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Emerging East: Orissa’s Turn Around . MP Mr. Baijayant Panda and Professor Chitta Baral Arizona State University chitta@asu.edu. ORISSA. Structure of Presentation. Orissa’s vision Competitive advantages Orissa – the State on path of progress Human Resources Development Infrastructure

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emerging east orissa s turn around
Emerging East: Orissa’s Turn Around

MP Mr. Baijayant Panda

and

Professor Chitta Baral

Arizona State University

chitta@asu.edu

structure of presentation
Structure of Presentation
  • Orissa’s vision
  • Competitive advantages
  • Orissa – the State on path of progress
  • Human Resources Development
  • Infrastructure
  • Opportunity Orissa
state at a glance
State at a Glance
  • Capital – Bhubaneswar
  • Area – 1,55,707 square kilometers
    • Same as NY + CT
  • Population 2001 – 36,804,660
    • Same as the population of CA in 2006
  • Major industries – Steel, Aluminum, Power, Cement, Mineral-based, Paper, Higher Education
  • Connectivity
    • Air: Bhubaneswar
    • Roads: A leg of the Golden Quadrilateral passes through it
    • Rail: Howrah –Chennai and Howrah – Mumbai
    • Major Port: Paradeep
vision of orissa
Vision of Orissa

“To usher in balanced socio-economic growth of Orissa that hinges on sustainable development with strong fundamentals of industrial growth, right harnessing of natural resources and actualization of employment potential.”

Shri Naveen Patnaik

HonourableChief Minister

Orissa

did you know this about orissa the making of a knowledge hub in bhubaneswar
Did you know this about Orissa? The making of a knowledge hub in Bhubaneswar
  • Institutes aspiring to be an MIT (IIT Bhubaneswar), a Cal Tech (NISER Bhubaneswar), a Berkeley (NU Bhubaneswar) and a Stanford (Vedanta University Puri) are currently being built in the Bhubaneswar-Puri area of Orissa.
  • Part of the Government of India’s 11th plan initiative of 8 new IITs, Six science institutes and 14 National Universities
    • No other metropolitan area in India is currently scheduled to have more than two; Bhubaneswar will have all three
      • NISER Bhubaneswar: 2nd batch started this year
      • IIT Bhubaneswar: 1st batch started this year
    • Vedanta University in Puri – a $3 billion university with a $1 billion initial pledge from Mr. Anil Agarwal
  • 10 existing universities, 15 more being made; 39 existing engineering colleges, 12 more in pipeline; 15+ existing colleges (some offering graduate degrees)
did you know this about orissa the making of a transportation channel
Did you know this about Orissa? The making of a transportation “channel”!
  • Ports (existing and in pipeline)
    • Paradeep
    • Dhamara
    • Gopalpur
    • Kirtania
    • Jatadhari (for POSCO)
    • Astaranga, Puri
    • Bahuda Muhana, Ganjam
    • Baliharchandi, Puri
    • Barunei, Kendrapada
    • Chudamani, Bhadrakh
    • Inchudi, Balasore
    • Palur, Ganjam
  • National waterway 5
power tariff
Power Tariff
  • Orissa is a power surplus State
  • Orissa has successfully carried out power sector reforms - Distribution privatised
density of roads
Density of Roads
  • Road length per 1,000 square kilometre of area
  • Source: Planning Commission, Statistical Abstract of India
number of strikes lockouts
Number of Strikes & Lockouts
  • Number of strikes & lockouts (2002)
  • Source: Indian Labour Year Book, Labour Bureau, Ministry of Labour, GoI, 2002
  • Industrial Disputes in India, 2001
competitive advantages
Competitive Advantages

In a globalised scenario, Orissa has drawn attention of investors with strengths:

Natural

  • Rich mineral resources (*)
  • Coastline – gateway to SE Asian & Far Eastern markets
  • Adequate fresh water available for industrial use
    • About 10% of India’s utilizable water (surface & ground): 108.147 Billion Cubic Meters.
  • Discovery of natural gas off the coast

