Presentation on Business Potential of orissa

Presented By: KUMAR GAURAV NITIN KUMAR PRADEEP SINGH YADAV RAJESH SINGH

State at a Glance
Capital Bhubaneswar Area 1,55,707 square kilometres Population 2001 3,68,04,660 Per capita income 2009 Rs. 16,149 Urban population 14.97% Literacy rate 63.08% Number of districts 30 Number of towns 138 Number of villages 51,350 Principal crops Rice, Pulses, Oilseeds Major industries Steel, Aluminium, Power, Cement, Mineral-based.

A Brief Introduction About Orissa

Orissa is a state in eastern India. Located on the east coast of India, by the Bay of Bengal. The modern state of Orissa was established on 1 April 1936 as a province in British India The state capital is Bhubeneshwar, which is also full of natural resources of the state.
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Orissa Performance on key socio-economic indicators

A. Economic Performance of Orissa:

The gross state domestic product (GSDP) of Orissa has exhibited an impressive growth rate of 9.53 percent between 1999-00 and 2005-06, increasing from $8.16 billion in 1999-00 to $14.08 billion (advanced estimates) in 2005-06. The primary sector currently accounts for 42.7 per cent of the Net State Domestic Product (NSDP), having fallen from 49.4 percent in 1997-98. The growth of primary sector has been 6.39 percent during this period. , comprising agriculture and livestock, fishing and mining and quarrying. The secondary sector has a 15.4 percent share in NSDP and grew at a CAGR of 11.12 percent between 1997-98 and 2003-04, comprising manufacturing, construction and electricity, gas . The tertiary sector accounted for 41.9 per cent share in NSDP in 2003-04, up from 36.9 percent in 1997-98, comprising communication, financial services, real estate and related services, public administration and other services).

REGULARITY FRAMEWORK
Procedures for entry and exit of firms
There are basically three stages involved to start a industrial unit in the State of Orissa,which are given under a) Entry Stage (Pre Implementation Stage)

b) Implementation Stage
c) Operational Stage

OBJECTIVE OF INDUSTRIAL POLICY

To transform Orissa into a vibrant industrialized State. To enhance the share of Industries in State Gross Domestic Product. To promote orderly and environmentally sustainable industrial growth. To promote Orissa as a major manufacturing hub.

To maximize employment generation opportunities both direct and indirect.

To maximize linkages between micro, small, medium and large industries and make focused efforts for development of ancillary and downstream industries.

To promote employment intensive sectors such as handicrafts, handlooms, Khadi & Village industries, coir and salt.

Single Window Clearance

In order to facilitate the growth of industries and to create an enabling environment to attract national and international investment, the State Government has enacted the Orissa Industries (Facilitation) Act, 2004, for implementing the Single Window Clearance System with the following objectives:

Faster and one-point clearance of industrial projects; Single point dissemination of industrial project-related information; Streamlining of inspection of industries by different agencies and authorities; Leveraging public-private partnerships (PPP) for providing infrastructure support of international standards to the industrial environment in the state.

RESOURCES/INPUT
Orissa has a cost effective and adequate labour force. According to the occupational classifi cation of Census 2001, there were 14.3 million workers, constituting 38.79 per cent of the total population. Orissa is one of the few pioneering states to reserve 30 per cent jobs for women in all government departments and public undertakings. The State Government is keen to encourage labour intensive industries. At the end of 2006-07, 0.97 million people were unemployed in a total workforce of about 14million. Industry-labour relations are cordial in the state. According to the Ministry of Labour and Employment, Government of India, of the 45 strikes that occurred across India between January 2007 and April 2007, only one was in Orissa.

