The voice of a resurgent Orissa Inaugural Issue 2010RESPONSIBLECOMPENSATIONDr. Sudhakar Panda, Chairman,State Finance Commission,explains the success of Orissa’sdevelopmental modelINSPIRINGENTREPRENEURSHIPREVERSINGBRAIN DRAINAbhijit Sen, Head, Infosys(Bhubaneswar), appraises thesuccess of Infosys within thecontext of a re-energised OrissaODISSI.COMING A FULL CIRCLE.ORISSAAWAKENINGTO A NEW DAWN
Murlidhar C. Bhandare GOVERNOR, ORISSA MESSAGE I am glad to know that the inaugural issue of "ODISHA ... The voiceof a resurgent Orissa", a magazine on Orissa is being brought out. Orissa is a land of rich cultural heritage and tradition with a gloriouspast. It is a land of art and artists where art achieves excellence and manygreat artists born here have taken the art to the pinnacle with their talentand devotion. Often called the Beauty Queen of the East, the statepossesses immense tourism potential that however needs to be tappedand projected properly before the outer world to reap rich benefits from thetourism sector. Orissa is now on a defining state to script a new destiny by givingpriority on alleviation of poverty and increase in literacy as poverty andilliteracy are the two ugly spots on the beautiful face of Orissa. Theinitiative taken in bringing out a magazine showcasing the statesmagnificence as well as potential and possibilities in different sectors isindeed commendable and I am sure the maiden venture will go a longway in projecting the true picture of Orissa before global readers. I wish the endeavour and publication all success. (Murlidhar C. Bhandare) RAJ BHAVAN, BHUBANESWAR-751008Tel: 91-674-2536111/2536222 Fax: 91-674-2536582, E-mail: email@example.com Website: www.rajbhavanorissa.gov.in
ORISSAINFINITE POSSIBILITIES et another year has brought with it taking a concrete shape. The passing of Y new possibilities, new challenges, renewed vigour and greater impetus for the Vedanta University Bill in the state assembly has re-affirmed our dynamic growth reaching new conviction that Orissa is on the verge of horizons. a knowledge revolution. We are doubly determined to build this world-class The Vedanta Group is spreading roots university, which will nurture a global across the globe. But Orissa has always community of knowledge seekers. been close to our heart. The state is ideally positioned to see phenomenal I am happy to see the launch of the all-round growth in the next decade. Its magazine ‘Odisha’. The attempt to potential for economic growth, rich showcase the different facets of a natural resources and cultural legacy resurgent Orissa through this magazine and most importantly, the people, will do wonders in unveiling the state’s provide an ideal platform for a giant manifold possibilities before a global leap into a glorious future. We are readership. proud to be a part of this trajectory and I have absolutely no doubt that Orissa will continue to focus our energy on is set to script one of the nation’s most investments in various sectors – thanks exceptional success stories.The Vedanta Group is spreading to the unstinted and continued supportroots across the globe. But of the people of Orissa.Orissa has always been close to At a more personal level, I am mostour heart. excited at the prospect of seeing my Anil Agarwal dream project, ‘the Vedanta University’ Chairman, Vedanta Group 3
Over the last few years, a ISSUE 1 CEO SPEAK resurgent Orissa has been Executive editor: Mudar Patherya increasingly in the news. There Editorial team: Dr. Itishree Devi from is growing evidence of Orissa Vedanta Aluminium Limited reporting improvements across Editorial contact: various indicators, whether it is firstname.lastname@example.org industrial investments, educational campuses, infant mortality, software exports, the 14 ease of doing business and lastly – the summation of all that has transpired – real-estate valuations.This transformation is rapidly attracting global attention andinvestors are knocking on Orissa’s doors for capitalopportunities, which will ultimately set the growth Kalikesh Singh Deo sharesmomentum rolling in the state. This magazine has been his vision ofcreated with the singular objective of documenting and DREAM ORISSAtracing Orissa’s traction towards the positive.There is a new buzz about Orissa – a willingness of 16entrepreneurs to commission fresh businesses, an ease ofliving that is better than a number of Indian equivalents, agrowing appreciation of the capital’s clean air, a wideningrespect for the governance and, remarkably, this change ispermeating right down to growing prosperity for the ones 6who most need it – communities at the grassroots.There is a necessity to evaluate and project the state’sdevelopments for the world to take note of. Hence the needto review the transformation; to recognise strengths andachievements; to give greater momentum to the state’samazing success stories by highlighting the positive for ORISSA’Sonward replication and urging the people to participate in it VISION 2030pro-actively. HOPE Mr. Lalit Mansingh getsThis magazine, in chronicling positive change, will focus on candid about Orissadoing what most don’t. Reinforcing the positive. Enhancinghope.With my best regards, 18 10M. Siddiqi ROAD MAP OPINION Jay Panda, substantiates Orissa’s prospects4
