Odisha – Brief Profile Contents Overview of the State Economy of the State Key Indicators Strategic Advantage Investment Scenario Ease of Doing Business Key Links September 2015 Slide 2 Overview of the State September 2015 Slide 3 Salient Features Odisha, the ancient Kalinga has been gifted with nature’s bounty with 480 km long coastline with golden beaches, serpentine rivers and a rich wild life. The State of Odisha extends from 17.49N latitude to 22.34N latitude and from 81.27E longitude to 87.29E longitude. It is home to Asia’s largest brackish water lake, the Chilika Lake. The State is divided into five major regions: coastal plains in the east, middle mountains and highland region, the central plateaus, western rolling uplands and major flood plains. September 2015 Slide 4 Industry Outline While retaining its pristine glory, Odisha also consists of a huge industrial base - Manufacturing, Mining, Food Processing, Agrobased industry, Chemical Industry, Textile industry, etc. Odisha is a land of minerals with vast deposits of Coal, Iron-ore, Manganese-ore, Bauxite, Chromite, Dolomite, Limestone, Graphite, etc. September 2015 Slide 5 Economy of the State September 2015 Slide 6 Economy of the State One of the fastest growing economies in India, expected to grow in double digits Achieved 8.78 % GDP growth during 2014-15, 20% higher than India’s GDP growth, and is poised to grow at around 12% by year 2020 * Forecast by Dun & Bradstreet Contribution of each sector to GSDP 18.81% Primary Sector Secondary Sector 47.52% Tertiary Sector 33.67% September 2015 Slide 7 Key Indicators September 2015 Slide 8 Soci0-Economic Indicators Geographical Area – 155,707 sq km, around 5% of the total land area of India Population, working age population – 42 million which is around 3.47% of India’s population. The working age population is 17.54 million which is 2.2% of India’s working age population. Per capita income – Odisha’s per capita income is Rs.28,384 and India’s per capita income is Rs 74,380. Literacy Rate - Odisha’s literacy rate of 73.45% is catching up fast with the national literacy rate of 74.04%. Significant achievement as the drop out rate has fallen down to 1.97% in 2013-14 as compared to 18.5% in 2005-06. September 2015 Slide 9 Knowledge Resources Presence of national institutes of higher learning 717 number of ITIs and polytechnics with capacity of 110,956 per annum 150 number of engineering colleges with 38,253 graduates per annum o Indian Institute of Technology (IIT) o Indian Institute of Management (IIM) o Xavier's Institute of Management (XIMB) o National Institute of Technology (NIT) o Institute of Minerals, Mines and Technology(IMMT) o International Institute of Information Technology (IIIT) 415 number of skill centers proposed for imparting industry employable skills 10 Medical Colleges with a capacity of 980 per annum September 2015 Slide 10 Public Utilities Roads: Total road length of 250,836 km and density of 1,611 km per ‘000 sq km and 5.9 km per ‘000 population. The National Highways have a network of 4,510 km in the State. Railway: Total rail network of 2,540 km. Rail density of 16 km per ‘000 sq km and 0.06 km per ‘000 population. Power: The total Installed power capacity of the State is 9,036 MW with a Peak Power Deficit of 21.2%. The Renewable Energy Potential of Odisha is 116 MW. Hospitals: 3,537 allopathic medical institutions with 30,295 beds(0.72 beds per’000 population) Road Density (in km) 700 587 600 500 387 400 300 200 161 143 100 0 India Per 100 sq km Odisha Per 100,000 population Tele Density: Overall Tele density of 60.9 per ’00 population. September 2015 Slide 11 Key rates for industrial inputs Energy Charges (in Rs/unit) Minimum Wages (in Rs) 300 250 6 5 200 4 150 3 2 100 1 50 0 Load Factor =<60% Load Factor >60% 0 Unskilled Semi-Skilled Skilled Highly Skilled September 2015 Slide 12 Strategic Advantages September 2015 Slide 13 Bountiful Resources • Value of Odisha’s mineral production is approx. USD 3.64 billion - more than the aggregate value of 21 other Indian States. • Largest Stainless Steel producer • Largest Aluminium producer - more than 50% Aluminum Smelting capacity • 20% of the Steel making capacity of India September 2015 Slide 14 Seamless Connectivity ROADWAYS RAILWAYS PORTS AIR Excellent connectivity through a road network of 250,836 Km. Well connected to other Indian states through