By Vivek Pattanayak* in Bhubaneswar, January 19, 2017 : For the past the several weeks and months throughout India, the events are being organized to attract investment to different places of the country under different templates, banners and names by use of lofty expressions like “vibrant”, “resurgent”, “unique opportunities” and sometimes at the initiative of governments with considerable expenditure from the government budget, also on some occasions with the outlay by mainstream media with support of advertisements of corporate houses, and in collaboration with non-governmental bodies, and on many occasions by association of professional bodies, and chambers of commerce.

Familiar faces of chief ministers, finance ministers, industry ministers, secretaries to government, chief executives of Banks and financial institutions, top managers of PSUs and front ranking corporate honchos and non-resident Indians are seen at these conclaves and meets. Occasionally, the prime minister and central ministers address these congregations. Attractive presentations are made highlighting the policies and opportunities with plethora of excellent pamphlets, booklets and cassettes.

Odisha is no exception. Teams from Odisha had been to Bengaluru, Kolkota, Hyderabad, Mumbai, and Delhi. There was a “Make in Odisha” conclave at Bhubaneswar with exhibitions, addresses, presentations, speeches, panel discussions, and exchange of views in private and informal get-togethers. Praises have been showered by participants on the political government, permanent bureaucracy and promoting institutions. Notwithstanding these encomiums there is no shortage of incisive criticisms in the local media and private drawing room tete-a-tete among educated gentry about these events and their outcome.

Any dispassionate observer will find that a flurry of activities have taken place at the Odisha government level in matters relating to policy issues. The State government launched its new Industrial Policy in 2015 followed by eight sectoral policies covering apparel, MSME development, food processing, renewable energy, tourism, pharmaceuticals, healthcare investment, and biotechnology having already taken action on announcing Information Communication Technology, SEZ and fishery policies.

In line with the much publicized central government policy on “ease of doing business”, the State government has taken robust steps in reviewing the existing procedures and delineating a framework leveraging technology with a view to reducing human interface which according to some is perhaps the most attractive in the country. This is certainly the first and fore most steps a government can take before starting programme of industrialization.

In last many years undoubtedly a number of MOUs have been signed with business houses for establishment industrial projects. Out of 92 MOU units, as many as 46 units have gone into production with an investment of Rs 2,53,789 crores. This is no mean achievement for which the government, entrepreneurs and people of the State should legitimately take credit in spite of hurdles which are encountered during land acquisition, environmental and forest clearances, legitimate civil society activism, penetrating media scrutiny and occasional judicial interventions.

Tata Steel Plant at Kalinganagar

A visit to the areas around Kalinganagar, Angul, Jharsuguda, and Balasore and Gopalpur will give an excellent idea about the extent of industrial activities which have taken place. However, a striking feature of these industrial investments is that a ratio between capital outlay and employment generation may encourage the critics to point out that it has not given scope for large creation of jobs directly although there is visible sign of employment through service sector associated with these projects. However, other types of gains have come to the State through generation of revenues direct or indirect.

Very often comparison is made with past with regard to industrial climate for investment. First, one must recognize that the world has changed in the last thirty five to forty years beyond recognition. Undoubtedly, liberalization in economic policy has taken place which by itself is a big game-changer with regard to “ease of doing business”.

There has been spectacular innovation in technology of communication with advent of internet, use of computer, Skype, IPhone, Tablet, Whatsapp, Facebook, and video conferencing etc. Air connectivity which facilitates business has vastly improved in last ten years. Automobiles have simply exploded.

At the same time there is mammoth growth of political consciousness among people in all rungs of society, accompanied by demand for increasing scrutiny of decision-making, transparency in public institutions, constant accountability from the civil servants, emergence of hounding 24/7 electronic media, stupendous growth of doctrine of public interest litigation, vigilant civil society, increase of regulatory and investigating bodies and powerful constitutional audit machinery.

These developments have their consequential impact on the execution of projects. That there are 211 projects with possible investment of Rs 5,48,852 crore are under various stages of implementation symbolize patience of entrepreneurs and positive spirit in the corridors of government. A discerning individual would now understand why big behemoths like POSCO and Mittal have not succeeded.

The industrial climate in Odisha is part of investment climate in India affected by the global business climate. Brexit and Trump cannot reverse the globalization process. If the interconnected world economy is stagnant, it will affect India and also Odisha. Challenge of India is finding jobs for 1.2 million young people every year. Odisha has a share of it. In spite of all the systemic obstacles, a pragmatist would endeavour to find a way out.

In spite of chasing big projects whose capital employment ratio is unattractive, in short term the emphasis should be given on micro, small, and medium enterprises(MSME),which would give more employment, would contribute handsomely to GDP and earn substantial foreign exchange.This would be possible with less investment, hassle free land acquisition, absence of tortuousenvironment and forest clearances.

What is true of MSME sector it is even truer for tourism and hospitality industry. Odisha has natural tourist destinations. A hundred fifty hotels in next five years in private or public sector and access to these places by road or by air are distinctly possible and most eminently doable. What is needed is political will and bureaucratic commitment.

(*Former member of the Indian Administrative Service and also International Civil Service)