Invest in Odisha Global Investors India Forum New

Invest in Odisha Global Investors’ India Forum, New Delhi

Coverage Why Odisha? Policy and Ease of Doing Business Framework Investment Opportunities Discussion 2

Why Odisha? 3

1 1 Record 4 terms of uninterrupted leadership Vision 2019 for Industrial Development • 60% increase in manufacturing growth with Yo. Y of 15% • 25% increase in the employment through manufacturing Able and Stable Leadership “To usher in balanced socio economic growth of Odisha that hinges on sustainable development with strong fundamentals of industrial growth, right harnessing of natural resources and actualisation of sustainable employment potential” Naveen Patnaik Chief Minister Odisha 4

2 1 Emerging Investment Destination of the country USD 15. 4 billion of investment proposed, 18 % share of India’s FDI proposals 5

3 1 One of the Fastest Growing Economies Comparative GDP Growth Rate (%) Achieved 8. 78 % GDP growth during 2014 -15, 20% higher than India’s GDP growth rate, and is poised to grow at around 12% by year 2020* *Dun & Bradstreet 6

4 H 1 Heartland of India’s Mineral Deposits • Mineral production of USD 3. 64 billion more than the aggregate value of 21 other Indian States. • Largest Stainless Steel producer in India • 50% of Aluminum Smelting capacity of India • 20% of Steel making capacity in India 7

51 Eastern Gateway to the ASEAN region Network of National and State highways connecting the hinterland of resource- rich regions and mother plants to largest ports on the east coast for easy access to the markets of ASEAN region Paradeep largest in the country in terms of cargo handling capacity, networked with other ports at Dhamra and Gopalpur 8

6 1 Competitive Cost of Doing Business Gujarat Power Tariff: 4. 65 Skilled Labour wage: 7, 618 CPI: 23. 33 Madhya Pradesh Power Tariff: 5. 2 Skilled Labour wage: 8, 735 CPI: 27. 41 Maharashtra Power Tariff: 7. 01 Skilled Labour wage: 7, 988 CPI: 28. 63 Karnataka Power Tariff: 6. 3 Skilled Labour wage: 6, 912 CPI: 25. 57 Rajasthan Power Tariff: 6. 5 Skilled Labour wage: 5, 434 CPI: 25. 6 Uttar Pradesh Power Tariff: 7. 42 Skilled Labour wage: 8, 299 CPI: 24. 28 Jharkhand Power Tariff: 4. 9 Skilled Labour wage: 7, 540 CPI: 24. 33 Chhattisgarh Power Tariff: 5. 34 Skilled Labour wage: 6, 489 CPI: 22. 7 Odisha Power Tariff: 4. 2 Skilled Labour wage: 6, 240 CPI: 22. 07 Andhra Pradesh Power Tariff: 5. 73 Skilled Labour wage: 10, 387. 5 CPI: 27. 02 * Power Tariff in INR/k. Wh, Skilled Labour Wage in INR/Month , CPI is Consumer Price Index of the capital city (For Andhra Pradesh, Vijayawada is considered), sourced from www. numbeo. com 9

71 Bhubaneshwar, the capital, among the most business-friendly destinations 2 nd planned city in the country, ranked among the safest state capitals in the country 3 rd best city in India to do Business (World Bank) 10

81 Robust Industrial Infrastructure Ecosystem Investment Regions • National Investment and Manufacturing Zone at Kaliganagar • Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) at Paradeep • Port based manufacturing zone at Dhamra Sector specific industrial clusters in • Electronic Manufacturing • Aluminum • Plastics • Food Processing • Textiles • Sea food 11

9 • Large pool of skilled manpower o • • Availability of industry-ready manpower 1, 26, 000 technical manpower per annum from 773 technical training institutions Presence of national institutes of higher learning 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) o All India Institute of Medical Sciences Bhubaneshwar (AIIMS) Research institutions o Central Institute of Plastics Engineering and Technology (CIPET), Bhubaneswar o National Research Centre for Water Technology, Bhubaneswar o Central Research Rice Institute, Cuttack o Central Institute of Freshwater Aquaculture, Bhubaneswar o NISER (National Institute of Science, Education & Research 12

