Chapter 12 — ବିନିର୍ମାଣ ଉଦ୍ୟୋଗ

Manufacturing is the production of goods in large quantities after processing raw materials into more valuable products. The word comes from the Latin manu factum, made by hand, but today it means production by machines in factories. Paper is manufactured from wood, sugar from sugarcane, iron and steel from iron ore, and aluminium from bauxite; cloth from cotton, cement from limestone and cars from steel, rubber, glass and plastic. People employed in the secondary activities manufacture the primary materials that the farm, the forest, the mine and the sea produce into finished goods. Just as the farmer is a primary worker and the shopkeeper or teacher a tertiary worker, the factory worker is a secondary worker, and the workers employed in steel factories, car, breweries, textile industries, bakeries, and the like fall into this category. The value added by manufacturing is many times the value of the raw material: a kilogram of iron ore worth a few rupees becomes steel worth many times more and a machine worth thousands.

Manufacturing industries are considered the backbone of economic development of a country for several reasons. First, manufacturing industries help in modernising agriculture, which forms the backbone of our economy, by supplying tractors, pump sets, fertilisers, pesticides and irrigation pipes, and by buying the farmer's cotton, sugarcane, oilseeds and jute; industry thus raises the productivity and income of the farm. Second, they reduce the heavy dependence of people on agricultural income by providing them jobs in secondary and tertiary sectors: a country in which two-thirds of the people are crowded on the land can lift them out of poverty only by moving them into factories and the services that grow around factories. Third, industrial development is a precondition for the eradication of unemployment and poverty from our country; this was the main philosophy behind public sector industries and joint sector ventures in India and the aim of the industrial policy of the Five Year Plans. It was also aimed at bringing down regional disparities by establishing industries in tribal and backward areas, such as the steel plant at Rourkela in the tribal district of Sundargarh. Fourth, the export of manufactured goods expands trade and commerce and brings in much-needed foreign exchange: engineering goods, chemicals, textiles, pharmaceuticals and refined petroleum are among India's largest exports. Fifth, countries that transform their raw materials into a wide variety of finished goods of higher value are prosperous; a country that exports iron ore and imports steel stays poor. India's prosperity lies in increasing and diversifying its manufacturing industries as quickly as possible.

Agriculture and industry are not exclusive of each other; they move hand in hand. The agro-industries in India have given a major boost to agriculture by raising its productivity, and they depend on the latter for raw materials and sell their products such as irrigation pumps, fertilisers, insecticides, pesticides, plastic and PVC pipes and machines and tools to the farmers. Thus the development and competitiveness of manufacturing industry has not only assisted agriculturists in increasing their production but also made the production processes very efficient. In the present day world of globalisation, our industry needs to be more efficient and competitive; self-sufficiency alone is not enough, and our manufactured goods must be able to compete in the international market in quality and price.

Over the last two decades the share of manufacturing sector in India's gross domestic product (GDP) has stagnated at about 17 per cent, out of a total of about 27 per cent for the industry sector as a whole, which includes mining, quarrying, electricity and gas along with manufacturing. This is much lower than that of some East Asian economies, where manufacturing is 25 to 35 per cent of GDP, and it explains why India, despite its large industrial base, still has so many people on the land. The trend of growth rate in manufacturing over the last decade has been around 7 per cent per annum, and the desired growth rate over the next decade is 12 per cent. Since 2003 manufacturing has been growing faster, at 9 to 10 per cent per annum in the best years. With appropriate policy interventions by the government and renewed efforts by the industry to improve productivity, economists predict that manufacturing can achieve its target over the next decade. The National Manufacturing Competitiveness Council (NMCC) has been set up with this objective, and the 'Make in India' programme of 2014 aims to raise the share of manufacturing to a quarter of GDP.

