Emerging East: Orissa’s Turn Around MP Mr. Baijayant Panda and Professor Chitta Baral Arizona...

Emerging East: Orissa’s Turn Around

MP Mr. Baijayant Panda

and

Professor Chitta Baral

Arizona State University

[email protected]

ORISSA

Structure of PresentationStructure of Presentation

• Orissa’s vision

• Competitive advantages

• Orissa – the State on path of progress

• Human Resources Development

• Infrastructure

• Opportunity Orissa

State at a GlanceState at a Glance

• Capital – Bhubaneswar

• Area – 1,55,707 square kilometers – Same as NY + CT

• Population 2001 – 36,804,660 – Same as the population of CA in 2006

• Major industries – Steel, Aluminum, Power, Cement, Mineral-based, Paper, Higher Education

• Connectivity– Air: Bhubaneswar

– Roads: A leg of the Golden Quadrilateral passes through it

– Rail: Howrah –Chennai and Howrah – Mumbai

– Major Port: Paradeep

Vision of Orissa

““To usher in balanced socio-economic To usher in balanced socio-economic growth of Orissa that hinges on growth of Orissa that hinges on sustainable development with strong sustainable development with strong fundamentals of industrial growth, right fundamentals of industrial growth, right harnessing of natural resources and harnessing of natural resources and actualization of employment potential.”actualization of employment potential.”

Shri Naveen PatnaikShri Naveen Patnaik HonourableHonourable Chief MinisterChief Minister OrissaOrissa

Did you know this about Orissa?


The making of a knowledge hub in Bhubaneswar• Institutes aspiring to be an MIT (IIT Bhubaneswar), a Cal Tech

(NISER Bhubaneswar), a Berkeley (NU Bhubaneswar) and a Stanford (Vedanta University Puri) are currently being built in the Bhubaneswar-Puri area of Orissa.

• Part of the Government of India’s 11th plan initiative of 8 new IITs, Six science institutes and 14 National Universities– No other metropolitan area in India is currently scheduled to

have more than two; Bhubaneswar will have all three• NISER Bhubaneswar: 2nd batch started this year• IIT Bhubaneswar: 1st batch started this year

– Vedanta University in Puri – a $3 billion university with a $1 billion initial pledge from Mr. Anil Agarwal

• 10 existing universities, 15 more being made; 39 existing engineering colleges, 12 more in pipeline; 15+ existing colleges (some offering graduate degrees)


The making of a transportation “channel”! • Ports (existing and in pipeline)

– Paradeep

– Dhamara

– Gopalpur

– Kirtania

– Jatadhari (for POSCO)

– Astaranga, Puri

– Bahuda Muhana, Ganjam

– Baliharchandi, Puri

– Barunei, Kendrapada

– Chudamani, Bhadrakh

– Inchudi, Balasore

– Palur, Ganjam

• National waterway 5

Emerging PortsEmerging Ports

Dhamra Gopalpur

Developers Tata Steel and Larsen & Toubro

Orissa Stevedores and Noble Shipping (Hong Kong)

Capacity 80 mtpa (13 mtpa by 2008)

30 mtpa (10 mtpa by 2009)

Berths 13 6

Channel 18 metres 13.5 metres

Vessels Cape size Panamax

COAL

Mineral%

Reserve

Iron Ore 34%

Bauxite 63%

Nickel 95%

Chromite 98%

Coal 24%

Mineral sand

32%

Graphite 77%

Power TariffPower TariffState Industrial Power Tariff (Rs./

KWH)

Orissa 2.90

West Bengal 3.50

Jharkhand 3.20

Andhra Pradesh 3.80

Kerala 3.50

Gujarat 4.00

Maharashtra 5.00

Haryana 4.00

• Orissa is a power surplus State

• Orissa has successfully carried out power sector reforms - Distribution privatised

Density of RoadsDensity of Roads

• Road length per 1,000 square kilometre of area

1991-92 2002

Orissa 1,260 1,522

Andhra Pradesh 553 713

Chhattisgarh 321 262

Jharkhand 492 144

West Bengal 700 1,037

India 615 776

• Source: Planning Commission, Statistical Abstract of India

Number of Strikes & LockoutsNumber of Strikes & Lockouts• Number of strikes & lockouts (2002)

Strikes Lockouts Number of mandays lost due to

industrial disputes 2001

Orissa 7 - 32,676

Andhra Pradesh 30 30 10,48,457

Jharkhand 4 - -

West Bengal 21 172 1,48,16,437

All India State Average

8 8 10,74,931

• Source: Indian Labour Year Book, Labour Bureau, Ministry of Labour, GoI, 2002

• Industrial Disputes in India, 2001

Competitive AdvantagesCompetitive Advantages

In a globalised scenario, Orissa has drawn attention of investors with strengths:

Natural• Rich mineral resources (*)• Coastline – gateway to SE Asian & Far Eastern markets• Adequate fresh water available for industrial use

– About 10% of India’s utilizable water (surface & ground): 108.147 Billion Cubic Meters.

