3.1 Infrastructure is the key to industrial growth. The Government will pay special attention to development of key infrastructure. The Government have carefully considered
the World Bank's Country Economic memorandum - India 1995 (the enabling framework for private investment in infrastructure) and would take appropriate steps to provide a suitable framework for private sector participation in infrastructure development in the State. An infrastructure development Board (IDB) would be set up under the Chairmanship of the Chief Minister with the Chief Secretary as the Member-Convenor to-:
identify key infrastructural requirements,
prepare specific projects/proposals in a timebound manner.
priorities public investment in these projects/ proposals.
decide on the modalities of external funding including private funding/ investment.
review execution of the projects.
The State Government would
encourage private investment/participation in infrastructure projects.
Government would also be prepared to participate in joint ventures for
infrastructure development. In selected cases Government may consider providing
land at concessional rate or free of cost.
3.2 POWER GENERATION
3.2.1 Orissa is the ideal
location of Thermal Power Projects. Large coal reserves in Talcher-IB Valley
Coalfields of Mahanandi Coalfields Ltd. and abundant water in Hirakud and
Rengali reservoirs in close proximity of the coal mines make these locations
perhaps the best sites for pit-head power plants in the country. Unlike
most States in the country, Orissa is at present surplus in power and with
careful planning already undertaken, it will remain so despite speedy growth
of industrialization during the coming decades. Already proposals from
established Indian Industrial houses and multinationals for generating
over 10,000 MW of Thermal Power are being processed and most of these projects
would start implementation during 1996. Additional, 1,000 MW of Hydel Power
generation would take place during the coming five years. Proposals for
barge-mounted power plants are being processed. Many of the large industries
existing and new are setting up Captive Power Plants. To attract flow of
investment to the power sector the new policy contemplates provision of
land and water at industrial rates to power plants and electricity duty
exemption for Captive Plants. Power Plants generating power from non-conventional
sources are entitled to all incentives applicable to industries and total
electricity duty exemption.
3.2.2 Orissa is the pioneer
in restructuring and reforming the power sector. Appreciating the need
to structurally re-organise power generation, transmission and distribution
with a view to achieving improvement in the management and ensuring a fairdeal
to the customers in regard to Tariff and quality of service, the Orissa
Electricity Reforms Act, 1995 has been enacted. In the changed scenario
the existing power generation, transmission and distribution functions
under the OSEB are being split into separate units and corporatised. In
the State sector the responsibility of power generation would rest with
the Orissa Power Generation Corporation (For Thermal Power) and the Orissa
Hydro Power Corporation (For Hydel Power). The transmission and distribution
functions would be discharged by the Grid Corporation of Orissa Ltd. (GRIDCO)
with a clear mandate to separate the distribution function in due course.
Under the said Act, an independent Regulatory Authority i.e. Orissa Electricity
Regulatory Commission shall be constituted to take over the regulatory
functions including aiding and advising the State Government on policy
matters. The commission shall also act as the body which issues and enforces
licenses, balances the interest of the State, the consumers, the entities
involved in power generation, transmission, distribution and supply of
electricity and the investors in the electricity industry.
The Commission shall also
determine the Tariff for various categories of consumers, taking into consideration
their view points as may be expressed during the deliberations in the Commission
Advisory Committee Meeting.
Power sector is in urgent
need of modernisation and upgradation. This needs huge capital investment.
Private effort/participation in generation, transmission and distribution
would be welcome and transparency in selecting private parties through
open competitive bidding would be ensured. The attempts made by Orissa
so far to reform and restructure the power sector have been commended by
the World Bank, Asian Development Bank, Overseas Development Administration
(U.K.) and international experts and the State has been held out as a model
for other States to follow. The policy of negotiating fair and equitable
power purchase agreement with the Independent Power Producers and Industries
owning Captive Power Plants (Supplying surplus power to the State Grid)
will continue. In special cases Government of Orissa may permit sale of
power by an independent power producer to an industry on payment of wheeling
charges and other terms and conditions in consultation with the GRIDCO,
Co-generation of Power would be encouraged.
3.2.3 Special attention would
be paid to promote power generation from non-conventional sources. Such
activity will get all incentives and facilities as an industry and complete
exemption of Electricity duty would be available to such projects. The
State Hydro Corporation and Orissa Renewable Energy Development Agency
would promote Mini Hydel projects and other renewable energy projects respectively
in Public sector/Joint venture and private sector.
