Odisha, the mineral-rich eastern state having many capital-intensive industries in the mining and metals sector, has changed track to focus on employment-intensive industries as automation in large industries has taken a toll on job creation.
“Now, we are attempting to attract investment into non-traditional and non-metal/mines sectors. Due to mechanisation and automation in capital-intensive steel, cement and aluminium industries, employment intensity is decreeing, and we are trying to address that,” said Hemant Sharma, Principal Secretary, Industries Department, Government of Odisha.
“So, we have decided to focus on employment-intensive sectors such as textile, technical textile, tourism IT/ITES, agro and food and sea food processing, electronics, chemicals and petrochemicals and new-age sectors,” Mr. Sharma said.
“These sectors are less-capital intensive but more employment intensive,” he added.
Initially, when Tata Steel announced to set up a 3 mtpa steel plant at Kalinganagar at an investment of ₹30,000 crore, the employment was for 15,000 people.
“But when JSW sighed MoU for 12 mtpa steel plant at Paradip they said they could employ 15,000 and recently when ArcelorMittal sighed a MoU for a 12 mtpa plant the employment would be for only 3,000 people,” he said.
“It is happening due to improvement in technology and it is bound to happen. So, we are focusing on low investment but high employment generating sectors,” he said on the sidelines of Make in Odisha Conclave’22.
Mr. Sharma said Page Industries, which has committed to invest ₹65 crore, will provide employment to 6,000 people. Similarly, Aditya Birla Fashion & Retail, which is investigating ₹45 crore in a garment unit will provide employment to 5,000 people.
“So, today for the state government it is not about amount of investment in rupees but it is about the number of employment. So, we are targeting such sectors,” he added.
However, despite the change in focus, a large amount has been committed at the 3rd edition of the MIO Conclave by companies operating in the steel and mines sectors. About ₹10 lakh crore worth Investment Intent letters, led by metals companies, have been received.
“While we attempted to make it more employment intensive, but it still remains capital intensive. Since Odisha has been the destination for mines and mineral industries, we are generating lot of interest. We welcome that because our future prosperity depends on it, but we will keep on focusing on high employment generation” Mr. Sharma added.
