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ORISSA – LAND OF OPPORTUNITY

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Orissa is one of the prosperous states of India owing to its fertile land and rich in mineral resources. It covers land area of 1,55,707 sq km which is bordered on the west by the thick forest hills, on the east it has 480 km coastline of the Bay of Bengal, bordered by Jharkhand on the north, West Bengal on the northeast, Andhra Pradesh on the south and Chhattisgarh on the west. The State is also referred to as “The Soul of India”, as it is considered as a mystical land where the past and the modern today form a harmonious blend. It is often said that the State has everything under the sky, opulent forest and agricultural wealth, mineral reserves and a divine coastline. Six major rivers (the Mahanadi, the Baitarani, the Subarnarekha, the Budhabalanga, the Brahmani and the Rushi Kulya) that flow through this zone down to the Bay of Bengal make the belt most fertile with ample irrigation potential. The state is filled with remarkable monuments of master craftsmen and artists, numerous wildlife sanctuaries and many more eye soothing natural landscapes. Orissa’s Rich Biodiversity Orissa possess a very rich biological diversity, both terrestrial and marine in its forests, agriculture, mangroves, wetlands and marine areas, both in the number of species and their abundance. The Chilika lake - the longest brackish water lake in Asia, harbors more than 900 species of flora and fauna such as algae, protozoa, vascular plants, molluscs, nematodes, fish, prawn and other vertebrates. The sea, the rivers and the lakes have greatly influenced the coastal and other vegetation of the State and have provided a variety of mangroves housing 97 percent of the species in the country. The forest area of 5.72 million hectares constitutes 37 percent of the geographical area of the State, with varied and diverse physiography and climate conditions. These forests are rich sources of medicinal plants. Approximately 130 species of commercially relevant medicinal plant species are found in the State. A diversity of micro-organisms, capable of producing valuable bioactive products such as alphatocoferol, beta-carotene and dyes are found.

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Orissa – Figures at a Glance

Number of District 30 Total Area (in sq km) 155,707

Total Population (in million) Persons 41.95 Males 21.20 Females 20.75

Density of Population (per sq km) 269

Sex Ratio (females per 1,000 males) 978

Literacy Rate (%) Persons 73.45 Males 82.40 Females 64.36

Religion Population (%) Hindu 94.66

Muslims, Christians,

Buddhists, Sikhs and Jains

5.34

Decennial Growth Rate (%) (2001-2011) 13.97

Meteorological Data Climate Tropical Summer March-June Monsoon July-Sept Winter Oct-Feb

Temperature (in Degree Celsius)

Summer 35 - 40 Winter 12 - 14

Source: Census of India 2011

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Orissa’s performance on key socio – economic indicators

Geographical Position: Orissa's geo-eco position is both ideal and idyllic. Rich mineral resources and abundant water supply are a natural advantage to its geographical position. Agriculture is the principal occupation of the majority of the state's population; a growing awareness about new avenues is all set to take the state to new heights in economic development. With 4.74 percent of India's landmass and home to 3.47 percent of the country's population and 51,349 villages. Almost 85 percent of its population live in the rural area and mostly depend on agriculture and allied activities for their livelihood. The State is divided into ten agro climatic zones with varied characteristics.

Demographic Position: The population of Orissa, which was 36.81 million in 2001, has increased to 41.95 million in 2011 exhibiting a decennial growth rate of 13.97 percent as against 16.25 percent in the previous decade and 17.64 percent at all-India level. The density of population that was 236 per sq. km. in 2001 has increased to 269 per sq. km. in 2011 and is much lower than the all-India average of 382 per sq. km. Increase in population literacy rate from 63.08 percent in 2001 to 73.45 percent in 2011. The male and female literacy rates, which was 75.35 percent and 50.51 percent respectively in 2001 has increased to 82.40 percent and 64.36 percent respectively in 2011.

