Investing in Agribusiness and Food Processing

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Transcript of Investing in Agribusiness and Food Processing

Page 1: Investing in Agribusiness and Food Processing

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Page 2: Investing in Agribusiness and Food Processing

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Co

nte

nt Advantage Odisha-A snapshot 3

Agribusiness in Odisha – opportunities abound 7

Investment opportunities in Agribusiness 17

Government schemes and incentives 24

Investing in Odisha 27

Doing Business in Odisha 35

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Advantage Odisha - A snapshot

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Odisha is among the top three States in attracting investment in India

13.8% CAGR of GSDP; GSDP increased from

INR 77, 720 crores in 2004-05 to INR 288,410 crores in 2013-14

14.8% CAGR in per capita GSDP which has increased to

INR 49,421 in 2012-13 from INR 16,359 in 2004-05

73.5% literacy rate, w

hich shows a

vailability of a large

base of skille

d labour

27% investm

ent share

of total

inve

stment c

ommitted in

India in 2012-13

4.7%

CAGR

in ex

port

from

200

6-07

to

2011

-12

4.8%

share

in In

dia‘

s tot

al m

arin

e pr

oduc

t

expo

rt in

FY

2012

-13

ODISHA

Source: Economic survey of Odisha 2013-14, Planning Commission databook, MPEDA, RBI Report 2012-13

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2007-­‐08   2008-­‐09   2009-­‐10   2010-­‐11   2011-­‐12   2012-­‐13  

Per  capita  GSDP  in  INR  

Economic trends

129,274

2007-08

148,490

162,946

197,529

214,582

255,459

288,414

2008-092009-10

2010-112011-12

2012-132013-14

26,65429,464

32,81440,412

46,150 49,241

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

The state’s GSDP expanded at a compound annual growth rate (CAGR) of 14.31 per cent between 2007-08 and 2013-14 at current price.

Agriculture sector contributes around 16% to the state’s GDP

Agriculture 16%

Industry 25%Services 59%

Yearwise GSDP of Odisha at current prices (in INR crores)

Per capita GSDP in INR

Sector-wise composition of Odisha’s economy 2013-14

Source: Planning Commission Data book, 2013, Economic survey of Odisha 2013-14

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• According to the DIPP*, cumulative FDI inflows from April 2000 to January 2014 amounted to INR 1,709 crores

• Export from Odisha increased to INR 17,661.4 crores in FY 2013-14 from INR 12851.8 crores in FY 2006-07 at a CAGR of 4.7 percent

• Government of Odisha identified Agribusiness and Food Processing as a priority for export promotion.

• Marine products exports from the state were valued at INR 1,817 crore in FY 2013-14 against INR 903 crore in FY 2012-13 with an increase of more than 100%

Investment Trend…

With investment proposals to the tune of INR 45,527 crores and 21% share of total FDI proposed in India, Odisha stood first in attracting investment in the year 2011-12

Odi

sha

Andh

ra P

rade

sh

Guja

rat

21%

19%

11%

Sorce: *DIPP - Department of Industrial Policy & Promotion I Directorate of Export Promotion & Marketing, Odisha I Department of Industries, GoOI Marine Products Exports Development Authority (MPEDA)

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Agribusiness in Odisha – opportunities abound

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Odisha’s Agriculture sector is diverse and intensive

• Gross cropped area (2012-13) - 88.79 Lakh ha

• Cropping intensity- 167%

• Odisha possesses 10 agro-climatic zones and 8 major soil types

• Odisha is a major producer of rice, pulses, vegetables, oilseeds, cotton, groundnut, coconut, cashew nut, jute, spices, potato and fruits

• The area sown more than once (ASMO) has been on the rise ( from 29.5 lakh ha in 2001-02 to 35.48 lakh ha in 2011-12)

Contribution of Agriculture to Gross State Domestic Product (GSDP)*

93100 98500111300

129300148500 163000

197500214600

255500288400

18300 19300 2180031100 31500 34500 38400 37200

50400 56600

2004-5 2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 2013-14

Agricultural sector contributed about 16 per cent to the state’s GSDP in 2013-14

Sources: Indiastat. www.orissa.gov.in , Economic survey of Odisha 2012-13, DoA &FP Odisha

Figures in INR croresat Current Price

Odisha’s GSDP (INR crores) Agricultural and Allied sector contribution to Odisha’s GSDP (INR c rores)

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Resulting in a diverse supply basket ..

