
Mega Infrastructure Projects
• Development of industrial, economic & social infrastructure in steel & mining corridors
• Major expansion of Paradeep Port underway
• 12 SEZs including 4 IT SEZs approved by GoI
• 4 new ports (US$ 2Bn) at Dhamra, Gopalpur, Jatadhari Muhana and Kirtania in progress and more being explored on 480 km long coast line of the state
• Bio-pharma Park in Bhubaneswar through PPP
• Integrated Textiles Parks at Choudwar
• Auto complex at Choudwar (*)
• Extensive rural electrification programmes
• Bhubaneswar Airport modernization
• International Convention Centre at Bhubaneswar
Infocity, Bhubaneswar
Paradeep Port
Orissa - The state on the move…Developments during the last three years
Information Technology Sector
• Software exports in excess of US$ 175 mn during 2006 - 07
• Orissa emerging as an IT / ITES powerhouse with presence of Infosys, Satyam, Wipro, TCS, Mindtree, ICICI Bank, Genpact (200,000 software professionals by 2015)
• SMEs: More than 300 units and 12000 software professionals engaged in the state
• Group of investors from Silicon Valley setting up 5000 seater IT/ITES facility
• Target of exporting software to the tune of US $ 1000 mn by 2011-12
• Integrated IT City over 500 acres underway
Satyam Campus, Bhubaneswar
Infosys Campus, Bhubaneswar
Recent FDI projects in OrissaRecent FDI projects in Orissa
• Largest FDI of US$12 Bn by Largest FDI of US$12 Bn by Korean Steel Giant POSCO in steel Korean Steel Giant POSCO in steel sectorsector
• Other big FDI projects:Other big FDI projects:
SteelSteel Arcelor-MittalArcelor-Mittal
Alumina / Alumina / AluminiumAluminium
Dubai Aluminium, Alcan, Dubai Aluminium, Alcan, VedantaVedanta
Titanium Titanium ProductsProducts
JSC Technochim Holding JSC Technochim Holding (Russia)(Russia)
LimeLime Lhoist (Belgium)Lhoist (Belgium)
PortsPorts Noble Shipping (Hong Kong)Noble Shipping (Hong Kong)
Industrial Industrial GasGas
Air Liquide (France)Air Liquide (France)
Biju Patnaik International Airport
Nine hole Golf Course at Infocity
InfrastructureInfrastructureROADS & RAILWAYSROADS & RAILWAYS
• Monitoring by Prime Minister’s office of priority infrastructure projects catering to the steel and mines corridor
• Over $ 5 Bn investment in road sector in next 5 years
• About $ 1.5 Bn investment in railways in next 5 years
• Massive urban infrastructure upgradation through national level programmes
• Investment through public funding and private participation
Road in PPP mode
XIM, Bhubaneswar
Cement Consumption per capita in Kg 2005
Orissa 101.26
Andhra 97.67
Chhattisgarh 92.16
Jharkhand 80.05
West Bengal 73.73• Source: Indiastat
SUNDARGARH
B A R A G A R H
B A L A N G I R
NUAPARHA
NABARANGAPUR
KALAHANDI
DHENKANAL
SAMBALPUR
JHARSUGUDA
MALKANGIRI
KORAPUT
RAYAGARHAGAJAPATI
GANJAM
KANDHAMAL
CUTTACK
KHURDA
S O N E P U R
B O U D H
NAYAGARH
A N U G U L
DEOGARH
MAYURBHANJ
BALESHWAR
P U R I
JAGATSINGHPUR
KENDRAPARA
BHADRAK
Rourkela
BHUBANESWAR
RAJ AMUNDA
KENDUJHAR
Kanaktora
Chitrakonda
Balimela
Malkangiri
SunabedaDamanjori
Koraput
PANIKOI LI
Udala
Karanjia
Nilagiri
Basudebpur
Soro
Anandapur
Athargarh
Chaudwar
Parsala
Balugan
KhallikotAsika
Gunupur
Junagarh
Nabarangapur
Bhawanipatna
Sambalpur
J HARSUGUDA
Sundargarh
Deogarh
Boudh
Balangir
Phulabani
Chhatrapur
BrahmapurDigapahandi
Nayagarh
Puri
Jagatsinghpur
Kendraparha
Jajpur
Cuttack
Bhadrak
Baleshwar
Baripada
KEONJ HAR
Sonepur
Bhanjanagar
Dhenkanal
Rayagarha
Kantabanji
ANUGUL
Dashapalla
Khandaparha
Kantilo
Rairangapur
Jaypore
Umarkot
Nuaparha
Padmapur
Barpali
Burla
Binika
Redhakhol
Sarapali
Jamankira
Bhojpur
Biramitrapur
Panposh
Gorakhapur
Kashipur Gurbari
J K Pur
Daringbarhi
Nisha
Chhendipada
Ambani
Ganjam
MANGULI
Hindola
Chikiti
Jaleswar
Patamundai
Paradwip Port
BhubanKamakhyanagar
Pala Laharha
BARAKOT
Banei
Dhenkikot
Barbil
Mankamanacha
Nuapatna
Banki
Chandragiri
Lanjigarh
Kesinga
Titlagarh
Patnagarh
BrajarajnagarKUCHINDA
Hirakud
Banapur
Khurda
Paralakhemundi
JAJPUR
Gopalapur
LEGEND
DISTRICT BOUNDARY...............