22 42 32 52 MANAGING SANDMASTER EXPECTATIONS Unconventional art in Orissa Dr Sudhakar Panda explains the success of Orissa’s developmental model REVERSING MAKING A BRAIN DRAIN DIFFERENCE Abhijit Sen, reviews Infosys’ success story in Orissa 24 44 34 54 LARGEST BORN AGAINVedanta Aluminium Limited’s -BNR BHUBANESHWAR endeavours in Orissa VEDANTA Rediscovering the past means business UNIVERSITY 40 56 30 “ “ 48 ODISSI ORISSA coming a full circle OPINIONS INSPIRING ENTREPRENEURSHIP Mr. Pankaj Khanna CHILIKA shares his optimism A natural wonder 5
HOPE “TALKING, DISCUSSING AND ARRIVING AT AN AMICABLE AGREEMENT IS KEY TO USHERING IN A NEW WAVE OF DEVELOPMENT ACROSS ORISSA. THIS IS NO ROCKET SCIENCE.” IT IS REFRESHING TO MEET MR LALIT MANSINGH, FORMER INDIAN AMBASSADOR TO THE USA, WHO SPEAKS CANDIDLY ABOUT ORISSA, HIS BIRTHPLACE. MR MANSINGH (HE ALSO SERVED AS THE HIGH COMMISSIONER TO THE UK) IS FORTHRIGHT ON A NUMBER OF CHALLENGES - AND SOLUTIONS - CONFRONTING THE STATE. THE CENTRE PIECE OF HIS STRATEGY IS THE CREATION OF AN OPEN FORUM TO PROMOTE AN HONEST DIALOGUE BETWEEN THE STATE’S THREE MOST IMPORTANT STAKEHOLDERS – THE GOVERNMENT, INVESTORS AND LANDHOLDERS. INTERVIEW EXCERPTS FOLLOW. Q. Your career has been long and associated with a number of NGOs and of pride to mobilise local and illustrious. What keeps you busy after am building a broad consensus among administrative support. retirement? Delhi’s think-tank to formulate acceptable solutions for Orissa. Q. Please elaborate on your initiatives A. Good question. People do different to bring Orissa to the fore. things after retirement – they sit at Q. Why are you so passionate about A. During my father’s time, one had to home, listen to music, read newspapers, the state’s development? walk almost 60 miles to study, so we go for long walks and watch life go by. I A. Orissa is among the richest states in donated land to build a school at the find myself in that situation as well. terms of tangible and intangible Nandala village, my birthplace. Besides, However, after returning in 2004 from resources. It holds the country’s largest an assignment in Washington, I spent reserves of iron ore with a fair share of Orissa is among the richest considerable time in Orissa pursuing coal, which represent basic inputs in states in terms of both tangible opportunities that could perpetuate steel manufacture. Its art forms (Odissi development with the maximum and intangible resources. It and patta-chitra paintings, among societal impact. others) are internationally renowned. holds the country’s largest Relevantly, I became an INTACH However, neglect and limited resources reserves of iron ore with a fair (Indian National Trust for Art and undermined the preservation of this share of coal, which represent Cultural Heritage) convenor and later glorious past and it was opportune basic inputs in steel also took on other State-centric when INTACH’s chairman requested assignments. The result is that I am me to take up this cause. It was a matter manufacture.6 7
It is a good sign that Vedanta has taken a holistic developmental view comprising industrial and educational growth. V I E W S we organised a Maya Sandhya dance and insensitivity of the bureaucracy, been misinterpreted and not reached its festival in Delhi in 2007 in the memory there is growing grassroots optimism, intended audience. Talking, discussing of my poet father Mr. Mayadhar which is spurring development. I find and arriving at an amicable agreement Mansingh comprising Odissi, Kathak communities, neglected for years, is key to ushering in a new wave of and Bharatnatyam, which was attended assuming responsibility for creating development across Orissa, which is no by dignitaries like the former Minister sustainable growth and forming self- rocket science. of Culture and Tourism Mrs. Ambika help groups. This is resulting in income “The Persians talked of At present, the dialogue is restricted to Soni, Dr. Karan Singh, Dr. Farooq growth, enhanced nutrition for their Orissa’s prosperity and high investors and the government and the Abdullah and other connoisseurs. This children, better public facilities and standard of living…” message has not been rightly ‘delivered’ event was also held in Bhubaneshwar, other social infrastructure. to the real beneficiaries. A tri-lateral Q. Can you dwell on the history where traditional costumes, saris and dialogue between three interested of Orissa? hand-woven shawls brightened the Q. Will the coming decade see bigger parties is a must for differences between stage. development in Orissa than has been A. The Persians talked of Orissa’s stakeholders to be ironed out. seen in the last sixty years? prosperity and high standard of Q. In addition to INTACH, you also It