Orissa News

Orissa Industrial Scenario


Orissa occupies an important position both in terms of deposit and production of many minerals. Vast and diverse mineral deposits of iron ore, coal and aluminium make Orissa one of the largest minerals bearing States in India. In fact the state boasts of 16.92% of the total reserves of the country. Mineral reserve of Orissa in respect of Chromite, Nickel ore, Graphite, Bauxite, Iron ore, Manganese and Coal is about 97.37%, 95.10%, 76.67%, 49.74%, 33.91%, 28.56% and 27.59% respectively of the total deposits in India. Mentioned here in is a list showing the different minerals found in the state and their estimated reserves:



Total reserves in 2004-05 (billion tones)








Iron Ore




















Lime stone










Fire Clay





Nickel Ore





Quartz,quartzite & silica





Mineral sands










Manganese ores




Types of Industries in Orissa

The entire industrial structure of the state can be divided into following categories

  • Large-scale heavy industries
  • Large-scale industries
  • Small Scale Industries
  • Cottage industries.

Large Scale Heavy Industries in Orissa

The large scale heavy industry segment include the industrial units that need massive capital investment and include iron and steel industry, aluminum, cement, ferromanganese, Ferro-chrome, galvanized pipe units, steel rolling mills, fertilizer plants and thermal and power projects.


Cement is the most important constituent of the building materials. Orissa has 2.224 billion tons of proven limestone reserves (Cement grade limestone & clay form the raw material for the production of cement). Also the substantial production of BF slag and Fly Ash ensure that quality blended cement are also produced in Orissa. One of the earliest cement factory to have started operations in the state was the factory at Rajgangpur, named as the Orissa Cement Ltd., that was established in pursuance of an agreement in December 1948, between the state of Orissa and M/s Dalmia Jain Agencies Ltd. This factory is raw material based and gets its supplies from the Raibaga, Rajgapur and Panposh area. There is another cement factory located in the adjoining district of Sambalpur at Bardol near Bargarh which is run by the Industrial Development Corporation of Orissa (IDCO) named the ‘The Hira cement Works’. These two factories have a proven annual capacity of 771,000 tones. Another cement factory has been established at Rourkela that is based on slag from the steel plant and produces blended cement. Another cement factory is operating at Hirakud based on cement grade limestone from the nearby regions.

The major cement units in Orissa are ACC – IDCOL, Ultra Tech – Grasim, Shiva Cement, Chariot Cement, Sita Cement, OCL India, etc. Besides, a few proposals of Grasim, ASO Cement besides the expansion of Chariot Cement, ACC, etc are the project developments in the region. Three MOUs have been signed for 5 mtpa capacity addition in cement making utilizing fly ash and blast furnace slag through Greenfield projects by Grasim & ASO Cement & Brownfield expansion by Orissa Cement Limited.

Indian Rare Earths Limited

Set up at by the Atomic Energy Commission in the Gopalpur in 1978, the Indian rare Earths Limited extracts Titanium from the beaches of Goplapur. The company that produces 4.5 lakh tonnes of ilmenite and other associated minerals in the sandy beaches of Goplapur is slated to increase the production to 6.5 lakh tones shortly and further to one million tones in a couple of years with an investment of Rs. 50 Crore. IREL is also focusing on the strategic activities connected with the atomic energy program in this unit in Gopalpur. A monazite processing plant with an investment of Rs 90 crore to produce rare earth chemicals and recover thorium and uranium will also commence operation in the Goplapur plant.

Ceramic Glass and Refractory Units

Ceramic industry specializes in the production of glass. The raw material needed in this industry for the production of glass is silica, soda, and limestone. Coloring agents like chromite and cobalt are also used.

Ceramic Glass refractory units are located in Khansbahal in Sambalpur, Rajgangpur near Rourkela in the Sundargarh district and Latikata in Sundargarh. While other refractories are also present in Rourkela, Belpahad and Jahrmigudi. The ceramic plant by OCL in Rajgangpur is the largest in the state followed by Manishree Refractories and ceramics of Khansbahal and the Orissa Industries Limited (OIL) at Lathikata . These three refractories meet most of the demand for glass of the state.