Decadal Comparative Analysis of Demographic Position:

Particulars Year 1991 2001 2011

Population (in million) 31.66 36.81 41.95 Decadal Population Growth (%) 20.06 16.25 13.97 Density of Population (in sq km) 203 236 269 Population Literacy Rate (%) 49.10 63.08 73.45

Male (%) - 75.35 82.40 Female (%) - 50.51 64.36

Source: Orissa govt. website and Census 2011

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Orissa - Economy

The State which is first in terms of total envisaged investments in India and second highest domestic investment destination is one of the front running States in the country attracting investment worth US$ 44.66 billion i.e. 12.6 percent of the total investment proposals in the country. Mckinsey predicts a 7.1 percent galloping growth over the next 10-12 years – the highest in eastern India.

(Source: The State of the States Survey 2007- India Today;.Assocham Investment Meter – January 2009- December 2009 – web: http://www.assocham.org/arb/aim/Investment_StudyJan09-Dec09.pdf & Orissa Economic Surveys 2009-10)

The State’s GDP, which was reported to be US$28.76 billion in the financial year 2009 moved to US$ 34.27 billion in the financial year 2010 and the per capita income, which was of INR 29,464 in the financial year 2009, has jumped to INR 33,226 in the financial year 2010. (Source: VMW Analysis)

The State’s economy has been undergoing a structural change, with the services sector becoming more and more pronounced. As per advanced estimates for 2009 -10, the service sector accounts for 56.30 percent of the GSDP, followed by industry sector which account for 25.44 percent of the GSDP and agriculture and allied sectors which account for 18.26 percent of the GSDP. (Source: Orissa Economic Survey 2009-10) Orissa – An Investment Destination Orissa was always a natural choice for investments, the host of advantages the state enjoys in terms of connectivity, mineral reserves and sound government policies have combined to make a lucrative investment destination.

The State offers tremendous opportunities for domestic and international investment in the export-oriented industries and other sectors. It is well connected by all modern means of transport surface, air and water. It has a substantial industrial base, comprising of a number of large, medium and small-scale enterprises in steel, aluminium, chrome, power, textile, handicraft and a host of other sectors.

The thrust is more on agro, mineral and forest based industries, food processing, cement, paper, sugar, fertilizer, iron and steel, handloom, information technology, power, tourism, aluminium industries, gems and jewellery, automobile, basic drugs and pharmaceuticals, petro-chemicals and export oriented units. Source- http://www.orissagov.nic.in/industries/index.htm

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As a positive response to a pragmatic fiscal and administrative reform process, continued high government investment in social sectors and dominant development strategy, the State has signed Memorandum of Understanding (MoU) with around 79 industrial houses with an expected investment of about US$ 81.23 billion. (Source: Annual Report 2008-09 –Industries Dept) Total private investment including from those entrepreneurs who have signed Memorandum of Understanding with the State government and from those who have not signed any Memorandum of Understanding with State government is expected to be of the order of US$ 144.5 billion. Source: Economic Survey 2008-09 According to the latest Global Economic Forum report of Morgan Stanley, the State has the potential to emerge as a centre for metals business in India and can attract investment within a bracket of US$ 30 billion and US$ 90 billion. (Source: http://in.answers.yahoo.com/question/index?qid=20070517211305AA6O5pb) With its abundant mineral resources, long coastline, plentiful inland waters and diverse forest wealth and along with cheap availability of manpower the State has the potential to attract industrial investments. The state government has reaffirmed its commitment to transform the State into a vibrant industrial state and has therefore reformulated and passed the Industrial Policy Resolution in March 2007 (IPR 2007). IPR-2007 focuses on providing institutional infrastructure and need based fiscal incentives to consolidate and reinforce the industrialization process in the State. The policy emphasizes on deregulation, simplification of rules and procedures to enable a conducive business climate in the State. Some of the features of the IPR are mentioned below:

• Reduce regional disparities in economic development within the State. • Deregulate the business environment. • Implement and operationalise single window mechanism for industrial clearances. • Ensure balanced utilization of the natural resources for sustainable development.

Under IPR 2007, new industrial units and existing units in Orissa are eligible for various incentives and concessions subject to certain conditions as stipulated in the policy.