Institutional

  • Positive investment climate & single window industrial facilitation by Team Orissa (*)
  • Proactive policy framework for developing key economic sectors and for infrastructure buildup
competitive advantages1
Competitive Advantages

Developmental

  • Land contiguous to ports available for industries
  • Surplus quality power at most competitive rate (*)
  • Part of the mainline national rail and road grid

Economic

  • Low cost labour and availability of skilled workforce
  • Predominance of organised industrial activity (*)

Infrastructural

  • Major port at Paradeep moving 50 mtpa
  • 90 industrial parks / growth centres (9000 hectares)
  • Seamless connectivity by rail & road
  • Highest density of roads in eastern India (*)
competitive advantages2
Competitive Advantages

Competitive

power tariff

Land bank

Plentiful

water

Mineral

resources

in proximity

Lowest cost producer

of Steel / Alumina

Skilled

manpower

Government

facilitation

Rail connectivity

Investor

friendly policies

Port facility

Road network

orissa the state on the move developments during the last three years
Orissa - The state on the move…Developments during the last three years

Metal Sector

  • Preferred destination for Foreign & Domestic Investors
  • 45 projects for over 70 mtpa of Steel (28 plants partly commissioned). More than US$45 Bn investment
  • 4 new aluminum complexes with more than 4 mtpa alumina and 1 mtpa aluminum smelter capacity under implementation (US$ 10 Bn)
  • Rare earth projects through FDI mode (US$ 0.50 Bn)
  • Major investors in the metal sector - POSCO, Arcelor-Mittal, Tata Steel, Bhusan, Jindal, Essar, Aarti, Hindalco, Vedanta, L&T – Dubai Aluminium, etc

Rourkela Steel Plant

Workshop

orissa the state on the move developments during the last three years1
Orissa - The state on the move…Developments during the last three years

Chemical & Petrochemical

  • 15 mtpa mega petrochemical complex by IOC (US$ 6Bn)
  • Deepak Fertilizers implementing 2 chemical projects at Paradeep
  • Mega Petroleum, Chemicals & Petrochemicals Investment Region (PCPIR) under development in Paradeep area (284 Square kilometres)

Cement

  • 5 mtpa capacity addition utilising flyash & blast furnace slag ($0.50 Bn)

Chemicals

Petrochemicals

orissa the state on the move developments during the last three years2
Orissa - The state on the move…Developments during the last three years

Energy and Power

  • 13 Thermal Power Projects under implementation with capacity of 13,500 MW (US$ 11 Bn)
  • Major names include Tata Power, Reliance Energy, Sterlite Energy, Mahanadi Aban, Monnet Ispat, Essar Power, Lanco Group, NavBharat Power, CESC and GMR Energy
  • Project by Reliance Industries Limited for hydrocarbon based power generation & gas grid (US$ 1.5Bn)
  • Various Mini-Hydel projects with a combined capacity of 200 MW
  • Non-conventional projects with 100 MW

Energy & Power

Power Sector

orissa the state on the move developments during the last three years3
Orissa - The state on the move…Developments during the last three years

Special Projects

  • Mega shipbuilding & repair yard at Dhamra ($ 0.6 Bn)
  • Auto components park by RSB

Tourism

  • 5.3 million tourists visited Orissa in 2006 (growth rate >13%)
  • Foreign tourists 40,000 (growth rate 17%)
  • Hospitality sector investments by some of the most respected hotel chains
  • Special Tourism Area (STA) near Puri spread over 1000 acres already under implementation
  • Infrastructure upgradation projects in the Buddhist and beach-based circuits

NALCO

Exotic Beach at Puri

orissa the state on the move developments during the last three years4
Orissa - The state on the move…Developments during the last three years

Mega Infrastructure Projects

  • Development of industrial, economic & social infrastructure in steel & mining corridors
  • Major expansion of Paradeep Port underway
  • 12 SEZs including 4 IT SEZs approved by GoI
  • 4 new ports (US$ 2Bn) at Dhamra, Gopalpur, Jatadhari Muhana and Kirtania in progress and more being explored on 480 km long coast line of the state
  • Bio-pharma Park in Bhubaneswar through PPP
  • Integrated Textiles Parks at Choudwar
  • Auto complex at Choudwar (*)
  • Extensive rural electrification programmes
  • Bhubaneswar Airport modernization
  • International Convention Centre at Bhubaneswar