Principal crops (2013-14 data)

Percentage of total Area (in % )

Gross cropped Area (in lakh ha)

Gross cropped Area under irrigation (in % )

Production (in lakh tones)

Rice

Other cereals

Pulses

Oilseeds

Fibres (cotton and jute)

Vegetable

Spices

Sugarcane

Fruit crops (including Dry fruits and coconut)

Floriculture (Rose Gladioli, Marigold)

45.3%

5.6%

23.0%

8.5%

1.7%

7.7%

1.8%

0.4%

6.0%

0.1%

40.23

4.96

20.42

7.51

7.51

6.88

1.56

0.39

5.34

0.075

51%

25%

11%

36%

5%

78%

72%

100%

100%

100%

76.1

9.6

10.5

6.9

4.5

94.2

4.9

26.05 cane

21.5

0.006 cut flowers + 2.6 lakh spikes

• Gross cropped area-83.5 lakh ha (2013-14)

• Cropped area in Kharif -57.8 lakh ha (2013-14)

• Cropped area in Rabi -25.7 lakh ha (2013-14)

Sources: Directorate of Agriculture and Food Production, Odisha and Directorate of Horticulture, Odisha

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Odisha is a large producer of rice and maize

Area (in lakh ha)

Production (in lakh tonnes)

Productivity (in tonnes/ha)

2004-05

42

65.37

1.45

2013-14

41.8

76.1

1.82

2004-05

1.85

2.44

1.32

2013-14

2.81

7.79

2.78

Significant financial incentives from state government to improve productivity-

• promoting use of hybrid seed

• reimbursement of fertiliser costs

• training on better production pratices to farmers

Maize growing districts

Paddy growing districts

Sources: Directorate of Agriculture and Food production, Odisha, Indiastat, Economic survey of Odisha 2013-14, Directorate of Horticulture, Odisha, DIC Ganjam

RiceCriteria Maize

Tremendous potential in fruits and vegetables to tap into

State is promoting cashew cluster in Ganjam district.

Cluster has 50 processing units with an annual capacity of around 3800 tonnes. Also around 10% of the products from the cluster is exported

22

14

12

6

4

2

Brinjal

Tomato

Cabbage

Okra

Onion

Potato

Mango

Banana

Citrus

Guava

Papaya

Cashew

7.5

5.0

3.0

1.0

0.7

0.9

Vegetable production 2013-14

(in lakh tonnes)

Fruits production 2013-14

(in lakh tonnes)

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• Enhancing potato production to 11.25 lakh tonnes by 2017-18

• Increasing cold storage capacity to 7.05 lakh tonnes by 2017-18 by establishing 112 new cold storages primarily in private sector

• Supplying certified onion seeds of Agrifound light red variety to farmers

• Upgrading onion storage infrastructure to curtail wastage and augment price realisation for farmers

Onion growing districts

Impetus to develop potato and onion cluster

Potato growing districts

Sources: Directorate of Agriculture and Food Production, Odisha, http://agmarknet.nic.in/, Report of Task Force on Potato, Dec 2014, Govt. of Odisha

Area (in lakh ha)

Production (in lakh tonnes)

Productivity (in tonnes/ha)

PotatoCriteria Onion

2004-05

8.3

0.79

9.6

2013-14

15.0

2.50

16.5

2004-05

28

260

9.03

2013-14

35

419

12

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Focus on boosting high value agriculture

Crop

Rose

Gladioli

Tuberose

Marigold

Total

Area (in ‘000 Ha)

1.9

2.4

0.5

2.7

7.5

Productivity

1.91 lakh stems/ha

0.99 lakh stems/ha

24.6 tones/ha

91.46 tones/ha

Production

3,584 lakh stems

2,354 lakh stems

12.8 ‘000 tones

246 ‘000 tones

Flowers (2013-14)

• Creation of a state of the art Centre of Excellence at Deras, on the outskirts of Bhubaneswar

• Centre currently acts as demonstration farm and training facility for hi-tech production

Flower growing districts

Sources: Directorate of horticulture Odisha, Indiastst

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Immense opportunities in Animal Husbandry and Fisheries

• Odisha is first State to declare poultry as an agricultural activity

• The sector has been growing at the rate of more than 20% per annum. Presently Odisha has more than 21 million poultry birds

