Emerging East: Orissa’s Turn Around

1. Emerging East: Orissa’s Turn Around MP Mr. Baijayant Panda and Professor Chitta Baral Arizona State University chitta@asu.edu

2. ORISSA

3. Structure of Presentation • Orissa’s vision • Competitive advantages • Orissa – the State on path of progress • Human Resources Development • Infrastructure • Opportunity Orissa

4. State at a Glance • Capital – Bhubaneswar • Area – 1,55,707 square kilometers • Same as NY + CT • Population 2001 – 36,804,660 • Same as the population of CA in 2006 • Major industries – Steel, Aluminum, Power, Cement, Mineral-based, Paper, Higher Education • Connectivity • Air: Bhubaneswar • Roads: A leg of the Golden Quadrilateral passes through it • Rail: Howrah –Chennai and Howrah – Mumbai • Major Port: Paradeep

5. Vision of Orissa “To usher in balanced socio-economic growth of Orissa that hinges on sustainable development with strong fundamentals of industrial growth, right harnessing of natural resources and actualization of employment potential.” Shri Naveen Patnaik HonourableChief Minister Orissa

6. Did you know this about Orissa?

7. Did you know this about Orissa? The making of a knowledge hub in Bhubaneswar • Institutes aspiring to be an MIT (IIT Bhubaneswar), a Cal Tech (NISER Bhubaneswar), a Berkeley (NU Bhubaneswar) and a Stanford (Vedanta University Puri) are currently being built in the Bhubaneswar-Puri area of Orissa. • Part of the Government of India’s 11th plan initiative of 8 new IITs, Six science institutes and 14 National Universities • No other metropolitan area in India is currently scheduled to have more than two; Bhubaneswar will have all three • NISER Bhubaneswar: 2nd batch started this year • IIT Bhubaneswar: 1st batch started this year • Vedanta University in Puri – a $3 billion university with a $1 billion initial pledge from Mr. Anil Agarwal • 10 existing universities, 15 more being made; 39 existing engineering colleges, 12 more in pipeline; 15+ existing colleges (some offering graduate degrees)

9. Did you know this about Orissa? The making of a transportation “channel”! • Ports (existing and in pipeline) • Paradeep • Dhamara • Gopalpur • Kirtania • Jatadhari (for POSCO) • Astaranga, Puri • Bahuda Muhana, Ganjam • Baliharchandi, Puri • Barunei, Kendrapada • Chudamani, Bhadrakh • Inchudi, Balasore • Palur, Ganjam • National waterway 5

10. Emerging Ports

12. COAL

13. Power Tariff • Orissa is a power surplus State • Orissa has successfully carried out power sector reforms - Distribution privatised

14. Density of Roads • Road length per 1,000 square kilometre of area • Source: Planning Commission, Statistical Abstract of India

16. Number of Strikes & Lockouts • Number of strikes & lockouts (2002) • Source: Indian Labour Year Book, Labour Bureau, Ministry of Labour, GoI, 2002 • Industrial Disputes in India, 2001

18. Competitive Advantages In a globalised scenario, Orissa has drawn attention of investors with strengths: Natural • Rich mineral resources (*) • Coastline – gateway to SE Asian & Far Eastern markets • Adequate fresh water available for industrial use • About 10% of India’s utilizable water (surface & ground): 108.147 Billion Cubic Meters. • Discovery of natural gas off the coast Institutional • Positive investment climate & single window industrial facilitation by Team Orissa (*) • Proactive policy framework for developing key economic sectors and for infrastructure buildup

19. Competitive Advantages Developmental • Land contiguous to ports available for industries • Surplus quality power at most competitive rate (*) • Part of the mainline national rail and road grid Economic • Low cost labour and availability of skilled workforce • Predominance of organised industrial activity (*) Infrastructural • Major port at Paradeep moving 50 mtpa • 90 industrial parks / growth centres (9000 hectares) • Seamless connectivity by rail & road • Highest density of roads in eastern India (*)

20. Competitive Advantages Competitive power tariff Land bank Plentiful water Mineral resources in proximity Lowest cost producer of Steel / Alumina Skilled manpower Government facilitation Rail connectivity Investor friendly policies Port facility Road network

21. Orissa - The state on the move…Developments during the last three years Metal Sector • Preferred destination for Foreign & Domestic Investors • 45 projects for over 70 mtpa of Steel (28 plants partly commissioned). More than US$45 Bn investment • 4 new aluminum complexes with more than 4 mtpa alumina and 1 mtpa aluminum smelter capacity under implementation (US$ 10 Bn) • Rare earth projects through FDI mode (US$ 0.50 Bn) • Major investors in the metal sector - POSCO, Arcelor-Mittal, Tata Steel, Bhusan, Jindal, Essar, Aarti, Hindalco, Vedanta, L&T – Dubai Aluminium, etc Rourkela Steel Plant Workshop

22. Orissa - The state on the move…Developments during the last three years Chemical & Petrochemical • 15 mtpa mega petrochemical complex by IOC (US$ 6Bn) • Deepak Fertilizers implementing 2 chemical projects at Paradeep • Mega Petroleum, Chemicals & Petrochemicals Investment Region (PCPIR) under development in Paradeep area (284 Square kilometres) Cement • 5 mtpa capacity addition utilising flyash & blast furnace slag ($0.50 Bn) Chemicals Petrochemicals