Paradeep Port

Infocity, Bhubaneswar

orissa the state on the move developments during the last three years5
Orissa - The state on the move…Developments during the last three years

Information Technology Sector

  • Software exports in excess of US$ 175 mn during 2006 - 07
  • Orissa emerging as an IT / ITES powerhouse with presence of Infosys, Satyam, Wipro, TCS, Mindtree, ICICI Bank, Genpact (200,000 software professionals by 2015)
  • SMEs: More than 300 units and 12000 software professionals engaged in the state
  • Group of investors from Silicon Valley setting up 5000 seater IT/ITES facility
  • Target of exporting software to the tune of US $ 1000 mn by 2011-12
  • Integrated IT City over 500 acres underway

Satyam Campus, Bhubaneswar

Infosys Campus, Bhubaneswar

recent fdi projects in orissa
Recent FDI projects in Orissa
  • Largest FDI of US$12 Bn by Korean Steel Giant POSCO in steel sector
  • Other big FDI projects:

Biju Patnaik International Airport

Nine hole Golf Course at Infocity

infrastructure
Infrastructure

ROADS & RAILWAYS

  • Monitoring by Prime Minister’s office of priority infrastructure projects catering to the steel and mines corridor
  • Over $ 5 Bn investment in road sector in next 5 years
  • About $ 1.5 Bn investment in railways in next 5 years
  • Massive urban infrastructure upgradation through national level programmes
  • Investment through public funding and private participation

XIM, Bhubaneswar

Road in PPP mode

  • Source: Indiastat
slide29

INDUSTRIAL ZONES AND BIG PORTS

Zone III

Zone V

KIRTANIA PORT

Zone IV

Zone I

DHAMRA PORT

Zone II

PARADEEP PORT

Zone VI

GOPALPUR PORT

Circle I Steel, Power, IT, Tourism & Ports

Zone III Mining, Power, Steel

Zone VI Alumina

state capital bhubaneswar
State Capital-Bhubaneswar

Quality of Life

  • Bhubaneswar is the 2ndplanned city in the country and is the safest and most economical Capital in the country making it very popular with the young masses in Eastern India (*)
  • Well connected to major cities in the country
  • Among 5 fastest growing cities in real estate
  • Pollution free environment with very pleasant and comfortable living conditions
  • Excellent residential, recreation and entertainment facilities
  • Top quality schools & colleges
  • Large multidisciplinary hospitals by AIIMS & Apollo; Specialty Centres for cancer, heart, eye, diabetic research, spinal injury and trauma care
  • Fascinating weekend getaways, pristine beaches, exotic flora & fauna and wildlife sanctuaries, at proximity

Shopping Malls

Hotel Swosti Plaza, Bhubaneswar

Well planned Residential Complexs

bhubaneswar puri area as a knowledge hub soon to have 25 universities
Bhubaneswar-Puri area as a knowledge hub: soon to have 25 universities

Existing Universities

Upcoming universities

Vedanta University

National University (WCCU)

AIIMS Bhubaneswar

National Law University

Sri Sri University

ICFAI University

Jagadguru Kripalu University

Orissa open university

National Institute of Design (?)

6 deemed university applications in pipeline

12 four year engineering colleges

  • IIT Bhubaneswar
  • NISER Bhubaneswar
  • Utkal University
  • Orissa U of Agriculture and Tech.
  • Ravenshaw University
  • IIIT Bhubaneswar
  • Utkal Univ. of Culture
  • Sri Jagannath University
  • KIIT deemed University
  • SOA deemed University
  • 39 additional four year engineering colleges, some with graduate programs
  • 30+ Colleges offering Bachelors in non engineering subjects (some offering graduate programs)
slide32

Vedanta University Master Plan (Ayers St. Gross designed):