• Huge potential for investment in commercial layer farm as there is large demand of eggs in the state

• Inherent production advantage owing to the vast coastline and inland water bodies

• Sea food exports have jumped from INR 886 crore in 2012-13 to INR 1,817 Crores in 2013-14- an increase of 105% as per SFEA* data

• Contribution in national exports also increased from 2.5 % in 2008-09 to 9% in 2013-14

• Major producer of cultured shrimps

• Milk consumption trends in the state and per-capita availability indicate potential opportunities for investment in the future

• Huge potential for creation of additional storage and processing capacity for milk as well as value added products

Fisheries

Dairy

Poultry

*SFEA - Sea Food Exporters Association, Odisha

Sources: Department of Animal Husbandry, Odisha Diary website, State agriculture Policy 2013, Directorate of Fisheries, Cuttack

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PoultryFastest growing sector

Demand and supply status of eggs/day in Odisha (Figures in million nos.)

Odisha’s dependency on neighbouring states for poultry meat has subsided on account of the entry of large broiler integrators such as:

Produced from 66 commercial layer farms

Produced in Home farms

Gap (currently imported from AP)

Daily consumption requirement as per WHO

3.4

1.12.2 6.7

Eastern Hatcheries (Venky’s)

Pasupati Feeds

Sugna Poultry

12 lakh

7.5 lakh

2.5 lakh

Broilers Integrators Capacity (birds per week)Support from State Government-

• Reimbursement of VAT on maize & broken rice used for poultry feed

• Reimbursement of entry tax on commercial chicks & broiler birds and eggs produced inside the State for a period of 5 years

• Reduction of electricity tariff for poultry farming

• Capital investment subsidy up to INR 75 Lakh form APICOL

Sources: Department of Animal Husbandry, Odisha Diary website, State agriculture Policy 2013

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FisheriesThe state plans to double fish production in next five years

Increasing Annual Fish Production

3.5 3.74 3.73.84 3.82

4.10

1.23 1.35 1.29 1.33 1.14 1.18

0.230.26 0.25

0.27 0.30.29

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Marine fish

Brackish water fish

Fresh water fish

Figures in lakh tonnes

Total fish production

Annual Export of Marine Fish

2008-09

14.14

358.00

2.5%

Quantity in’000’ tonnes

Value in INR crores

Share in India’s marine product export

2013-14

30.98

1817

9%

1.95 2.13 2.162.24 2.38 2.63

Sources: Directorate of fisheries, Odisha; Fisheries Policy 2015; DoF&ARD annual activity report 2013-14, SFEA, MPEDA

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Milk procured (in lakh ltr per day)

Milk marketed (in lakh ltr per day)

2.9

2.5 2.52.7

3.03.4 3.4

3.8 3.7

4.2 4.2

DairyDemographic changes in the state are driving increase in milk consumption

Milk in Odisha flows through the following channels...

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Sources: Indiastat, Economic survey of Odisha 2013-14

3.8

Trends in milk procurement and marketing

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Investment opportunities in Agribusiness

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Value addition in RiceOdisha ranks 6th in production of paddy, and contributes about 7.5% of India’s total paddy production

Area

Percentage of total cultivated area of the state

Production

Major Rice pro-ducing districts (Contributing > 60% of total production of

rice in the state)

41.8 lakh ha

65.09%

76.13 lakh tonnes

Bargarh, Balangir, Kalahandi, Mayurbhanj, Nabarangpur, Sun-dergarh, Sambalpur, Koraput and Cuttack

Potential area for investment

Value added productsProduct/Byproduct

Integrated Rice Mills which will totally utilise whole paddy for processing of following products-

Rice associated Products

Starch, rice flakes

Edible oil

Black ash

Fuel for integrated power generation

Husk boards

Furfural, Silica

Rice & brokens

Rice Barn

Husk

Sources: Agriculture Statistics, Department of Agriculture and Food Production, Odisha

Rice statistics for the year 2013-14

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Value addition in MaizeConsumption of maize in Odisha has grown at CAGR of 4.6% by volume and 10% by value from 2004-05 to 2013-14

Area

Percentage of total cultivated area

Production

Major Maize producing districts

2.79 lakh ha

4.54%

7.79 lakh tonnes

Nabrangpur (>30%), Koraput, Kalahandi, Gajapati

• Maize in Odisha is primarily used for poultry feed.

