Industrial Developement of Odisha

Industrial Developement of Odisha:-

Orissa is endowed with vast Resources of a variety of Minerals and occupies a prominent place in the country as a mineral rich State. Abundant reserves of high-grade Iron Ore, Bauxite, Chromite, Manganese ore along with other minerals such as Coal, Limestone, Dolomite, Tin, Nickel, Vanadium, Lead, Graphite, Gold, Gemstone, Diamond, Dimension & Decorative Stone etc. are extensively available in the State. This has opened up immense possibilities for locating Mineral Based Industries for manufacture of Steel, Ferro-alloys, Cement, Alumina/ Aluminum, Refractories, Thermal Power etc., along with setting up other auxiliary and ancillary downstream industries.

Saliet Highlights of Industrial Developement of Odisha:-

Odisha is one of the most mineral-rich states in India. Key minerals found in the state are iron, coal, bauxite, manganese, nickel, chromite, limestone, dolomite, graphite, decorative stones, beach sand, China clay, tin ore, etc. For the record, Odisha has about 28 percent of India’s iron ore, 24 percent of coal, 59 percent of bauxite and 98 percent of chromite.
Odisha accounts for over 55 per cent of India’s bauxite reserves, making it an ideal location for setting up aluminium and aluminium-based companies. The state ranks first in the country in terms of both production capacity and actual output of aluminium.
Odisha is one of the favoured Investment destinations for domestic and international iron and steel players as well as one of the largest producers of iron and steel in India. The total production of iron ore in Odisha was recorded to be 80.87 million tonnes during 2015-16.
Between 2004-05 and 2015-16, Gross State Domestic Product (GSDP) expanded at a compound annual Growth rate (CAGR) of 10.25 per cent to US$ 50.8 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 10.37 per cent to US$ 44.92 billion.
In the Energy sector, independent power producers (IPPs) have invested Rs.32,991 crore on proposed coal-fired projects after entering into MoUs with the State Government. Among the 28 power companies, only three – Sesa Sterlite, Jindal India Thermal Power and GMR Kamalanga Energy Ltd – have commenced commercial production in the last 15 years. The IPPs have a combined capacity of 37,000 MW.
In the steel sector, out of Rs 222,862.63 crore investment proposed in 50 projects, Rs. 109,638.90 crore has been invested till today, said Mishra. Then, Rs.66,444 crore has been proposed in the aluminium sector by three companies – Vedanta, Aditya Aluminium and RSB Metaltech.
Odisha is amongst the top ten states accounting for the highest number of MSME enterprises. Odisha government also launched its start up policy 2016 that aims to create 1,000 startups in the state by 2020. The policy will aim at providing incentives, support and assistance to start ups at all stages of development including idea or prototype stage, commercialisation stage as well as the Marketing stage.
The state has sector-specific policies for IT and Micro, Small and Medium enterprises. The state government has constituted “Team Odisha” to help with investment promotion.
The state government has constituted “Team Odisha” to help with investment promotion.
The Orissa Industry is going places with excellent industrial Infrastructure-2/”>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. The state government of Orissa has invited major industrial houses of the country and abroad to invest in the state. It has achieved a considerable amount of success and several prime companies have set up their Plants in the state.

The industrial structure of Orissa mainly consists of four categories:

Medium industries
Cottage industries
Large scale heavy industries
Large scale industries

The large scale medium and large scale heavy industries include the:

Cement industry
Ceramic Glass plants
Refractory units
Ferro Manganese plants
Aluminum industry
Fertilizer plants
Agro Based Industries
Chemical industries
Tyre factories
Aeronautical industry

Mineral Based Industries:-

Occupying an important position on the country’s map, Orissa’s rich mineral reserves constitute 28% Iron ore, 24% coal, 59% Bauxite and 98% Chromite of India’s total deposits. The state’s comparative advantage on this account has attracted the attention of many mining and metallurgical companies. In Orissa, industrialization started shortly after independence. The oldest mines in the state were coalmines at Talcher and Ib valley. After nationalization of coal in 1975 and the national policy on energy sector, many power plants have come up in the state. Major industries in Orissa at the moment include an integrated steel plants at Rourkela, Kalinga Nagar, Jharsuguda and Angul ; NALCO (National Aluminium Company Ltd.) with its Alumina Plant at Damanjodi & Aluminium smelting complex at Angul; Thermal power plants Talcher & Ib valley area etc. in addition to Fertilizer plants, Pulp and paper industries, Ferro alloys plants, cement plants etc. elsewhere in the state. The industrial growth in the state has mostly taken place in the areas where raw materials, water and power are available. The state can be divided into twelve industrially active zones / areas based on minerals namely:

Rajgangpur Area (Iron & Steel, Sponge Iron, Cement, Secondary steel. Melting and rolling mill & refractories and chemicals).
Ib valley area (Thermal power, Sponge iron, refractories, and coal mines)
Hirakud area (Aluminum & rolling mills)
Talcher-Angul area (Thermal power, Aluminum, Coal washeries, Ferro alloys, Coal mines).
Choudwar area (Ferro alloys, Thermal power, pulp and paper, coke oven)
Balasore area (pulp and paper, ferro alloys, rubber industries)
Chandikhol (stone crusher, coke oven)
Duburi (Integrated steel, ferro alloys, rubber industries)
Paradeep area (fertilizer, sea Food Processing, petroleum coke)
Khurda Tapang area (stone crusher)
Joda Barbil area (iron, sponge iron, ferro alloys, iron ore crusher, mineral processing).
Rayagada area (pulp and paper, ferro alloys).

Keonjhar is one of the premier mineral producing districts in Orissa. The district occupies a prominent place in the mineral map of the Country. Iron ore formations occupy most part of the district which can be traced from the Bihar boarder in the north to the Jajpur boarder in the South. Extensive deposits of Manganese ore are found in Thakurani and Joda East hills of Barbil. The two important mineral based industries in the district are the “Kalinga Iron Works” Barbil and the “Ferro-Manganese Plant”,Joda. Good deposits of Chromite, an important and strategic mineral are found in Boula area near village Nuasahi of Anandapur sub-division. There are also some other mineral deposits in the district such as Quartzite, Bauxite , Gold , Pyrophillite and Lime stone.

THE KALINGA IRON WORKS, BARBIL:-

The Kalinga Iron Works was initially named as the Kalinga Industries in the private sector with technical collaboration of M/S. Fried Crupp of West Germany having one low shaft furnace with a capacity to produce 30000 M.T. of pig iron per annum. It was taken over by the Industrial Development Corporation of the Government of Orissa on 01st April 1963. It has since been named as “Kalinga Iron Works”. Presently the Kalinga Iron Works produces 100000 M.T. of foundry grade pig iron by three low shaft furnaces. Besides, it has a power generating plant of its own which supplies power to the GRIDCO, Orissa to the extent of 2.3 M.W. This industry was running with a capital investment of Rs.1,011.27 lakh in 1985. At present 1,320 persons (both skilled and unskilled) are working in the unit. Under the diversification programme Kalinga Iron Works is also giving to undertake the production of Ductite Iron Spun pipes in close collaboration with TOR-STEEL and MECON. Ductite Iron Spun pipes have a tremendous marketing potential in foreign countries.

FERRO MANGANESE PLANT, JODA:-

The Ferro-Manganese plant at Joda was taken over by the Tata Iron And Steel Co-Ltd. in December 1957. It was established with a capital investment of Rs.3000 lakhs in 1985. At present 391 employees are working in the unit. The plant is primarily meant for supplying Ferro-Manganese for TISCO’s own plant at Jamshedpur.

Besides the reserves of Major Minerals like chromite, nickel, bauxite, iron-ore and coal; other minerals like china clay, fire clay, limestone, quartz, precious and semi precious stones, copper, manganese, graphite, vanadium etc. are also available in the state. Iron ore is abundantly available in the districts of Mayurbhanj, Sundargarh, Keonjhar and Jajpur. While chromite is confined to Jajpur, Dhenkanal and Keonjhar districts, manganese deposits are available in Sundargarh, Keonjhar, Rayagada and Balangir districts and Dolomite is available plentily only in the district of Sundargarh. There are two major coal bearing area in the state which are currently being exploited namely Talcher and the Ib valley.

