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Odisha has been the pioneer in power sector reforms which have opened up avenues for private sector participation in generation, transmission and distribution of power. Generation and distribution functions have been clearly separated. The entire distribution system has been privatized by divestment of 51% of the shares in favour of the private sector.

From a power surplus state Odisha has recently become a power deficit state. Establishment of new power projects to provide power at a reasonable cost may be the only solution to the problem.

Present Power Scenario


Odisha in many ways is a link between eastern and western India through railway network of South-Eastern and East-coast Railways. With the commissioning of the Talcher-Sambalpur Railway in the recent past a vital link has been established between coastal and western Odisha. While construction of Koraput-Rayagada line has been completed, Daitari-Banspani and Khurda Road-Bolangir Railway link are in progress.

Development of Haridaspur-Paradeep and Angul-Sukinda Rail link will connect the resource base to industries.


The first road project of the State under commercial format, i.e. Bhubaneswar Integrated Road Network Project for providing bye-pass to Bhubaneswar-Cuttack cities and to provide a direct corridor between Bhubaneswar and Cuttack has been launched as a collaboration between IDCO & IL&FS.

Private sector participation in the following projects through the BOT route may be initiated to help the industries.
1) Talcher-Gopalpur (via Narsinghpur, Nayagarh, Purushottampur).
2) Cuttack-Paradeep four laning.

National Highways in Odisha


The Paradeep Port has been serving the needs of Odisha and has been expanding constantly. Container handling facilities are now available here.

Facilities available at Paradip Port


Industrial Parks / Growth Centres
The Export Promotion Industrial Park at Bhubaneswar, known as INFOCITY, has already been established and commissioned for development of IT industries. A multi-storied building (Tower 2000) having 93,000 sft. built up space, has been constructed in Mancheswar Industrial Estate, Bhubaneswar for development of Software industries. Another multi-storied high-tech building of 3.5 lakh sft. built up area is under construction near STPI, Bhubaneswar to provide world-class infrastructure facilities for software industries.

Industrial Growth Centres at Duburi, Jharsuguda, Chhatrapur and Kesinga; mini Growth Centres at Khurda, Raygada and Paradeep for growth of ancillary and down-stream industries are being set up by IDCO with Central assistance. For each Growth Centre 1000 acres and for each mini Growth Centre 100 acres of land will be developed at a cost of Rs.30 crore and Rs.6 crore respectively.

Approval of Govt. of India in the Ministry of Commerce has been obtained to set up a Special Economic Zone (SEZ) at Paradeep. The required land has been identified by IDCO for the project.

At Duburi Industrial Complex in Jajpur district, IDCO has acquired about 20,000 acres of land for establishment of steel, power and other mineral based industries. Neelachal Ispat nigam Ltd. located in the complex has already started production. This complex enjoys all industrial infrastructure advantages like power, water supply, road, railway and port links.


IDCO has set up industrial estates in different strategic locations of Odisha in which necessary infrastructure facilities and amenities have been provided. Developed plots and built-up sheds are available in them for entrepreneurs intending to set-up industrial projects.

The procedure of allotment of land/sheds is given below :

For projects in SSI Sector

The entrepreneur is required to first prepare a project report or project profile covering the details on items to be manufactured, manufacturing process, water/power requirements, project cost and proposed means of finance. Thereafter the project is to be registered with the concerned District Industries Centre and Provisional Registration Certificate (PRC) obtained.

Thereafter, the application in prescribed format (Annex-1) is to be submitted to the DIC for allotment of land or shed. Copies of PRC and Project Report are required to be enclosed alongwith application. In case the entrepreneur requires a plot, a layout plan showing the area applied for and proposed utilisation of plot should be enclosed along with the application. The name of industrial estate in which land / shed is required should be clearly indicated in the application.

On receipt of application, the concerned DIC will issue an Assurance Letter for allotment to the entrepreneur so that he can approach the Financial Institutions for sanction of term loan for his project.

After the project financing is tied up, the DIC will make an assessment of built-up area and land area requirement of the project and forward the application to IDCO alongwith his recommendation.

For Medium &Large Projects

For large projects, Industrial Licence and SIA registration is to be obtained wherever applicable. The applications for projects in medium scale are rotated through nodal agencies like Industrial Promotion & Investment Corporation of Odisha Ltd., Odisha State Electronics Development Corporation Ltd., (for electronics projects), Agricultural Promotion & Investment Corporation of Odisha Ltd., ( for agro based projects) etc. These agencies appraise the projects, workout land area requirements and send their recommendation to IDCO.