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Export Performance

EXPORT OF GOODS DURING THE YEAR 2008-09

Sl.No. Category of Products

Value (INR)(in billion) Destination Countries

1 Metallurgical Product 49.61653

Bangladesh, Nepal, Bhutan. Egypt, Georgia, Iran, Romania, UAE, Ukraine, Malaysia, Singapore, Sri Lanka, Taiwan, Vietnam, China, Netherland, Belgium, Romania. Dubai, U.K., Italy, Spain, Japan, USA, Switzerland, Peru, Canada, Mexico, Thailand, Turkey, Baharain, S Korea,

Sl.No. Category of Products

Value (INR)(in billion) Destination Countries

2 Engg./Chemical & Allied 4.70344

USA, Cyprus, South Africa, New Zealand, Sri Lanka, UAE, Kenya, Germany, Turkey, Australia, Poland, Denmark, Bangladesh, Vietnam, Taiwan, Italy, France, Thailand, Indonesia, China, Libya, Nigeria, Myanmar, Algeria, Bosnia, Bulgaria, Brazil, Canada, Japan, Pakistan, UK, Afghanistan, Chile, Egypt, Ghana,

3 Mineral Products 75.01516 China, Japan, Thailand, Taiwan, Malaysia, Indonesia, Australia,

4 Agricultural & Forest Products 0.01379 U.K., Israel, South Africa, France,

Australia, Kuwait

5 Marine Products 3.83905

USA, Canada, UAE, U.K., France, Japan, Belgium, China, S.Korea, Netherland, Greece, Island

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6 Handloom Products 0.00161 U.K. Italy, Spain, Japan, Germany,

Brazil, Australia, U.S.A., Bangladesh

7 Handicrafts 0.00070 USA, UK, Canada, Australia, Switzerland, Dubai, Belgium

8 Textiles 0.15105 U.K. Italy, Spain, Japan, Germany, Brazil, Australia, U.S.A., Bangladesh

9 Pharmaceuticals 0.01099 Nepal, Bangladesh, Sri Lanka, U.K., Indonesia, Malaysia.

10 Electronics 11.62799

USA, Germany, Japan, Singapore, Australia, China, U.K., South Africa, Canada, Denmark, Spain, Middle East and other European Countries

11 Service Providers 0.05155 All Foreign Countries Grand Total 145.03187

Source: http://depmorissa.gov.in/depm_product_group1.php

Natural Resource of Orissa

The state is a treasure trove of minerals and natural resources. It is often said that Orissa has everything under the sky, which means to include its forest, agricultural wealth, mineral reserves and a coastline.

Mining

The State occupies, in the mineral map of India, an important position both in terms of deposit and production. Vast and diverse mineral deposits make it one of the largest minerals bearing States in India. In fact it is estimated that the state possess 16.92 percent of the total reserves of the country. The treasury of minerals includes coal, iron-ore, manganese ore, bauxite, chromite, limestone, china clay, quartz, precious and semi precious stones, copper and vanadium.

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Production of Mineral in Orissa in Million Tonnes. Exploitation During

Sl. Ore / Mineral Total

Reserve in 2004-05 2001-02 2002-03 2003-04 2004-05

1 Iron Ore 4177 16.79 22.26 34.89 46.06 2 Chromite 111 1.76 3.29 2.88 3.42 3 Coal 60983 47.8 52.03 60.2 66.82 4 Bauxite 1530 3.6 4.93 4.94 4.91 5 Lime Stone 2224 2.15 2.3 2.24 2.26 6 Dolomite 882 1.45 1.15 1.27 1.36 7 Fire Clay 177 0.04 0.05 0.06 0.16 8 Nickel Ore 175 - - - - 9 Quartz, Quartzite & Silica 93 0.06 0.13 0.14 0.16

10 Mineral Sands 86 0.21 0.15 0.23 0.27 11 Graphite 4.6 0.04 0.05 0.03 0.04 12 Manganese Ore 116 0.54 0.63 0.7 1.08

Mineral reserve of Orissa shown as a percentage of the total deposit in India:

Chromite………97.37%, Nickel Ore ………95.10%, Graphite…………………76.67%

Bauxite…….…..49.74%, Iron Ore………….33.91%, Manganese……………...28.56%,

Coal ………….27.59%.