VI S A K H A P A T N A M
F J N B NJF
G K O C G K O
H HL L PP D
E I E IM A
F J N B
G K O
64 73
65 74
NF
NE
44 45
NF
NEBAY OF BENGAL
INDEX TO 1:2,50,000 SHEETS
44 45
Talcher
G.Udaygiri
STATE BOUNDARY................
NATIONAL HIGHWAY........
Motu
ChordaDuburi 12
Dangadi
Brahmani Rd.
3
4
11
Bramanipal
5
Bamberi
7Bamshapani
Bhadrasahi
6
KoiraTensa 9
Kalunga
12
8
10
13
SH. .......
MDR ..............EXPRESS WAY .........ODR ..............
INDUSTRIAL HUB .........
MINNING HUB .........
NH-6
NH
-201
NH-200
EXISTING NH...............
RAI PUR
GUM
LA
Motu
Daitari
Chandikhol
Bargarh
Zone I
Zone III
Zone VI GOPALPUR PORT
PARADEEP PORT
DHAMRA PORT
Zone II
Zone IV
Zone V
Circle I Steel, Power, IT, Tourism & PortsZone III Mining, Power, SteelZone VI Alumina
INDUSTRIAL ZONES AND BIG PORTSINDUSTRIAL ZONES AND BIG PORTS
KIRTANIA PORT
State Capital-Bhubaneswar
Quality of Life
• Bhubaneswar is the 2nd planned city in the country and is the safest and most economical Capital in the country making it very popular with the young masses in Eastern India (*)
• Well connected to major cities in the country
• Among 5 fastest growing cities in real estate
• Pollution free environment with very pleasant and comfortable living conditions
• Excellent residential, recreation and entertainment facilities
• Top quality schools & colleges
• Large multidisciplinary hospitals by AIIMS & Apollo; Specialty Centres for cancer, heart, eye, diabetic research, spinal injury and trauma care
• Fascinating weekend getaways, pristine beaches, exotic flora & fauna and wildlife sanctuaries, at proximity
Shopping Malls
Hotel Swosti Plaza, Bhubaneswar
Well planned Residential Complexs
Bhubaneswar-Puri area as a knowledge hub: soon to have 25 universities
Existing Universities
• IIT Bhubaneswar
• NISER Bhubaneswar
• Utkal University
• Orissa U of Agriculture and Tech.
• Ravenshaw University
• IIIT Bhubaneswar
• Utkal Univ. of Culture
• Sri Jagannath University
• KIIT deemed University
• SOA deemed University
• 39 additional four year engineering colleges, some with graduate programs
• 30+ Colleges offering Bachelors in non engineering subjects (some offering graduate programs)
Upcoming universities
• Vedanta University
• National University (WCCU)
• AIIMS Bhubaneswar
• National Law University
• Sri Sri University
• ICFAI University
• Jagadguru Kripalu University
• Orissa open university
• National Institute of Design (?)