The applications forwarded by the DIC/Nodal Agencies are processed by IDCO and the plot or the shed to be allotted is identified and allotment order is issued. While selecting the plot or shed to be allotted, due weightage is given to the preferences of the entrepreneur. Factors such as type of project, likely effluent generation etc. are also taken into account while selecting the location of shed/plot.

The plots and sheds are allotted on 90 years lease hold basis. The allottee is required to pay one time premium and development cost (and building cost in case of sheds) in full before taking over possession. The premium cost is charged as per rates given in the prevailing Industrial Policy. The development cost is determined based on the expenditure on development of infrastructure facilities in that particular industrial estate. The building cost is charged @ Rs. 200 per sqft. for ACC roofing constructions and @ Rs. 250 per sqft for RCC roofing constructions.

On deposit of cost, the lease agreement is executed and registered with the concerned Registration Authorities. Under the prevailing Industrial Policy, concessional stamp duty @ 5% of cost is payable by the allottee for registration of lease agreement. IDCO allows mortgage of allotted plots & sheds with Financial Institutions for availing loans for the industrial projects.

The allottee makes payment of ground rent/cess (@ 1.75% of premium cost) and Infrastructure Maintenance Charges (@ Rs. 2500 per acre) to IDCO annually. While ground rent/cess is deposited with the Govt., the IMC is utilised to maintain common services such as roads, drains, street lights etc. in the industrial estates.

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Special Tourism Area(STA), Puri
Bhubaneswar-Puri-Konark has been always the focal point of Odisha's tourism and to realize its full potential, the Government have planned to develop a Special Tourism Park along the virgin sea beach. There is enormous potential of private sector participation and investment in this project.



Odisha's vast natural resources - minerals, flora, water bodies, etc. and other raw materials help to form the basis of her industry. Industries including household industries provide employment to 5.8% of her working population. There exists an industrial base of a number of large and many medium and small scale industries which offer the foundation for the development of a strong corporate sector.

The existing major industries in the public sector are an integrated steel plant at Rourkela, an alumina refinery near Koraput, aluminium smelter at Angul, an unit of Indian Rare Earth Ltd to manufacture Heavy metals, Phosphate fertiliser plant at Paradeep, and an Urea plant at Talcher. In the private sector there are several major groups who have set up medium to large industries in Paper, Automobile Tyres, Synthetic Fibre, Cement, Sugar, Vanaspati, Electronics, Ferro Alloys, Aluminium Extrusions, Sponge Iron & Special Steels.

Besides, there are a host of small to medium industries producing a wide range of products including electronics, cement, engineering products, chemicals, marine products, textiles etc., most of which are concentrated in and around the cities of Bhubaneswar, Cuttack, Balasore and Rourkela.

IPICOL is acting as Single Window Contact for all information related to setting up large and medium industries in the State. Its promotional role also includes :

  • Operating the State incentive schemes to large and medium industries under the Industrial Policy of the Government.

  • Providing and managing data base and consultancy for preparation of project reports.

  • Identifying and listing potential investment opportunities for the State.

  • Providing finance for projects in the form of term loans/Equity Investment/Equipment finance etc.

  • Organising seminars, campaigns, road shows and investors meet in different cities of India and abroad.

  • Assisting in technology sourcing and for technology upgradation.

  • Providing merchant banking services.

  • Providing financial and management support for revival of sick but potentially viable industrial units.

Financial assistance by IPICOL has contributed to a total investment of Rs.3750.00 crores covering a wide range of products like Pig Iron, Sponge Iron, High Speed Steel, Aluminium Extrusions, Aluminium Powder, Aluminium Rolled Products, Cement, Textile, Paper, Industrial Gases, Synthetic Fibres, Granite, Refractory etc.

District Industries Centres (DICs) have been set up to look after promotion and monitoring of Small Scale Industrial Units of the State. The DICs help SSI units in providing provisional and permanent Registration Certificate, allotment of raw-materials, arrangement of power, land/shed, provide I.P.R. incentives, such as Capital Investment Subsidy (CIS), Sales Tax exemption on purchase of raw-materials and sale of finished products, octroi exemption on purchase of raw-materials, plant and machinery.


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