ODISHA - IBEF · 2018. 3. 27. · 3 ODISHA For updated information, please visit EXECUTIVE SUMMARY … (1/2) Source: Economic Survey of Odisha, CAGR – Compound Annual Growth Rate;

For updated information, please visit www.ibef.org March 2018

ODISHA SCENIC . SERENE . SUBLIME

SUN TEMPLE AT KONARK, ODISHA

Table of Content

Executive Summary .…………….….…….3

Advantage Odisha ……..………………….5

Vision ……………………………………….6

Odisha – An Introduction …….………..….7

Budget 2017-18 …………..………...……18

Infrastructure Status ................................19

Business Opportunities ……..……….......39

Doing Business in Odisha ………….…….66

State Acts & Policies …….……..…...........67

For updated information, please visit www.ibef.org ODISHA 3

EXECUTIVE SUMMARY … (1/2)

Source: Economic Survey of Odisha, CAGR – Compound Annual Growth Rate; GSDP – Gross State Domestic Product

The state’s economy witnessed high growth rates between 2011-12 and 2016-17, with GSDP of the state

growing at a CAGR of 10.71%. Cumulative FDI inflows in the state, during April 2000 to December 2017,

amounted to US$ 425 million.

Strong economy

Odisha has emerged as a key state with regards to the mineral and metal based industries. During 2016-17,

total production of minerals in the state was recorded at 264.87 million tonnes as compared to 238.08 million

tonnes in 2015-16. The state produced minerals worth US$ 2.99 billion during April 2017 to November 2017.

Key minerals found in the state are iron, coal, bauxite, manganese, nickel, chromite, limestone, dolomite,

graphite, decorative stones, beach sand, China clay, tin ore, etc.

Hub for mineral-based

industries

Odisha is one of the largest producers of iron and steel in the country. Total production of iron ore in Odisha

was recorded to be 94.2 million tonnes in FY17 and 67.19 million tonnes for the period April-November 2017.

Being one of the largest producers of iron and steel in India, the state of Odisha is one of the most favoured

investment destinations for domestic and international iron and steel players.

Strong iron and steel

sector

Odisha is considered to be the aluminium capital of India and is an ideal location for setting up aluminium and

aluminum-based companies. The state has huge reserves of minerals such as bauxite, etc. and houses big

multinational companies like Vedanta, Hindalco and Nalco. Bauxite production in the state increased from 9.3

million tonnes in 2014-15 to 11.99 million tonnes in 2016-17. In April 2017 to November 2017, the production

stood at 7.8 million tonnes.

Strong bauxite

production


EXECUTIVE SUMMARY … (2/2)

The state is home to a large number of MSME units. The state is amongst the top ten states accounting for

the highest number of MSME enterprises.

Strong growth in

SSI/MSME units

Source: Ministry of Micro, Small and Medium Enterprises, Central Electrical Authority, Economic Survey of Odisha, Ministry of Tourism

Odisha is the first state in India to have undertaken reform and restructuring initiatives in the power sector. As

of February 2018, the state had a total installed power generation capacity of 7,338.36 MW. Strong power sector

Note: SSI – Small Scale Industry, MSME – Micro, Small and Medium Enterprises


ADVANTAGE: ODISHA

Policy, fiscal incentives and initiatives

The state offers a wide range of fiscal and policy

incentives for businesses under the Industrial Policy

Resolution, 2007.

Additionally, the state has sector-specific policies for IT

and micro, small and medium enterprises.

The state government has constituted ‘Team Odisha’

to help with investment promotion.

Facilitating infrastructure

Odisha has a up to date social, physical and industrial

infrastructure, and the state government has been

undertaking various infrastructural projects to boost the

infrastructure of the state.

As per state budget 2018-19, US$ 811.24 million has

been allocated for the Railway infrastructure

development which is considered to be the highest

allocation to the state.

Rich labour pool

The state has a literacy rate of 72.87% which is close

to the national average. Owing to strong literacy rate,

large number of skilled labors are available in the state.

Hence, providing a boost in making it an ideal

destination for the mineral-based industry.

Furthermore, the state has a large pool of semi-skilled

and unskilled labour.

March 2014

Thermal

power

installed

capacity:

3.87 GW

February

2018

Thermal

power

installed

capacity:

4.99 GW

Advantage

Odisha

High economic growth

The state’s GSDP grew at a Compound Annual Growth

Rate (CAGR) of 10.7% between 2011-12 and 2016-17.

The tertiary sector was the major contributor to the

state’s GSDP with contribution of 43.53% during 2016-

17.

Source: Economic Survey of Odisha, Central Statistics Office


ODISHA VISION 2022

Source: Confederation of Indian Industry

Infrastructure

To improve connectivity by

increasing road and rail density

and to improve passenger

services.

To provide universal access to

power, irrigation and to improve

urban infrastructure as well.

Industrial

development

To develop industrial parks with

quality infrastructure, to encourage

micro-enterprises as ancillaries and

to pave the way for cost &

technology orientation by

encouraging competition.

Govt. services

and

administration

To enhance the use of

Information Technology (IT)

to ensure transparency and

speed.

To minimize interface between

public and government for

dealings.

Health

To improve rural healthcare system,

to provide quality emergency

healthcare facilities, to patronise

health insurance, to imbibe health

and hygiene content in education

system, etc.

Education & skill

development

Agriculture

To improve the productivity of the

sector, to encourage modern

agricultural practices, to bring

insurance schemes for farmers

against natural disasters, etc.

To foster technical and vocational

education and skill development

programmes.

To establish educational townships.

Vision 2022

To frame concerted strategies to

address various issues of

unemployment and rural well being.

To bring about growth with equity.

To protect historical monuments

through proper renovation.

To nurture and promote classical

music, dance and literature.

Tourism & culture Growth and well-

being


ODISHA FACT FILE

Source: Census 2011, Economic Survey of Odisha

Odisha is located in the eastern region of India. The state shares its

borders with West Bengal in the north-east, Jharkhand in the north,

Andhra Pradesh in the south, Chhattisgarh in the west & the Bay of

Bengal in the east.

Languages spoken in the state are Oriya & its various dialects, Hindi

& English.

Bhubaneswar, Mayurbhanj, Baleshwar, Khordha & Sundargarh,

Ganjam, Cuttack are some of the large cities in terms of population.

Odisha has 3 major seasons, summer (March to June), monsoon

(July-September) & winter (October-February).

Source: Maps of India

Parameters Odisha

Capital Bhubaneswar

Geographical area (lakh sq. km) 155,707

Administrative districts (No) 30

Population density (persons per sq. km) 270

Total population (million) 41.97

Male population (million) 27.1

Female population (million) 25.5

Sex ratio (females per 1,000 males) 989

Literacy rate (%) 72.87


ODISHA IN FIGURES … (1/2)

Parameter Odisha All states Source

Economy 2016-17 2016-17

GSDP as a percentage of all states’ GSDP 3.1 100.0 Directorate of Economics & Statistics of Odisha, Central

Statistical Organisation

GSDP growth rate (%) 10.85 11.52 Directorate of Economics & Statistics of Odisha, Central


Per capita GSDP (US$) 1,324.6 1,799.9 Directorate of Economics & Statistics of Odisha, Central


Physical Infrastructure

Installed power capacity (MW) 7,338.36 334,146.91 Central Electricity Authority, as of February 2018

Wireless subscribers (No) 34,023,044 1,167,435,645 Telecom Regulatory Authority of India, as of December

2017

Internet subscribers (No) 9,860,000 429,230,000 Telecom Regulatory Authority of India, as of September

2017

National highway length (km) 4,838 115,435 NHAI, Roads and Building Department-Government of

India

Major and minor ports (No) 1+2 13+187 India Ports Association 2015

Airports (No) 1 125 Airports Authority of India


ODISHA IN FIGURES … (2/2)

Parameter Odisha All states Source

Social Indicators

Literacy rate (%) 72.87 73.0 Census, 2011

Birth rate (per 1,000 population) 18.6 20.4 SRS Bulletin

Investment

Cumulative FDI equity inflows (US$ billion)

0.425 368.05 Department of Industrial Policy & Promotion, April 2000

to December 2017

Industrial Infrastructure

Operational PPP projects (No) 27 1,246 DEA , Ministry of Finance, Government of India, July

2016

Operational SEZs (No) 5 222 Notified as of December 2017, Ministry of Commerce &

Industry, Department of Commerce, December 2017

Source: SRS: Sample Registration System, PPP: Public-Private Partnership, SEZ: Special Economic Zone


ECONOMIC SNAPSHOT – GSDP

At current prices, Odisha’s total GSDP* was estimated at US$ 60.6

billion during 2016-17.

The state’s GSDP grew at a CAGR* of 10.7% between 2011-12 &

2016-17.

Source: Directorate of Economics & Statistics of Odisha, Central Statistical Organisation

GSDP of Odisha at current prices (in US$ billion)

36

.5

41

.3 46

.7

51

.5

54

.7 60

.6

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 10.7%

GSDP per capita at current prices (US$)

83

7.7

93

9.9

1,0

50

.9

1,1

48

.3

1,2

07

.1

1,3

24

.6

0

200

400

600

800

1,000

1,200

1,400

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 9.59%

Odisha’s per capita GSDP* in 2016-17 was estimated at US$

1,324.6.