For 100,000 students and 500,000 city residents Plan

slide33

Building Uses

Vedanta University Plan Master Plan\

Academic

Housing

Administration

Library

Student Union

Performing Arts

Recreation

slide34

Academic Precincts

University Master Plan

Research

Liberal Arts

Classics

Journalism

Architecture

Facilities

Humanities

Education

Arts + Music

Professional Studies

Performing Arts

International Studies

Recreation

Library

Health Science

Engineering

Bioscience

Sciences

Medicine

Hospital

Business

Dentistry

Nursing

Law

Graduate Studies

vedanta university hospital medical school
Vedanta University Hospital Medical School
  • Perkins and Will http://www.perkinswill.com/ has been shortlisted to design the complex (34 acres)
  • Jensen partners (http://www.jensenpartners.com/) has been shortlisted to equip the medical college and develop the program
  • Overall status: About 3500 of the 6000 acres have been acquired
  • Work on the building expected to start in the end of October 2008.
medical colleges in bhubaneswar puri area
Medical Colleges in Bhubaneswar-Puri area

Existing

Upcoming

Medical College of Vedanta University

AIIMS Bhubaneswar

Capital Medical College

Medical College of Sri Sri University

Medical College of National University

  • SCB Medical College
  • HiTech Medical College
  • Kalinga Institute of Medical Sciences
  • SUM Hospital and Medical College
human resources development in orissa
Human Resources Development in Orissa

Higher Education

  • Hub of engineering, management & medical education in Eastern India
  • Tripling of engineering/MCA technical education capacity since 2001
  • 30,000 B.Tech / MCA, 3000 Management professionals and 50,000 general graduates pass out every year
  • Apeejay implementing integrated Knowledge Park
  • Besides IIT, NISER, & World-Class Central University, a central University in Koraput and a IIIT in Berhampur.

Utkal University, Bhubaneswar

RIE, Bhubaneswar

orissa what the experts say
Orissa: What the experts say
  • Mckinsey 2005: “Orissa’s economy is poised to grow at 7.1% over the next 10-12 years, the highest in Eastern India”
  • CMIE 2006 & 2008: “Orissa accounts for 15% of total investment in hand in the country. It tops in terms of Industrial investment ($133 Bn) and project implementation ahead of Maharashtra & Gujarat”
  • World Bank 2008: “Orissa is a State on the move. GSDP has grown at the rate of 8.5% on average during 2002-07”
  • Alastair King, CEO of UK-based India investor Eredene Capital (Quoted in a Reuter article): "Relative to building the 10th new retail mall in a suburb of Mumbai ... I'd much rather build the first distribution park in the steel industry of Orissa, where you've got great demand."
why orissa
Why Orissa?

Positive investment climate

  • Vibrant industry sector
  • A proactive and positive Government with a modern outlook
  • Stability of political regime and policy framework for developing key economic sectors and for infrastructure buildup (Legislative framework to reduce transaction time & cost for investors)
  • Strong institutional support and Single Window facilitation by Team Orissa
  • Harmonious industrial climate and relations (*)
  • Team Orissa
    • Chief Minister is the captain of Team
    • Institutional framework of the Government that is engaged in industrial facilitation and investment promotion

Mukteswar

Secretariat Building, Bhubaneswar

why orissa1
Why Orissa?

Government promoting inclusive growth for sustainable & balanced development:

  • People oriented R & R policy
  • Strong institutional mechanism to promote periphery development with involvement of all stakeholders
  • Stress on environment management
  • Focus on SME sectors
  • Strategy to leverage natural resources for all-round prosperity and enabling rural livelihoods
  • Rapid infrastructure development through PPP framework and policy