multiple state & national highways. The broad and narrow gauges pass through majority of the districts and enable easy evacuation of minerals. Presence of major ports in the State gives significant competitive advantage and acts as the Gateway to the ASEAN region Connecting to major airports in India. Bhubaneswar Awarded AAI’s best airport in India. September 2015 Slide 15 Robust Infrastructure IT & Communication Infrastructure Communication network in recent years is developing with a proper pace in the land of Odisha. Even the remote areas of Odisha have been connected through telecommunication, postal network and mobile coverage. There has been considerable improvement in telecom coverage and also the quality of services. Power Situation • • • First state in the country to bring in power sector reforms. The power situation in Odisha is better than many of the States as Odisha is a power surplus State. The installed capacity of the State has doubled from 2005-06 to 9,036 MW in 2014-15. September 2015 Slide 16 Ample Availability of Land - IDCO is the Nodal Agency for providing industrial infrastructure in the State of Odisha. - IDCO has created an online GIS enabled portal which allows a prospective investor to view the land bank and the existing industrial estates. - Under this portal, land parcels have been earmarked based on various pollution categories. - 106 Industrial Estates across 27 districts. - 8,000 acres Industrial Land under Operation - 12 new estates with 3,000 acres expected to be operational soon. - 420,000 acres of land identified. - 75,000 acres applied for acquisition. - A prospective investor can choose the area in which he/she intends to invest and can view the map along with the infrastructure availability in proximity of the selected land parcel. URL: http://www.idco.in September 2015 Slide 17 Land Information • Category: Categorized as green, orange or red on the basis of the type of industries that can be setup on them. • Digitization: Land records have been digitized and the system is known as “Bhulekh”. URL: http://bhulekh.ori.nic.in/RoRView.aspx • Process of change of land Use - Change of land use for industrial purposes is being handled by the Revenue and Disaster Management Department. The timeline to complete this process is 60 days. • Details of Taxes - Stamp duty is 5% of the total value of the land or building. • Model Sale Deed - The State has a model sale deed, which can be seen under the URL: http://www.odisha.gov.in/revenue//Communications/Circulars/R egistration/17552_13_05_13.pdf September 2015 Slide 18 Investment Scenario September 2015 Slide 19 FDI Inflows Odisha topped in attracting investments in 2012-13 as per RBI report. The current FDI inflows from April 2000 to Jan 2015 is USD 397 million. World Bank Report ranked Bhubaneswar as the 3rd best city in India to do Business Bhubaneswar, termed as ‘The Dark Horse’, was one of the top four favoured destinations for new start ups in India as per Economic Times report. September 2015 Slide 20 Key Focus Sectors identified by the State Auto and Auto Components Downstream and Ancillary Industries IT and ESDM Industries Tourism Agro and Food Processing Manufacturing in Aviation and Maintenance, Repair & Overhaul (MRO) facilities Pharmaceuticals Handicrafts and Textile Petroleum, Chemicals and Petro-Chemicals Plastics and Polymers September 2015 Slide 21 Policy Odisha Tourism Policy, 2013 National FDI Policy 2015 State Agriculture Policy, 2013 Industrial Policy, 2015 ICT Policy 2014 • Odisha’s Robust Policy Framework Industrial Policy, 2015 Odisha MSME Development Policy, 2009 Policy for Special Economic Zone, 2015 Exemption of Stamp Duty upto 100% • Interest Subsidy of upto INR 1 crore(USD 158,000) • Exemption of Electricity Duty upto 100% • Reimbursement of VAT upto 100% • Reimbursement of Entry Tax upto 100% • Employment cost Subsidy of upto 100% Odisha Food Processing Policy, 2013 September 2015 Slide 22 Policy Highlights Land Capital Investment Subsidy Interest Subsidy Stamp Duty exemption Reimburseme nt of VAT Reimburseme nt of Entertainment Tax Transport industry Participation in overseas Tourism Events Production of Promotional material Tourism Policy Land Allotment at concessional rates Land allotment for Hotel and Tourism management institutes in earmarked zones 20% to 35% upto a maximum of USD 0.07 Million based on the location