STATE
POLICIES

ORISSA

3. INFRASTRUCTURE

    3.1 Infrastructure is the key to industrial growth. The Government will pay special attention to development of key infrastructure. The Government have carefully considered the World Bank's Country Economic memorandum - India 1995 (the enabling framework for private investment in infrastructure) and would take appropriate steps to provide a suitable framework for private sector participation in infrastructure development in the State. An infrastructure development Board (IDB) would be set up under the Chairmanship of the Chief Minister with the Chief Secretary as the Member-Convenor to-:

    1. identify key infrastructural requirements,

    2. prepare specific projects/proposals in a timebound manner.

    3. priorities public investment in these projects/ proposals.

    4. decide on the modalities of external funding including private funding/ investment.

    5. review execution of the projects.

    The State Government would encourage private investment/participation in infrastructure projects. Government would also be prepared to participate in joint ventures for infrastructure development. In selected cases Government may consider providing land at concessional rate or free of cost.

    3.2 POWER GENERATION

      3.2.1 Orissa is the ideal location of Thermal Power Projects. Large coal reserves in Talcher-IB Valley Coalfields of Mahanandi Coalfields Ltd. and abundant water in Hirakud and Rengali reservoirs in close proximity of the coal mines make these locations perhaps the best sites for pit-head power plants in the country. Unlike most States in the country, Orissa is at present surplus in power and with careful planning already undertaken, it will remain so despite speedy growth of industrialization during the coming decades. Already proposals from established Indian Industrial houses and multinationals for generating over 10,000 MW of Thermal Power are being processed and most of these projects would start implementation during 1996. Additional, 1,000 MW of Hydel Power generation would take place during the coming five years. Proposals for barge-mounted power plants are being processed. Many of the large industries existing and new are setting up Captive Power Plants. To attract flow of investment to the power sector the new policy contemplates provision of land and water at industrial rates to power plants and electricity duty exemption for Captive Plants. Power Plants generating power from non-conventional sources are entitled to all incentives applicable to industries and total electricity duty exemption.

      3.2.2 Orissa is the pioneer in restructuring and reforming the power sector. Appreciating the need to structurally re-organise power generation, transmission and distribution with a view to achieving improvement in the management and ensuring a fairdeal to the customers in regard to Tariff and quality of service, the Orissa Electricity Reforms Act, 1995 has been enacted. In the changed scenario the existing power generation, transmission and distribution functions under the OSEB are being split into separate units and corporatised. In the State sector the responsibility of power generation would rest with the Orissa Power Generation Corporation (For Thermal Power) and the Orissa Hydro Power Corporation (For Hydel Power). The transmission and distribution functions would be discharged by the Grid Corporation of Orissa Ltd. (GRIDCO) with a clear mandate to separate the distribution function in due course. Under the said Act, an independent Regulatory Authority i.e. Orissa Electricity Regulatory Commission shall be constituted to take over the regulatory functions including aiding and advising the State Government on policy matters. The commission shall also act as the body which issues and enforces licenses, balances the interest of the State, the consumers, the entities involved in power generation, transmission, distribution and supply of electricity and the investors in the electricity industry.

      The Commission shall also determine the Tariff for various categories of consumers, taking into consideration their view points as may be expressed during the deliberations in the Commission Advisory Committee Meeting.

      Power sector is in urgent need of modernisation and upgradation. This needs huge capital investment. Private effort/participation in generation, transmission and distribution would be welcome and transparency in selecting private parties through open competitive bidding would be ensured. The attempts made by Orissa so far to reform and restructure the power sector have been commended by the World Bank, Asian Development Bank, Overseas Development Administration (U.K.) and international experts and the State has been held out as a model for other States to follow. The policy of negotiating fair and equitable power purchase agreement with the Independent Power Producers and Industries owning Captive Power Plants (Supplying surplus power to the State Grid) will continue. In special cases Government of Orissa may permit sale of power by an independent power producer to an industry on payment of wheeling charges and other terms and conditions in consultation with the GRIDCO, Co-generation of Power would be encouraged.

      3.2.3 Special attention would be paid to promote power generation from non-conventional sources. Such activity will get all incentives and facilities as an industry and complete exemption of Electricity duty would be available to such projects. The State Hydro Corporation and Orissa Renewable Energy Development Agency would promote Mini Hydel projects and other renewable energy projects respectively in Public sector/Joint venture and private sector.

