In order to promote investments in downstream steel and stainless steel sectors, the industries department of the government of Odisha today held talks with over 70 companies and invited them to invest in the state’s vibrant downstream ecosystem while assuring them of best-in-class infrastructure.
The downstream industry meet held at Tata Steel and Jindal Stainless Ltd was attended by several ancillary firms from Odisha as well as states like Jharkhand, West Bengal, Andhra Pradesh, Kerala and Maharashtra. Addressing these ancillary firms, Mr. Sanjeev Chopra, Principal Secretary, Industries Department highlighted that the state has put in place a comprehensive strategy to accelerate the growth of downstream sector with committed feedstock as well as common facilities.
“A special category has been given to downstream sector in the state’s industrial policy and there is great scope for the growth of the sector in the state. This is an opportune time for the industry to closely look at setting up base at Kalinganagar industrial region. Nearly 10% of the land for large projects has been earmarked for setting up ancillary and downstream industrial facilities. Additionally, basis the nature of investments, the state will provide host of fiscal incentives including power subsidy and various other non-fiscal incentives to the downstream companies,” Mr Chopra said.
The presence of large steel and stainless steel players like Tata Steel, Jindal Stainless Ltd (JSL), Jindal Steel & Power Ltd and Bhushan Steel will ensure that there is no dearth of raw material for the downstream metal sector in Kalinganagar. Opportunities for downstream and ancillary industry exist in areas like equipment manufacturing, foundries, Flat/Cold rolled products, fabrication, machining and precision equipment, appliances & white goods, Auto components, Fasteners and kitchenware.
Speaking about the industrial ecosystem created for the downstream industries in the state, Mr. Sanjay Singh, Chairman-cum-Managing Director, IDCO, said “Ancillary and downstream industry in metal sector is a priority sector for the state. In order to give a boost to this sector, Government of Odisha has developed investment regions and industrial parks including Kalinganagar National Investment and Manufacturing Zone, Downstream Aluminium Park at Angul, Downstream Steel Park at Angul and Stainless Steel Industrial Park at Kalinganagar. These investment zones and industrial parks have been planned in such a way that the downstream industries will have a committed feedstock from the mother plants in the vicinity in addition to world class infrastructure and a vibrant business ecosystem.”
Odisha is the largest stainless steel producing state in the country and has 20% of the country’s crude steel making capacity. With the country’s economy expected to grow rapidly in the near term, the requirement for value added products will multiply thus offering a good potential for downstream development in the steel sector.
Also, according to the norms of the state government, anchor industries are entitled to capital investment subsidy, which is to the tune of 25% of investment made in plant and machinery. Pioneering in single window clearance procedures, Odisha’s Single Window Clearance Authority is also committed to review and dispose all investment proposals in a period of 30 days.