AVAILABILITY OF NATURAL RESOURCE

Minerals Reserves in Orissa (in million MT ) Iron Ore 4,177 Chromite 111 Coal 51,571 Bauxite 1,530 Lime Stone 2,224 Dolomite 882 Fire Clay 177 China Clay 314 Nickel Ore 174 Vanadiferous Magnetite 2.5 Manganese 116 Mineral Sand 86 Graphite 4.6 Pyrophylite 4.8 Lead Ore 1.9 Talc Soap Stone 1.1 % of All India Reserve 33.91 97.36 24.37 49.74 1.30 12.00 25.07 13.34 95.09 20.83 28.57 32.33 76.66 21.24 1.08 0.34

INCENTIVES TO INDUSTRY
Tax incentives and exemptions Value Added Tax (VAT) Central Sales Tax (CST) VAT Reimbursement Entertainment Tax (ET) INVESTMENT SUBSIDIES AND OTHER INCENTIVES
INTEREST SUBSIDY SALES TAX PATENT REGISTRATION QUALITY CERTIFICATION POWER ASSISTANCE FOR TECHNICAL KNOW-HOW EXPORT PROMOTION: STAMP DUTY LAND

Foreign Direct Investment (FDI) Policy

In India, approval of FDI is done in two ways i) Automatic Route ii) Government Approval FDI up to 100% is allowed under the automatic route without prior approval in most of the sectors including the services sector such as Advertising & films, Architectural Services, Computer related services, Construction & related engineering services, Health related and social services etc. Sectors where FDI is not allowed Agriculture Plantation, except tea plantation Atomic Energy Gambling, Betting, Lottery Retail Trade

PHYSICAL & SOCIAL INFRASTRUCTURE

Land Power Water Roads Railways IT Parks

Social infrastructure Education

Orissa has a large number of high ranked educational institutes like the National Institute of Technology, Rourkela, and Xavier Institute of Management, Bhubaneswar. The Department of Higher Education looks after education at the university, post graduate, graduate and higher secondary levels and also provides vocational education Orissa has nine universities, 88 engineering/ MCA colleges and 18 medical colleges The Vedanta Group plans to establish a world-class technical university with an annual intake of 100,000 students in 95 disciplines . During 2004-05, there were 45,700 primary schools with enrolment of over 5.2 million and 99,000 teachers

Medical Facilities
Medical & Health Care Facilities In 2005, there were 1,701 government allopathic medical institutions in the state with 13,886 hospital beds. By the end Orissa All-India Population served per Doctor 7,560* 1,607 Medical institutions 21,638* 26,536 Birth rate** 22.7 24.8 Death rate** 9.6 8.1 Infant mortality rate*** 65 63

Life expectancy at birth (years)

Male Female

60.1 61.2

64.1 65.4

WHY ORISSA?
Factors influencing investment climate include
Availability and ease of use of factor inputs such as land and labour; 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 Orissa possesses significant tourism potential and has promising prospects in marine-based and agro-processing industries

INVESTMENTS
US$ 12 billion (Rs. 51,000 crore) POSCO steel project at Paradeep Infosys Technologies invests more than Rs. 135 crore in its Bhubaneswar Reliance Energy invests Rs. 48,000 crore to set up 12,000 MW coal-based power plant in Orissa Tata Steel Ltd. plans 6 million MT steel project in Orissa with an investment of Rs. 15,400 crore Vedanta group is setting up $2.1 billion (Rs. 9,400 crore) aluminum complex in Orissa Jindal Stainless is setting up a 0.8 million MT per annum integrated stainless steel plant in Orissa with an investment of Rs. 1,612 crore. Essar Group plans steel plant in Orissa with an investment of Rs. 6,846 crore at Paradeep Dubai Aluminum along with Larsen & Turbo (L&T) to set up an alumina plant with initial capacity of 1.4 million MTpa in Orissa with an investment of Rs. 5,400 crore. Aditya Aluminum of the Hindalco group is to invest Rs. 10,725 crore for an alumina / aluminum complex in Orissa

Key Industrial Players In Orissa

A. Key players in the STEEL SECTOR are :1. 2. 3. 4. 5. 6. 7. 8. 9. 10. POSCO ARCELOR- Mittal Bhusan group Tatasteel L&T Jindal group Hindalco Vedanta Essarsteel AdityaAluminium

B. Key players in PETROCHEMICALS SECTOR are :1. Indian oil corporation C. Key players in Power sector are :1. Tata Power 2. RelianceEnergy 3. Sterlite Energy 4. Mahanadi 5. Aban 6. Monnet Ispat 7. EssarPower 8. Lanco Group 9. NavBharat Power 10. CESC 11. GMR Energy

Thank You