• Discovery of natural gas off the coast

Institutional• Positive investment climate & single window industrial

facilitation by Team Orissa (*)• Proactive policy framework for developing key

economic sectors and for infrastructure buildup


Developmental• Land contiguous to ports available for industries• Surplus quality power at most competitive rate (*)• Part of the mainline national rail and road grid

Economic• Low cost labour and availability of skilled workforce• Predominance of organised industrial activity (*)

Infrastructural • Major port at Paradeep moving 50 mtpa• 90 industrial parks / growth centres (9000 hectares)• Seamless connectivity by rail & road• Highest density of roads in eastern India (*)


Investor Investor friendly policiesfriendly policies

Investor Investor friendly policiesfriendly policies

Port facilityPort facilityPort facilityPort facility

Mineral Mineral resources resources

in proximityin proximity

Mineral Mineral resources resources

in proximityin proximity

Plentiful Plentiful waterwater

Plentiful Plentiful waterwater

Land bankLand bankLand bankLand bank

Rail connectivityRail connectivityRail connectivityRail connectivity

CompetitiveCompetitivepower tariff power tariff CompetitiveCompetitivepower tariff power tariff

Skilled Skilled manpower manpower

Skilled Skilled manpower manpower

Government Government facilitationfacilitation

Government Government facilitationfacilitation

Road networkRoad networkRoad networkRoad network

Lowest cost producer Lowest cost producer of Steel / Aluminaof Steel / Alumina

Lowest cost producer Lowest cost producer of Steel / Aluminaof Steel / Alumina

Orissa - The state on the move…Developments during the last three years

Metal Sector

• Preferred destination for Foreign & Domestic Investors

• 45 projects for over 70 mtpa of Steel (28 plants partly commissioned). More than US$45 Bn investment

• 4 new aluminum complexes with more than 4 mtpa alumina and 1 mtpa aluminum smelter capacity under implementation (US$ 10 Bn)

• Rare earth projects through FDI mode (US$ 0.50 Bn)

• Major investors in the metal sector - POSCO, Arcelor-Mittal, Tata Steel, Bhusan, Jindal, Essar, Aarti, Hindalco, Vedanta, L&T – Dubai Aluminium, etc

Rourkela Steel Plant

Workshop


Chemical & Petrochemical

• 15 mtpa mega petrochemical complex by IOC (US$ 6Bn)

• Deepak Fertilizers implementing 2 chemical projects at Paradeep

• Mega Petroleum, Chemicals & Petrochemicals Investment Region (PCPIR) under development in Paradeep area (284 Square kilometres)

Cement• 5 mtpa capacity addition utilising

flyash & blast furnace slag ($0.50 Bn)

Chemicals

Petrochemicals


Energy and Power

• 13 Thermal Power Projects under implementation with capacity of 13,500 MW (US$ 11 Bn)

• Major names include Tata Power, Reliance Energy, Sterlite Energy, Mahanadi Aban, Monnet Ispat, Essar Power, Lanco Group, NavBharat Power, CESC and GMR Energy

• Project by Reliance Industries Limited for hydrocarbon based power generation & gas grid (US$ 1.5Bn)

• Various Mini-Hydel projects with a combined capacity of 200 MW

• Non-conventional projects with 100 MW

Energy & Power

Power Sector


Special Projects• Mega shipbuilding & repair yard at Dhamra ($

0.6 Bn)

• Auto components park by RSB

Tourism• 5.3 million tourists visited Orissa in 2006

(growth rate >13%)

• Foreign tourists 40,000 (growth rate 17%)

• Hospitality sector investments by some of the most respected hotel chains

• Special Tourism Area (STA) near Puri spread over 1000 acres already under implementation

• Infrastructure upgradation projects in the Buddhist and beach-based circuits

Exotic Beach at Puri

NALCO


Mega Infrastructure Projects

• Development of industrial, economic & social infrastructure in steel & mining corridors

• Major expansion of Paradeep Port underway

• 12 SEZs including 4 IT SEZs approved by GoI

• 4 new ports (US$ 2Bn) at Dhamra, Gopalpur, Jatadhari Muhana and Kirtania in progress and more being explored on 480 km long coast line of the state

• Bio-pharma Park in Bhubaneswar through PPP

• Integrated Textiles Parks at Choudwar

• Auto complex at Choudwar (*)

• Extensive rural electrification programmes

• Bhubaneswar Airport modernization

• International Convention Centre at Bhubaneswar

Infocity, Bhubaneswar

Paradeep Port


Information Technology Sector

• Software exports in excess of US$ 175 mn during 2006 - 07

• Orissa emerging as an IT / ITES powerhouse with presence of Infosys, Satyam, Wipro, TCS, Mindtree, ICICI Bank, Genpact (200,000 software professionals by 2015)