The pattern of India's industrial growth has three stages. In the colonial period modern industry was confined to a few sectors: cotton mills in Mumbai and Ahmedabad, jute mills in Kolkata, the Tata steel works at Jamshedpur (1907), coal mines, tea and sugar factories; most of the country's manufactured goods came from Britain and the Indian handloom and handicraft industries were ruined. In the planning period after 1951 the state built the basic and heavy industries, steel, machinery, chemicals, fertilisers and power, through the public sector, with the Second Five Year Plan (1956–61) of P. C. Mahalanobis making heavy industry the priority; the Bhilai, Rourkela, Durgapur and Bokaro steel plants, BHEL, HAL, the oil refineries and the aluminium plants belong to this stage, along with a policy of licensing and protection that reserved sectors for the state and for small industry. In the liberalisation period after 1991 licensing was abolished, private and foreign investment was welcomed, imports were opened and the industries that grew fastest were automobiles, pharmaceuticals, information technology, telecommunications, consumer goods and refining, with steel and aluminium expanding in the private sector too.

India's industrial economy today has certain features. It is diversified: the country makes everything from needles to satellites and is among the largest producers of steel, cement, textiles, two-wheelers, tractors, generic medicines and refined fuels. It is dualistic: a modern sector of large plants stands beside a vast small-scale and cottage sector of village and household units that employs many more people than the factories. It is regionally concentrated in a few belts: Mumbai–Pune, the Hugli valley, Bengaluru–Chennai, Gujarat, Delhi–NCR and the Chhotanagpur–Odisha mineral belt, leaving large areas with little industry. And it is still capital-poor and skill-poor relative to its size, which is why raising productivity, infrastructure and skills, and moving workers from farms into factories, is the country's central economic task.

Industries are classified in several ways, and the same industry belongs to one class in each.

1. On the basis of source of raw materials used. Agro-based industries use plant and animal products: cotton, woollen, jute, silk textiles, rubber and sugar, tea, coffee, edible oil, tobacco, leather and food processing. Mineral-based industries use minerals as raw material: iron and steel, cement, aluminium, machine tools, petrochemicals, glass and ceramics. Forest-based industries such as paper, matches and furniture, and marine-based industries such as fish processing, are sometimes added.

2. According to their main role. Basic or key industries are those that supply their products or raw materials to manufacture other goods, for example iron and steel, copper smelting and aluminium smelting; on them all other industries rest. Consumer industries produce goods for direct use by consumers: sugar, toothpaste, paper, sewing machines, fans, clothes and radios.

3. On the basis of capital investment. A small scale industry is defined with reference to the maximum investment allowed on the assets of a unit; the limit has been changed over time and is now defined under the Micro, Small and Medium Enterprises Act by investment in plant and machinery and turnover, with a micro unit at the lowest level. Beyond the limit is a large scale industry. Cottage or household industry, in which the family works at home with its own tools, as the weavers of Sambalpur and the brass workers of Balakati do, is the smallest unit of all.

4. On the basis of ownership. Public sector industries are owned and operated by government agencies: BHEL, SAIL (which runs Rourkela), NALCO, Coal India and the oil companies. Private sector industries are owned and operated by individuals or a group of individuals: Tata Steel (TISCO), Bajaj Auto, Dabur, Reliance. Joint sector industries are jointly run by the state and individuals or a group of individuals: Oil India Limited (OIL) was originally a joint venture, and Maruti Udyog began as one. Cooperative sector industries are owned and operated by the producers or suppliers of raw materials, workers or both, who pool the resources and share the profits or losses proportionately: the sugar industry in Maharashtra, the coir industry in Kerala and the Amul dairy in Gujarat.

5. Based on the bulk and weight of raw material and finished goods. Heavy industries handle bulky, heavy materials and products: iron and steel, shipbuilding, locomotives, cement. Light industries use light raw materials and produce light goods: electrical goods, electronics, watches, garments, pharmaceuticals. A heavy industry is tied to its raw material and needs cheap bulk transport; a light industry can be placed almost anywhere and follows the market and skilled labour.

Thus the Rourkela steel plant is mineral-based, basic, large scale, public sector and heavy, while a Sambalpuri handloom unit is agro-based, consumer, cottage, private (or cooperative) and light.

Industrial locations are complex in nature. They are influenced by the availability of raw material, labour, capital, power and market, and it is rarely possible to find all these factors available at one place. Consequently, manufacturing activity tends to locate at the most appropriate place where all the factors of industrial location are either available or can be arranged at lower cost. After an industrial activity starts, urbanisation follows; sometimes industries are located in or near the cities. Thus industrialisation and urbanisation go hand in hand. Cities provide markets and also provide services such as banking, insurance, transport, labour, consultants and financial advice to the industry. Many industries tend to come together to make use of the advantages offered by the urban centres known as agglomeration economies: a firm placed beside others shares suppliers, skilled workers, repair shops and transport, and gradually a large industrial agglomeration takes place, as at Mumbai, Kolkata, Chennai and Bengaluru.