Per capita GSDP* of the state grew at a CAGR of 9.59% between

2011-12 and 2016-17.

Note: * Aranca research estimates based on data available from MOSPI, GSDP- Gross State Domestic Product


ECONOMIC SNAPSHOT – NSDP

NSDP of Odisha at current prices (in US$ billion)

Odisha’s total NSDP* was about US$ 53.5 billion during 2016-17.

The state’s NSDP* grew at a CAGR of 10.7% between

2011-12 & 2016-17.

32

.2 36

.8 41

.0

45

.2

48

.0 53

.5

0.0

10.0

20.0

30.0

40.0

50.0

60.0

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 10.7%

NSDP per capita at current prices (US$)

76

2.1

86

2.4

95

1.5

1,0

37

.9

1,0

92

.7

1,2

03

.6

0

200

400

600

800

1,000

1,200

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 9.57%

Odisha’s per capita NSDP* in 2016-17 was US$ 1,203.6 .

Per capita NSDP grew at a CAGR of 9.57% between 2011-12 and

2016-17.

Source: Directorate of Economics & Statistics of Odisha, Central Statistical Organisation

Note: * Aranca research estimates based on data available from MOSPI, NSDP- Net State Domestic Product


ECONOMIC SNAPSHOT – PERCENTAGE

DISTRIBUTION OF GSVA

In 2016-17, the tertiary sector contributed the most (43.53%) to

GSVA, followed by secondary (29.2%) and primary (27.27%)

sectors.

During 2011-12 to 2016-17, the tertiary sector recorded the highest

CAGR (12.32%), followed by the secondary (8.81%) and primary

(7.74%) sectors.

30.16% 27.27%

30.74%

29.20%

39.09% 43.53%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011-12 2016-17

Primary Secondary Tertiary

7.74%

12.32%

8.81%

CAGR

Source: Directorate of Economics & Statistics of Odisha

Gross State Value Added by economic activity at current basic

prices


ECONOMIC SNAPSHOT – AGRICULTURAL

PRODUCTION

Food grain production in the state reached 9,058.8 thousand tonnes

in 2016-17. Further, in 2016-17, 1.36 million hectares of land was

under cultivation of horticulture crops and the total production in the

state stood at 11.723 million metric tonnes.

Sugarcane production in the state stood at 814.7 thousand tonnes in

2016-17.

As per state budget 2017-18, an allocation of US$ 14.91 million was

made for continuation of the corpus fund with Odisha State Seeds

Corporation, Odisha Agro Industries Corporation and Odisha

Cashew Development Corporation.

The state government also proposed to enhance the post-harvest

management practices in the state. For enhancement of millet

production & productivity across tribal areas of the state, the state

government decided to implement “Special Programme for Millet in

Tribal Areas” during 2016-17.

ITC is planning to invest in organic farming and shrimps in Odisha. It

is also exploring opportunities in organic cotton farming.

As per State budget 2017-18,the state government has proposed the

sum of US$ 38.8 million take up micro-irrigation under PMKSY with a

State Share of 40%.

Source: Department of Agriculture, Cooperation & Farmers Welfare, Government of India

Rice 8,381.8

Wheat 0.5

Fruits 2432.29

Vegetables 8760.09

Flowers 7.24

Aromatic 0.61

Spices 201.96

Plantation crops 319.39

Honey 1.25

Onion 378.58

Coarse Cereals 277.8

Food grains 9,058.8

Pulses 398.8

Agriculture production in Odisha – ‘000 tonnes (2016-17)


ECONOMIC SNAPSHOT – FDI INFLOWS &

INVESTMENTS

According to the DIPP, cumulative FDI inflows in the state during

April 2000 to December 2017 stood at US$ 425 million.

The state is aiming to facilitate growth in the manufacturing sector

with an yearly increase of 15% till 2020. As per the state government

investment plans, the contribution of manufacturing sector in the

overall GSDP of the state is projected to reach 27% by 2020.

In order to increase the employment opportunities in the state,

Odisha government has announced plans to invest US$ 28.69 billion

in the manufacturing sector generating nearly 3 lakh job

opportunities by 2020.

In line with the Centre's ambitious & flagship ‘Make in India’ initiative

to develop the country as a manufacturing hub, the Government of

Odisha bagged investment commitments worth US$ 30.54 billion

during the ‘Make in Odisha’ conclave.

In January 2017, Tata Steel entered into an agreement with

Chennai-based - Creative Port Development, at an estimated

amount of US$17.85 million, for the proposed development

of Subarnarekha Port at Chaumukh village in Balasore district.

In January 2018, Odisha government approved five investment

tenders worth US$ 50.66 million in major sectors including

hospitality, food processing and downstream aluminium industry

different sectors in State Level Single Window Clearance Authority

(SLWCA) meeting. The move is expected to create employment

opportunities for 1674 people.

Gujarat Co-operative Milk Marketing Federation Ltd (Amul) has

decided to invest over US$ 77.78 million in the dairy sector of the

state, as of November 2017.

Source: Department of Industrial Policy & Promotion, Economic Survey of Odisha, News articles

FDI equity inflows, 2008-09 to 2017-181 (US$ million)

9

149

15

28

52 48

9 6 12 10

0

20

40

60

80

100

120

140

160

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

201

7-1

8

Note: 2017-181 : Up to December 2017

1


ECONOMIC SNAPSHOT – EXPORT TRENDS

According to the Ministry of Commerce & Industry, total exports from

Odisha in 2016-17 were valued at US$ 6.3 billion. Value exports from

the state increased at a CAGR of 8.5% between 2006-07 and 2016-

17 ,as the state witnessed 114% growth in export turnover compared

to 2015-2016.

The growth has mainly been on account of increase in the value of

exports of iron ore (301 %), bulk minerals and ores (311 %), residual

chemical and allied products (861 %), iron and steel (104 %),

aluminium and products of aluminium (72 %) and petroleum products

The state has been a major exporter of both mineral & metallurgical

products, which account for around 18.89% & 40.88% of the state’s

total exports, respectively.

During 2016-17, total exports of seafood products from the state

increased 17% to reach US$ 325.95 million from US$ 278.76 million

in 2015-16. In addition, the state government is targeting to ensure

export of seafood products worth US$ 3.1 billion in 5 years starting

from 2017-18.The government has forecasted that it may ramp up its

export turnover to Rs 1 trillion (USD 15.45 billion) by implementing

the new export strategy by the end of 2025.

The Government of Odisha has recognized various sectors for the

promotion & facilitation of the exports from the state. The sectors that

have relatively higher preference of the state government are

agriculture & processed food products, readymade garments,

electronics, IT, engineering goods, arts & crafts & minerals & mineral

based products.

Source: Economic Survey of Odisha, Ministry of Commerce and Industry, Government of India, News articles

2.80

3.4 3.2

2.7

3.7 3.5

2.0

3.1 3.4

2.9

6.3

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

200

6-0

7

200

7-0

8

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

CAGR 8.5%

Export trends (US$ billion)


ANNUAL BUDGET 2017-18

Source: Government of Odisha, Finance Department

Sr No Sector US$ (million)

1 Agriculture and Farmers’ Empowerment

Department 626.54

2 Co-operation Department 165.76

3 Skill Development & Technical Education 128.56

4 Energy Department 272.07

5 Fisheries and Animal Resources

Development Department 124.52

6 Food Supplies and Consumer Welfare

Department 160.90

7 Forest and Environment Department 119.19

8 General Administration Department 50.63

9 Handlooms, Textiles & Handicrafts

Department 32.39

10 Health and Family Welfare Department 910.45

11 School & Mass Education and Higher

Education 2,217.16

12 Housing and Urban Development

Department 716.42

Sr No Sector US$ (million)

13 Electronics and Information Technology

Department 19.24

14 Labour & Employees State Insurance

Department 19.04

15 Panchayati Raj Department 1,355.81

16 Finance Department 3,438.15

17 Disaster Management Department 394.32

18 Rural Development Department 1,179.42

19

Scheduled Tribes and Scheduled Caste

Development, Minorities and Backward

Classes Welfare Department

471.74

20 Tourism and Culture Department 46.94

21 Transport Department 64.22

22 Water Resources Department 1,471.95

23 Women and Child Development Department 461.05

24 Works Department 794.29

Annual State Plan ceiling of major departments



PHYSICAL INFRASTRUCTURE – ROADS

Source: Economic Survey of Odisha, National Highways Authority of India, Odisha Budget – 2016-17

Odisha has around 254,845.32 km of roads, including 4,855.51 km

of national highways & 4,148.82 km of state highways.

The state is well connected to its neighbouring states & other parts

of India through 41 national highways. The state had a road

density of 164 km per 100 square km of area.