• SMEs: More than 300 units and 12000 software professionals engaged in the state

• Group of investors from Silicon Valley setting up 5000 seater IT/ITES facility

• Target of exporting software to the tune of US $ 1000 mn by 2011-12

• Integrated IT City over 500 acres underway

Satyam Campus, Bhubaneswar

Infosys Campus, Bhubaneswar

Recent FDI projects in OrissaRecent FDI projects in Orissa

• Largest FDI of US$12 Bn by Largest FDI of US$12 Bn by Korean Steel Giant POSCO in steel Korean Steel Giant POSCO in steel sectorsector

• Other big FDI projects:Other big FDI projects:

SteelSteel Arcelor-MittalArcelor-Mittal

Alumina / Alumina / AluminiumAluminium

Dubai Aluminium, Alcan, Dubai Aluminium, Alcan, VedantaVedanta

Titanium Titanium ProductsProducts

JSC Technochim Holding JSC Technochim Holding (Russia)(Russia)

LimeLime Lhoist (Belgium)Lhoist (Belgium)

PortsPorts Noble Shipping (Hong Kong)Noble Shipping (Hong Kong)

Industrial Industrial GasGas

Air Liquide (France)Air Liquide (France)

Biju Patnaik International Airport

Nine hole Golf Course at Infocity

InfrastructureInfrastructureROADS & RAILWAYSROADS & RAILWAYS

• Monitoring by Prime Minister’s office of priority infrastructure projects catering to the steel and mines corridor

• Over $ 5 Bn investment in road sector in next 5 years

• About $ 1.5 Bn investment in railways in next 5 years

• Massive urban infrastructure upgradation through national level programmes

• Investment through public funding and private participation

Road in PPP mode

XIM, Bhubaneswar

Cement Consumption per capita in Kg 2005

Orissa 101.26

Andhra 97.67

Chhattisgarh 92.16

Jharkhand 80.05

West Bengal 73.73• Source: Indiastat

SUNDARGARH

B A R A G A R H

B A L A N G I R

NUAPARHA

NABARANGAPUR

KALAHANDI

DHENKANAL

SAMBALPUR

JHARSUGUDA

MALKANGIRI

KORAPUT

RAYAGARHAGAJAPATI

GANJAM

KANDHAMAL

CUTTACK

KHURDA

S O N E P U R

B O U D H

NAYAGARH

A N U G U L

DEOGARH

MAYURBHANJ

BALESHWAR

P U R I

JAGATSINGHPUR

KENDRAPARA

BHADRAK

Rourkela

BHUBANESWAR

RAJ AMUNDA

KENDUJHAR

Kanaktora

Chitrakonda

Balimela

Malkangiri

SunabedaDamanjori

Koraput

PANIKOI LI

Udala

Karanjia

Nilagiri

Basudebpur

Soro

Anandapur

Athargarh

Chaudwar

Parsala

Balugan

KhallikotAsika

Gunupur

Junagarh

Nabarangapur

Bhawanipatna

Sambalpur

J HARSUGUDA

Sundargarh

Deogarh

Boudh

Balangir

Phulabani

Chhatrapur

BrahmapurDigapahandi

Nayagarh

Puri

Jagatsinghpur

Kendraparha

Jajpur

Cuttack

Bhadrak

Baleshwar

Baripada

KEONJ HAR

Sonepur

Bhanjanagar

Dhenkanal

Rayagarha

Kantabanji

ANUGUL

Dashapalla

Khandaparha

Kantilo

Rairangapur

Jaypore

Umarkot

Nuaparha

Padmapur

Barpali

Burla

Binika

Redhakhol

Sarapali

Jamankira

Bhojpur

Biramitrapur

Panposh

Gorakhapur

Kashipur Gurbari

J K Pur

Daringbarhi

Nisha

Chhendipada

Ambani

Ganjam

MANGULI

Hindola

Chikiti

Jaleswar

Patamundai

Paradwip Port

BhubanKamakhyanagar

Pala Laharha

BARAKOT

Banei

Dhenkikot

Barbil

Mankamanacha

Nuapatna

Banki

Chandragiri

Lanjigarh

Kesinga

Titlagarh

Patnagarh

BrajarajnagarKUCHINDA

Hirakud

Banapur

Khurda

Paralakhemundi

JAJPUR

Gopalapur

LEGEND

DISTRICT BOUNDARY...............

VI S A K H A P A T N A M

F J N B NJF

G K O C G K O

H HL L PP D

E I E IM A

F J N B

G K O

64 73

65 74

NF

NE

44 45

NF

NEBAY OF BENGAL

INDEX TO 1:2,50,000 SHEETS

44 45

Talcher

G.Udaygiri

STATE BOUNDARY................

NATIONAL HIGHWAY........

