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Orissa on MoU-signing spree with US firms

The Orissa government has signed 20 memoranda of understanding with leading US companies in the fields of infrastructure development, engineering, food-processing, electronics, biotechnology, and software development in the state.

The MoUs were signed after negotiation with the representatives of leading companies during the visit of a delegation led by Chief Minister J B Patnaik to the United States.

The delegation visited New York, Washington, Houston, and Boston during its fortnight-long visit to the US from June 22 and held a series of discussion with non-resident Indians, representatives of the World Bank and the International Finance Corporation, and with potential investors.

Patnaik, who returned to Bhubaneshwar on Thursday, July 3, said investment opportunities in the state, particularly in the electronics, software, petrochemicals, pharmaceuticals, food-processing, tourism, and infrastructure sectors were highlighted before the representatives of these companies.

The chief minister said major US companies and NRIs were informed of the availability of surplus power, cheap manpower, and an overall conducive atmosphere for industrial development due to a stable government. Most of these companies, he said, evinced keen interest in participating in the funding of major infrastructural and industrial projects in the state.

The state government will soon sign seven more MoUs with some leading US companies for software development. A high-level business delegation from the US will visit the state soon to initiate the projects, he stated.

Patnaik said the state government had signed an MoU with Raytheon, a diversified group with a turnover of over $3 billion, to collaborate with it for establishment of infrastructure projects like roads, airports, mass rapid transit system, and hydroelectric power.

Discussions were also held with Foster Wheeler Energy for setting up a power equipment manufacturing unit in Orissa. The chief minister added that discussions were held with the managing director and executive director of the World Bank in Washington on power sector reforms, irrigation, child welfare schemes, improvement of the road system, and strengthening of the secondary health services.

Patnaik said the Bank would soon launch a special mission to make an in-depth analysis of fiscal issues, including the restructuring of the state public sector undertakings.

The International Finance Corporation, which finances projects in the private sector, has also assured the delegation of leading the viable project. The IFC, Patnaik said, would look after the viable agro-based food-processing projects in the state.

The chief minister said he, along with Deputy Chief Minister Basant Kumar Biswal and Industries Minister Niranjan Patnaik, held meetings with leading investment bankers like Merrill Lynch, Lehman Brothers and JB Morgan. These investment bankers, he said, has expressed keen interest in funding various projects in the state.

Among the 20 MoUs signed during the visit, the state government had signed three. State government undertakings such as the Orissa State Electronic Development Corporation signed seven MoUs, the Industrial Promotion and Investment Corporation Limited had signed five, other state government undertakings signed five MOUs.

IPICOL signed an MoU with Foster Wheeler for manufacturing of power plant equipment in Bhubaneshwar and with Asia Stratcom for identification of projects, particularly food-processing industries. The other MoUs signed by IPICOL were with Econo Power International Corporation for modular coal gasification plant, a Rs 100 million centre for biotechnology with Speciality Biosystem of San Diego, and establishment of materials and environment-testing research in collaboration with International Science and Technology of Phoenix.

OSEDC signed an MoU with Intech Global Resources Inc for setting up a Rs 1 billion software technology park. It also signed an MoU with International Science and Technology of Houston for software development and Internet application.

OSEDC would soon sign several MoUs in the field of software development with Symantec Corporation, the Lockheed Corporation of Boston, the ATEC group of New York, the System Solution Inc of Boston and the Science Application International Corporation of Virginia.

UNI