In March 2018, Bhubaneshwar Smart City Limited (BSCL)

participated in an investment meet at NITI Aayog to attract

investments for its integrated multi utilities project. The project

includes components such as 24X7 water supply, storm water

drainage, solid waste management, round the clock power supply,

road and pavement works, tree plantation and smart street lighting

and is expected to cost nearly Rs 370 crore (US$ 57.15 million)

The Ministry of Road Transport and Highways has given approval

for the rehabilitation and upgradation of two road stretches in the

State of Odisha. The 53.79 km stretch of NH-59 from 173/370 km

to 229/400 km is to be widened to two lanes at a total cost of about

Rs 214.23 crore (US$ 331.05 million).

2017-18 Budget highlights:

• US$ 794.29 million has been proposed for the maintenance of

roads, public building and bridges under the Works Department.

• Under State Plan, US$ 524.48 million has been provided for

improvement of 1,310 km of roads and construction of 37

bridges in the state.

Road type Road length (km) (as of 2015-16)

National highways 4,855.51

State highways 4,148.82

District roads 14,694.23


PHYSICAL INFRASTRUCTURE – RAILWAYS

As of March 2016, Odisha has railway track length of 2,572.16 km.

Odisha serves as a link between eastern & western India through the

railway network of the South Eastern Railways & the East Coast

Railways.

With the authorization of the Talcher-Sambalpur track, an imperative

link has been cemented between coastal & western Odisha.

Odisha falls in the East Coast Railways region. Its major divisions

are Khurda Road, Sambalpur & Waltair, with district headquarters in

Bhubaneswar.

The Asian Development Bank (ADB) has inked a US$120 million

loan agreement with the Government of India to fund double-tracking

work and the electrification of railway tracks across high-density

corridors in the country, which includes Odisha.

With the allocation of the railway budget of US$ 696.52 million, the

Odisha Government in February 2017, has announced to set up an

electric loco periodical overhauling workshop & freight train

maintenance facilities with routine overhauling facility for freight

wagons in Kalahandi & Sambalpur districts.

In Union Budget 2018-19, extension of Naupada-Gunupur line upto

Theruvali was proposed at a cost of Rs 936 crore (US$ 139.51

million).

In Union Budget 2018-19, the government has assigned Rs 5,252

crore (USD 811.24 billion) for the different railway infrastructure

projects in Odisha, the allocated amount is highest ever till date.

Source: Economic Survey of Odisha, News articles

In March 2017, the state government started several projects to

strengthen & develop rail infrastructure in the state. US$ 364.8

million worth of investments would help in mobilising minerals &

encourage tourism.



PHYSICAL INFRASTRUCTURE – AIRPORTS … (1/2)

Biju Patnaik Airport, is located in the state capital, Bhubaneswar. In

November 2013, the airport was declared an international airport by

the Ministry of Civil Aviation.

In 2014-15, AAI announced plans to undertake the construction of

Jharsuguda airstrip. The airport is expected to start regional flights by

February 2018. The airport is one of the five airports in Odisha which

were chosen under the UDAAN scheme.

Direct links are available from Bhubaneswar to destinations such as

New Delhi, Kolkata, Chennai, Nagpur, Mumbai & Hyderabad. In

addition, there are 17 airstrips & 16 helipads at several places in the

state.

The Airports Authority of India (AAI) has proposed construction of

another international airport in Odisha due to the rising air traffic. The

proposed airport will require 1,500-2,000 acres of land and will be

built on PPP mode. In February 2018, government decided to

allocate 1.47 acres additional land free of cost to the AAI for the

expansion of the Jharsuguda Air strip.

A sum of US$ 6.4 million has been proposed in the 2017-18 state

budget for the construction of air strips to enhance air connectivity.

Also, a new scheme called the Regional Connectivity Scheme has

been formulated by GOI to connect the small towns of the states

through airstrips/ airports by way of e-bidding.

The state government has begun the process of constructing a new

greenfield airport in Khurda district. As of December 2017, Airports

Authority of India (AAI) is going to conduct a feasibility study of land

available.

Source: News articles, Airports Authority of India Domestic airport


PHYSICAL INFRASTRUCTURE – AIRPORTS … (2/2)

Source: AAI (Airports Authority of India)

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-181

1998 2,667 2,286 3,324 4,022 5,950 7,002 8,239 6,467

0.8

3 1.0

4 1.2

5

1.3

9

1.3

4

1.4

9

1.8

9

2.3

3 2

.60

-0.1

0.3

0.7

1.1

1.5

1.9

2.3

2.7

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

201

7-1

8

Bhubaneshwar passenger traffic (million)

10

,70

6

11

,72

8 1

4,6

72

14

,22

0

11

,75

2

12

,51

2

14

,03

6 1

7,0

78

18

,33

9

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

201

7-1

8

Bhubaneshwar aircraft movement (nos.)

Freight handled at Bhubaneshwar (tonnes)

Note: 2017-181 : Up to January 2018

1

1


PHYSICAL INFRASTRUCTURE – PORTS

Paradip port is connected with the broad-gauge rail link of the East-

Coast Railway & is also served by National Highway-5A.

During April 2017- January 2018, Paradip port handled 84.57 million

tonnes of cargo traffic. As of December 2017, the state government

is planning to establish an outer harbor to the south of South Break

Water for handling the vessels at the port.

Odisha government has approved the second phase bidding for

riverine port. The port is being constructed on Mahanadi river at

Akhadasali village in Mahakalpada block of Kendrapara district at an

estimated cost of Rs 2,110 crore (US$ 325.29)

In May 2017, the state government signed five MoUs with 5 different

companies for the construction of 2 minor ports. The ports are to be

constructed at Astarang in Puri district & Subarnarekha in Balasore

district.

2013-14 2014-15 2015-16 2016-17 2017-181

68,003 71,011 76,390 88,950 84,570

Source: India Ports Association

Major ports Paradip

Minor ports Gopalpur

Dharma

Commodity 2013-14 2014-15 2015-16 2016-17

Petroleum, oil &

lubricants 26.6% 25.7% 26.6% 31.1%

Iron 3.3% 0.7% 1.0% 12.4%

Fertilisers 7.0% 4.8% 6.0% 5%

Coal 49.8% 54.9% 52.6% 40.6%

Container 0.1% 0.2% 0.2% 0.1%

Others 13.2% 13.8% 13.6% 9.1%


Gopalpur

(Ganjam)

Paradip

(Jagatsinghpur)

Behrabalpur

(Baleshwar)

Commodity-wise traffic handled at Paradip port

Total traffic handled from Paradip port (‘000 tonnes)

Ports

Note: 2017-181 – Up to January 2018


PHYSICAL INFRASTRUCTURE – POWER … (1/2)

Odisha is the 1st state in the country to bring in power sector

reforms.

As of February 2018, Odisha accounted for a total installed power

generation capacity of 7338.36 MW, comprising 2,488.22 MW under

state utilities, 3,117.24 MW under the private sector & 1,732.90 MW

under central utilities.

Of the total installed power generation capacity, 4,992.90 MW was

contributed by thermal power, 2,150.92 MW by hydropower & 194.52

MW by renewable power.

As per budget 2016-17, the state government has initiated Odisha

Distribution System Strengthening Programme (ODSSP) under

which 500 new 33x11 sub-stations will be added by 2018.

An outlay of US$ 24 million has been budgeted to provide

uninterrupted stable power supply in Bhubaneshwar and Cuttack

Urban Complex under the State Capital Region Improvement of

Power System (SCRIPS) scheme.

In the 2017-18 budget, the government of India has announced

Odisha Renewable Energy Policy to promote green energy and have

proposed a budget of US$ 8.0 million towards the Odisha

Renewable Energy Development Fund.

As of March 2017, companies like NTPC, Adani Power & JSW

Energy are planning to take over coal fired power plants in the state,

which have either started commercial operations or are at very

advanced stages of commissioning.

Source: Central Electricity Authority

Installed power capacity (MW)

5,3

78

.60

5,9

96

.30

6,9

46

.30

7,7

21

.80

9,0

36

.36

9,4

21

.52

8,5

38

.27

7,3

38

.36

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

201

7-1

81

Note: 1As of February 2018


PHYSICAL INFRASTRUCTURE – POWER … (2/2)

In February 2017, for ensuring 24x7 electricity supply of SC, ST

ashram schools located in remote areas, the state government has

planned to install solar photovoltaic systems in 147 schools, at an

estimated cost of US$ 4.95 million.

To fulfil the state’s Renewable Purchase Obligations (RPO) for

promoting the renewable energy sector, the Solar Energy

Corporation of India (SECI) has allocated 50 Megawatt (Mw) wind

power capacity to Odisha.

NALCO is planning to set up a 150 MW wind power plant in Odisha.

The company has sought land and other clearances from the state

government.

Four companies (Tata Power, Adani Group, Torrent Power and

Greenko Group) have shown keen interest to acquire Central

Electricity Supply Utility of Odisha (CESU Odisha). Electricity

distribution privatisation would help to supply electricity in the

distribution circles of Bhubaneshwar and would facilitate 2 million

customers.