Mineral Based Industries in Orissa

Steel Industries in Orissa

With over 25% of India's iron ore reserves, Orissa accounts for over 10% of India's steel production capacity and has a crucial advantage in the iron & steel industry. Further, the presence of seaports in the state makes exports and imports cost effective and more competitive. The government has been taking steps to promote the iron & steel industry in the state. Prominent players present in Orissa's steel industry are SAIL and Neelachal Ispat Nigam limited. Rourkela Steel Plant (RSP), the first integrated steel plant in the Public Sector in India, was set up with German collaboration with an installed capacity of 1 million tonnes. The plant has a capacity to produce 1.9 million tonnes of crude steel and was expanded and modernized in the mid 1990,s.. Its another unit is located in Barbil in Keonjhar. The other iron industry of the state is located at Barbil in Keonjhar district. Nilachal Ispat Nigam Limited has a fully operational steel plant at Duburi in Jajpur district. Jinadal Steel plant in Jharsuguda.

The government of Orissa has signed MOU for setting up as many as 52 steel plants in the state as early as 2005..Many of these are operational now are waiting completion in the near future. Mentioned below is a list of these:

Name of the Company



M/s Bhushan Group of Companies , Sambalpur Phase-I- 1.2 1650 15.05.2002 Phase-II- 1.6 1850  



M/s Aarti Steels Ltd Ghantikhal



M/s Neepaz Metalicks (P) Ltd Chadrihariharpur



M/s Scaw Industries (P) Ltd



M/s Deo Mines & Mineral (P) Ltd



M/s Visa Industries Ltd



M/s SMC Power Generation Ltd



M/s Shyam DRI Power Ltd Pandoli



M/s Sun-Flag Special Steels Ltd.



M/s Orissa Sponge Iron Ltd.

Gurla, Govindpur


M/s SPS Sponge Iron Ltd.

Badmal Growth Centre


Kalinganagar Industrial Complex



M/s OCL India Ltd.



M/s AML Steel & Power Ltd.

Kalinganagar Industrial Complex, Duburi


M/s Maheswary Ispat (P) Ltd.

Rampei, Khuntuni


M/s Monnet Ispat Ltd.



M/s Aryan Ispat & power (P)Ltd.



M/s Maithan Ispat  Ltd.

Kalinganagar Industrial Complex, Duburi


M/s Sree Metaliks Ltd. Loidapada



M/s MSP Metalicks (P) Ltd.



M/s Action Ispat & Power (P) Ltd.

Pandiripathar & Marakuta


M/s Agrim Steel Industries Ltd.



M/s Tube Investment India  Ltd

Kalinganagar Industrial Complex, Duburi


M/s Patnaik Steel & Alloys Ltd

Purunapani, Joda


M/s Rathi Udyog Ltd.



M/s Viraj Steel & Energy Ltd

Gurupali, Pandaloi


M/s Deepak Steels & Power Ltd. 

Topodih, Barbil


M/s Konark Ispat Ltd.



M/s Beekay Steel & Power Ltd

Uliburu, Barbil


M/s BRG Iron & Steel Co. (P)  Ltd



M/s Jain Sponge (P) Ltd



M/s Jindal Stainless Ltd.



M/s Rungta Mines  Ltd.

Kamando, near Koira, Sundargarh and Jharaband

Dhenkanal (1 MTPA each)

M/s Stats Steel India (P) Ltd.



M/s Brand Alloys Ltd.



M/s Eastern Steels & Power Ltd.



M/s Jai Balaji Jyoti Steels Ltd.  Sundargarh

Tanisar, near Lathikata





Mega Projects







M/s TATA Iron & Steel Co. Ltd

Kalinganagar Industrial Complex, Duburi


M/s Sterlite Iron and Steel Company  Ltd.



M/s Hy-Grade Pellets Ltd. (ESSAR Group)



M/s POSCO India Project (P) Ltd.



M/s Jindal Steel & Power Ltd. 

Benefication Plant at Deojhar,


M/s Jindal Steel & Power Ltd.

Steel Plant at Angul


M/s Bhushan Steel & Strips Ltd.



Aluminium mines in Orissa

Orissa is the largest producer of aluminium in India. In 2005-06, it produced over 415,000 tonnes of aluminium, representing around half of India's total aluminium production, Orissa's key advantage for aluminium industry is the fact that the state accounts for half of India's bauxite reserves. Its location makes it close to the Chinese and South East Asian markets and the presence of large ports makes it easier to access large export markets.

Prominent players in the aluminum industry in Orissa are NALCO and HINDALCO. NALCO is expanding its aluminium capacity from 218,000 TPA to 345,000 TPA. HINDALCO at Hirakud has already expanded their Aluminium smelting capacity from 65,000 TPA to 100,000 TPA. The installed capacity is being further increased to 146,000 TPA.Utkal Alumina, a joint venture between AV Birla Group and Alcan, Canada, is setting up a 1.5 MT aluminum project with an investment of over Rs.10,725 crores. Vedanta Alumina that set up a 1MT alumina project at Lanjigarh in Kalahandi district of the state at a cost of nearly Rs.4000.00 crores is fully operational now.