Orissa offers excellent opportunities for numerous mineral and mineral based industries:

• Coal Washeries. • Power Generation. • Powder Metallurgy. • Downstream and Ancillary Industries relating to Power and Construction Industry.

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• Aluminium and Steel Downstream and Ancillary Industries. • Mineral Beneficiation and Processing. • Value Addition in Minerals. • Gemstone Processing.

10 percent of the country’s steel and almost half of the aluminium in the country is produced by Orissa. 49 projects with a cumulative investment of US$ 48.57 billion with a production capacity of 70 MTPA (Million Tonnes Per Annum) is being commissioned. (Source: www.teamorissa.org)

The rich reserves of minerals in the State have led to establishment of several mineral based industries in the state like

(a) Rourkela Steel Plant (RSP) (b) Aluminium Plants by INDAL (c) National Aluminium Company (NALCO) (d) Orissa Mining Corporation (OMC) (e) Ferro Alloys Corporation (FACOR) (f) Indian Charge Chrome Ltd. (ICCL). (g) Indian Metals and Ferro-Alloys (IMFA)

The other important mineral based industries established include two sponge iron plants in Keonjhar district, a refractory in Dhenkanal district and mineral sands separation and synthetic rutile plants of Indian Rare Earth Ltd at Chhatrapur in Ganjam district. Several cement plants have been set up in the State and four coal based thermal power plants have been set up at Talcher, Kaniha, IB Valley and Banharpalli. In addition NALCO, RSP, ICCL, INDAL etc. have set up their own coal based captive power plants.

Bauxite

The State government has decided in principle, to lease the bauxite mines to the prospective entrepreneurs through Orissa Mining Corporation (OMC) with the condition that they will set up Aluminium industries in the State. The OMC has entered into an agreement with M/s Utkal Alumina Ltd. to set up an Alumina Project in Rayagada district.

Vedanta Group is investing US$ 2.09 billion to produce 1.1 MTPA Aluminium Smelter at Jharsuguda is in the offing. (Source: Vedanta Group- It’s a London Based Indian Manufacturing Company – web: http://www.vedantaresources.com/who-we-are.aspx-)

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Dubai Aluminium along with Larsen & Toubro (L&T) is investing US$ 3.65 billion to produce 3 MTPA Bauxite Mining-cum-Alumina Refinery and Smelter. The initial investment would be US$ 1.20 billion for 1.4 MTPA capacities. (Source: Dubal – Dubai Aluminium Co Ltd – is one of the World’s largest smelter owners – web: http://www.dubal.ae/home.aspxand, L& T – Is one of largest Indian Engineering & Construction Cos – web: http://www.larsentoubro.com) US$ 2.38 billion a Greenfield Integrated Aluminium Complex including a 4.2 MTPA Bauxite Mine, 1.5 MTPA Alumina Refinery at Kansariguda and 359-KTPA (Kilo Tonnes Per Annum) Smelter at Lapanga by Aditya Aluminium of the Hindalco Group. The smelter and the refinery should be operational from 2012. (Source: Aditya Aluminium of Hindalco Group- Hindalco Industries Limited, the metals flagship company of the Aditya Birla Group is the world's largest aluminium rolling company – web: http://www.hindalco.com/projects/greenfield_projects.htm)

Mineral Sands

An integrated industrial complex known as Orissa Sands Complex (OSCOM) has been set up by Indian Rare Earths Limited (IREL) to mine and process the beach sands for export of ilmenite and to convert ilmenite to synthetic rutile.

The project envisaged production of 220,000 tonnes of ilmenite, 10,000 tonnes of rutile, 30,000 tonnes of sillimanite, 2,000 tonnes of zircon and 4,000 tonnes of monazite.

