New IPR to lure investment in port-based parks

State is in the process of giving final touch to draft IPR, which is expected to be ready by end of this year

In its upcoming revised Industrial Policy Resolution (IPR), the Odisha government will include attractive proposals for investors to participate in development of port-based parks, said the state industry minister.

“Ports are not just a gateway for import and export of raw materials. We need to set up value added industries near ports. In our new industrial policy, we will provide incentives for development of port-based parks,” said Debi Prasad Mishra, state minister for Industries and Mass Education at a seminar called Logistic Millenium 2014, organised by Odisha chapter of Confederation of Indian Industry (CII) here, today.

The state government is in the process of giving final touch to draft IPR, which is expected to be ready by the end of this year. It is revisiting the IPR for the second time since 2001. IPR was revised last in 2007. The aim and objective of the IPR is to leverage the concentration of metal industries to boost the manufacturing sector.

To give an impetus to the MSME (micro, small and medium enterprises) sector, the policy resolution of 2007 focused on undertaking a special drive for modernisation of these units, facilitating greater flow of industrial credit, providing marketing support, rehabilitation of potentially viable sick industries and development of special industrial parks for ancillary and downstream units.

The state government has already provided land near ports to several industries for setting up of manufacturing and value added units such as edible oil refinery of Cargill India at Paradip and ferrochrome unit of Tata Steel near Gopalpur. State-run Odisha Industrial Infrastructure Development Corporation (Idco) is in the process of identifying land for an imported wood cluster near Paradip port. To take advantage of the 480 km long coastline facing Southeast Asian countries, the state government has identified 13 locations for development of non-major port.

While Gopalpur and Dhamra have already become operational, the state government has approved a proposal for setting up of a minor port at Astaranga in Puri district by Hyderabad-based Navyug Engineering Ltd. The initial port capacity is pegged at 25 million tonnes per annum (mtpa) with projected investment of Rs 7,417 crore. The port capacity will be eventually scaled up to 70 mtpa later.

An MoU (memorandum of understanding) has also been inked with Aditya Birla Group owned Essel Mining & Industries Ltd for establishment of a captive port at Chudamani in Bhadrak district. Other locations identified for development of port projects include Jatadhari Muhan, Bichitrapur, Palur and Kirtania to name a few.