Motu

ChordaDuburi 12

Dangadi

Brahmani Rd.

3

4

11

Bramanipal

5

Bamberi

7Bamshapani

Bhadrasahi

6

KoiraTensa 9

Kalunga

12

8

10

13

SH. .......

MDR ..............EXPRESS WAY .........ODR ..............

INDUSTRIAL HUB .........

MINNING HUB .........

NH-6

NH

-201

NH-200

EXISTING NH...............

RAI PUR

GUM

LA

Motu

Daitari

Chandikhol

Bargarh

Zone I

Zone III

Zone VI GOPALPUR PORT

PARADEEP PORT

DHAMRA PORT

Zone II

Zone IV

Zone V

Circle I Steel, Power, IT, Tourism & PortsZone III Mining, Power, SteelZone VI Alumina

INDUSTRIAL ZONES AND BIG PORTSINDUSTRIAL ZONES AND BIG PORTS

KIRTANIA PORT

State Capital-Bhubaneswar

Quality of Life

• Bhubaneswar is the 2nd planned city in the country and is the safest and most economical Capital in the country making it very popular with the young masses in Eastern India (*)

• Well connected to major cities in the country

• Among 5 fastest growing cities in real estate

• Pollution free environment with very pleasant and comfortable living conditions

• Excellent residential, recreation and entertainment facilities

• Top quality schools & colleges

• Large multidisciplinary hospitals by AIIMS & Apollo; Specialty Centres for cancer, heart, eye, diabetic research, spinal injury and trauma care

• Fascinating weekend getaways, pristine beaches, exotic flora & fauna and wildlife sanctuaries, at proximity

Shopping Malls

Hotel Swosti Plaza, Bhubaneswar

Well planned Residential Complexs

Bhubaneswar-Puri area as a knowledge hub: soon to have 25 universities

Existing Universities

• IIT Bhubaneswar

• NISER Bhubaneswar

• Utkal University

• Orissa U of Agriculture and Tech.

• Ravenshaw University

• IIIT Bhubaneswar

• Utkal Univ. of Culture

• Sri Jagannath University

• KIIT deemed University

• SOA deemed University

• 39 additional four year engineering colleges, some with graduate programs

• 30+ Colleges offering Bachelors in non engineering subjects (some offering graduate programs)

Upcoming universities

• Vedanta University

• National University (WCCU)

• AIIMS Bhubaneswar

• National Law University

• Sri Sri University

• ICFAI University

• Jagadguru Kripalu University

• Orissa open university

• National Institute of Design (?)

• 6 deemed university applications in pipeline

• 12 four year engineering colleges

Vedanta University Master Plan (Ayers St. Gross designed): For 100,000 students and 500,000 city residents Plan

Academic

Housing

Administration

Library

Student Union

Performing Arts

Recreation

Vedanta University Plan Master Plan\

Building Uses

ResearchResearch

Liberal ArtsLiberal Arts

ClassicsClassics

JournalismJournalism

ArchitectureArchitecture

FacilitiesFacilities

HumanitiesHumanities

EducationEducation

Arts + MusicArts + Music

Professional StudiesProfessional Studies

Performing ArtsPerforming Arts

International StudiesInternational Studies

RecreationRecreation

LibraryLibrary

Health ScienceHealth Science

EngineeringEngineering

BioscienceBioscience

SciencesSciences

MedicineMedicine

HospitalHospital

BusinessBusiness

DentistryDentistry

NursingNursing

LawLaw

Graduate StudiesGraduate Studies

University Master Plan Academic Precincts

Vedanta University Phase 1

Vedanta University Hospital Medical School

• Perkins and Will http://www.perkinswill.com/ has been shortlisted to design the complex (34 acres)

• Jensen partners (http://www.jensenpartners.com/) has been shortlisted to equip the medical college and develop the program

• Overall status: About 3500 of the 6000 acres have been acquired

• Work on the building expected to start in the end of October 2008.

Medical Colleges in Bhubaneswar-Puri area

Existing

• SCB Medical College• HiTech Medical College• Kalinga Institute of

Medical Sciences• SUM Hospital and

Medical College

Upcoming

• Medical College of Vedanta University

• AIIMS Bhubaneswar• Capital Medical College• Medical College of Sri Sri

University• Medical College of

National University

Human Resources Development in Human Resources Development in OrissaOrissa

Higher Education• Hub of engineering, management & medical

education in Eastern India

• Tripling of engineering/MCA technical education capacity since 2001

• 30,000 B.Tech / MCA, 3000 Management professionals and 50,000 general graduates pass out every year

• Apeejay implementing integrated Knowledge Park

• Besides IIT, NISER, & World-Class Central University, a central University in Koraput and a IIIT in Berhampur.

