Investing in Agribusiness and Food Processing
Transcript of Investing in Agribusiness and Food Processing
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2
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
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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
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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
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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
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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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35
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.