• 6 deemed university applications in pipeline
• 12 four year engineering colleges
Vedanta University Master Plan (Ayers St. Gross designed): For 100,000 students and 500,000 city residents Plan
Academic
Housing
Administration
Library
Student Union
Performing Arts
Recreation
Vedanta University Plan Master Plan\
Building Uses
ResearchResearch
Liberal ArtsLiberal Arts
ClassicsClassics
JournalismJournalism
ArchitectureArchitecture
FacilitiesFacilities
HumanitiesHumanities
EducationEducation
Arts + MusicArts + Music
Professional StudiesProfessional Studies
Performing ArtsPerforming Arts
International StudiesInternational Studies
RecreationRecreation
LibraryLibrary
Health ScienceHealth Science
EngineeringEngineering
BioscienceBioscience
SciencesSciences
MedicineMedicine
HospitalHospital
BusinessBusiness
DentistryDentistry
NursingNursing
LawLaw
Graduate StudiesGraduate Studies
University Master Plan Academic Precincts
Vedanta University Phase 1
Vedanta University Hospital Medical School
• Perkins and Will http://www.perkinswill.com/ has been shortlisted to design the complex (34 acres)
• Jensen partners (http://www.jensenpartners.com/) has been shortlisted to equip the medical college and develop the program
• Overall status: About 3500 of the 6000 acres have been acquired
• Work on the building expected to start in the end of October 2008.
Medical Colleges in Bhubaneswar-Puri area
Existing
• SCB Medical College• HiTech Medical College• Kalinga Institute of
Medical Sciences• SUM Hospital and
Medical College
Upcoming
• Medical College of Vedanta University
• AIIMS Bhubaneswar• Capital Medical College• Medical College of Sri Sri
University• Medical College of
National University
Human Resources Development in Human Resources Development in OrissaOrissa
Higher Education• Hub of engineering, management & medical
education in Eastern India
• Tripling of engineering/MCA technical education capacity since 2001
• 30,000 B.Tech / MCA, 3000 Management professionals and 50,000 general graduates pass out every year
• Apeejay implementing integrated Knowledge Park
• Besides IIT, NISER, & World-Class Central University, a central University in Koraput and a IIIT in Berhampur.
Utkal University, Bhubaneswar
RIE, Bhubaneswar
Bhubaneswar and Chandaka
Near Deras Dam in Chandaka
Bhubaneswar, Puri and Konark
Bhubaneswar and Chilika lake
Chilika Lake
Orissa: What the experts say• Mckinsey 2005: “Orissa’s economy is
poised to grow at 7.1% over the next 10-12 years, the highest in Eastern India”
• CMIE 2006 & 2008: “Orissa accounts for 15% of total investment in hand in the country. It tops in terms of Industrial investment ($133 Bn) and project implementation ahead of Maharashtra & Gujarat”
• World Bank 2008: “Orissa is a State on the move. GSDP has grown at the rate of 8.5% on average during 2002-07”
• Alastair King, CEO of UK-based India investor Eredene Capital (Quoted in a Reuter article): "Relative to building the 10th new retail mall in a suburb of Mumbai ... I'd much rather build the first distribution park in the steel industry of Orissa, where you've got great demand."
Why Orissa?Positive investment climate
• Vibrant industry sector
• A proactive and positive Government with a modern outlook
• Stability of political regime and policy framework for developing key economic sectors and for infrastructure buildup (Legislative framework to reduce transaction time & cost for investors)
• Strong institutional support and Single Window facilitation by Team Orissa
• Harmonious industrial climate and relations (*)
• Team Orissa
– Chief Minister is the captain of Team– Institutional framework of the Government
that is engaged in industrial facilitation and investment promotion
Mukteswar
Secretariat Building, Bhubaneswar
Why Orissa?Government promoting inclusive growth for sustainable & balanced development:
• People oriented R & R policy
• Strong institutional mechanism to promote periphery development with involvement of all stakeholders
• Stress on environment management
• Focus on SME sectors
• Strategy to leverage natural resources for all-round prosperity and enabling rural livelihoods
• Rapid infrastructure development through PPP framework and policy
KIIT University, Bhubaneswar
Well planned Roads
Opportunity OrissaOpportunity Orissa
• Education and Knowledge Sector
• Automobile sector
• Ancillary / downstream / construction phase projects of mining / steel / aluminium / petrochemicals (*)
• Equipment and technology suppliers & vendors
• Heavy engineering and fabrication
• Plant and machineries for ports (*), roads, industrial water supply, mining equipments, etc
• Power projects – coal washing, modernisation of existing units, renewable energy
• Marine fisheries & infrastructure
• Services sector
• Tourism
• Information Technology / ITES
Opportunity OrissaOpportunity Orissa
• Development of industrial parks and SEZs (*)
• Critical economic & social infrastructures in industrial and mining corridors – roads, water supply, housing, hospitals, etc
• Construction domain including industrial construction, townships, roads, ports, real estate and other infrastructure
• Technology applications in utilisation of flyash and blast furnace slag
• Clean development mechanisms projects – green manufacturing processes and technology
Invest in Orissa and be a preferred partner
• CAPEX database of The Centre for Monitoring Indian Economy (provider of project-wise information of new and ongoing capital expenditure projects in the country)– Ranks Orissa first in terms of value of total envisaged projects
for the period ending December 2007.• Estimated investment of Rs 599,181 crores (= $150 billion)
– Ranks Orissa first in terms of value of total projects under implementation in the country at Rs 308,589 crore.
