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Industries in Odisha

The Odisha Industry is going places with excellent industrial infrastructure and presence of top national and international companies. The state has witnessed an industrial upsurge due to the favorable industrial atmosphere in the state. Odisha is one of the important states of India which is endowed with varieties of mineral resources and a large coastline. The mineral resources of Odisha have reputation for being qualitative for industries. The mineral resources of Odisha include Iron ore, Manganese, Coal, Bauxite, Dolomite, Tin, etc. It contains a fifth of India's coal, a quarter of its iron ore, a third of its bauxite reserves and most of the chromite. Mineral resources have played an important role to make Odisha hot destinations for industries and also Odisha has already emerged as a major investment destination for national as well as international investors, especially in steel, aluminum, petrochemicals, power, IT and ITES, food processing industries, tourism and other such sectors.

Infrastructure Development:
Because of mineral resources big industries have established their positions not only in India but also in world market. Besides those, reforms in infrastructure in recent years have created an atmosphere conducive for major industries of the world to look forward to Odisha as an epi-centre for industrial growth. Government is in the process of formulating a robust public-private-partnership (PPP) policy to promote private investments in infrastructure development. The state has already taken the initiative of promoting Special Economic Zones (SEZs) for attracting exports oriented industries and Foreign Direct Investment (FDI). In Eastern India, Odisha is really growing in real sense to become an industrial hub in the coming years.

Industrial Policy: 
Government of Odisha aims at creating and industry-enabling and investor friendly climate in the state with a view to accelerate industrial developments, employment opportunities and economic growth. The government of Odisha has been urging several financial institutions to encourage the establishment of new industrial units in backward states. It has been asking the central government to initiate such policies in regard to licensing fiscal, financial matters to encourage to establish the new industrial units in the state. The government of Odisha has formulated a liberal industrial policy. The policy focuses on various avenues where Odisha has the expertise e.g. Minerals, Power, Tourism, IT and village industries etc. 

Steel Plants:
With over 25% of India’s iron ore reserves, Odisha accounts for over 10% of India’s steel production capacity and has a crucial advantage in the iron & steel industry. Further, the presence of seaports in the state makes exports and imports cost effective and more competitive. The government has been taking steps to promote the iron & steel industry in the state. Prominent players present in Odisha’s steel industry are SAIL and Neelachal Ispat Nigam limited. Rourkela Steel Plant (RSP), the first integrated steel plant in the Public Sector in India, was set up with German collaboration with an installed capacity of 1 million tonnes. The major steel plants in Odisha are Jinadal Steel plant(Jharsuguda), Nilachal Ispat Nigam Limited(Jajpur), Rourkela Steel Plant (RSP), Neelachal Ispat Nigam limited etc.

Rourkela Steel Plant

The government of Odisha has signed MOU for setting up as many as 52 steel plants in the state as early as 2005. These include Bhushan Group of Companies(Sambalpur), Visa Industries Ltd(Jajpur), Jindal Stainless Ltd(Jajpur), POSCO India Project (P) Ltd(Paradeep), Vedanta Resources Plc(Keonjhar), Arcellor-Mittal(Keonjhar), Tata Steel(Jajpur), Essar Steel(Jajpur), Jindal Steel & Power Ltd(Dhenkanal), Jindal Steel & Power Ltd(Keonjhar), Bhushan Steel & Strips Ltd(Dhenkanal) etc. Many of these are operational now are waiting completion in the near future.

Aluminium Plants:
Odisha is the largest producer of aluminium in India. In 2005-06, it produced over 415,000 tonnes of aluminium, representing around half of India’s total aluminium production, Odisha’s key advantage for aluminium industry is the fact that the state accounts for half of India’s bauxite reserves. Its location makes it close to the Chinese and South East Asian markets and the presence of large ports makes it easier to access large export markets.