NHPC is planning to set up a 200 MW solar project in Odisha with an

investment of Rs1,000 crore (US$ 154.46 million).

Segment Company1

Power generation

company

Odisha Power Generation Corporation

Limited (OPGC)

Power transmission

company

Odisha Power Transmission

Corporation Limited (OPTCL)

Central Electricity Supply Utility of

Odisha (CESU)

Power distribution

companies

Western Electricity Supply Company of

Orissa Limited (WESCO)

North Eastern Electricity Supply

Company of Odisha Limited (NESCO)

Southern Electricity Supply Company of

Odisha Limited (SOUTHCO)

Central Electricity Supply Utility of

Odisha (CESU)

1OPGC, OPTCL and CESU are state government owned. WESCO, NESCO and SOUTHCO are private companies under Reliance Energy


AMRUT AND SMART CITIES … (1/2)

Source: Ministry of Urban Development

Cities Population

Bhubaneswar 840,834

Rourkela 320,040

6 cities of Odisha were shortlisted to be developed as a smart cities.

Two cities those have been selected by the Ministry of Urban

Development to be developed as smart cities in the state of Odisha.

In an effort to revolutionise the infrastructure of the state, the state

government decided to revamp 2 cities namely, Bhubaneshwar &

Rourkela.

As per budget 2016-17, Bhubaneshwar was ranked 1st in the Smart

Cities challenge among the other 98 cities of the country and the

state government has proposed an amount of US$ 50.92 million for

uplifting & developing the city as one of the country’s upcoming

smart cities.

Bhubaneshwar, Odisha’s capital, has secured a spot in the list of

world’s top 20 smart cities in 2017. The ranking has placed the city

at the 13th position in terms of safety and 20th in three other

parameters viz. mobility, healthcare and productivity.

Bhubaneswar

Rourkela

Smart cities in Odisha


AMRUT AND SMART CITIES … (2/2)

Source: Ministry of Urban Development, Government of India

Number of AMRUT cities with population

less than 1 million 9


in the range of 1 – 10 million 0


greater than 10 million 0

Total number of AMRUT cities 9

S. No. City/town

1. Bhubaneswar town

2. Cuttack

3. Brahmapur

4. Rourkela town

5. Puri

6. Sambalpur town

7. Baleshwar town

8. Baripada town

9. Bhadrak

9 cities in the state were identified under Atal Mission for

Rejuvenation & Urban Transformation (AMRUT)..

In budget 2017-18, the state government allocated US$ 32.05 million

for the cities under AMRUT scheme. The funds will be used to

provide basic services and amenities in the cities and to improve the

quality of urban life.

Classification of AMRUT Cities in Odisha on the basis of

population

Cities/ Towns in Odisha covered under AMRUT


PHYSICAL INFRASTRUCTURE – TELECOM

As of November 2017, the state had an overall tele-density of

79.61%.

According to the Telecom Regulatory Authority of India (TRAI),

Odisha had 34.02 million wireless subscribers and 273,288 wire-line

subscribers, as of December 2017.

By the end of December 2017, 6,654,270 subscribers had submitted

requests for mobile number portability in Odisha.

As of FY17, the state had 8,175 post offices.

Source: Telecom Regulatory Authority of India, Department of Telecommunications, 1As of June 2017

Wireless subscribers 34,023,044

Wireline subscribers 273,288

Internet subscribers(1)

9,850,000

Tele density (in %) 79.61

No. of GPs in Phase-I 3,8602

Pipe laid (kms.) 8,1212

Cable laid (kms.) 8,948

GPs for which cable laid 3,237

No. of GPs Lit 5172

Major telecom operators in Odisha

Bharat Sanchar Nigam Limited (BSNL)

Bharti Airtel

Vodafone Essar

Reliance Communications

IDEA Cellular

Aircel Limited

Tata Teleservices

Telecom Infrastructure (As of December 2017)

Performance status of Bharat Net project (as of December 2017)

Note: 1As of June 2017, 2As of July 2017


DEVELOPMENT PROJECTS: URBAN

INFRASTRUCTURE

Odisha has an abundant water supply, endowed with approximately 11% of the country’s water resources.

In December 2017, the state government signed an agreement with Germany’s KfW Development Bank to avail a concessional long term loan of

Rs 440 crore (US$ 67.96 million) for development of infrastructure in different urban centres. The amount received will be utilised for infrastructure

projects like energy efficient street lighting, reclamation and development of water bodies, solid waste management, sewerage systems, water

supply and storm water drainage across the urban areas of the State.

As per the budget 2017-18, the Government of Odisha has allocated an amount of US$ 716.42 million under the Housing and Urban Infrastructure

Department.

Further, under the Externally Aided Project (EAP), the state government has decided to provide an amount of US$ 0.96 million for Odisha Urban

Infrastructure Development Fund of the state during 2017-18. The state government has also proposed to lay down an amount of US$ 3.2 million

for the Odisha Integrated Sanitation Improvement Project as per the 2017-18 budget.

Bhubaneswar Development Authority (BDA) has undertaken the development of Bhubaneswar Town Centre (BTC) over 12 acres of land with an

investment of US$ 1.24 million. The project is envisioned as the city’s first planned Transit Oriented Development (TOD) initiative and also the

first smart building project in Bhubaneswar. It will primarily have elements like theatre plaza, retail and malls, nature plaza, landscape, town plaza,

art plaza, experience plaza, children’s plaza and more.

Government of India has approved 5,133 affordable house in 26 cities with an investment of Rs 156 crore (USD 24.10 million) of which central

government would contribute 77 crore (USD 11.89 million).

Source: JNNURM, Ministry of Urban Development, Government of India, News articles , UIDSSMT: Urban Infrastructure Development Scheme for Small and Medium Towns,

State Budget 2016-17


DEVELOPMENT PROJECTS: KEY PUBLIC-PRIVATE

PARTNERSHIP (PPP) PROJECTS

Source: Ministry of Finance, Government of India

Project name Sector Type of PPP Project Cost (US$ million) Stage

Kirtania Port Subarnarekha Mouth Transport Build-Own-Operate-

Share-Transfer 334.10 Under construction

Deep Draught Iron Ore Berth in

Jagatsingpur district Transport Build-Operate-Transfer 96.87 Under construction

Improvement to Putaspanga Bamberi

Road Transport Build-Operate-Transfer 10.39 Operational

Hop on Hop Tourist Bus Terminal Social and commercial

infrastructure Management Contract 3.82 Under construction

Gopalpur Port Transport Build-Own-Operate-

Share-Transfer 992.97 Operational

IT & Commercial Complex (Rourkela) Social and commercial

infrastructure Build-Operate-Transfer 11.75 Operational

Haridaspur-Paradip Railway Line Transport Build-Own-Operate-

Transfer 238.19 Under construction

Astaranga Port Project Transport Build-Own-Operate-

Share-Transfer 992.97 Pre- construction

Water Supply Project (IIT-NISER) Water sanitation Design-Build-Finance-

Operate-Transfer 28.68 Under construction

Solid Waste Management

(Bhubaneswar-Cuttack) Water sanitation

Design-Build-Finance-

Operate-Transfer 30.55 Under construction

Development of Deep Draught Coal

Berth at Paradip Port Transport Build-Operate-Transfer 62.45 Under construction

Mechanization of East Quay 1, 2 & 3

Berths Transport Build-Operate-Transfer 226.04 Under construction

Road Upgradation (Sambalpur-

Rourkela) Project Transport

Build-Operate-Transfer

Toll 197.46 Under construction

Angul Sukinda new railway line Transport Build-Operate-Transfer

(BOT) 63.77 Under construction


DEVELOPMENT PROJECTS: SEZs AND INDUSTRIAL

ESTATES

Source: Ministry of Commerce & Industry, Government of India, IDCO – Odisha Industrial Infrastructure Development Corporation

The state has 16 SEZs as of December 2017, of which, four are

operational, five are notified & seven are formally approved.

The state has 2 operational IT SEZ with 1 located in Bhubaneswar &

the other located in Jatni Tehsil, as of December 2017. Odisha also

has 1 operational SEZ for production & export of aluminium and 1 for

mineral-based industries.

IDCO is the main developer for forty% of the formally approved

SEZs. The state has 86 industrial estates.

As of March 2016, employment was generated for 3,322 people

through SEZs in Odisha.

Industry Location SEZs (No)

IT/ITeS Khurda 3

Multiproduct Ganjam 1

Metal based SEZ Jajpur 1

Mineral based industries Ganjam 1

Manufacture & export

Of aluminium Jharsuguda 1

Formally approved SEZs (As of December 2017)

Operational SEZs in Odisha (As of December 2017)

Industry Location SEZs (No)

Orissa Industrial

Infrastructure

Development Corporation

(IDCO)

Bhubaneswar IT

Orissa Industrial

Infrastructure

Development Corporation

(IDCO)

Jatni IT (Knowledge

Park)

Vedanta Aluminium

Limited

Brundamal and

Kurebaga villages

Manufacture and

export of aluminium

Saraf Agencies Private

Limited

Chhatrapur,

Gunjam district

Mineral-based

industries


SOCIAL INFRASTRUCTURE – EDUCATION … (1/2)

As of 2016-17, there were 4 dental colleges, 123 engineering

colleges, 41 MCA colleges, 62 MBA colleges and 117

polytechnics/engineering schools in Odisha.