Iron Ore

With the opening up of the economy, which was accompanied by liberalization policy, has paved the way for setting up of many iron-ore based industries in the state. While investors make a beeline to sign Memorandum of Understanding (MOU) with the State government, the state government on its part has kept its priorities in place and has given emphasis on value addition in the sector.

The total reserves of iron ore in the state are estimated at 4,177 million tones. All iron ore mining operations in the State are opencast and the methods range from manual to mechanized. Most of the mechanized mines have crushing and screening facilities as well. At present, the state produces 46.06 million tonnes of iron ore (2004-05).

In view of growing worldwide demand for steel, there has been a major area of interest in this sector. As the State possesses huge reserve of high-grade iron ore, which is 33.91

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percent of the country's deposit, the steel makers of national and international repute have shown interest to establish steel plants in the State. The State government have already signed 43 MOUs with private parties who have express their interest and investment plan of setting up steel plants with an investment of US$ 30.50 billion to produce about 58 million tonnes per annum (MTPA) steel.

A reputed and well established South Korean company, M/s Pohang Steel Company (POSCO), which is one of the largest producers of steel in the world, has evinced keen interest for setting up a mega steel project having a capacity of 12 MTPA with an investment of US$ 12 billion approximately.

Investment of US$ 4.14 billion in order to produce 6 MTPA integrated steel plant over 3471.81 acres in Kalinganagar Industrial Complex at Duburi, in the Jajpur district by TATA Steel has commenced its construction. (Source: TATA Steel Web: http://kalinganagar.tatasteel.com/the-project/project-progress.asp)

US$ 8.89 billion and 12 MTPA steel plant over 8,000 acres in Keonjhar District by ArcelorMittal – the Word’s largest steel producer is on the anvil.

US$ 156.53 million Stainless Steel Park over 300 acres of land accommodating 71 units by JSL (formerly known as Jindal Stainless Ltd - country’s largest stainless steel manufacturer) in Kalinganagar Industrial Complex at Duburi, in the Jajpur district which will house a 1.6 MTPA fully integrated Stainless Steel Plant which is due to commence its production by September- October, 2010. (Source: http://www.business-standard.com/india/news/orissa-inks-pactjsl-for-stainless-steel-park/384557)

US$ 1.52 billion steel plant with 6 MTPA at Paradeep by Essar Group has commissioned its first phase in March 2010. (Source: Essar Group - An Euro11.4 Billion Indian Business Conglomerate)

US$ 2.11 billion 2.5 MTPA fully integrated Special and Stainless Steel Plant is coming up at Kalinganagar Industrial Complex, at Duburi, in the Jajpur district, by VISA Steel. (Source: Visa Steel – An Euro 0.8 Billion Business Group - web: http://visasteel.com/aboutus/company-profile.php)

Manganese Ore

The first manganese ore mining in the State dates back to 1924 and this was in Thakurani and at present it is managed by Orissa Mineral Development Company (OMDC). There are now 36 leases for manganese ore and another 61 for iron and manganese ore. Of these, 26 and 52 leases respectively are in operation.

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The State currently produces around 6,50,000 tonnes of manganese ore. Major producers are mentioned below:

Organization In Tonnes Orissa Mining Corporation (OMC) 1,60,000 Orissa Mineral Development Company (OMDC) 1,68,000 Bharat Process and Mechanical Engineers Limited (BPMEL) 66,000 Tata Iron and Steel Company Limited (TISCO) 64,000 O.M. & M. (P) Ltd. 37,000 Aryan Mining and Trading Corporation (AMTC) 18,000 Rungta Group 59,000

Source: Orissa govt. website

Chromite

The State accounts for 98 percent of the total deposit of India and bulk of it confined to Sukinda ultramafic belt. In comparison with the total world reserve it has only 2.5 percent of total world deposit. But the chrome ores from these deposits have a distinct edge over other major deposits of the world in terms of quality, large widths of ore bands and amenability to simple beneficiation process.

