By Bizodisha Bureau, Bhubaneswar, March 20, 2017: In a bid to woo investors from the country and abroad, the Odisha government will shortly bring two new policies to encourage investment in aerospace, defence production and automobile sectors.

Industries minister Debi Prasad Mishra on Monday told the state Assembly that the state government would formulate Aerospace and Defence Production Policy and Automobile and Automobile Component Policy in 2017.

Replying the debate on the expenditure relating to his department in the assembly, Mishra clarified, “The state will have two new policies during 2017-18 fiscal to attract investors in these sectors”.

Indian aerospace market is one of the fastest-growing in the world and is driven by India’s expanding consumer base consisting primarily of airlines, businesses and high net worth individuals. With a size of US$ 16 Billion, the Indian civil aviation industry is ranked amongst the top 10 globally. It also presents a US$ 82 Billion market opportunity in 2010-20 cumulatively, official sources said.

Similarly, the Indian auto industry is one of the largest in the world. The industry accounts for 7.1 per cent of the country’s Gross Domestic Product (GDP). The industry has attracted Foreign Direct Investment (FDI) worth US$ 15.79 billion during the period April 2000 to September 2016, according to data released by Department of Industrial Policy and Promotion (DIPP).

According to the Automotive Component Manufacturers Association of India (ACMA), the Indian auto-components industry is expected to register a turnover of US$ 100 billion by 2020 backed by strong exports ranging between US$ 80- US$ 100 billion by 2026, from the current US$ 11.2 billion. The cumulative Foreign Direct Investment (FDI) inflows into the Indian automobile industry during the period April 2000 – September 2016 were recorded at US$ 15.80 billion, as per data by the Department of Industrial Policy and Promotion (DIPP).

The state government has received investment intent of Rs 2.03 lakh crore during the Make In Odisha Conclave in December 2016, Mishra said adding that the state’s new sectoral policies have been highly appreciated by the investors from across the globe.

He said Pharmaceutical Policy, Health care Investment Promotion Policy, Apparel Policy, Biotechnology Policy, Renewable Energy Policy and Startup Policy were formulated before the Make In Odisha Conclave here. These policies could catch attention of the investors. Two new policies on aerospace and automobile sector to be announced during this fiscal would bring good investment for the state, Mishra hoped.

The minister said as many as 126 investors have evinced their interest to set up industries during three mega industrial meet organised by the state government in different places. While 14 investors have proposed to invest Rs 70,959 crore at the Make-In-India Week in Mumbai, 29 investors also came out to set up their units at an investment of Rs 90,670 crore during the Odisha Investors Meet at Bengaluru.

The Industries minister said the state owned IDCOL (Infrastructure Development Company Limited) and IREL (Indian Rare Earth Limited) would sign an MoU in 2017 for setting up Beach Sand Project in a joint venture. This apart some industrial parks would be established during this fiscal, he said.

Mishra said the state government has been making all out effort to include Odisha’s industrial clusters in the East Coast Economic Corridor.