Utkal University, Bhubaneswar

RIE, Bhubaneswar

Bhubaneswar and Chandaka

Near Deras Dam in Chandaka

Bhubaneswar, Puri and Konark

Bhubaneswar and Chilika lake

Chilika Lake

Orissa: What the experts say• Mckinsey 2005: “Orissa’s economy is

poised to grow at 7.1% over the next 10-12 years, the highest in Eastern India”

• CMIE 2006 & 2008: “Orissa accounts for 15% of total investment in hand in the country. It tops in terms of Industrial investment ($133 Bn) and project implementation ahead of Maharashtra & Gujarat”

• World Bank 2008: “Orissa is a State on the move. GSDP has grown at the rate of 8.5% on average during 2002-07”

• Alastair King, CEO of UK-based India investor Eredene Capital (Quoted in a Reuter article): "Relative to building the 10th new retail mall in a suburb of Mumbai ... I'd much rather build the first distribution park in the steel industry of Orissa, where you've got great demand."

Why Orissa?Positive investment climate

• Vibrant industry sector

• A proactive and positive Government with a modern outlook

• Stability of political regime and policy framework for developing key economic sectors and for infrastructure buildup (Legislative framework to reduce transaction time & cost for investors)

• Strong institutional support and Single Window facilitation by Team Orissa

• Harmonious industrial climate and relations (*)

• Team Orissa

– Chief Minister is the captain of Team– Institutional framework of the Government

that is engaged in industrial facilitation and investment promotion

Mukteswar

Secretariat Building, Bhubaneswar

Why Orissa?Government promoting inclusive growth for sustainable & balanced development:

• People oriented R & R policy

• Strong institutional mechanism to promote periphery development with involvement of all stakeholders

• Stress on environment management

• Focus on SME sectors

• Strategy to leverage natural resources for all-round prosperity and enabling rural livelihoods

• Rapid infrastructure development through PPP framework and policy

KIIT University, Bhubaneswar

Well planned Roads

Opportunity OrissaOpportunity Orissa

• Education and Knowledge Sector

• Automobile sector

• Ancillary / downstream / construction phase projects of mining / steel / aluminium / petrochemicals (*)

• Equipment and technology suppliers & vendors

• Heavy engineering and fabrication

• Plant and machineries for ports (*), roads, industrial water supply, mining equipments, etc

• Power projects – coal washing, modernisation of existing units, renewable energy

• Marine fisheries & infrastructure

• Services sector

• Tourism

• Information Technology / ITES

Opportunity OrissaOpportunity Orissa

• Development of industrial parks and SEZs (*)

• Critical economic & social infrastructures in industrial and mining corridors – roads, water supply, housing, hospitals, etc

• Construction domain including industrial construction, townships, roads, ports, real estate and other infrastructure

• Technology applications in utilisation of flyash and blast furnace slag

• Clean development mechanisms projects – green manufacturing processes and technology

Invest in Orissa and be a preferred partner

• CAPEX database of The Centre for Monitoring Indian Economy (provider of project-wise information of new and ongoing capital expenditure projects in the country)– Ranks Orissa first in terms of value of total envisaged projects

for the period ending December 2007.• Estimated investment of Rs 599,181 crores (= $150 billion)

– Ranks Orissa first in terms of value of total projects under implementation in the country at Rs 308,589 crore.

– There are 483 projects being carried out in Orissa: 52% are under implementation stage while 48% are in the announced stage.

The future is NOW…and HERE!!

Websites:

www.orissagov.nic.in

www.teamorissa.org

www.idcoindia.com

www.orissagrowth.org

Thank You

Questions?

Recent disturbances

KBK and Kandhamala: Another frontier of India

Land Acquisition• We hear of the two problem ones (POSCO, Tata Steel)• Huge list of projects that have successfully acquired land

and many already in operation• But there is a problem, not just in Orissa, but in India

– They are being addressed at the national as well as state level– E.g. R & R policy are being updated so that they give people a

stake in the success of the project

• Some suggestions– Connect with locals; Make them feel that the company cares

about them– Don’t leave everything to the government– Hire experienced local managers– Keep a low profile

MOU versus implementations

• From http://go.worldbank.org/F6WBERON80• Has the signing of MOUs been interpreted as industrial

growth?– The reported industrial growth in recent years is based on actual and officially

estimated figures, not on MOUs. Assessment of future prospects has been informed by CMIE’s projections using detailed information on the status of each investment project under implementation, and its likely date of completion based on historical experience and informed judgment in exceptional cases.

• By how much has Orissa’s economy grown in recent years?– According to the latest data released by the Directorate of Economics and

Statistics, Government of Orissa, the state GDP grew at 10.5 percent annually on average during the most recent five years, that is 2003/04 to 2007/08.

– During the Tenth Five-Year Plan period, that is 2002/03 to 2006/07, the average growth rate was 8.5 percent.

– Orissa, which grew much slower than the rest of India during the 1990s, has now caught up. 2004 onwards, it has begun to overtake the national average.

