Odisha shifts focus to non-core industries

With a number of big ticket mineral based industries in the state failing to take off due to problems of land acquisition and raw material linkage, the state government seems to have shifted its focus to non core industries.

“The industrialists are only keen at establishing mineral based industries here. They are not showing interest to set up any other industries,” said state industries minister Niranjan Pujari.

Pujari was speaking at the valedictory function of 17th Enterprise Odisha organized by Confederation of Indian Industry-Odisha here.

He said, “We have many proposals for setting up of steel industries but few are showing interest to set up units in food processing, solar power and automobile sector. The government is lobbying hard to establish food processing industries here.”

The minister assured to provide support to industries across the sectors.

“No industry, be it small, large or medium scale has come to us for any facilitation. We assure to provide all type of facilities to all industry ranging from health to textile,” Pujari added.

On providing raw material to big tickets projects like Posco, Vedanta, the minister said the government is trying its level best to facilitate supply of raw materials to them and willing to help them to establish large industries in the state but declined to elaborate further as the matters are subjudice.

It may be noted, steel sector in Odisha is going through tough times following allegations of mining scam and subsequent investigations by Justice MB Shah Commission into such irregularities. Most of the steel manufacturing companies are facing closure due to non-availability of adequate raw materials. Big ticket projects like South Korean steel producer POSCO and Vedanta Aluminium Ltd (VAL) are yet to secure their raw material requirements.

VAL had already served notice to the state government intending to shut its one million tonne refinery at Lanjigarh in Kalahandi district by December 5. Presently, VAL is running its refinery at 60 per cent capacity on bauxite supplies from Gujarat Mineral Development Corporation (GMDC) and also from Balco's Kawardah mines in Chhattisgarh.