Thursday, May 17, 2007

Tathya: Turn at KBK for industry

While Orissa is witnessing an unprecedented boom in industrial growth recently, industrial prospects of KBK area looks bleak.

Except few mineral based industries none of the other industries seems to be interested in the backward region of the state.

How ever the State Government in its Industrial Policy-2007 have announced special incentives for non-mineral based new industrial units to be located in KBK region along with Kandhamal, Gajapati and Mayurbhanj.

But this is not enough.

There are many possibilities to bring industries to this large backward cluster but it needs strong commitments by our policy makers and political leaders.

This backward region suffers major bottle neck of infrastructure.

Emphasis should be given by the state government in such a way that industrialists are convinced to invest in KBK region.

State government has already signed 43 MOUs only in the steel sector; if these are actually implemented then it is quite enough for a state like Orissa.

Therefore, now the Government of Orissa should modify a bit the exiting rule for steel industry putting a new clause that any new proposal to establish steel industry in the state will be considered only if it would be located in KBK region or other no major industries districts like Kandhamal, Gajapati or Mayurbhanj district, otherwise mining rights would not be provided.

For growth of down stream industries in KBK region NALCO, Vedanta Alumina Ltd, and Utkal Alumina Ltd should be encouraged to establish industrial park at Koraput, Bhawanipatan and Rayagada respectively rather in non-KBK region.


KBK region has the higher potential for generating electricity through hydroelectricity project that needs construction of new dams.

However it needs huge amount of investment that the state government might not commit in a single instance, therefore private players should be encouraged to establish dam for hydroelectricity generation and irrigation purposes in this region.


IT and BPO has generated huge employment in India recently.

Bhubaneswar is already emerging as an IT and ITES destination in the country.

In the next step the state government should expand these industries to other parts of the state.

There are already plan for expanding IT parks in Rourkela and Berhampur.

Keeping geographical location and future growth of KBK region in mind, the state government should establish at least three IT parks in Koraput, Bhawanipatna and Balangir for the whole region for IT, BPO and KPO industries.

Establishment of three real universities in the region would benefit these industries.


As such KBK region has great potential for biotechnology, especially, for agricultural biotechnology, herbal biotechnology and medicinal biotechnology.

Plantation of herbal plants and agricultural biotechnology in this region would be much beneficial.

KBK region could be a very good source of ethanol from not only agriculture but also from the forest.

Mahul a locally known forest flower that is used to make local wine) could be a good source for ethanol and methanol.

Though wine is locally discouraged, nevertheless it can be used for industrial growth to export out side the country.

The export market of Indian made wine and beer is flourishing recently.

Orissa should encourage such activity by inviting major industrialists to invest in wine and food processing market.

We must explore the possibility of local made products for export market, so that it will benefit the state government to generate more tax.

And local people including those tribal people who collect Mahul from the forest for making local wine, who are paid much lesswill also be benefitted.

The region would also be a good source for bio-diesel and bio-fuel production.

Therefore, the state government should establish biotechnology parks in the three major towns such as Bhawanipatna, Koraput and Balangir to explore all the above possibilities in KBK region.


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