Some important leaseholders are TISCO, OMC, Ferro Alloys Corporation Limited (FACOR), Mishralal Mines, B.C. Mohanty and Sons, Industrial Development Corporation (IDC) of Orissa Ltd, Indian Metals and Ferro Alloy (IMFA) and Indian Charge Chrome Ltd (ICCL).

Chromite produced in the State practically meets the requirements of the industries located in different parts of the country. They are used as input by charge chrome plants by TISCO FACOR and ICCL. Ferrochrome plants of IDCOL, IMFA and Nava Bharat Ferro Alloys Ltd are some of the other consumers. Graphite

The estimated reserve of graphite in the State is 2 million tones and no serious attempt has been made to undertake depth-wise proving and consequently mining activities in the

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State have been mostly opencast and manual. Thumdibandh in Phulbani district is the only deposit in the State amendable to mechanized mining.

Natural graphite consumption in India is largely dependent on demand of the refractory industry and the other applications include foundry fluxes, steel mills, crucibles, pencils, midget-electrodes, carbon brushes, paints, explosives and oil drilling.

China Clay

The State possesses large reserve of crude clay. But most of it is of inferior grade. The average annual production of finished clay is 10,000 tonnes from five working mines.

Mining is open cast and there is no working during the rainy season, which normally last for four months every year. China Clay produced in the State is currently used in rubber, paper, textiles, ceramics and paint industries. Silica sand obtained as by product of washing crude clay is used in foundry, glass industries and in welding electrodes for making flux.

Granites

Quarrying for dimension stones in the State is yet to cross the take off stage. A total number of 329 quarry leases have been granted in the State. The major district-wise break-up is as follows:

District Name No. of Quarry on Lease

Ganjam and Gajapati 118 Koraput and Malkangiri 68 Kalahandi 28 Bolangir 20 Keonjhar 36

Source: Orissa govt. website

The rocks quarried include granites and its variants, dolerites, khondalite, anorthosite, charnockite and gabbro are among others.

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Pyrophyllite

The annual production of 36,000 tonnes comes from four leases out of six subsisting lease. The mineral is crushed fine for use in insecticide and ceramics industries besides in making of refractory. There is scope for development of pyrophyllite mining and processing in the State.

Gem Stones

Geological investigations were taken up in Bolangir and Subarnpur districts for precious gemstones and garnets. In course of investigation covering 154 square km, 24 garnet occurrence cases have been detected. The State government have formulated the “Gemstone Policy of 1998” for promoting exploration of gemstone resources in a scientific and systematic manner. The policy, inter alia, envisages steps for prevention of illegal trading and theft of gemstones, opening of the gemstone bearing areas to private sector exploitation and introduction of a scheme of issuing trading licenses to parties dealing with gemstone resources. Out of 28 gemstone bearing tracts identified in the State, 18 tracts have been developed so far and opened for re-grant of mining leases. Besides, few more gem bearing areas have been located in parts of Nuapada, Kalahandi and Bolangir districts by the Directorate of Geology. There exists a good prospect for export of gems and jewellery from Orissa.

Other Minerals

Other minerals, which are being mine in the State, include Quartz, Quartzite and Soapstone. There is prospect of increase in production of Quartz and Quartzite on account of demand by the new iron and steel plants.

Base Metals

The proved prospects in the State include Lead Ore at Sundergarh district and Copper Ore at Sambalpur and Mayurbhanj district.

The lead ore deposit is under exploitation by Hindustan Zinc Limited (HZL) and the average annual ore production being estimated to be of 80,000 tonnes.

