The Business Bytes
Odisha has long served as a cornerstone of India’s metals, mining, and manufacturing sectors. With its vast mineral reserves, the state has historically attracted substantial investments, fostering industrial growth, infrastructure development, and progressive policy reforms. These efforts have created opportunities for both businesses and local communities. Yet, a concerning trend is emerging — several companies are now reconsidering their presence in Odisha, opting instead to explore expansion opportunities in other states.
A case in point is ArcelorMittal Nippon Steel India, which recently acquired land in Andhra Pradesh for a greenfield steel plant, despite maintaining a longstanding presence in Odisha. JSW Steel, too, has chosen to surrender its mining leases in the state, citing operational challenges. While Odisha has made commendable progress, this momentum must not give way to complacency. The need to bolster the ease of doing business and cultivate long-term investor confidence has never been more urgent.
Encouragingly, investments worth ₹1.65 lakh crore were recently approved across Bhadrak, Cuttack, Ganjam, Keonjhar, Khurda, Mayurbhanj, and Rayagada. These projects span critical sectors such as steel, aluminium, power generation, and green hydrogen, and are expected to significantly drive economic growth and generate employment. However, delays continue to plague even marquee projects.
In the past, major players like BPCL and GAIL have faced prolonged land allotment delays and resistance from local communities, often resulting in project overhauls or cancellations. JSW Cement is the latest to experience setbacks, as its expansion project remains stalled due to pending land clearances.
A recurring concern among industry stakeholders is the unpredictability and delays in land acquisition, even for projects that have secured official approvals. These challenges — ranging from procedural inefficiencies to local opposition — disrupt project timelines, inflate costs, and erode business confidence. Notably, it’s not only new investors encountering these issues; existing enterprises are also seeking a regulatory framework that is streamlined, transparent, and predictable to support their long-term operations.
Despite Odisha’s recognition as a ‘Top Achiever’ in the 2022 Business Reforms Action Plan (BRAP), industries continue to grapple with high operational costs, logistical constraints, uncertain access to raw materials, and regulatory bottlenecks. The nodal agency responsible for industrial infrastructure development has put several major projects on hold, including those of IOCL, BPCL, GAIL, JSW Cement, Shiva Cement, and AKM Agro. Many of these companies have already petitioned the state government for swift corrective measures.
Inadequate road and rail connectivity to industrial hubs has further increased operational costs, discouraging new entrants and hampering expansion for existing players. Odisha’s mineral wealth should be a springboard for industrial leadership — not a lost opportunity mired in bureaucratic hurdles.
The withdrawal of POSCO’s landmark project in the previous decade remains a stark reminder of what is at stake. In contrast, states like Tamil Nadu and Maharashtra offer smoother business operations through superior infrastructure and proactive regulatory systems. Odisha must urgently refine its approval and execution mechanisms and address operational inefficiencies to remain competitive.
Investor confidence hinges on stability and predictability. Businesses look for a regulatory climate that supports long-term planning. While Odisha has introduced initiatives like single-window clearances and policy streamlining, significant execution gaps remain. A more consistent land acquisition process, transparent taxation norms, and timely environmental approvals are crucial to winning investor trust.
Learning from progressive states like Andhra Pradesh and Telangana, which have successfully implemented industry-friendly reforms, could provide Odisha with a valuable roadmap for its own transformation.
Despite these challenges, Odisha continues to be a land of immense potential. Over the last two decades, the state has made remarkable strides in infrastructure, employment, and skill development. Recent discoveries indicating gold mining potential further expand its industrial horizon. With the right reforms and an enabling environment, Odisha has the opportunity to position itself as a national leader in mineral-based industries.
The key to sustaining and accelerating this industrial momentum lies in creating a business ecosystem where both new and existing enterprises feel confident to invest and grow. Proactive governance, simplified approval processes, and sustained engagement with industry stakeholders can transform Odisha into a truly investor-friendly destination. By shifting the role of the state from regulator to facilitator, Odisha can unlock the next phase of its industrial growth — dynamic, inclusive, and resilient.