Iron ore:-

Odisha has about 28 percent of India’s iron ore. Iron ore deposits could well be Orissa’s passport to a bright future. With the upswing in the global demand for steel, which is obtained after the reddish-grey ore is put through a blast furnace, Orissa is the toast of the country and perhaps the world. There is an unprecedented flow of capital into the State from global giants such as South Korea’s Pohang Steel Company (POSCO) to domestic players such as Bhushan Steel, Jindal Steel & Power etc. Steel-makers are making a beeline to Bhubaneswar to sign memoranda of understanding (MoU) to set up intergrated steel plants. The huge deposits of iron ore State is expected to cater to needs of these companies. Besides iron ore (32.9 per cent of the country’s reserves), Orissa has abundant reserves of bauxite (59.95 per cent), chromite (98.4 per cent), coal (24.8 per cent) and manganese (67.6 per cent). End-use industries based on these industires have a wider scope of growth in the state.

Orissa Steel:-

Orissa Steel is an emerging sector that will supplement the industrial sphere of Orissa. The developing industries producing steel will dominate the economy of the state. The presence of raw materials in abundance in the region has resulted in attracting the big investors to the region. The large scale steel enterprises have opted to invest in the state of Orissa. The reasons behind the sudden interest of the steel plants like TATA Steel and Ruia’s Essar Steel are the large iron ore deposits in the districts of Keojhar. The state mines 58 percent of iron ore which is an important raw material for making steel. The state also has a ready market for the steel products. Labor and electricity in the state are cheap which account for a low cost of production. The infrastructure of the state is also well developed that facilitates the Industrial Sector. These factors have lured the reputed steel companies of the country to the state. With the global demand for steel growing, the Union Cabinet recently unveiled a new steel policy that seeks to shore up the per annum steel production from 38 million tonnes to 100 million tonnes by 2019-20. But going by the current rush for iron ore in Orissa, the country may achieve the target well before the deadline. The State Government assigned 49 MoUs with various domestic and foreign companies for production of more than 75 million tonnes of steel in the state thereby bringning investment to the tune of 198,149 crore rupees. Similier MoUs have been signed by the state Government for alumina-aluminium and cement projects in the state.

Directorate of Steel :-

A new Steel Directorate was set up on 15th of July 2016 as a composite Directorate under the administrative control of Steel and Mines Department. The Directorate will focus on Iron Ore based Industries located in Odisha with following key activities.

To coordinate with the steel industries in the state to assist in addressing the issues relating to such investments, in coordination with the IPICOL
To monitor the implementation of MoUs signed steel industries for expediting the investments.
To regularly interact with the existing steel units with a view to identifying the problems and issues relating to optimal capacity utilization.
To maintain a Database on investments, production, EMPLOYMENT etc. of Iron ore base industries in Odisha.
To monitor the availability of assured supply of raw material to the steel industries .
To assist the Department in policy matters relating to steel industry.

Major initiatives taken by the government to promote Odisha as an investment destination:

