The above headlines is partly an excerpt from a Telegraph report. Following are excerpts from an Economic Times report by Nageswar Patnaik.

Orissa is currently implementing project proposals worth of Rs.3,06,575 crore, about 32.6% of total investment proposals received by the state government, which is higher compared to other states, according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Releasing a Paper titled ASSOCHAM Strategy : “Creating and Sustaining Growth Momentum in Orissa” here on Wednesday at a press conference here by Assocham President, Swati Piramal and Secretary General, D S Rawat, however, said at the end of September 2009, the state had 486 live investment projects worth Rs 9.4 lakh crore.

“This is 27% higher than the live investment reported as on September 2008”, Dr Piramal said adding that the respective shares of electricity, manufacturing, mining and services sector in total live investment are respectively 42.8%, 34.7, 56.6% and 6.3%.

… Explaining the reason for the state having more than 65% of investment proposals at announcement stages, the Paper clarifies that lower implementation rate of projects, of late, has become a phenomenon across states in India. “ …

According to the Paper, more than 10% of total investments

announced by both government and private sectors in India as on March 2009 have gone into Orissa. The state has attracted Rs 9,28,834 crore out of a total of Rs 88,71,867 crore announced in India. The state’s share was mere 0.87% in the total investment undertaken by different government sources. “In contrast, the share of Orissa was 13.29% in total investment made by the private sector in India. All most all of the investment that Orissa has seen has come from the private sector while government sources accounted for insignificant amount (Rs 500 crores out of Rs 9.28 lakh crores)”, it adds. .

The Assocham has emphasized on the need for infrastructure development in the state for faster pace of economic growth. “Good infrastructure facilities would not only reduce the transaction costs of the established economic agents but also make the State an attractive destination for new investments. The critical elements of infrastructure development in India are leveraging public resources to access a large pool of private resources and providing an environment that help take advantage of liberalized policies”, the Paper argues.

I have not been able to locate the report from the ASSOCHAM site. If anyone finds it please leave an URL in the comment. Besides the positive news in the above paragraphs, one issue to note is that Odisha is only getting 0.87% of the government investments. I wonder what the number would be if it is narrowed to central government investment. My guess is that the number would be similar. Odisha must make efforts to get its fair share with respect to central government investment, and not just in mining and metal sector. In that regard in http://www.orissalinks.com/orissagrowth/archives/3298 we listed the central PSUs in Odisha and India.

 

Business Standard focuses on a different aspect in the ASSOCHAM report. Following is an excerpt from the Business standard report.

 

Citing lack of new age industries in Orissa, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) today called upon the Orissa government to focus on the development of IT, real estate and service sectors.

It also laid emphasis on the development of human resources to bridge the skill gap and improve the employability of manpower in the state.

it strongly pitched for the development of infrastructure, focus on sunrise industries like pharmaceuticals, small and medium industries, adequate importance on climate change and global warming, removal of regional inequalities particularly in KBK districts and connecting the ports with the industrial corridors. Similarly, promotion of employment through cluster development, setting up of ancillary industries, linking industries to supply chain and creation of opportunities for self-employment need to be given priority. …

ASSOCHAM has suggested that the land acquisition need to be left to the buyers and sellers of land and the role of the state should be that of a facilitator only. The project proponents have a role to rehabilitate all those families being uprooted for a project.

On Orissa specific initiative, Rawat said, an Orissa Desk has been set up in Delhi to focus on the human resources development and the development of food processing industries. Berhampur University has been roped in as the partner for the purpose.

The desk is working on the growth of agriculture and food processing industries in the state and drafting Orissa Vision-2020 to provide a road map for the development of the state. An investment seminar called “Orissa Calling Investment”, is proposed to be held in Delhi in October this year to promote investment in the state, he pointed out.