ADVANTAGE ORISSA

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Come. Invest. Grow.
ADVANTAGE ORISSA INDUSTRIES
DEPARTMENT GOVERNMENT OF ORISSA
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INTRODUCTION
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POLICY INITIATIVES
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INSTITUTIONAL FRAMEWORK
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INVESTMENT OPPORTUNITIES
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INTRODUCTION
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ORISSA
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Orissa an overview
ORISSA at a glance
Capital Bhubaneshwar
Area 1,55,707 sq. km
Population 2001 3,68,04,660
Per capita income 2009-10 INR24,098
Urban Population 14.97
Literacy rate 2007-08 68.3
Districts 30
Towns 138
Villages 51,350
Principal crops Rice, pulses , oilseeds
Major industries Steel, Aluminium, power, cement, mineral based, paper
Nickel ore 92 of total India reserves Chromite Reserves 95 of total India reserves Bauxite reserves 55 of total India reserves
Manganese ore 40.4 of total India reserves Iron ore 33 of total India reserves Graphite ore 29 of total Indias reserves
Pyrophilite 36 of total India reserves Fire clay 25 of total India reserves Coal 24.5 of total India reserves
Source Economic Survey of Orissa201011 Indian
bureau of mines
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Three Years moving average of annual growth rate
of GDP at constant prices of ODISHA vis-à-vis
India
Source based on CSO database, CSO, 2010
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Growing industrial sector leading the economic
growth in Orissa

• Contribution of industrial sector 22.7
• Future Additional ouput
• Steel-77 mtpa
• Alumina-8 mtpa
• Oil refineries-15 mtpa
• Cement-30 mtpa
• Power-33,000 MW
• Constitutes 10 of Indias steel-generation
  capacity and 25 of its iron-ore reserves.

Source CMIE
Industrial sector has averaged real annual growth
of 12.6 during the first three years of 11th
five year plan.
Source Economic survey of Orissa 2010-11
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Total envisaged investments in Manufacturing
Sector ( in billion)
  State 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009
  State Rank   Value Rank Value Rank Value Rank Value Rank Value
ORISSA 1 1917 1 2780 1 2534 1 3255 1 3242
Jharkhand 2 1594 2 1615 2 1987 2 2695 2 3043
Gujarat 3 828 3 1267 3 1838 4 1968 3 2872
West Bengal 8 292 5 836 5 1174 3 2236 4 1960
Karnataka 5 492 6 740 6 783 7 1075 5 1718
Andhra Pradesh 4 507 4 990 4 1623 5 1600 6 1462
Tamil Nadu 6 481 9 374 10 520 6 1242 7 1345
Chattisgarh 7 308 11 327 7 608 8 1024 8 1062
Maharashtra 12 191 7 453 8 594 9 901 9 1028
Rajasthan 15 131 18 94 17 125 16 142 10 670
Overall India 8135 11635 14047 19078 21279
Source based on CMIE_CAPEX database, 2010
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Investments in Orissa are on a rise

• Outstanding investments in Orissa witnessed 30
  y-o-y growth in December 2010.
• Increase in implementation rate for the
  announced projects
• FDI in the state is on a rise, with 65 of FDI
  being recorded in the last three years.

Source CMIE
Source CMIE
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POLICY INITIATIVES
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Policy Reforms

• Power sector Reform
• First State to undertake power sector reforms
• Electricity Reform Act 1996
• Unbundling of generation, transmission and
  distribution
• Privatization of generation distribution
• Public Enterprises Reforms
• Enterprise specific initiatives privatisation,
  closure and restructuring
• VRS
• Social Safety Net
• E-governance

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Policy Reforms

• Industrial Policy Resolution (IPR) - 2007
• MSME Development Policy-2009
• Public Private Partnership Policy-2007
• Resettlement and Rehabilitation Policy (RR)
  2006
• Agriculture Policy
• State Water Policy
• Port Policy
• Policy Guidelines on Power Generation Non-
  Conventional Energy Sources
• Policy Guidelines for raising Energy Plantations
  and Bio-diesel Production
• Food Processing/PPP/SEZ/CSR/Mineral Policy In
  pipe line

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Fiscal Incentives as per IPR07

• Land Shed at special rates
• Stamp Duty Exemption
• Entry Tax Exemption
• CST not exceeding 2 for 10 years limited to
  100 of Fixed Capital Investment (FCI)
• VAT Reimbursement
• ? Priority Sector-75 of VAT paid for 5 years
  limited to 100 of FCI
• ? Thrust Sector-75 of VAT paid for 10 years
  limited to 200 of FCI
• Interest Subsidy
• ?_at_ 5 for 5 years limited to- - Rs 100 lakh
  (appx. USD 1 million)
• POWER
• ? 100 Electricity Duty exempted for 5 years up
  to 5 MW
• Conditions apply

