Embed Size (px)
Citation preview
An update o n In dian Eco n o m y w ith
Spe cial Fo cus o n Odisha
India: A Large Middle Income Economy
• India is the third largest economy in terms of Purchasing Power Parity
• In nominal terms, India’s GDP has increased rapidly over the past 15 years from $450 billion in
2000 to over US$ 2 trillion currently
• India’s Per Capita Income is estimated at US$ 5,855 compared to US$ 12,880 for China and
US$ 54,597 for the US.
Source: IMF WEO April database
3
Indian GDP Composition is Undergoing Change
Source: National Accounts
India has decisively moved to a Services driven economy
Agriculture
16%
Industry
23%Services
61%
GDP Composition 2014-15
4
GVA at basic prices
GVA at market prices
India’s GDP Growth Rate
Source: CSO
India has one of the youngest populations in the world
* Estimates assume no change in mortality, fertility, migration etc.
Source: United Nations World Population Prospects: 2012 Revision
6
And a growing middleclass
Number of Households (in million)
Year The Poor Middle Class The Rich
Annual household income (Rs.) < 200,000 200,000 – 1,000,000 > 1,000,000
1995 160.1 4.6 0.3
2005 192.4 13.3 1.2
2015 180.1 60.6 3.3
2025 143.0 128.0 9.5
Source: National Council for Applied Economic Research/ McKinsey Global Institute
A growing young population and the resultant changes in the
savings and investment patterns would be advantageous for
the country's economy going forward
7
Trends in India’s International Trade
*Including Hong Kong
Source: Ministry of Commerce and Industry
China*
14.7
Saudi Arabia
6.3UAE
5.8
Switzerland
4.9USA
4.9
Rest of the
World
63.4
Top 5 Countries for Indian Imports
(% share )
Imports
$ 448 Bn
2014-15
8
India expected to be the fastest growing country in 2015 and 2016
1 Output data and forecasts for India are on fiscal year basis and at market prices (base year-2011/12)
Source: IMF, World Economic Outlook, October 2015
Global Growth rates- World Economic Outlook2013 2014 2015
Projection
2016
Projection
World 3.4 3.4 3.1 3.6
Advanced Economies 1.4 1.8 2.0 2.2
USA 2.2 2.4 2.6 2.8
Euro Area -0.4 0.9 1.5 1.6
Japan 1.6 -0.1 0.6 1.0
Emerging and Developing Economies 5.0 4.6 4.0 4.5
China 7.7 7.3 6.8 6.3
India1 6.9 7.3 7.3 7.5
Brazil 2.7 0.1 -3.0 -1.0
9
Odisha – Strengths and Policy Enablers
New Industrial Policy Resolution
MSME Development Policy
ICT Policy
Food Processing Policy
PPP Policy
Excise Policy
Policy Enablers
Stable Government
Vast Natural Resources
Robust Physical, Social and Urban
Infrastructure
Close proximity to South-East Asian
Markets
Competitive and skilled workforce
Vibrant Information & Communication
Technology Industry
Strengths
• The state government is working on improving the ease of doing business in the state through a tripartite
agreement with CII and Lee Kuyan School of Public Policy, Singapore
• The state has developed Vision 2030; a blueprint for comprehensive development of Bhubaneswar –
Cuttack - Khurda Urban Complex
• Odisha offers significant location advantage for domestic sales and export markets, and is connected to
Golden quadrilateral with proximity to the Kolkata-Jamshedpur automotive cluster
10
Odisha - Snapshot
• Odisha is one of the most mineral-rich states in India
• During 2014-15, the state had 173 mines
•Odisha is one of the favored investment destinations for both domestic and international
iron and steel players, while the state accounts for 42.27 per cent of country’s iron ore
deposits
•The state is home to a large number of MSME units. The state is amongst the top ten states
accounting for the highest number of MSME enterprises.
•Strong power sector: Odisha is the first state in India to have undertaken reform and
restructuring initiatives in the power sector. As of June 2015, the state had a total installed
power generation capacity of 9,036.36 MW.
•The state has strong tourism sector: In 2005-06, the total tourist arrivals in the state were
4.7 million which reached 10,5 million during 2014- 15.
Parameter Odisha All States
Economy 2014-15 2014-15
GSDP as a percentage of all states’ GSDP 2.5 100
Average GSDP growth rate (%) 7.32 7.3
Per capita GSDP (US$) 1,167 1,389.61
Investment
FDI equity inflows (US$ billion)(till may 2015) 0.398 248.5
Outstanding investments (US$ billion) 189.1 2,414.20
Industrial Infrastructure
PPP projects (No) 45 1,409
SEZs (No) 4 347
Odisha - Snapshot
Primary
23%
Secondary
23%
Tertiary
54%
2004-05
Primary
29%
Secondary
23%
Tertiary
48%
2014-15
Odisha – Percentage distribution of GSDP
Source: Economic Survey of Odisha 2014-15
During 2004-05 to 2014-15, the primary sector recorded the highest CAGR (14.3
per cent), followed by the secondary (11.4 per cent) and tertiary (14.3 per cent)
sectors.
India – Recent Policy Announcements
• Make in India: PM Modi’s signature initiative that’s seeks to make India a manufacturing
powerhouse. The initiative contains a raft of proposals designed to get local and foreign
companies to invest in the Indian manufacturing sector. With a vision of zero defect and zero
effect, this initiative seeks to ensure that none of our exports are returned to us or have a
negative impact on the environment.