– There are 483 projects being carried out in Orissa: 52% are under implementation stage while 48% are in the announced stage.
The future is NOW…and HERE!!
Websites:
www.orissagov.nic.in
www.teamorissa.org
www.idcoindia.com
www.orissagrowth.org
Thank You
Questions?
Recent disturbances
KBK and Kandhamala: Another frontier of India
Land Acquisition• We hear of the two problem ones (POSCO, Tata Steel)• Huge list of projects that have successfully acquired land
and many already in operation• But there is a problem, not just in Orissa, but in India
– They are being addressed at the national as well as state level– E.g. R & R policy are being updated so that they give people a
stake in the success of the project
• Some suggestions– Connect with locals; Make them feel that the company cares
about them– Don’t leave everything to the government– Hire experienced local managers– Keep a low profile
MOU versus implementations
• From http://go.worldbank.org/F6WBERON80• Has the signing of MOUs been interpreted as industrial
growth?– The reported industrial growth in recent years is based on actual and officially
estimated figures, not on MOUs. Assessment of future prospects has been informed by CMIE’s projections using detailed information on the status of each investment project under implementation, and its likely date of completion based on historical experience and informed judgment in exceptional cases.
• By how much has Orissa’s economy grown in recent years?– According to the latest data released by the Directorate of Economics and
Statistics, Government of Orissa, the state GDP grew at 10.5 percent annually on average during the most recent five years, that is 2003/04 to 2007/08.
– During the Tenth Five-Year Plan period, that is 2002/03 to 2006/07, the average growth rate was 8.5 percent.
– Orissa, which grew much slower than the rest of India during the 1990s, has now caught up. 2004 onwards, it has begun to overtake the national average.
More from the world bank report
• How many people have been brought out of poverty in recent years?– Between 1999/00 and 2004/05, based on NSS data estimates using ‘mixed
reference period’, the proportion of people in poverty in rural Orissa declined by 8 percentage points compared to 5 percentage points in rural India as a whole. Despite this progress, however, the level of poverty in Orissa remains significantly higher than the rest of India.
– According to the latest calculation based on official figures released recently by the Planning Commission, the number of poor in Orissa has come down by about 1.5 million between 1999/00 and 2004/05. This figure will feature in the final Bank report.
• What is the state’s current debt burden?– How the debt burden has moved can be appreciated by comparing not rupee
figures but the ratio of the debt burden to annual GDP or annual revenue. As a proportion of revenue, Orissa’s debt has fallen from 343 percent in 2001/02 to 201 percent in 2007/08. As a proportion of GSDP, it has declined from 63 percent to 50 percent. This is a major correction, and reflects responsible fiscal management to lift the state out of a crisis situation.
More from the world bank report
• Has the government achieved a revenue surplus by curtailing capital expenditure and squeezing development expenditure?
– The revenue surplus has been achieved as a result of 3 factors: – improved performance of the state’s own taxes, – enhanced central transfers and external donor support, and – curtailing of expenditure. – The capital budget was constrained during 2002-05, but still outcomes improved
due to emphasis on project completion. As explained in the report, there was undoubtedly a lot of flab in the administrative machinery, and Orissa was more over-staffed than other states. The government undertook major surgery to trim the fat, and in the process some muscle also got cut, which needs to be rebuilt now. The Government of Orissa has been hiring a large number of para-teachers, and the teacher-pupil ratio is 40 on average, ranging from 31 in the best served district to 60 in the worst. This is far better than the situation in Bihar, Jharkhand, Karnataka Madhya Pradesh, Uttar Pradesh and West Bengal.