The major universities in the state are Utkal University & Biju Patnaik

University of Technology; popular colleges are Orissa Engineering

College & Sriram Chandra Bhanj Medical College.

The state is also home to premier institutions such as National

Institute of Technology (NIT) Rourkela, Xavier Institute of

Management & National Institute of Science Education & Research.

Under the Universal Immunisation Programme (UIP), the Odisha

government announced its plans to expand rotavirus vaccine in

Odisha as well other than 4 states pan-India, as of February 2017.

As per the state budget 2017-18, a provision of US$ 1.44 billion has

been made for the School & Mass Education Department & higher

education department during 2017-18.

Under the state budget 2017-18, the Government has also provided

US$29.6 million under the Ganadhar Meher Sikhya Manakbrudhi

Yojana (GMSMY) to provide free school bags and educational kits to

students in classes 1 to 5, free school uniforms to children in classes

1 to 8 and free bicycles to all students in class 9.

Source: Economic Survey of Odisha, University Grants Commission, MCA: Master of Computer Applications, MBA: Master of Business Administration, OBC: Other Backward Class, SEBC:

Socially and Educationally Backward Class

Medical Colleges (Pvt+ Govt.) 8

Dental colleges (Pvt+ Govt.) 4

Engineering colleges (Pvt+ Govt.) 123

MCA colleges (Pvt+ Govt.) 41

MBA colleges (Pvt+ Govt.) 62

Polytechnics/engineering schools 117

Educational infrastructure (2016-17)


SOCIAL INFRASTRUCTURE – EDUCATION … (2/2)

In 2016-17, Odisha recorded a literacy rate of 73.4% out of which the

male literacy rate was 81.59% and the female literacy rate was

64.01%.

In 2015-16, Odisha had around 36,760 primary schools with 22,795

upper primary schools and 9,671 high schools.

During 2015-16 (up to December 2015), for providing the Wi—Fi

services in Central University of Orissa, Bhubaneshwar, an amount

of US$ 649.29 thousand was approved by the central government.

Moreover, for a period of 2012-17, 3 proposals for the establishment

of new universities through clustering of colleges and 3 proposals for

setting up of new universities through up-gradation of autonomous

colleges have been received by the state.

In May 2017, the state government decided to impart

entrepreneurship training to at least 10,000 people this year. The

training will be organised by the Institute of Entrepreneurship

Development, Bhubaneswar, District Industry centres and Coir

Board.

Source: Economic Survey of Odisha; Odisha Budget 2016-17, RUSA - Rashtriya Ucchatar Shiksha Abhiyan

Literacy rate 73.40

Male literacy 81.59

Female literacy 64.01

Number of schools

Primary: 36,760

Upper primary: 22,795

High schools: 9,671

School-dropout rate (%)

Primary: 2.82

Upper primary: 3.87

High Schools: 16.49

Pupil-teacher ratio Primary: 24:1

Upper primary: 23:1

Net-enrolment ratio in schools (%) Primary: 88.42

Upper primary: 81.79

Source: Census 2011

Literacy rates (%)

Odisha primary education statistics (2015-16)


SOCIAL INFRASTRUCTURE – HEALTH

In November 2017, 412 community health centres, 1,361 primary

health centres and 27 sub-district hospitals were operational in the

state.

Under plan and non plan expenditure, US$ 589.53 million has been

allocated for the Health and Family Welfare Department in the state

budget 2017-18. Odisha State Medical Corporation (OSMC) is

established by the Government of Odisha to supply free of cost

drugs to the health facilities in Odisha.

Under National Health Mission, the centrally sponsored scheme

instituted by the Government of India to improve the health care

sector, the Government of Odisha proposed to allocate US$ 207.84

million in the state budget for 2017-18.

In December 2017, the state government signed four MOUs with

Glocal Health Care Systems Pvt Ltd, Centre for Stem Cell Research

of Christian Medical College, Narayana Hrudayalaya and LV Prasad

Eye Institute to improve healthcare facilities and provide better

services in the state.

In March 2018, the state government approved setting up of 19

hospitals in the state. Establishment of these hospitals will be done

under PPP mode and is expected to require private sector

investments worth Rs 1,150 crore (US$ 177.63 million).

Source: Central Bureau of Health Intelligence, Government of India, Ministry of Health and Family welfare, Economic Survey of Odisha, SRS Bulletin

Active primary health centres 1,363

Active sub centres 6,691

Active community health centres 420

Active district hospitals 38

Active sub district hospitals 27

Population served per hospital bed1

1,386

Birth rate2

18.6

Death rate2

7.8

Infant mortality rate3

44

Male (2011-15) 64.3

Female (2011-15) 67.3

Health indicators (2016)

Life expectancy at birth (year)

Health infrastructure (January 2018)

Note: 1As of 2014-15, 2Per thousand persons, 3Per thousand live births, PPP – Public Private Partnership


CULTURAL INFRASTRUCTURE

There are sports stadiums in Bhubaneswar, Cuttack & other cities. Badminton, cricket, hockey, tennis, table tennis & volleyball are the major

sports although, other games are also popular.

The main sports arenas are the Barabati Stadium & Jawaharlal Indoor Stadium in Cuttack, the Biju Patnaik Swimming Pool-cum-Sports Complex

& the Kalinga Stadium in Bhubaneswar, a sports complex in Berhampur & a synthetic hockey surface stadium in Rourkela.

The key hotels in Bhubaneswar are the Trident Hilton, Kalinga Ashoka and Swosti Plaza. In Cuttack, the key hotels are the Akbari Continental &

Hotel Bishal, while Mayfair Beach Resorts and Panthanivas Puri are the most popular hotels in Puri.

Over the past few years, there has been a gradual development in the tourism industry & cultural infrastructure of the state. On account of this, the

Chief Secretary of the state has taken initiatives to foster the Odia Bhasa Pratisthan to enable the implementation of Odia in all government

transactions. Also, in order to drive maximum footfalls & popularize the Nabakalebara Festival 2015, the cultural department for the festival has

prepared a media plan to be followed in the subsequent years.

Puri is a beach city famous for hosting the annual temple festival, or the Rath Yatra, which draws a large number of religious tourists. The state is

home to several famous temples, such as the Lingaraj temple and the Kedareshwar temple in Bhubaneswar, Jagannath temple and Gundicha

temple in Puri & the Sun temple in Konark.

Odissi is the major dance form of the state. The state government has allocated US$ 46.94 million to the Tourism and Culture Department as per

2017-18.

Various cultural projects being under taken in Odisha include Odia Virtual Academy, Revival of Bhagabat Tungis, Kalamandal project, Odia Bhasa

Pratisthan, Setting up Odia Chair in different Universities, etc. for which the state government has proposed US$ 0.15 million, US$ 0.45 million,

US$ 0.76 million, US$ 0.15 million & US$ 0.30 million, respectively during 2016-17.

The state is hosting the 22nd edition of Asian Athletics Championships in July 2017 at the Kalinga Stadium in Bhubaneshwar. A total of 800

athletes from 45 countries are participating in the event.

The state will be host to the 14th edition of men’s hockey World Cup in 2018. The state government is the title sponsor for the 2018 world cup.


INDUSTRIAL INFRASTRUCTURE … (1/3)

As a part of the state government-enacted Orissa Industries

(Facilitation) Act, 2004, a single-window clearance system was

implemented in the state. This was done with the aim of facilitating

the growth of industries and creating an attractive environment for

both domestic and international investments.

IDCO and NALCO have signed an MoU to develop an ancillary and

downstream aluminium park at Angul over 450 acres of land.

A mega food park is being established near Bhubaneswar over 282

acres through the PPP mode. IDCO is the nodal agency for the

establishment of this park.

For industrial development in the state, Government of Odisha

announced plans to invest US$ 18.84 million for MSME sector. Major

initiatives under this investment are-

• Biju Atma Nijukti Yojana (BANY)

• National Mission on Food Processing(NMFP)

• Incentives for food processing industries

• Capacity building of entrepreneurs

• VAT re‐imbursement

• Subsidy under MSME Policy 2009

As per budget 2017-18, the state government allocated US$ 2.98

million under the Industrial Infrastructure Development Fund (IIDF) to

ensure quality infrastructure is available to industrial clusters.

Further, the state government has also projected to assign US$ 1.52

million under the initiative of BANY (Biju Atma Nijukti Yojana) during

2016-17.

For the endorsement as well as financial assistance to MSME units

of Odisha, the state government has decide to allocate US$ 4.73

million and it has also been decided that for the establishment of

Infrastructure Development Fund (IDF), an amount od US$ 1.52

million will be allocated during 2016-17.

In April 2017, the Odisha government approved an investment of

US$ 263.33 million in nine different sectors. The move will create

employment for 3,204 people.

