The Odisha government is working on additional incentives for investors in its upcoming industrial policy in the form of capital goods investment subsidy, electricity tariff reimbursement, and land at a highly concessional rate. The state government is expecting investments to the tune of ₹50,000 crore in mining, metals, downstream and ancillary industries over the next four to five years.
According to Hemant Kumar Sharma, Principal Secretary, Odisha Industries department, there is a proposal to declare both downstream and ancillary metal as a “priority sector”. The State has been witnessing a lot of traction in the mining, metal, downstream and ancillary sectors over the last two years.
“Odisha would be able to attract huge investment in mining as well as ancillary services and sectors in the next four to five years. In ancillary and downstream together, we are expecting (investments) no less than ₹50,000 crore over the next five years,” Sharma told BusinessLine.
The state government is looking to provide additional incentives in the form of capital goods investment subsidy, electricity tariff reimbursement, exemption from electricity duty, land at a highly concessional rate, exemption from stamp duty, and incentives for transportation in the industrial policy, which is likely to be finalised next month.
“We have to provide more incentives, better infrastructure support for the investors. In our upcoming industrial policy we have proposed that both downstream and ancillary metal be declared as a priority sector. We have kept financial incentives as well, for more companies to come to Odisha,” he said.
Mining, metals downstream traction
With the opening up of the mining sector, the state government has been able to successfully auction several large mineral blocks, which has seen the entry of private sector companies such as JSW, Adani and Nippon Steel, among others. Private participation is bringing about a big shift in the mining industry, turning it more organised and mechanised.
“There is a need for more services, mechanical improvement etc. There are new ancillary areas to mining which we discovered later,” he said.
With a significant chunk of the minerals being transported outside Odisha, there is a huge requirement for logistics, which was hitherto a limited and unorganised sector
On the downstream front, the volume of metal is increasing.
“There is a huge boom due to national and international developments; ease of getting minerals in Odisha through auction is a key factor, and, of course, there is a demand upcycle also. Now all this is leading to ancillary activities,” he pointed out.
At the upcoming Make in Odisha conclave 2022, between November 30 and December 4, the state government expects good participation from some of its focus sectors such as mining and metallurgy, apparel and garment textile, agro and food processing, chemicals and petrochemicals, IT and ITES.