The following programmes will support the Make in India vision:
- ‘Skill India’ ‘where the youth can acquire relevant skills that will not only help them in
getting jobs but also create jobs.
- ‘Digital India’ where India can use its prowess in IT to enhance competitiveness of the
nation and create an enabling investment climate though emphasis on e-governance, e-
healthcare, e-education covering both urban and rural areas
• Jan Dhan Yojana: To promote financial inclusion, the PM has envisioned this scheme in
which the poorest citizens will be connected to the facility of bank accounts and will be given
insurance through debit card for up to Rs. 1 lakh.
• Swach Bharat Abhiyan: Based on a vision of a clean India, this campaign aims to provide all
schools with toilets and separate toilets for girls. The PM has urged every Indian to ensure
that every road, school, office, locality and neighborhood is clean.
14
India – Recent Policy Announcements
• More openness to Foreign Investments: FDI limit in the defence and insurance sector was
enhanced to 49% from 26% previously and 100% FDI was allowed in railway infrastructure and
medical devices sector. Real estate benefitted from easing FDI norms in the construction
sector. Also, recently a composite cap has been implemented on FDI and the distinction
between FII’s, NRI’s and other FDI has been done away with.
• Re-capitalization of PSU Banks: The government has decided to infuse PSU banks with
Rs.70,000 crore, over a span of 4 years, for their capitalization and to help them meet the Basel
III norms. The banks will receive Rs.25,000 cr each in FY16 and FY17 and Rs.10,000 cr each in
FY18 and FY19.
• Non-adversarial and investor friendly Tax system: GST set to be rolled out by April 2016 and
GAAR has been deferred by another 2 years. The government has also proposed lower
corporate tax rate from 30% to 25% and exempted FPI’s from paying MAT.
• Easing the regulatory environment for doing business: The government has recently launched
E-biz portal, which provides approvals for 14 regulatory permissions at one source. Also, to
improve business environment, government has set a timeline for clearing applications,
enabled online application for Industrial License and IEM’s and has proposed setting up a
comprehensive Bankruptcy code, corporatization of ports and replace the system of multiple
prior permission with a pre-existing regulatory mechanism.
• Also, by making auctions the sole method for granting mineral concessions and mining leases
the government has been able to take a step towards inculcating transparency into the system.
15
India – Strengths & Opportunities
Strength• Largest Democracy in the world
• Strong & independent Judiciary
• Robust Regulatory & Fiscal laws
• Stable and low cost economy
• Robust Banking and credit system
• Strong reserve of natural resources.
• Fast growing services sector - index of a
maturing economy
• Youngest population in the world with a
large pool of skilled labor
Opportunity
• Huge rural, agricultural and MSME sector with great potential for development
• Growing Private Consumption
• Significant investment planned in the infrastructure.
• Growing recognition of “Make in India” in global market
16
Bilateral trade
YearUK Exports
to India
% change
from Jan-
September
2014
UK
Imports
from
India
% change Total
% change
from Jan-
September
2014
India’s
Balance
of Trade
2010 4017 +36.49 5446 +25.86 9463 +30.16 1429
2011 5488 +36.61 5868 +7.74 11356 +20.00 +380
2012 4567 -16.78 6010 +2.41 10577 -6.85 +1443
2013 5118 +12.06 6186 +2.92 11304 +6.87 +1068
2014 3893 -23.93 6566 +6.14 10459 -7.47 +2673
Jan –Sept
20153039 +30.37 4635 -3.7 7674 +7.35 +1596
Major exports from India to UK: garments and textiles, machinery and instruments, petroleum
products, footwear and leather, manufactures of metals, gems and jewellery, engineering goods,
transport equipment and parts, spices, drugs & pharmaceuticals and marine products
Major exports from UK to India: machinery and equipment, ores and metal scraps, precious and semi-
precious stones, silver, metalliferous, aircrafts and parts, beverages and spirits, machinery, engineering
goods, and other professional instruments other than electronics, non-ferrous metals and chemicals
INVESTOR INDIAN COLLABORATOR
Cairn Holding Cairn India Limited
HSBC Bank PLC and Terminals
Serco Intelenet
HSBC Bank PLC Reliance Holidays and Resorts India Ltd
Castrol Ltd Castrol India Ltd
Ecom Communications Ltd Himachal Futuristic Communications Ltd.
HOC Group Plc BOC(I) Ltd.
Standard Chartered BankStandard Chartered Investment and Loans
Ltd.
ENI () Holdings Plc Hindustan Oil Exploration Company Ltd.
JP Morgan International JP Morgan Security Pvt Ltd
Major UK investors in India
Source: DIPP, Ministry of Commerce and Industry
Indian Investments into UK
India continues to be one of the largest source markets for FDI projects in the UK. According to the
latest figures released by the UK Trade and Investment (UKTI) in their ‘2014/15 Inward Investment
Annual Report’, India undertook 122 FDI projects in 2014-15 in the UK, marking an increase of 65
per cent over last year and making it the UK’s third largest source of FDI, accounting for over 9,000
new jobs. The UK attracts more Indian investment than rest of the EU put together.
