ORISSA

5. THRUST AREAS

5.1 MINERAL BASED INDUSTRIES

Given the rich mineral reserves in the State, this sector has huge potential for attracting large investment to create employment and raise resources. The State Government would formulate a Mineral Policy in due course. However, the basic features of development of mineral based industries in the State would be on the following lines.

5.1.1 AUGMENTING POTENTIAL

Concerted efforts will be made to expedite/undertake survey/exploration/investigation of mineral resources. Reputed private parties including multi-nationals will be involved in exploration of Gold and Diamond bearing areas. Efforts would be made with the help of Central Government for exploration of Mineral Oils and Gas in mahanadi basin and off-shore. The State is pioneer in Aero-magnetic survey. Modern methods of exploration like remote sensing, aero-magnetic survey and other methods would be used to build up the resource inventory of various minerals in the State. Multi-nationals, Indian Companies and Central and State Agencies would be fully utilised for this purpose.

5.1.2 VALUE ADDITION

Instead of exporting Raw Materials outside the State, efforts would be made for processing Ores (Washing, Crushing, Sizing and Benefication etc.) inside the State for value addition to provide greater employment and generate greater tax resources. Efforts would also be made to set up manufacturing industries based on minerals for further value addition and generation of Tax source inside the State. For this purpose processing/manufacturing industries would be given preference for supply of minerals and long term arrangement/joint ventures can be established between local processing/manufacturing industries and Orissa Mining Corporation. In recommending PL/ML for mines, the State Government's policy would be to give preference to local industries as far as practicable. The Orissa Mining Corporation has large plans for joint venture mining/processing projects relating to Iron-Ore, Chromite, Coal, Diamond and Tin etc.

5.1.3 A large number of Independent Power Producers both Indian and Foreigners have evinced interest to set up their power plants in the State. The Power Purchase Agreements with some of these IPP's are being finalised. The State Government would provide support to these units to obtain Captive mining lease from the Union Government and also assist them in securing long term Coal supply arrangement with the Mahanadi Coal Fields Ltd., government also intend to encourage Mega Power Projects to come up in Orissa with a view to supplying the power generated by them to other power deficit States in the country by making use of the power transmission system of the Power Grid Corporation of India Ltd., New Power Plants would be prevailed upon to adopt modern technology for utilization of Fly-Ash, curbing pollution and investing in local and periphal development activities.

5.1.4 GRANITE

The State has vast potential for Granite. Already a number of querries have started working on scientific lines and a large number of cutting and polishing units are coming up. A comprehensive policy for development of Granite Industries will be formulated shortly to provide a fillip to this sector.

5.1.5 GEMSTONE

Orissa is probably the richest State in the country for coloured Gemstones. There is vast potential for Gemstone mining and cutting and polishing units which will provide large employment and generate resources for the State. An integrated policy for collection/mining of Gemstones and establishment of lapidary units will be formulated separately for development of this sector. Already a sophisticated Gemstone laboratory has been set up at Bhubaneswar under the UNDP programme.

5.2 AGRO AND FOOD PROCESSING INDUSTRIES

The State has vast potential for agro and food processing industries. This sector has therefore been identified as a prominent thrust area. A comprehensive agricultural policy is being announced separately. However, efforts would be made to develop agro and food processing industries on the following lines.

5.2.1 Appropriate linkages would be established in the form of post harvest storage facilities, cold storage, processing facilities etc. Processing facilities would be encouraged in private sector for fruits, vegetables, cashew oil seed, cotton, sugarcane etc. Soyabean sunflower, oil palm, rubber tea/coffee, spices would be promoted with appropriate linkages for processing. Quality seed production in private sector would be promoted in a big way.

5.2.2 Government would consider privatization of Government agricultural farms to act as nuciel for production of high quality seeds for hi-tech, agriculture and dissemination of advanced technology to farmers.

5.2.3 Private efforts for development of agriculture, horticulture, plantation crops etc. will generally through contract farming. However, provisions of the Land Reforms Act, would be suitably amended to exclude private commercial plantations from the provisions of Land Reforms.

5.2.4 Greenhouse horticulture/floriculture would be promoted in private sector. Hi-tech, agritech firms would be also supported in selected areas.