is a good sign that Vedanta has taken living from the 16th century worked with a number of NGOs to A. Yes. For one, the state is endowed a holistic developmental view onwards. Orissa’s peak was in the catalyse Orissa’s development. with rich wildlife, beaches and forests, comprising industrial and educational 13th century when the famous which offer tremendous scope for A. Absolutely, because statistics reveal growth. I think the idea of an Konarak Temple was built, the tourism development along with that Orissa is among the poorest Indian international university is great and last flicker of a great civilization. agriculture and industry. In the last few states and in some way I felt being next to Puri, a traditional and Since then it started to decline but years, Orissa’s GDP growth has almost responsible. This is what I observed: a cultural hub, it could be an added this was not visible until the 16th matched India’s economy. Roads and large number of NGOs were scattered attraction for people from all over the century when it was attacked by schools have come up, people are better across Orissa. My understanding was world to visit the state. the Afghans ruling Bengal and fed, consumerism is rising and a that if development was to acquire any results in primary healthcare being as well as round-the-clock water supply other northern and southern number of knowledge-led industries are scale, these NGOs needed to be Q. What would be the triggers of delivered largely by untrained, in toilets will go a long way in empires. Then came the Mughals, being commissioned, leveraging consolidated around a common Orissa’s development? unlicensed and unregulated rural improving health and lifestyle Marathas and the British, the last resident intellectual capital. platform. I organised a meeting to share A. One, a ramp-up in the state’s medical practitioners. It is possible to standards. rule marked by floods, droughts, NGO information and best practices, While there is an air of prosperity about use technology to train and monitor the epidemics and famines every few education system as we are not Four, irrigation facilities have to be attended by more than 50 NGOs. This Bhubaneshwar, the state will do better activities of these rural medical years. The British divided the state producing quality graduates. When I upgraded as the state witnesses was followed by more meetings to when our large rural populace is practitioners and connect them to into several provinces; there was was a student it was an established fact abundant rainfall and is blessed by create a sustainable development cycle equipped with the necessary resources urban doctors through voice or video to nothing left of Orissa as a state. that unless one went out of Orissa, many rivers. Besides, more than 60% of independent of political intervention. I and infrastructure as well. When mega strengthen the state’s healthcare The movement for an there was no chance of career growth. Orissa goes without irrigation since would say that we have succeeded to projects are implemented and our services. independent Orissa started in the So this improvement will not only help dams and bunds are monsoon- some extent on this front. people are convinced that these are for early 20th century and the state retain local talent but also accelerate Three, clean water supply needs to be dependant. Orissa can become India’s their good, we will outpace every other became a reality only in 1937. reverse migration. adequate. In pockets, where one of the bread basket if irrigation is Q. What is the most visible change state in the country. NGOs I have been associated with, strengthened. sweeping across Orissa today? Two, health standards need to be raised Q. What is the Vedanta Group’s role provided 24-hour clean water supply, as Orissa has one of India’s worst Five, governance improvement is A. The most ‘visible’ change is the disease incidence declined 80%. The in catalysing Orissa’s development? maternal and infant mortality rates. In warranted as certain Orissa districts are mindset. Despite centuries of ineptitude need for education in hygienic practices rural areas, a lack of basic medical care plagued by Naxalites and rebel factions. A. I think Vedanta’s core message has8 9
O P I N I O N JAY PANDA, MEMBER OF PARLIAMENT FROM KENDRAPARA (ORISSA), EXPLAINS WHY HE IS OPTIMISTIC ABOUT ORISSA’S PROSPECTS Q. Why are you positive about Orissa 50 years since national independence. today? A. This answer needs a holistic A. A small correction. I have always been understanding. Orissa, better known as positive about Orissa for a number of Kalinga and subsequently Utkala, was a reasons – captive availability of rich mineral great part of India more than 2000 years resources, a legacy of cultural diversity, a ago. However, the state was blighted for long coastline and rich bio-diversity centuries including 55 years of its history reflected in the largest lake and forest in post-India’s Independence, under- India. A close appraisal of Orissa from any performing most national averages. angle cannot but reaffirm this optimism. There was perhaps a reason for this. Although Orissa is rich in mineral Q. A number of observers question why the resources, the central government’s freight state could not achieve much for more than equalisation policy encouraged downstream10 11