About CII
About CII
Founded over 120 years ago, CII is India's premier business association. Its a non-government, not-
for-profit, industry led and industry managed organisation, playing a proactive role in India's
development process. With 66 offices, including 9 Centres of Excellence, in India, and 8 overseas
offices in Australia, Bahrain, China, Egypt, France, Singapore, UK, and USA, as well as institutional
partnerships with 312 counterpart organizations in 106 countries, CII serves as a reference point for
Indian industry and the international business community.
Mission
CII works to create and sustain an environment conducive to the growth of industry in India,
partnering industry and government alike through advisory and consultative processes.
Membership
CII has over 7900 members, from the private as well as public sectors, including SMEs and MNCs,
and an indirect membership of over 200,000 enterprises from around 240 national and regional
sectoral industry bodies.
19
In conclusion
The overall strong economic fundamentals and the recent policy
reforms announced by Government reflects that in the long run,
The Indian growth story remains on course
India is expected to be the fastest growing country in
2015 and 2016
20
Thank you
21
Od is ha - New Op p o r t u n it ies
Od is ha - The Pr efer r ed
In v es t m en t Des t in a t io n
Od is ha
• Located on the east coast of India, Odisha is one of the 29 States
• 11th populous State with 42 million people
• 9 th largest State with an area of 155,707 sq. km. covering 30 Districts (Administrative units)
• Educational and Cultural capital of the East
Our Partn e rs fro m
UK
25
Vis io n
To b eco m e t he in v es t m en t d es t in a t io n
o f cho ice b y co n t in u o u s ly cr ea t in g a n d
d e liv er in g o u t s t a n d in g o p p o r t u n it ie s
fo r b u s in es s g r o w t h , fo s t er in g a ll-
r o u n d s o cio -eco n o m ic d ev e lo p m en t fo r
t he s t a t e a n d it s p eo p le .
Record 4 term s of uninterrupted leadership
w ith reliable and predictable Policies
Ranked the Second Best Perform ing Chief
Minister of India*
Ab le & St a b le Lea d er s h ip
Shri Nave e n Patn aik
Chie f Min is te r,
Odisha
* NDTV
26
r a n k in St a t e
o f St a t es
R a n k in g
In d ia To d a y Gr o u p
3r
d
Pr efer r ed In v es t m en t Des t in a t io n
2 n d
m o st e m plo yable
State fo r
En gin e e rsNatio n al
Em plo yability
Re po rt, 2 0 15
3r
d
3 rd
m o st pre fe rre d
in ve s tm e n t
de s tin atio n in
th e co un tryASSOCH AM
5 th
ran k in State o f
th e State s
ran kin gINDIA TODAY
GROUP
r a n k in St a t e
o f St a t es
R a n k in g
In d ia To d a y Gr o u p
18
% sh are o f In dia’s
FDI pro po sals
TIMES OF INDIA
27
Od is ha o n a g r o w t h t r a ject o r y
GSDP Gro w th Rate o f Odisha (Actual an d Pro je cte d)
2 2 2 3 7
3 3 0 2 9
4 9 2 2 7
59 2 2 9
0
10 0 0 0
20 0 0 0
30 0 0 0
4 0 0 0 0
50 0 0 0
6 0 0 0 0
70 0 0 0
2 0 0 6 -0 7 2 0 0 9 -10 2 0 12 -13 2 0 14 -15
Pe r Capita NSDP (at Curre n t
Price s ) o f Odisha ( INR)
In dia
Odis ha
2 0 10 - 112 0 14 - 15
2 0 19 - 2 0
8.9
7.3 7.7
5
9.2
8.8
12
.0
* in cludes Quarrying, Min in g, Man ufacturin g an d
Co n structio n
3 0 .5%3 3 .50 %
10 .0 %
15.0 %
20 .0 %
25.0 %
30 .0 %
35.0 %
4 0 .0 %
In dia Odish a
Co n tributio n o f In dus try to
GDP/ GSDP
28
Ea s t er n Ga t ew a y t o t he ASEAN r eg io n
Net w o r k o f
10 ,0 0 0 k m o f
Na t io n a l a n d
St a t e h ig hw a y s
co n n ect in g t he
h in t er la n d o f
r es o u r ce- r ich
r eg io n s a n d
m o t her p la n t s t o
la r g es t p o r t s o n
t he ea s t co a s t fo r
ea s y a cces s t o t he
m a r k e t s o f
ASEAN r eg io n
Net w o r k o f 2 ,54 0
k m o f r a il
co r r id o r s fo r a
s ea m les s
m o v em en t o f
fr e ig h t .
An cho r ed b y
Pa r a d ip Po r t -
la r g es t in t he
co u n t r y in
t e r m s o f ca r g o
ha n d lin g
ca p a cit y a n d
n e t w o r k ed
w it h o t her
p o r t s a t
Dha m r a a n d
Go p a lp u r
St r a t eg ica lly lo ca t ed o n t he ea s t co a s t o f In d ia w it h a lo n g
co a s t lin e o f 4 8 0 k m
29
H ea r t la n d o f In d ia ’s m in er a l b a s ed
m a n u fa ct u r in g b a s e
• M in er a l
p r o d u ct io n o f
USD 3 .6 4
b illio n - m o r e
t ha n t he
a g g r eg a t e
v a lu e o f 21
o t her In d ia n
St a t es .
