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Emerging East Orissas Turn Around

• MP Mr. Baijayant Panda
• and
• Professor Chitta Baral
• Arizona State University
• chitta_at_asu.edu

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ORISSA
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Structure of Presentation

• Orissas vision
• Competitive advantages
• Orissa the State on path of progress
• Human Resources Development
• Infrastructure
• Opportunity Orissa

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State 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

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Vision of Orissa

• To usher in balanced socio-economic growth
  of Orissa that hinges on sustainable development
  with strong fundamentals of industrial growth,
  right harnessing of natural resources and
  actualization of employment potential.
• Shri Naveen Patnaik
• Honourable Chief Minister
• Orissa

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Did you know this about Orissa?
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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 Indias 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)

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Did you know this about Orissa? 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

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Emerging Ports
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Power Tariff

• Orissa is a power surplus State
• Orissa has successfully carried out power sector
  reforms - Distribution privatised

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Density of Roads

• Road length per 1,000 square kilometre of area

• Source Planning Commission, Statistical Abstract
  of India

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Number of Strikes Lockouts

• Number of strikes lockouts (2002)

• Source Indian Labour Year Book, Labour Bureau,
  Ministry of Labour, GoI, 2002
• Industrial Disputes in India, 2001

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Competitive 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 Indias 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

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Competitive Advantages

• 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 ()

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Competitive Advantages

Competitive power tariff
Land bank
Plentiful water
Mineral resources in proximity
Lowest cost producer of Steel / Alumina
Skilled manpower
Government facilitation
Rail connectivity
Investor friendly policies
Port facility
Road network
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Orissa - The state on the moveDevelopments
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 US45 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, LT Dubai
  Aluminium, etc

Rourkela Steel Plant
Workshop
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Orissa - The state on the moveDevelopments
during the last three years

• 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
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Orissa - The state on the moveDevelopments
during the last three years

• 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
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Orissa - The state on the moveDevelopments
during the last three years

• 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 gt13)
• 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

NALCO
Exotic Beach at Puri
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Orissa - The state on the moveDevelopments
during the last three years

• 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

Paradeep Port
Infocity, Bhubaneswar
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Orissa - The state on the moveDevelopments
during the last three years

• 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
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Recent FDI projects in Orissa

• Largest FDI of US12 Bn by Korean Steel Giant
  POSCO in steel sector
• Other big FDI projects

Biju Patnaik International Airport
Nine hole Golf Course at Infocity
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Infrastructure

• ROADS RAILWAYS
• Monitoring by Prime Ministers 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

XIM, Bhubaneswar
Road in PPP mode

• Source Indiastat

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INDUSTRIAL ZONES AND BIG PORTS
Zone III
Zone V
KIRTANIA PORT
Zone I
Zone IV
DHAMRA PORT
Zone II
PARADEEP PORT
Zone VI
GOPALPUR PORT
Circle I Steel, Power, IT, Tourism Ports Zone
III Mining, Power, Steel Zone VI Alumina
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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
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Bhubaneswar-Puri area as a knowledge hub soon to
have 25 universities

• Existing Universities

• Upcoming 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)

• 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

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Vedanta University Master Plan (Ayers St. Gross
designed) For 100,000 students and 500,000 city
residents Plan
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Vedanta University Plan Master Plan\
Building Uses
Academic Housing Administration Library St
udent Union Performing Arts Recreation
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University Master Plan
Academic Precincts
Research Liberal Arts Classics Journalism Architec
ture Facilities Humanities Education Arts
Music Professional Studies Performing
Arts International Studies
Recreation Library Health Science Engineering Bios
cience Sciences Medicine Hospital Business Dentist
ry Nursing Law Graduate Studies
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Vedanta University Phase 1
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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.

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Medical Colleges in Bhubaneswar-Puri area

• Existing

• Upcoming

• SCB Medical College
• HiTech Medical College
• Kalinga Institute of Medical Sciences
• SUM Hospital and Medical College

• Medical College of Vedanta University
• AIIMS Bhubaneswar
• Capital Medical College
• Medical College of Sri Sri University
• Medical College of National University

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Human Resources Development in Orissa

• 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
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Bhubaneswar and Chandaka
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Near Deras Dam in Chandaka
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Bhubaneswar, Puri and Konark
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Bhubaneswar and Chilika lake
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Chilika Lake
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Orissa What the experts say

• Mckinsey 2005 Orissas 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."

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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
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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
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Opportunity 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

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Opportunity 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

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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.

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The future is NOWand HERE!!
Thank You

• Websites
• www.orissagov.nic.in
• www.teamorissa.org
• www.idcoindia.com
• www.orissagrowth.org

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Questions?
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Recent disturbances
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KBK and Kandhamala Another frontier of India
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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
• Dont leave everything to the government
• Hire experienced local managers
• Keep a low profile

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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 CMIEs 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 Orissas 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.

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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 states 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, Orissas 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.

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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 states 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.

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Ancillary Business Potential

Utilities
DownStream Facilities
Core Specialized Services
General Services
Mother Steel / Aluminium Plant
Unexplored !!!
Support Specialized Services
Township Management
Operations Maintenance
Spares Manufacturing
Supply Chain Logistics
There is an opportunity to convert substantial
parts of Steel / Aluminium/Petrochemical sector
expenditure into Ancillary spend
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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
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Single 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

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Industrial 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

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Share of Registered Unregistered Manufacturing

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

• Source CSO, 2006

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Inflation

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

• Source Labour Bureau
• Note Financial year averages

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Choudwar 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

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PRESENTATION ON STEEL SCENARIO
OF THE STATE OF ORISSA

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MEMORANDUM OF UNDERSTANDING
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INVESTMENT
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PARTIAL PRODUCTION
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PARTIAL PRODUCTION
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PARTIAL PRODUCTION Contd....
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CAPTIVE POWER PLANTAchievement
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MEGA STEEL PLANT PROJECTS IN ORISSA
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STATUS OF MEGA STEEL PLANT PROJECTS
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MEGA STEEL PLANT PROJECTS IN ORISSA
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OTHER STEEL PLANTS
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EMPLOYMENT GENERATED
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REVENUE GENERATED
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Juggernaut

• A force regarded as unstoppable, that will crush
  all in its path
• Derived from the Sanskrit Jagannatha
• 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.

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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

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