    3.3 RAILWAYS

    Several important new railway links have been sanctioned/are under implementation. The Koraput-Rayagada line has been completed providing access to the Bauxite belt of Southern Orissa. The Daitari - Banspani Railway link is under construction and when completed in 2/3 years, will open up the vast Iron-ore reserves of Gandhamardan-Malangtoli reserves to Paradip/Gopalpur ports and the Steel Plants located at Nayagarh, Daitari and Gopalpur. The Rupsa-Baangiriposi gauge conversion will make Mayurbhanj district more accessible to railway traffic. The Talcher-Sambalpur line linking the rich coal belts of Thalcher and IB-valley will be completed soon and connect coastal Orissa with northern Orissa. The recently sanctioned Khurda-Bolangir railway link will also provide the much needed linkage between coastal and Western Orissa through the rich forest/agricultural hinterland of Nayagarh, Phulbani and Bolangir districts. The Kesigna-Lanjigarh link recently sanctioned will provide vital access to the Bauxite Belt. Efforts will be made to convert the narrow gauge line between Nawapara to Gunupur to broad gauge and then connecting it to Rayagada. Finally the Koraput-Malkangiri link for which a proposal is pending with the Railway Ministry, seeks to access the rich Limestone/Granite deposits of the southern most part of Orissa. An ambitious mines cum infrastructure development project of Orissa Mining Corporation (OMC) with foreign participation contemplates a second dedicated railway link between the rich iron are deposits of Gandhamardan/Malangatoli belt with Paradip Port via Daitari, Doubling of Talcher-Paradip stretch is under implementation. All out efforts will be made for a new direct railway line between Talcher and Gopalpur. Electrification of Kharagpur-Khurda stretch has commenced and would in due course extend to Visakhapatnam. An inland container depot is coming up at Balasore and another at Angul is under contemplation. The State government is determined to pursue all these projects for their early completion to ensure that the railway infrastructure is in place to help industries, especially mining and mineral processing industries come up in the rich hinterland full of natural resources.

    3.4 ROADS

    Improvement of key road links like Sambalpur-Rourkela and Cuttack-Bhubaneswar are under implementation. The State has an ambitious programme of connecting all Panchayats by all weather tarfelted roads. A number of important road links like the Jajpur Road-Joda stretch are contemplated for improvement with external assistance. New Roads under contemplation include a highway from Talcher to Gopalpur linking the coal belt with Gopalpur port. The State Government would make sustained effort to complete/implement these projects expeditiously. Private initiative for these new projects would be welcome. The same will apply to new bridges. The private parties would be entitled to collect Toll towards return of investment. The State Government would also consider allowing commercial use of specified road side lands in order to improve the economic viability of road and bridge projects. Improvement of road infrastructure including building new highways is the State Government's priority.

    3.5 PORTS

    Paradip Port, the country's deepest port, is fast coming up as a premier port of the country. New facilities like modern coal handling and oil terminals are coming up. A modern fishing harbour has just been completed. A number of oil tanks farms are on the anvil. With an oil refinery coming up, a petro chemical complex would follow. Gopalpur minor port is being developed as an all weather modern port in joint venture. A study has been commissioned to identify new locations of major/minor ports on the State's coastline. Basing on this study, new ports will be offered to private parties for development and operation.

    3.6 AIR CONNECTION

    Air link is vital to attract investors, spur industrial/commercial activities and also to promote tourism. Bhubaneswar airport is under expansion/modernisation to facilitate landing/take off of wide-bodied aircraft, specially for chartered flights. The State government will continue to make efforts to have an international airport here. An Air Cargo complex with full custom clearance facility would come up. Efforts are on to increase the frequency of flights to Calcutta, Madras, Bombay and Hyderabad. The State Government will endeavour to have direct links with Bangalore and other cities. Efforts would continue to have a second national airport in the State. Inside the State Air Taxi services connecting Jeypore, Jharsuguda and Rourkela will be organised. Nayagarh, Daitari and Gopalpur Steel Industry complexes will have their own Air strips to be used by air taxi operators. Similar facility at Angul, Balasore/Mayurbhanj would also come up.

    3.7 INDUSTRIAL AREA/ESTATES

      3.7.1 The Orissa Industrial Infrastructure Development Corporation (IDCO) has established a wide network of Industrial areas and estates for various industries in different parts of the State. Among them are Bhubaneswar, Rourkela (Kalunga), Balasore, Angul/Talcher, Khurda, Bolangir, Sambalpur etc. To meet the rapidly increasing demand for new industrial complexes/areas/estates are coming up in different parts of the State.