• La r g es t
St a in les s St ee l
p r o d u cer in
In d ia
• 50 % o f
Alu m in u m
Sm elt in g
ca p a cit y o f
In d ia
• 20 % o f St ee l
m a k in g
ca p a cit y in
Co n t r ib u t io n a s p er cen t a g e o f In d ia ’s t o t a l m in er a l p r o d u ct io n
30
Co m p et it iv e in Co s t o f Do in g Bu s in es s
Rajas than
Power Tariff:
1.55
Skilled Labour
wage: 1.00
CPI: 25.6
Gujarat
Power Tariff:
1.11
Skilled
Labour wage:
1.40
CPI: 23.33
Mah arashtra
Power Tariff: 1.67
Skilled Labour
wage: 1.47
CPI: 28.63
Karn ataka
Power Tariff: 1.50
Skilled Labour
wage: 1.27
CPI: 25.57
Uttar Prade sh
Power Tariff: 1.77
Skilled Labour
wage: 1.53
CPI: 24.28
Jh arkh an d
Power Tariff: 1.17
Skilled Labour
wage: 1.39
CPI: 24.33
Madh ya
Prade sh
Power Tariff:
1.24
Skilled Labour
wage: 1.61
CPI: 27.41
Ch h attisgarh
Power Tariff: 1.27
Skilled Labour
wage: 1.19
CPI: 22.7
An dh ra Prade sh
Power Tariff: 1.36
Skilled Labour
wage: 1.91
CPI: 27.02
Odish a
Power Tariff: 1.oo
Skilled Labour
wage: 1.15
CPI: 22.07
* Po w er Ta r iff a n d Sk illed La b o ur W a g e ha v e b een s ho w n a s Co s t In d ex w it h b a s e a s 1.CPI is Co n s um er Pr ice In d ex o f
t he ca p it a l cit y (Fo r An d hr a Pr a d es h , Vija y a w a d a is co n s id er ed ) , s o ur ced fr o m w w w .n um b eo .co m
31
Bhu b a n es hw a r , t he Ca p it a l Cit y -h ig h ly liv a b le
a n d b u s in es s -fr ien d ly d es t in a t io n
2 n d p la n n ed
cit y in t he
co u n t r y ,
r a n k ed a m o n g
t he s a fes ts t a t e ca p it a ls
in t he co u n t r y
3 r d b es t cit y in
In d ia t o d o
Bu s in es s
(W o r ld Ba n k )
32
R o b u s t In d u s t r ia l La n d a n d
In fr a s t r u ct u r e Eco s y s t emLa n d Ba n k
10 0 ,0 0 0 a cr es o f in d u s t r ia l la n d b a n k
In v es t m en t R eg io n s
Na t io n a l In v es t m en t a n d M a n u fa ct u r in g
Zo n e a t K a lig a n a g a r
Pet r o leu m , Chem ica ls a n d Pe t r o chem ica ls
In v es t m en t R eg io n (PCPIR ) a t Pa r a d ip
Po r t b a s ed m a n u fa ct u r in g z o n e a t Dha m r a
Sect o r sp ecific in d u s t r ia l clu s t er s
Elect r o n ics M a n u fa ct u r in g
Alu m in u m Do w n s t r ea m In d u s t r ies
Pla s t ics
Fo o d Pr o ces s in g
Text ile s
Sea fo o d
In d u s t r ia l Pa r k s
10 6 In d u s t r ia l Pa r k s w it h a n a r ea o f 9 ,8 0 0
a cr es u n d er o p er a t io n
33
• La r g e p o o l o f s k illed m a n p o w er
o 1,26,000 technical m anpow er graduating per annum from 773
technical training institutions
• Pr es en ce o f Na t io n a l In s t i t u t es o f H ig her Lea r n in g
o Indian Institute of Technology (IIT)
o Indian Institute of Managem ent (IIM)
o Xavier's Institute of Managem ent (XIMB)
o National Institute of Technology (NIT)
o Institute of Minerals, Mines and Technology(IMMT)
o International Institute of Inform ation Technology (IIIT)
o All India Institute of Medical Sciences Bhubaneshw ar (AIIMS)
• R es ea r ch In s t i t u t io n s
o Central Institute of Plastics Engineering and Technology
(CIPET), Bhubanesw ar
o National Research Centre for W ater Technology ,
Bhubanesw ar
o Central Research Rice Institute, Cuttack
o NISER (National Institute of Science, Education & Research
o Institute of Metals and Mineral Technology
9K n o w led g e H u b o f t he Ea s t -En a b ler s fo r a
K n o w led g e Eco n o m y
34
PwC
Po licy Dr iv er s
Co m m it m en t fr o m St a t e Go v er n m en t
Fiscal an d
No n - fis cal
in ce n tive s
Ease o f Do in g
Bus in e s s
24 *7
Po w e r Supply
Re ady to use
In dus trial Lan d
De ve lo pe d
in dus trial parks
an d clus te rs
Exte rn al
In fras tructure
Go ve rn m e n t
Suppo rt
36
Sect o r Sp ecific Po licy Fr a m ew o r k
• In d u s t r ia l Po licy 2 0 15
• Fo o d Pr o ces s in g Po licy 2 0 13
• In fo r m a t io n & Co m m u n ica t io n Techn o lo g y Po licy 2 0 14
• M SM E Dev e lo p m en t Po licy 2 0 0 9
• Od is ha To u r is m Po licy 2 0 13
• Sp ecia l In cen t iv e Pa ck a g e Schem e fo r Elect r o n ics Sy s t em Des ig n &
M a n u fa ct u r in g Sect o r
37
Fo cu s Sect o r s
ANCILLARY &
DOW NSTREAM
INDUSTRIES
CH EMICALS,
PLASTICS AND
PETROCH EMICALS
AGRO an d SEA
FOOD
PROCESSING
ELECTRONICS
MANUFACTURIN
G
TEXTILES in cludin g
TECH NICAL
TEXTILES
AUTO an d AUTO
COMPONENTS
38
PwC
In d u s t r ia l Po licy -In cen t iv e Fr a m ew o r k
Em p lo y m en t Ba s ed
In cen t iv es
La n d a n d
In fr a s t r u ct u r e Su p p o r t
Fis ca l In cen t iv es
No n -fis ca l in cen t iv es
39
PwC
Ea s e o f Do in g Bu s in es s
R a n k in g o f t he St a t esOdisha recognized as an ‘Aspiring Leader’
41
Or is s a In d u s t r ies
(Fa cili t a t io n ) Act 20 0 4 -
o n e o f t he fir s t
leg is la t io n s fo r s in g le
w in d o w clea r a n ce s y s t em
in t he co u n t r y
St a t e Lev e l Fa cili t a t io n
Cell a s a “On e-St o p ”
fa cili t y fo r p r o ject
a p p r o v a ls a n d
ha n d ho ld in g o f t he
in v es t o r s .