Setting up of an Electronics Manufacturing Cluster (EMC) in

Bhubaneshwar Industrial Area has been approved by the central

government. The EMC is to be built over an area of 204 acres at a

cost of US$ 31.11 million.

Source: Economic Survey of Odisha, DCO – Odisha Industrial Infrastructure Development Corporation, MoU – Memorandum of Understanding

Key Industrial zones

Talcher-Angul

Kalinganagar-Duburi

Bhubaneshwar-Khurda

Rayagada-Sunabeda

Gopalpur-Chatrapur

Paradip-Jagatsinghpur

Jharsuguda-Brajarajnagar



Industrial zones Description

Infocity

The IT park is spread over 350 acres in Bhubaneswar and has IT companies such as Infosys, Wipro,

TCS and MindTree. Equipped with modern infrastructure including a nine-hole golf course, it is one of

the biggest IT parks in eastern India. Infocity-II is projected to be spread over 500 acres at Janla.

Fortune Tower It has a built-up space of 350,000 sq ft in a hi-tech steel and glass structure equipped with high-speed

connectivity in Bhubaneswar and is home to a number of IT companies.

Industrial Infrastructure Development

Corporation (IDCO) Tower

It is a strategically located, 11-storeyed business centre in Bhubaneswar and has a number of IT/ITeS

companies.

Special economic zones (SEZs)

The Chandaka Industrial Estate in Khurda is an IT/ITeS SEZ developed by the Orissa Industrial

Development Corporation. Nine more SEZs have been given formal approval and five had been

notified by the Government of India.

Technology parks The Software Technology Parks of India (STPI) has developed software technology parks at

Bhubaneswar, Rourkela and Berhampur.

Mega food park

The state government is planning to establish a mega food park near Bhubaneswar over 282 acres in

PPP mode. Odisha Industrial Infrastructure Development Corporation (IDCO) is the nodal agency for

establishment of the park.



Source: Economic Survey of Odisha, MSME: Micro, Small and Medium Enterprises

Category MSME units (No) (2015-16)

Repairing & services 110,910

Food & allied sectors 31,662

Engineering & metal 15,311

Textiles 12,861

Glass & ceramics 9,867

Forest & wood based 1,468

Miscellaneous manufacturing 11,819

Paper & paper products 3,603

Chemical & allied sectors 3,485

Rubber & plastics 1,976

Electrical & electronics 1,549

Livestock & leather 576


KEY INDUSTRIES

Odisha’s industries are based mainly on the natural resources

available in the state. It carries more than 35% of country’s natural

resources.

Forest-based products provide livelihood to a large section of the

population of the state. Agriculture and allied sectors have provided

employment, directly or indirectly, to more than 60.0% of the state's

total workforce.

The state has significant reserves of iron ore, bauxite, nickel, coal,

etc. Hence, it is an attractive destination for mineral-based industries.

The state is one of the top producers of aluminium in the country,

both in terms of production capacity as well as actual production.

In September 2017, the state government approved the ‘Odisha

Mobile Towers, OFC and related Telecom Infrastructure Policy,

2017’. The policy aims to streamline the process for companies

entering the telecom sector in Odisha, establish modern

telecommunication network and encourage development of

telecommunication network in remote areas.

Year Number Proposed Investments (US$ billion)

2012-13 58 10.55

2013-14 40 16.37

2014-15 27 4.68

2015-16 23 4.02

2016-17 36 3.49

2017-18 31 1.08

Source: Economic Survey of Odisha, DIPP, IEM: Industrial Entrepreneur Memoranda, LOI: Letters of Intent; DIL: Direct Industrial Licenses

Key Industries in Odisha

Iron and steel, and ferroalloy

Aluminium

Handloom

Agro-based industry

Mining

IT/ ITeS

Electronics

Tourism

Investment intentions in terms of IEMs filed, LOIs / DILs issued


KEY INDUSTRIES – IRON, STEEL AND FERROALLOY

… (1/3)

Odisha being one of the largest producers of iron and steel in the country, accounts for 10% share in the nation’s steel production. The state also

accounts for 25% share in the iron reserves of India. Iron ore production in the state increased from 80.87 million tonnes during 2015-16 to 102.66

million tonnes during 2016-17.

Steel Authority of India (SAIL), a public sector undertaking (PSU) involved in the production of steel, operates Rourkela Steel Plant in Odisha and

was taken up for expansion during the 11th and 12th five year plan. Before expansion, the hot metal, saleable steel and crude steel producing

capacity of the steel plant was 2 million tonnes, 1.67 million tonnes and 1.9 million tonnes, respectively. After the expansion of steel plant,

production capacity of hot metal, saleable steel and crude steel has reached 4.5 million tonnes, 3.9 million tonnes and 4.2 million tonnes,

respectively.

Moreover, during 2016-17, Rourkela Steel Plant produced a record 2.76 million tonnes of steel. Production of crude steel, saleable steel and sinter

was 2.9 million tonnes, 2.74 million tonnes and 5.27 million tonnes respectively

Odisha has substantial reserves of other minerals that go into steel making such as coal, dolomite and limestone.

In addition, there are abundant water resources, adequate power, a reasonably good road and rail connectivity and port facilities at Paradip,

Gopalpur and Behrabalpur (Baleshwar).

Iron ore (hematite) is found in Dhenkanal, Jajpur, Keonjhar, Koraput, Mayurbhanj, Sambalpur & Sundergarh districts and iron ore (magnetite)

occurs in Mayurbhanj district in the state.

As per state budget 2016-17, for building steel bailey bridges across the remote areas of IAP districts, an allocation of US$ 10.69 million has been

proposed by Government of Odisha during 2016-17.

JSW Steel Ltd. of Jindal Group decided to setup a steel project in Jagatsinghpur district in March 2017. In November 2017, Ministry of

Environment, Forest and Climate Change (MOEFCC) gave clearance to JSW Steel for setting up a 13.2 MTPA mega steel plant cum captive

power plant. The company is planning an investment of US$ 7.8 billion which is expected to create 50,000 jobs.

Source: Economic Survey of Odisha, State Budget 2016-17, MTPA: Million tonnes per annum



… (2/3)

Producer Product mix

Ispat Alloys, Balasore Ferro Manganese, Ferro Chrome

Indian Charge Chrome Ltd., Chandwar Charge Chrome, Ferro Chrome

Ferro Alloy Corp. Ltd., Balasore Charge Chrome, H.C. Ferro Chrome

Indian Metals & Ferro AlloysLtd.,Rayagara, Karatpur Ferro Chome, Charge Chrome,Ferro Silicon

Tata Steel Ferro Alloy Plant, Bamnipar, Kendujhar H. C. Ferro Chrome, Charge Chrome

Tata Steel Ferro Alloy Plant, Rawmet H. C. Ferro Chrome

Tata Steel Ferro Alloy Plant Goda Silico Manganese, Ferro Manganese

Ferro Chrome Ltd Ferro Chrome

Jeypur Sugar Ltd, Jeypur, Ferro Chrome

Source: News articles

Key ferro-alloy industries in Odisha



… (3/3)

Tata Steel

POSCO India Pvt Ltd

Visa Steel Ltd

Visa Steel Ltd is a subsidiary of VISA Infrastructure Ltd. It produces pig iron, coke and chrome ore. In 2016-17, the company

recorded consolidated revenues of US$ 235.01 million. It has two manufacturing facilities in Odisha. The plant at Kalinganagar

has an annual production capacity of 225,000 tonnes of pig iron, 400,000 tonnes of coke, 50,000 tonnes of ferro-chrome and

300,000 tonnes of sponge iron. The other plant is in Golagaon, with a chrome-ore beneficiation and grinding plant, each with a

capacity of 100,000 tonnes per annum. The company is operating a 0.5 million ton per annum (TPA) special steel plant at

Kalinganagar industrial complex.

Established in 1907, Tata Steel is Asia's first and one of India's largest private sector steel companies. The consolidated

revenue of the company for 2016-17 was recorded to be US$ 16.82 billion.

It is amongst the lowest-cost producers of steel in the world and one of the few select steel companies in the world that have

a positive Economic Value Added (EVA+). The company has a crude-steel production capacity of over 30 MTPA. It has set up

a new subsidiary, Tata Steel Odisha to lead a new steel plant costing US$ 7.3 billion in Kalinganagar (Jajpur district) and was

inaugurated in November 2015. The company plans to expand its production capacity to 16 million tonnes by 2025.

A subsidiary of the Korean company POSCO, which is among the world’s top five steel producers, The multi-product SEZ of

the company has been approved in principle. The plant’s first phase will be completed in 2016-17 and is estimated to cost US$

12 billion. It will manufacture hot-rolled products and slabs.

Key players

Essar Steel

Essar Steel is a global producer of steel and is present in India, Canada, the US, Middle East and Asia. It has a capacity of

14.2 million tonnes per annum (MTPA) of steel. It is making significant investments in setting up steel plants across the world.

In 2014, company established a 12 MTPA integrated steel plant at Paradip in Odisha .


KEY INDUSTRIES – ALUMINIUM … (1/2)

Odisha ranks first in India in terms of both production capacity and

actual output of aluminium.

