Orissa Govt Planning To Float Nri Bond

The Orissa government is collaborating with private bankers and the Union government to float an investment bond for non-resident Indians (NRIs) and other investors.

The announcement was made by Orissa Chief Minister J B Patnaik, who is leading a visiting delegation of state officials and private sector executives to the US, at a conference jointly organised by the India America Chamber of Commerce and the Indian Consulate here Wednesday.

NRIs, despite their patriotic feelings, have expressed concern about the safety of their investments, Patnaik said, and the bond was designed to allay fears of perceived risks.

Addressing investors, Patnaik said Orissa was one of the safest investment destinations and the state was also free of political turmoil.

 

As the Chief Minister of Orissa, I can assure investors, foreign and non-resident Indians, that your investments will be safe and secure in Orissa, he said.

Orissa government officials said the state had over Rs 1,000 crore worth of investments in various stages of clearance and implementation. Highlighting the huge investments made in steel and power, officials said the state enjoyed huge advantages in the production of steel and these would translate into tremendous cost advantages.

Managing Director of Mesco Rita Singh said her company, which had a collaboration with a Chinese company, would soon produce the cheapest pig iron in the world. Our Chinese associates think Orissa is the best location in the world for steel making, she said.

Besides Mesco, Tata Steel is among the major steel companies who are setting up new factories in Orissa.

State government officials also indicated their growth plans in such areas as software and tourism. They said Orissa enjoyed comparable facilities to Bangalore for software developers and had the additional advantage of lower costs.

G S Mishra, managing director of the Orissa State Electronics Development Corporation Ltd, said, Last year, Infosys and Satyam Computers have opened software development centres here and we are encouraging others.

Orissa was the only power-surplus state in the country and now had adequate telecom links, he added.

Officials also spoke of developing some of its sea resorts including Puri on the lines of Pattaya in Thailand.

The Industrial Promotion and Investment Corporation of Orissa Ltd (IPICOL), a government of Orissa undertaking, has signed a memorandum of understanding (MoU) with Asia Stratcon Group, Inc, a management consulting firm, for the development of several industries and for facilitating the entry of multinational corporations into the state.

The memorandum was signed on behalf of IPICOL by its managing director Aditya Padhi and for Asia Stratcon by its director Kartik Kilachand.

Asia Stratcon develops strategies for US companies wishing to make investments in India. Its particular expertise lies in the agro-based sector with special focus on the processed food industry. Its clients have included Kraft General Foods, Westinghouse and Tropicana Inc, which is in the process of marketing its fruit juices in India. Asia Stratcon is based in Old Greenwich, Connecticut.

Another MoU was also signed between two private sector firms Faraday, Inc, based in Tecumseh, Michigan, and NBC-Iswar. The American company is to provide technical knowhow in fire protection services. NBC-Iswar is an Indo-Norwegian joint venture.

The Orissa delegation included 11 government officials and around 20 executives from private sector firms. The delegation is also scheduled to visit Boston and Washington.