O P I N I O N sectors to be set up just about reality across the state, paving the way been the other challenges of the Naveen commission facilities in Bhubaneswar. everywhere across the country except The big change that we have now seen in for resurgence. Patnaik government? A major aspect of the state’s sustainable ironically where they would have been the most suited – at the pithead. In an Orissa is that those found guilty are not Q. So what has changed in Orissa in A. Some of the challenges that the success is its inclusive growth, implying economically illogical provision, the being spared irrespective of their the last few years? Naveen Patnaik government inherited include: a virtually bankrupt state with that the related benefits are reaching the masses, otherwise deprived for government compensated freight from the pithead to steel manufacturing position, connection or clout. A. Governance. In the last few a financially overdrawn position generations. Orissa reported the fastest decades, public representatives in virtually every day of the year. A sizable improvement in the reduction of child locations. Consequently, while certain regions started manufacturing steel, Orissa reported the fastest Orissa often acted with impunity; over investment going into the state’s malnourishment over the last decade at the last nine years, the big change has others – regions with adequate improvement in reduction of child been a culture of accountability. It is no irrigation and water management schemes with relatively minimal 10%, as against the average national improvement of 6%. Moreover, in resources – were overlooked for malnourishment over the last decade at longer what the elected representatives benefits reaching the public. A general terms of infant mortality – generally a Q decades. have done but also how they have done morale that with so many leaks, the primary health indicator – Orissa Orissa – one of the world’s richest 10%, as against the average national so, that has made all the difference. state was not going anywhere. improved its position from the bottom mineral hubs – ended up exporting its improvement of 6%. of the list of Indian states to fourth A ore to other states, boosting Q. In what way? from the bottom and on the basis of employment and economic A. Like most other Indian states, programmes already implemented, opportunities at these locations at the Orissa was afflicted by corruption. expects to graduate to the top quartile cost of its own well-being. Public project benefits did not reach over the next five to seven years. Q. How did the scenario change? A. A number of developments over the last decade converged into an inflection beneficiaries, public funds often being apportioned by private interests. Today, this scenario has drastically changed and those found guilty are not being & We demonstrated something far more challenging – that we can transform our destinies collectively. This has happened most visibly in the Paani point in Orissa’s history. spared irrespective of their position, Panchayat Programme, which is a connection or clout. The result is best people’s co-operative in the One, the freight equalisation policy was showcased in the Rs 2 per kg of rice management of precious water scrapped in the early Nineties, programme conducted in the state. The resources across Orissa. increasing raw material transportation food security programme came about We are positioning Orissa as a cost from pitheads to manufacturing with the state government spending Q. So what is your overall take on the locations. global showcase in the area of Rs 850 crore annually to make it future of Orissa? Two, a commodity and metals boom happen. I am pleased to state that there sustainable development. A. We are positioning Orissa as a transpired across the world some years was no leakage and mismanagement in global showcase in the area of later, prompting large investments in its implementation, monitored Q. Give us a few examples of the sustainable development where on the upstream and downstream sectors. personally by the Chief Minister. state’s ‘resurgence’. one hand, the state will emerge as a Three, China emerged as the There is another aspect to this global hub in metals, education, A. In the last few years, Bhubaneswar undisputed global commodity centre of governance. A strict quarterly information technology and tourism, gravity and Orissa was recognised as monitoring system makes decision has emerged as one of India’s fastest and on the other, in the area of the closest sustainable supplier of makers accountable and responsible. growing technical education centres, grassroots prosperity. We