Odisha is considered to be the aluminium capital of India and is an

ideal location for setting up aluminium and aluminum-based

companies due to the presence of more than half of the country’s

bauxite reserves, in the state, and presence of Vedanta, Hindalco

and NALCO in Odisha. Bauxite production in the state increased

from 10.84 million tonnes in 2015-16 to 11.99 million tonnes in 2016-

17. Bauxite production during April-September 2017 stood at 6.0

million tonnes.

It also has adequate water and power supply for such industries.

A new aluminum park is going to be set up at Angul in Odisha. The

park will entail an investment of US$ 27.99 million and will come up

over an area of 223 acres. It is expected that the park will create

15,000 job opportunities.

India’s aluminum major, NALCO, is planning to set up two joint

ventures (JVs) at this upcoming aluminium park. The two JVs will

manufacture special grade aluminium to be used in metro trains, e-

vehicles, aerospace and automobile sector,

In January 2018, the state government has given approval for five

investment proposals including two Angul Aluminium Park worth Rs

328 crore (US$ 50.66 million). Also the project has received the

clearance of State Level Single Window Clearance Authority

(SLSWCA).

Bauxite 7.83

Alumina 2.10

Source: Indian Bureau of Mines, NALCO: National Aluminium Company Limited,1Up to December, 2014

Bauxite and Alumina production by NALCO (million tonnes)

(2017-181)

Note: 2017-181 – Up to November 2017


KEY INDUSTRIES – ALUMINIUM … (2/2)

National Aluminium Co

Ltd (NALCO)

Hindalco Industries

Ltd (HIL)

Vedanta Group

Vedanta Resources plc, the London-based holding company of the Sterlite group, is a key player in the aluminium

industry in India. The company recorded revenues of US$ 3.79 billion during the third quarter of 2017-18.

Vedanta operates several bauxite mines. It produces aluminium from its Bharat Aluminium Company Limited

(BALCO) and Madras Aluminium Company Limited (MALCO). The company operates its aluminium refinery at

Lanjigarh in Kalahandi. The company also commissioned a red mud powder plant at the refinery. It has a capacity

of 1 MTPA and is in process of 1.5 MTPA aluminium smelter expansion at Jharsuguda. Work has also

commenced on its US$ 8.4 billion Aluminium project in Niyamgiri in Odisha.

NALCO is among Asia's largest and one of the world's leading integrated aluminium complexes. Its operations

include bauxite mining, alumina refining, aluminium smelting and casting, power generation, rail and port

management. The company recorded revenues of US$ 371.57 million in the third quarter of 2017-18.

It employs some of the world’s finest technologies used in the aluminium industry. In 2014, NALCO established an

aluminium park in Angul in a joint venture with IDCO.

Hindalco Industries Ltd recorded consolidated revenues of US$ 1.71 billion during the third quarter of 2017-18.

HIL is owned by the Aditya Birla Group and is among the world's largest aluminium rolling companies and one of

the biggest producers of primary aluminium in Asia. It acquired the Indian Aluminium Company Limited (Indal) in

2000. HIL produces 161,400 tonnes per annum (TPA) of aluminium from its plant at Hirakud

Key players


KEY INDUSTRIES – SSI, HANDICRAFT AND COTTAGE

INDUSTRIES … (1/2)

Odisha’s SSI is characterised by low capital investment requirement,

low gestation periods, high value addition and high export promotion

prospects.

The Odisha State Cooperative Handicrafts Corporation is engaged in

strengthening the production base, enlarging marketing

opportunities, encouraging exporters and introducing new designs

and technology in the handicrafts sector. According to state budget

2017-18, an amount of US$ 32.39 million has been proposed for

various schemes under the handloom, textile and handicrafts sectors

in the state.

The cottage industry in Odisha is involved in paddy processing,

cashew nut processing, stone carving, beekeeping and wood

carving. In addition, spices, pulses as well as brass and bell metal

products are produced by the KVIC in Odisha. During 2016-17, 136

thousand hectares of area was under cotton production, while the

yield of cotton in the state was recorded to be 375 kg per hectare.

The state government also proposed a new scheme called Baristha

Bunakar Sahayata Yojana has been formulated with provision of US$

0.77 millions for rewarding the weavers of the state for their

uninterrupted services rendered in keeping the heritage of art & craft

of Odisha alive.

Training Center Location

Multi Disciplinary Training Centre Bhubaneswar

Sambalpur Silk & Gramodyog Samiti, National

Rural Resource Education & Training Centre Deogarh

Source: Economic Survey of Odisha

Training Centres controlled by Khadi and Village Industries

Commission (KVIC) in Odisha


KEY INDUSTRIES – SSI, HANDICRAFT AND COTTAGE


Handloom Marketing Assistance (HMA) 360.09

Ambedkar Hastshilp Vikas Yojna (AHVY) 22.66

Marketing Support and Services (MSS)

Scheme 24.45

Design 58.86

Source: Ministry of Textiles, Government of India

Financial assistance to handloom weavers (in US$ million)

1.15

0.45

0.10

0.57

0.00

0.20

0.40

0.60

0.80

1.00

1.20

2012-13 2013-14 2014-15 2015-16

Funds released under National Handloom Development

Programme (2016-17) – US$ ‘000

Funds sanctioned for Handicrafts (2016-17)- US$ ‘000


KEY INDUSTRIES – AGRICULTURE AND FERTILISER


Odisha's main agriculture products are rice, pulses, oilseeds,

vegetables, groundnut, cotton, jute, coconut, spices, sugarcane,

potato and fruits. There is a vast scope for agro-based industries for

rice, lentils, edible oil-milling, dehydration of vegetables, maize-

milling, cattle and poultry rearing, cotton oil, potato chips, coconut oil,

sugar mills, mushroom cultivation, non-edible oils and others.

As per budget 2017-18, an amount of US$ 626.54 million has been

allocated to the Department of Agriculture and Farmers’

Empowerment during 2017-18. Further, for increasing the supply of

fertilizers in the state, a new scheme-“Grant to State procurement

agencies” is being planned for providing financial support to

procurement agencies, in order to fulfil their handling charges.

Moreover, the state government has also decided to launch a new

agri start-up programme in 2016-17, for supporting the efforts being

implemented for the endorsement of agri-entrepreneurship across

the state, as per budget 2016-17 of Odisha.

As per budget 2017-18, an amount of US$ 24.05 million has been

allocated to the Integrated Watershed Management Programme.

The government has taken initiative for strong agricultural extension

system which will enable delivery of appropriate technology and

improved agronomic practices to the farmers. National Mission on

Agriculture Extension and Technology with an outlay of US$29.7

millions and the Farm Mechanisation Programme of the State

Government with an outlay of US$51.99 million will cater to these

objectives .

Fertilizer Requirement Availability Sales

Urea 660 610 587

DAP 240 172 164

MOP 160 89 89

NPK 380 267 252

Requirement, availability and sales of fertilizers in Odisha

(‘000 MT) (2015-16)

Source: Requirement, availability and sales of fertilizers in Odisha (‘000 MT) (2015-16), State budget 2017-18




Fertilizer Districts Covered Crops

North-Western

Plateau Sundargarh, Deogarh

Rice, Greengram, Blackgram, Arhar, Horsegram, Groundnut, Mustard, Wheat, Potato,

Sweet potato, Vegetables, Mango, Banana, Citrus, Litchi, Guava and Papaya.

North-Central

Plateau

Mayurbhanj, Keonjhar

(Except Anandapur)

Rice, Wheat, Arhar, Greengram, Blackgram, Horsegram, Groundnut, Linseed, Mustard,

Mesta, Niger, Sweet potato, Potato, Chilli, Turmeric, Ginger, Vegetables, Mango, Banana,

Citrus, Pineapple and Sapota.

North-Eastern

Coastal Plains

Balasore, Bhadrak,

Jajpur (Except Sukinda),

(Anandapur)

Rice, Greengram, Blackgram, Mustard, Groundnut, Jute, Sweet potato, Potato, Chilli,

Vegetables, Mango, Banana, Papaya, Guava, Coconut.

East & South

Coastal Plains

Cuttack (Part),

Kendrapara,Jagatsinghpur, Puri,

Ganjam (Part), Khurda,

Nayagarh

Rice, Maize, Greengram, Blackgram, Jute, Groundnut, Mustard, Sesamum, Horsegram,

Vegetables, Potato, Sugarcane, Chilli, Mango, Banana, Coconut, Guava, Citrus, Cashew.

North-Eastern

Ghats

Ganjam (Part), Gajapati,

Rayagada, Kandhamal,

Boudh

Rice, Maize, Jowar, Ragi, Sugarcane, Horsegram, Greengram, Cotton,

Blackgram, Mustard, Niger, Groundnut, Turmeric, Mesta, Sweet potato,

Chilli, Ginger, Vegetables, Mango, Jack fruit, Citrus, Pineapple, Sapota,

Coconut.

