The federal government has additionally recognized new industrial land places close to the state capital and Jharsuguda to handle the rising demand, says Sharma. He additionally mentions that they’re particularly focussing on districts, resembling Khurda, Cuttack, Jagatsinghpur, Sundargarh, and Jharsuguda, the place industrial investments are concentrated and are taking particular care in these areas. Edited excerpts:
The Financial Occasions (ET): What’s your imaginative and prescient for Odisha’s industrial improvement?
Hemant Sharma (HS): So far as the brand new authorities is worried, the imaginative and prescient for industrial improvement in Odisha is mainly to deal with job creation. First, the federal government is extremely concerned about sectors that generate extra employment. The second a part of our focus is clearly our conventional trade. As a mineral-rich state, we are going to proceed to deal with metal, aluminium, and cement industries, with the federal government aiming for balanced regional improvement.
The federal government desires industries like metal and aluminium to be positioned close to mineral sources, selling regional improvement in areas the place they’re discovered, moderately than in different areas. The federal government now goals to prioritise industrial improvement in mineral-rich areas, providing incentives to draw industries to those areas. The third focus space is on new-age industries, together with info know-how and providers sectors like well being and tourism, aligning with developments seen in different states.
ET: Odisha has carried out a number of roadshows throughout India and overseas. However now we have seen throughout the nation that not all promised investments or MoUs materialise, as they’re typically non-binding and prone to delays or cancellations resulting from numerous components. How do you make sure the investments promised throughout these occasions flip into actuality? What number of of those promised investments have materialised thus far?
HS: It’s a incontrovertible fact that many occasions roadshows additionally result in non-serious MoUs or non-serious funding intents. So, our focus below the brand new authorities has been mainly to attempt to shift out these sorts of circumstances on the preliminary stage itself. We welcome participation in our roadshows with out restrictions. Nevertheless, in the case of signing MoUs or accepting funding proposals, we conduct due diligence to evaluate the seriousness of buyers and our potential to assist the venture, together with offering crucial assets like land, earlier than transferring ahead.In the course of the Utkarsh Odisha roadshow, we obtained funding intents price over Rs 17 lakh crore, accepted over Rs 12 lakh crore, and saved Rs 5 lakh crore for additional dialogue. The federal government’s technique is to expedite land acquisition for industries to facilitate early begins, as delays typically stem from inner processes moderately than investor enthusiasm. The issue generally—or, I might say, more often than not—lies with us. If we will’t present the required land in the popular location on time, buyers will doubtless select different locations, making it more durable to draw funding.
After Utkarsh Odisha, now we have been working to map obtainable land and conduct subject visits for industries over the previous 2-3 months. We’ve made progress and categorised potential websites based mostly on land necessities: as much as 100 acres, 100-500 acres, and 500 acres or extra. For bigger land necessities (over 500 acres), acquisition will take time. Nevertheless, smaller parcels (100 acres) could be expedited, boosting investor confidence. We’ve made progress in 100 days, finalising land for 14 out of the 145 signed MoUs. We’ve handed over land to 14 buyers, they usually have begun building. Reaching this in 100 days, particularly for about 10% of our MoUs, is a promising begin, I might say.
We’re additionally working to hurry up land acquisition by providing higher costs to landowners and streamlining the method. To expedite this, we try to run actions in parallel and interesting native leaders to persuade villagers of the advantages of financial progress. Thus far, now we have seen cheap success. Notably, for the naphtha cracker venture by Indian Oil Company, now we have secured over 800 acres out of the required 1,500 acres, with soil testing underway and website improvement set to start after the monsoons. Equally, in our bigger investments in Keonjhar, the place there’s a JSW Group’s new metal plant, and in addition for the enlargement of three of our main metal crops within the state, together with those in Kalinganagar and Angul, now we have had cheap success. We’ve secured roughly 5,000 acres of land for 4 main industries over the previous three months.
ET: We’ve traditionally seen that states, together with Odisha, face hurdles in land acquisition for industries resulting from environmental issues and group displacement, notably affecting tribal populations. Hanging a steadiness between industrial improvement and environmental safety whereas guaranteeing honest rehabilitation and resettlement of displaced communities is important. What has the federal government completed thus far on this regard?
HS: Sure, actually. So, as an example, we’re buying 1,500 acres for IOCL at Paradip and concurrently growing a 200-acre township for 3 main metal crops, which is able to function Resettlement and Rehabilitation (R&R) colonies. Building has already begun on ArcelorMittal Nippon Metal India’s R&R colony, with JSW’s set to begin quickly. In the meantime, IOCL doesn’t require displacement; nonetheless we’re developing an enormous advanced the place there are some LIG housing complexes.
To facilitate relocation, folks want two key issues: honest land costs and engaging rehabilitation packages. The brand new land acquisition Act permits for higher worth negotiations. Moreover, growing R&R colonies with facilities like colleges, hospitals, and social infrastructure helps cut back resistance by showcasing tangible improvement advantages.
