DFID scheme to boost private investments

The Orissa Modernizing Economy, Government and Administration Programme, a scheme being taken up a cost of Rs 152 crore with funding from UK-based Department for International Development (DFID) is expected to boost private investments in MSMEs (micro, small and medium enterprises) and social infrastructure.

It also aims at capacity building of the state officials for revenue mobilization and effective expenditure management besides improving service delivery. The programme implementation is on and is expected to be completed in 2016. This programme has identified the MSME sector as one of its thrust areas considering the sector's job creation potential and DFID, in addition to skill building, will also support the state government in implementation of its MSME Development Policy.

Other areas of DFID intervention would be supporting investment promotion and facilitation activities for enhancing investment in industries and infrastructure in the state and strengthening single window system at the state and district levels.

DFID would support creation of an MoU (Memorandum of Understanding) tracking facility for the industries department and also back development of clusters for small and medium enterprises as ancillary support for larger industries in the state to promote broad basing of industrial development in the state.

For enhanced coordination among Industrial Development Corporation of Orissa (Idco), Industrial Promotion and Investment Corporation of Orissa Ltd (Ipicol), State Level Single Window Clearance Authority (SLSWCWA) and District Industrial Centres (DICs), DFID would develop broader strategy and action plan. The development agency of the UK government would also facilitate PPP (public private partnership) policy and strengthen regulatory and institutional framework to facilitate private industrial and infrastructure investments. Moreover, DFID would facilitate compliance on environment and social safeguards through capacity building of the relevant institutions and promote skill development through private participation.

In the area of capacity building of the state government for revenue mobilization, DFID would support policy, regulatory and administrative capacity building for transition from VAT (value added tax) to Goods and Services Tax (GST).

Besides, DFID would modernize and streamline internal audit in focal departments, modernize the financial rules of the Orissa government, facilitate update statutes and regulations for modernizing procurement systems and conduct public expenditure review of priority departments to identify priority improvements in financial management at local level.

Under its OMEGA operational plan, DFID would identify areas for improving planning, implementation and delivery of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and public distribution system at state and district levels.

In addition, DFID is implementing the Orissa Health Sector Reform Programme at a cost of around Rs 800 crore. The programme implementation has started from 2007 and is scheduled for completion by March 2016. Nearly Rs 400 crore has been spent under this programme wherein the thrust area is sectoral budgetary support for health, nutrition, water and sanitation.

Two major DFID funded programmes are on the pipeline- Orissa Girls Incentive Programme (OGIP) and Orissa Support to Urban Infrastructure (OSUI).

OGIP has been designed to enable 250,000 SC/ST girls to complete secondary education. OSUI, on the contrary, is aimed at improving cities' infrastructure particularly in low income settlements to enable them to attract investments and develop them as engines of inclusive economic growth.