Orissa witnesses frenzied investment activity

Prafulla Das

Steel, power, alumina refineries chief gainers
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State of choice
Over Rs 4,00,000 cr in mineral-based industries
Huge investments in IT, tourism, and education
Private cos evince interest in ports, rail links and roads
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Bhubaneswar , July 23

Orissa is currently witnessing a spurt in investment activity.

After Reliance Energy's announcement on Friday on setting up a 12,000 MW power plant at a total investment of Rs 60,000 crore, Bhushan Steel and Strips on Saturday submitted a proposal to increase the capacity of its upcoming steel mill from three million tonnes to nine million tonnes at an additional investment of Rs 15,000 crore.

Orissa has so far attracted private investments of over Rs 4,00,000 crore for setting up mineral-based industries such as steel mills, power plants, and alumina refineries.

Besides, the State is also attracting huge investments in IT, tourism, and education.

Ceremonies of signing of agreements and powerpoint presentations have become a routine activity in the conference hall outside the Chief Minister, Mr Naveen Patnaik's office.

Teams of officials from various companies are seen meeting top officials of different Departments and Ministers to apprise them of their requirement of land, iron ore, bauxite, coal, and water.

In the steel sector, 43 MoUs have been signed for the production of 58 million tonnes of steel annually at a total investment of around Rs 1,40,000 crore.

The 44th agreement is likely to be signed shortly with Arcelor-Mittal for a 12-million-tonne steel mill at an investment of Rs 40,000 crore.

The rush to make steel gained momentum towards the last quarter of 2004 after officials of the Korean steel major, Posco, visited the State and announced plans to set up a 12-million-tonne steel plant at an investment of Rs 51,000 core, the highest ever FDI in the country.

The major players who have signed agreements are Posco, Tata Steel, Jindal Steel and Power, Sterlite Iron and Steel Company, and Essar.

In the energy sector, apart from Reliance Energy, major companies that have come forward to set up power plants include NLC, Tata Power Company, Sterlite Energy, KBK Nilachal, and Monnet Ispat.

Three companies - GMR Energy, Aban Power, and Nav Bharat Ferro Alloys - have finalised their proposals.

Besides, the State Government has announced that it would launch a joint venture company to produce 1,000 MW.

The projected investment in thermal power projects has crossed the Rs 1,50,000-crore mark.

With regard to aluminium, Vedanta Alumina is constructing a one-million-tonne refinery in Kalahandi at an investment of Rs 4,500 crore.

Utkal Alumina has also begun the process of construction of a one-million-tonne refinery in Rayagada district at an investment of Rs 4,000 crore.

The Aditya Birla Group has signed MoU to set up a three-million-tonne alumina complex with an investment of Rs 12,000 crore.

An L&T-Dubai Aluminium Company joint venture has also expressed its desire to put up a refinery at a cost of Rs 13,000 crore.

Development of ports is also attracting investments. The Dhamra Port Company has already initiated construction at Dhamra in Bhadrak district.

Private companies have also invested in construction of rail links and roads.

In the IT sector, Infosys and Satyam are already operating in the State. Wipro, TCS, Hexaware, and MindTree, have inked MoUs to set up facilities.

Education and tourism are other sectors attracting investments.

The Anil Agarwal Foundation has announced the setting up of a multi-disciplinary University at an investment of Rs 15,000 crore.

It will accommodate 100,000 students.

The Tata Group has completed construction of a budget hotel in Bhubaneswar and is planning four more such hotels in the State.