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Industries in Odisha (ଓଡ଼ିଶା)

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Types of Industries in Odisha

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

  • * Large-Scale Heavy Industries
  • * Large-Scale Industries
  • * Small-Scale Industries

*Large-Scale Heavy Industries

This segment includes the industrial units that need massive capital investment and include iron steel industry, aluminium, cement, ferro-manganese, ferro-chrome, steel rolling mills, fertiliser plants, thermal and power projects.


Odisha has 2.224 billion tonnes of proven limestone reserves. One of the earliest cement factory to have started operations in the state was the factory at Rajgangpur, named as the Odisha Cement Limited(OCL) that was established in December 1948, between the state of Odisha and M/s Dalmia Jain Agencies Limited.

There is another cement factory located in the adjoining district of Sambalpur at Brdol near Brgarh which is run by the Industrial Development Corporation of Odisha (IDCO) named The Hira Cement


Set-up at the Atomic Energy Commission in the Gopalpur in 1978, the Indian Rare Earths Commission Limited extracts Titanium from the beaches of Gopalpur. It is also focussing on the strategic activities connecting with the atomic energy programme in this unit in Gopalpur. A monazite processing plant with an investment of 90 crore to produce rare earth chemichals and recover thorium and uranium will also commence operation in the Gopalpur plant.


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


It is located in Kansbahal in Sambalpur, Rajgangpur near Rourkela in the Sundargarh district and Lathikata 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 followed by Manishree Refractories and ceramics of Kansbahal and the Odisha Industries Limited (OIL) at Lathikata.


Odisha is the largest producer of aluminium in India. Odisha’s key advantage for aluminium industry 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 aliminium industry in Odisha 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 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 modernised in the mid 1990s. Its another unit is located in Barbil in Keonjhar.

The plant has also, for the first time in India, had adopted external desulphurisation of hot metal by calcium carbide injection process. RSP is one of the unique steel units under the SAIL umbrella with a wide variety of special purpose steels. As a responsible corporate citizen, RSP has taken effective measures in the area of pollution control.


With over 25% of India’s iron ore production reserves, Odisha accounts for over 10% of India’s steel production capacity and has a crucial advantage in the iron and steel industry. Further, the presence of seaport in the state makes exports and imports cost effective and more competitive.

The government has been taking steps to promote the ron and steel industry in the state. Prominent players present in Odisha’s steel industry are SAIL and Nilachal Ispat Nigam Limited.


It is a compay promoted by Metal and Minerals Trading Corporation of India (MMTC), Industrial Promotion and Investment Corporation of Odisha Limited(IPICOL) and other government agencies.

NINL has become India’s largest exporter of saleable pig iron since 2004-05. Pig iron and LAM coke produced by NINL has established its acceptance in domestic as well as in interational markets.

Company is widely catering to the demands of the Eastern ,central and Northern regions of India for Pig iron apart of exports. It is supplying LAM coke to almost all steel plants of steel authority of India Limited and Rastriya Ispat Nigam Limited Vishakhapatnam.

NALCO(National Aluminium Company Limited)

It was set-up at Bhubaneswar in 1981 in collaboration with the Aluminium Pechiey of France. It is an integrated alumina/aluminium complex. This plant is one of the most modern plants in the World and biggest in Asia and located in ANGUL. After started its production , India has not only become self-sufficient in aluminium production, but has started exporting.

Port facilites foe export of bauxite, alumina and aluminium are available at Vishakhapatnam and Paradeep. The second aluminium 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 Panchpatmali. NALCO’s captive power plant is located at Angul to which 2.4 milliom tonnes of cal is being supplied from Talcher.


There are two big ferro-manganese plants in operation in the state. The first plant located at Joda in Keonjhar district is run by the Tata Iron and Steel Company Limited. The second plant at Rayagada in Koraput district is managed by Jeypore Sugar Company Limited. Both the plants get power from Hirakud Machkund Hydro-Electric Projects.

A ferro-silicon plant in Theruveli ; about 20 kms from Rayagada in Koraput started in 1967. A carbide plants is established at Theruveli to manufacture silicon carbide.


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



The manufacture of paper pulp is development on bamboo pulp as raw material. Odisha’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 Brajarajnagar is an ideal example. It gets its coal supplies from Rampur and Hydel Power from Hirakud. Rayagada 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, salt, chemical, paper and rice mills are included in this category.


One of the oldest industries in the state, textile in general and handlooms in particular rank amongest the most exported commodities from the state. The Handloom Industry in Odisha is famous for its excellent artistic and superior craftsmanship.

Handloom items of Odisha have the following specialities

• Tie and Dye method of colour combination. • Unique design and superior quality • Tassar Fabrics of indigeneous silk special to Odisha and Chhotanagpur plateau.


Odisha comes only next to Bihar in the production to Tassar variety of silk producing around 10 tonnes of silk a year. This variety of silk is mostly manufactured in old Mayurbhanj, Sundargarh, Keonjhar, Sambalpur, and Koraput district. Sericulture which started in Odisha 1926 in Cuttack, Puri and Ganjam districts gradually spread to Sundargarh, Phulbani and Koraput districts.