Several important new railway
links have been sanctioned/are under implementation. The Koraput-Rayagada
line has been completed providing access to the Bauxite belt of Southern
Orissa. The Daitari - Banspani Railway link is under construction and when
completed in 2/3 years, will open up the vast Iron-ore reserves of Gandhamardan-Malangtoli
reserves to Paradip/Gopalpur ports and the Steel Plants located at Nayagarh,
Daitari and Gopalpur. The Rupsa-Baangiriposi gauge conversion will make
Mayurbhanj district more accessible to railway traffic. The Talcher-Sambalpur
line linking the rich coal belts of Thalcher and IB-valley will be completed
soon and connect coastal Orissa with northern Orissa. The recently sanctioned
Khurda-Bolangir railway link will also provide the much needed linkage
between coastal and Western Orissa through the rich forest/agricultural
hinterland of Nayagarh, Phulbani and Bolangir districts. The Kesigna-Lanjigarh
link recently sanctioned will provide vital access to the Bauxite Belt.
Efforts will be made to convert the narrow gauge line between Nawapara
to Gunupur to broad gauge and then connecting it to Rayagada. Finally the
Koraput-Malkangiri link for which a proposal is pending with the Railway
Ministry, seeks to access the rich Limestone/Granite deposits of the southern
most part of Orissa. An ambitious mines cum infrastructure development
project of Orissa Mining Corporation (OMC) with foreign participation contemplates
a second dedicated railway link between the rich iron are deposits of Gandhamardan/Malangatoli
belt with Paradip Port via Daitari, Doubling of Talcher-Paradip stretch
is under implementation. All out efforts will be made for a new direct
railway line between Talcher and Gopalpur. Electrification of Kharagpur-Khurda
stretch has commenced and would in due course extend to Visakhapatnam.
An inland container depot is coming up at Balasore and another at Angul
is under contemplation. The State government is determined to pursue all
these projects for their early completion to ensure that the railway infrastructure
is in place to help industries, especially mining and mineral processing
industries come up in the rich hinterland full of natural resources.
Improvement of key road links
like Sambalpur-Rourkela and Cuttack-Bhubaneswar are under implementation.
The State has an ambitious programme of connecting all Panchayats by all
weather tarfelted roads. A number of important road links like the Jajpur
Road-Joda stretch are contemplated for improvement with external assistance.
New Roads under contemplation include a highway from Talcher to Gopalpur
linking the coal belt with Gopalpur port. The State Government would make
sustained effort to complete/implement these projects expeditiously. Private
initiative for these new projects would be welcome. The same will apply
to new bridges. The private parties would be entitled to collect Toll towards
return of investment. The State Government would also consider allowing
commercial use of specified road side lands in order to improve the economic
viability of road and bridge projects. Improvement of road infrastructure
including building new highways is the State Government's priority.
Paradip Port, the country's
deepest port, is fast coming up as a premier port of the country. New facilities
like modern coal handling and oil terminals are coming up. A modern fishing
harbour has just been completed. A number of oil tanks farms are on the
anvil. With an oil refinery coming up, a petro chemical complex would follow.
Gopalpur minor port is being developed as an all weather modern port in
joint venture. A study has been commissioned to identify new locations
of major/minor ports on the State's coastline. Basing on this study, new
ports will be offered to private parties for development and operation.
3.6 AIR CONNECTION
Air link is vital to attract
investors, spur industrial/commercial activities and also to promote tourism.
Bhubaneswar airport is under expansion/modernisation to facilitate landing/take
off of wide-bodied aircraft, specially for chartered flights. The State
government will continue to make efforts to have an international airport
here. An Air Cargo complex with full custom clearance facility would come
up. Efforts are on to increase the frequency of flights to Calcutta, Madras,
Bombay and Hyderabad. The State Government will endeavour to have direct
links with Bangalore and other cities. Efforts would continue to have a
second national airport in the State. Inside the State Air Taxi services
connecting Jeypore, Jharsuguda and Rourkela will be organised. Nayagarh,
Daitari and Gopalpur Steel Industry complexes will have their own Air strips
to be used by air taxi operators. Similar facility at Angul, Balasore/Mayurbhanj
would also come up.
3.7 INDUSTRIAL AREA/ESTATES
3.7.1 The Orissa Industrial
Infrastructure Development Corporation (IDCO) has established a wide network
of Industrial areas and estates for various industries in different parts
of the State. Among them are Bhubaneswar, Rourkela (Kalunga), Balasore,
Angul/Talcher, Khurda, Bolangir, Sambalpur etc. To meet the rapidly increasing
demand for new industrial complexes/areas/estates are coming up in different
parts of the State.