      3.7.2 Under the Central Government's programmes of growth centres, three new centres are coming up at Chhatrapur, Duburi (Kalinga Nagar) (near the steel plant complexes of MESCO, Ganapati Exports, Neelachal Ispat Nigam etc.) and Jharsuguda. Under the mini growth centre scheme of Government of India, new centres are coming up. An Export Promotion Industrial Park (EPIP) is coming up at Bhubaneswar with assistance from the Ministry of Commerce, government of India. At Bhubaneswar an Electronic Hardware Park and a Software Park (with dedicated earth station) have been established. A diamond park is planned at Bhubaneswar. These new industrial areas/estates will provide readymade facilities for locating new industries.

      3.7.3 The State Government has decided to establish Functional industrial estates. Functional industrial estates are coming up in different parts of the State : Ceramics at Jharsuguda, hosiery and knit-wear of Jagatpur (Cuttack), aluminium near Khura, ship breaking at Gopalpur and Paradip ports, plastic and polymer at Bhubaneswar, auto ancillaries at Berhampur, agro-tech park near Bhubaneswar, etc. More such functional industrial estates would be established for food processing, chemical, catings, leather, gems and jewellery.

      3.7.4 The State government welcomes participation of private sector in industrial areas/estates. Three such parks namely, the aluminium park near khurda, agro-tech park near Bhubaneswar and diamond park at Bhubaneswar are being established by private parties in India with participation at Paradip. More industrial estates/parks in private sector are welcome for which the State Government would provide land, water and power facilities and if necessary, equity participation. Private Export Processing Zones (EPZs) are also welcome.

      3.7.5 Large Steel Plants, Alumina Plants and Oil Refineries are coming up at Duburi, Nayagarh, Gopalpur, Paradip, Haridaspur and Rayagada. The State government are planning industrial estates for ancillary/auxiliary industries at these locations and would welcome participation of private parties in this effort.

    3.8 SOCIAL INFRASTRUCTURE

    Social infrastructure in close proximity of industrial complexes has to be adequately developed. The State Government would welcome participation of private parties in putting up excellent residential/non-residential schools, hospitals etc. Large industries would also be persuaded to establish such facilities individually or to pool their resources to set these up collectively. State Government would consider providing land and other facilities at concessional rates for this purpose.

    3.9 ENVIRONMENTAL PROTECTION

    In seeking the rapid industrialization of the State, the State Government is also keenly aware of the need to protect the environment. All existing and new industrial units will be required to conform to the prescribed environment standards. The State environment protection machinery will be suitably strengthened so that it not only performs a regulatory role but also actively helps and assists industrial units in meeting environment standards.

4. SKILL DEVELOPMENT

Skill development is the key to quality and productivity and employment of local people in sophisticated industries. The State Government have planned a series of initiatives in this direction.

    4.1 Government ITI's and polytechnics are being modernised with World Bank assistance to improve the quality of technical manpower. Efforts would be made to improve the quality of ITI's and polytechnics in private sector by co-ordinating their activities to improve their infrastructure and teaching standards.

    4.2 The State Government would formulate a policy for Technical Education in private sector to facilitate the establishment of new technical institutions of good quality and standard in the private sector. New Engineering colleges and Medical Colleges will be permitted in the private sector in selected locations. The State Government will endeavour to persuade Government of India to locate an IIT and an IIM in Orissa. Management/Computer training institutions of high standard in the private sector would be encouraged.

    4.3 A technical University will be established in the State at the earliest.

    4.4 The regional centre for CIPET at Bhubaneswar, the Danish Tool Room at Bhubaneswar, the Master Craftsman Training Centre at Bhubaneswar and the Foreman Training Institute at Kansbahal are playing useful roles. Efforts will be made to set up more such specialised institutes with the help of industrial/ commercial houses and other private parties. Continuous efforts would be on toe establish close interaction between Industry and Research Institutions.

    4.5 Large Industries coming up in the State would be required to indicate the number and categories of skilled workmen by they would be requiring and the phasing of the requirement. Technical Institutions in the state will be fully geared to produce and make available skilled personnel in the disciplines needed. Wherever necessary, new disciplines will be introduced in these institutions to meet the needs of Industries locally.

    4.6 Special efforts would be made to set up high quality training facilities in computer software. Orissa Computer Application Centre and Orissa State Electronics Development Corporation will play the nodal role in this effort. Established Software Training Houses in the country will also be encouraged to set up training facilities in the State.

    4.7 Steps will be taken to provide training facilities for local boys and girls by suitably strengthening the facilities at the Bhubaneswar Flying Club and also arranging for deputation of trainees to Indira Gandhi Udan Academy in order to enable them to obtain Students and Pilots' License and Commercial Pilots' License.