Orissa seeks Assocham, Ficci help on downstream industries

To give a boost to the ancillary, downstream and food processing industries in Orissa, the state government would hold discussions with industry chambers like Associated Chambers of Commerce and Industry of India (Assocham) and Federation of Indian Chamber of Commerce and Industry (Ficci).

While suggestions will be sought from Assocham on development of food processing industries, the talks with Ficci would revolve around promotion of ancillary and downstream industries.

The talks with these industry bodies are slated to be held in February and March this year, sources said.

Though the state government has signed MoUs with 79 industries in sectors in steel, aluminium, power and port, the process of ancillarisation and downstream activities are yet to take off.

While the selling prices of manufacturing goods are same every where, the ancillary and downstream industries in the state do not enjoy any price advantage in sourcing raw material from large industries. This, according to the experts, is acting as a stumbling block on the growth of ancillary and downstream industries.

“The government intends to promote the downstream and food processing industries in the state as these sectors have high employment potential. Talks will be held with Assocham and Ficci to evolve a strategy”, Saurabh Garg, secretary, industries, Orissa government told Business Standard.

It may be noted, RSB group is coming up an auto component complex at Mania near Tangi at an investment of Rs 365 crore while Vedanta Aluminium Ltd (VAL) proposes to set up a aluminium downstream park at Jharsuguda.

Similarly, Jindal Stainless Ltd (JSL), Adhunik Metaliks Ltd.(AML) propose to set up stainless steel downstream parks in the vicinity of their projects in the state. The total investment envisaged by JSL for this activity is estimated at Rs 704 crore and the same for Adhunik Metaliks is pegged at Rs 286 crore.