Vanadium

Proposal to mine the vanadium and titaniferous magnetite deposits of Betjharan and Kumardubi in Mayurbhanj district and establishment of a plant for production of vanadium pig iron would be encouraged

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Limestone and Dolomite

The status of mining of Limestone and Dolomite in the State is indicated in the following statement:

Item Limestone Dolomite Limestone

and Dolomite

No. of Leases 11 2 38 No. of Leases in Operation 10 2 20

Current annual production (In Million Tonnes) 2.15 1.45 -

Source: Orissa Govt website

The major producers are the following:

Organization Limestone (million tonnes)

Dolomite (million tonnes)

BSL & Co. (Biramitrapur) 0.11 0.6 TISCO (Gomardih) - 0.34 SAIL (Purunapari) 0.27 - OCL (Lanjiberana) 0.78 - IDCOL Cement (Dungri) 0.63 -

All the mines being worked are opencast, semi-mechanized / mechanized

Source: Orissa Govt website

Coal

The State has only two coalfields i.e. IB River Coal Field and Talcher Coal Field. It has coal deposit of 24.78 percent of the country’s total coal deposit.

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Talcher Coalfield

Production of coal rose from 0.91 million tonnes in 1972-73 to 33.10 million tonnes in 2001-02.

IB Valley Coalfield

Production of coal rose from 0.55 million tonnes in 1972-73 to 14.70 million tonnes in the year 2001-02.

Field wise annual production of coal for the year 2001-02 is as under (In Lakh Tonnes.)

Field Grade B / C / D Grade E / F Total Talcher Field 10.24 320.79 331.03

IB Valley Field 11.25 135.77 147.02

Agriculture

Agriculture is a vital sector and a major indicator of the State's economic status; it remains the mainstay of the State’s economy and sustenance of the life of majority of the people. It is estimated that 75 percent of the work force of the State is engaged in agriculture activities which contributes around 20 percent of the Gross State Domestic Product (GSDP).

The total food grain production in the State during 2007-08 was 9.2 million tonnes, which is approximately 4.06 percent of national food grain production, which went down to 7.39 million tonnes in 2008-09. Rice is the main crop of the State. Orissa’s main agriculture products are Rice, Pulse, Oil Seeds, Vegetables, Groundnut, Cotton, Jute, Coconut, Spices, Potato and Fruits.

The Orissa Economic Survey 2011 has expressed concern over declining share of agriculture to the state economy.

The survey pointed point out a major concern that though the share of agriculture sector has been declining; the dependence on agriculture has not been declining in the same proportion. Still at present more than 60 percent of the population depends on agriculture and allied sectors for their sustenance.

The survey stated that there has been a perceptible structural change in Orissa’s economy. The survey has noted that the services sector has become more pronounced as it

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contributed 56.30 percent to GSDP as per quick estimates of 2009-10. Industry’s share has increased to 25.44 percent to GSDP while agriculture sector has come down to 18.26 percent of the GSDP in 2009-10.

The survey has suggested that there is an urgent need to take appropriate measures to raise productivity of agriculture and allied sectors substantially so that the incomes and employment opportunities of those who depend upon these sectors are enhanced in a sustained manner.

Projects and Initiatives taken by the government to revive agriculture sector.

• A comprehensive Agricultural Policy 2008 has been drawn up to make it a major force in building up a futuristic Orissa. The main objectives of this Policy are as follows:

To shift agriculture activities from the present level of subsistence to a profitable commercial activity and encourage the mass to accept agriculture as a vocation.

To enhance productivity of important crops at least to match with national average.

To encourage crop diversification particularly in uplands and medium lands. (e.g. paddy to non-paddy crops)

To focus on horticultural crops including dry-land horticulture.

To encourage modern farming system approach.

To enhance water use efficiency through peoples’ participation.

To facilitate increased long term investment in agricultural sectors (on farm as well as off farm) both by private sector, public sector and private and public partnership (PPP), particularly for post harvest management, marketing, agro processing and value addition.

To increase access to credit for small and marginal farmers.

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To facilitate appropriate market linkages for agricultural produce with respect to which the state has competitive advantages.

To implement integrated watershed development programmes in watershed areas for Natural Resource Management (NRM), increased crop production as well as on-farm and non-farm income.

To create appropriate institutions / facilities to undertake regulatory, enforcement and quality assurance activities matching to the emergent needs.

To re-define the roles and responsibilities of the agricultural extension machinery by suitably restructuring the field extension set up.

