When the year 2016 witnessed the most big-bang efforts by the Odisha Government to reap windfall of private investments inflow to the State with hosts of conclaves across the big industrial centres in the country, the excel sheet of the year, however, failed to show any big-bang result as with an investment inflow of a mere Rs 21,000 crore, it trails far behind the inflow of Rs 28,000 crore and Rs 24,000 crore in 2014 and 2015, respectively.
According to data with the State Industries Department and the Investor Entrepreneur Memorandums (IEMs) filed in MSME categories, the year 2016 saw the IEMs filed worth Rs 21,000 crore. The comparative figures for 2014 and 2015 are Rs 28,219 and Rs 24,542 crore, respectively, though the State this year has seen almost an equal number of IEMs filed in 2014.
What needs to be reminded here is that via the mega conclaves in Mumbai, Benguluru and the mother of all, ‘Make in Odisha’, in Bhubaneswar, the State Government has declared a commitment of a humongous over Rs 3 lakh crore private investment inflow into the State. But in actuality, a mere 6 per cent of the total commitments made could only materialise in 2016. Though, only one IEM filed has commenced production so far during the year.
Top Industries Department officials don’t seem perturbed because they attribute the lower rate of materialisation to the apparent economic slowdown gripping the country following adverse fallout of the lingering global slowdown. “We see light in the tunnel given the IEMs filed in Odisha coming from an array of sectors which hitherto have never seen any investment commitment and these sectors have good growth potential in coming years,” explained a top official in the department.
A look at the IEMs filed in 2016, in fact, shows that the State has received investments from outside in the diary sector, food processing, readymade garments, rubber tyres, jewellery and hotels in addition to its strongholds of power sector, cement and sponge iron. But the important revelation is of the over 27 IEMs filed; half of them only were to see bringing up of new undertakings. This shows last year’s hectic business show by the State Government was successful in bringing a mere 12 new undertakings to the State.
Significantly, when rapid industrialisation is seen as an antidote to treat the rising unemployment in Odisha, which is at a high of 5 per cent, the IEMs filed in 2016 showed creation of only over 500 jobs. While most of the IEMs filed didn’t specify the proposed employment to be created, only half a dozen indicated to create a total of 512 jobs when the projects get going on the ground. However, given the size of investments committed in the IEMs filed, the job potential looks bright. For instance, the Adani Wilmar’s 84,000-metric tonne vegetable oil manufacturing unit alone could generate employment potential for at least one thousand jobseekers, sources informed.