have already metals or mineral resources. While it would have been easy to over- prompting comparisons with Pune. The embarked on this inclusive journey! project the number of MoUs signed, I education centres are likely to enhance Four, the government introduced Orissa to become a supplier to the rest Q. Why is the fifth point important? can state that some MoUs have actually value to the local population and regulatory changes in the power sector, of the country. A. Naveen Patnaik was elected into been cancelled because there was no additionally draw students from other rebalancing investments between the Fifth, Naveen Patnaik’s election as chief states, many of whom are expected to office in 2000, then again in 2004 and progress in the projects – six of the electricity generation and transmission minister in 2000 and re-election for two seek employment within and stay back. yet again in 2009. A party being voted original 42 MoUs signed for steel, for segments; the government made it successive terms laid the foundation of Besides, the growth of these technical to office for the third successive time instance. possible for generators to trade power a stable and pragmatic political education institutes will encourage a reflects political stability and positive across regions, enabling resource-rich environment. number of IT companies to change in the fundamental grassroots Q. Apart from governance, what have12 13
O P I N I O N “OUR OBJECTIVE IS TO EMERGE AMONG THE TOP FIVE INDIAN STATES BY 2020” BY KALIKESH SINGH DEO, MEMBER OF PARLIAMENT The Naveen Patnaik to analyse progress. If Orissa government’s vision of successfully mobilises all its available Orissa by 2020 can be natural and economic resources and broadly categorised into motivates people and organisations three overarching objectives. towards the vision, I am confident Orissa will emerge as a model for the 1. Emerging among rest of India.” the top five Indian The numbers indicate that perhaps the states beginning towards this ambitious but challenging journey has already been “I dream of an Orissa 2. Achieving a Is this possible? made. A paper was formulated taking into consideration the 7.3% growth rate where the main purpose of the government is not merely to govern, but consistent 9-10% during 2002-06, agriculture growth rate where law, policy and strategy liberate and give purpose to individuals “Orissa can indeed achieve this vision annual growth by capitalising on its cultural and of 3% in 2002-03 to 2005-06, besides and institutions in their functioning… where every individual is projections by McKinsey, Morgan educated, self-sufficient and empowered… where empowerment does not economic strengths,” states a review of 3. Reducing the this vision document by Kalikesh Stanley and the Centre for Monitoring end at the affluent individual but extends to the underprivileged. The Kalikesh Narayan Singh Deo poverty level from Narayan Singh Deo, Member of Indian Economy (CMIE). For instance, realisation of this vision does not end at attaining the specific targets comes from the erstwhile royal 47% to below 10% Parliament from Bolangir, Orissa. “Of in 2005, McKinsey predicted a 7% growth rate over 10-12 years, while within, rather these targets are merely the horizon of what we now see, family of Bolangir. He is a Member of Parliament from course, the ability to ensure investment and once attained, will reveal another more beautiful horizon beyond. Morgan Stanley Global Economic Bolangir, Orissa and was the The vision paper ‘envisions a society in the acquisition and development of Though the state may be tested by floods, cyclones and other natural youngest member of the Orissa which, by the year 2020, has a well Forums 2005 report indicated that its mineral resource base, along with State Assembly. Was a member of diversified and prosperous economy Orissa would emerge as India’s metal calamities... our vision is to see the state pass through every trial, drawing in and channelising all the Public Accounts Committee business hub, attracting investments up and Energy Committee. Elected to that attains rapid and sustainable available human resource, will be key to unhindered in its purpose, self-reliant, self-sustaining and outward development, in which all citizens have to USD30-40 billion in five years. To the House in 2004 at the age of realising this vision. The stakeholders reaching, a perfect expression of the principles enshrined in the top it, CMIE ranked Orissa number one 29, he won from the Saintala ample opportunities to realise their need to inculcate a broad vision and in investment project value under Constitution of India.” Assembly Constituency. potential and enjoy a high quality of increased efficiency in governance, Represented India in shooting life.’ implementation. while planning and establishing systems Kalikesh Singh Deo and basketball.14 15