of the project setup 3% to 5% upto a maximum of USD 0.17 Million for a maximum duration of 7 years, based on the area of project setup 50% exemption on purchase of land for the project 30% to a maximum of USD 0.02 per annum for a period of 5 years from COD 100% for a period of 5 years for New Multiplex Cinema halls of at least 3 screens, Public Aquarium, Aqua park & Amusement Park 75% exemption from registration charges and 50% concession from payment of permit charges for AC coaches with minimum 25 seats 50% of the space rent for the stall and travel expenses to a maximum of USD 1250 20% of actual cost of production to a maximum of USD 833 Incubation Lease Rentals Land Allotment in IT Parks Interest Subsidy Capital Investment Subsidy Power and Water ICT Policy 60% to 80% subsidy on lease rentals for a center with minimum 40 employees for a maximum of 2 years, based on the area 60% to 80% subsidy on lease rentals for a project with minimum 40 employees with minimum 2 years of operation, based on the area 0.5 acre/50 employees with minimum 2 years of operations acre/100 employees with minimum 2 years of operations >1.0 acre/100 employees with minimum 3 years of operations 5% per annum on term loan for a period of 5 years for Micro & Small Enterprises with a ceiling of USD 0.02 Million and USD 0.03 Million respectively 20% on Fixed Capital Investment with a maximum limit of USD 0.08 Million Exemption from Electricity duty and inspection fee Uninterrupted power 75% reimbursement of VAT for a period of 5 years limited to 100% of Fixed Capital Investment VAT Reimbursemen t Large and Mega Special package on a one on one basis Projects September 2015 Slide 23 Tier 2 Cities Projects in tier 2 cities are provided additional benefits Policy Highlights Food Processing Policy Land 25% subsidy, if the enterprise is set in the industrially backward district (KBK region) Raw material and Marketing Exemption of earnest money and 25% of security deposit for registered local MSEs Additional price preference of 3% to local M & SEs having ISO or ISI certification 25% subsidy on the capital cost (excluding land) subject to a maximum of USD 0.33 Million 33%, subject to a maximum of USD 0.5 Million, in case of women entrepreneurs, SC/ST entrepreneurs or if enterprises set in KBK region 5% per annum back ended interest subsidy on working capital loan for first 5 years, subject to a limit of USD 8333 per year New enterprises to be exempted from Electricity Duty for a period of 10 years Enterprises expanding or diversifying their products can also avail this exemption Reimbursement up to 50%, subject to ceiling of USD 3333 on various quality certification standards Capital Investment Subsidy Interest Subsidy Exemption for electricity duty Quality Certification Exemption from Entry Tax Incentiv es for Mega SPV Food Park and Sea Food Units Park On plant and machinery and balancing equipment procured by MSMEs. On raw material, incidental goods & packaging material procured by MSMEs for a period of 5 years from the date of starting commercial production Reimbursement of USD 8333 for the preparation of DPR for setting up of Food Parks 50% subsidy subject to maximum USD 0.03 Million, on project report, if the project is prepared for carbon credits One time Capital Grant for infrastructure - 20% project cost, subject to a limit of USD 2.5 Million 100% VAT reimbursement for 10 years, limited to 200% of fixed capital investment. Other unit level incentives as mentioned above September 2015 Slide 24 Details of applicable State Taxes Value Added Tax Act Central Sales Tax Entry Tax Online Registration: Online system for the industries to register under the various Acts. The process eliminates all physical touchpoints and allows the user to register and pay online. The URL for registration and payment are given below: For Registration: www.odishatax.gov.in For Payment: www.odishatreasury.gov.in Professional Tax September 2015 Slide 25 Key Incentives Stamp Duty exemption/subsidy: 1. 2. 3. 4. 5. Micro & Small Sector: 75 % of applicable Stamp duty Medium Sector: 50 % of applicable Stamp duty. Large Sector: 25 % of applicable Stamp duty Priority Sector: 100% of applicable Stamp duty Loan agreements, credit deeds, mortgages and hypothecation deeds executed by the Industrial Units in favour of Banks or Financial Institutions shall be allowed 100% exemption from stamp duty. Tax Incentives: 1. 