NALCO was set up at Bhubaneswar in 1981 in collaboration with Aluminum Pechiney of France. It is an integrated alumina /aluminum complex. This plant is one of the most modern in the world and the biggest in Asia and is located in Angul. After it started production, India has not only become self-sufficient in aluminum production but has started exporting. Port facilities for export of bauxite, alumina and aluminum are available at Visakhapatnam and Paradeep. The second aluminum plant of NALCO in the state runs in Damanjodi smelting/refining bauxite ore, with a plant capacity of 0.8 million tonnes per annum. It is located at the foothills of the Panchpatmali. NALCO's captive power plant is located at Angul to which 2.4 million tonnes of coal is being supplied from Talcher.

Ferro Manganese plants of Orissa

There are two big Ferro Manganese plants in operation in the State. First Ferro-Manganese plant located at Joda in Keonjhar District is run by The Tata Iron & Steel Co. Ltd. The second plant at Rayagada in Koraput District is managed by Jeypore Sugar Co. Ltd. Both the plants get power from Hirakud Machhakund Hydro-electric projects.

A Ferro Silicon plant in Theruveli; about 20 kms from Rayagada in Koraput started in 1967. A Silicon Carbide plant is established at Theruveli to manufacture Silicon carbide. Two main companies engaged in manufacturing Ferro-Alloys are Indian Metal & Ferro Alloys Ltd.; manufacturer of Ferro Chrome and Krishna Ferro Products Ltd.; situated in the Rourkela Industrial Town. Another Ferro-chrome plant at Jajpur road run by the IMFA group is operating in Jajpur while a pig iron plant at Badbil runs in the Kronjahr district. All these plants are ore-based as the ore is bulky and cheap.

Power Plants in Orissa

Orissa is the ideal location of Thermal Power Projects. Large coal reserves in Talcher-IB Valley Coalfields of Mahanandi Coalfields Ltd. and abundant water in Hirakud and Rengali reservoirs in close proximity of the coal mines make these locations perhaps the best sites for pit-head power plants in the country. Unlike most States in the country, Orissa is at present surplus in power and with careful planning already undertaken, it will remain so despite speedy growth of industrialization during the coming decades.

The distribution of electricity in the state had been privatized long back from 1996. Other pioneering reforms in the power sector include efficient billing system, installation of electric meters, and reduction of losses.

Hydel Power projects in Orissa

Hydropower is the capture of the energy of moving water for some useful purpose. Prior to the widespread availability of commercial electric power, hydropower was used for irrigation, milling of grain, textile manufacture, and the operation of sawmills.

Consequent to the reform in power sector in Orissa, Orissa Hydro Power Corporation was incorporated in 21 st April 1995 under the companies Act 1956. Its objective are To acquire, establish, operate, maintain, renovate, modernize hydro electric generating stations in the State:

                           Hydro Power Projects in Orissa

Under Operation

Hirakud -I (Burla)

259.5 MW

Hirakud -II (Chipilma)

72 MW


360 MW


250 MW

Upper Kolab

320 MW

Upper Indravati

600 MW


114.75 MW

Under Construction

Potteru Small HE Project

6 MW

Under Expansion

Balimela Extension Project

150 MW (Additions Proposed)

Identified for Future Implementation

Chipilma - B

4 x 50 MW

Hirakud - B

4 x 52 MW

Sindhol Complex

16 x 20 MW

Thermal Power Plants in Orissa

The country today has more than 125 GW of installed capacity. However, it is far from adequate to meet the growing demand for power. There is, therefore, an immense potential for the power sector to grow. Growth in power supply will give greater impetus to all-round economic growth and this in turn, will further fuel demand for power.

Orissa Power Generation Corporation Limited (OPGC) was incorporated on November 14, 1984. OPGC started as a wholly owned Government Company of the State of Orissa with the main objective of establishing, operating & maintaining large Thermal power generating stations.


Power Station [ownership]

Installed Capacity [MW]

State Sector Plants



4 X 60 = 240


2 X 110 = 220

Ib Valley (I & II)(OPGC)

2 X 210 = 420

Proposed thermal plants for which MOU’s have been signed by the government of Orissa.


Sl. No

Name of the Company


Mahanadi Aban Power Co.

Mangalpur, Dhenkanal

GMR Energy Ltd.

Kamalanga, Angul

Sterlite Energy Ltd.