More from the world bank report

• How many people have been brought out of poverty in recent years?– Between 1999/00 and 2004/05, based on NSS data estimates using ‘mixed

reference period’, the proportion of people in poverty in rural Orissa declined by 8 percentage points compared to 5 percentage points in rural India as a whole. Despite this progress, however, the level of poverty in Orissa remains significantly higher than the rest of India.

– According to the latest calculation based on official figures released recently by the Planning Commission, the number of poor in Orissa has come down by about 1.5 million between 1999/00 and 2004/05. This figure will feature in the final Bank report.

• What is the state’s current debt burden?– How the debt burden has moved can be appreciated by comparing not rupee

figures but the ratio of the debt burden to annual GDP or annual revenue. As a proportion of revenue, Orissa’s debt has fallen from 343 percent in 2001/02 to 201 percent in 2007/08. As a proportion of GSDP, it has declined from 63 percent to 50 percent. This is a major correction, and reflects responsible fiscal management to lift the state out of a crisis situation.

More from the world bank report

• Has the government achieved a revenue surplus by curtailing capital expenditure and squeezing development expenditure?

– The revenue surplus has been achieved as a result of 3 factors: – improved performance of the state’s own taxes, – enhanced central transfers and external donor support, and – curtailing of expenditure. – The capital budget was constrained during 2002-05, but still outcomes improved

due to emphasis on project completion. As explained in the report, there was undoubtedly a lot of flab in the administrative machinery, and Orissa was more over-staffed than other states. The government undertook major surgery to trim the fat, and in the process some muscle also got cut, which needs to be rebuilt now. The Government of Orissa has been hiring a large number of para-teachers, and the teacher-pupil ratio is 40 on average, ranging from 31 in the best served district to 60 in the worst. This is far better than the situation in Bihar, Jharkhand, Karnataka Madhya Pradesh, Uttar Pradesh and West Bengal.

Orissa Jharkhand Chhattisgarh India

Iron Ore 33.9% * 20% 2336MT 13460MT

Coal 24.4% * 35000 MT 210,000 MT

Bauxite 49.7% * 96 MT 2462 MT

Limestone * 3580 MT 75678 MT

Dolomite 12% 606 MT 4386 MT

Ancillary Business PotentialAncillary Business Potential

Operations &Operations &MaintenanceMaintenanceOperations &Operations &MaintenanceMaintenance

Spares &Spares &ManufacturingManufacturing

Spares &Spares &ManufacturingManufacturing

General General ServicesServicesGeneral General ServicesServices

Core Core Specialized Specialized

ServicesServices

Core Core Specialized Specialized

ServicesServices

DownStreamDownStreamFacilitiesFacilities

DownStreamDownStreamFacilitiesFacilities

Township Township ManagementManagementTownship Township

ManagementManagement

Utilities Utilities Utilities Utilities

Unexplored !!! Unexplored !!! Unexplored !!! Unexplored !!! Support Support

SpecializedSpecializedServicesServices

Support Support SpecializedSpecialized

ServicesServices

Supply Supply Chain &Chain &

LogisticsLogistics

Supply Supply Chain &Chain &

LogisticsLogistics

Mother Steel / AluminiumMother Steel / AluminiumPlantPlant

Mother Steel / AluminiumMother Steel / AluminiumPlantPlant

There is an opportunity to convert substantial parts of Steel / Aluminium/Petrochemical sector expenditure into Ancillary spend

SITE 1 – SEZ (2700 acres)

SITE 2 – for chemical projects (3,000 acres)

Paradeep-Duburi (116 Kms) is envisaged as an industrial corridor to house downstream / ancillary / construction phase projects of steel and petrochemicals

Single Window FrameworkSingle Window Framework

• Orissa Industries Facilitation Act 2004 enacted for the purpose

• Provides for combined application form and time-bound clearances for investment projects

• Enables maintenance of combined registers, records, returns

• Provides for streamlined inspections

• Dedicated institutional Mechanisms for clearances and investor escort services

Industrial Policy 2007Industrial Policy 2007

• Umbrella policy for industrial & infrastructural development

• Generally for a period of 5 years

• Sectoral policies emanate from IPR (Tourism, IT, BT, SEZ, PPP, etc)

• IPR 2007 is uniquely configured and is leveraged upon

- Quality institutional support

- Infrastructure development

- Liberal incentives package

- Human resources augmentation

- Timely & responsive grievance redressal

Share of Registered & Unregistered ManufacturingShare of Registered & Unregistered Manufacturing

• Share of registered & unregistered manufacturing in GSDP 2004-05 (%)

Registered Share Unregistered Share

Orissa 79.74 20.26

Andhra Pradesh 67.74 32.26

Chhattisgarh 72.79 27.21

Jharkhand 91.55 08.45

West Bengal 42.65 57.35

India 65.86 34.14

• Source: CSO, 2006

InflationInflation

• Inflation measured by CPI for urban non-manual employees (%)