H a s s le fr ee s y n chr o n iz ed
in s p ect io n a n d v o lu n t a r y
co m p lia n ce s y s t em .
4 2 In d u s t r ia l Ser v ices
u n d er t he “Od is ha R ig h t t o
Pu b lic Ser v ices Act ”
Deem ed a p p r o v a ls b y t he
No d a l Ag en cy t o a v o id a n y
d l
15 d a y s
Gr een
Ca t eg o r y
In d u s t r ies30 d a y s
Ot her
Ca t eg o r y
In d u s t r ies
Pio n eer in Ea s e o f Do in g Bu s in es s
Pro je ct Appro vals
42
Ea s e o f Do in g Bu s in es s – Lev er a g in g Techn o lo g y
e-BIZ
Online clearances and
approvals concerning all
departments
Cen t r a l In sp ect io n
Fr a m ew o r k
Computerized risk based
assessment of industrial units
for inspections and
randomized allocation of
inspectorsGO iPLUS
GIS Based Industrial Lad Use
and Infrastructure
Information System
APAA
Automated Post-Land
Allotment Application for
quick resolution of change
requests by industrial units
22
Ea s e o f Do in g Bu s in es s – K ey en a b ler s
H a s s le-
fr ee
la b o u r
co m p lia n c
es
Gr een
cha n n el
fo r g r een
in d u s t r ies
Voluntary Compliance
Scheme and self –
certification
New connection in 15 days
with minimal
documentation
Exemption of Green Category
industries from consent
administration
Third party inspection for
boilers
Po w er a t
o n e g o
M in im a l
in t er fer e
n ce
23
PwC
Vis io n 20 25
Od is ha In d u s t r ia l Dev e lo p m en t Pla n 20 25Per s p ect iv e Pla n a im ed a t p o s it io n in g t he St a t e a s M a n u fa ct u r in g
hu b o f t he Ea s t
Vision
2025
25
PwC
In v es t m en t Op p o r t u n it ies
Elect r o n ics M a n u fa ct u r in g
ESDM In dus try in In dia
Projected Indian ESDM
Industry Revenue (FY
2015)
US $ 94.2
billion
Projected demand for
electronics in 2020
US $ 400
billion
Share of imports in Indian
ESDM market
65%
Seg m en t s fo r in v es t m en t s
• Electronic Products
• Electronic components
• Semiconductor design and
fabrication
• Equipment manufacturing
Th e ‘Odis h a’ Advan tage
1. State Specific Package Incentive Scheme for the electronics manufacturing
sector over and above the national policies
2. Exclusive Incubation Centre with 3.3 lakh sqft of super built up area in
strategic relation with TiE Silicon Valley to provide funding and mentoring for
Start-ups.
3. Low cost of doing business- one of the most competitive land and labor prices
in South Asia
4. Presence of educational institutions of repute (IIT, IIM, AIIMS, IIIT, NISER,
XIMB KIIT)48
Elect r o n ics M a n u fa ct u r in g Clu s t er a t
In fo v a lleyAn exclusive cluster for the Electronics manufacturing sector in
an area of 216 acre s is under development near Bhubaneswar,
the capital city of Odisha.
The cluster is co-located with major IT players and software
developers complemented with residential and commercial
facilities
The cluster is a self-contained facility with world-class
infrastructure comprising of:
• Qu a lit y Phy s ica l In fr a s t r u ct u r e: 24x7 power and
environmental infrastructure.