Bhurkhamunda, Jharsuguda



Tata Power Co. Ltd

Naraj, Marthapur, Cuttack

KVK Nilachal Power (P) Ltd.

Kamalanga, Angul

Monnet Ispat & Energy Ltd.


Essar Power Ltd.

Talcher, Angul

Jindal Photo Films Ltd.

Pirhasahi, Angul


Bhushan Energy Ltd.



Visa Power Ltd.



Lanco Group Ltd.

Talcher, Angul


Navbharat Power Pvt. Ltd.


Fertilizer Plants in Orissa

There are a few big fertilizer plants in Orissa. These are

  • Paradeep Phosphates Limited - Asia's largest DAP fertilizer Plant in Paradeep.
  • Rourkela Fertiliser Plant - Set up to utilize the residue, by products and surplus gas from the Rourkela Steel Plant.
  • The Orissa Fertilizer and Chemical Limited is located near Kalunga, Sundargarh . The capacity of this fertilizer plant is 45,000 tones per annum.
  • The fourth plant is based in Talcher in Dhenkanal District. It produces 495,000 tones of Urea and 228,000 tones of Nitrogen.
  • The Orissa Fertilizer and Chemical Limited is located near Kalunga. The capacity of this fertilizer plant is 45,000 tones per annum.

Apart from the aforementioned plants there are fertilizer plants located elsewhere. These are the Oswal Chemicals and fertilizers plant located in Paradeep which has been bought by the IFFCO in recent years and the Indian Farmers and Fertilizers Corporation Ltd. is located at Baragarh.

A new phosphate fertilizer complex at Paradeep, a joint venture of Island Republic of Nauru and Government of India has been built. It produces Di-Ammonium Phosphate with a capacity of 2,400 tones per day in first phase. Its second phase also started and produces Phosphoric Acid and Phosphorus Pentaoxide. Deepak Fertilizers to set up ammonium nitrate project at Paradeep

The Aeronautical Industry

The MIG Engine factory at Sunabeda near Koraput is a landmark in the industrial development of Orissa. This factory was established by Hindustan aeronautical Limited (HAL) in collaboration with the former USSR.

Large-scale Industries in Orissa

Paper Mills in Orissa

The manufacture of paper pulp is dependent on bamboo pulp as raw material. Orissa's forests abound in bamboo resources. This raw material being of the weight-losing type, paper factories are raw -material based. The orient paper mills of Brajrajnagar is an ideal example. It gets its cool supplies from Rampur and Hydel power from Hirakud. It has an annual licensed capacity of 69,400 tonnes. Titagarh paper mill at Chaudwar is market oriented. This is because it avails itself of the cheap water transport of the Mahanadi. Its annual capacity is 18,200 tonnes. At Rayagada another paper mill has been set up because of the availability of cheap raw material. It has an annual capacity of 18,200 tonnes.Cotton textile, spinning mills, ceramic, glass and refractory units, sugar factories, caustic soda plants, salt, chemical, paper and rice mills are included in this category.

Textile industries in Orissa

One of the oldest industries of the state, textiles in general and handlooms in particular rank amongst the most exported commodities from the state. The Handloom Industry in Orissa is famous for its excellent artistic and superior craftsmanship. Handloom items of Orissa have the following specialties.

  • Tie and Dye method of color combination
  • Unique design and superior quality
  • Tassar Fabrics of indigeneous silk special to Orissa and Chotnagpur plateau

Orissa comes only next to Bihar in the production of Tassar variety of silk producing around 10 tones of silk a year. This variety of silk is mostly manufactured in old Mayurbhanj, Sundergarh, Kendujhar, Sambalpur and Koraput district.Tasar Silk worms are reared for this purpose. The Tassar worms thrive mostly on the shorea robusta (sal), Terminalia arjuna and Terminalia tomentosa. All these trees are found in abundance in the forests of Orissa. Sericulture which started in Orissa 1926 in Cuttack, Puri and Ganjam districts gradually spread to sundergarh, phulabani and Koraput districts. Mulberry silk is much less important compared to Tassar and Eri in Orissa. Since1981, the Bivoltive Sericulture Development project has been taken up by the state Government. It covers areas in R.Udayagiri and Mohana blocks and in old Koraput, Ganjan, phulabani, Kalahandi, Cuttack, Puri, samblapur and Kendujhar districts.

Apart from the tassar silk, modern textile industry that is less labor intensive function in different parts of the state.A textile mill was established at Chaudwar in 1949 with a capacity of 50,000 spindles and 864 looms. This mill is market based. It gets its supplies of raw cotton from the cotton belt located in the Western Peninsula. Six cotton spinning mills are also operating at Jharsuguda, Bargarh, Khorda, Tistol, Athyarh, Tora and Govindapur mostly in the co-operative sector. Other small weaving and spinning mills are operating at Sambalpur, Baripada.