2. Reimbursement of Value Added Tax (VAT) at 100% for 7 year for priority sectors and a 75% for 5 years for other non-priority sectors. Entry Tax exemption of 100% for Plant and Machinery and 100% on raw materials for 7 years. Reimbursement in Power Tariff Energy exemption: 1. 500 KVA for 5 years for Small Scale Industries. 2. 5 MVA for 5 years 1. 2. Other incentives: Committed 24*7 power Dedicated industrial feeder September 2015 Slide 26 Incentives Offered Land & Infrastructure Development Support Industrial Infrastructure Development Fund Capital grant to support Quality Infrastructure Power Land An exclusive Industrial Infrastructure Development Fund (IIDF) with an initial corpus of USD 16.7 Million for development of quality infrastructure 50% of the infrastructure cost with a ceiling of USD 1.67 Million per green field industrial park/cluster 50% of total cost with a ceiling of USD 0.9 Million for up gradation of brown field clusters Committed 24*7 power Dedicated industrial feeders Exclusive sub-station for industrial park with energy requirement in excess of 20 MVA 10% of the land for large projects subject to an upper limit of 300 Acres shall be earmarked for setting up ancillary and downstream industrial park Special Economic Zones Separate policy for SEZs to provide fiscal and non-fiscal incentives Anchor Tenant • • Environmental Protection Infrastructure Subsidy USD 0.04 Million or 20% of capital cost of setting ETP for MSME Units 25% subsidy on cost of land VAT Reimbursement for additional 2 years subject to the overall limit September 2015 Slide 27 Incentives Offered Employment & Investment based incentives Power cost reimbursement Training Land for Workers Hostels Capital Subsidy for Plant and Machinery Reimbursement of Rs. 0.25 – 1.25 per KWH unit for a period of 5 years based employment and investment Reimbursement of training cost upto USD 29-67 per person for every person trained and newly recruited for a period of three years based employment and investment Land rate at 50% of the prevailing market rates of IDCO Capital subsidy of 10% upto maximum of USD 8.3 Million based on employment and investment in Auto and Auto Components, Agro and Food Processing, Textile including Technical Textile & Apparel, Pharmaceuticals and Plastics sectors September 2015 Slide 28 Incentives Offered Fiscal Incentives Interest Subsidy 5% per annum for 5 years on term loan availed from Public Financial Institutions / Banks Max Limit for Interest Subsidy USD 0.17 Million (Non-MSME Industries) Stamp Duty Exemption 100% Energy duty (Exemption in contract demand) Reimbursement of Value Added Tax (VAT) Reimbursement of Entry Tax 5 MVA for 5 years 100% for 7 years 100% for Plant and Machinery 100% of raw materials for 5 years Reimbursement of Employment Cost Subsidy Male 75% for Micro & Small for 5 years and 50% for Medium enterprises for 3 years (ESI/ESF) Female 100% for 5 years in Micro & Small and 3 years for medium enterprises Domicile of state Disabled 100% for 3 years 100% for 5 years September 2015 Slide 29 Incentives Offered Other Incentives Patent Registration 100% of the registration cost up to maximum of USD 0.02 Million Quality Certification Renewal for consecutive two years i.e. for a period of 3 years @ 100% to a total maximum limit of USD 5000 Assistance for technical knowhow 100% of cost of purchase of technical know- how up to USD 1667 in case of indigenous technology and up to USD 8333 in case of imported technology. Entrepreneurship Development Subsidy Reimbursement of 75% of course fee limited to USD 833 per course September 2015 Slide 30 Investment Regions & Industrial Clusters Investment Regions National Investment and Manufacturing Zone at Kalinganagar Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) at Paradeep Port based manufacturing zone at Dhamra Sector specific industrial parks in: Electronic Manufacturing Aluminum Plastics Food Processing Textiles Sea food September 2015 Slide 31 Investment Regions National Investment & Manufacturing Zone(NIMZ), Kalinganagar • Area - 40,339 acres • Envisaged Investment: USD 15.21 billion • Availability of feedstock • Presence of large integrated steel plants such as TATA Steel, Jindal Stainless, Maithan Ispat Ltd, VISA Steel, Nilanchal Ispat Nigam Ltd. along with support infrastructure Petroleum, Chemicals and Petrochemical Investment Region (PCPIR), Paradeep • Area - 68,000 acres • Envisaged Investment - USD 42.20 billion. • Anchor tenant – Indian Oil Corporation Limited • Anchor projects - 15 MMTPA grass root refinery; and setting up a 700 KTA Polypropylene plant • Opportunities • Downstream industries and clusters • PPP based development of infrastructure. September 2015 Slide 32 Industrial Parks Downstream Aluminium Park, Angul • • • • Area - 223 acres Estimated project cost USD 29 million. Committed feedstock of metal, Value added products to cater to white goods, auto components and construction Exclusive infrastructure facility for downstream industries in the aluminum sector Gopalpur Industrial Park & SEZ • • • • • Area - 2970 acres Envisaged Investment - USD 2.38 billion Includes multi-product SEZ over 2570 acres Anchor project by Tata Steel over 400 acres. Opportunities in steel and allied downstream industries, chemical, etc. Downstream Steel , Angul Auto park, Choudwar • • • • Area – 550 acres Estimated Project cost – 325.4 million Amtek Metal and Mining Limited is also setting up a 2 MTPA steel plant and a 500 MW power plant. Plan to transfer the hot metal from blast furnace to auto park. • • • • Area - 300 acres Estimated project cost - USD 76 million Commitment on feedstock Exclusive industrial park catering to value added products in steel Stainless Steel Industrial Park, Kalinganagar • • • • Area - 500 acres Estimated project cost - USD 33 million Commitment on feedstock Exclusive industrial park for downstream industries in stainless steel sector September 2015 Slide 33 Industrial Clusters and Parks Seafood Processing Park, Deras Plastics Park at Paradeep • • • • Area - 120 acres; Estimated Project CostUSD 16.7 million Committed feedstock from Indian Oil Corporation Ltd. State-of-the-art plug & play infrastructure with common facility center Mega Food Park • • • • Mega Food Parks at Khurdah over an area of 162 acres MITS Food Park at Rayagada over an area 200 acres. Fully developed infrastructure to support food processing industries Common Facility Center housing pulping line, cold storage, raw ,material godowns etc. Electronics Manufacturing Cluster, Bhubaneswar • Area - 215 acres • Estimated project cost - USD 32 million. • Exclusive focus on electronic components • Social infrastructure to complement the physical infrastructure • Co-existing software/IT ecosystem as the facility is an integral part of ‘Infovalley’, 600 acre development at Bhubaneswar • Area – 152 acres • Estimated project cost - USD 18.9 million • An exclusive infrastructure facility for seafood/marine products. • Only such facility on the east coast of India • State-of-the-art common facility center with cold storage and packaging facilities Integrated Textile Park • Developed at Soroda over an area of 97 acres and Bhadrak over an area of 217 acres. • Fully integrated infrastructure facility to support the entire value chain of textiles • Opportunity to set up spinning, processing and garmenting units September 2015 Slide 34 Ease of Doing Business September 2015 Slide 35 Investor Facilitation Nodal Agencies for Investment Facilitation • Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL) functions as the State Level Nodal Agency (SLNA) • District Industries Centers function as the District Level Facilitation Agency (DLNA). Dedicated Investor Facilitation Cells at the State and District levels to strengthen the investor facilitation. The key objective of the Facilitation Cells is: • To guide the investors • Assess the project proposals • Follow up for timely approvals for establishment & operation of the units. September 2015 Slide 36 Single Window System INVESTOR Up to Rs. 500 million (USD 7.94 million) DICs More than Rs. 500 million (USD 7.94 million) IPICOL DLSWCA SLSWCA More than Rs. 10 billion (USD 158.73 million) HLCA District Collector 10 members (Representatives from concerned departments Chief Secretary 16 members (Secretary/ Heads of Departments) Chief Minister 12 members (Ministers/Secretaries) The State established Single Window Clearance mechanism for providing time bound clearances and approvals. A Combined Application Form (CAF) has been created which all departments/authorities are mandated to accept for various clearances and approvals. The Single Window Clearance System in the State categorizes the proposed projects into three groups based on the total investment proposed. September 2015 Slide 37 Timelines for Approvals Ease of Doing Business 15 days(Green Category Industries) 30 days Final Project Approval within 15 days Final Project Approval within 30 days for Other Industries September 2015 Slide 38 Timelines for various approvals Service Time Limit (Working Days) Time taken from request for connection to release of connection where infrastructure is available 15 S. No. DISCOMs 1. 