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INSTITUTIONAL FRAMEWORK and COMPETITIVE ADVANTAGE
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Team Orissa driving growth
The objective of Team Orissa is to attract
investment to the state by highlighting key
sectors of potential growth and promote
industrial facilitation

• Key stakeholders
• Chief Minister Captain of Team Orissa
• Industrial Promotion and Investment Corporation
  of Orissa Limited (IPICOL) State Level Nodal
  Agency for Investment Promotion and Industrial
  Facilitation.

• Task performed
• Guidance and assistance to entrepreneurs
• Designing growth strategies
• Investment promotion initiatives
• Single point contact for investors
• Aid and feedback in policy formulation

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Team Orissa single window system
High-level clearance committee Chief Minister
District-level clearance committee District
Collector
State-level clearance committee Chief Secretary
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Low cost of doing business
The regulatory reform package introduced by
Government of Orissa, combined with its capacity
development initiatives, led to a significant
decline in the cost of doing business in Orissa.
Competitive advantage
Source IBEF
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INVESTMENT OPPORTUNITIES
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Approved investments as on 1 January 2011
Industry sectors Number Investment (INR billion)
Steel, stainless steel and allied 67 2,643
Power (including solar) 42 2,117
Aluminum and alumina 9 859
Auto components/Complex 3 162
Cement 19 95
Ferro alloys 7 31
Shipbuilding 1 22
Paper 4 17
Textile complex 1 15
Food processing 3 7.4
Others (petro coke, caustic soda, titanium dioxide, oil refinery, asbestos, industrial gases and downstream parks) 28 1,592
Source Team Orissa
Orissa ranks the highest among other states in
India in total envisaged investments for the
manufacturing sector.
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Approved Projects-Sector wise

• Maximum Investment value of approved projects
  are in Iron Steel Sector followed by Power
• Maximum no. of approved projects are in Iron
  Steel Sector followed by Power
• Air Air Products sector has received minimum
  Investments
• Other sector include investments in Fertilizers,
  Chemicals , Mining Textiles

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Approved Projects District wise Investments
0.69
Maximum Investment value of approved projects
are in Keonjhar followed by Dhenkanal
Angul District Gajapati, Phulbani
Nuapada have not received any project
proposals.
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Infrastructure in Orissa
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Road/Rail Orissa has a well developed rail and
road network
Investments worth US5 billion have been planned
to upgrade road infrastructure for the next five
years. Outstanding investments in January 2011
totaled INR121 billion.

• Orissas road density better than the all-India
  average.
• Orissa has 242,736 km of road length which
  includes 3704 of national highway and 5102 of
  state highway
• Major transport corridor between East and South
  passing through Orissa

Key Road projects

• Bhubaneswar-Puri (NH-203) four-lane highway
  project INR5 billion
• Chandikhol-Jagatpur-Bhubaneswar (NH-5) six-lane
  highway project INR12.5 billion
• Rimuli-Roxy- Rajamunda (NH-215) INR14.1 billion

• Orissa has a total rail length of 2,439 Km as of
  2008-09 which includes 54 Km of narrow guage
• It serves as a strategic link between eastern and
  southern India
• The headquarters of Eastern Railway is
  headquartered at Bhubaneshwar.

Key Rail projects

• Khurda-Balangir (289 Km) line connecting coastal
  areas to Western Orissa INR7 billion
• Haridaspur Paradeep (82Km)
• INR5.72 billion
• Lanjuigarh road Junagarh (56 Km) INR1.7
  billion

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Biju Patnaik Airport connecting Orissa to the
rest of the world

• Domestic airport in Bhubaneshwar
• Biju Patanaik Airport
• Direct links New Delhi, Kolkata, Chennai,
  Mumbai and Hyderabad
• New domestic terminal is planned with an
  investment of US31.3 million
• Second airstrip near the industrial region of
  Jharsuguda airstrip
• Currently, the state has 17 airstrips and 16
  helipads.

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Ports cargo traffic to reach 100 million
tonnes by 201617

• Principal maritime state with a 480-km coastline
  (6 of India).
• Bulk commodities such as coal, limestone, and
  crude and petroleum products are primary
  constituents of cargo.
• Paradip Port is the largest port of Orissa
  handling bulk of the trafiic.
• Gopalpur Port, the second-largest port in Orissa
  handled 0.24 million tonnes of cargo in FY09.

