Odisha would have a Coastal Employment Zone (CEZ) at Paradip, which would promote exports and create jobs.
The State Government has identified the area, which has been conceived for an overall development. There is 83,215 acres of land available out of which 19,200 acres has been proposed for the Phase I of the CEZ, said sources.
The sources said 5,924 acres in Paradip and 1,600 acres in Dhamra would be declared as the CEZ. While the CEZ would be headquartered at Paradip, where one of the Major Ports of the country is located, the Dhamra Port zone would also be roped in for the purpose as the area is the location of the largest private port in the east coast.
The CEZ would be developed through a Special Purpose Vehicle (SPV), in which the State Government would have 51 per cent share and the Centre 49 per cent, said an official.
The SPV would have the authority to pursue development of the CEZ and monetisation of the land would be retained within the SPV.
The CEZ could emerge as one of the major hubs for coastal shipping of thermal coal from the Mahanadi Coalfields limited (MCl) to the southern States. It could also coastally ship steel to Maharashtra, Tamil Nadu and Andhra Pradesh, the official said.
In addition, the IOCl has set up a 15-MTPA crude oil refinery complex at Paradip, close to port. Beyond petroleum, oil and lubricants, coal, fertiliser, iron and steel and timber-based industries also hold potential for the CEZ, he added.
Under the National Perspective Plan developed under the Sagarmala programme, at least 14 SEZs have been planned while on the east coast Odisha and Andhra Pradesh have shown interest to set up CEZs, said sources in the NITI Aayog. The Aayog in its three-year draft action agenda has suggested that the CEZs would have more liberal and business-friendly economic environment.
The CEZ concept is a Chinese strategy as a more focussed approach has better chances of capturing agglomeration economies and producing results over a relatively short time.
The CEZ would provide a business-friendly ecosystem including ease of doing business, especially ease of export and import, swift decisions on applications for environmental clearances and speedy water and electricity connections.
Apart from conventional infrastructure, the CEZs would need to create urban spaces to house local resident workforces.