Eastern Ghats

Highland

Nawarangpur (Part),

Koraput (Part)

Rice, Maize, Ragi, Jowar, Small millets, Horsegram, Castor, Arhar,

Gram, Groundnut, Mustard, Cotton, Mesta, Turmeric, Ginger, Sweet

potato, Vegetables, Mango, Jack fruit, Guava, Ber, Cashew.


Agro Climatic Zone




Fertilizer Districts Covered Crops

South Eastern

Ghats Malkangiri, Koraput (Part)

Rice, maize, ragi, horsegram, wheat, blackgram, greengram, Groundnut, niger, sesamum,

mesta, sweet potato, pea, chilli, Vegetables, ginger, mango, banana, guava, ber,

pineapple, cashew.

Western

Undulating

Lands

Kalahandi, Nuapada,

Nawarangpur (Dabugaon)

Rice, maize, wheat, jowar, arhar, greengram, blackgram, horsegram, Gram, groundnut,

mustard, cotton, sugarcane, vegetables, lathyrus, Onion, mango, papaya, guava, banana.

Western

Central Table

Lands

Bargarh, Subarnapur,

Bolangir, Sambalpur,

Jharsuguda

Rice, wheat, arhar, greengram, blackgram, horsegram, gram, Groundnut, mustard, mesta,

sugarcane, chilli, potato, vegetables, Mango, banana, guava, ber, cashew.

Mid Central

Table Lands

Dhenkanal, Angul, Cuttack

(Part)

& Sunkinda

Rice, maize, greengram, blackgram, arhar, sesamum, groundnut, Mustard, onion,

vegetables, sugarcane, chilli, mango, litchi, citrus, Guava, sapota, pineapple.

Agro Climatic Zone





Sakthi Sugars Ltd

Aska Cooperative Sugar

Industries Ltd

paradip Phosphates

Ltd (PPL)

PPL was incorporated in 1981 as a joint venture between Adventz group company, Zuari Agro Chemicals Ltd and

Maroc Phosphore SA. It is a prime player in the phosphoric fertilisers space. These fertilisers have applications for

a wide range of crops. It has a di-ammonium phosphate (DAP) plant in paradip, which had an annual capacity of

720,000 tonnes. In 2014-15, the quantity of DAP manufactured by the company stood at 573.9 thousand metric

tonnes. The quantity of DAP manufactured by the company during April-June 2015 stood at 108.4 thousand metric

tonnes.

The company was established in the year 1961 and has a average capacity to crush 19,000 tonnes of sugarcane

a day. The company has four crushing units, three units are located in Tamil Nadu while one in Dhenkanal district.

The Odisha plant has sugarcane processing capacity of 2500 tonnes per day. The company recorded annual

sales of US$ 58.02 million during the first three quarters of 2017-18.

The company was established in the year 1963. Its plant is located in Aska town of the Ganjam district in Odisha,

170 km from Bhubaneswar. The cooperative employs 900 people and provides livelihood to 20,000 sugarcane

growers in the area. Presently, the plant has a crushing capacity of 2,500 tonnes per day. The plant also has a

distillery and an ancillary unit with a capacity to produce 10,000 bulk litres of rectified spirit per day by utilizing

molasses.

Indian Farmers Fertiliser

Cooperative (IFFCO)

IFFCO produces and distributes fertilizers to farmers and member co-operatives in India. Its products include urea

and fertilisers, indigenous seeds and chemicals. The revenue of the company was US$ 3.37 billion in

2016-17.

Key players


KEY INDUSTRIES – MINING … (1/3)

District Major mineral

Koraput Bauxite, chinaclay, dolomite, limestone, mica,

quartz

Mayurbhanj

Asbestos, fireclay, chinaclay, iron ore, kyanite,

quartzite, soapstone, talc, base metal (lead and

copper), coal, dolomite, manganese, nickel ore,

vanadiferous/ magnetite, gold.

Malkangiri Limestone, tin ore, quartz

Nabarangapur Chinaclay, iron ore

Rayagada Bauxite, graphite, manganese, quartz

Sundergarh Lead, copper, coal, dolomite, fireclay, iron ore,

limestone, manganese, quartz, bauxite

Sambalpur Coal, base metal (lead and copper), chinaclay,

fireclay

Keonjhar

Asbestos, pyroxenite, iron ore, chromite,

chinaclay, pyrophyllite, manganese, gold,

dolomite, limestone, quartzite, quartz

Kadhamal Graphite

Balasore Vanadiferous/magnetite

Mineral 2015-16 2016-17

Bauxite (tonnes) 10,839,542 11,914,000

Chromite (tonnes) 3,102,940 4,129,711

Iron ore (thousand

tonnes) 80,866,243 102,663,381

Manganese ore

(tonnes) 425,271 627,613

Dolomite (tonnes) 1,035,242 1,249,995

Coal (tonnes) 138,580,000 139,208,000

Graphite (tonnes) 17,643 20,156

Limestone

(thousand tonnes) 4,524,561 4,762,094

Pyrophyllite

(tonnes) 4,490 0

Quartzite (tonnes) 50,084 48,360

Silica Sand

(tonnes) 421 0

Source: Ministry of Mines, Government of India

Mineral reserves by districts



Odisha is one of India’s richest states in terms of mineral reserves.

The mineral belt is spread over an area of more than 6000 sq km.

Moreover, the state accounts for more than 35% of total iron ore

resources of the country. The key minerals found in the state are

iron, coal, bauxite, manganese, nickel, chromite, limestone, dolomite,

graphite, decorative stones, beach sand, china clay, tin ore, etc.

In January 2017, NTPC's board approved an investment of over US$

156.63 million for Dulanga coal mining project at in Odisha, for an

estimated production capacity of 7 million tonnes per annum (MTPA).

Year Production (thousand tonnes)

2010-11 111,094

2011-12 105,120

2012-13 109,679

2013-14 108,175

2014-15 121,101

2015-16 138,580

2016-17 139,920

Mineral revenue in Odisha (US$ million)

18

2.3

7

20

7.4

8

27

9.6

3

29

9.2

2

42

6.1

3

73

0.0

5

97

8.3

8

1,0

45

.73

91

5.6

6

88

5.0

4

88

5.7

3

76

5.3

6

0

100

200

300

400

500

600

700

800

900

1,000

1,100

200

5-0

6

200

6-0

7

200

7-0

8

200

8-0

9

200

9-1

0

201

0-1

1

201

1-1

2

201

2-1

3

201

3-1

4

201

4-1

5

201

5-1

6

201

6-1

7

Source: Ministry of Mines, Government of India, Department of Steel & Mines, Government of Odisha

Coal production in Odisha – thousand tonnes

As of February 2018, Essel group has been given permission to

restart its mining operation at Jilling and Koira mines.

State-owned mining entity Odisha Mining Corporation (OMC) has

shown keen interest to hold its first ever national e-auctions for

bauxite, and is about to conduct the auction on the MSTC platform in

April.



Orissa Mining

Corporation Ltd

Mahanadi Coalfields

Ltd (MCL)

Rungta Mines Ltd

Rungta Mines Limited is the flagship company of the S R Rungta Group. The company specialises in mining iron-

ore and manganese ore. it is also involved in mining of limestone, dolomite, fireclay and bauxite. In August 2009,

the company announced plans to set up a one million tonne cement plant in Odisha, which will involve an

investment of US$ 126.5 million.

OMC was established in 1956 to explore and harness the mineral wealth of Odisha. In 1961, it became a state-

owned corporation of the Government of Odisha. OMC has reserves of around 654.9 million tonnes of iron ore, 6.3

million tonnes of manganese-ore, 25.3 million tonnes of chromite, 19.6 million tonnes of limestone and other

minerals. OMC has 35 mining leases (chromite - 11, iron - 11, iron & manganese - 5, manganese - 3, limestone - 1

and gemstone - 4).

MCL is a subsidiary of Coal India Limited and was formed in April 1992. It has two coalfields at Talcher & IB Valley

in Odisha. The total raw coal production at MCL in 2014-15 was 121.37 million tonnes which increased to 139.21

million tonnes in 2016-17. The company employs around 22,036 people.

Ferro Alloys Corp Ltd

(FACOR)

Founded in 1955, FACOR is one of the largest producers and exporters of high-carbon ferro-chrome and charge-

chrome in the world. The company has a large chrome ore mining complex in Bhadrak, which has the capacity to

produce 65,000 tonnes per annum of charge-chrome and 250,000 tonnes per annum of chrome ore. It recorded

revenues of US$ 92.00 million in 2016-17.

Key players


KEY INDUSTRIES – IT/ITeS AND ELECTRONICS … (1/2)

The IT sector is dominated by over 300 SMEs. The sector employs around 12,000 software professionals. In order to attract ICT investments, the

centre is considering a mega project in BhubaNeswar, Odisha.

The state has an ample talent pool to cater to the needs of this industry. It produces 40,000 technical & management professionals & 50,000

Documents

ODISHA - IBEF · 2018. 3. 27. · 3 ODISHA For updated information, please visit EXECUTIVE SUMMARY … (1/2) Source: Economic Survey of Odisha, CAGR – Compound Annual Growth Rate;