The Odisha government unveiled a strategic action plan for the implementation of the ‘Vision 2025’ which lays a road map for industrial growth in the state over the next decade during the recently concluded Odisha Investors meet in Bengaluru. The state has identified five focus sectors that include agro and food processing, chemicals and petrochemicals, textiles and apparel, downstream and ancillary industries in Metal sector and electronic system design and manufacturing and IT/ITeS. The plan covers policy, infrastructure, investment promotion and skilling interventions that the state government plans to undertake for industrial development in these focus sectors.
The state government also launched an advance version of its industrial portal for land use and Services i.e GOiPLUS. The GOiPLUS Version 2.0 provides information about the entire land bank available in the state for industrial use and works as a one-stop portal to provide information about all land related queries of an investor. Using the portal, an investor can get information about availability of land parcel in the vicinity of preferred infrastructure utilities such as airport, port etc.
Odisha government also launched its start up policy 2016 that aims to create 1,000 startups in the state by 2020.The policy will aim at providing incentives, support and assistance to start ups at all stages of development including idea or prototype stage, commercialisation stage as well as the marketing stage. The Odisha government has also set up a startup capital infrastructure fund upto Rs 25 crore that will be used to support development of startup ecosystem in the state.
In order to increase the employment opportunities in the state, Odisha government has announced plans to invest US$ 28.69 billion in the manufacturing sector generating nearly three lakh job opportunities by 2020.
In June 2015, in an effort to increase the traffic of foreign airlines in the state, the state government exempted the Value Added Tax (VAT) imposed on aviation turbine fuel.
In July 2015, the state government announced plans to frame a rural Business Process Outsourcing (BPO) scheme under which subsidies are planned to be offered for establishing BPO units. In places where STPI (Software Technology Parks of India) stations are situated, employment opportunities are expected to be generated in the state. STPIs in the state are located in Bhubaneswar, Balasore, Rourkela and Berhampur.
As per budget 2016-17, US$ 39.71 million has been proposed by the state government for developing new railway projects such as the ongoing Khurda-Bolangir line, new Jaypore-Malkangiri, Jaypore-Nabarangpur railway lines, etc. in the state through direct state funding.
As per state budget 2016-17, the state government allocated US$ 1.52 million for development and enhancement of eco-tourism in Odisha.
A biopharma IT park at Bhubaneswar is being established under the public private PARTNERSHIP (PPP) model over a land area of 64.68 acres.
A mega food park is being established near Bhubaneswar over 282 acres through the PPP mode. Odisha Industrial Infrastructure Development Corporation (IDCO) is the nodal agency for the establishment of this park.
In order to strengthen the artisan-based enterprises in the handicrafts sector, 19 handicraft training centres are functioning in different districts.

Odisha is a state in eastern India with a long history of industrial development. The first industries in Odisha were established in the early 19th century, and the state has since become a major industrial hub. The major industries in Odisha include steel, aluminum, mining, and power generation. The state government has taken several initiatives to promote industrial development, including providing tax breaks and subsidies to businesses. However, there are a number of challenges to industrial development in Odisha, including infrastructure bottlenecks, poor quality of Education, and a lack of skilled labor. Despite these challenges, the future of industrial development in Odisha is bright. The state has a number of advantages, including a large and growing Population, a young workforce, and a rich natural resource base. With the right policies and investments, Odisha can become one of the leading industrial hubs in India.

History of industrial development in Odisha

The first industries in Odisha were established in the early 19th century. The first major industry was the jute industry, which was established in 1818. The jute industry was based on the cultivation of jute, which is a fiber that is used to make a variety of products, including bags, sacks, and carpets. The jute industry was a major source of employment and income for the people of Odisha.

In the late 19th century, the steel industry was established in Odisha. The steel industry was based on the iron ore deposits that are found in the state. The steel industry was a major source of employment and income for the people of Odisha.

In the early 20th century, the aluminum industry was established in Odisha. The aluminum industry was based on the bauxite deposits that are found in the state. The aluminum industry was a major source of employment and income for the people of Odisha.

Major industries in Odisha

The major industries in Odisha include steel, aluminum, mining, and power generation.

The steel industry is the largest industry in Odisha. The steel industry is based on the iron ore deposits that are found in the state. The steel industry is a major source of employment and income for the people of Odisha.

The aluminum industry is the second largest industry in Odisha. The aluminum industry is based on the bauxite deposits that are found in the state. The aluminum industry is a major source of employment and income for the people of Odisha.

The mining industry is the third largest industry in Odisha. The mining industry is based on the mineral deposits that are found in the state. The mining industry is a major source of employment and income for the people of Odisha.

The power generation industry is the fourth largest industry in Odisha. The power generation industry is based on the hydroelectric power plants that are located in the state. The power generation industry is a major source of employment and income for the people of Odisha.

Government initiatives for industrial development in Odisha

The state government has taken several initiatives to promote industrial development, including providing tax breaks and subsidies to businesses. The government has also set up a number of industrial parks and infrastructure projects to attract businesses to the state.

The government has also set up a number of institutions to promote industrial development, including the Odisha Industrial Infrastructure Development Corporation (IDCO) and the Odisha State Investment Promotion Board (SIPB). The IDCO is responsible for developing industrial parks and infrastructure projects in the state. The SIPB is responsible for promoting investment in the state.

Challenges to industrial development in Odisha

There are a number of challenges to industrial development in Odisha, including infrastructure bottlenecks, poor quality of education, and a lack of skilled labor.

