A Reserve Bank of India (RBI) report six months ago had ranked Odisha as the hottest investment destination in the country based on investor interest and incoming investments during the year 2012-13.
Odisha witnessed investor commitments of Rs 53,000 crore during the period, ahead of prosperous States like Maharashtra, Gujarat, Karnataka and Tamil Nadu, constituting 27 per cent share of the all investments in India. But what remains to be seen is can Odisha continue to be the darling of global investors in the time to comeIJ The growth dream that the ruling BJD Government had been showing the State for the past 14 years is already under a reality check. The State has been on the top of the lists of many investors eyeing big projects. But the problem-ridden present and uncertain future of existing investors due to various anti-industry movements and indecisiveness of the Naveen Patnaik Government are now making investors wary. This is also sending negative signals to prospective future investors.
Be it Posco which entered Odisha with the biggest ever FDI investment plans or Vedanta which has already invested Rs 52,000 crore in setting up huge refineries, smelters and power plants in the State, the future looks bleak thanks to the State Government’s failure to push things forward despite its making tall claims to them. The scenario must be changed if Odisha wants to continue to attract investors for its
future growth.
The Gujarat model of economic development has gained widespread exposure during the election campaign this time. It is the investor-friendly attitude of the Gujarat Government and the processes and systems in place to ensure a smooth ride for investors that have helped the State achieve rapid growth.
There is a need for Odisha to adopt a few tricks from Gujarat’s hat.
Investors landing in Gujarat rarely face such problems that they do in Odisha. The State’s initiatives including single window clearance of investments, quick redressal of business issues and pro-active and cooperative governance has gone a long way in making it one of the fastest growing States in the country. Owing to its mineral reserves, Odisha has better prospects than Gujarat for ushering industrialization. But for that to materialize, the State Government must provide the required platform. It has to ensure optimum utilization of the State’s minerals and other raw material reserves for achieving a better growth rate. Mineral reserve lying idle is of no good to the State. That is more like wasting nature’s gift to the State.
Abundance of bauxite, iron ore, coal and a number of other minerals has given it the opportunity to become a global metal and mining hub.
This will create great employment opportunity for the people of the State, lead to wide infrastructure development, community development and huge revenue for the State Government to pursue its socio-economic developmental programmes. For example, if Vedanta Aluminium ltd, which at present is operating at 30 per cent of its capacity due to lack of bauxite linkage, is provided with the promised raw material enabling it to scale up operations to 100 per cent capacity, the State will get over Rs 2,500 crore from the company alone in taxes and duties.
Owing to the State’s policy paralysis, its Gross State Domestic Product (GSDP) has declined sharply from a level of over 12.5 per cent witnessed almost all the financial years between 2003-04 and 2007-08 to 4.92 per cent in 2011-12. The new Government coming to the helm of affairs in the State should break away from the sluggishness by ending the era of indecisiveness. It must aggressively pursue the issue and resolve them for the benefit of the industries and the State alike.
Odisha’s growth depends on how strongly the next Government builds upon the State’s strength – the mining and mineral sector and helps industries grow.