• R ea d y t o m o v e fa cili t y : 25,000 sq.m of factories with
ready to move in facilities
• Exclu s iv e Co m m o n Fa cili t y Cen t r e: Testing &
Measurement, Rapid Prototyping, EMI/ EMC Lab, Reliability
and Component Testing Lab, Calibration Lab
• Sk ill Dev e lo p m en t Cen t r e : Exclusive Training Centre for
the ESDM industry with state-of-the-art equipment and
modern classrooms 49
Elect r o n ics M a n u fa ct u r in g Clu s t er a t
In fo v a lley
Infovalley as a new open
community
at the outskirt of Bhubaneswar
City
Co m po n e n ts Gro ss Flo o r
Are a (Sq.m )
IT-ITES 2,000 ,000
Industrial Park 480 ,000
Commercial Uses 700 ,000
Employee
Dormitory
70 ,000
Envisioned to be the
vibrant new town in
Bhubaneswar for IT &
ITES facilities,
incubation center,
hardware park and
social infrastructure
facilities
50
Acceler a t io n o f Od is ha ’s St a r t -u p
Eco s y s t em
• Strategic partnership with TiE Silicon
Valley for promotion of start-ups – only
such partnership in the country
• Exclusive Policy for start-ups under
preparation
• TiE Silicon Valley to provide mentorship,
facilitate angel investing and provide
capacity building support
• Government of Odisha setting up state-of-
the- art incubation facilities in an area of
0 .5 million sq.ft.
51
Fo o d Pr o ces s in g in clu d in g s ea fo o d
Fo o d Pro ce s s in g In dus try in Odisha
Percentage of Processed
Food in 2014
0 .7
Estimated Percentage of
Processed food in 2025
25
Th e ‘Odis h a’ Advan tage
1. 480 km of untapped coastline for marine products
2. Leading vegetable and plantation crops, one of the largest producers of fruits in
India and leading producer of Mango, Banana, Guava and Pomegranate
3. 4 th largest Shrimp producer in India
4. Focused State Policies on Food Processing and Fisheries providing attractive
incentives for the sector
5. Gateway to the hinterland markets in the eastern and central parts of the
country.
Seg m en t s fo r in v es t m en t s
• Packaged food units
• Commercial layer farms and
processing units for poultry
• Cold storage, pre-cooling rooms,
ripening chambers, post harvest
management & handling structures
• Integrated shrimp farming and
processing
52
Sea fo o d Pa r k a t
Der a s
One-of-its-kind facility on east
coast of India exclusively for
marine products.
Spread across 150 acres with
state-of-the-art Central
Processing Center and enabling
infrastructure, pre-processing
units, cold storage and packaging
facilities.
Spread over an area of 200
acres to house food processing
units exclusively in fruits and
vegetables sector
Fully developed infrastructure
to support with Common
Facility Center housing pulping
line, cold storage, raw material
godowns etc.
M eg a Fo o d Pa r k a t
R a y a g a d a
The clus te rs o pe n s up o ppo rtun itie s fo r pro ce s se d fo o d
m an ufacture rs an d in fras tructure s e rvice pro vide rs to s e rve the
gro w in g In dian do m e s tic m arke t.
53
Pet r o chem ica ls , Chem ica ls a n d
Pha r m a ceu t ica ls
Che m icals an d Pe tro che m icals
in dus try in In dia
Industry Revenue US $144
billion
Estimated Industry
Revenue (2020)
US $300
billion
Share in India’s exports 9%
Pharm ace uticals in dus try in In dia
Expected Size of industry
2020
USD 85
billon
Expected CAGR growth
(2015-2020)
15%
Seg m en t s fo r in v es t m en t s
Downstream Petroleum,
Chemicals and Petrochemicals
units
Plastics and Polymers
Specialty chemicals
Th e ‘Odis h a’ Advan tage
1. An exclusive investment region
with a 15 MMTPA refinery set up by
India’s largest state-owned oil and
gas company ensuring committed
feedstock
2. Logistic Hub connected to the
largest port in the East coast of
India.
3. 2 LNG terminals proposed in the
region 54
Pet r o leu m , Chem ica ls a n d Pet r o chem ica l
In v es t m en t R eg io n , Pa r a d ip
An Investment Region with 6 8 ,0 0 0 acre s (275
Sq.km) of world-class infrastructure to promote
manufacturing in the Petroleum, Chemicals,
Petrochemicals and allied sectors.
Eco s y s t em a t t r a ct iv en es s : Feedstock
availability from IOCL refinery:
• 700 KTA Polypropylene
• 400 KTA Mono Ethylene Glycol
• 200 KTA Paraxylene – PTA Complex
• 1250 KTA Petcoke based synthetic ethanol
Do w n s t r ea m In d u s t r ies Pa r k exclu s iv e ly fo r
Pla s t ics a n d Po ly m er s w it h Pla s t ic Pr o d u ct s
Ev a lu a t io n Cen t r eThe Gre e n fie ld in ve s tm e n t re gio n o ffe rs subs tan tial o ppo rtun itie s
fo r co m pan ie s lo o kin g to cate r to the In dian as w e ll as ASEAN
m arke ts in the s e cto r.