2. Time taken from request for connection to release of connection where infrastructure is not available Odisha State Pollution Control Board 3. Consent to Establish 30 A‘A’ Category after obtaining environmental clearance 60 B‘B’ Category after obtaining environmental clearance 45 C‘C’ Category 30 4. Permission under Hazardous Waste (Handling & Management) Rules 5. Consent to Operate 30 A‘A’ Category after obtaining environmental clearance 60 B‘B’ Category after obtaining environmental clearance 45 C‘C’ Category 30 September 2015 Slide 39 Timelines for various approvals S. No. 6 7 Service Directorate of Factories and Boilers Time Limit (Working Days) Approval of Factory Plan for Non-Hazardous factories Approval of Factory Plan for Hazardous factories Approval of Factory Plan for Major Accident Hazard (MAH) factories Registration and Licensing of Factories 30 60 30 30 13 Renewal/Amendment/Transfer of factory license Issue of duplicate license Inspection of Boilers & issue of provisional orders to operate boilers Approval of repair order of Boilers 14 15 Steam pipeline drawing approval Registration of Boilers 30 30 16 Endorsement of Certificates of Boiler Operation Engineers, Boiler Attendants and Welders issued by other States 15 17 Revalidation of Welders’ certificates 15 8 9 10 11 12 90 30 15 15 September 2015 Slide 40 Timelines for various approvals S. No. 18 19 Service Labour Commissioner Registration under Odisha Shop and Commercial Establishment Act,1956 Renewal of Registration under Odisha Shop and Commercial Establishment Act,1956 Time Limit (Working Days) 15 15 20 Contract Labour(R & A)Act,1970 i)Registration (one time) ii)Licence iii)Renewal (annual) 15 21 Industrial Employment Standing Order Act, 1946 45 22 UDA/Municipalities Building Plan Approval 60 23 Issuance of Occupancy Certificate (Applicable to Bhubaneswar Development Authority and other Development Authorities & ULBs 30 24 25 Trade License Water Connection 15 45 26 Conversion of Land Use under master plan 60 September 2015 Slide 41 Timelines for various approvals S. No. Service 27 28 29 Commercial Taxes Registration under VAT Act Registration under CST Act Registration for Profession Tax Industries Department 30 Sanction of incentives under IPR 2015 Time Limit (Working Days) 3 3 3 30 IDCO Decision on Land Allotment within IDCO Estates outside BMC Area 31 Allotment Letter after receipt of recommendation letter from Single Window Authority 30 32 Execution of Lease Agreement subject to compliance of Terms and conditions of allotment 15 33 Issue of Possession Certificate 15 September 2015 Slide 42 Detailed Timelines S. No. Service Time Limit (Working Days) Decision on Land Allotment within IDCO Estates within BMC Area 34 35 36 37 38 39 Allotment Letter after receipt of recommendation from HLCC Execution of Lease Agreement subject to compliance of T & C Issue of Possession Certificate MSME Department Approval of EM-1 Approval of EM-2 Sanction of Interest Subsidy, Capital Investment Subsidy and VAT Reimbursement 30 15 15 1 2 30 40 Directorate of Fire No Objection Certificate 30 41 Conversion of land use in all other areas (except ULBs) 60 42 License under Drug and Cosmetics Act 30 September 2015 Slide 43 Key Links August 2015 Slide 44 Websites Department Website Link Government of Odisha IPICOL IDCO Odisha MSME department GIS based land bank website Tax Registration Online Consent Management System Approvals from Directorate of Factories and Boilers, Odisha http://www.odisha.gov.in/ www.investodisha.org www.idco.in www.msmeodisha.gov.in http://webgis.idco.in/WebGIS.php www.odishatax.gov.in http://odocmms.nic.in/OCMMS/ http://labour.odisha.gov.in/LED/Approva l_of_drawings.html Approvals from Labour Department Registrations under the Directorate of Factories and Boilers http://labdirodisha.gov.in/?q=node/100 http://labour.odisha.gov.in/LED/make_i n_india.html Directorate of Industries http://diodisha.nic.in/ August 2015 Slide 45