NALCO Damanjodi

Prominent players in the aluminum industry in Odisha are NALCO, HINDALCO, Vedanta Alumina, Utkal Alumina, A joint venture between AV Birla Group and Alcan etc. NALCO's Angul plant is one of the most modern in the world and the biggest in Asia. After it started production, India has not only become self-sufficient in aluminum production but has started exporting. Port facilities for export of bauxite, alumina and aluminum are available at Visakhapatnam and Paradeep.

Ferro Manganese Plants:
There are two big Ferro Manganese plants in operation in the State. First Ferro-Manganese plant located at Joda in Keonjhar District is run by the Tata Iron & Steel Co. Ltd. The second plant at Rayagada in Koraput District is managed by Jeypore Sugar Co. Ltd. Both the plants get power from Hirakud Machhakund Hydro-electric projects. A Ferro Silicon plant in Theruveli, about 20 kms from Rayagada in Koraput started in 1967. A Silicon Carbide plant is established at Theruveli to manufacture Silicon carbide. Two main companies engaged in manufacturing Ferro-Alloys are Indian Metal & Ferro Alloys Ltd., manufacturer of Ferro Chrome and Krishna Ferro Products Ltd., situated in the Rourkela Industrial Town. Another Ferro-chrome plant at Jajpur road run by the IMFA group is operating in Jajpur while a pig iron plant at Badbil runs in the Kronjahr district.

Thermal Power Plants:
Power generation is one of important sectors in Odisa. The state is rich in coal and It contains one fifth of the coal reserves in the country. Thermal Power Plants in Odisha handed over its electricity transmission and distribution to private players. Odisha now boasts of a number of thermal power plants. This has ensured good electricity for the state.

NTPC Kaniha

Some of the O Thermal Power Plants are Talcher Super Thermal Power Plant (TSTPS), National Thermal Power Corporation (NTPC), IB Thermal Power Station. These include Sterlite Energy Ltd(Jharsuguda), Tata Power Co. Ltd(Cuttack), CESC(Dhenkanal), Essar Power Ltd(Angul), Bhushan Energy Ltd(Angul), Visa Power Ltd(Angul),Lanco Group Ltd(Angul).

Hydro Power Plants:
Hydro power is the capture of the energy of moving water for some useful purpose. Prior to the widespread availability of commercial electric power, hydro power was used for irrigation, milling of grain, textile manufacture, and the operation of sawmills. Consequent to the reform in power sector in Odisha, Odisha Hydro Power Corporation was incorporated in 21 st April 1995 under the companies Act 1956. Its objective are to acquire, establish, operate, maintain, renovate, modernize hydro electric generating stations in the State: Hydro Power Projects in Odisha Under Operation Hirakud-I (Burla) 259.5 MW Hirakud-II (Chipilma) 72 MW Balimela 360 MW Rengali 250 MW Upper Kolab 320 MW Upper Indravati 600 MW Machkund 114.75 MW Under Construction Potteru Small HE Project 6 MW Under Expansion Balimela Extension Project 150 MW Identified for Future Implementation Chipilma – B 4 x 50 MW Hirakud – B 4 x 52 MW Sindhol Complex 16 x 20 MW.

Fertilizer Plants:
Fertilizer is generally defined as "any material, organic or inorganic, natural or synthetic, which supplies one or more of the chemical elements required for the plant growth". Primary nutrients are normally supplied through chemical fertilisers. They are chemical compounds containing one or more of the primary nutrients and are generally produced by chemical reactions. Whatever may be the chemical compounds, its most important ingredient for plant growth is the nutrient content. There are four big fertilizer plants in Odisha. These are Rourkela 
fertilizer plant is Public Sector Undertaking, Odisha Fertilizer and Chemical Limited is located near Kalunga, Talcher fertilizer plant in Dhenkanal District and the Indian Farmers and Fertilizers Corporation Ltd. is located at Baragarh. It produces mixed fertilizer. A new phosphate fertilizer complex at Paradeep, a joint venture of Island Republic of Nauru and Government of India has been built. 

The Aeronautical Industry:
The MIG Engine factory at Sunabeda near Koraput is a landmark in the industrial development of Odisha. This factory was established by Hindustan aeronautical Limited (HAL) in collaboration with the former USSR.

