Rs 5.29 lakh crore investments grounded by MoU signed units

Investments of the order of Rs 5.29 lakh crore have been grounded by industrial units that have entered into memorandum of understanding (MoU) with the state government.

Out of 92 MoU-signed units, 43 projects have commenced production while seven others are under various stages of construction. Land acquisition is underway for 27 other projects whereas the balance 15 are yet to take off.

Together, these projects have generated direct and indirect employment for 143,474 people.

The bulk of the investments have been grounded by steel units. Steel companies have invested Rs 1.2 lakh crore. The state government had signed MoUs with 48 steel players out of which 32 have started either partial or full scale production.

Similarly, independent power producers (IPPs) have invested around Rs 40,000 crore. The state government has inked MoUs with 28 IPPs envisaging a total production capacity of around 37,500 Mw with proposed investment of over Rs one lakh crore. Three IPPs- Vedanta Group firm Sesa Sterlite, GMR Kamalanga and Jindal India Thermal Power Ltd (JITPL) have commenced commercial production. Sesa Sterlite has fully commissioned its 2400 Mw (4x600) power project at Bhurkamunda near Jharsuguda. The company has invested Rs 8038 crore on the plant. GMR Kamalanga has commissioned three 350 Mw units of its proposed 1400 Mw power plant at Kamalanga in Dhenkanal district. It has invested Rs 5590 crore. JITPL has put on stream the first 600 Mw unit of its proposed 1800 Mw plant, at Derang near Angul.

Another IPP- Ind Barath Energy (Utkal) Ltd has synchronised its first unit of 350 Mw capacity at Sahajbahal near Jharsuguda.

Among the 204 non-MoU units, 49 projects with a projected investment of Rs 1.54 lakh crore have made no physical progress. On the contrary, 28 projects with a projected investment of Rs 1.58 lakh crore are stuck over land acquisition issues. Besides, there are 119 non-MoU projects with proposed investment of Rs 2.60 lakh crore.

Investors are facing five major problems centred on land acquisition, raw material linkage, environment and forest clearance, water allotment and law and order.

To address land related issues, the government has decided to prepare a stage wise and time bound action plan to dispose off all pending land acquisition proposals. The state is also in the process of setting up land banks to ease land acquisition woes for investors.

The Odisha Industrial Infrastructure Development Corporation (Idco) has filed proposals with district collectors for acquisition of approximately 70,000 acres for land banks. A Cabinet memorandum is under preparation to finalise the cost of such land and the mode of transfer.