THEBUSINESSBYTES BUREAU
BHUBANESWAR, FEBRUARY 11, 2026
The Odisha
government’s approval of 23 investment proposals worth ₹4,111.80 crore — expected to
generate 9,924 jobs across 11 districts — has been welcomed as a strong boost
to the state’s industrial growth. However, concerns have emerged over the
regional distribution of these projects, with
only one of the beneficiary districts located in Western Odisha.
The approved
investments span diverse sectors including aerospace and defence,
pharmaceuticals, textiles, tourism, mineral beneficiation, aluminium downstream
industries, and logistics. Yet, a majority of the projects are concentrated in
coastal and central districts such as Khordha, Cuttack, Puri, Ganjam and
Jajpur. Western Odisha, despite being a major contributor of bauxite, iron ore
and power to the state’s economy, has seen limited representation in this round
of approvals.
Industry
associations point out that districts like Sundargarh, Sambalpur, Kalahandi and
Bolangir already host significant upstream industrial assets and are
well-positioned to attract downstream manufacturing, MSMEs and value-addition
clusters. “The approvals are encouraging, but balanced regional development is
essential. Regions that supply raw materials and energy should also become hubs
of employment and enterprise,” said a senior representative of an aluminium-linked
MSME body.
Among the
major projects cleared are Inventgrid India’s ₹300-crore multi-drone manufacturing facility in
Ganjam, expected to create 1,000 jobs, and Nipha Limited’s ₹384-crore railway
component unit in Khordha, projected to generate 310 jobs. While mineral beneficiation units have been proposed in Sundargarh and Debagarh,
observers note that most employment-intensive sectors such as textiles,
hospitality, logistics and pharmaceuticals remain largely concentrated outside
Western Odisha.
Economists
warn that continued concentration of investments in select corridors could
deepen labour migration from western districts. An estimated 35–40 per cent of
industrial workers from these regions migrate annually to other states for
employment. “Each large project triggers local economic activity in transport,
housing, retail and services. When a region is bypassed, its MSME ecosystem
loses growth momentum,” noted a former state planning official.
Stakeholders
have suggested corrective measures such as location-based incentives for
aluminium and steel downstream units, creation of dedicated land banks in the
Sambalpur–Sundargarh–Jharsuguda belt, and preferential procurement policies for
MSMEs in Western Odisha. They have also called for sector-specific clusters in
food processing, engineering goods and renewable energy equipment, where the
region holds competitive advantages.
While the
state’s Samruddha Odisha 2036 vision
underscores inclusive and job-driven growth, experts believe that achieving
this goal will require a clearer regional investment strategy. As one industry
chamber statement observed, “Odisha’s industrial success must not be measured
only by investment figures, but by where opportunities are created. Western
Odisha is investment-ready — it needs proportionate opportunity.”
