O DISHA Transforming to a Cluster Based Economy

1. ODISHATransforming to a Cluster Based Economy Vishal Dev Chairman-cum-Managing Director Odisha Industrial Infrastructure Development Corporation (Government of Odisha)

2. PRESENTATION OUTLINE • ODISHA OVERVIEW • THE GROWTH STORY OF LAST DECADE • WHAT EXPERTS SAY • FOCUS ON CLUSTERISATION • POLICY FRAMEWORK • ODISHA… RICH HISTORY IN CLUSTERS • INDUSTRIAL CLUSTERS OF ODISHA • UPCOMING INDUSTRIAL CLUSTERS

3. ODISHA OVERVIEW • Odisha Leads in Metal Making • 20% of the Steel Making capacity of India • More than 50% Aluminium Smelting capacity of India • One of the Power Surplus States on the path to become • the Power House of India

4. THE GROWTH STORY OF LAST DECADE • In 2012-13 Odisha tops in attracting investment of ~100 Bn USD i.e. @27% of total investment committed in India (RBI recent reports) • Odisha has been one of the top three States for attracting investment in the last decade in India • The economy of Odisha has grown @ average 9.00 % in the last decade, higher than national growth rate • The capacity addition in various key sectors in the last decade has ranged from 3.5 to 12 times • Odisha achieved the highest poverty reduction in the country during 2004-2010 (20.2 percentage points)

5. What Experts Say… • World Bank Report ranks Bhubaneswaras the 3rd best city in India to do Business • Assocham 2012 study ranks Odisha as 2NDin India to attract private sector investments in the country • 1st State in India to undertake power reforms and Odisha boosts to be one of the Power surplus States • Bhubaneswar ranked among the safest state capitals in the country. • NASSCOM – AT Kearney Report 2010 identifies Bhubaneswar as a leading city among Tier II cities of India for IT / ITES business • Growth of IT exports from Bhubaneswar is higher than the national rate since 2006. • Cushman & Wakefield ranks Bhubaneswar among the 10 emerging cities of India

6. Focus on Sector Specific Clusterization • Investors Perspective- Shift from Incentives to Infrastructure • IDCO concern – Providing well connected Industrial Infrastructure • Focus is gradually shifting from mixed use Industrial estates to Sector Specific Industrial clusters • IDCO is setting up clusters for Steel, IT & Electronic Hardware, Aluminium, Petrochemical, Plastic & Polymer, Food Processing, Sea food etc. • IDCO supports such clusters through • Land acquisition • External Linkage Infrastructure • Subscribing to equity of the SPV so formed by Private Players

7. POLICY FRAMEWORK—For Promotion of Industrial Clusters • A separate Department of MSME has been formed for focused development of MSME clusters. • Mandatory provision to develop Clusters by Large & Mega Industries on at least 10% of the land allotted through MoU. • Encourage Promotion of Cluster SPVs by Associations / Groups of units • The SPVs shall be given the status of new small scale industrial units which shall be entitled for various fiscal and non-fiscal incentives under MSME Policy & Industrial Policy (IPR 2007) of the State. • Promotion of CFC & Raw Material Banks: Common Facility Centres (CFCs) set up by clusters shall be entitled for allotment of land on free of cost basis at locations earmarked for the purpose by IDCO (MSME Policy 2009). • Industry Associations shall be encouraged to set up Common Facility Centres and Testing Laboratories on PPP mode. • Equity participation by Government of Odisha in Industrial Cluster SPV: Government of Odisha through IDCO has participated in promoting SPVthrough equity participation. It has promoted Clusters at Kalinganagar (Steel) , Balasore (Plastic & polymer) and Angul ( Aluminium).

8. Odisha …..Rich History of Cluster--- Handloom Clusters • Odisha has strong history of community based clusters in handloom & handicraft segment • Weaver community based clusters have been at Odisha since pre independence • Odisha has 43652 numbers of Handlooms having an annual turnover of around USD 40.00 Mn of handloom. • Weavers Population :- 1,92,339 • Total Nos. of Household:- 40,683 • No. of Handloom Clusters:- 35 • No. of Mega Handloom Clusters:- 3 ( more than 3 000 weavers) • Total 72 clusters have been identified in the State for development for Handloom out of which 38 are important clusters.

