ORISSA ECONOMY AT A GLANCE

Macro-economic trend
• Rise of 13.8% in SGDP and 4.69% in per capita income wrt to
previous year
• Orissa’s debt has fallen from 343 percent in 2001/02 to 201
percent in 2007/08. As a proportion of GSDP, it has declined
from 63 percent to 50 percent.
• Agriculture is the main stay of the economy
• Low cost labor and availability of skilled workforce
• Predominance of organized industrial activity
• Orissa has witnessed a strong inflow of Investments in the
Manufacturing sector
• Skilled as well as Unskilled labor is available in the state
Factors influencing investment climate include:
• Availability and ease of use of factor inputs such as land and labor;
• Availability of adequate physical and social infrastructure, such as power,
telecom, urban infrastructure, water supply, hospitals, and educational
institutions;
• Governance and regulatory framework in terms of rules and regulations
governing entry, operation, and exit of firms, stability in regulation,
integrity of public services, law and order and investment facilitation; and
• Provision of incentives and access to credit

DEMOGRAPHY
• Total population of Orissa is 36,706,920.
• 18,612,340 (50.89%) are male and 18,094,580 (49.11%) are female.
• 972 females per 1000 males.
• Urban Population – 15%, Rural Population – 85%
• The literacy rate is 63.61% with 75.95% of males and 50.97% of
females being literate.
• Below the poverty line in 1999–2000 was 47.15% which is nearly
double the all India average of 26.10%.
• Scheduled Castes and Tribes form constituting 38.66% of the State
population
• Death rate is 9.5 per 1000 persons
• Infant mortality rate is 75 per 1000 live births
NEEDS OF INDUSTRIES
✔ LAND : It is the primary requirement as far as any infrastructural
development of industries are concerned. Care should be taken to
acquire the barren lands leaving aside the fertile ones for agricultural
development as it consists the main stay of Orissa economy.
• Acquisition problem wrt (POSCO, Tata Steel)
• Huge list of projects that have successfully acquired land
and many already in operation
• But there is a problem, not just in Orissa, but in India
– They are being addressed at the national as well as
state level
– E.g. R & R policy are being updated so that they give
people a stake in the success of the project
• Some suggestions
– Connect with locals; Make them feel that the company
cares about them
– Don’t leave everything to the government
– Hire experienced local managers
– Keep a low profile

✔ POWER:
○ Orissa is a power surplus State
○ Orissa has successfully carried out power sector reforms -
Distribution privatized
○ Orissa was the first state in the country to embark upon reforms
in the power sector
○ Hydro Power Corporation Limited (OHPC) has an installed
capacity of over 2000 MW hydro-power generation with few more
projects in the pipeline
○ The state has ten important river systems. Mahanadi River is the
fifth largest river in the country in terms of flood discharge
(45000 Cusecs) and flows in the centre of the state from west to
east
○ The Hydro Potential of the state at 60% load factor is assessed to
be 2850 MW
 ○ Orissa also has 45000 MT power grade coal deposits in Mahanadi
Coal Field and Talcher coal Fields area and can sustain 75,000
MW of power for 100 years.
○ Major players include REL, NTPC and AES

 Industrial Tariff indicated is average of HT and EHT

 Industrial Tariff is average of all categories of Industries

4.50
4.00
 State Industrial Power Tariff
ORISSA - (Rs./ KWH)
PRESENT
POWER Orissa 2.90
SCENARIO
West Bengal 3.50
Peak Demand :1850 MW
Jharkhand 3.20
Average Demand :1300 MW
Andhra capacity in the
The installed 3.80
: 4178.375
StatePradesh MW
HydroKerala : 1918.875
3.50
MW
Gujarat
Thermal 4.00
: 880.00 MW
Total
Maharashtra : 2798.875
5.00
MW
Haryana 4.00
Total CPP : 1379.5 MW
Grand total : 4178.375
 MW
The annual requirement of
: 11,116 MU
energy is around

Problems of power sector

• Inadequate power generation
• Lack of optimum utlisation of existing generation capacity
• Inadequate inter regional transmission link
• High T&D losses, theft and skewed tariff structure
• Slow pace of rural electrification
• Lack of grid discipline

✔ INFRASTRUCTURE:
A list of the major contributors to the Orissa economy and leading
industries of the state are:
• Agriculture
• Forest based husbandry
• Minerals
• Cement
• Paper
• Sugar
• Fertilizer
• Iron and steel
• Handloom
• Information and technology

➢ Education infrastructure
• During 2004-05, there were 45,700 primary schools
with over 5.2 million enrollment
• Orissa has 9 Universities, 88 Engineering/MCA colleges
and 18 Medical colleges
• The Industrial Policy aims to improve technical
manpower and upgrade the skills of local
entrepreneurs
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