ORISSA’S VISION 2030 The Bhubaneswar region on the other and commerce. third lowest population growth rate hand, conceived after independence, among all states. The literacy rate is The present and future of the experienced tremendous growth. marginally lower than the national Bhubaneswar-Cuttack Urban Complex Administrative and institutional mark. is intertwined with the state’s overall activities contributed to the increase in development. A brief look into Orissa’s Development of Bhubaneswar-Cuttack the volume of trade and commerce demographic and socio-economic Urban Complex, if efficiently and activity. Bhubaneswar, well connected profile indicates it as one of the least equitably managed, will trigger with Cuttack (30 km) through rail and urbanised among India’s major states collateral development of its adjoining road linkages (NH-5 and Howrah- (14.7% of the state population resides in hinterland, which in turn would help Chennai Rail route), possesses urban areas). Besides, 70% of the raise the level of overall welfare in this tremendous potential to act as a population is engaged in agrarian part of the region. complementary growth centre to activities. However, the state has the Kolkata in the eastern region for trade The Vision for the planning area has been perceived around the following core ideas: 1. Cuttack and Bhubaneswar as twin cities. 2. Transformation of the Bhubaneswar-Cuttack Urban Complex to a world-class urban centre to serve as an important gateway for national and international investments. 3. Promotion of cultural, built and natural heritage in a sustainable manner. The road map to achieve this Vision will include the following: Generate higher service facilities for attracting various developmental activities, investors and industrial houses Generate facilities and activities to support small investors, informal sectors and slum inhabitants and rural migrants he Government of Orissa, under Bhubaneswar-Cuttack Urban Complex on neighbourhood planning concept by Improve the transport network system for faster communication and high standard linkages between the growth centres and T the Technology Mission, initiated a proposal towards the formulation of a to the Department of Architecture and Regional Planning IIT Kharagpur for the internationally acclaimed urban planner, Otto. H. Koenigsbargein. The their rural hinterlands Provide decent housing for all sections of people living in the region development plan for its capital region. the holistic and integrated development total planned area stretches across 720 Transform the whole region to a pollution free zone with conservation of bio-diversity and environment This was followed by an interactive of the region. The concept paper is sq. km covering 1.58 million population process between the Department of currently being initiated to invite inputs (Census, 2001). Frame land policies and development proposals for eradicating bottlenecks for future development Architecture and Regional Planning, from stakeholders as a first step towards Cuttack, with 195 sq. km and 0.64 Formulate disaster management policies to tackle natural hazards IIT Kharagpur and the Government of participatory planning. million people, is the nerve centre of Orissa. Provide high levels of physical and social infrastructure ensuring safe drinking water, improved sanitation, well distributed trade and commerce for the state. Planning region education, health, recreation and cultural facilities Eventually, a memorandum of Paradeep port, 70 km from Cuttack, understanding (MoU) was signed The Bhubaneswar-Cuttack Urban provides an excellent opportunity as an Convert the region to a learning and cultural centre for the state as well as nation where the Housing and Urban Complex comprises two major urban industrial destination based on port centres namely Cuttack, the erstwhile Transform the region to a hub of tourism through preserving and promoting the rich cultural heritage Development Department transhipment functions. During the last (Government of Orissa), assigned the state capital, and Bhubaneswar, the decade, Cuttack’s growth has slowed Design an effective development control mechanism with a high value of public serviceability task of preparing a Perspective Plan present state capital. The former is a due to spatial restrictions on its future Re-energise the institutional and administrative system to manage future urban development in the region Vision 2030 and Comprehensive traditional Indian town organically growth directions as well as its Development Plan for the developed over time, while the latter unplanned city structure. Source: Rewritten and extracted from Vision 2030: A Concept Paper; courtesy: IIT Kharagpur was conceived as a modern metropolis16 17