23. Orissa - The state on the move…Developments during the last three years Energy and Power • 13 Thermal Power Projects under implementation with capacity of 13,500 MW (US$ 11 Bn) • Major names include Tata Power, Reliance Energy, Sterlite Energy, Mahanadi Aban, Monnet Ispat, Essar Power, Lanco Group, NavBharat Power, CESC and GMR Energy • Project by Reliance Industries Limited for hydrocarbon based power generation & gas grid (US$ 1.5Bn) • Various Mini-Hydel projects with a combined capacity of 200 MW • Non-conventional projects with 100 MW Energy & Power Power Sector

24. Orissa - The state on the move…Developments during the last three years Special Projects • Mega shipbuilding & repair yard at Dhamra ($ 0.6 Bn) • Auto components park by RSB Tourism • 5.3 million tourists visited Orissa in 2006 (growth rate >13%) • Foreign tourists 40,000 (growth rate 17%) • Hospitality sector investments by some of the most respected hotel chains • Special Tourism Area (STA) near Puri spread over 1000 acres already under implementation • Infrastructure upgradation projects in the Buddhist and beach-based circuits NALCO Exotic Beach at Puri

25. Orissa - The state on the move…Developments during the last three years Mega Infrastructure Projects • Development of industrial, economic & social infrastructure in steel & mining corridors • Major expansion of Paradeep Port underway • 12 SEZs including 4 IT SEZs approved by GoI • 4 new ports (US$ 2Bn) at Dhamra, Gopalpur, Jatadhari Muhana and Kirtania in progress and more being explored on 480 km long coast line of the state • Bio-pharma Park in Bhubaneswar through PPP • Integrated Textiles Parks at Choudwar • Auto complex at Choudwar (*) • Extensive rural electrification programmes • Bhubaneswar Airport modernization • International Convention Centre at Bhubaneswar Paradeep Port Infocity, Bhubaneswar

26. Orissa - The state on the move…Developments during the last three years Information Technology Sector • Software exports in excess of US$ 175 mn during 2006 - 07 • Orissa emerging as an IT / ITES powerhouse with presence of Infosys, Satyam, Wipro, TCS, Mindtree, ICICI Bank, Genpact (200,000 software professionals by 2015) • SMEs: More than 300 units and 12000 software professionals engaged in the state • Group of investors from Silicon Valley setting up 5000 seater IT/ITES facility • Target of exporting software to the tune of US $ 1000 mn by 2011-12 • Integrated IT City over 500 acres underway Satyam Campus, Bhubaneswar Infosys Campus, Bhubaneswar

27. Recent FDI projects in Orissa • Largest FDI of US$12 Bn by Korean Steel Giant POSCO in steel sector • Other big FDI projects: Biju Patnaik International Airport Nine hole Golf Course at Infocity

28. Infrastructure ROADS & RAILWAYS • Monitoring by Prime Minister’s office of priority infrastructure projects catering to the steel and mines corridor • Over $ 5 Bn investment in road sector in next 5 years • About $ 1.5 Bn investment in railways in next 5 years • Massive urban infrastructure upgradation through national level programmes • Investment through public funding and private participation XIM, Bhubaneswar Road in PPP mode • Source: Indiastat

29. INDUSTRIAL ZONES AND BIG PORTS Zone III Zone V KIRTANIA PORT Zone IV Zone I DHAMRA PORT Zone II PARADEEP PORT Zone VI GOPALPUR PORT Circle I Steel, Power, IT, Tourism & Ports Zone III Mining, Power, Steel Zone VI Alumina

30. State Capital-Bhubaneswar Quality of Life • Bhubaneswar is the 2ndplanned city in the country and is the safest and most economical Capital in the country making it very popular with the young masses in Eastern India (*) • Well connected to major cities in the country • Among 5 fastest growing cities in real estate • Pollution free environment with very pleasant and comfortable living conditions • Excellent residential, recreation and entertainment facilities • Top quality schools & colleges • Large multidisciplinary hospitals by AIIMS & Apollo; Specialty Centres for cancer, heart, eye, diabetic research, spinal injury and trauma care • Fascinating weekend getaways, pristine beaches, exotic flora & fauna and wildlife sanctuaries, at proximity Shopping Malls Hotel Swosti Plaza, Bhubaneswar Well planned Residential Complexs

31. Bhubaneswar-Puri area as a knowledge hub: soon to have 25 universities Existing Universities Upcoming universities Vedanta University National University (WCCU) AIIMS Bhubaneswar National Law University Sri Sri University ICFAI University Jagadguru Kripalu University Orissa open university National Institute of Design (?) 6 deemed university applications in pipeline 12 four year engineering colleges • IIT Bhubaneswar • NISER Bhubaneswar • Utkal University • Orissa U of Agriculture and Tech. • Ravenshaw University • IIIT Bhubaneswar • Utkal Univ. of Culture • Sri Jagannath University • KIIT deemed University • SOA deemed University • 39 additional four year engineering colleges, some with graduate programs • 30+ Colleges offering Bachelors in non engineering subjects (some offering graduate programs)

