Business Potential of state Orissa.Ppt

8/3/2019 Business Potential of state Orissa.Ppt

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PresentationonBusiness Potential

oforissa

Presented By:

KUMAR GAURAVNITIN KUMAR

PRADEEP SINGH YADAV

RAJESH SINGH


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State at a Glance

Capital

Bhubaneswar

Area1,55,707 square kilometres

Population 20013,68,04,660

Per capita income 2009

Rs. 16,149Urban population14.97%

Literacy rate63.08%

Number of districts30

Number of towns

138Number of villages51,350

Principal cropsRice, Pulses, Oilseeds

Major industriesSteel, Aluminium, Power,

Cement, Mineral-based.


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A Brief Introduction About Orissa

Orissa is a state in eastern India. Located on the east coast ofIndia, 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 ofnatural 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 animpressive growth rate of 9.53 percent between 1999-00 and 2005-06,increasing from $8.16 billion in 1999-00 to $14.08 billion (advancedestimates) in 2005-06.

The primary sector currently accounts for 42.7 per cent of the Net StateDomestic Product (NSDP), having fallen from 49.4 percent in 1997-98. Thegrowth of primary sector has been 6.39 percent during this period. , comprisingagriculture and livestock, fishing and mining and quarrying.

The secondary sector has a 15.4 percent share in NSDP and grew at a CAGR of11.12 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, upfrom 36.9 percent in 1997-98, comprising communication, financial services,real estate and related services, public administration and other services).


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REGULARITY FRAMEWORK

Procedures for entry and exit of firmsThere 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


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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.


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Single Window Clearance

In order to facilitate the growth of industries and to create an enablingenvironment to attract national and international investment, theState Government has enacted the Orissa

Industries (Facilitation) Act, 2004, for implementing the Single WindowClearance 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 providinginfrastructure support of international standards to the industrialenvironment in the state.


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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 ofabout 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.


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AVAILABILITY OF NATURAL RESOURCE Minerals Reserves in Orissa (in million MT ) % of All India ReserveIron Ore 4,177 33.91 Chromite 111 97.36 Coal 51,571 24.37 Bauxite 1,530 49.74 Lime Stone 2,224 1.30 Dolomite 882 12.00

Fire Clay 177 25.07 China Clay 314 13.34 Nickel Ore 174 95.09 Vanadiferous Magnetite 2.5 20.83 Manganese 116 28.57 Mineral Sand 86 32.33 Graphite 4.6 76.66

Pyrophylite 4.8 21.24 Lead Ore 1.9 1.08 Talc Soap Stone 1.1 0.34


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INCENTIVES TO INDUSTRYTax 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


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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


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PHYSICAL & SOCIAL INFRASTRUCTURE Land

Power

Water

Roads Railways

IT Parks


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Social infrastructureEducation

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 95disciplines

. During 2004-05, there were 45,700 primary schools with

enrolment of over 5.2 million and 99,000 teachers


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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 60.1 64.1

Female 61.2 65.4

WHY ORISSA?


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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 inregulation, 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 promisingprospects in marine-based and agro-processing industries


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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) aluminumcomplex 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


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Key Industrial Players In Orissa

A. Key players in the STEEL SECTOR are :-1. POSCO2. ARCELOR- Mittal3. Bhusan group

4. Tatasteel5. L&T6. Jindal group7. Hindalco8. Vedanta9. Essarsteel10. 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. Mahanadi5. Aban

6. Monnet Ispat

7. EssarPower

8. Lanco Group

9. NavBharat Power

10. CESC

11. GMR Energy


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Thank You

Business Potential of state Orissa.Ppt

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