The components of Bhubaneswar city’s economy varies from horticulture, agriculture, sericulture, minerals sector, agro-based and engineering industries. IT (Information Technology) enabled services along with tourism and handloom industry also comprises a significant share of the economy. Recently many big companies which include Infosys, TCS, Mahindra Satyam, Genpact, Tata Power & Steel, Jindal Power & Steel, Aditya Birla Group, Reliance Energy, Balasore Alloys, IMFA, GMR, Vedanta, NTPC, NALCO, SAIL, Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and many others have invested in the city.
With a rating of 9.14 per cent, Odisha has emerged as a leading state in economic growth rate. Rapid industrialisation and increase in growth of services sector activities has resulted into increasing disposable income, favourable demographics, changing lifestyles and growth of population.
Odisha Investment Scenario
Investment worth Rs. 2.15 lakh crore have grounded in Odisha from industries that have signed memorandum of understanding (MoU) with the state government. The state government has signed MoU’s with 93 players with steel sector leading the pack at 48. Other MoUs include 28 in the power sector, three in aluminium, four each in cement and ports and the rest for creation of downstream units. The MoU signed players had committed investments of Rs. 8 lakh crore of which Rs. 2.15 lakh crore has already been grounded. Investments worth Rs. 1.09 lakh crore have grounded in the steel sector alone. As many as 50 steel investors had signed MoUs with the state government, envisaging a steel capacity of 79.82 million tonne and committing investments worth Rs. 2.22 lakh crore.
In the power sector, the independent power producers (IPPs) have invested Rs. 32,991 crore on their proposed coal-fired projects in Odisha. Among the 28 players that have inked pacts with the state government, 2 have commenced commercial production - Vedanta Group firm Sesa Sterlite and GMR Kamalanga Energy Ltd. The IPPs that have made substantial investments on their projects are JITPL (Rs. 4564.26 crore), Monnet Power Company Ltd. (Rs. 4100 crore), Lanco Babandh Power Ltd. (Rs. 4850 crore) and Ind-Barath Energy Utkal Ltd. (Rs. 2954 crore).
In the aluminium sector, the state government had inked pacts with three players – Vedanta Aluminium (now Sesa Sterlite), Adity Aluminium and home grown RSB Metaltech Ltd. of these, Sesa Sterlite has invested over Rs. 40,000 crore on its alumina refinery at Lanjigarh and smelting facility at Jharsuguda.