After two decades of headline-grabbing but unrealised mega investments, several big-ticket projects are finally moving from intent to execution in Odisha. As global investors re-enter the state, the focus has shifted from announcements to actual implementation, with projects across steel, semiconductors, ports and power showing visible progress on the ground.
Industrial reboot
Twenty-one years ago, Odisha’s industrial landscape was set for a transformation when South Korean steel major POSCO signed an agreement with the then BJD govt to set up a 12MTPA integrated steel plant at Rs 51,000 crore – then India’s largest FDI proposal. But in 2017, the project was shelved after prolonged land acquisition disputes and sustained local protests. Similarly, ArcelorMittal, which had signed an MoU in 2006 for a 12 MTPA plant in Keonjhar, exited in 2013 due to land and raw material constraints, thus, bringing the curtains down on what was to be a defining moment in Odisha’s industrial narrative.
Today, though, the state seems set for a major i ndustrial milestone with investments across sectors such as steel, semiconductors, ports and power now showing visible traction on the ground and CM Mohan Charan Majhi recently laid the foundation stone for JSW Group’s greenfield steel plant in Jagatsinghpur — the same site where Posco’s proposed project was shelved. After two decades of headline-grabbing but unrealised mega investments, several big-ticket projects finally are moving from intent to execution. While challenges persist — particularly around land acquisition, local resistance and logistics — the state appears closer this time to converting intent into concrete industrialisation, with multiple proposals entering the execution phase simultaneously. A key marker of this shift is the return of global investors who had earlier exited the state. POSCO has re-entered Odisha with a revised strategy. On April 20, it entered into a joint venture with the JSW Group to set up a 6 MTPA integrated steel plant in Dhenkanal. The state govt has already allotted around 900 acres, and unlike the earlier attempt, no major hurdles have surfaced so far. Another major development is the progress made by ArcelorMittal Nippon Steel India (AMNS). Land acquisition is underway for its proposed 14 MTPA steel plant (first phase) in Kendrapada. Parallelly, work on a rehabilitation colony is progressing for its 7 MTPA steel unit at Paradip. The combined investment is estimated at more than Rs 1 lakh crore. These Vedanta’s ambitious plan to establish a world-class university in Puri ran into legal hurdles.
Despite acquiring or initiating acquisition of nearly 8,000 acres of private land, along with 495 acres provided by the state, the Orissa high court in 2010 quashed the process and ordered the return of land — a decision upheld by the Supreme Court in 2023, effectively closing the chapter. Vedanta has now returned with a fresh investment pipeline exceeding Rs 1 lakh crore. Its plans include a six million tonne alumina refinery in Rayagada, a three million tonne aluminium smelter in Dhenkanal and a 6,000 MW power plant, along with downstream aluminium industries and integrated coal and bauxite operations. Land has already been allocated for key components of these projects. The state govt has indicated that it will review bottlenecks twice every month to maintain momentum and ensure steady progress though the company is facing local resistance over sourcing bauxite from the Siji mali mines. A newly approved railway link is expected to ease logistics, though resistance at the ground level could still influence timelines. CM Majhi says he has placed industrialisation and job creation at the centre of his govt’s agenda. He added that the administration has restored investor confidence. “Our call of ‘Yahi samay hai, sahi samay hai’ has encouraged investors to turn their attention towards Odisha,” he said. In the past two years, the govt has approved 433 projects involving Rs 8.68 lakh crore, with a projected employment potential of 5.25 lakh jobs. Of these, 34 projects have already been inaugurated, generating over 31,000 jobs, while work is underway on another 114 projects expected to create more than two lakh additional jobs. Additional chief secretary (industries) Hemant Sharma said the focus has shifted decisively to grounding projects through continuous engagement with investors and faster resolution of issues related to clearances and logistics. Aboli S Naravane, managing director, IPICOL and director of industries, said Odisha is no longer just a mineral-based economy. “We have transformed into a global hub for high-value manufacturing, deep-tech innovation and diversified industrial growth,” she said
Major investment
- In two years, the Mohan Charan Majhi govt has cleared 433 projects, attracting proposed investments of 8.5 lakh crore and generating an estimated 5 lakh jobs.
- Of these, 148 projects have already broken ground, creating employment for around 2.37 lakh people.
- JSW Steel’s 1.25 lakh crore project—Odisha’s largest-ever investment—will come up in Jagatsinghpur in two phases, with a 24 MTPA steel capacity, along with a 12 MTPA cement plant, 900 MW captive power unit and a dedicated jetty.
- The Paradip–Cuttack–Bhubaneswar–Puri Economic Corridor (BCPPER), backed by a 5,000 crore central grant, will position Paradip as a gateway hub, with over 1 lakh jobs expected in the region. Plans also include a cruise terminal and a mega shipbuilding complex.
- Vedanta Group plans to invest 1 lakh crore. Vedanta’s investments include a 6 MTPA alumina refinery in Rayagada, a 3 MTPA aluminium smelter and 6,000 MW power plant in Dhenkanal, alongside a downstream aluminium park targeting EV, aerospace and defence sectors.
- Land has been allotted for Vedanta’s key projects, while its coal block is slated for commissioning this year. Railways has cleared a link near the Sijimali bauxite mine, though local protests over mining-linked infrastructure persist.
