ORISSA INDUSTRIAL POLICY, 1996

POLICY FRAMEWORK

1. POTENTIAL AND PROMISE

   1.1 Orissa, the ancient land of temples in the eastern coast of India, is one of the most resource rich states in the country. With the onset of the process of economic reforms in India and fast emerging globalisation of the Indian economy, Orissa is on the threshold of rapid industrial growth. The State Government is determined to take full advantage of the sweeping changes in the national and international scenario and forge ahead with its programme of industrialization.

   1.2 The State is endowed with vast natural resources - mineral, marine, agricultural and forest wealth. It has abundant reserves of coal, iron ore, bauxite, chormite, limestone, dolomite and manganese. It also has tin, nickel, vanadium, gemstones and granite. Of late, vast potential of Diamond and Gold has been indicated. Water resources are plentiful. Potential of agriculture is unlimited. At Paradip is the country's deepest port. A wide network of new railway linkages connecting strategic resource bearing locations is fast emerging. With these advantages Orissa has become a major destination of steel plants, thermal power plants, Alumina/Aluminium projects and oil refineries. The projects/proposals in hand include 13 steel plants, half a dozen large power projects, 3 alumina/aluminium projects and two green field oil refineries - most of them by major national and international enterprises. The State Government is fully committed to attract large investment in development of infrastructure, mining and industry including power generation to harness the vast promise and potential to improve the economy, to create employment and generate resources for all round development of the State and its people. While the past industrial policies starting from 1980 have created a favourable industrial climate in the State with many new industries coming group, the State has to take full advantage of the liberalised economic and industrial regime to attract substantial private investment for infrastructure and industrial development of the state. Accordingly the new industrial policy (IP-96) is formulated by the state Government to spell out the strategic and modalities to translate this commitment into concrete action.

2. OBJECTIVE AND STRATEGY

   The Objectives of the new Industrial Policy (IP-96) are the following:

   1. Harnessing Orissa's vast natural resources and potential for accelerated industrial growth consistent with the protection of the environment.

   2. Advancement of agriculture by establishing appropriate linkages between agriculture, agro and food processing industries.

   3. Attracting and facilitating large investments in infrastructure and industries both from inside the country and abroad.

   4. Generation of employment in large scale industrial/commercial activities.

   5. Emphasis on development of backward areas/regions of the State through industrial/mining ventures.

   6. Strengthening the rural economy through development of agro- based industries, small industries, village and cottage industries, sericulture, handloom and handicraft.

   7. Stimulating and strengthening local entrepreneurial base/talent.

   8. Development of skill/expertise.

   2.2 The strategies to be adopted for achieving the objectives of IP-96 are broadly the following :

   1. Strengthening physical and social infrastructure like power generation, railway and road network, ports and airports, higher technical/professional institutions, modern hospitals and schools through prioritisation of public investment and through private investment.

   2. With the opening up of the telecommunication sector by the Government of India to private enterprise, telecommunication facilities are also expected to improve and grow rapidly. The State Government will provide all support for development of telecommunication facilities in the State.

   3. Facilitating large investment in resource based industries like power, steel, alumina etc.

   4. Improving the investment climate through peaceful industrial relation and work culture, helpful escort services, fast and transparent decision making and quick clearances of projects.

   5. Providing greater support to export oriented industries, agro/food processing industries, small scale industries and micro-enterprises and to women/S.C./S.T./Physically handicapped entrepreneurs.

   6. Providing greater incentives/support to industries generating large employment specially employment of women and industries located in disadvantaged localities.

   7. Making special efforts for rehabilitation of viable sick industries.

   8. Simplification of rules and procedures and organisational reforms to facilitate unhindered growth of Industry and trade.

   9. Emphasis on quality and productivity and on skill development.