Monday, July 24 2006 12:10 Hrs (IST) - World Time -

Orissa: Orissa has been hugging headlines these days, not for wrong reasons ( poverty, unemployment, starvation death, sex scandal etc) but, as the most favoured investment destination in India.

Not to mention the substantial space being occupied in the world media as well, for the above reason for quite sometime now. Recently, Orissa has been able to attract huge investments in various sectors ranging from Steel to Alumina, Information Technology (IT) to Power, including Steel tycoon Laxmi Niwas Mittal, IT major Narayan Murty's Infosys, Wipro and latest to join the bandwagon is Industrialist Anil Agarwal promoted 'Vedanta Resources' which inked an MoU with Orissa Government on the 19th of July to set up a multi-disciplinary Vedanta University, of international repute, in the state with an investment of Rs.150 billion in phases.

When all these actions taking place, how a person like Reliance-Anil Dhirubhai Ambani Group (R-ADAG) chairman, Anil Ambani stay behind.

Just two days later (21 st July 2006 ), he announced an investment of Rs 61,500 crore in the state, in energy, IT and health sectors. On the same day, the R-ADAG and the Orissa government signed a joint communique pledging the investments in the state.

More interestingly the R-ADAG's investment plans of Rs 61,500 crore left two other major investments planned in Orissa-Posco's largest ever FDI in India with Rs 52,000 crore and World's number1 Steel company's Rs 40,000 crore plan for steel plant far behind. It's more than the mega plans indeed.

The R-ADAG group will set up a 12,000 MW coal-fired power plant at Hirma in Jharsuguda district with an investment of Rs.50,000 crore. If we believe Ambani's claim, the Hirma project will be the largest single location thermal power project in the world surpassing South Africa's 4300 MW power station.

"I have no doubt in my mind that Orissa, with its coal reserves, will become the power capital of the entire country," says Ambani proudly.

The Reliance Health Ltd, a subsidiary of the Group, has proposed to set up a 'Health city' in Bhubaneswar with all the super-special facilities of health care, medical education and research centers with an outlay of Rs.500 crore.

When this project (Health city) fully commissioned the poor people of Orissa won't have to rush to other major cities for better health services.

So why Orissa fitting in the huge investment plans of big investor leaving many other competing states at bay?. Is it the safest place to invest in long run? Are they considering Orissa as the golden goose for them? Could Orissa probed to be the golden goose for them in long run?

Orissa has substantial reserves of many minerals, like coal 51,571 million tonnes ( 24.37 per cent of the national deposit), dolomite 434 million tonnes (10 per cent) and limestone 1,032 million tonnes (1.36 per cent), 70% of India's Bauxite and 35% Iron ore require reserved for all the major industry.

Orissa is also exploring possibility in attracting investors to exploit its rich bio-diversity. Orissa government has planned its strategies to open up its 480-kilometre-long coast for investors for applications of different marine products.

The state government has agreed to facilitate setting-up of a National Marine Biodiversity Park at Konark, famous for Sun Temple and another Biotechnological Park in the outskirts of Bhubaneswar.

"Huge investment is pouring in to the state and job opportunity will go up with this investment Now Orissa is open for business and it will witness corporate culture and new business environment in the days to come," he said.

After announcement of these mega plans the real estate will witness a boom shortly. And these small and medium industries is eyes to cash on the boom it is taking shape slowly" says a real estate consultant based in Bhubaneswar.

Availability of cheap labour force puts Orissa ahead of other states in making Orissa a investment destination for many major player including Tata, Ambani, Posco and Mittal says a senior official of Posco, who did not want to be named.

However, Orissa is early on in this new, more optimistic era. Orissa is still at a crossroads in its development.

The effort of the Orissa government to create economic opportunity for its State is still faced by an equal but opposite force of resistance of the politicians. Still more needs to be done to enhance Orissa as a destination for future investment.

More reform needs to be initiated in a range of areas, in retail, agriculture, insurance, banking and infrastructure as it has huge revenue potential to extract. This is one of the many reasons why the investors anxiously coming to Orissa to tap these unexplored possibilities says a investment analyst.

As it has a long sea shore and all potential to turn smaller ports into bigger one, economic links could be established easily with Southeast Asia, in Singapore and Indonesia, potentially making Orissa the gateway for the ASEAN countries into India.

If Orissa will able to fulfill this vision, it could become the Guangzhou or Shanghai of East India and it will open up new business prospect in both short term and long run. Orissa is indeed a golden goose for investors.

Many enterprenuers sensing a retail sector boom as well in Orissa saying if Orissa becomes a center for investment in retail sector as well, it would have a significant positive impact on the State as a whole. Both supply of Quality goods, and services would improve.

Consumers would have more choice and for suppliers it would provide greater efficiencies and economies of scale. Inclusion of agricultural products would spark investment to improve cultivation, storage and distribution. Produce that is now rots in fields because of poor distribution networks would reach the consumers and farmers would benefit.

However, more reforms are necessary to really unleash the State's potential. If so much has been accomplished with limited reform, no one could deny that more reform would further fuel the engine of growth in Orissa.

It needs investment in infrastructure: large multi-lane highways, overpasses, bridges, additional ports, and airports - the whole range of networks that a modern State needs. More importantly these infrastructure projects need to be large and visionary in scope to create the potential for more investment and higher growth rate.

The addition of a few two-lane roads is not sufficient to create real economic growth the State needs to 'Think Big' for big growth.

Orissa has all natural resources, to attract investors.

It seems Orissa also have a vision of creating a dynamic region of economic growth in the East.

If Orissa government uses it's natural resources judiciously these huge investments could benefit both investors and the state and will able to turn this poor state into East India's economic powerhouse, otherwise the golden goose will die before yielding golden benefit to the people of Orissa.