From MoUs To Factories: Odisha’s Industrial Push Gathers Pace

Over the past two decades, Hemant Sharma has emerged as one of Odisha’s most prominent bureaucratic faces in industrial development and investment promotion. As Additional Chief Secretary to the Government of Odisha, in charge of Industries, Home, and Information and Public Relations, he has played a key role in engaging domestic and international investors and advancing the state’s industrial ambitions.

Under Chief Minister Mohan Charan Majhi, Odisha is seeking to build on its traditional strengths in mining, metals and mineral-based industries while opening new avenues in data centres, semiconductors, artificial intelligence, green energy and advanced manufacturing. The challenge is to translate investment commitments into factories, turn the state’s resource advantage into higher value addition, generate quality employment and ensure that industrial growth reaches regions beyond established manufacturing hubs.

In this exclusive interview with Deccan Chronicle and The Asian Age, Sharma discusses the progress of investment proposals towards implementation, the factors driving investor interest in Odisha, the infrastructure demands of emerging industries, the government’s strategy for employment generation and balanced regional development, and the state’s ambition to become a $500-billion economy by 2036. He also explains how policy reforms, institutional coordination and project facilitation are expected to shape Odisha’s next phase of industrial transformation.

Q. From MoUs to factories: where is the conversion happening?

A. The government is focused on moving investment proposals progressively from intent to approval and implementation. In 2025-26, 234 projects worth Rs 4,63,596 crore, with an employment potential of 2,46,337, were approved. Of these, 85 reached the ground-breaking stage and 21 were inaugurated, taking the total to 106 projects involving Rs 2,17,709 crore and an employment potential of 1,57,964.

Across the broader portfolio of projects under the new government, 151 projects involving Rs 3,11,722 crore, with an employment potential of 2,40,697, had reached the ground-breaking or inauguration stage by September 2026. Through the High-Level Clearance Authority (HLCA) and the single-window mechanism, we continue to facilitate project implementation.

Q. Is Odisha’s industrial model finally moving beyond mining and metals?

A. Mining and metals will remain important strengths, but our industrial profile is becoming more diversified. We are seeing growing investments in data centres, artificial intelligence, semiconductors, green energy, healthcare and advanced manufacturing.

Our objective is not to move away from our natural-resource advantage, but to build greater value addition, downstream manufacturing and technological capabilities around it. By combining traditional strengths with new-age industries, we aim to make Odisha’s industrial economy more diversified and future-ready.

Q. The Rs 1.43-lakh-crore data-centre story: opportunity or infrastructure challenge?

A. The scale of investment reflects growing confidence in Odisha. The latest HLCA approvals include four IT, IT-enabled services and data-centre projects involving approximately Rs 1.43 lakh crore.

Our priority is to ensure reliable power, land, water, digital connectivity, supporting infrastructure and skilled manpower. We are also looking at the wider ecosystem these investments can generate in AI, cloud services and technology-enabled businesses. The focus is on coordinated project facilitation so that infrastructure and implementation requirements are addressed in a timely manner.

Q. How do you intend to create more value from Odisha’s mineral wealth?

A. Odisha’s mineral resources provide a strong foundation for downstream industries in aluminium, steel, critical minerals, rare earths and advanced materials. We want more processing, component manufacturing and production of finished goods to take place within the state, strengthening supply chains and creating greater economic value.

Recent approvals in rare-earth-based products and downstream manufacturing reflect this direction. MSMEs also have significant opportunities to participate in these value chains. The larger objective is to connect Odisha’s resource advantage with manufacturing, technology and export opportunities.

Q. Global roadshows: what exactly are investors telling Odisha?

A. Investors are attracted by Odisha’s natural resources, strategic location, ports, industrial infrastructure and emerging sectors. At the same time, they seek clarity on land availability, logistics, infrastructure, skilled manpower and regulatory processes, particularly for large and technology-intensive projects.

Our engagements in Singapore and the UAE have helped us understand these requirements directly. We are responding through coordinated clearances, improved infrastructure and stronger project facilitation, supported by IPICOL, the HLCA and the single-window mechanism. The objective is to translate investor interest into concrete projects, value addition, employment and long-term partnerships.

Q. What is Odisha’s strategy for creating a large number of quality jobs?

A. Our strategy has two complementary dimensions. We are attracting technology- and capital-intensive investments in areas such as data centres, semiconductors and advanced manufacturing, which can create high-skilled jobs and strengthen the state’s technology ecosystem.

At the same time, we are promoting labour-intensive sectors such as textiles, food processing, tourism, downstream manufacturing and MSMEs, which can generate employment on a wider scale. Skill development and improving the employability of local youth are equally important. The objective is to ensure that industrial investment translates into quality jobs, higher incomes and broader employment opportunities across Odisha.

Q. Can industrialisation reach western, southern and tribal Odisha, rather than remain concentrated in established industrial hubs?

A. Our objective is to make industrialisation a state-wide growth engine, with each region contributing through its own strengths. The latest HLCA approved 27 projects across 15 districts, reflecting this wider approach.

Western Odisha has potential in minerals, metals, manufacturing and renewable energy. Southern Odisha offers opportunities in logistics, tourism and natural-resource-based industries, while tribal and other regions can benefit from agro-processing, forest-based products, textiles, MSMEs and tourism.

The focus is on connecting these regional strengths with infrastructure, skills, logistics and local supply chains so that industrial growth generates employment and value addition beyond established industrial clusters.

Q. Land acquisition, local communities and environmental sustainability often pose challenges to industrial projects. How do you balance these concerns?

A. Industrialisation must be responsible and sustainable. We seek to facilitate projects through timely processes while ensuring compliance with applicable environmental regulations, land-related provisions and rehabilitation and resettlement requirements.

Local communities are an important part of this process, and industrial development should create tangible economic opportunities for them. We are also encouraging cleaner technologies, renewable energy, resource efficiency, waste management and sustainable industrial practices. Emerging opportunities in green hydrogen and other green industries reflect this direction. Our objective is to pursue economic growth, environmental sustainability and inclusive development together.

Q. What does the June 2026 amendment to the Industrial Policy Resolution (IPR) 2022 change?

A. The amendment is aimed at keeping Odisha’s industrial policy responsive to changing investment conditions and emerging industrial requirements. It strengthens the framework for investment facilitation and ease of doing business, which is particularly relevant as the state attracts projects across traditional industries and new-age sectors.

Our approach is to provide a predictable policy framework, effective project facilitation and a competitive industrial ecosystem. The broader objective is to support faster project implementation, promote value addition and employment, and strengthen Odisha’s position as a destination for long-term industrial investment.

Q. The big question: what will Odisha look like in 2036?

A. The ambition of building a $500-billion economy by 2036 is not merely about reaching a numerical target. It is about transforming the scale, quality and inclusiveness of Odisha’s economic growth.

We want Odisha to emerge as a major value-added manufacturing and export hub, with stronger participation in global value chains. Industrial growth should generate quality employment, raise productivity and improve skills and incomes, particularly for our youth.

Equally important is geographically balanced development that connects the strengths of coastal, western, southern and tribal Odisha. Our vision is an industrially competitive, investment-ready and employment-rich state where economic growth translates into better opportunities and livelihoods for people across the state.