The second edition of the Make In Odisha currently being held at Bhubaneswar has brought a fresh leash of hope with the top business houses in the country promising again an investment prospect that runs into crores.
While Odisha is all set to scale new heights, there is something not right about making in Odisha at Jharsuguda. The State’s ambition might get dampened by one single differentiating factor that is hurting the industrial aspirations in Jharsuguda and that is coal security.
The State has lots to promise in terms of a stable governance and its pro-business stance, ease of access to global markets, rich and abundant deposits of many crucial minerals like chromite, bauxite, iron ore and coal, and availability of skilled human capital. But is that the golden truth or is there something more underneath the simmering façade presented to investors globally?
A closer look at the industrial corridors of Odisha, especially the industrial belt of western Odisha which houses some of the biggest names in manufacturing sector like Vedanta and Hindalco tells a different story. A careful observation of their state of affairs will make it evident that all is not fine in the biz houses especially when it comes to coal security for the industries.
Coal, a crucial raw material in the production of aluminium, has been a matter of concern for the major companies like Vedanta and many other home grown industries despite proximity to abundant reserves of coal. Despite CIL’s repeated claims that it produces enough coal, MCL (a subsidiary of CIL) has been a regular defaulter in meeting its production targets year after year severely stressing the coal demand-supply equation in Odisha.
Many of MCL mines are frequently rendered non-operational due to non/delayed availability of environment and forest clearance, delay in land acquisition, law and order issues, and unavailability of coal patch to mine from. Add in the Government’s mandate for preferential allotment of coal rakes to PSUs, the private companies and CPPs are rendered helpless as their share of CIL’s coal dropped even further.
Forced to turn to imports of coal and power, Vedanta spent hundreds of crores (estimated) in October imports alone. That is a staggering amount of money being lost outside the State whether as forex or avoidable cost. With new industries being planned along the western belt of Odisha and bigger industries intending to ramp up their production and set up downstream parks, shortage of crucial raw materials like coal will be a serious dampener on the State Government’s aspirations through the Make In Odisha. After all, these companies were ‘making in Odisha’, providing employment opportunities to thousands and contributing to the development of their locals through CSR and community investments, even before such a campaign was conceptualised.
Although the woes of major industries are not limited to coal unavailability alone, it is definitely an incredulous irony in the face of MIO, considering Odisha has more than one fifth of India’s coal reserves. Jharsuguda-Sambalpur-Rourkela was once a thriving industrial belt with numerous small, medium and big companies flourishing here. But now it is gradually becoming a story of the past. These industries in fact contributed to the development of regions like Jharsuguda, making them one of the biggest contributors to the State’s economic development. Over the years, however, many companies have pulled shutters and many others have been discouraged to invest here. How then are industries expected to herald socio-economic development of Odisha?
Unless things change soon, business houses will think twice before investing in Odisha, despite the State Government’s constant reassurances of a healthy and industry-friendly ecosystem. No guesses as to what that sounds for the vision called ‘Make In Odisha’.
The Odisha Government, if it intends to strengthen the industrial ecosystem, must stand up to these stark realities facing the industrial fraternity today and work out the means to ensure sustainability of these coal starved industries. It is not only desirable, rather a must-do to take up the plight of these industries with the Central Government especially with the Ministries of Coal and Power and evoke the much needed respite for the local industries, or else it will result in an industrial catastrophe beyond repair.