Odisha hopes business dream to take off
Ashok Pradhan | TNN | Updated: Nov 16, 2018, 14:27 ISTBHUBANESWAR: Odisha getting investment proposals of Rs 4.19 lakh crore at 'Make in Odisha 2018', second edition of state’s flagship biennial investors’ meet which ended on Thursday, carries the potential of a new industrial revolution in the state.
Politically, the assurances give Naveen enough ammo to boast while campaigning for the simultaneous Lok Sabha and state assembly elections in 2019 when he takes on a rising BJP here. With Odisha having population of 4.19 crore (census 2011), the 4.19 lakh crore figures make interesting catchphrase for Naveen’s BJD, to say Rs 1 lakh per capita investment promise.
Even if projects amounting to 50% of funds proposed materialise, the state economy would leave behind many Indian states making Odisha eastern India’s industrial hub. A major reason why lion’s share of the proposal may actually happen is because, Rs 2.36 lakh crore from 53 investors are in mining, metal and metal downstream industries, bulk of which is meant for expansion of the existing facilities.
“Compared to complete new projects, hurdles like land, statutory clearances and resettlement and rehabilitation problems are lesser in expansions. That’s make these announcements more substantial,” said Santosh Tripathy, a professor of personnel management and industrial relations in Utkal University.
The capacity-increase proposals include Rs 41,400 crore for Rourkela Steel Plant by Steel Authority of India (from 4.5 mtpa to 10 mtpa), JSPL’s Rs 60,950 crore to expand its Angul steel plant from 6 MTPA to 20 MTPA, Tata Group’s Rs 25,000 crore (expansion of steel plant at Kalinganagar from 3 mtpa to 8mtpa) and Vedanta’s Rs 6500 crore for expansion of its Lanjigarh refinery capacity from 1 mtpa to 6 mtpa.
Another huge chunk of investment interests have been shown in Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR), Paradip, which has already established it-self as a preferred investment destination because of Paradip port and because of Indian Oil’s Paradip refinery, that may provide raw materials to industries in petrochemicals and down-stream sector. While West Bengal headquartered Haldia Petrochemicals has evinced interest to invest Rs 70,000 crore, Taiwan’s state-owned petroleum firm CPC Corporation Limited has shown interest to invest Rs 43,000 crore.
Out of the 5.91 lakh jobs that the state hopes from the total business proposals, around 2.61 lakh are in the two sectors of mine-metals and petroleum-petrochemicals.
The Naveen Patnaik dispensation, however, needs to take into account the bottlenecks that may come its way as many promises made earlier could not materialise because of them, market insiders said. Also, most of the promises don’t have an early-timeline. The bitter experience of south-Korean steel major Posco backing out from its 2005 proposal of 12 million tonne steel plant project envisaging Rs 52,000 crore project in Odisha in 2015, decade after a MOU was signed, and ArcellorMittal Group’s 2013 decision to scrap its Rs 50,000 crore steel plant is still fresh in people’s memory.
Stating that another golden opportunity has come for the state, after not succeeding much in the 2005-2015 decade, Utkal Chamber of Commerce and Industry president Ramesh Mahapatra said, “The government should sensitize its officers at middle and lower level so that its policies are implemented in letter and spirit. That will reduce hassles for all investors and help translate promises into rality.”
Jayant Mohapatra, a retired professor of political science from Berhampur University, feels with this conclave Naveen would certainly score political brownie points while the state’s image gets a huge boost. “Though its co-relation with voting may not be known, the biz meet has taken Naveen some notches higher in the battle of perception,” he said.
Industries minister Ananta Das said the conclave reinforced growing investors’ confidence on Odisha, full of natural resources, a stable government and friendly policies. “It’s an occasion to re-dedicate ourselves for state’s growth and welfare with deeper commitments,” he said.
Politically, the assurances give Naveen enough ammo to boast while campaigning for the simultaneous Lok Sabha and state assembly elections in 2019 when he takes on a rising BJP here. With Odisha having population of 4.19 crore (census 2011), the 4.19 lakh crore figures make interesting catchphrase for Naveen’s BJD, to say Rs 1 lakh per capita investment promise.
