Following is excerpted from a report in Business Standard.

With Orissa witnessing a rush of investment proposals in the iron and steel sector, the domestic and overseas steel majors are exploring the possibilities of developing small and medium enterprises (SMEs) around the large units proposed by them.

Tata Steel is developing a six-million tonne greenfield steel project at Kalinga Nagar, the emerging steel hub of the country. The firm has identified business opportunities worth Rs 12,000 crore in the ancillary and downstream units.

“The opportunities for ancillary and downstream units exist in the areas of operations and maintenance, core specialised services, support specialised services, processing and township management, to name a few. There can be different working models for development of local SMEs as ancillaries and downstream units. One such model includes Tata Steel and other steel majors working together with their ancillary partners in Orissa,” said K Shankar Marar, assistant general manager, (steel technology, at Tata Steel’s Kalinga Nagar project.

…  Another steel major, JSL, (formerly Jindal Stainless Limited), is keen on developing an industrial park based on downstream stainless steel industries, spread over an area of 300 acres as a part of its SEZ (special economic zone) in Orissa’s Jajpur district.

The SEZ is being developed at an investment of around Rs 700 crore. JSL has engaged US-based consultant CB Richard Ellis for developing a business plan for the project wherein opportunities for downstream industries will be explored.

The SEZ is set to provide direct employment to 3,800 workers besides generating indirect employment for 1,200 others.

Posco which has announced an investment of about Rs 52,000 crore for a 12 million tonne steel plant near Paradeep is also committed to development of ancillary and downstream units and the steel giant has engaged IIT-Kharagpur for a study on the opportunities that exist in this area.

According to a study conducted by IIT-Kharagpur for Posco India, opportunities for SME entrepreneurs exist in the areas of structural steel, ready mixed concrete, refractory, steel and concrete piles, pipes, propeller shafts and furnace building to name a few.

According to the study, opportunities also exist in other operational areas like steel probes, mould flux, thermos materials, manufacture and fabrication of structures, conveyor belts and electrical equipment repairs.

The study adds that business opportunities worth Rs 320 crore exist in the area of refractory, Rs 44 crore for cement, Rs 2.5 crore in hydraulic hoses and Rs 4 crore in wire rods. The first phase of Posco India’s project would generate 35,728 labour intensive jobs and another 30,420 technology intensive jobs.

… Aarti Steel has already started its efforts for developing SMEs as ancillaries for its steel plant in the state.

“We have sourced items and spare parts worth Rs 37 crore from 47 local partners till March 2008. Aarti Steel plans to develop two forging units adjacent to its steel plant for the benefit of the local entrepreneurs and we have approached IDCO to provide land for these units”, said a senior official of Aarti Steel.

On its part, the Orissa government plans to incorporate a clause at the MoU (memorandum of understanding) level with the private steel players to ensure that the mother industries will make necessary efforts for development of ancillary and downstream units.

The efforts made by the steel units to develop the ancillary units will be monitored by officials like district collectors and revenue district commissioners.

Steelguru.com gives some specifics of the SME/MSE impact with respect to Tata Steel’s Kalinganagar plant.

BS reported that the 6million tonne per annum greenfield steel project proposed by TATA Steel in Kalinganagar will require maintenance support services worth INR 1,200 crore when fully commissioned. These services will be outsourced by the company and are expected to create huge opportunities for the small and medium enterprises in Orissa.

The services to be outsourced include warehousing, machine shop, electrical repairing shop, fabrication shops, electrodes and lubricant suppliers, waste management, mechanized material handling and hospitality among others. Since the maintenance cost is about 4% of the total investment in steel industry, this is expected to create huge opportunities for the small and medium enterprises.

Mr B K Singh VP Orissa project of TATA Steel said that "We will invest about INR 30,000 crore in the Kalinganagar project in phases and will require maintenance support services worth INR 1,200 crore.”

He added that the group will work towards developing the local entrepreneurs and will provide assistance to anyone who wants to be a partner in TATA Steel’s business. He added that TATA Steel will give the first right of refusal to local industries in the maintenance support services.