KIIT University, Bhubaneswar

Well planned Roads

opportunity orissa
Opportunity Orissa
  • Education and Knowledge Sector
  • Automobile sector
  • Ancillary / downstream / construction phase projects of mining / steel / aluminium / petrochemicals (*)
  • Equipment and technology suppliers & vendors
  • Heavy engineering and fabrication
  • Plant and machineries for ports (*), roads, industrial water supply, mining equipments, etc
  • Power projects – coal washing, modernisation of existing units, renewable energy
  • Marine fisheries & infrastructure
  • Services sector
  • Tourism
  • Information Technology / ITES
opportunity orissa1
Opportunity Orissa
  • Development of industrial parks and SEZs (*)
  • Critical economic & social infrastructures in industrial and mining corridors – roads, water supply, housing, hospitals, etc
  • Construction domain including industrial construction, townships, roads, ports, real estate and other infrastructure
  • Technology applications in utilisation of flyash and blast furnace slag
  • Clean development mechanisms projects – green manufacturing processes and technology
invest in orissa and be a preferred partner
Invest in Orissa and be a preferred partner
  • CAPEX database of The Centre for Monitoring Indian Economy (provider of project-wise information of new and ongoing capital expenditure projects in the country)
    • Ranks Orissa first in terms of value of total envisaged projects for the period ending December 2007.
      • Estimated investment of Rs 599,181 crores (= $150 billion)
    • Ranks Orissa first in terms of value of total projects under implementation in the country at Rs 308,589 crore.
    • There are 483 projects being carried out in Orissa: 52% are under implementation stage while 48% are in the announced stage.
the future is now and here
The future is NOW…and HERE!!

Thank You

Websites:

www.orissagov.nic.in

www.teamorissa.org

www.idcoindia.com

www.orissagrowth.org

land acquisition
Land Acquisition
  • We hear of the two problem ones (POSCO, Tata Steel)
  • Huge list of projects that have successfully acquired land and many already in operation
  • But there is a problem, not just in Orissa, but in India
    • They are being addressed at the national as well as state level
    • E.g. R & R policy are being updated so that they give people a stake in the success of the project
  • Some suggestions
    • Connect with locals; Make them feel that the company cares about them
    • Don’t leave everything to the government
    • Hire experienced local managers
    • Keep a low profile
mou versus implementations
MOU versus implementations
  • From http://go.worldbank.org/F6WBERON80
  • Has the signing of MOUs been interpreted as industrial growth?
    • The reported industrial growth in recent years is based on actual and officially estimated figures, not on MOUs. Assessment of future prospects has been informed by CMIE’s projections using detailed information on the status of each investment project under implementation, and its likely date of completion based on historical experience and informed judgment in exceptional cases.
  • By how much has Orissa’s economy grown in recent years?
    • According to the latest data released by the Directorate of Economics and Statistics, Government of Orissa, the state GDP grew at 10.5 percent annually on average during the most recent five years, that is 2003/04 to 2007/08. 
    • During the Tenth Five-Year Plan period, that is 2002/03 to 2006/07, the average growth rate was 8.5 percent. 
    • Orissa, which grew much slower than the rest of India during the 1990s, has now caught up.  2004 onwards, it has begun to overtake the national average.
more from the world bank report
More from the world bank report
  • How many people have been brought out of poverty in recent years?
    • Between 1999/00 and 2004/05, based on NSS data estimates using ‘mixed reference period’, the proportion of people in poverty in rural Orissa declined by 8 percentage points compared to 5 percentage points in rural India as a whole. Despite this progress, however, the level of poverty in Orissa remains significantly higher than the rest of India.
    • According to the latest calculation based on official figures released recently by the Planning Commission, the number of poor in Orissa has come down by about 1.5 million between 1999/00 and 2004/05.  This figure will feature in the final Bank report.
  • What is the state’s current debt burden?
    • How the debt burden has moved can be appreciated by comparing not rupee figures but the ratio of the debt burden to annual GDP or annual revenue. As a proportion of revenue, Orissa’s debt has fallen from 343 percent in 2001/02 to 201 percent in 2007/08. As a proportion of GSDP, it has declined from 63 percent to 50 percent.  This is a major correction, and reflects responsible fiscal management to lift the state out of a crisis situation.
more from the world bank report1
More from the world bank report
  • Has the government achieved a revenue surplus by curtailing capital expenditure and squeezing development expenditure?
    • The revenue surplus has been achieved as a result of 3 factors: 
    • improved performance of the state’s own taxes,
    • enhanced central transfers and external donor support, and
    • curtailing of expenditure. 
    • The capital budget was constrained during 2002-05, but still outcomes improved due to emphasis on project completion. As explained in the report, there was undoubtedly a lot of flab in the administrative machinery, and Orissa was more over-staffed than other states. The government undertook major surgery to trim the fat, and in the process some muscle also got cut, which needs to be rebuilt now.   The Government of Orissa has been hiring a large number of para-teachers, and the teacher-pupil ratio is 40 on average, ranging from 31 in the best served district to 60 in the worst.  This is far better than the situation in Bihar, Jharkhand, Karnataka Madhya Pradesh, Uttar Pradesh and West Bengal.
ancillary business potential
Ancillary Business Potential