Even if projects amounting to 50% of funds proposed materialise, the state economy would leave behind many Indian states making Odisha eastern India’s industrial hub. A major reason why lion’s share of the proposal may actually happen is because, Rs 2.36 lakh crore from 53 investors are in mining, metal and metal downstream industries, bulk of which is meant for expansion of the existing facilities.
“Compared to complete new projects, hurdles like land, statutory clearances and resettlement and rehabilitation problems are lesser in expansions. That’s make these announcements more substantial,” said Santosh Tripathy, a professor of personnel management and industrial relations in Utkal University.
The capacity-increase proposals include Rs 41,400 crore for Rourkela Steel Plant by Steel Authority of India (from 4.5 mtpa to 10 mtpa), JSPL’s Rs 60,950 crore to expand its Angul steel plant from 6 MTPA to 20 MTPA, Tata Group’s Rs 25,000 crore (expansion of steel plant at Kalinganagar from 3 mtpa to 8mtpa) and Vedanta’s Rs 6500 crore for expansion of its Lanjigarh refinery capacity from 1 mtpa to 6 mtpa.
Another huge chunk of investment interests have been shown in Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR), Paradip, which has already established it-self as a preferred investment destination because of Paradip port and because of Indian Oil’s Paradip refinery, that may provide raw materials to industries in petrochemicals and down-stream sector. While West Bengal headquartered Haldia Petrochemicals has evinced interest to invest Rs 70,000 crore, Taiwan’s state-owned petroleum firm CPC Corporation Limited has shown interest to invest Rs 43,000 crore.
Out of the 5.91 lakh jobs that the state hopes from the total business proposals, around 2.61 lakh are in the two sectors of mine-metals and petroleum-petrochemicals.
The Naveen Patnaik dispensation, however, needs to take into account the bottlenecks that may come its way as many promises made earlier could not materialise because of them, market insiders said. Also, most of the promises don’t have an early-timeline. The bitter experience of south-Korean steel major Posco backing out from its 2005 proposal of 12 million tonne steel plant project envisaging Rs 52,000 crore project in Odisha in 2015, decade after a MOU was signed, and ArcellorMittal Group’s 2013 decision to scrap its Rs 50,000 crore steel plant is still fresh in people’s memory.
Stating that another golden opportunity has come for the state, after not succeeding much in the 2005-2015 decade, Utkal Chamber of Commerce and Industry president Ramesh Mahapatra said, “The government should sensitize its officers at middle and lower level so that its policies are implemented in letter and spirit. That will reduce hassles for all investors and help translate promises into rality.”
Jayant Mohapatra, a retired professor of political science from Berhampur University, feels with this conclave Naveen would certainly score political brownie points while the state’s image gets a huge boost. “Though its co-relation with voting may not be known, the biz meet has taken Naveen some notches higher in the battle of perception,” he said.
Industries minister Ananta Das said the conclave reinforced growing investors’ confidence on Odisha, full of natural resources, a stable government and friendly policies. “It’s an occasion to re-dedicate ourselves for state’s growth and welfare with deeper commitments,” he said.
FROM AROUND THE WEB
more from times of india Cities
LATEST VIDEOS
City
Bhubaneswar: Fans resort to vandalism after failing to get tickets for Men’s Hockey World Cup01:39- Children’s Day: Schools wear a festive look in Visakhapatnam01:42
- On cam: Passengers save man from coming under moving train in Mumbai00:47
- Caught on Camera: Youth rides on the rim of the bus in Chennai01:30
- Delhi: Yamuna river cleaned for Chhath festival01:22
- Senior pilot of London-bound Air India flight found drunk before takeoff, flight delayed01:59
- Medchal bike rally: Ch Malla Reddy, supporters refuse to give way to ambulance01:05
- Construct masjid, mandir both, says Karnataka Congress minister Zameer Ahmed02:24
- AIADMK slams Rajinikanth for supporting 'Sarkar'01:56
- Arms supplier who sold weapons to Maoists nabbed by Delhi Police01:35
All Comments ()+^ Back to Top
Refrain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks, name calling or inciting hatred against any community. Help us delete comments that do not follow these guidelines by marking them offensive. Let's work together to keep the conversation civil.
HIDE