Source Ministry of Shipping
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Paradip Indias 5th largest port
Paradip Port is a main port of trade for the
eastern part of the country, serving the states
of Orissa, Andhra Pradesh, Madhya Pradesh, Bihar
and West Bengal, among others.

• Paradip Port is equipped to handle almost all
  types of cargo
• Coal (34), iron ore (23) and petroleum oil and
  lubricant (POL) (20) constitute the major chunk
  of traffic handled by Paradip Port
• Orissa is expected to handle 1/6th of the total
  cargo traffic in India by 2016 with Paradip as a
  major transport hub
• Major expansion plans at Paradip are going on to
  meet the future traffic
• A separate SEZ is expected to be established in
  Paradip

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Attractive Investment Policies
Investor-friendly policies introduced in the state
Orissa Public Private Partnership Policy 2007
Create a robust dispute redressal mechanism/regulatory framework for PPP projects. Provide viability gap funding (VGF) where essential projects are intrinsically unviable. Create the Orissa Infrastructure Development Fund (OIDF) to facilitate the implementation of the policy objectives.
Orissa Tourism Policy 1997
Water sports and water-transport services will be encouraged. Incentives to hotels and other tourism-related activities will continue. Efforts are being made to establish a convention complex and golf course in Bhubaneswar. Marketing and publicity of tourism potential and the facilities will be enhanced. Human resource development will be given priority.
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Special Economic Zones

• Notified
• SEZ for IT/ITES Industries in Infocity,
  Bhubaneswar (Infocity SEZ) IDCO
• Aluminium SEZ - Hindalco Industries Limited at
  Lapanga, Sambalpur
• Aluminium SEZ -Vedanta Aluminium Limited at
  Jharsuguda
• Mineral SEZ - Saraf Agencies Private Limited at
  Chhatrapur, Ganjam
• Formal Approval
• SEZ for IT/ITES/BPO industries in Gaudakasipur,
  Bhubaneswar (Knowledge Park SEZ) - IDCO (Info
  Valley)
• Multi-Product SEZ - Gopalpur SEZ Limited at
  Gopalpur (TATA)
• Solar Energy SEZ - Lanco Solar Private Limited
  at Ramdaspur, Cuttack
• In-Principle Approval
• Multi-product SEZ near Paradip IDCO
• Multi-Product SEZ- POSCO India Limited in
  Jagatsinghpur district
• Textiles Garments SEZ - Welspun- Anjar at
  Choudwar, Cuttack

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INFO Park, Bhubaneswar

• 54 acres state-of-the-art IT PARK opposite
  Infocity in Chandaka
• Project to offer over 40 lakh sft. of quality
  built-up space
• DLF Limited selected as Project Developer

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Info Valley

• 202 Ha of land parcel- Outskirt of Bhubaneswar
• 130 Ha IT Free Trade Zone
• 72 Ha Township
• Demand Assessment done by M/s Knight Frank Pvt.
  Ltd
• Infosys Technology Ltd being considered as
  Anchor Tenant
• Opportunities for firms in IT Sector to set up
  their Export Oriented Units within the FTZ

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PCPIR Region

• 284.15 sq.km (70214 acres) in Jagatsingpur and
• Kendrapara districts
• Selection Criteria
• Feed stock sourcing and sea connectivity
• Proximity to Refinery-cum-Petrochemical Complex
• Of IOCL Feedstock Source for downstream units
• Proximity to Paradip Port
• Connectivity potential to upcoming Dhamra and
  Astrang Ports
• Hinterland connectivity
• Proximity to NH-5A Connectivity to Golden
  Quadrilateral
• Proximity to SH-12 Connectivity to
  Bhubaneswar-Cuttack Metropolitan Region
• Proximity to Cuttack-Paradeep and
  Haridaspur-Paradeep links of ECR Connectivity to
  Chennai-Howrah Trunk Line
• Proximity to water sources in the region
• Land availability
• Proximity to coast for marine disposal of treated
  effluents

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INVESTMENT OPPORTUNITIES In Petroleum
Petrochemicals Sector

• Investment opportunities in Paradeep PCPIR USD
  57,111 Mn
• Sector-wise investment estimates based on
• Target Sectors identified Master Plan
  provisions
• Prevailing industry norms and professional
  judgement
• Total direct indirect employment at Paradeep
  shall be 0.65 Mn people