Utilities

DownStream

Facilities

Core

Specialized

Services

General

Services

Mother Steel / Aluminium

Plant

Unexplored !!!

Support

Specialized

Services

Township

Management

Operations &

Maintenance

Spares &

Manufacturing

Supply

Chain &

Logistics

There is an opportunity to convert substantial parts of Steel / Aluminium/Petrochemical sector expenditure into Ancillary spend

slide61

SITE 1 – SEZ (2700 acres)

SITE 2 – for chemical projects (3,000 acres)

Paradeep-Duburi (116 Kms) is envisaged as an industrial corridor to house downstream / ancillary / construction phase projects of steel and petrochemicals

single window framework
Single Window Framework
  • Orissa Industries Facilitation Act 2004 enacted for the purpose
  • Provides for combined application form and time-bound clearances for investment projects
  • Enables maintenance of combined registers, records, returns
  • Provides for streamlined inspections
  • Dedicated institutional Mechanisms for clearances and investor escort services
industrial policy 2007
Industrial Policy 2007
  • Umbrella policy for industrial & infrastructural development
  • Generally for a period of 5 years
  • Sectoral policies emanate from IPR (Tourism, IT, BT, SEZ, PPP, etc)
  • IPR 2007 is uniquely configured and is leveraged upon

- Quality institutional support

- Infrastructure development

- Liberal incentives package

- Human resources augmentation

- Timely & responsive grievance redressal

share of registered unregistered manufacturing
Share of Registered & Unregistered Manufacturing
  • Share of registered & unregistered manufacturing in GSDP 2004-05 (%)
  • Source: CSO, 2006
inflation
Inflation
  • Inflation measured by CPI for urban non-manual employees (%)
  • Source: Labour Bureau
  • Note: Financial year averages
choudwar auto complex
Choudwar Auto Complex
  • Choudwar is located on NH42 that connects to NH5 (Kolkata – Chennai) with western part of Orissa. It is at a distance of 3 kilometres from River Mahanadi, 10 kilometres from Cuttack city, 6 kilometres from the nearest railway station Nirgundi, 38 kilometres from the airport in Bhubaneswar, 90 kilometres from the existing Paradeep port
  • The industrial estate is spread over an area of 412 acres and is well-planned with earmarked plots for allocation to SMEs. The internal infrastructure including roads, power supply and water supply have been developed
  • Most of the workforce of existing industries resides in Cuttack city which offers excellent residential facilities, healthcare, educational services and an economic cost of living
slide67

PRESENTATION

ON

STEEL SCENARIO OF THE STATE

OF

ORISSA

juggernaut
Juggernaut
  • A force regarded as unstoppable, that will crush all in its path
  • Derived from the Sanskrit Jagannātha
  • One of the most famous of Indian temples is the Jagannath Temple in Puri, Orissa, which has the Ratha Yatra (chariot procession)
  • British contrived the word "Juggernaut" to refer to examples of unstoppable, crushing forces.
  • The Ratha Yatra now happens on an annual basis in places such as London, Paris, Toronto and New York.
orissa vital statistics
Orissa Vital Statistics
  • Per capita income 2005-06 – Rs. 13,979
  • Urban population – 14.97%
  • Literacy rate – 63.08%
  • Number of districts – 30
  • Number of towns – 138
  • Number of villages – 51,350