3.7.2 Under the Central Government's
programmes of growth centres, three new centres are coming up at Chhatrapur,
Duburi (Kalinga Nagar) (near the steel plant complexes of MESCO, Ganapati
Exports, Neelachal Ispat Nigam etc.) and Jharsuguda. Under the mini growth
centre scheme of Government of India, new centres are coming up. An Export
Promotion Industrial Park (EPIP) is coming up at Bhubaneswar with assistance
from the Ministry of Commerce, government of India. At Bhubaneswar an Electronic
Hardware Park and a Software Park (with dedicated earth station) have been
established. A diamond park is planned at Bhubaneswar. These new industrial
areas/estates will provide readymade facilities for locating new industries.
3.7.3 The State Government
has decided to establish Functional industrial estates. Functional industrial
estates are coming up in different parts of the State : Ceramics at Jharsuguda,
hosiery and knit-wear of Jagatpur (Cuttack), aluminium near Khura, ship
breaking at Gopalpur and Paradip ports, plastic and polymer at Bhubaneswar,
auto ancillaries at Berhampur, agro-tech park near Bhubaneswar, etc. More
such functional industrial estates would be established for food processing,
chemical, catings, leather, gems and jewellery.
3.7.4 The State government
welcomes participation of private sector in industrial areas/estates. Three
such parks namely, the aluminium park near khurda, agro-tech park near
Bhubaneswar and diamond park at Bhubaneswar are being established by private
parties in India with participation at Paradip. More industrial estates/parks
in private sector are welcome for which the State Government would provide
land, water and power facilities and if necessary, equity participation.
Private Export Processing Zones (EPZs) are also welcome.
3.7.5 Large Steel Plants,
Alumina Plants and Oil Refineries are coming up at Duburi, Nayagarh, Gopalpur,
Paradip, Haridaspur and Rayagada. The State government are planning industrial
estates for ancillary/auxiliary industries at these locations and would
welcome participation of private parties in this effort.
3.8 SOCIAL INFRASTRUCTURE
Social infrastructure in
close proximity of industrial complexes has to be adequately developed.
The State Government would welcome participation of private parties in
putting up excellent residential/non-residential schools, hospitals etc.
Large industries would also be persuaded to establish such facilities individually
or to pool their resources to set these up collectively. State Government
would consider providing land and other facilities at concessional rates
for this purpose.
3.9 ENVIRONMENTAL PROTECTION
In seeking the rapid industrialization
of the State, the State Government is also keenly aware of the need to
protect the environment. All existing and new industrial units will be
required to conform to the prescribed environment standards. The State
environment protection machinery will be suitably strengthened so that
it not only performs a regulatory role but also actively helps and assists
industrial units in meeting environment standards.
4. SKILL DEVELOPMENT
Skill development is the
key to quality and productivity and employment of local people in sophisticated
industries. The State Government have planned a series of initiatives in
4.1 Government ITI's and
polytechnics are being modernised with World Bank assistance to improve
the quality of technical manpower. Efforts would be made to improve the
quality of ITI's and polytechnics in private sector by co-ordinating their
activities to improve their infrastructure and teaching standards.
4.2 The State Government
would formulate a policy for Technical Education in private sector to facilitate
the establishment of new technical institutions of good quality and standard
in the private sector. New Engineering colleges and Medical Colleges will
be permitted in the private sector in selected locations. The State Government
will endeavour to persuade Government of India to locate an IIT and an
IIM in Orissa. Management/Computer training institutions of high standard
in the private sector would be encouraged.
4.3 A technical University
will be established in the State at the earliest.
4.4 The regional centre for
CIPET at Bhubaneswar, the Danish Tool Room at Bhubaneswar, the Master Craftsman
Training Centre at Bhubaneswar and the Foreman Training Institute at Kansbahal
are playing useful roles. Efforts will be made to set up more such specialised
institutes with the help of industrial/ commercial houses and other private
parties. Continuous efforts would be on toe establish close interaction
between Industry and Research Institutions.
4.5 Large Industries coming
up in the State would be required to indicate the number and categories
of skilled workmen by they would be requiring and the phasing of the requirement.
Technical Institutions in the state will be fully geared to produce and
make available skilled personnel in the disciplines needed. Wherever necessary,
new disciplines will be introduced in these institutions to meet the needs
of Industries locally.
4.6 Special efforts would
be made to set up high quality training facilities in computer software.
Orissa Computer Application Centre and Orissa State Electronics Development
Corporation will play the nodal role in this effort. Established Software
Training Houses in the country will also be encouraged to set up training
facilities in the State.
4.7 Steps will be taken to
provide training facilities for local boys and girls by suitably strengthening
the facilities at the Bhubaneswar Flying Club and also arranging for deputation
of trainees to Indira Gandhi Udan Academy in order to enable them to obtain
Students and Pilots' License and Commercial Pilots' License.