It is tremendous when one observes how nature has built up Odisha providing multiple growth catalysts at different corners. On the east, it has a coastline that runs almost 480 km with the possibility of at least a dozen small to big ports that can be instrumental as trade boosters adding impetus to the growth of coastal Odisha. Moreover, the rich soil of eastern Odisha is agriculture-friendly.
On the western part, the State is even more gifted. The north western part is one of the leading iron ore belts with huge deposits of other minerals, including coal and chromite. It has a deposit of 28 per cent of the country’s total iron ore reserves, 98 per cent of chromite and 24 per cent of coal. This provides a great platform for industries related to iron and steel and power.
Similarly, the south western part is rich in bauxite. Odisha is home to around 65 per cent of the country’s total bauxite deposits. 95 per cent of it is located in four western and southern districts —Koraput, Kalahandi, Raygada and Balangir — which are parts of Eastern Ghat. A planned growth of the aluminium industry in this region will give rise to whole new allied and ancillary sectors, creating employment, adding to the country’s GDP and changing lifestyles of millions of people of the State.
With Paradip being the global gateway for miners and industries and Bhubaneswar along with Cuttack being the biggest business centre, the growth story has always been biased towards eastern Odisha. However, of late, the State’s economy, which now revolves around mining, steel, iron industries, real estate and services, presents a lopsided story with the eastern and north western districts being the growth drivers.
South west districts have been the weak-link in this story. But that is only because of lack of vision and existing policy paralysis. The scenario can be changed completely if aluminium industry receives due support from the policy makers.
India is the fourth largest in the world with total deposits of 3,480 million tonnes of bauxite, the key raw material to produce
aluminium.
Owing to its light weight, infinitely recyclable properties, high durability and other eco-friendly advantages including lower carbon footprint and power requirement in recycling, the metal is gaining wider acceptability. Demand for aluminium in India has grown at a CAGR of more than 15 per cent in the past five years, while the global demand has advanced at about eight per cent. However, with the global transport industry now eyeing aluminium for manufacturing light weight vehicles with lesser fuel consumption and lower carbon emission, demand for the material is set to pick up further.
Construction sector too have started betting big on the metal. This is providing a big scope for the bauxite-rich and aluminium producing countries. It is definitely is an opportunity for India, which is already the 5th largest producer of metal. The huge bauxite reserve that the country has coupled with lower man power cost can help it boost its global trade and position. But Odisha must play a major role in the same for its own growth and growth of the people who live in the bauxite dominated areas.
With a per capita Net State Domestic Product (NSDP) of Rs23,968, Odisha is way behind even States like Mizoram, Tripura, Chhattisgarh, Jammu & Kashmir and Meghalaya. In fact, the State’s NSDP is just about 60 per cent of the national per capita income of Rs39,168. But a district-wise review suggests a very different picture. Per capital NDDP of two districts Jharsuguda and Angul are far too better than what Odisha presents. With per capita NDDPs of Rs49,021 and Rs37,569 respectively, people of both districts are much better off than the country’s average itself. A developed aluminium industry and its ancillary industries has been the catalyst in this achievement.
This economic growth also reflects in these two districts’ human development indicators. While the mortality rate (under 5 years age) of Odisha is 79 per 1,000 live births as compared to the national average of 56, for Jharsuguda and Angul it is 55 and 58 respectively.
Household access to toilets within premises at 26.1 per cent and 24.1 per cent respectively is also better in the two districts as compared to the State average of 22 per cent. The national average is 32.7 per cent. Moreover, with focus shifting from survival to growth, people’s positive attitude towards quality living is quite visible in these two districts. The gender gap in literacy has narrowed down to around 16 per cent in both the districts against 17 per cent for the State.
Today all villages of Jharsuguda district are electrified, while 95 per cent of Angul villages have electricity connection as compared to State average of 88 per cent.
Aluminium is not only a green metal with a big scope, but also a tremendous growth driver. A study conducted by John Dunham & Associates, for each aluminium industry job in the US, an additional 3.3 employment positions are created elsewhere in the
economy.
Considering that processes in India are less technology-driven, it can be assumed that the 3.3 additional employment will be around 4 to 5 here. Thus, if a Sesa Sterlite plant in lanjigarh of Kalahandi creates 1,00,000 direct and indirect employment at its full capacity, it will actually result in an additional 5,00,000 employment for the State.
Moreover, the bauxite reserves in the south western belt are more than sufficient to feed raw material to at least another three to four big aluminium plants. This stands for 25,00,000 additional employment for the State and the country, which will boost the State’s socio-economic growth at an unparalleled rate if those four to five big aluminium industries can be set up.
For decades Kalahandi and Rayagada have been languishing as the poorest districts. Even today, their mortality rates (under 5 years) are as high as 75 and 103 respectively for 1,000 live births. Just about 11 to 14 per cent of the households do have toilet facility in their premises and 35 to 45 per cent villages are living without electricity. The key to growth in these districts lies in aluminization of the local economy. Development of aluminium and ancillary industries in the KBK area will give them the opportunity to be partners in growth.