September 08, 2008

Orissa plan for industrialization hit road block

It is reported that kidnapping and release of officials of POSCO by anti land acquisition activists recently may cast a shadow on 62 industrial facilities worth more than INR 300,000 crore planned by the Orissa government. . The delay in implementing big ticket investments is primarily being attributed to the administration's failure to acquire land.

Mr Chang ho Kwag director of POSCO Research Institute said that "This sort of activities would de motivate investors and will create an adverse impact on foreign investments that will not be in the interest of the people and the state. The efforts of the government have been to attract investment. It has to transform MoUs into a reality. Orissa has a long way to go in fructifying such projects."

Mr Sontosh Mohapatra VP of Confederation of Indian Industries said that "This is very unfortunate and sends wrong messages about Orissa, which has a lot of potential for development. All concerned should try and convince those resisting development. Or else, Orissa will lose a great opportunity for growth."

Mr Padmanabha Behera steel and mines minister of Orissa said that violence and abduction incidents would send a bad message to investors and setting up Greenfield projects is a difficult job and some problems will expectedly crop up. Mr Behera Besides said that “Mischief mongers are always there to create obstacles by reiterating the government's commitment to industrialization. There have been problems during land acquisition, but we are trying to resolve the issues. A number of small units have started production. We will sort out issues delaying the mega projects."

It may be noted that Orissa has so far inked pacts with private companies for 46 steel, 3 aluminum and 13 thermal power plants.