5.2.5 Sericulture will get high priority and private sector would be permitted to be involved in this activity.

5.2.6 Tissue-Culture and techniques of advanced bio-technology will be promoted in a big way.

5.2.7 Industries using agro-residue as raw material will also be actively supported.

5.2.8 Special efforts would be made to extensively develop cotton and sugarcane. Separate agencies will be created in the Agriculture Department for development of sugarcane and cotton with active participation of spinning mills and sugar mills in different parts of the State. The State Government is seeking 9 new Letters of Intent (LOI's) for sugar mills besides 5 LOI's under implementation. In the hinterland of these mills, sugarcane cultivation will be developed with close participation of private parties setting up these units.

5.2.9 A comprehensive programme for development of inland pisclculture through advanced techniques of high yielding fish production will be launched. Brackish water and fresh water prawn culture has vast potential in the State. While promoting this sector, care will be taken to regulate this activity to prevent encroachments/pollution/disease spread. Modern hatcheries and feed plants would be promoted/supported.

5.2.10 To give the required support to agro and food processing industries, a new corporate body will be set up to promote this sector through equity participation, load and other financial support and escort services.

5.2.11 A comprehensive programme for development of Poultry sector will also be launched.

5.2.12 Efforts will be made for long term arrangements to meet the raw material requirements of existing forest-based industries. Measures to promote commercial plantations in areas like rubber, coffee and tea will also be adopted.

5.3 ELECTRONICS AND SOFTWARE

This is a priority sector for the state Government as it provides great scope for employment. This Industrial Policy provides special incentives for this sector, Bhubaneswar, the State Capital is ideal for location of electronics and Software Industries as no polluting industries are permitted in and around the city.

5.3.1 An electronic Hardware Park has been established at Bhubaneswar. Similarly, a software Park has also been established at Bhubaneswar with a dedicated Earth Station. Steps would also be taken to attract Industries from all over the country to these parks.

5.3.2 The State Electronic Development Corporation (ELCO) is the nodal agency for development of Electronic Hardware Industries in the State. A software division under this corporation will be organised not only to attract and guide software industries but also to develop locale software houses to get adequate assignments by obtaining bulk orders from bigger parties and parcelling it to small units. Orissa Computer Application Centre (OCAC) will be responsible for systems development in Govt. and Government agencies, promoting computerisation in the Government sector and training of man-power.

5.4 Petroleum Refinery and Petro-Chemicals :

Two large refineries are coming up in the State of Paradip and Haridaspur area in joint venture and private sector. A number of Oil tank farm projects are also coming up at Paradip. It would be the Government's endeavour to provide the requisite support to these projects and also to plan and develop downstream petro- chemical complexes,nearby.

5.5 Pharmaceutical Industries :

Government will make every endeavour to promote large basic drugs industries and formulation industries in the State by attracting established houses in the country and providing them requisite support and services.

5.6 Automobile and Automobile Components :

The State would make every endeavour to attract entrepreneurs specially established industrial houses to the State for setting up Automobile, Automobile components and Auto Ancillary industries of suitable locations.

5.7 Garment and Hosiery Knitwear:

It is a priority area considering its employment potential and would receive priority attention of Government in earmarked complexes.

5.8 Export Oriented Industry

Export-Oriented units will get priority. An Export Promotion Industrial Park is being established at Bhubaneswar where special incentives are available from Government of India. A Diamond Park is also being set up at Bhubaneswar. Private Export Processing Zones will be welcome. Efforts would be made to have/up-grade branches of various Export promotion councils in the State. Expo Exhibition and Trade Fairs will be organised at regular intervals. A sophisticated Trade-cum-Exhibition Centre will be established at Bhubaneswar.

5.9 Tourism:

Orissa was the first State to declare Hotels as an Industry. In addition to Hotels, other tourism related activities and wayside amenities would be entitled to various incentives as industries under the Industrial Policy. A separate policy on tourism would be formulated and announced shortly.

5.10 Ancillary and Auxiliary Industries:

Priority attention would be given to development of small scale industries in the vicinity of large steel, alumina, power and refinery projects coming up in the State. For every such complex an Ancillary Promotion Board/Council with participation of Government and plant authorities will be set up and firm linkages between the mother industry and ancillaries established.

5.11 Handicrafts, Handlooms, Khadi and Village Industries:

Handlooms and Handicrafts of Orissa are known the world over. All efforts would be made to provide assistance for marketing, quality upgradation, etc. Strong incentives and support would be provide to Khadi and Village Industries sector to provide large scale employment in rural areas.