Orissa Jharkhand Chhattisgarh India
Iron Ore 33.9% * 20% 2336MT 13460MT
Coal 24.4% * 35000 MT 210,000 MT
Bauxite 49.7% * 96 MT 2462 MT
Limestone * 3580 MT 75678 MT
Dolomite 12% 606 MT 4386 MT
Ancillary Business PotentialAncillary Business Potential
Operations &Operations &MaintenanceMaintenanceOperations &Operations &MaintenanceMaintenance
Spares &Spares &ManufacturingManufacturing
Spares &Spares &ManufacturingManufacturing
General General ServicesServicesGeneral General ServicesServices
Core Core Specialized Specialized
ServicesServices
Core Core Specialized Specialized
ServicesServices
DownStreamDownStreamFacilitiesFacilities
DownStreamDownStreamFacilitiesFacilities
Township Township ManagementManagementTownship Township
ManagementManagement
Utilities Utilities Utilities Utilities
Unexplored !!! Unexplored !!! Unexplored !!! Unexplored !!! Support Support
SpecializedSpecializedServicesServices
Support Support SpecializedSpecialized
ServicesServices
Supply Supply Chain &Chain &
LogisticsLogistics
Supply Supply Chain &Chain &
LogisticsLogistics
Mother Steel / AluminiumMother Steel / AluminiumPlantPlant
Mother Steel / AluminiumMother Steel / AluminiumPlantPlant
There is an opportunity to convert substantial parts of Steel / Aluminium/Petrochemical sector expenditure into Ancillary spend
SITE 1 – SEZ (2700 acres)
SITE 2 – for chemical projects (3,000 acres)
Paradeep-Duburi (116 Kms) is envisaged as an industrial corridor to house downstream / ancillary / construction phase projects of steel and petrochemicals
Single Window FrameworkSingle Window Framework
• Orissa Industries Facilitation Act 2004 enacted for the purpose
• Provides for combined application form and time-bound clearances for investment projects
• Enables maintenance of combined registers, records, returns
• Provides for streamlined inspections
• Dedicated institutional Mechanisms for clearances and investor escort services
Industrial Policy 2007Industrial Policy 2007
• Umbrella policy for industrial & infrastructural development
• Generally for a period of 5 years
• Sectoral policies emanate from IPR (Tourism, IT, BT, SEZ, PPP, etc)
• IPR 2007 is uniquely configured and is leveraged upon
- Quality institutional support
- Infrastructure development
- Liberal incentives package
- Human resources augmentation
- Timely & responsive grievance redressal
Share of Registered & Unregistered ManufacturingShare of Registered & Unregistered Manufacturing
• Share of registered & unregistered manufacturing in GSDP 2004-05 (%)
Registered Share Unregistered Share
Orissa 79.74 20.26
Andhra Pradesh 67.74 32.26
Chhattisgarh 72.79 27.21
Jharkhand 91.55 08.45
West Bengal 42.65 57.35
India 65.86 34.14
• Source: CSO, 2006
InflationInflation
• Inflation measured by CPI for urban non-manual employees (%)
2002-03 2003-04 2004-05 2005-06
Orissa 2.63 4.63 3.57 4.48
Andhra Pradesh
4.22 3.39 3.47 5.13
Jharkhand 2.81 5.80 5.33 6.69
West Bengal 2.69 4.40 4.16 4.74
India 3.78 3.74 3.63 4.74
• Source: Labour Bureau
• Note: Financial year averages
Choudwar Auto ComplexChoudwar Auto Complex
• Choudwar is located on NH42 that connects to NH5 (Kolkata – Chennai) with western part of Orissa. It is at a distance of 3 kilometres from River Mahanadi, 10 kilometres from Cuttack city, 6 kilometres from the nearest railway station Nirgundi, 38 kilometres from the airport in Bhubaneswar, 90 kilometres from the existing Paradeep port
• The industrial estate is spread over an area of 412 acres and is well-planned with earmarked plots for allocation to SMEs. The internal infrastructure including roads, power supply and water supply have been developed
• Most of the workforce of existing industries resides in Cuttack city which offers excellent residential facilities, healthcare, educational services and an economic cost of living
PRESENTATION PRESENTATION
ON ON
STEEL SCENARIO OF THE STATE STEEL SCENARIO OF THE STATE
OF OF
ORISSAORISSA
MEMORANDUM OF UNDERSTANDING
1. Total MoU Signed 54
2. MoU cancelled 5
3. MoU under subjudice 1
4. MoU to be revived 1
5. MoU in force 47
6. Proposed Capacity 75.66 MTPA
7. Proposed Captive Power Plant
5,600 MW
INVESTMENT
(Rs. In Crore)
PROPOSED : 1,98,149.40
MADE SO FAR : 21,182.45
PARTIAL PRODUCTION
Started Partial Production - 28
Capacity Achieved so far
(In MTPA)
Sponge : 4.93
Steel : 3.80
MBF : 0.63
Other : 0.15 (F.C.)
