With the process of establishment of ultra-mega and heavy industries gaining a steady foothold, Orissa has now trained its eyes on ancillarisation to promote value addition to the output of mother firms.On Tuesday, Team Orissa under the Industrial Promotion and Investment Corporation of Orissa ltd (IPICOL) played host to a delegation of industrialists and entrepreneurs from states like Haryana, Gujarat, Madhya Pradesh and Uttar Pradesh. Around 11 industrialists with specialisation in stainless steel finished products are on a three-day visit to the State to explore opportunities in Stainless Steel sector here.
While the proposed Jindal Stainless Steel Downstream Park (SEZ) at Kalinga Nagar is the focus, the State is also promoting the Choudwar Industrial estate to the visitors. It is also pushing Somnathpur Industrial Estate at Balasore, Rourkela, Sambalpur, Paradip and Dhamra regions for establishment of ancillary industries.
The Stainless Steel SEZ is proposed to be set up over 300 acres around the 1.6 mtpa steel plant project of Jindal Stainless and would house industries to move up the value chain churning out specific products for different sectors. Investment in the SEZ is envisaged to be to the tune of Rs 1,500 crore.
Showcasing the opportunities, Director of Industries Hemant Sharma said that the potential for industrial growth in the sector was immense considering the number of steel plants and capacity addition coupled with availability of infrastructure like land, water, cheap and easy power and connectivity.A study conducted by the JSSL and international consultancy firm CB Richard Elis has pointed out that the precision cold rolling, pipes and tubes, auto components, engineering products, kitchenware and lifestyle products held much promise.
The advantages of setting up projects in Orissa were manifold as it was at the core of emerging markets in Eastern India comprising West Bengal, Jharkhand, Chhattisgarh and North east. It was also the gateway to the South East Asian Countries in terms of exports.The State Government had lined up a comprehensive package including incentives and concessions to promote the ancillary enterprises, Sharma said.
Asserting the profitability of the ventures here, CEO of Jindal Stainless Steel Ltd SS Virdi stated that applications of steel were the fastest growing among all metals as per capital consumption (PCC) is on rise. In India PCC is only 1.1 kg against 15 to 20 kg in developed nations.
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