Orissa rolls out red carpet for ITC

Though agro-processing has been identified as a thrust area by the government, interests and investments are yet to be generated in this space. Till date, of the 18 companies approached by the state government in this sector only two have responded positively but with riders of being granted incentives which has proved to be a headache for the government.

The companies approached are Godrej Agrovet, Dabur, Nestles, Heinz Agro, Frito Lays, Pepsi, Britannia, Bikaneriwalla,.Parleys, Pioma, Cadbury's, MTR, Vadilal, Nutrine, Heritage Foods, Arihat Foods and OM Agro Freeze. Till now, the state has only received response from Heritage Foods and Parleys with the former planning a move in the dairy sector picking up a fight with the state run milk body OMFED and the latter looking for specific incentives from the state government as their corollary for coming to Orissa.

ITC gave a presentation on its intention and company profiles almost 4 months ago at the state headquarters. But since then there has been no specific response from the side of the tobacco and FMCG major leaving the Orissa government wondering as to what has stopped it from making an entry into the state.

Orissa government sources said ITC has sent an annual report and a company profile but is yet to spell out investments or plans for the state. The Orissa industries department along with the single window arm Industrial Promotion and Investment Corporation of Orissa Limited (IPICOL) is particularly interested in bringing ITC to the state.

The letter wooing ITC to invest in the state was sent requesting the company to do the needful by filling up the combined application form for infrastructure building like land and water. Says a highly placed state industries department official, "We were sure that ITC will shortly make its entry into Orissa.

Recently the ITC authorities had also made it known through the newspapers but we are yet to witness a positive outcome". What makes the Orissa government apprehensive is that ITC might be having a higher degree of commitment of making investments in West Bengal than coming to Orissa.

According to a Orissa government official "We have no objections if ITC is in West Bengal - let it also consider us as a venue as we are eager to extend all help to the mega FMCG company". State government officials said, ITC's ventures in Orissa would most likely be in areas of contractual farming aggregating farmers for a better and wiser rural integration providing opportunities, value-addition and job guarantees in the agro-processing sector.

ITC's rural retail initiative of E-Choupal will impact village consumerism. The state is also ready to provide ITC land for tobacco cultivation if required. ITC's entry to the state by providing rural integration could be in the form of manufacturing hand-rolled agarbatis and processed food. In its bid to include the mega companies in the agro-processing space, the state industry department is currently trying to develop a resource mapping chart for added opportunities and road shows making it a vehicle for value addition and employment.