• Around two-third of maize produced is exported to states like Chhattisgarh, Andra Pradesh, West Bengal and Karnataka.

• Surplus maize in the state indicates untapped processing opportunities

Potential Area for investment

• Corn based starch producing units• Production of value added products like- corn

flakes, popcorn, corn sweeteners etc. • Animal feed processing unit• Corn oil units• Rural warehousing units

Statistics for the year 2013-14

Sources: Odisha Agriculture Statistics, Department of Agriculture and Food Production, Odisha, IPICOL

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Cold storage and processing of Fruits & Vegetables

Cold chainFruit & vegetables fresh/ processedPotato processingValue added mangoValue added tomatoBottling unit RTE (Ready To Eat) RTC (Ready To Cook)IQF (Individual Quick Freezing) plant

Integrated farm level processing / transportation / distribution of vegetables, horticulture produces, milk, meat, prawn, fish & sea food Frozen, washed, cut, packaged fruits & vegetables Potato flakes potato french fries and wedgesMango pulpTomato paste, pureeJuices, ketchup, squash Curries, noodles etcRTC Frozen Items such as samosa, parantha, roti etcFrozen vegetables

Potential Areas of Investment Value-added Products / Potential Enterprises

22

14

12

6

4

2

Brinjal

Tomato

Cabbage

Okra

Onion

Potato

Mango

Banana

Citrus

Guava

Papaya

Cashew

7.5

5.0

3.0

1.0

0.7

0.9

Vegetable Production 2013-14

(in lakh tonnes)

Fruits Production 2013-14

(in lakh tonnes)

Sources: Directorate of Horticulture, Odisha

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Huge impetus by state government to promote integrated processing facilities such as Mega Food Parks and Seafood Parks

Mega Food Parks

MITS Mega Food Park, Rayagada

Seafood park, Deras, Khurda

Khurda Food Park, Khurda

In order to strengthen linkages between producer and consumer, the state is in the process of identifying more locations for setting up integrated agro parks in PPP mode.

Source: MoFPI, MITS MFP website, IDCO

Current status-

• Developed plots to be made available on lease with power, water & ETP facility

• Ideal for setting up units for pulping, frozen foods, ready to eat food, maize processing, rice milling, bottling , warehousing, cold storage etc.

• Total project cost is INR 80 Crores, IDCO holds 18% equity in the project

Current status-

• MoFPI has accorded in-principal approval

Proposed Details-

• Area- 150 Acres, Project cost- USD 22 milion

• Developed plots to be made available on lease

• Common facilities like ETP, pre-processing, block ice, cold storage, packaging units etc. are proposed

Current status-

• Food park spreads over 116 acres which has been allocated to number of units.

• Major brands include Coca-cola, Parle, Indo-Nissin, Denzong breweries, Britannia, Parle Agro etc.

• IDCO is considering expansion the park by adding another 50 acres

• Ample opportunities to set-up in food processing units

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Key private players present in the state….

National players

Local players

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Upcoming projects by large food processing companies in the state

ITC Ltd.

Reliance retail Limited

NSL Sugars Ltd.

Anmol Biscuits

Nayagarh Sugar Complex

Name Location

Khurda

Khurda

Paradeep, Jagatsinghpur

Khurdha, Bhubaneswar

Churcunda

InvestmentINR crore

402

500

800

81

238

Confectionaries and snacks

Food processing

Sugar

Biscuit

Sugar Plant

Area

Source: State Mission Directorate Odisha (website- www.ori.nic.in/diorissa)

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Government Schemes and incentives

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State Government Schemes……Industrial Policy Resolution (IPR), 2015Agro Processing sector is identified as one of the priority sectors in IPR 2015

Exemption from payment of premium, leviable under OLR Act, 1960

Entry Tax exemption

Stamp duty exemption

VAT exemption

Interest subsidy

Power: Electricity Duty exemption

Patents registration cost reimbursement

Quality certification (ISO) charges reimbursement

Technical Know-how cost reimbursement

Incentive Provision

100% exemption upto 100 acres and 50% for balance area

1.100% on acquisition of plant & machinery for setting up of industrial units

2. 100% of FCI on purchase of raw materials for a period of five years

100% exemption

100% of VAT paid for 7 years of FCI

5% per annum on term loan for 5 years availed from PFI’s/ banks up to Rs 1 crore

100% Exemption from electricity duty for 5 years for contract demand up to 5 MW

100% of the registration cost up to maximum of Rs.10 Lakh

Renewal for consecutive 2 years i.e., for a period of 3 years at 100% to a total maxi-mum of Rs 3 Lakhs