Sl Sector Investment (in USD Mn)
1 Petroleum Petrochemicals 47916.67
2 Chemicals Fertilizers 729.17
3 Ancillary 729.17
4 Housing Allied Infrastructure 4895.83
5 External Infrastructure 2840.42
Total 57111.26
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Special Investment Region at Dhamra

• Strategically located near the Steel cluster of
  ODISHA
• Upcoming Port at Dhamra (USD 615 Mn. in 1st
  phase)
• Draught for bigger vessels (18.00 mts)
• Dedicated Utilities Corridor (Rail Road
  Corridor)
• Proposed ship building (USD 325 Mn)
• Cement, Power Allied Industries proposed
• Access to Kolkata Chennai Freight Corridor
• Proximity to the Proposed National Gas Grid
• Recent Natural Gas finds by Reliance,
  GAIL-Gazprom ONGC on the offshore
• Availability of Land Parcels for development

Dhamra is being planned for Special Investment
Region Spreading over an area gt 150 sq km.
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Downstream Aluminium Park

• 210 acres at SP plant(approx 6 kms from Smelter
  unit) at village katarbaga ,Lapang
• At Jharsugda

HINDALCO

• 224 Acres land near the NALCO Smelter

Down stream Industrial Parks

• 300 acres Steel Park at Parang, Angul

JSPL

• 250 acres Stainless Special Steel Park at
  Sundargarh

• 220 Acres Stainless Steel Park at Kalinganagar,
  Jajpur

Jindal Stainless Ltd
Bhusan Power Steel Ltd

• 530 acre steel park at Sambalpur

Bhusan Steels Ltd

• 1500 acre steel park at Meramandali, Angul

• Already set up a auto component unit at Mania,
  Choudwar

• 500 acre auto component unit at Mania ,Choudwar

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Food Park, Khurda

• 162 acre Park for food processing industries
• Central assistance of Rs. 400 lakhs envisaged
  against project cost of Rs. 990.73 lakhs. Rs.200
  lakhs GoI grant received and utilised.
• Required infrastructure like external linkages,
  internal roads, power supply, water supply,
  drainage, street lighting etc provided
• Cocacola, Denzong Brewery, McDowel Alcobev,
  Mamata Agro Ind. Etc. are major occupants within
  the Park

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Orissas food processing industry an emerging
investment destination
Foreign government organization
Bangladeshi food processing and manufacturing
firm Pran (Programme for Rural Advancement
Nationally) Group has announced plans to setup
food processing plants in ODISHA
Ghana Government has expressed interested for
setting up cashew- processing unit in Ganjam
Taiwan has expressed interest to import seafood
from ODISHA and invest in ODISHAs food
processing and other industries
Shimpo Seafoods
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Outlook
Inherent Resources
Government initiatives
Investments

• High proportion of cropped area in total land
  utilization
• 10 agro-climatic zones and 8 soil types
• High cropping intensity
• 4th largest vegetable producing state of India
• 3 and 4 contributor to the countrys
  floricultural and spices production respectively
• Long coastline

• Setting up of food parks in the Khurda region
• Increasing interest of both large national and
  foreign corporate, and several MSMEs for
  investment
• Britannia, Nestle, and Parle Agro - Approved
• NSL Group, Indo Nissin, PRAN Group - In process
• Evincing of interest by the Taiwans and Ghanas
  Government for investment
• Plans of foreign players to enter ODISHAs food
  processing industry

• Futuristic 2008 Agriculture policy subsistence
  to profitable commercial agriculture
• Watershed mission and irrigation projects
• Livestock breeding farms, poultry hatcheries and
  fodder farms
• Fishery development policy, state reservoir
  fishery policy, Welfare schemes for fisherman,
  fishfed for marine industry

Presence of large resources, upcoming investments
and encouraging government initiatives to help
Orissa achieve its full potential in the food
processing sector
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Food processing key regions
Khurda region (comprising Khurda, Cuttack and
Puri districts) is emerging as a food-processing
hub as it possesses multiple resources such as
egg, milk and vegetables
Ganjam is a resource-rich district in terms of
milk, egg, fishing, fruit and vegetables
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PORTS OF ORISSA
Bichitrapur (Talashari)
Subarnarekha Mouth (Kirtania)
Bahabalpur
Chandipur
Inchudi
Chudamani
Dhamara
Barunei Muhan
Jatadhar Muhan
Astaranga
Baliharchandi
Palur
Gopalpur
Bahuda Muhan (Sonepur)
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Snapshot of Opportunities - TOURISM
Buddhist Tourism Dhauli, Jajpur, Jirang
Leisure Tourism
Beach Tourism-Eco /beach resorts,spa sports
Special Tourism-Samuka, talasari
Riverine Tourism Cruise Tourism
Eco Similipal, Bhitarkanika, Satkosia
Chilka Thematic Development
Luxury Tourist Train
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Investment Opportunities- Eco Tourism

