Some important aspects of Orissa Industrial Policy - 2001 

The Industrial Policy Resolution (IPR)-2001 of Orissa was announced on December 03, 2001.   Transforming Orissa into a vibrant industrial state and to promote the image of Orissa as an attractive destination for investment and tourism are two important end-objectives amongst many others. 

Mission of IPR is to :

•  Evolve a business climate conducive to accelerate investment in industry and infrastructure projects;
•  Raise income, employment and economic growth in the state;
•  Reduce regional disparities in economic development.

•  Electronics, telecommunication, information technology and IT enabled services.
•  Agro and marine based industries. 
•  Bio-technology related.
•  Craft related.
•  Tourism related.
•  Mineral based industries including gem cutting and polishing.
•  Fly ash based industries utilising a minimum of 25% by weight of fly ash as base raw-material.

For faster and one point project clearance and also for single point dissemination project related information to help prospective entrepreneurs “SHILPA JYOTI” in IPICOL for medium and large and “SILPA SATHI” in the Directorate of Industries and DICs for tiny and small units are being created.

Incentives :

• Interest subsidy @ 5% per annum for new small industrial units in priority sectors for a period of 5 years from the date of commercial production on term loans availed from any financial institutions/banks.
• Interest subsidy @ 5% per annum for a period of 5 years for small scale industrial units (existing or new) which undertakes modernisation from the date of completion of modernisation on the term loan from any financial institutions.? Interest subsidy to be limited to Rs.20 lakh in case of SSI and Rs.10 lakhs in case of tiny units. 
• Interest subsidy @ 5% of the capital investment or Rs.5 lakh whichever is less for industrial units to be established in the district of Kalahandi, Nuapada, Bolangir, Sonepour, Koraput, Malkangiri, Rayagada, Gajapati and Deogarh as an incentive for backward area development. 
• Exemption of sales tax on finished products of all existing and new Khadi Village Industries, Cottage and Handicraft industrial units when sold at sales outlets of authorised co-operatives/Govt. agency and agencies recognised by KVIC etc.
• 100% refund of CST on inputs and raw-materials for 100% export oriented units.
• Concessional rate of CST for sick units subject to declaration by Industries Department. 
• Assistance to entrepreneur for Patent and Intellectual Property Right with provision of @ 50% of the expenditure upto maximum of Rs.5 lakh. 
• Provision for providing assistance @ 50% of the expenditrue upto maximum of Rs.2 lakh on obtaining Quality Certification from BIS and other internationally recognised institutions by industrial units. 
• Exemption of electricity duty to some industries. 

States’ Plan Outlays Pondicherry

The Annual Plan size for Pondicherry for the year 2002-03 was fixed at Rs.400 crores  at a meeting between Planning Commission Deputy Chairman Shri K.C. Pant and Pondicherry Chief Minister Shri P. Shanmugam.  Pondicherry has been advised to address the problem of low tariff in power and irrigation. 

Nagaland

The Plan outlay for Nagaland for the coming fiscal was fixed at Rs.424 crore in a meeting between Shri K.C. Pant with the Nagaland Chief Minister Shri S.C. Jamir. Nagaland was asked to improve the performance of agriculture sector which had fallen during the 9th Plan.

Mizoram

The Planning Commission approved a core plan size of Rs.430 crore for 2002-2003 for Mizoram, based on the state’s identifiable resources. The Plan size was approved at a meeting between Deputy Chairman, Planning Commission, Shri K.C. Pant and Chief Minister Shri Zoramthanga.  Shri Pant complimented the state for its efforts in improving the state’s finances as also measures to increase revenue and reduce expenditure. 

Jharkhand

The Jharkhand government on 18th February, 2002  presented  a tax-free surplus  budget of Rs.9,411.29 crore for the year 2002-2003. 

Presenting the budget in the assembly, state finance minister Shri MP. Singh estimated the year to end with a surplus of Rs.23.69 crore. This is the second consecutive year that the government has presented a surplus budget. 

The additional one percent tax on computer hardware and software, pickles, vegetable soups, fruit pulps, rickshaw and cycle tyres and tubes, bamboo and bamboo products including  papers has been removed.

Shri Singh said, out of the total budgetary outlay of Rs.9,411.29 crore, approximately Rs.4,100 crore was set aside for plan-expenditure and the rest for non-plan expenditure. The highest allocation of Rs.1,830.22 crore was made for education, art and culture followed by rural development at Rs.1,401.31 crore.  A total of Rs.924.38 crore was proposed to be spent over medical and family welfare, public health, water supply and urban development. 

Andhra Pradesh 

A tax-free budget for 2002-2003, with a nominal net deficit and a fiscal deficit target of 4.5 percent, was presented by Andhra Pradesh finance minister Shri Y. Ramakrishnudu on 21st February,  2002. The deficit worked out to Rs.7,499.31 crore, as against the revised Rs.7,397 crore for the current fiscal. The budget estimates for the current year were Rs.8,897.03 crore and 5.8 percent. 

With a negative opening balance of Rs.18.38 crore, 2002-2003 is expected to end with a negative balance of Rs.85.68 crore. The government has a non-Plan expenditure programme of Rs.28,120.50 crore and Plan expenditure of Rs.11,299.50 crore. 

The government has set up a Rs.75 crore agricultural development fund. A Cabinet sub-committee will draw up plans in agriculture, horticulture, animal husbandary and fisheries.   It will also supervise their implementation. 

Shri Ramakrishnudu announced the setting up of a Rs.10 crore market intervention fund to face the challenges of the WTO regime. Institutional contributions are expected in this fund. He said the Software Technology Park of India would soon establish earth stations at Vijayawada, Tirupati and Waran-gal. 

The APNet Project is ready for launch with a Ku-band transponder and ISRO assistance.   The idea is to help rural areas in distance education, telemedicine, e-governance, etc. He announced the annual plan outlay for 2002-2003 at Rs.10,082.70 crore, as against Rs.8,991.02 crore for  2001-2002.

North-east develops just 1% of hydro-electric power potential

The North-Eastern states account for more than a third of the assessed hydro electric potential in the country but have managed to develop just about 1 percent.  According to a background paper on non-fossil fuel generation the statistics as on January 2002, reveal that the north-eastern states account for a total of 31,857 MW assessed potential at 60 percent load factor (LF).  However, only a meagre 388.5 MW has been developed.   The national average stands at 16.7 percent of potential developed out of the 84,044 MW total assessed hydro electric potential.