Development of two major investment zones in Odisha hangs in balance as funds flow for these ambitious projects faces inordinate delay due to indecision at the Union Government level.
The flagship project, Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) Paradip has failed to take off as Rs3,000 crore of grant, which was supposed to be released for development, is not getting through.
Similarly, the National Investment and Manufacturing Zone (NIMZ) Kalinganagar, which requires at least Rs10,000 crore for infrastructure development has not received any grants from the Centre.
The State Government making a detailed developmental plan approached the Ministry of Chemicals and Fertilizers to provide Rs 3000 crore of grant by way of a viability gap funding (VGF) to take up development of various critical infrastructure in PCPIR.
Spread over 71,000 acres of land, the PCPIR needs a huge investment for infrastructure development. However, the Ministry of Chemicals and Fertilizer has approved a grant of Rs1,000 crore for the development of PCPIR, Paradip.
Repeated reminders and talking to the senior officials of the MoCF has not yielded any positive results, for which development of the major investment region is just not taking off.
Similar is the case of NIMZ Kalingnagar, where Rs10.627 crore is required to take up infrastructure development. While the NIMZ Kalinganagar was accorded final approval by the Government of India, the Department of Industrial Promotion and Planning (DIPP), funds flow was not there to take up any infrastructure development.
The NIMZ Kalinganagar, which spreads over 163 Square Km envisages an investment potential of Rs1 lakh crore.
The NIMZ will generate 3.50 lakh job opportunities and with the steel hub, it has a huge potential, admit senior officials of the Ministry of Steel.
Recently, when the Union Minister of Steel visited Kalinganagar, he was very happy to see the scope of expansion through the NIMZ.
However, the Government of India, which is needed to take up infrastructure development in a big way, remained quiet for some time.
While grants flow is not there, the DIPP is needed to take up with other Ministries to develop external infrastructure for which Inter-Ministerial coordination is needed, sources said. The NIMZ needs both social and physical infrastructure for which over Rs10,000 crore is required.
As of now, the cost of preparation of master plan is provided by the DIPP and other requirement, which needs a huge investment has not been looked into, admit senior officials. In the meantime, the State Government has formed the required Special Project Vehicle (SPV) for the NIMZ and waiting for support of the Government of India.
However, no support is forthcoming, for which the SPV authorities are now clueless as to how to go ahead with the NIMZ. So both the major investment regions of the State, which have a huge potential are hanging in balance, admit officials.