Sugar Mills in Orissa

A sugar mill was started in Orissa on the eve of the second world war, at Aska. All sugar factory are raw material oriented. The sugar factory at Aska is the oldest in the state. At the end of the seventh plan, three sugar factories were operational at Aska, Bargarh and Rayagada. Two more factories are being set up at Nayagarh, in Nayagarh districts and Badamba in Cuttack. Besides, some other Sugar mills were started at Dharmagarh in old Kalahandi district, Haripur in Dhenkamal district, Nabarangapur in Nabarangpur district, Deogaon in Balangir district and Anandapur in Kendujhar district.

Marine Products of Orissa

There are 559 marine fishermen villages with a population of 1,73,197 who depend on the marine resources for their livelihood. There are 64 fish landing centers, which include 4 Fishing Harbours and 16 Jetties. At present Orissa has 23 exporters who process the marine produce in 19 modern processing plants spread throughout the coastal districts of Orissa. Out of these 19 processing plants, 5 are European approved standard and few of them are highly International standard to meet the requirement of the International market.

The total capacity of production of the plants are 342 MT per day. However the average utilisation capacity of the plants is only 11%. The total contribution of sea food production of Orissa in the basket of India sea food export is 8% in terms of quantity and 5% in terms of value. In 2002-03 which has been reduced to 4% in terms of value and 3% in terms of quantity. In the year 2004-05, 11% utilisation capacity of our processing factories is mainly due to decline of oceanic catch un-utilisation of vast coastal land for aquaculture and inadequate infrastructure. During 2004-05, Orissa produced 121.93 thousand tones of marine fishes from all the landing centres. Out of which only 65.24 thousand tonnes are sold to other states and other countries . A sizeable quantity of marine dry fishes are exported to Calcutta. Marine products landed in coastal districts of Orissa are exported to Japan, U.K., U.S.A., Belgium, Netherlands, Germany, China, Singapore, Hong Kong, Thailand and Spain.

Rice Mills in Orissa

Rice mill are an important agro-based industry in Orissa. There is a large cluster of rice mills present all over the state.The coastal district of Balesahwar, Cuttack and Sambalpur have many rice mills.However leading the state with the maximum number of rice mills is the district of Koraput. Besides, a large number of rice hullers are operating in rural collecting centres all over Orissa.

Small Scale Industries in Orissa

Among the other industries beverages, tobacco, gur and molasses are important. The tobacco industry is wide spread and provides employment to large number of persons. In bidi production, the old districts of sambalpur, Sundergarh, Bolangir, Keonjhar ,Cuttack and Balasore are important. Although Orissa has a large cattle population, it imports leather goods .The principal centres of leather products are Baudh, Bhanjanagar, Bolangir and Keonjhar. Modern tanneries have been set up at Cuttack and Khariar Road. This industry is run primarily on family lines, the 'Mochis ' and 'Chamars' being the two castes engaged in it.

Oil pressing is a traditional occupation run on caste and family line. Mustard, groundnut, castor and til seeds are the principal raw materials used.Some villages specialize in brass products, but owing to competition from the large manufacturing concerns, especially those manufacturing aluminium utensils, this cottage industry is decaying. The high price of brass is another handicap.

Production of inks, paints and varnishes, soap, wood and wood products also employ a large number of persons in the towns. For jewellery and filigree work, Cuttack and Berhampur are famous. Stone carving is important in Puri. The salt industry is being modernised at Huma in Ganjam district and at Astarang in Puri district. A large number of small and medium industries have been developed in the industrial suburbs of cities like Cuttack, Bhubaneswar and Sambalpur. Industrial estates have come up at Chaudwar and Jagatpur near Cuttack. At Chaudwar, a paper mill and a cotton textile mill are functioning. At Jagatpur, a large number of consumer goods industries have been developed.

The Industrial estate of Bhubaneswar has been developed at Rasulgarh and Mancheswar. The most important among these is the coach building unit at Mancheswar. This factory is being operated by the Indian Railways. The Orissa Milk Federation Chilling unit, the largest of its kind is also located at Mancheswar. In the industrial estate of Sambalpur, a large number of small industries have been established which are consumer oriented. A straw board factory is located near Dhama by the side of a tributary of the Mahanadi. In the industrial neighborhood of Rourkela, a large number of small and medium industries have been set up based on products of the steel plant.