100% of the expenditure with limit of Rs 1 lakh for indigenous technology and Rs. 5 lakh for imported technology

FCI- Fixed Capital Incentive

Odisha Food Processing Policy, 2013

• Government earmarked land will be allotted to enterprises at prevailing rate as provided by GoO and IDCO • Capital Investment subsidy to enterprises @ 25% of the project cost subject to a limit of Rs.2 crores (33%

max up to Rs. 3 crore for units promoted by women, SC & ST entrepreneurs and units promoted in KBK (Kalahandi Balangir Koraput) areas

• 5% per annum back ended interest subsidy on working capital loan for first 5 years from commencement of operations of the units subject to a limit of Rs. 5 lakh per year for 5 years

• Electricity duty exemption for a maximum 10 yrs. from date of commercial production• Reimbursement up to 50% of cost of quality certification subject to ceiling of Rs. 2 lakh• Exemption on entry tax on plant and machinery and balancing equipment procured by MSMEs• Enterprises in Mega food park shall be eligible for reimbursement of 100% VAT paid for a period of 10 years

limited to 20% of fixed capital incentives• Facilitates participation of IDCO in SPV for Mega Food Parks / Sea Food Park through capital subsidy, rebate

on cost of preparation of DPR, VAT reimbursement, exemption of entry tax on plant & machinery and raw materials

Source: IPICOL website, MSME Department, Govt. of Odisha

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Other incentives …

Development of cold storePattern of Assistance (By central government under NMFP* 2012-13)

• Grant-in-aid @ 35% of the bank appraised project cost including interest during construction, subject to a maximum of Rs. 5 crores per project excluding cost of land

• Interest subsidy @ 6% max up to INR 2 crore for a period of 5 years

Pattern of Assistance (By state government under State Agriculture Policy- 2013)

• Subsidy @ 60% of the capital cost of project in general areas and 75% in the case of scheduled areas

Setting up and modernisation of food processing unitsPattern of Assistance (By central government under NMFP 2012-13)

• 25% as grant-in-aid of total cost of plant & machinery and technical civil works upto a ceiling of Rs. 50.00 lakhs

Pattern of Assistance (By state government under Odisha Food Processing Policy- 2013)

• Capital Investment subsidy to enterprises @ 25% of the project cost subject to a limit of Rs.2 crores

*NMFP 2012-13- National Mission on Food Processing

Source: National Mission on Food Processing, MoFPI, GoI

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Investing in Odisha

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Odisha is best suited for investment because of..

Competitive advantages

20

4.510 10

2

Cost of industrial land (USD per sq m)

Cost of office space (USD per sq ft per month)

Labor cost (Minimum wage USD per month)

6953 66 60 50

0.37

0.85

0.33

0.80

0.20

Andhra Pradesh

Andhra Pradesh

Andhra Pradesh

Chhattishgarh

Chhattishgarh

Chhattishgarh

Gujarat

Gujarat

Gujarat

Tamilnadu

Tamilnadu

Tamilnadu

Odisha

Odisha

OdishaWell developed industrial clusters

Supportive state government policies and incentives

Availability of skilled labour

High quality physical infrastructure

Inve

stm

ent E

nab

ling F

acto

rsSource: IPICOL

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Excellent Road, Railway & Shipping connectivity ….

Well connected to neighboring states and other parts of India through 15 national highways

Total Road Length 2,50,328 km

Road density 161.1km per 100 sq. km area (2012-13)

Private sector being encouraged to participate in the construction of highways. Around 3,704 Km of NH created by private sector

Odisha serves as a link between eastern and western India through the railway network of the South Eastern Railways and the East Coast Railways

Total Railway Length

2,469 Km (2011-12)

Well connected port with the broad-gauge rail link of the East-Coast Railway and is also served by National Highway-5A.

Major Port Paradeep, Dhamra

Minor Ports Gopalpur, Balasore

Other ports in Kirtania (Balasore district), construction Chudamani (Bhadrak district), Jatadhar (Jagatsinghpur district) and Astaranga (Puri district).

