Business Standard

Odisha: Overcoming hurdles to faster growth

Industry and the state government agree to adopt a collaborative approach

(L to R): TV Narendran, MD, Tata Steel; Ashok Panda, minister for tourism & culture; Debi Mishra, minister for industries; Ansuman Das, CMD, Nalco; AN Sahay, CMD, MCL; and Jagadananda, founder & mentor, Centre for Youth and Social Development, at the

(L to R): TV Narendran, MD, Tata Steel; Ashok Panda, minister for tourism & culture; Debi Mishra, minister for industries; Ansuman Das, CMD, Nalco; AN Sahay, CMD, MCL; and Jagadananda, founder & mentor, Centre for Youth and Social Development, at the

Jayajit Dash
Identifying land procurement and infrastructure bottlenecks as the two key speed-breakers on Odisha's growth path, industry and the state government agreed to overcome them through a collaborative and calibrated approach.

Experts debated ways to transform Odisha into an economic powerhouse at the first session of the Business Standard Odisha-2014 Round Table, titled 'Tapping Odisha's Potential for Growth'.

The state is a favoured investment destination, but slow land acquisition for some big ticket industrial projects has taken some of the sheen off its growth story.

"For industry, land is an important issue. It is also an emotional subject for land losers. But we are not the best people to solve the multiple issues surrounding land acquisition," said T V Narendran, managing director, Tata Steel.
 
Narendran stressed the importance of collective efforts by industry and the government to find a way out of the problem. He admitted that while Odisha is one of the richest parts of the country below the ground, it has not translated into wealth above the ground. He attributed this to a lack of collective resolve.

"Land is not the only cost, but time as well. China builds a steel plant of five to 10 million tonnes in three years. We take much longer. But we are a democracy and the government, industry and civil society need to work together to overcome the land challenge," Narendran said.

Agreeing, Ansuman Das, chairman and managing director of National Aluminium Company (Nalco), said there should be clarity before industry is invited to the state. "When industry is brought in, it is shown a rosier picture. But the moment you start ground breaking, problems crop up. Then, there are time overruns, leading to cost overruns. The government has clear policies but they have not percolated to the district administration and local level," he added.

A N Sahay, chairman and managing director of Mahanadi Coalfields Ltd (MCL), said the biggest challenge was to relocate people from coal-bearing areas.

"If land is available, clearances are in place and there are no evacuation issues, MCL can reach a production level of 300 million tonnes of coal in the next 15 years. But land is a big issue for us because it is site-specific. We have to mine the land having coal reserves. Unless people are shifted, mining cannot happen. And, shifting is very difficult, since people are emotionally attached to their lands," he said.

Jagadananda, founder and mentor of Centre for Youth and Social Development (CYSD), an NGO, underscored the need for a complete, holistic and inclusive growth process in Odisha.

"The kind of consultation which is needed with the people at the panchayat level is not happening. The district administration, which is supposed to play the umpire's role, often sides with industry," he said.

Industries Minister Debi Prasad Mishra said the remedy lay in imparting skill training to young professionals and keeping landholders happy through the creation of a value chain by industry that generates gainful employment.

The session also focused on tapping Odisha's huge potential for tourism, which has remained under-utilised.

The state's tourism and culture minister, Ashok Panda, said that to boost tourism growth, the state government has taken some steps to upgrade road connectivity, the latest being the launch of the Biju Expressway, a 656-km economic corridor between steel city Rourkela and Jagdalpur in Chhatisgarh.

"We are unable to draw high-end foreign tourists to Odisha due to air connectivity issues," he complained. On the positive side, Panda said, the state government has received 63 proposals from private sector players interested in participating in tourism infrastructure projects.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Dec 09 2014 | 9:46 PM IST

Explore News