32. Vedanta University Master Plan (Ayers St. Gross designed): For 100,000 students and 500,000 city residents Plan

33. Building Uses Vedanta University Plan Master Plan\ Academic Housing Administration Library Student Union Performing Arts Recreation

34. Academic Precincts University Master Plan Research Liberal Arts Classics Journalism Architecture Facilities Humanities Education Arts + Music Professional Studies Performing Arts International Studies Recreation Library Health Science Engineering Bioscience Sciences Medicine Hospital Business Dentistry Nursing Law Graduate Studies

35. Vedanta University Phase 1

36. Vedanta University Hospital Medical School • Perkins and Will http://www.perkinswill.com/ has been shortlisted to design the complex (34 acres) • Jensen partners (http://www.jensenpartners.com/) has been shortlisted to equip the medical college and develop the program • Overall status: About 3500 of the 6000 acres have been acquired • Work on the building expected to start in the end of October 2008.

37. Medical Colleges in Bhubaneswar-Puri area Existing Upcoming Medical College of Vedanta University AIIMS Bhubaneswar Capital Medical College Medical College of Sri Sri University Medical College of National University • SCB Medical College • HiTech Medical College • Kalinga Institute of Medical Sciences • SUM Hospital and Medical College

38. Human Resources Development in Orissa Higher Education • Hub of engineering, management & medical education in Eastern India • Tripling of engineering/MCA technical education capacity since 2001 • 30,000 B.Tech / MCA, 3000 Management professionals and 50,000 general graduates pass out every year • Apeejay implementing integrated Knowledge Park • Besides IIT, NISER, & World-Class Central University, a central University in Koraput and a IIIT in Berhampur. Utkal University, Bhubaneswar RIE, Bhubaneswar

40. Bhubaneswar and Chandaka

41. Near Deras Dam in Chandaka

42. Bhubaneswar, Puri and Konark

43. Bhubaneswar and Chilika lake

44. Chilika Lake

45. Orissa: What the experts say • Mckinsey 2005: “Orissa’s economy is poised to grow at 7.1% over the next 10-12 years, the highest in Eastern India” • CMIE 2006 & 2008: “Orissa accounts for 15% of total investment in hand in the country. It tops in terms of Industrial investment ($133 Bn) and project implementation ahead of Maharashtra & Gujarat” • World Bank 2008: “Orissa is a State on the move. GSDP has grown at the rate of 8.5% on average during 2002-07” • Alastair King, CEO of UK-based India investor Eredene Capital (Quoted in a Reuter article): "Relative to building the 10th new retail mall in a suburb of Mumbai ... I'd much rather build the first distribution park in the steel industry of Orissa, where you've got great demand."

46. Why Orissa? Positive investment climate • Vibrant industry sector • A proactive and positive Government with a modern outlook • Stability of political regime and policy framework for developing key economic sectors and for infrastructure buildup (Legislative framework to reduce transaction time & cost for investors) • Strong institutional support and Single Window facilitation by Team Orissa • Harmonious industrial climate and relations (*) • Team Orissa • Chief Minister is the captain of Team • Institutional framework of the Government that is engaged in industrial facilitation and investment promotion Mukteswar Secretariat Building, Bhubaneswar

47. Why Orissa? Government promoting inclusive growth for sustainable & balanced development: • People oriented R & R policy • Strong institutional mechanism to promote periphery development with involvement of all stakeholders • Stress on environment management • Focus on SME sectors • Strategy to leverage natural resources for all-round prosperity and enabling rural livelihoods • Rapid infrastructure development through PPP framework and policy KIIT University, Bhubaneswar Well planned Roads

48. Opportunity Orissa • Education and Knowledge Sector • Automobile sector • Ancillary / downstream / construction phase projects of mining / steel / aluminium / petrochemicals (*) • Equipment and technology suppliers & vendors • Heavy engineering and fabrication • Plant and machineries for ports (*), roads, industrial water supply, mining equipments, etc • Power projects – coal washing, modernisation of existing units, renewable energy • Marine fisheries & infrastructure • Services sector • Tourism • Information Technology / ITES

49. Opportunity Orissa • Development of industrial parks and SEZs (*) • Critical economic & social infrastructures in industrial and mining corridors – roads, water supply, housing, hospitals, etc • Construction domain including industrial construction, townships, roads, ports, real estate and other infrastructure • Technology applications in utilisation of flyash and blast furnace slag • Clean development mechanisms projects – green manufacturing processes and technology

50. Invest in Orissa and be a preferred partner • CAPEX database of The Centre for Monitoring Indian Economy (provider of project-wise information of new and ongoing capital expenditure projects in the country) • Ranks Orissa first in terms of value of total envisaged projects for the period ending December 2007. • Estimated investment of Rs 599,181 crores (= $150 billion) • Ranks Orissa first in terms of value of total projects under implementation in the country at Rs 308,589 crore. • There are 483 projects being carried out in Orissa: 52% are under implementation stage while 48% are in the announced stage.