• 56.55 million MT of cargo handled in 2012-13

• Formation of Odisha Maritime Board is approved by the State government. This will act as the single-window agency for the development of ports and inland waterways.

• Phase-2 expansion of Dhamra port has received clearance from Ministry of Environment & Forests, which recommended a joint venture between Tata and L&T. This expansion is likely to increase the port’s capacity to 100 mtpa from 25 mtpa.

Source: Ministry of Road Transport & Highways, Economic Survey of Odisha, 2013-14

Source: http://www.indianrailways.gov.in

Source: Indian ports Association, Economic survey of Odisha 2013-14

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Air Connectivity…..

Direct connectivity with major Indian cities such as New Delhi, Kolkata, Chennai, Coimbatore, Banglore, Visakhapatnam, Mumbai and Hyderabad.

International Airport Biju Patnaik International airport Bhubaneswar

Proposed greenfield Airports Rayagada, Paradeep, Dhanara, Angul, Kalinganagar, Jharsuguda

AAI is planning to modernise, expand and operate Jharsuguda Airport in order to provide better connectivity to the upcomomg industrial hub

100% exemption on Value added tax (VAT) on air turbine fuel (ATF) and aviation gasoline for international flights, to attract commercial players.

The government has also initiated actions to encourage private players to utilize air cargo routes and develop world class cargo hub in Odisha.

Robust power infrastructure

Odisha is the first state in the country to bring in power sector reforms.

• Power surplus state including green power generation from hydro & renewable sources

• Existing power capacity of 13,311 MW is being augmented to 30,000 MW by 2017-18

• The present average demand and peak demand of the state has reached 2,600 MW and 3,300 MW respectively.

• Power tariff for allied Agro-Industrial Activities is INR 3.90/Kwh which is lowest in India

Central utilities share

State utilities share

Private sector share

22%

35%

43%

Total installed power generation capacity (September 2013)

7296.3 MW

30%

1%

69%

Thermal

Hydro

Renewable

Source: IDCO, Central Electricity Authority, www.business-standard.com/article/economy-policy/odisha, Economic Survey of Odisha 2014-15

Source: Airports Authority of India, Economic Survey of Odisha 2014-15

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Sufficient water availability to meet industrial water requirement

• Sufficient availability of water resources through natural sources

• Presence of Hirakud reservoir and rivers like Mahanadi, Tel etc. catering to the industrial water requirements act as strong positive factor for establishment of industries

• Central Ground Water Board estimates the total ground water resources at around 2.1 million hectare metres indicating sufficient availability of water in the future

Availability of high quality human resource• Ranked amongst the 10 leading states in the country in terms of employment generated by the MSME sector,

according to Union Ministry of MSME’s annual report for 2012-13.

• Technical education in Odisha is imparted through following institutions and Universities-

A. Engineering colleges

Government

Private

National Institute of Technology

B. Engineering schools/polytechnics

C. ITIs/ITCs

D. MCA colleges

E. MBA/PGDM Colleges

F. Agriculture University

G. Medical colleges

H. Dental Colleges

Type of institution (2011-12) Number

150

8

141

1

92

610

60

82

1

6

4

Intake capacity

38,253

2,223

35,670

360

28,665

67,251

3,817

5,425

1,250

750

300

Source: Economic Survey of Odisha, 2014-15

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Key industrial infrastructure

8 Active SEZs

IT/ITeS

Mineral-based SEZ

Aluminium

Multi-product

Solar

Industry Location

Khurda, Jatni, Bhubaneswar

Ganjam

Jharsuguda

Ganjam, Jagatsinghpur

Cuttack

SEZs (No)

3

1

1

2

1

Sources: IPICOL, IDCO

IDCO Infocity, BhubaneswarFortune Tower, Bhubaneswar

104 Industrial Estates with 1,562 sheds and over 10,000 acres of land developed at strategic indus-trial regions

Food processing & seafood parksAluminium parksSteel downstream parksAuto parksKnitwear parkKonark knowledge parkPlastic & polymer park

Kalinganagar with1,500 acres within industrial complex steel & metallurgical hub of Odisha

