In a major boost, prior to the Odisha Government’s mega investment conclave ‘Make in Odisha’ in Bhubaneswar, the big enthusing fact to the fore is that for the first time in the last decade (2008-2018) the actual investments inflow to Odisha has crossed the Rs 1,000-crore mark.
More significant is for first time in last decade-and-a-half, the State witnessed a healthy ratio of actual investments materialised to investment intentions made to over 54 per cent – which means a high of 54 per cent of investment intentions to Odisha have been actually materialised in the first 8-months (January – August) of 2018.
As per data available regarding filing of Part B of Industrial Entrepreneurial Memorandum (IEM) for period January to August 2018, the actual investments materialised in Odisha stood at whopping Rs 3,761crore. Odisha has, however, recorded a whopping Rs 6,941crore investment intention from as many as 31 industrial proposals for the period January – August 2018.
Thus, in the vital parameter of actual investments materialised Odisha for the first time since 2008 could figure at the eight-slot in top-10 States in the country. Earlier, Odisha was in the top-15 as far as actual investment inflow index is concerned.
For the first time, the State witnessed inflow of such high actual investments within the first eight-month of a calendar year. The fact, however, need to be reminded here is during the last decade (2008 – 2018), Odisha did record a higher actual investments inflow worth Rs 7,521crore in 2014, but for whole year only.
But industrial investment take-off story for Odisha is not all that high-flying in 2018. Odisha that had remained top investment destination till year 2013 has slipped to 9th in the inflow of industrial investment intentions in 2018.
Odisha had recorded a high of Rs 3.2lakh crore in 2012; cut to year 2017 the State recorded investment intentions worth Rs 6, 971crore only. An analysis showed how less than 2 per cent materialisation of actual investments vis-Ã -vis proposed investments had a telling toll on investment inflow to the State during the period 2008-18.
Because, on better actual investment inflow rates, newer States like Telengana and Madhya Pradesh have zoomed ahead of Odisha in securing higher industrial investment intentions over the years recently.
It’s here the mega investment conclaves like ‘Make in Odisha’ play a pivotal role. But data shows in 2016, when State held its first Make in Odisha conclave, the industrial investment intentions were Rs 22,507crore vis-a-vis Rs 24,524 crore in 2015. Interestingly, in 2017, the investment intentions as per IEMs filed totalled to worth mere Rs 6,971crore.
Why investment intentions on down slope for Odisha?
The National Council of Advanced Economic Research’s (NCAER) State of Investment Potential – 2018 has plausible answers. Of four vital investment multipliers – factor driven (land, labour), efficiency driven (infrastructure), growth-driven (economic climate, political stability and governance) and perception driven, the State has to cut a sorry image in multipliers like factor-driven and perception-driven. For instance, Odisha was at bottom in land-related stalled projects, poor land records digitisation, completion of IPC/SLL cases and high LWE rate.
Also, around 42 per cent investors consider raw material availability a problem.