10 Destination for the Leaders and many more…. . 13

Policy and Ease of Doing Business Framework 14

Key priority sectors identified in IPR 2015 Industrial Policy of Odisha identifies 21 Priority Sectors. Some of them include: ANCILLARY & DOWNSTREAM INDUSTRIES AGRO, FOOD and SEA FOOD PROCESSING IT and ELECTRONICS MANUFACTURING PETROLEUM, CHEMICALS, PETROCHEMICALS, PLASTICS & POLYMERS AUTOMOBILES & AUTO COMPONENTS TEXTILES including TECHNICAL TEXTILES 15

Incentives…. Special incentives for employment – intensive units Committed 24*7 power, dedicated industrial feeders Land bank of 75, 000 acres for industrial use Anchor Tenant incentives on land cost and tax reimbursement Dedicated Industrial Infrastructure Development Fund with an initial corpus of Rs. 100 crore and Capital investment subsidy for Private industrial estates 10% of land in industrial parks earmarked for ancillary industries and vendors Fiscal incentives in terms of Capital subsidy for Plants and Machinery, stamp duty exemption, interest subsidy, energy duty exemption, reimbursement of Value Added Tax 16

Ease of Doing Business in Odisha 1 2 3 4 5 Dedicated Facilitation Cells Odisha Industrial Facilitation Act Central Inspection Framework Labour Reforms Online Consent Management 6 Timelines for Approvals 17

Ease of Doing Business in Odisha Timelines for Approvals Disposal of Application 15 days (Green Category) Registering a Business 30 days Final Project Approval within 30 days for Other Industries Final Project Approval within 15 days Allotment of land by Government Environmental Approvals Registration under various Labour Acts Electricity Connection Time Limits under Facilitation Act (days) Earlier Revised 7 1 -3 65 30 60 -120 30 -60 - 15 60++ 15 -30 42 services concerning industrial approvals included under Right to Public Services 18

An ‘Aspiring Leader’ for Eo. DB reforms* • One of the top 5 States with 71. 43% compliance for setting up of business • Ranked 4 th in the country for compliance in tax procedures with 85. 29% compliance • One of the only 3 States to provide Single Tax ID for all State Taxes • Online payment for all State taxes applicable in the State • One amongst 3 States to offer all three facilities of Auto-renewal of Consent to Establish and Operate (under Water Act, 1974 and Air Act, 1981) based on self-certification/third party certification and Consent to Operate provided for a period of 5 years or more *World Bank Report on ‘Assessment of State Implementation of Business Reforms’ – Sep 2015 19

Investment Opportunities A. Electronics Manufacturing B. Petroleum, Petrochemicals and Chemicals C. Integrated Manufacturing Zone D. Ancillary and Downstream E. Agro and Sea Food Processing 20

A Infovalley Electronic Manufacturing Cluster Bhubaneshwar Project: 216 acres of exclusive ecosystem for ESDM sector, with total investment of over USD 155 million and employment potential for more than 12, 000 personnel Ecosystem: Part of the larger Infovalley Ecosystem at Bhubaneswar, capital city of Odisha. Co-located with major IT players and software developers complemented with residential and commercial facilities Special Purpose Vehicle (SPV): An exclusive SPV for quick implementation, entrepreneurs setting up units in the park automatically become part of the SPV. Quality infrastructure: Availability of 24 x 7 power and environmental infrastructure. Connectivity: National Highway 5: 3 km, Bhubaneswar Airport: 22 km Ready to move facility: 25, 000 sq. m of factories with ready to move in facilities Exclusive Common Facility Centre: Testing & Measurement, Rapid Prototyping, EMI/EMC Lab, Reliability and Component Testing Lab, Calibration Lab Skill Development Centre: Exclusive Training Centre for the ESDM industry with state-of-the-art equipment and modern classrooms Investment Opportunities in: § § § Electronic Products Electronic components Semiconductor design and fabrication Equipment manufacturing EMS services 21

Special Incentive Package Scheme for ESDM Sector Capital Investment Subsidy Scheme for Large and Mega ESDM projects* z 25% on Fixed Capital Investment for plant and machinery subject to maximum of Rs. 50 crore Entry Tax Exemption on machinery and equipment for a period of 3 years from registration Human Capital Investment Subsidy Upto Rs. 800 person per month to be reimbursed Reimbursement of expenditure towards ESI and EPF subject to maximum of Rs. 2 crore Sales Tax and VAT reimbursement 100% reimbursement for a period of 5 years limited to 100% of the fixed capital investment Power and Water Exemption from electricity duty and water duty Interest Subsidy 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 minimum investment of Rs. 200 crore and generate an employment of minimum 500 persons at the time of starting the production and create and employment opportunity for more than 2, 000 persons in 5 years. 22

B Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR), Paradip Project: Over 68, 000 acres (275 Sq. km) of development focused on Petroleum, Chemicals and Petrochemicals, one of the only 4 PCPIRs in India. Investment of approx. USD 43. 74 billion in numerous sectors such as Petroleum & Petro -Chemicals Sector, Chemicals & Fertilizers, Ancillary Sectors, Housing & Allied Infrastructure and External Infrastructure. Special Purpose Vehicle (SPV): Exclusive SPV “Paradeep Investment Region Development Limited” for quick implementation of the project. Anchor Tenant: Indian Oil Corporation Limited (IOCL), India’s biggest state-owned oil and gas corporation as the Anchor Tenant with 15 MMTPA grass root refinery Investment Opportunities in: Ecosystem attractiveness: Petrochemicals feedstock potential from IOCL refinery: • 700 KTA Polypropylene plant by 2017 • 400 KTA Mono Ethylene Glycol plant by 2019 • 200 KTA Paraxylene –PTA Complex by 2020 • 1250 KTA Petcoke based synthetic ethanol by 2021 Logistics Hub: Multi-modal Logistics Park developed by CONCOR over an area of 60 acres inside the PCPIR. § Petroleum, Chemicals and Petrochemicals units § Downstream industries and clusters § PPP based development of physical infrastructure of over USD 2 billion in road, power, water supply, jetty etc. § Development of social infrastructure viz. housing, commercial, recreational facilities on 23 PPP basis

C Kalinganagar National Investment and Manufacturing Zone Project: Over 40, 000 acres (163 Sq. km) of integrated development as a manufacturing zone in vicinity of existing steel plants with strong backward/forward linkages Ecosystem: 9 established steel manufacturing companies spread across 14, 000 acres with a capacity of 10 MT per annum Infrastructure framework: Robust infrastructure facilities comprising newly built water supply & drainage facilities, power infrastructure, solid waste and sewage treatment facilities, etc. Research & Development and Skill Availability: A research & development center along with skill development and training center for enhancing efficiency and ensuring continuous skill availability respectively Downstream opportunities: Unique opportunities for ancillary and downstream industrial development in the vicinity Enhanced competitiveness: Low cost of land proximity to raw materials Investment Opportunities in: § § § Fabrication of Metal products Auto and Auto component manufacturing Electrical Machinery and Equipment Ancillary and downstream products Infrastructure Development 24

D Aluminium Park, Angul Project: 223 acres of exclusive ecosystem for downstream and ancillary set up through a joint venture between Government of Odisha and NALCO. First of its kind project in the Indian sub–continent with a facility for directly obtaining molten aluminium from the smelter. Connectivity: • National Highway 5 -A: 2. 5 km • Rail connectivity at Paradeep: 3 km • Paradeep IOCL Refinery: 5 km • Paradeep Port: 10 km Exclusive Common Facilities: Development of Aluminium Product Evaluation Centre (APEC) with full-fledged testing facilities, simulation and evaluation facilities, prototype development facilities, tool room, process hall, etc. Logistics Facilities: Logistics infrastructure facility, Loading and unloading docks, secured parking lots, and 24/7 surveillance system Business Centre: Park administration, security and service facilities, conference, convention, display and trade facilitation services. Investment Opportunities in: Downstream Industries in Aluminium • Conductors • Extrusions • Castings • Foils Ancillary Industries (Raw Material Inputs) • Calcined Petroleum • Special Refractory Bricks • Cryolite • Caustic Soda • Aluminium Fluoride 25

E Seafood Park, Deras Project: Spread across 150 acres with projected investment of USD 22 million, exclusive park for seafood/marine products. Only such facility on the east coast of India. Facilities: State-of-the-art Central Processing Center hub with enabling infrastructure, pre-processing units, cold storage and packaging facilities. Primary Processing Centers and Collection Centers in catchment area of 100 -200 km Connectivity: • National Highway-5: 15 km • Bhubaneswar Railway Station: 28 km • Sea port at Paradeep: 140 km • Bhubaneswar Airport: 19 km Special Purpose Vehicle (SPV): A SPV with established units as members looks after the Operation and Maintenance of the common infrastructure established along with providing requisite technical and extension services Investment Opportunities in: • Integrated shrimp farming and processing • Pre-processing units • Packaged food • Raw processing • Cutting machinery and technology • Freezing systems 26

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