• Eco-Tourism
• Important eco-tourism assets at
• Simlipal Tiger reserve National park ,
• Bhitarkanika national park
• Satkosia gorge in Satkosia-Baisipalli sanctuary
• Koraput
• Kandhamal
• Debrigarh (Sambalpur)
• Potential for development of
• Jungle Lodges / Jungle Resorts
• Adventure sports
• Interpretation centres
• Safaris

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Investment Potential Buddhist Tourism

• Products
• Art and Craft Village
• Meditation halls
• Hotels/ Resorts.
• Sound and light show.
• Interpretation centre/library
• Ayurvedic and Spa resort
• Locations for development of Buddhist tourism.
• Dhauli - Bhubaneswar
• Jajpur
• Gajapati (South Asias largest Buddhist Monastery
  at Jirang)
• Cuttack

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PPP OPPORTUNITIES IN TOURISM

• Development of Way side amenities.
• Development water sports 31 locations and
  House boats 15 locations.
• Development of tourist resorts 40 locations.
• Multimedia Laser Show at Dhauli on PPP mode.

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Pharmaceuticals an emerging sector
Growing Indian pharmaceuticals industry

• The Indian pharmaceuticals industry is expected
  to attract US6.31 billion by 2015.
• Diagnostics services are expected to grow at a
  CAGR of gt20 between 2010 and 2012.
• India is expected feature among the top 10 global
  pharmaceutical markets in sales by 2020 with its
  total value touching US50 billion.

Source IBEF
Government of Orissas initiatives stimulating
growth of the Orissas pharmaceutical industry
Cuttack-Bhubaneswar Pharmaceutical Cluster
Konark Knowledge Park

• Composed of 54 pharmaceutical units, including
  manufacturers of generic drugs.
• Aimed at the Government of Orissas vision to
  increase production from INR400 million to INR1
  billion in five years.
• Facilitating the establishment of an increasing
  number of educational institutions that offer B
  Pharm and M Pharm degrees.

• Aimed at boosting investments in biotechnology
  and pharmaceuticals in Orissa.
• JV with Bharat Biotech International
• Estimated investment value INR1 billion.
• Spread across 64.86 acres.
• To comprise modular laboratories, loaded wet
  laboratories, common equipment facilities, a
  pilot plant and a training center

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Advantage Orissa
Potential Investment Opportunities

• 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, modernization of
  existing units, renewable energy
• Marine fisheries, food processing related
  infrastructure
• Services sector
• Tourism
• Information Technology / ITES

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Advantage 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

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Orissa is breaking out of the Getting Better
mode to reach out to be the Best
Multiple centers of growth self-contained and
high class urban infrastructure
Mix of social and industrial infrastructure -
Campuses instead of colleges - Townships instead
of buildings - Cultural hubs instead of theatres
Offering a globally competitive and attractive
proposition
Hence, we are promoting an overall living and
development experience in Orissa
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Vision of Team 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 Honble Chief Minister,Orissa
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Key Contacts

• Principal Secretary to Government, Department of
  Industries, GoO
• Orissa Secretariat,
• Bhubaneswar-751001, INDIA
• Tel.- 91-674-2536640/ 2390253 FAX-
  91-674-2536819/ 2396299,
• Email indsec.or_at_nic.in URL www.orissagov.in
• Industrial Promotion and Investment Corporation
  of Orissa Limited (IPICOL),
• (Secretariat of Team Orissa)
• IPICOL House, Janpath,
• Bhubaneswar-751022, INDIA
• Tel.- 91-674-2543461/ 2543756 FAX-
  91-674-2543766
• Email cmdipicol_at_teamorissa.org /
  info_at_teamorissa.org
• URL www.teamorissa.org / www.ipicolorissa.com
• Director of Industries,
• Killa Maidan, Buxibazar,
• Cuttack-753001, INDIA
• Tel.- 91-671-2301892 FAX- 91-671-2307331/
  2301227
• Email diorissa_at_ori.nic.in URL www.ori.nic.in/dior
  issa

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Thank You

• www.teamorissa.org
• www.orissagov.nic.in

Come. Invest. Grow.