55
Do w n s t r ea m a n d An cilla r y In d u s t r ies
Seg m en t s fo r in v es t m en t s
Aluminium, Steel and Stainless
Steel Products
Fabrication of Metal Products
Auto and Auto component
manufacturing
Electrical Machinery and
Equipment
Ancillary and downstream products
Infrastructure Development
Th e ‘Odis h a’ Advan tage
1. “Mineral Hub” of India
2. Largest producer of Aluminium- 54% of total Aluminium smelting capacity of
the country; Largest Stainless Steel and 20% of the total Steelmaking capacity
of India
3. Exclusive infrastructure ecosystem in the form of an Investment Region and
Cluster Parks
4. Abundant availability of feedstock at door step substantially reducing the
Min e ral Pro ductio n in Odisha
Total value of
Mineral
Production
USD 3 .6 4 billio n
(More than the
aggregate value of 21
other Indian States
56
K a lin g a n a g a r Na t io n a l In v es t m en t a n d
M a n u fa ct u r in g Zo n e
A m an ufacturin g h ub co ve rin g th e e n tire value ch ain
o f s te e l an d m e tals pu lsatin g w ith a re n e w e d po te n tial fo r
gro w th .
Ded ica t ed In v es t m en t a n d M a n u fa ct u r in g Zo n e in o v er
4 0 ,0 0 0 acre s (16 3 Sq.km )
Eco sy s t em Ad v a n t a g e: Th e large s t s te e l m an ufacturin g
h ub in th e co un try h o us in g 9 large s te e l m an ufacturin g
co m pan ie s w ith a capacity o f 21 MT pe r an n um .
La n d & In fr a s t r u ct u r e fr a m ew o r k : Land at competitive cost
of land. Fully developed infrastructure
Co m m it t ed Feed s t o ck : Proximity to Odisha’s mineral rich
region and committed feedstock availability from mother plants.
Do w n s t r ea m o p p o r t u n it ies : Unique opportunities for
ancillary and downstream industrial development in the vicinity
57
Alu m in iu m Pa r k , An g u l
Pr o ject : 223 acre s of exclusive facility for downstream
industries in aluminum sector, first of its kind project in the
Indian sub– continent with a facility for directly obtaining molten
aluminium from the smelter.
Exclu s iv e Co m m o n Fa cili t ies : Aluminium Product Evaluation
Centre (APEC) with full-fledged testing facilities, simulation and
evaluation facilities, prototype development facilities, tool room,
process hall, etc.
Lo g is t ics Fa cili t ies : Logistics infrastructure facility, Loading
and unloading docks, secured parking lots, and 24/ 7 surveillance
system
Bu s in es s Cen t r e: Park administration, security and service
facilities, conference, convention, display and trade facilitation
services.
In v es t m en t Op p o r t u n it ies in :
• Downstream Industries such as Conductors, Extrusions,
Castings and Foils
• Ancillary Industries such as Calcined Petroleum, Special
Refractory Bricks, Cryolite, Caustic Soda and Aluminium
Fluoride58
Des t in a t io n fo r t he W o r ld Lea d er s
an d m an y
m o re….. 59
Od is ha - New Op p o r t u n it ies
Thin k In v es t m en t s , Thin k Od is ha
For more details, visit
w w w .in v es t o d is ha .o r g
Download our Mobile App ‘In ve s t Odish a’,
available on
PwC
An n exu r e
PwC
Po licy Fr a m ew o r k
PwC
In cen t iv e Fr a m ew o r k
1. Em p lo y m en t Ba s ed In cen t iv es
Cate go rizatio n
Dis tricts Cate go ry A All other districts other than Category B
Cate go ry B Industrially Backward Districts- Kalahandi, Nuapada, Bolangir,
Subarnpur, Koraput, Malkangiri, Rayagada, Nawrangpur,
Kandhamal, Gajapati and Mayurbhanj
Cate go ry In ve s tm e n t
(Rs . Cro re )
Min im um
Em plo ym e n t
(Num be r)
In dus try Cate go ry A A1 >100 100
A2 >200 200
A3 >500 400
Cate go ry B B1 >50 75
B2 >100 100
B3 >250 200
63
PwC
In cen t iv e Fr a m ew o r k
2 . Em p lo y m en t Ba s ed In cen t iv es
Cate go ry In ce n tive
Po w e r • Committed 24*7 power
• Dedicated industrial feeders
• Reimbursement of Rs. 0 .25 – 1.25 per unit for a period
of 5 years based employment and investment
(Category A1-3, B1-3)
Train in g
Subs idy
• Reimbursement of training cost upto Rs. 1,750 –
4,000 per person for every person trained and newly
recruited for a period of three years based
employment and investment (Category A1-3, B1-3)
Lan d fo r
W o rke rs
H o s te ls
• Land rate at 50% of the prevailing market rates of
IDCO
64
PwC
In cen t iv e Fr a m ew o r k
3 . Em p lo y m en t Ba s ed In cen t iv es
Cate go ry Maxim um Capital Subs idy
A1/ B1 10% of investment with a max. of Rs. 10 .0 Crore
A2/ B2 10% of investment with a max. of Rs. 20 .0 Crore
A3/ B3 10% of investment with a max. of Rs. 50 .0 Crore
Capital subs idy o f 10 % for plants and Machinery based on employment
and investment in:
a) Auto and Auto Components
b) Agro and Food Processing
c) Textile including Technical Textile & Apparel
d) Pharmaceuticals, and
e) Plastics sectors
65
PwC
In cen t iv e Fr a m ew o r k
4 . La n d a n d In fr a s t r u ct u r e Dev e lo p m en t Su p p o r t
In dus trial
In fras tructure
De ve lo pm e n t
Fun d
• An exclusive In dus trial In fras tructure De ve lo pm e n t
Fun d (IIDF) w ith an in itial co rpus o f Rs .10 0 cro re for
development of external infrastructure such as power, water
supply, access roads etc.