rissa’s new Industrial Policy resulted in a bevy of the country’s top around 20,000 jobs by 2010. Lanjigarh is progressing towards projects in Paradeep. The state is capacity in Jharsuguda and Lanjigarh. O was formulated to attract large industrial investments to corporate houses including the Tatas, the Aditya Birla group, Ruias, I Steel investments: About 49 MoUs commissioning. Work has also started on the Aditya Birla Group’s aluminium creating a mega petroleum, chemicals and petrochemicals investment region I Ship-building and ship repair have been signed for setting up about investments: Bharati Shipyard and the catalyse industrial resurgence. aluminium major Vedanta, IT giants smelter in Jharsuguda. in Paradeep. Rs 200,000 crore of new steel plants, Apeejay Surrendra Group have This new policy promoted the (Infosys and Satyam) as well as entailing an estimated annual I IT/ITeS investments: Orissa is an I Energy and power investments: proposed to set up mega shipyards at implementation of a single Arcelor-Mittal making a beeline to production of about 74.66 million emerging IT/ITeS hub comprising Around 13 thermal power projects are the Dhamra port. window to facilitate and invest in Orissa, transforming this tonnes – this is nearly 50% more than brand-enhancing names like Infosys, under consideration with a capacity of neglected state into a potential I Infrastructure investments: A streamline the establishment of the entire production of India Satyam, Wipro, TCS, Mindtree, ICICI 13,500 MW entailing an USD 11 bn new businesses in the state with industrial hub. massive investment is being undertaken combined. A number of these Bank and Genpact, among others. More investment. The private players setting assistance from the World Bank. for the development of industrial, For instance, the Tata Group plans to companies have either started than 300 such small and medium up power projects include Tata Power, Combining training and technical economic and social infrastructure to invest Rs. 30,000 crores in a new steel production or are at the construction enterprises are present in the state. This Reliance Energy, Sterlite Energy, assistance, the World Bank reinforce the steel and mining plant, port, multi-product SEZ, power stage. has inspired the state to set an export Mahanadi Aban, Monnet Ispat, Essar Institute helped build the capacity corridors. A major expansion of the plant, hotels as well as an expansion of target of USD 1,000 mn by 2011-12 and Power, Lanco Group, NavBharat I Aluminium investments: MoUs have Paradeep port is underway. The of key institutions in Orissa to its existing units. The Vedanta Group related employment for around 200,000 Power, CESC and GMR Energy, among facilitate investments. been signed for setting up two alumina Government of India has approved 12 has planned to invest Rs. 47,000 crores software professionals by 2015. others. The state is also considering refinery projects entailing an SEZs (including four IT SEZs). Around The results are visible: it now takes in various projects like alumina various mini-hydel projects with a investment of Rs.25,000 crore. Various I Petrochemical investments: IOC is four new ports worth USD 2 bn in only 52 days to start a business in production as well as world-class combined capacity of 100 MW. Sterlite units from within Vedanta’s alumina investing USD 6 bn for a 15 mtpa mega investments are coming up at Dhamra, Orissa compared with the 79 days education infrastructure. Besides, the Industries is planning to invest plant in Jharsuguda have been petrochemical complex. Deepak Gopalpur, Jatadhari Muhana and it took to do so before the reform IT/ITeS industry expects to create Rs 20,000 crore towards 4,500 MW completed, while its alumina refinery at Fertilisers is investing in two chemical Kirtania. A bio-pharma park in process in 2004; the state attracted some of the largest and most Capital: Bhubaneswar respectable names resulting in Area: 1,55,707 square kilometres Orissa at a glance Memorandums of Understanding Population 2001: 3,68,04,660 FDI projects in Orissa (MoU) of around Rs 600,000 cr “Orissa shall emerge as a Per capita income 2005-06: Rs. 13,979 Sector Companies and the prospect of generating centre for metals significant employment and spin- Urban population: 14.97% Steel POSCO, Arcelor Mittal business in India and off opportunities; per capita Literacy rate: 63.08% (all-India 65%) Alumina/aluminium Dubai Aluminium, Alcan, Vedanta attract investments up to investment in Orissa was Districts: 30 Titanium products JSC Technochim Holding (Russia) USD 30-40 billion over Rs. 78,569 in December 2007 Towns: 138 Lime Lhoist (Belgium) the next five years.” compared to the national average Villages: 51,350 Ports Noble Shipping (Hong Kong) Morgan Stanley Global of Rs. 22,669. Economy Principal crops: Rice, pulses, oilseeds Industrial gas Air Liquide (France) Forum – 2005 Major investments Major industries: Steel, aluminium, power, cement, The change of policy and other mineral-based and paper necessary infrastructure development18 19
