Odisha considering 50,000-acre land bank to lure investments

BHUBANESHWAR: The Odisha government, which has battled land acquisition challenges against some of the country's most ambitious industrial projects, plans to create a land bank of 50,000 acres -- an area that could notionally contain ten 12mt steel plants.

The idea was mooted by chief secretary Gokul Chandra Pati at a meeting with officials of the state industry department and agencies such as the Industrial Development Corporation of Orissa and Industrial Promotion and Investment Corporation of Orissa on Monday. The department has also been asked to work out a "definite work strategy for land acquisition in the light of the new land acquisition Act," said an official release.

Pushing the BJD government's decision on iron ore a step forward, Pati also wants all steel plants in Odisha to promote downstream industries and use at least 25% of their steel in value-added products produced within the state. The move could have implications for most steelmakers, including Tata Steel, JSPL, Steel Authority of India and Bhushan Steel and Power.

Companies large and small have faltered against local opposition to land acquisition. Some like Tata Steel and JSPL have begun construction of their plants in a phased manner on whatever area could be secured, which others like South Korean steelmaker Posco are still waiting for regulatory clearances. Others like Arcelor Mittal have abandoned their plans, hurting the BJD government's claim that Odisha was 'investment friendly'.

At the meeting attended by industry secretary Vishal Kumar Dev and special secretary Sarat Chandra Naik, it was also decided that the draft IPR for 2014 would be finalised before the end of the month. Development of downstream and value-addition industries in clusters, a single-window mechanism, and the need for more frequent reviews of existing projects were also discussed.

In its release, the government said Odisha was among the top three states in the country in investment attracted during the last decade and had added three to 12 times capacity in various sectors. While resource-linked projects have attracted all the attention, and controversy, the state is also pushing IT and education. Pati wants the proposed Odisha ‘Silcon Valley’ expedited.