Capital gran t to
suppo rt
In fras tructure
• 50% of the infrastructure cost with a ceiling of Rs.10 crore per
cluster
• 50% of total cost with a ceiling of Rs.5 crore provided the
park / estate / cluster is user- managed
Po w e r
in fras tructure
• For an industrial park with energy requirement in excess of
20 MVA, GRIDCO/ OPTCL to provide a sub-station
Lan d • 10% of the land for large projects shall be earmarked for
setting up ancillary and downstream industrial park.
En viro n m e n tal
Pro te ctio n
In fras tructure
Subs idy
• 20 Lakhs or 20% of capital cost of setting ETP for Micro,
Small and Medium sector industries
66
PwC
In cen t iv e Fr a m ew o r k
5. Fis ca l In cen t iv es
In ce n tive Prio rity s e cto r Micro Sm all Me dium Large #
Exe m ptio n fro m
paym e n t o f
pre m ium , le viable
un de r OLR
Act.19 6 0
100% up to 100 Acres and
50% for balance area
100 % up
to 5
Acres
100 %
up to 5
Acres
75 % up
to 25
Acres
50 %
up to
500
Acres
In te re s t Subs idy 5% per annum for 5 years on term loan availed from
Public Financial Institutions / Banks
Max Lim it (Rs .
Lacs ) fo r In te re s t
Subs idy
100 (Non-MSME
Industries)
10 20 40
Stam p Duty
Exe m ptio n
100% 75% 50% 25%
67
PwC
In cen t iv e Fr a m ew o r k
6 . Fis ca l In cen t iv es
In ce n tive Prio rity s e cto r Micro Sm all Me dium
En e rgy duty (e xe m ptio n in co n tract
de m an d)
5 MVA for 5 years 500 KVA for 5 years
Re im burse m e n t o f Value Adde d Tax
(VAT)
100% for 7 years 75% for 5 years
Re im burse m e n t o f En try Tax 100% for Plant and Machinery
100% of raw materials for 5 years
Re im burse m e
n t o f
Em plo ym e n t
Co s t Subs idy
(ESI/ ESF)
Male 75% for Micro &
Small for 5 years and
50% for Medium
enterprises for 3
years
75% for 5 years 50% for 3
years
Fe m ale 100% for 5 years in
Micro & Small and 3
years for medium
enterprises
100% for 5 years 100% for
3 years
Do m icile o f s tate 100% for 3 years
Disable d 100% for 5 years
68
PwC
In cen t iv e Fr a m ew o r k
6 . An cho r Ten a n t In cen t iv es
“An ch o r Ten an t” -the first & lead investor whose brand value &
potential for backward and / or forward linkages shall stimulate
further investments
In cen tive s :
• 25% subsidy on cost of land
• VAT Reimbursement for additional 2 years subject to the overall
limit
69
In fo r m a t io n a n d Co m m u n ica t io n Po licy 20 14
Re n tals fo r
In cubatio n Space
IT/ ITES/ ESDM units (with up to 40 people) to get 60% to
80% subsidy on lease rentals (based on area) for
incubation space with maximum term of 2 years
Le ase Re n tals
IT/ ITES/ ESDM units (minimum 40 employees and 2
years of operation) to get 30% to 50% subsidy on lease
rentals of built up space for a maximum term of 2 years
In te re s t Subs idy
5% per annum on term loan for a period of 5 years for
Micro & Small Enterprises with a ceiling of INR 10 lakhs
and INR 20 lakhs respectively
Capital
In ve s tm e n t
Subs idy
20% on Fixed Capital Investment with a maximum limit of
INR 5 crore
VAT
Re im burse m e n t
75% reimbursement of VAT for a period of 5 years limited
to 100% of Fixed Capital Investment
Large an d Me ga
Pro je cts Special package on a one-on-one basisINR 1 lakh = USD 1,4 75
1 cro re = 10 0 lakh
70
Sch e m e fo r Large an d Me ga ESDM pro je cts*
Capital
In ve s tm e n t
Subs idy
25% on Fixed Capital Investment for plant and machinery subject to maximum
of Rs. 50 crore
En try Tax Exemption on machinery and equipment for a period of 3 years from registration
H um an Capital
In ve s tm e n t
Subs idy
Upto Rs. 800 per person per month to be reimbursed
Reimbursement of expenditure towards ESI and EPF subject to maximum of Rs.
2 crore
VAT
re im burse m e n t
100% reimbursement for a period of 5 years limited to 100% of the fixed capital
investment
Po w e r an d
W ate r
Exemption from electricity duty and water duty
In te re s t Subs idy At 5% per annum for a period of 5 years with a maximum moratorium of 18
months
*Large and Mega ESDM Project is required to have investment intent with m in im um in ve s tm e n t
o f Rs . 20 0 cro re and generate an e m plo ym e n t o f m in im um 50 0 pe rso n s at th e tim e o f
s tartin g the production and create and employment o ppo rtun ity fo r m o re th an 2 ,0 0 0 pe rso n s
Sp ecia l In cen t iv e Pa ck a g e Schem e fo r ESDM
Sect o r
INR 10 0 Cro re = Appro x. USD
15 m illio n
71
