The New Odisha Industrial Development Plan 2020 marks a significant step in expanding the state’s industrial base. As a hub for India’s mineral resources, Odisha plays a crucial role in the nation’s economy. It accounts for 50% of aluminum smelting capacity and 20% of steelmaking capacity. The state’s Single Window clearance system and availability of mineral resources provide a competitive advantage to its industries.
Learning Outcomes:
Understand Odisha’s key industrial sectors and their contributions.
Identify major industries and production capacities.
Comprehend government policies promoting industrial growth.
Key Industries of Odisha
Odisha’s economy benefits from major industries such as cement, aluminum, sugar, steel, and specialized industrial sectors:
Iron and Steel Industry
Odisha has a strategic edge in the iron and steel industry due to its substantial iron ore reserves and export-friendly seaports.
Holds 33% of India’s iron ore reserves; accounts for 20% of the nation’s steel production capacity.
Largest producer of stainless steel in India; enhanced export-import logistics due to seaports.
Government initiatives to promote the sector include the National Investment and Manufacturing Zone (NIMZ) at Kalinga Nagar.
Hosts seven major private sector steel plants including Rourkela Steel Plant, Nilachal Ispat Nigam Limited, TATA Steel, Vedanta Resources Plc, and Jindal Steel and Power Limited.
Cement Industry
With 2.224 billion tonnes of limestone reserves, Odisha is a prominent player in cement production.
Raw materials include cement-grade limestone and clay, sourced from Raibaga, Rajgangpur, and Panposh.
The Odisha Cement Limited (OCL), established in 1948, was one of the state’s earliest cement factories.
Major cement units include ACC-IDCOL, Ultra-Tech-Grasim, Shiva Cement, among others.
Odisha leads in aluminum production, capitalizing on its vast bauxite reserves.
Holds half of India’s bauxite reserves, favoring aluminum industries.
Geographical proximity to Chinese and South-East Asian markets aids in export efficiency.
Key players include NALCO, HINDALCO, Vedanta Alumina, and Utkal Alumina.
NALCO, established in 1981, has made India self-sufficient in aluminum production.
Important Note:
NALCO operates one of Asia’s largest and most modern aluminum plants, located at Angul. It was the first to make India self-sufficient in aluminum production.
Ferro-Manganese Plants
Odisha has two major ferro-manganese plants catering to the steel industry.
Tata Iron and Steel Company Limited operates the first plant in Joda, Keonjhar district.
Jeypore Sugar Company Limited runs the second plant in Rayagada, Koraput district.
Power supply for these plants comes from the Hirakud Machkund Hydroelectric Projects.
Paper Industry
The paper industry in Odisha relies heavily on bamboo pulp due to the state’s rich bamboo resources.
Orient Paper Mills, established in 1936, was the state’s first paper mill.
Coal supplies for these mills come from Rampur, and they receive hydropower from Hirakud.
Another significant mill is the Rayagada Paper Mill.
Handloom and Textile Industry
Odisha has a long-standing tradition of handloom weaving, providing significant export commodities.
1,140 primary weavers’ co-operative societies exist in the state.
Famous for Tassar silk production, primarily in Mayurbhanj, Sundargarh, and Keonjhar districts.
Modern textile mills operate in Chaudwar and other locations, sourcing cotton from the Western Peninsula.
Major Industries and Their Location
Industry
Location
Rice Mill
Balasore, Cuttack, Sambalpur, Bargarh
Jute Mill
Dhanamandal (Jajpur)
Tyre Factory
Balasore
Leather
Boudh, Bhanjanagar, Balangir, Cuttack
Stone Carving
Puri
Special Economic Zones (SEZ)
SEZs in Odisha are established to boost investments, exports, and infrastructural development.
Bhubaneswar hosts IT/ITES parks like Infocity and IDCO Knowledge Park.
Ganjam is known for Gopalpur Multi-Product Park and mineral-based SEZs.
Jharsuguda features the Vedanta Alumina Zone.
Plans include setting up 18 more SEZs in districts such as Sambalpur and Khordha.
Major State-Level Institutions
Odisha Industrial Infrastructure Development Corporation (IDCO)
Established in 1962, IDCO acts as a nodal agency for providing infrastructure.
Involved in projects like Angul Aluminium Park, Seafood Park, and IT Hub at Info Valley.
Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL)
Provides Single Window Facilitation Services under the Odisha Industries Facilitation Act 2004.
Engages in promotional activities to attract investments.
Odisha Small Industries Corporation (OSIC)
Established in 1972, aimed at assisting MSME units.
Engages in activities such as consortium marketing and raw material assistance.
Important Note:
MSME has identified 11 districts in Odisha as industrially backward, targeting them for investments to encourage balanced development.
State Industrial Policy, 2015
Odisha’s Industrial Policy Resolution, 2015 aims to transform the state into a vibrant, industrialized hub.
Promotes sustainable economic growth and systematic investment attraction.
Focuses on sectors like IT/ITES, biotechnology, agro-processing, and textiles.
Encourages the development of ancillary and downstream industries.
Implements environment-friendly practices to foster a conducive business climate.
Industrial Schemes in Odisha
Go-SWIFT
A state-run scheme providing easy access to business investments in Odisha.
Offers a single window for investor facilitation, simplifying government processes.
Go-PLUS
Provides detailed information on industrial lands, including connectivity, availability, and other utilities.
Concept Note:
Go-SWIFT and Go-PLUS exemplify Odisha’s focus on investor-friendly policies to enhance ease of doing business.
Information Technology Sector
A key player in the IT/ITES export sector with over 100 units registered under STPI.
Major firms like Infosys Technologies and Hexaware Technology operate in the state.
IT Parks in Bhubaneswar include Infocity and Fortune Tower.
Cottage Industries
Cottage Industry Highlights
Odisha’s rural economy is significantly driven by cottage industries.
Handloom weaving produces diverse fabrics, with centers in Boudh, Gopalpur, and Jagatsinghpur.
Other prominent sectors include cane and bamboo craft and stone carving.
Cottage Industry
Important Areas
Badi Making
Keonjhar
Firecracker Production
Cuttack (Padampur)
Cane and Bamboo Craft
Jagatsinghpur, Bargarh, Balangir
Industrial Regions of Odisha
Odisha’s industrial regions feature a variety of sectors, each with specialized industries.
Industrial Region
Major Industries
Chandikhol Area
Stone Crusher, Coke Oven
Paradip Area
Fertilizer, Seafood Processing, Petroleum
Khordha-Tapang Area
Stone Crusher
Ib Valley Area
Thermal Power, Coal Mines
Important Note:
The Talcher-Angul Area is known for its thermal power plants, aluminum production, and coal mining activities, representing the state’s diversified industrial portfolio.
1 MCQ:
Which industry in Odisha benefits the most from the state’s mineral reserves? a) Textile Industry b) Aluminum Industry c) Handloom Industry d) IT Sector Correct Answer: b) Aluminum Industry.