2002-03 2003-04 2004-05 2005-06

Orissa 2.63 4.63 3.57 4.48

Andhra Pradesh

4.22 3.39 3.47 5.13

Jharkhand 2.81 5.80 5.33 6.69

West Bengal 2.69 4.40 4.16 4.74

India 3.78 3.74 3.63 4.74

• Source: Labour Bureau

• Note: Financial year averages

Choudwar Auto ComplexChoudwar Auto Complex

• Choudwar is located on NH42 that connects to NH5 (Kolkata – Chennai) with western part of Orissa. It is at a distance of 3 kilometres from River Mahanadi, 10 kilometres from Cuttack city, 6 kilometres from the nearest railway station Nirgundi, 38 kilometres from the airport in Bhubaneswar, 90 kilometres from the existing Paradeep port

• The industrial estate is spread over an area of 412 acres and is well-planned with earmarked plots for allocation to SMEs. The internal infrastructure including roads, power supply and water supply have been developed

• Most of the workforce of existing industries resides in Cuttack city which offers excellent residential facilities, healthcare, educational services and an economic cost of living

PRESENTATION PRESENTATION

ON ON

STEEL SCENARIO OF THE STATE STEEL SCENARIO OF THE STATE

OF OF

ORISSAORISSA

MEMORANDUM OF UNDERSTANDING

1. Total MoU Signed 54

2. MoU cancelled 5

3. MoU under subjudice 1

4. MoU to be revived 1

5. MoU in force 47

6. Proposed Capacity 75.66 MTPA

7. Proposed Captive Power Plant

5,600 MW

INVESTMENT

(Rs. In Crore)

PROPOSED : 1,98,149.40

MADE SO FAR : 21,182.45

PARTIAL PRODUCTION

Started Partial Production - 28

Capacity Achieved so far

(In MTPA)

Sponge : 4.93

Steel : 3.80

MBF : 0.63

Other : 0.15 (F.C.)

PARTIAL PRODUCTIONSL No.

Name of the Company

Capacity Achieved

Sponge

MBF SteelOthe

r

1 Aarti Steels Ltd. 0.20 - 0.18 -

2 Adhunik Metalicks Ltd. 0.18 0.20 0.26 -

3 Scaw Industries Pvt. Ltd. 0.10 -0.05

0-

4 VISA Steel Ltd. - 0.22 - -

5 SMC Power Generation Ltd. 0.10 - 0.10 -

6 Shyam DRI Power Ltd. 0.020 -0.02

0-

7Orissa Sponge Iron & Steel Ltd. 0.25 - 0.10 -

8 SPS Steel & Power Ltd. 0.18 - - -

9 OCL Iron & Steel Ltd. 0.12 -0.08

5-

10 Maheswary Ispat Ltd. 0.13 -0.06

0-

11 Aryan Ispat & Power Ltd. 0.060 - - -

12 Maithan Ispat Ltd. 0.15 - 0.13 -

13 Sree Metaliks Ltd. 0.30 0.03 0.28 -

14 MSP Metalicks (P) Ltd. - 0.18 - -

SL No.

Name of the CompanyCapacity Achieved (In MTPA)

Sponge MBF Steel Other

15 Action Ispat & Power (P) Ltd. 0.11 -0.12

5-

16Patnaik Steels and Alloys (P) Ltd.

0.11 - 0.10 -

17 Rathi Udyog Ltd. 0.15 - - -

18 Viraj Steel & Energy Ltd. 0.11 -0.07

5-

19 Deepak Steel & Power Ltd. 0.14 -0.01

1-

20 Beekay Steel & Power Ltd. 0.11 - - -

21 BRG Iron & Steel Co.(P) Ltd. 0.060 - - -

22 Jindal Stainless Ltd. - - - 0.15

23 Eastern Steels & Power Ltd. 0.11 - 0.10 -

24 Jai Balaji Jyoti Steels Ltd. 0.12 - 0.12 -

25 Bhushan Steels Ltd. 0.50 - 0.50 -

26Surendra Mining Industries (P) Ltd.

0.06 - - -

27 Crackers India (Alloys) Ltd. 0.06 - - -

28 Bhushan Power & Steel Ltd. (MoU to be revived)

1.50 - 1.50 -

PARTIAL PRODUCTION Contd....

CAPTIVE POWER PLANTAchievement

Name of the Company

C.P.P. (In

MW)

Name of the Company

C.P.P. (In

MW)

M/s Aarti Steel Ltd. 40M/s Action Ispat & Power (P) Ltd.

4.5

M/s Adhunik Metalicks Ltd.

30M/s Patnaik Steels and Alloys (P) Ltd.

15

M/s Scaw Industries Pvt. Ltd

8M/s Rathi Udyog

Ltd. 20

M/s SMC Power

Generation Ltd. 8M/s Viraj Steel & Energy Ltd.

