Orissa to redefine mega projects

 The changes proposed include rephrasing the definition of mega projects, announcement of special package of incentives for mega projects and revision of list of items ineligible for incentives under IPR.

 The changes are expected to be approved by the Industrial Infrastructure Advisory Committee (IIAC) headed by the chief secretary in a crucial meeting scheduled for Thursday next.

 The agenda note prepared by the state industry department for the meeting pointed out that IPR, 2001 has defined a mega project, which is eligible for special package of incentives, as an industrial project with capital investment of Rs 300 crore or more.

 However, the same threshold for mega projects in West Bengal was Rs 25 crore, Jharkhand- Rs 50 crore, Chhatishgarh- Rs 100 crore and Karnataka- Rs 100 crore. The investment limit in case of Andhra Pradesh is pegged a little higher at Rs 500 crore.

 Because of lower investment thresholds in some neighbouring states for mega projects, investors are not inclined to prefer Orissa over such states as an investment destination, agenda note said and added that only exception has been mineral based projects where Orissa enjoys an competitive advantage on account of its mineral resources.

 In a bid to make Orissa more investor friendly, the government proposes to classify the mega projects into three categories and lower the threshold investment limit for the non-mineral based projects.

 As per the new proposal, the threshold investment limit for projects based on iron ore and bauxite remains unchanged at Rs 300 crore and above to be categorised as mega project.