Jharsuguda with 585 acres within major steel & power indus-trial belt

Khurda & Balasore with 150 & 178 acres respectively for SME industries

3 IT/ITES parks

Infocity- 1st IT park developed by IDCO, spread over 290 acres

Infovalley- IT & ESDM park spread over 665 acres of land is under development

Infopark-being developed by IDCO and DLF ltd. under PPP mode spreas over 54 acres of land to offer quality built-up space

Industrial estates

Industrial Parks

Growth centres

IT/ITES & ESDM Parks

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Sector wise priority PPP projects

Ports

Sector Project

Dhamara Port

Gopalpur Port

Four-laning of Sambalpur-Rourkela road

Contract authority/ Departments

3639

1213

1293

1559

1768

Roads

Commerce & Transport

Commerce & Transport

Works Department

Commerce & Transport

Commerce & TransportRailways

Haridaspur-Paradeep

Angul- Duburi- Sukinda

Sector Specific Industrial Parks

Plastic & Polymers cluster at Balasore

Mega Food park at Rayagada

Seafood Park at Deras

84

80

116

User Participation Model, NOCCi

User Participation Model, MITS

User Participation Model, IDCO

Agriculture sector

Healthcare Sector

40

200

250

660

OSCSC

Health & Family Welfare

Others

Bulk water supply for Southern Bhubaneswar region

Energy Efficient lighting in 5 towns

Solid waste management in Bhubaneswar and Cuttack

Health & Family Welfare

User Participation Model

Housing and Urban Development

Municipal Corporation

Municipal Corporation

188

Investment in INR crores

NA

200

Sources: State PPP and PM cell, Planning and Coordination Department, GoO

Rice storage and warehousing infrastructure

Odisha emergency medical ambulance service

Greenfield hospital & healthcare network project in Bhu-baneswar

Medical colleges & associated hospitals in Gajapati & Rayagada

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Doing Business in

Odisha

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Easier and faster approval process…Odisha Industries Facilitation Act (OIFA) 2004 allows all clearances required to start and operate an industry through a single point within a set time period

Source: IPICOL

SWCA: Single Window Clearance Authority

Single Window Facilitation

1   2   3   4   5   6  

DedicatedFacilitation

Cells

Odisha Industrial Facilitation Act

Central Inspection Framework

LabourReforms

Online Consent Management

Timelines for Approvals

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To strengthen the investor facilitation, the Government has constituted dedicated Investor Facilitation Cells at the State and District levels. The key objective is to guide the investors, assess the project proposals for land and utility requirements and follow up for timely approvals for establishment & operation of the units.

Key approvals for doing business in Odisha

Investment Facilitation Cell

Incorporation of Company

Registration / Industrial License / Industrial Entrepreneurs M emorandum (IEM)

Allotment of Land

Permission for Land Use (In case industry is located outside an industrial area)

No-Objection Certificate (NOC) and Con-sent under Water and Air Pollution Control Act

Forest and Environment Clearance

Approval of Construction Activity and Building Plan

Sanction of Electricity

Water Supply

Factory and Boiler Clearance

Finance

Orissa Value Added Tax (VAT) Act, and Central and State Excise Act

More than INR 50 Crores

Chaired by CMD, IPICOL and convened by CGM/GM, IPICOL.

Representatives from IDCO, SPCB, OPTCL, DoF&B, Water Resource Department and Industry association

Chaired by the GM, RIC/DIC and convened by Assistant Manager DIC/RIC.

Representatives from IDCO, SPCB, DoF&B and district level industry association.

Investment size

Structure

Less than INR 50 crores

Approvals/Clearances Required

State Level facilitation cell District level facilitation Cell

Departments to be Consulted

Registrar of Companies

District Industries Centres for SSI, Secretariat for Industrial Assistance (Government of India) for Large and Medium Industries

Industrial Infrastructure Development Corporation (IDCO)

IDCO, Department of Town and Country Planning , Local authority/District Collector

Orissa State Pollution Control Board (OSPCB)

Ministry of Forest & Environment, Government of India

Concerned Development Authority

Distribution Companies- CESU, NESCO, SOUTHCO, WESCOTransmission Company- Orissa Power Transmission Corporation Ltd.(OPTCL)

Department of Water Resources

Chief Inspector of Factories and Boilers

Orissa State Financial Corporation(OSFC), IPICOL, Commercial Banks such as IDBI, ICICI, State Bank of India, etc.

