Biz hope floats in crisis

The Telegraph (Kolkata), Oct 21, 2008

Bhubaneswar, Oct. 20: Trends of recession in global markets have pressed the panic button in industry circles. But government officials feel that it would not have much impact on upcoming industries, which have already made significant investment.

Orissa had emerged as the most preferred investment destination among the Indian states with investment proposals to the tune of Rs 6 lakh crore lined up for steel, aluminium and power projects.

In the present global economic scenario, there were obvious apprehensions that many of the projects might not see light of the day. But mandarins in the industries department are not upset.

State industries secretary A.P. Padhi said several of the promoters had already invested a lot. Out of the 66 industrial projects — for which MoUs were signed — investment to the tune of 75 per cent have already been made in 49 projects. Financial closure has been made in most of the projects. “There is less likelihood that such projects will be abandoned,” said Padhi. However, expansion might be affected because of recession, he said.

He said that with several major international and national companies such as ArcelorMittal, Posco and Vedanta in the process of setting up of integrated steel and aluminium plants in Orissa, there was a tremendous potential for the growth of ancillary and downstream units in the state.

“We already have a mechanism, Bureau of Public Enterprise, for promotion of ancillary and downstream units in public sector. Now, the same is being extended to private sector also,” said Padhi.

Chief minister Naveen Patnaik today chaired a meeting to review the promotion of ancillary and downstream industries. It was decided that the draft policy for promotion of micro, small and medium industries would be placed before the cabinet soon.

Posco, Jindal and Aarti Steel have conducted study on potential of ancillary and downstream industries. While Posco had engaged CB Richard Ellis for undertaking the study, Jindal had entrusted the job to IIT, Kharagpur. Aarti Steel has done the study itself.

The state government has identified five potential zones — Jharsuguda, Kalinga Nagar, Angul, Paradip-Dhamra and Kalahandi-Rayagada — for promotion of ancillary and downstream industries.

Jharsuguda has been identified as a potential zone for ancillary and downstream units in aluminium, steel and power sector.