We’ve recognized new places close to the state capital and Jharsuguda to handle rising industrial land demand. On condition that industrial investments are concentrated in 5 districts—Khurda, Cuttack, Jagatsinghpur, Sundargarh, and Jharsuguda—we’re taking particular care in these areas. Our strategy consists of land pooling, the place 55% of the land is reserved for villagers, and prioritising land acquisition that avoids displacing habitations, focussing on areas the place houses gained’t have to be relocated. Our R&R coverage is effectively regarded throughout the industrial sector, however we have to deal with producing consciousness and interesting instantly with the folks to additional enhance its influence.
ET: Diversifying Odisha’s economic system by means of non-mineral sectors, resembling manufacturing, IT, and tourism, can cut back its dependence on minerals and metals. What actions is the federal government taking relating to this? What distinction is the federal government making to compete with different states within the nation?
HS: Our strengths lie in two key geographical benefits: mineral assets, which are a magnet for metal crops, and our ports, which make us an excellent location for chemical and petrochemical industries. We’re leveraging these benefits to attract in investments.
Why ought to the IOCL naphtha cracker come to Paradip? Solely due to the port’s potential to deal with liquid cargo, its proximity to delivery lanes for crude oil, and its strategic location close to Southeast Asian markets. We’re leveraging our coastal benefit to draw non-mineral industries, evident within the development of huge industries organising close to our ports like Gopalpur, Paradip, and Dhamra.
Odisha additionally provides a powerful benefit in labour-intensive industries like textiles and meals processing resulting from its availability of expert employees. Many firms are conscious {that a} important variety of employees from Odisha are already employed in main cities like Pune, Chennai, and Bengaluru, highlighting the state’s workforce potential.
ET: Fostering industries that prioritise clear applied sciences and sustainable practices is essential to long-term environmental sustainability. What’s Odisha’s industrial coverage with respect to sustainability and inexperienced objectives?
HS: Our industrial coverage provides further incentives for industries that undertake environmentally sustainable practices, resembling utilizing desalination crops, widespread effluent therapy crops, or implementing zero liquid discharge methods. We even deal with current industries that improve to those measures as new industries, making them eligible for incentives.
For MSMEs, which are sometimes pushed by incentives, we have to undertake a distinct strategy since they usually face much less ESG strain. To encourage sustainable practices, we provide incentives, resembling overlaying as much as 50% of the fee for organising amenities like Zero Liquid Discharge (ZLD) crops, as seen in our assist for rice millers in Odisha. This incentive-driven technique goals to drive behavioural change amongst MSMEs.
ET: Excessive prices of constructing and working chilly storage amenities, coupled with frequent rural energy outages, hinder smaller farmers and entrepreneurs from collaborating in worth addition, resulting in potential losses and disruptions within the chilly chain. What’s the federal government’s plan for rural agriculturists and entrepreneurs with respect to this?
HS: The state authorities lately launched a chilly storage coverage to handle shortages of tuber crops like potatoes, pushed by rising consumption and manufacturing. We’ve recognized 45 places for personal sector-led chilly storage initiatives, providing incentives and investing in exterior infrastructure. To make sure steady operations, we’re allocating land close to industrial grids with dependable energy provide. This initiative goals to advertise chilly storage improvement throughout the state over the subsequent 5 years.
ET: MSMEs typically face a large number of challenges associated to entry to finance, technological adoption, expert workforce availability, market entry, regulatory compliance, infrastructure, uncooked materials procurement, and delayed funds that may negatively influence them. May you make clear the coverage measures launched to spice up the MSME ecosystem in Odisha?
HS: MSMEs typically battle with accessing credit score at cheap charges resulting from collateral safety calls for. To handle this, our authorities has launched a top-up scheme to the prevailing Credit score Assure Belief for Micro and Small Enterprises (CGTMSE) initiative by the Authorities of India. This scheme permits for collateral-free lending as much as Rs 10 crore by means of collaborating banks and SIDBI, offering much-needed assist to MSMEs.
We provide a top-up to Authorities of India schemes, resembling CGTMSE, Mudra loans, and PMEGP loans. As an example, if the Centre supplies a 0.25% subsidy, we add one other 0.25%. Equally, for working capital help, we match the rate of interest advantages supplied below central schemes. This partnership serves two functions: it leverages the Centre’s schemes, guaranteeing higher scrutiny and lowered paperwork for us, whereas instantly benefiting MSMEs by means of enhanced monetary assist.
ET: Odisha accounts for over 15% of India’s seafood exports, with large-scale fish and shrimp processing hubs. How do you see the US tariffs impacting the state’s seafood exports?
HS: Seafood export is a really huge agenda for us. So, as an example, normally it’s within the vary of about Rs 4,000-5,000 crore every year of seafood exports from Odisha. Of which about Rs 1,200 to Rs 1,500 crore, is destined for the US, which is a really huge quantity.
ET: Will Odisha’s seafood exports be hit by Trump’s tariffs?
HS: After all.
ET: What are your plans to safeguard the seafood trade?
HS: We’re in dialogue with the seafood exporters affiliation. As of now, the influence of the proposed tariffs stays unclear. Whereas it’s clear that tariffs will have an effect on farmers and exporters, we’re nonetheless finalising coverage devices to mitigate these results.