PARTIAL PRODUCTIONSL No.
Name of the Company
Capacity Achieved
Sponge
MBF SteelOthe
r
1 Aarti Steels Ltd. 0.20 - 0.18 -
2 Adhunik Metalicks Ltd. 0.18 0.20 0.26 -
3 Scaw Industries Pvt. Ltd. 0.10 -0.05
0-
4 VISA Steel Ltd. - 0.22 - -
5 SMC Power Generation Ltd. 0.10 - 0.10 -
6 Shyam DRI Power Ltd. 0.020 -0.02
0-
7Orissa Sponge Iron & Steel Ltd. 0.25 - 0.10 -
8 SPS Steel & Power Ltd. 0.18 - - -
9 OCL Iron & Steel Ltd. 0.12 -0.08
5-
10 Maheswary Ispat Ltd. 0.13 -0.06
0-
11 Aryan Ispat & Power Ltd. 0.060 - - -
12 Maithan Ispat Ltd. 0.15 - 0.13 -
13 Sree Metaliks Ltd. 0.30 0.03 0.28 -
14 MSP Metalicks (P) Ltd. - 0.18 - -
SL No.
Name of the CompanyCapacity Achieved (In MTPA)
Sponge MBF Steel Other
15 Action Ispat & Power (P) Ltd. 0.11 -0.12
5-
16Patnaik Steels and Alloys (P) Ltd.
0.11 - 0.10 -
17 Rathi Udyog Ltd. 0.15 - - -
18 Viraj Steel & Energy Ltd. 0.11 -0.07
5-
19 Deepak Steel & Power Ltd. 0.14 -0.01
1-
20 Beekay Steel & Power Ltd. 0.11 - - -
21 BRG Iron & Steel Co.(P) Ltd. 0.060 - - -
22 Jindal Stainless Ltd. - - - 0.15
23 Eastern Steels & Power Ltd. 0.11 - 0.10 -
24 Jai Balaji Jyoti Steels Ltd. 0.12 - 0.12 -
25 Bhushan Steels Ltd. 0.50 - 0.50 -
26Surendra Mining Industries (P) Ltd.
0.06 - - -
27 Crackers India (Alloys) Ltd. 0.06 - - -
28 Bhushan Power & Steel Ltd. (MoU to be revived)
1.50 - 1.50 -
PARTIAL PRODUCTION Contd....
CAPTIVE POWER PLANTAchievement
Name of the Company
C.P.P. (In
MW)
Name of the Company
C.P.P. (In
MW)
M/s Aarti Steel Ltd. 40M/s Action Ispat & Power (P) Ltd.
4.5
M/s Adhunik Metalicks Ltd.
30M/s Patnaik Steels and Alloys (P) Ltd.
15
M/s Scaw Industries Pvt. Ltd
8M/s Rathi Udyog
Ltd. 20
M/s SMC Power
Generation Ltd. 8M/s Viraj Steel & Energy Ltd.
8
M/s Shyam DRI Power Ltd.
25M/s Jindal Stainless Ltd.
13
M/s Orissa Sponge Iron & Steel Ltd.
58M/s Eastern Steels
& Power Ltd. 12
M/s OCL Iron & Steel Ltd.
14M/s Bhushan Steels
Ltd.110
M/s Sree Metaliks Ltd.
28M/s Bhushan Power & Steel Ltd. (MoU to be revived)
100
MEGA STEEL PLANT PROJECTS IN ORISSA
Sl.No.