The infrastructure in Odisha is not well developed. The state has a poor road Network, a lack of Airports, and a shortage of power. The poor infrastructure makes it difficult for businesses to operate in the state.

The quality of education in Odisha is poor. The state has a high dropout rate and a shortage of qualified teachers. The poor quality of education makes it difficult for businesses to find skilled workers.

The state has a shortage of skilled labor. The state does not have enough technical colleges and universities to produce the skilled workers that businesses need.

Future of industrial development in Odisha

Despite the challenges, the future of industrial development in Odisha is bright. The state has a number of advantages, including a large and growing population, a young workforce, and a rich natural resource base. With the right policies and investments, Odisha can become one of the leading industrial hubs in India.

What is industrial development?

Industrial development is the process of increasing the number and size of factories and other industrial facilities in a country or region. It can be achieved through a variety of means, such as government investment in infrastructure, tax breaks for businesses, and the provision of training and education for workers.

What are the benefits of industrial development?

Industrial development can lead to a number of benefits, including:

Increased employment opportunities: As more factories and other industrial facilities are built, more jobs are created. This can help to reduce Unemployment and POVERTY.
Increased economic growth: Industrial development can lead to increased economic growth as businesses produce more goods and services. This can lead to higher incomes and a better standard of living for everyone.
Increased innovation: Industrial development can lead to increased innovation as businesses compete to develop new products and services. This can lead to new technologies and advancements that benefit everyone.

What are the challenges of industrial development?

Industrial development can also lead to a number of challenges, including:

Environmental pollution: Factories and other industrial facilities can pollute the air, water, and land. This can have a negative impact on human Health and the Environment.
Social problems: Industrial development can lead to social problems such as crime, poverty, and homelessness. This is because people who move to cities to find work in factories often do not have the skills or education to get good jobs.
Economic inequality: Industrial development can lead to economic inequality as the rich get richer and the poor get poorer. This is because the people who own the factories and other industrial facilities often make a lot of Money, while the workers who do the actual work often make very little money.

What are some examples of industrial development?

Some examples of industrial development include:

The Industrial revolution in Europe and North America in the 18th and 19th centuries: This was a period of rapid economic growth and technological advancement that was driven by the development of new technologies such as the steam engine and the Cotton gin.
The rise of China as an industrial power in the 21st century: China has experienced rapid economic growth in recent years, driven by the development of its manufacturing sector.
The growth of the Indian IT industry: India has become a major center for information technology and software development in recent years.

What is the future of industrial development?

The future of industrial development is uncertain. Some experts believe that the world is entering a new era of “post-industrialism” in which services and technology will become more important than manufacturing. Others believe that industrial development will continue to be important, but that it will need to be more sustainable and environmentally friendly.

Sure, here are some MCQs without mentioning the topic Industrial Developement of Odisha:

Which of the following is not a major industry in Odisha?
(A) Steel
(B) Mining
(C) Tourism
(D) agriculture
Which of the following is the largest steel plant in Odisha?
(A) Rourkela Steel Plant
(B) Bhushan Steel
(C) Jindal Steel and Power
(D) Tata Steel
Which of the following is the largest port in Odisha?
(A) Paradip Port
(B) Gopalpur Port
(C) Dhamra Port
(D) Kalinganagar Port
Which of the following is the largest airport in Odisha?
(A) Biju Patnaik International Airport
(B) Bhubaneswar Airport
(C) Jharsuguda Airport
(D) Rourkela Airport
Which of the following is the largest city in Odisha?
(A) Bhubaneswar
(B) Cuttack
(C) Rourkela
(D) Puri
Which of the following is the Official Language of Odisha?
(A) Odia
(B) Hindi
(C) English
(D) Bengali
Which of the following is the currency of Odisha?
(A) Indian Rupee
(B) US Dollar
(C) Euro
(D) Chinese Yuan
Which of the following is the national animal of Odisha?
(A) Tiger
(B) Elephant
(C) Lion
(D) Rhinoceros
Which of the following is the national bird of Odisha?
(A) Peacock
(B) Parrot
(C) Eagle
(D) Swan
Which of the following is the national flower of Odisha?
(A) Lotus
(B) Marigold
(C) Rose
(D) Jasmine

I hope these MCQs were helpful!