Cement is the most important constituent of the building materials. Cement grade limestone and clay are the two important raw materials for the cement industry. Odisha has billion tons of proven limestone reserves. Also the substantial production of BF slag and Fly Ash ensure that quality blended cement are also produced in Odisha. The major cement units in Odisha are ACC – IDCOL, Ultra Tech – Grasim, Shiva Cement, Chariot Cement, Sita Cement, OCL India, etc. Besides, a few proposals of Grasim, ASO Cement besides the expansion of Chariot Cement, ACC etc. are the project developments in the region. The State is getting import of cement from other states of the country.

Paper Mills:
The manufacture of paper pulp is dependent on bamboo pulp as raw material. Odisha’s forests abound in bamboo resources. This raw material being of the weight-losing type, paper factories are raw -material based. The major steel plants in Odisha are Orient paper mills(Brajrajnagar), Titagarh paper mill(Chaudwar), Rayagada paper mill.

Textile Industries:
One of the oldest industries of the state, textiles in general and handlooms in particular rank amongst the most exported commodities from the state. The Handloom Industry in Odisha is famous for its excellent artistic and superior craftsmanship. Handloom items of Odisha have the following specialties.

1. Tie and Dye method of color combination
2. Unique design and superior quality
3. Tassar Fabrics of indigenous silk special to Odisha and Chotnagpur plateau

Tassar variety of silk is mostly manufactured in old Mayurbhanj, Sundergarh, Kendujhar, Sambalpur and Koraput district.Tasar Silk worms are reared for this purpose. The Tassar worms thrive mostly on the shorea robusta (sal), Terminalia arjuna and Terminalia tomentosa. All these trees are found in abundance in the forests of Odisha. Sericulture which started in Odisha 1926 in Cuttack, Puri and Ganjam districts gradually spread to sundergarh, phulabani and Koraput districts. Mulberry silk is much less important compared to Tassar and Eri in Odisha. Apart from the tassar silk, modern textile industry that is less labor intensive function in different parts of the state.

Food Processing Industries:
Food processing industries have now grown to a significant level in the state as four mega food parks have already been implemented in the state. There are six large sugar mills in the State. The sugar mills are located at Aska(Ganjam), Baragarh, Nayagarh, Baramb(Cuttack), Deogaon(Bolangir) and Haripur(Dhenkanal). Under the marine sector there are 559 marine fishermen villages with a population of 1,73,197 who depend on the marine resources for their livelihood. There are 64 fish landing centers, which include 4 Fishing Harbours and 16 Jetties. At present Odisha has 23 exporters who process the marine produce in 19 modern processing plants spread throughout the coastal districts of Odisha. Out of these 19 processing plants, 5 are European approved standard and few of them are highly International standard to meet the requirement of the International market. Rice mill are an important agro-based industry in Odisha. There is a large cluster of rice mills present all over the state. The coastal district of Balasore, Cuttack and Sambalpur have many rice mills. However leading the state with the maximum number of rice mills is the district of Koraput. The other food processing industries are beverages, oil pressing, agro product industries etc.

Information Technology is one of the most dominant and growing Industry in the global economy today. Odisha is among the leading Information Technology Enabled Services (IT/ITES) exporting States in the country. More than 100 units registered under the STPI and around 200 units registered under DIC as IT/ITES units are operating from Bhubaneswar, Rourkela, Berhampur, Sambalpur, Balasore and many other parts of the state. Thousands of software professionals are engaged in software exports and twice that number in the domestic sector are involved in application development, software services, system integration and BPO.

Infosys Bhubaneswar

India's topmost IT consulting firms, including Infosys Technologies, Hexaware Technologies, Satyam Computer Services, TCS (Tata Consultancy Services), MindTree Consulting, Wipro, Price water house Coopers have large branches in Odisha. IBM, Cognizant, Robert Bosch and Syntel are setting up development centers in Odisha. Some of the major IT parks in the state capital, Bhubaneswar are Infocity, Fortune Tower, Tower 2000, IDCO Tower, InfoPark etc.

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