Commercial Tax Department and Central and State Excise Department

Source: Team Odisha website www.teamodisha.org, IPICOL

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Investment promotion and Investor facilitation for approvals

Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL)

Promotion, establishment and operation of industries in the state

Industrial Development Corporation of Orissa Limited (IDCOL)

Financial support and subsidy for promotion and development of agro-based and food-processing industries.

Agricultural Promotion and Investment Corporation of Orissa Limited (APICOL)

Financial assistance to small and medium scale industries

Provides soft loans and margin money for rehabilitation of sick industrial units

Land acquisition

Infrastructure Development

Project construction

Industrial promotion

Orissa Industrial Infrastructure Development Corporation (IDCO)

Export promotion of goods from Odisha

Marketing assistance to SSI units of the state

Aiding and assisting SSI units in the state for their sustained growth and development

Orissa Small Industries Corporation Ltd (OSIC)

Facilitation of business in pisciculture in brackish water areas, freshwater ponds and other water sources.

Orissa Pisciculture Development Corporation Limited (OPDC)

Industrial promotion facilitators

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APICOLCAGR DICDPRDoF&BESDMETP FCIFDIGoIGoOGSDPHaIDCOINRIPICOLITESKBKMoFPIMSMEMTNMFPOSCSCOMFEDOSPCBOPTCLRBISEZsSFEASPVVAT

Glossary

Agricultural Promotion & Investment Corporation of Odisha LimitedCompound Annual Growth RateDistrict Industries CentresDetailed Project ReportDirectorate of Factory & Boiler OdishaElectronic System Designing & Manufacturing Effluent Treatment PlantFixed Capital IncentiveForeign Direct InvestmentGovernment of IndiaGovernment of OdishaGross State Domestic ProductHectareOdisha Industrial Infrastructure Development Corporation Indian RupeesIndustrial Promotion and Investment Corporation of Odisha LimitedInformation Technology Enabled ServiceKalahandi Balangir KoraputMinistry of Food Processing Industries Medium Small and Micro EnterprisesMetric TonesNational Mission on Food ProcessingOdisha State Civil Supplies Corporation LimitedOrissa State Cooperative Milk Producers’ Federation Limited Orissa State Pollution Control BoardOrissa Power Transmission Corporation Ltd.Reserve Bank of IndiaSpecial Economic ZonesSea Food Exporters AssociationSpecial Purpose VehicleValue Added Tax

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Industries DepartmentGovernment of OdishaBhubaneswar- 751 001, Odisha, IndiaTel: +91-674-2536640/2390253, Fax: +91-674-2536819/2394051Email: [email protected], Website: http;//orissa.gov.in/industries/index.htm

Industrial Promotion & Investment Corporation of Odisha Limited (IPICOL)(The Secretariat of Team Odisha) (An ISO 9001:2008 Certified Investment Promotion Agency)IPICOL House, Janpath, Bhubaneswar-751 022, Odisha , IndiaTel: +91-0674-2542601/03, 2542607-08, Fax: +91-0674-2543766 E-mail: [email protected], Website: www.investodisha.org

Odisha Industrial Infrastructure Development Corporation (IDCO)(Govt. of Odisha undertaking )IDCO Tower, Janpath, Bhubaneswar – 751 022, Odisha, IndiaTel: +91-674-2540820/2542784, Fax: +91-674-2542956 Email: [email protected], Website: www.idco.in

Odisha Investment and Export Promotion Office (OIEPO)Office of the Chief Resident Commissioner, Govt. of Odisha Odisha Niwas, 4 –Bordoloi Marg, Chanakyapuri, New Delhi -110 021,Tel: +91-11-23014250, Fax: +91-11-23010839 Email : [email protected], [email protected] Website : www.oiepo.teamorissa.org

Directorate of IndustriesKilla Maidan, Cuttack-753 001, Odisha, IndiaTel: +91-671-2301892, Fax: +91-671-2307331Email: [email protected], Website: http://ws.ori.nic.in/diorissa

The Agricultural Promotion & Investment Corporation of Odisha Limited (APICOL)(A wholly owned corporation of the Government of Odisha) Department of Agriculture 326, Baramunda, Bhubaneswar – 751 003, Odisha (India), Tel: 0674-2354125, Fax-0674-2354006Email: [email protected] / [email protected], Website: www.apicol.co.in

Developed under Odisha Inclusive Growth Partnership (OIGP)

Come. Invest. Grow.