9. Handicraft Clusters in OdishA • Nos. of Crafts:- 50 • Applique works, Silver Filigree, Terracota, Brass & bell metal etc • Artisans population :- 1.30 lakhs • Nos. of Working Artisans’ Coop. Society:- 193 • Nos. of Crafts Clusters:- 257 • Nos. of Artisans under SHG fold:- 27,369 • Apex Coop. Society for Artisans – Utkalika

10. Industrial Clusters • Operational Industrial Clusters • Steel Cluster at Kalinga Nagar • Plastic, Polymer & Allied Cluster at Balasore • Industrial Clusters under Implementation • Plastic & Polymer Cluster at Paradeep • Aluminium Cluster at Angul & Jharsuguda • Electronic & Hardware Manufacturing Cluster at Bhubaneswar

11. Steel Cluster At Kalinga Nagar • Steel Hub of Country producing nearly 3.5 Mn Tons of Steel which shall be upgraded to 22-24 Mn tons in the near future • Total Area : more than 13000 acres • The cluster is managed by an SPV Jajpur Cluster Development ( a section 25 company) promoted by IDCO(49%) and K Nagar Ind. Assn.(51%) • The SPV has implemented the following common infrastructure / facilities with an investment of Rs80.60 Cr • Road & Common corridor • Water supply • Street lighting & power distribution infra • Central Tool room • Total investment commitment made / incurred is approximately USD 7 BN in the KNIC and has generated more than 40000 employment

12. Plastic , Polymer & Allied Cluster at Balasore • 1stPlastic, polymer cluster developed by IDCO in association with NOCCi spread over 680 acre of land • More than 100 units operating out of the cluster • The cluster has units manufacturing • plastic pipes, • polypropylene based house hold products, • polymer based woven sacks, • rubber-based prophylactics etc. • CIPET has set up an Advanced Plastics Processing Technology Centre (APPTC) at Balasore

13. Plastic , Polymer & Allied Cluster at Balasore Common facilities • Incubation Centre • Warehouse • Trade center, • Exhibition Hall • Executive Transit Accommodation, • Modern Training Center, • Machine Tool Room, Testing Laboratory, • Craft village with 34 kiosks • Food court & recreation area with tennis court, 4 hole Golf course, Swimming pool Infrastructure Projects • Power : 11 KV Electric distribution completed • Water Supply :60,000 KLD water supply system, • Transport : Railway Siding, Integrated Logistic Hub (ILH), 10 Km Road, • Total Investment of USD 15 MN

14. UPCOMING INDUSTRIAL CLUSTERS

15. Paradeep Plastic Cluster Paradeep Plastic Park is the 2nd Plastic Manufacturing Cluster of Odisha being developed under the Plastic Park Scheme of Dept of Chemicals & Petrochemicals, Govt of India. Location : Nr IOCL refinery, Paradeep, Odisha SPV: M/s Paradeep Plastic Park Ltd. (promoted by IDCO) Land : 120 Acres handed over to SPV by IDCO Project Investment: USD 20 Mn (infra) Employment : 5000 (direct employment) Feedstock Sourcing: Polypropylene from IOCL Refinery Complex. Cracker unit proposed by IOCL to feed HDPE / LDPE to the park

16. Paradeep Plastic Cluster • Type of Units: • Envisaged components • Developed Industrial Plots (58%) with well connected roads, power & water pipelines • Open space (10%) • Warehouses/Storage Facilities • Utilities : Substation(132/33/11 KV) • Common Water Storage facility • Truck Park & packaging house • Common Facility Centers • Material recycling and handling facilities • Skill development centers & Incubation center • Tool Room & Testing laboratory • Business center • Status: • Approval obtained from GoI • Land under possession • Investment invited from plastic manufacturers

17. Electronic Hardware Manufacturing Cluster • Planned on a 613 Acre parcel in the ITIR, Bhubaneswar. • 262 Acres Notified as IT SEZ • 35 Acres Business Park • 160 Acres proposed for EMC • 113 acres open green area • Master Planning being undertaken by Jurong Consultants Pte Ltd, Singapore • Infosys Ltd – Anchor Tenant to operationalise by April 2014 • Collaboration with Hsinchu Science Park, Taiwan for Investment promotion in the park • Being promoted under the EMC Scheme of Govt of India • DPR for EMC being prepared by IESA

18. Location: Nr the smelter of NALCO at Angul A downstream & ancillary cluster jointly promoted by IDCO with NALCO First of its kind in India with facilities for directly having Aluminium in Hot Metal form Being set up on a 450 Acre parcel adjacent to NALCO smelter Envisaged components Developed Plots Warehouses/Storage Facilities Common Facility Centers Material recycling and handling facilities Skill development centers and ITIs Landscaped (green) areas, Buffer Zones Truck Terminal and Parking facilities Target Units -Downstream Units in Aluminium in Casting, extrusions, cables, foils etc. Angul Aluminium Cluster

19. Food Processing Clusters • Govt of Odisha has recently announced a food processing Policy which incentivizes promotion of mega food parks and clusters. Three such clusters have been developed in Odisha • Food Cluster at Khurda (162 Acres) : • Developed by IDCO the major tenants are Cocacola, Denzong Brewery, McDowelAlcobev, Mamata Agro Ind. are major occupants • Mega Food Park at Rayagada (119 Ac): • 1st Private sector promoted Food park in Odisha, IDCO holds a 18% support equity in the venture • The Food Park to have Food Processing units involved in • Pulping, frozen foods, dehydration, pectin foods, juices, spices and ready to eat, • Feed mixing units , bottling units, and tetrapack units

20. THANK YOUWe welcome you to Odisha