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

E-Governance in Orissa
A good e-governance infrastructure is already in place with the deployment
of GRAMSAT, Secretariat LAN and the state portal. The Government of
Orissa has placed high priority to enable government-to-government and
government-to-customer services through e-governance. A number of
projects cutting across departments have been implemented including land
records, registration, transport, treasuries, commercial tax, e-Shishu, web-
enabled monitoring of anti poverty and rural development schemes. The
Government has also initiated projects like State Wide Area Network
(SWAN), Common Service Centre (CSC), State Data Centre (SDC) and many
other new projects, notably e-procurement, RFID-based food grain delivery
and monitoring.

✔ CONNECTIVITY:

➢ Roads
• Orissa has 238,000 kilometres of roads including 3,508
kilometres of National Highways; 5,102 of state Highways
and 30 kilometres of State Expressways
• Participation of Private sector is being encouraged in the
construction of these Highways
• Some of the prestigious projects are the Bhubaneswar-
Cuttack highway, Talcher-Gopalpur highway and the
construction of the 4-Lane
Cuttack-Paradeep highway

➢ Civil Aviation
• A domestic airport is located at the state capital
Bhubaneswar
• Direct links are available from Bhubaneswar to places like
Delhi, Kolkata, Chennai, Nagpur, Mumbai and Hyderabad
• There are 13 Airstrips and 16 Helipads at different places
of the state

➢ Waterways
• Paradeep Port in Jagatsinghpur district of Orissa is a major
port of India
• Paradeep Port handled 38.52 million tonnes of cargo in
2006-07 of which 24.85 million tonnes were exports and
13.65 million tonnes were imports
• The Port is connected with Broad-gauge Railway system of
the south-eastern Railway and is also served by National
Highway No. 5A
 • Gopalpur Port in Ganjam district and Dhamra in Bhadrak
are other important ports in the state being upgraded
• The state government is encouraging private firms to step
into the port sector to create infrastructure for several
upcoming metallurgical projects in the state

➢ Railways
• At the end of 2005-06, total railway route length in Orissa
was 2340 kms
• Orissa is a link between eastern and western India through
railway network of South-Eastern and East-coast Railways
• With the commissioning of the Talcher-Sambalpur Railway
a vital link has been established between coastal and
western Orissa

✔ SKILLED LABOR:
Skilled as well as Unskilled labour is available in the
state
• As per Census 2001 the total number of workers in the
state are roughly 14.3 million
• According to Ministry of Labour and Employment,
Government of India, of the 45 strikes that occurred All-over
India between January 2007 to April 2007, only 1 occurred in
Orissa.
• The proportion of male workers to male population and
female workers to female population in 2001 stood at 52.5%
and 24.7% respectively.
• Orissa is one of the few pioneering states to reserve 30%
jobs for women in all the government departments and
public undertakings
• At the end of year 2006-07 the unemployment was 0.97
million in a total labour force of 14.3 million
✔ WATER: It is one of the inevitable inputs for any industrial
development . Orissa have plenty of rivers, waterfalls and lakes to act
for this cause.
 Major rivers – Mahanadi, Brahmani, and Baitarani.
 Lakes – Chilika, Ansupa , Pata
 Dams -Hirakud Dam,Indravati Dam, Kolab Dam
 Many hydel power projects are coming up to ensure proper
availability of water

✔ LAW AND ORDER: Orissa is a peaceful State. Industrial unrest is

minimal. The State Government have issued strict instructions to law
and order and order and labour authorities to ensure peaceful
conditions in industries and to strive for a harmonious relationship
between management and labour in industrial establishments. The
labour machinery will continue to be active and vigilant for redressal of
grievance for maintaining a cordial relationship in industrial
establishments so that production is not hampered.
But some case of social unrest have been noticed as far as land
acquisition was concerned by POSCO and TATA STEEL which should be
dealt with strong hands in future to attract more no of investors in
Orissa

KEY FACTS AND FIGURES

 IN A NUTSHELL
✔ Orissa is one of the biggest producers of iron and steel in the
country
✔ The state already accounts for about 32.9% of all the iron ore
deposits in India thereby making it the favourite designation
for Domestic and International players to set up their Iron and
Steel Plants.
✔ Orissa has substantial reserves of other minerals that go into
steel making, like coal, dolomite and limestone.
✔ In addition, there are abundant water resources, surplus
availability of power, a reasonably good road and rail
network, an existing port facility at Paradip and two more new
ports coming up at Gopalpur and Dhamra