Steel Dreams: The Odisha Investment Conundrum

 

Odisha’s latest industrial spectacle, featuring Chief Minister Mohan Charan Majhi unveiling projects worth ₹1.15 lakh crore and promising 36,000 jobs, is a familiar script. The grand announcements, the gleaming foundation stones, and the rhetoric of transformation echo decades of similar promises that have often dissolved into disillusionment. From Janaki Ballav Pattanaik’s “1000 industries in 1000 days” to Biju Pattanaik’s unfulfilled steel plant dreams, and Naveen Patnaik’s memorandums of understanding (MOUs) that rarely materialised, Odisha’s history is littered with ambitious projects that stalled at the drawing board.

The collapse of POSCO’s $12 billion steel plant in 2017, after years of delays and protests, remains a stark reminder of the gap between promise and reality. Similarly, ArcelorMittal’s exit in 2013, citing land acquisition and ore linkage hurdles, exposed the systemic challenges plaguing large-scale investments. These episodes underscore a recurring pattern: high-profile MOUs and foundation ceremonies generate headlines, but ground realities—bureaucratic inertia, environmental clearances, land disputes, and political volatility—often derail progress.

Majhi’s current announcements, including TATA Steel’s expansion and foreign investments from Germany and Japan, are undoubtedly significant. Yet, scepticism is warranted. The state’s industrial policy has long prioritised spectacle over sustainability, with successive governments treating investment summits as public relations exercises rather than opportunities for systemic reform. The Make-in-Odisha Conclave, for instance, has consistently produced staggering investment figures on paper, but tangible outcomes remain elusive.

The broader issue lies in Odisha’s failure to address structural impediments. Land acquisition remains a quagmire, infrastructure gaps persist, and bureaucratic red tape stifles execution. Moreover, the emphasis on capital-intensive mega-projects often overshadows the need for nurturing micro, small, and medium enterprises (MSMEs), which are critical for inclusive growth. While Majhi’s speech invoked “downstream industrial growth” and MSME collaboration, past experience suggests such rhetoric rarely translates into actionable policies. Majhi’s recent vow to ensure “every district in Odisha has an industrial project” reflects a commendable vision for decentralised growth. However, without addressing the systemic bottlenecks that have historically plagued project execution, such promises risk becoming yet another addition to the state’s long list of unmet industrial aspirations.

For Odisha’s youth, who are repeatedly promised employment windfalls, these announcements ring hollow without delivery. The state’s aspiration to become an industrial powerhouse is laudable, but it demands more than ceremonial groundwork. It requires transparent governance, streamlined processes, and accountability mechanisms to ensure projects move beyond MOUs. Until then, the cycle of hype and disappointment will continue, leaving Odisha’s industrial potential perpetually in the future tense. The true test of Majhi’s leadership will be whether these projects join the ranks of POSCO and ArcelorMittal as cautionary tales or finally break the mould to become transformative realities.