8

M/s Shyam DRI Power Ltd.

25M/s Jindal Stainless Ltd.

13

M/s Orissa Sponge Iron & Steel Ltd.

58M/s Eastern Steels

& Power Ltd. 12

M/s OCL Iron & Steel Ltd.

14M/s Bhushan Steels

Ltd.110

M/s Sree Metaliks Ltd.

28M/s Bhushan Power & Steel Ltd. (MoU to be revived)

100

MEGA STEEL PLANT PROJECTS IN ORISSA

Sl.No.

Name of the Company LocationCapacity (In MTPA)

1M/s Sterlite Iron and Steel Company Ltd.

Keonjhar 5.1

2 M/s TATA Steel Ltd. Jajpur 6.00

3 M/s ESSAR Steel Orissa Ltd. Jagatsinghpur 4.00

4 M/s POSCO India (P) Ltd. Jagatsinghpur 12.00

5 M/s Jindal Steel & Power Ltd. Keonjhar and Angul 6.00

6M/s Welspun Power & Steel Ltd.

Cuttack and Jajpur 3.00

7 M/s Uttam Galva Steels Ltd. Keonjhar 3.00

8 M/s SSL Energy Ltd.Site has to be finalised

3.00

9 M/s Arcelor Mittal India Ltd. Keonjhar 12.00

10 M/s Bhushan Steels Limited Dhenkanal 3.00

STATUS OF MEGA STEEL PLANT PROJECTS

Sl.No.

Name of the Company Status


L.A. under progress

2 M/s TATA Steel Ltd. Law and Order

3 M/s ESSAR Steel Orissa Ltd. L.A. under progress

4 M/s POSCO India (P) Ltd. -do-

5 M/s Jindal Steel & Power Ltd. -do-

6 M/s Welspun Power & Steel Ltd. -do-

7 M/s Uttam Galva Steels Ltd. -do-

8 M/s SSL Energy Ltd. -do-

9 M/s Arcelor Mittal India Ltd. -do-

10 M/s Bhushan Steels Limited Partly operational

MEGA STEEL PLANT PROJECTS IN ORISSA

Sl.No.

Name of the Company LocationRequirement of Land (In

Acres)


Keonjhar 3400

2 M/s TATA Steel Ltd. Jajpur 3500

3M/s ESSAR Steel Orissa Ltd.

Jagatsinghpur 2500

4 M/s POSCO India (P) Ltd. Jagatsinghpur 6000

5M/s Jindal Steel & Power Ltd.

Keonjhar and Angul

5750

6M/s Welspun Power & Steel Ltd.

Cuttack and Jajpur 2200

7M/s Uttam Galva Steels Ltd.

Keonjhar 2150

8 M/s SSL Energy Ltd.Site has to be finalised

2000

9M/s Arcelor Mittal India Ltd.

Keonjhar 8000

10M/s Bhushan Steels Limited

Dhenkanal 2000

OTHER STEEL PLANTSSl.No

.Name of the Company Status

1 Maharastra Seamless Ltd. Alternative land is yet to be provided by IDCO

2Monnet Ispat & Energy Ltd.

L.A. under progress

3 Konark Ispat Ltd. -do-

4 Jain Steel & Power Ltd. Partial production will be commenced on June 2008

5 Rungta Mines Ltd. L.A. under progress

6 Brand Alloys Ltd. -do-

7 MGM Steels Ltd. -do-

8Brahmani River Pellets Ltd.

-do-

9Pradhan Steel & Power Pvt. Ltd.

-do-

10 Tecton Ispat Pvt. Ltd. Requested for Alternative site

11 Atha Mines Pvt. Ltd. -do-

12Deo Mines & Mineral (P) Ltd.

(MoU under Subjudice)

Not Progress

EMPLOYMENT GENERATED

Direct 14992State : 10400

Outside State : 4592

Indirect 35745

State : 27838

Outside State : 7909

REVENUE GENERATED

Tax Paid (Rs. In Crore)

State : 452.50

Central : 1028.53

Juggernaut

• A force regarded as unstoppable, that will crush all in its path• Derived from the Sanskrit Jagannātha• One of the most famous of Indian temples is the Jagannath Temple

in Puri, Orissa, which has the Ratha Yatra (chariot procession)• British contrived the word "Juggernaut" to refer to examples of

unstoppable, crushing forces.• The Ratha Yatra now happens on an annual basis in places such as

London, Paris, Toronto and New York.

Orissa Vital Statistics

•Per capita income 2005-06 – Rs. 13,979

•Urban population – 14.97%

•Literacy rate – 63.08%

•Number of districts – 30

•Number of towns – 138

•Number of villages – 51,350

Emerging East: Orissa’s Turn Around MP Mr. Baijayant Panda and Professor Chitta Baral Arizona...

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