• US$ 44.47 million ISOPOM – Integrated Schemes of Oilseeds, Pulses, Oil Palm

and Maize, which is Central - Government sponsored scheme with 75:25 funding pattern between the Centre and the State. The basic aim is to increase production of oilseeds, pulses and maize and their products through infusion of better technology.

• US$ 5.24 million NFSM – National Food Security Mission of the Government of

India to raise the production of rice by 10 million tonnes, wheat by 8 million tonnes and pulses by 2 million tonnes at an all India level.

• US$ 5.56 billion RKVY – Rashtriya Krishi Vikas Yojana - Additional Central

Assistance scheme in order to incentivise the states so as to increase public investment in agriculture and allied sectors.

Additionally, the State is also partaking in Irrigation Programmes, Crop Insurance and many other schemes to promote this sector. (Source: Orissa Economy Survey 2009-10)

There is a vast scope for agro-based industries as: • Rice Milling • Dal-Milling • Edible Oil Milling • Dehydration of Vegetables • Maize Milling

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• Cattle Poultry • Cotton Oil • Potato Chips • Coconut Oil • Sugar Mills • Mushroom Cultivation • Non Edible Oil

Marine Orissa is a maritime state, having a coastline of 480 km. with continental shelf area of 24,000 sq. km. along the Bay of Bengal accounting for 6 percent of the coastline and 4.7 percent of the continental shelf area of the country. The State is also endowed with brackish water area of 0.418 million hectares and fresh water area of 0.673 million hectares by the end 2008-09. The 7th highest fish producing State in the country producing 374.8 TMT (Thousand Million Tonnes) of fish. It has opened opportunities to earn foreign exchange and become a potential market leader in fishery and marine products. The export-import data of fish during 1999-2009 is depicted in the table given below. It’s note worthy that 70 percent of Orissa’s exports of fish are from marine sources, whereas the imports comprise only fresh water fish from neighboring States through private trade channels. The destination countries of Orissa’s marine product exports include Japan, China, U.S.A, U.K, UAE, Indonesia and Hong Kong. The export items include frozen marine products like Shrimps, Scampi, Pomfrets, Ribbon Fish, Seer Fish, Cartel Fish, Crab and Dry Fish.

Export & Import of Fish from Orissa (000’ MT) Fish Export to Other States and Countries

Year Marine Fish

Fresh Water Fish

Brackish Water Fish

Total Export

Import of Fresh Water Fish

1999-00 69.91 9.98 4.44 84.33 42.2 2000-01 61.75 6.26 7.07 75.08 41.99 2001-02 60.52 7.57 8.72 76.81 34.03 2002-03 61.29 7.69 12.58 81.56 35.71 2003-04 62.96 11.34 14.73 89.03 34.59

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2004-05 65.72 11.72 14.31 91.75 37.01 2005-06 60.98 13.19 14.85 89.02 44.54 2006-07 68 14.76 14.99 97.75 38.07 2007-08 71.9 13.18 15.17 100.25 47.05

Source: Economy Survey of Orissa 2009-10

Export of Marine Products to Foreign Countries

Year Qty (in 000' MT) Value (in US$ million)

2004-05 9.54 55.34 2005-06 9.8 59.51 2006-07 10.52 69.85 2007-08 14.16 80.65 2008-09 14.13 82.11

Source: Economy Survey of Orissa 2009-10

The technologies developed and transferred by the Central Institute of Freshwater Aquaculture (CIFA) over the last two decades have led to significant increase in fish production. The State is making all endeavors to increase the fish production from the present level of 7.13 million tonnes of fish per year to 10 million tonnes per year by 2012. Some of the projects and initiative taken by the government:

• US$ 46.19 million World Bank Assisted Shrimp culture Project over 445 hectare. on the non-forest Government land at Jagatjore-Banapara in Kendrapara district.

 

• World Bank assisted reservoir fisheries development project is underway taking up 52 reservoirs out of targeted 79 reservoirs.