Govt partners Tata Group to set up major defence production unit in Odisha

The Centre is planning to set up a major defence production unit at Gopalpur, near Berhampur, in southern Odisha as part of the 'Make in India' campaign in partnership with the Tata Group and the state government.

"Steps have been initiated for setting up a defence manufacturing unit at Gopalpur," petroleum minister Dharmendra Pradhan told the media in Bhubaneswar on Tuesday.

Pradhan said that the Tata Group has 3,000 acres at Gopalpur and the company has been asked to be a partner in the proposed venture, which can come up in its area.

"The project is at a conceptual stage and can be developed jointly by Tata, Odisha government and the Centre," the minister added.

Pradhan also said that Odisha could emerge as a future oil and gas hub in eastern India with about Rs 1 lakh crore to be invested in the hydrocarbon sector in the state in the next five to seven years.

Pradhan also said that the government plans to set up an international standard skill development excellence centre in Bhubaneswar to provide training in the hydrocarbon sector.

"Such a centre is crucial as it would have potential to generate revenue and skilled manpower", he added.

"While Indian Oil Corporation (IOC) refinery in Paradip is on the verge of completion, a petrochemical complex is also coming up at the port town", the minister said.

The strategic reserve of oil will soon come up at Chandikhole, Jajpur district, and several important pipeline projects are being taken up through the state.

Pradhan said there is also a proposal for takeover of Kalinga Iron Works at Badbil by Steel Authority of India Limited (SAIL) .

On disinvestment of aluminium major Nalco, he said that no public sector unit (PSU) will be allowed to move out of the ownership of the Central government despite moves to offload 5-10-per cent stake in some companies, including Nalco.

The minister said that huge investment is required for strengthening infrastructure and rural development. The government can raise funds by divesting small portion of its stakes in PSUs, he added.

The minister also described as unfounded the allegation that there is a plan to shift the engine division of Hindustan Aeronautics Limited from Sunabeda in Koraput district.