A number on Orissa Bhubaneswar through the PPP route university with a projected annual will widen the state’s pharmaceutical intake of 100,000 students across 95 industry. The state is also planning to disciplines; other national level commission an integrated textiles park technical and health institutes are also Rs. 78,569 54.97% 71% and auto complex at Choudwar along under development. Per capita investment in Orissa, Percentage of India’s bauxite Percentage of India’s graphite ore with extensive rural electrification December 2007 reserves located in Orissa reserves located in Orissa programmes. Besides, the Airport Support for industry: harmonious Authority of India has earmarked worker relations investments for Bhubaneswar airport’s Orissa comprises about 14.3 million modernisation. workers in an atmosphere marked by Tourism investments: Orissa’s industrial harmony. This is reflected in Rs. 22,669 95.26% 31% the fact that of the 45 strikes that took Per capita investment in India, Percentage of India’s chromite Percentage of India’s China clay tourist inflow has increased from 2.9 place in India between January 2007 million in 2000 to 5.3 million in 2006; December 2007 reserves located in Orissa reserves located in Orissa and April 2007, only one occurred in the corresponding inflow through Orissa. tourist expenditure increased from USD 213 million to USD 600 million. Support for industry: This is likely to attract growing infrastructure investments. Orissa has 238,000 km of roads 32.54% 92.46% 18% (3,508 km national highways, 5,102 km Percentage of India’s iron ore Percentage of India’s nickel ore Percentage of India’s dolomite Support for industry: human reserves located in Orissa reserves located in Orissa ore reserves located in Orissa state highways and 30 km state resource development expressways). Over USD 5 bn Orissa is optimistic of meeting the investment is expected in the state’s needs of the growing people and road sector and around USD 1.5 bn competence needs of industrial investment in its railways in five years. investors. The state is emerging as a hub for engineering, management and The state has four ports along its 480- 24.48% 67% 65% km long coastline, enhancing capacity Percentage of India’s coal Percentage of India’s manganese Percentage of India’s pyrophilite medical education in eastern India. It in some and commissioning new ones. reserves located in Orissa ore reserves located in Orissa reserves located in Orissa possesses nine universities, 88 engineering/MCA colleges and 18 The result is that over the last five years, medical colleges. The result is that Orissa has seen a marked increase in around 20,000 B.Tech/MCA students, income and decline in poverty. The 3,000 management professionals and state’s economic growth has risen from 50,000 general graduates pass out 4% in the 1990s to about 8.5% in the last Orissa’s Industrial Policy Resolution, 2007 Orissa’s State Reservoir Fishery Policy annually from Orissa. Over the five years (all-India average 7.8%). The foreseeable future, even this number is per capita net state domestic product Transform Orissa into a vibrant industrialised state Generate gainful rural employment with special expected to increase significantly; increased from Rs 10,567 to Rs 20,240 Enhance the share of industries in State Gross Domestic Product reference to the fishing communities Vedanta is investing in a world-class between 1999-2000 and 2006-07. Promote orderly and environmentally sustainable industrial growth Introduce systematic management strategies both Promote Orissa as a major manufacturing hub for conservation and sustained fish production Maximise employment generation opportunities Attract increasing investments from private sector Maximise linkages between micro, small, medium and large industries and Stimulate entrepreneurship for fishery sector with make efforts for the development of ancillary and downstream industries special reference to reservoir fishery Orissa’s Information Technology Policy Substitute traditional methods by the introduction Promote employment intensive sectors such as handicrafts, handlooms, Khadi Provide easy access to information and village industries, coir and salt of advanced technology in reservoir fishery Encourage transparency in governance practice Promote sectors such as information technology, biotechnology, agro, marine Develop skill among fishermen/fisherwomen in Promote door step delivery of host of services and food processing, tourism, textiles and automotive industries reservoir operation and organisational strengthening Increase employment opportunities Promote revival and rehabilitation of potentially viable sick industries, Generate substantial revenue for the state Offer a hassle-free and business friendly environment to the ICT entrepreneurs especially in the micro, small and medium enterprises (MSME) sector Source: http://business.gov.in /investment_incentives Narrow down the digital divide Maximise industry and institution linkages in areas such as manpower /investment_policies_ori.php Attract investments into the state planning and research and development, among others Achieve high export turnover and economic growth Make concerted efforts for balanced regional development20 21
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