Name of the Company LocationCapacity (In MTPA)
1M/s Sterlite Iron and Steel Company Ltd.
Keonjhar 5.1
2 M/s TATA Steel Ltd. Jajpur 6.00
3 M/s ESSAR Steel Orissa Ltd. Jagatsinghpur 4.00
4 M/s POSCO India (P) Ltd. Jagatsinghpur 12.00
5 M/s Jindal Steel & Power Ltd. Keonjhar and Angul 6.00
6M/s Welspun Power & Steel Ltd.
Cuttack and Jajpur 3.00
7 M/s Uttam Galva Steels Ltd. Keonjhar 3.00
8 M/s SSL Energy Ltd.Site has to be finalised
3.00
9 M/s Arcelor Mittal India Ltd. Keonjhar 12.00
10 M/s Bhushan Steels Limited Dhenkanal 3.00
STATUS OF MEGA STEEL PLANT PROJECTS
Sl.No.
Name of the Company Status
1M/s Sterlite Iron and Steel Company Ltd.
L.A. under progress
2 M/s TATA Steel Ltd. Law and Order
3 M/s ESSAR Steel Orissa Ltd. L.A. under progress
4 M/s POSCO India (P) Ltd. -do-
5 M/s Jindal Steel & Power Ltd. -do-
6 M/s Welspun Power & Steel Ltd. -do-
7 M/s Uttam Galva Steels Ltd. -do-
8 M/s SSL Energy Ltd. -do-
9 M/s Arcelor Mittal India Ltd. -do-
10 M/s Bhushan Steels Limited Partly operational
MEGA STEEL PLANT PROJECTS IN ORISSA
Sl.No.
Name of the Company LocationRequirement of Land (In
Acres)
1M/s Sterlite Iron and Steel Company Ltd.
Keonjhar 3400
2 M/s TATA Steel Ltd. Jajpur 3500
3M/s ESSAR Steel Orissa Ltd.
Jagatsinghpur 2500
4 M/s POSCO India (P) Ltd. Jagatsinghpur 6000
5M/s Jindal Steel & Power Ltd.
Keonjhar and Angul
5750
6M/s Welspun Power & Steel Ltd.
Cuttack and Jajpur 2200
7M/s Uttam Galva Steels Ltd.
Keonjhar 2150
8 M/s SSL Energy Ltd.Site has to be finalised
2000
9M/s Arcelor Mittal India Ltd.
Keonjhar 8000
10M/s Bhushan Steels Limited
Dhenkanal 2000
OTHER STEEL PLANTSSl.No
.Name of the Company Status
1 Maharastra Seamless Ltd. Alternative land is yet to be provided by IDCO
2Monnet Ispat & Energy Ltd.
L.A. under progress
3 Konark Ispat Ltd. -do-
4 Jain Steel & Power Ltd. Partial production will be commenced on June 2008
5 Rungta Mines Ltd. L.A. under progress
6 Brand Alloys Ltd. -do-
7 MGM Steels Ltd. -do-
8Brahmani River Pellets Ltd.
-do-
9Pradhan Steel & Power Pvt. Ltd.
-do-
10 Tecton Ispat Pvt. Ltd. Requested for Alternative site
11 Atha Mines Pvt. Ltd. -do-
12Deo Mines & Mineral (P) Ltd.
(MoU under Subjudice)
Not Progress
EMPLOYMENT GENERATED
Direct 14992State : 10400
Outside State : 4592
Indirect 35745
State : 27838
Outside State : 7909
REVENUE GENERATED
Tax Paid (Rs. In Crore)
State : 452.50
Central : 1028.53
Juggernaut
• A force regarded as unstoppable, that will crush all in its path• Derived from the Sanskrit Jagannātha• One of the most famous of Indian temples is the Jagannath Temple
in Puri, Orissa, which has the Ratha Yatra (chariot procession)• British contrived the word "Juggernaut" to refer to examples of
unstoppable, crushing forces.• The Ratha Yatra now happens on an annual basis in places such as
London, Paris, Toronto and New York.
Orissa Vital Statistics
•Per capita income 2005-06 – Rs. 13,979
•Urban population – 14.97%
•Literacy rate – 63.08%
•Number of districts – 30
•Number of towns – 138
•Number of villages – 51,350