Mulberry silk is much less important compared to Tassar and Eri in Odisha. Scince 1981, the Bivoltive sericulture Development Project has been taken up by the state Government. It covers area in Udayagiri and Mohana blocks and in old Koraput, Ganjam, Phulbani, Kalahandi, Cuttack, Puri, Sambalpur, and Keonjhar districts.


Apart from the Tassar silk, modern textile industry that is less labour intensive function in different parts of the state. A textile mill was established at Choudwar in 1949 with a capacity of 50,000,spindles and 864 looms. This mill is market based.

It gets its supplies of raw cotton belt located in the Western Peninsula. Six cotton spinning mills are also operating at Jharsuguda, Bargarh, Khurda, Tistol, Athyarh, Tora and Govindapur, mostly in cooperative sector. Other small weaving and spinning mills are operating at Sambalpur, Baripada.


The sugar factory Aska is the oldest in the state. At the end of the seventh plan, three three sugar factories were operational at Aska, Bargrh and Rayagada. Two more factories are being set-up at Nayagarh , in Nayagarh district and Badamba in Cuttack. Besides, some other sugar mills were started at Dharmagarh n old Kalahandi district, Haripur in Dhenkanal district.


Among the other industries beverage, tobaco, gur and molasses are important. The tobaco industry is wide spread and provides employment to large number of persons.

In bidi production, the old disticts of Sambalpur, Sundargarh, Balangir, Keonjhar, Cuttack and Balasoreare important. Although Odisha has a large cattle population, it imports leather goods. The principalcentres of leather production are Boudh, Balangir, and Keonjhar. Modern tanneries have been set-up at Cuttack and Khariar Road.

Production of inks, paints, and varnishes, soap,wood and wood products also employ a large number of persons in the towns. For jwellery 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. 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 factiry is being operated by the Indian Railways. The Odisha Milk Federation Chilling Unit, the largest of its kind is 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 neighbourhood of Rourkela, a large number of small and medium industries have been set-up based on products of the steel plant. STATE INDUSTRIAL POLICY, 2007

  • * To transform Odisha into a vibrant industrialised state.
  • * To enhance the share of Industries in state Gross Domestic Product(GDP).
  • * To promote orderly and environmentally sustainable industrial growth.
  • * To maximise employment generation opportunities both direct and indirect.
  • * To maximise linkages between micro, small, midium and large industries and make focused efforts for development of ancillary and downstream indusries.
  • * To promote employment intensive sectors such as handicrafts, handlooms, Khadi and village industries, coir,and salt.
  • * To specificially promote sector such as IT/ITES, biotechnology, agro, tourism, textiles and apparel and automotive industries, which offer maximum linkage for employment generation and exports.
  • * To assist in arresting industrial sickness and promote revival and rehabilitation of potentially viable sick industries,especially in the Micro, Small and Medium Enterprises (MSME) sector.
  • * To create awareness amongest and assist Micro,Small and Medium Enterprises (MSMEs) to respond to the opportunities and challenges emerging under the World Trade Organisation (WTO) regime. A World Trade Organisation Cell shall be established in the Industries Department.
  • Special economic zones

  • * The Odisha government plans to set-up 14 Special Economic Zones (SEZ) to promote industrial activity in the state. These centres will cone up at lapanga in Sambalpur, Burkhamunda in Jharsuguda, Chhatrapur in Ganjam, Goudakashipur and Mancheswar in Khurda, Kalinga Nagar and Mancharpur in Jajpur, Gopalpur in Ganjam, Ramdaspur in Cuttack, Tulasideipur in Chandaka under Khurda, Belar in Nuagaon of Kendrapara, Paradeep in Jagatsinghpur and Chaudwar in Cuttack.
    • * HINDALCO Industries SEZ, Sambalpur
    • * Infocity Bhubaneswar SEZ IT/ITES
    • * IDCO Knowledge Park, Bhubaneswar
    • * Jindal Steel and Power, Choudwa
    • * Saraf Agencies SEZ, Gopalpur, Odisha
    • * Wellspun SEZ, Choudwar
    • * Genpact SEZ IT/ITES
    • * IDCO Bhubaneswar IT/ITES
    • * POSCO India SEZ, Paradeep
    • * Tata Consultancy Services SEZ IT/ITES
    • * Vedanta Resources SEZ, Jharsuguda
    • * Wipro SEZ IT/ITES


Industrial Department is responsible for promotion of all-round industrial development of the state and also generates employment, attracts investment and become instrumental in the economic development of the state. Manufacturimg continue to be an important facet of industries and plays a critical role in the economic development in Odisha through value addition to the natural resources. In due course, this also fosters technology upgradation, acquistition of strategy capabilities and provides gainful employment to the underemployed and unemployed human resources. In order to achieve this objective, there is a need to have a robust policy framework for leveraging value addition to the abundant mineral, agricultural and marine wealth of the state.


The Micro, Small and Medium Enterprises(MSMEs) contribute significantly to value addition, employment generation, exports and overall growth and development of the country's economy . In Odisha itself MSME units are generating maximum employment next to agriculture. The MSME sector is responsible for about 40 percent of the total manufacturing output in the country. Realising the significance, a separate department of Micro, Small, and Medium Enterprises has been created with an objective to facilitate, promote and enhance competitiveness of MSMEs in the state.


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