Following is an excerpt from a report in Business Standard.

The Infrastructure Leasing and Financial Services (IL&FS) will prepare a project report for setting up of a mega food park at Malipada near Khurda, about 30 km from Bhubaneswar. It will study the feasibility, plan for infrastructure within the park, formulate promotional and marketing strategies among others. …

The latest initiative of the state government assumes importance as the Union government is encouraging establishment of food processing parks and has already announced a grant of Rs 1500 crore for 30 mega food processing parks in the country by the end of 2008.

Though none of the proposed mega food parks in the country has been notified yet, the state government will send a proposal to the Union ministry on setting up of a food processing in Orissa, said the sources. In case the Union government does not approve the state’s proposal, the state government intends to go on its own to set up a mega food park at Malipada, sources added.

The state government has already identified 80 acres of land at Malipada for this purpose. It will be handed over to the state owned Industrial Infrastructure Development Corporation (Idcol) by the district collector of Khurda and the process will be completed within 45 days.

The Union minister for food processing will be invited by the state government to visit the identified location towards the end of November. Besides, steps will be taken to develop a chain of cold storage between Cuttack and Bhubaneswar.

This was decided at a review meeting on the food processing industries in Orissa chaired by the Development Commissioner (DC) R N Bohidar recently.

As per the Government of India (GoI) scheme, the mega food park need to be built on a minimum area of 100 acres and maximum area of 100 hectares and the grant can be availed in two installments.

Khurda will be a preferred location as it will be closer to the bio-technology park being set up at Andharua near Bhubaneswar which will add synergy to the project.

Sources said, the plans for the development of terminal market or distribution centres at key locations like Choudwar, Berhampur and Sambalpur along with the supply chain of horticulture products in the catchment areas are being worked out by the department of horticulture.

That apart, multi-product cold chain network and the Inland Container Depos (ICDs) at Kalinganagar and Jharsuguda by CONCOR and similar facilities proposed at other places like Rourkela, Bhadrakh and Angul are likely to give a fillip to the sector.

In view of the potential in the food and the agro-processing sector, some sub-sectors have been identified by the state government for development. This includes rice, cashew, spices, mango, marine and fishery, diary and maize.

… According to the official figures, there were 92,417 micro and small enterprises (MSEs) in the state by the end of 2006-07 with an investment of about Rs 2825.16 crore. Out of it, 21,298 units were in the food and allied sector with an investment of Rs 803.78 crore. While the MSE sector accounted for about 5,56,908 employment, out of it the food processing sector engaged 1,10,329 persons.

 

This appears in various news media. Following are excerpts from a report in Kalinga Times.

… IBM India on Wednesday announced the launch of its SMB operations in Bhubaneswar .

This expansion will enable IBM to provide better support to SME clients in and around Bhubaneswar and help IBM’s customers leverage IT for business growth.

In addition, mid-market businesses will also benefit from the new IBM Express Advantage initiative that provides SMEs with a unified end-to-end approach to help them innovate and expand.

…Earlier this year, IBM had announced a plan to extend its presence to 14 cities outside of the key metros, and has successfully launched operations in Bhopal , Chandigarh , Coimbatore , Cochin , Goa, Jaipur, Jamshedpur , Lucknow , Nagpur , Nashik, Surat , and Vizag. It will look to expand into Ludhiana and Madurai as well.

… IBM’s SME offerings have already been accepted in various industries and organisations. Some existing customers in Bhubaneswar include, Government of Orissa IT Department - OCAC, Dept of Treasury Orissa, Paradeep Phosphates Ltd, Vedanta Alumina Ltd, Kalinga Institute of Industrial Technology, Biju Patnaik University of Technology, and Utkal University to name a few.

Odihsa.com and Tathya.in report that a delegate from Orissa is going for a roadshow in the Punjab-Haryana area to attract investors for medium and small enterprises. The team will be lead by Dr. Ashok Dalwai, the current industry secretary of Orissa.