The factors in detail. Raw material: industries using bulky, heavy or perishable raw materials that lose weight in processing must locate near the source, which is why sugar mills stand in cane fields, cement plants on limestone, steel plants near iron ore and coal, and paper mills near bamboo forests. Power: the coalfields drew the early industries and the availability of cheap electricity draws the aluminium smelters and ferro-alloy plants of Odisha to Angul and Jharsuguda. Labour: an industry needs plentiful labour, cheap for textiles and garments, skilled for engineering and electronics; Bengaluru's software industry grew on the engineers of its colleges. Capital: the money to build and run the factory is easier to raise in cities where banks and investors are, which favours Mumbai and Ahmedabad. Market: goods that are bulky, fragile or perishable when finished, such as bread, furniture, soft drinks and newspapers, and goods for a particular customer, such as car parts near a car plant, locate near the market. Transport: ports for imported raw materials and exports (Mumbai, Chennai, Paradip), railways for coal and ore, roads for finished goods. Water: steel, paper, chemicals and textiles need enormous quantities, so they stand on rivers, as Rourkela does on the Brahmani. Climate: humid air suited cotton spinning at Mumbai and Ahmedabad. Government policy: the state locates public plants in backward regions, gives tax concessions in industrial estates, special economic zones and export zones, and once controlled where industry could go by licensing.

In the pre-Independence period most manufacturing units were located in places from the point of view of overseas trade such as Mumbai, Kolkata and Chennai; consequently, there emerged certain pockets of industrially developed urban centres surrounded by a huge agricultural rural hinterland. The key to the decision of a factory location is the least cost: government policies and specialised labour also influence the location, but in the end an industry settles where the sum of the costs of getting the raw material, making the product and delivering it to the buyer is lowest.

The textile industry occupies a unique position in the Indian economy, because it contributes significantly to industrial production (about 14 per cent), employment generation (about 35 million persons directly, the second largest after agriculture) and foreign exchange earnings (about a quarter of exports). It is the only industry in the country which is self-reliant and complete in the value chain, from raw material to the highest value-added products.

In ancient India cotton textiles were produced with hand spinning and handloom weaving techniques; the muslins of Dhaka, chintz of Masulipatnam, calicos of Calicut and the gold-wrought cotton of Burhanpur, Surat and Vadodara were famous the world over. After the eighteenth century, power looms came into use, and our traditional industries suffered a setback as they could not compete with the mill-made cloth from England, which flooded India while Indian handloom cloth was taxed out of Britain. The first successful modern mill was set up in Mumbai in 1854, and the early cotton textile industry was concentrated in the cotton-growing belt of Maharashtra and Gujarat: availability of raw cotton, market, transport including accessible port facilities, labour, moist climate and the capital of Indian merchants all contributed to its localisation. Mumbai became 'Cottonopolis' and Ahmedabad the 'Manchester of India'.

This industry has close links with agriculture and provides a living to farmers, cotton boll pluckers and workers engaged in ginning, spinning, weaving, dyeing, designing, packaging, tailoring and sewing. The industry by creating demand supports many other industries such as chemicals and dyes, mill stores, packaging materials and engineering works. Today, there are nearly 1,600 cotton and human-made fibre textile mills in the country, about 80 per cent in the private sector and the rest in the public and cooperative sectors, and apart from these several thousand small factories have four to ten looms. While spinning continues to be centralised in Maharashtra, Gujarat and Tamil Nadu (whose Coimbatore is the 'Manchester of South India'), weaving is highly decentralised to provide scope for incorporating traditional skills and designs of weaving in cotton, silk, zari and embroidery. India has world-class production in spinning, but weaving supplies low-quality fabric as it cannot use much of the high-quality yarn produced in the country. Weaving is done by handloom, power loom and mills; the handloom sector alone employs millions, and the Sambalpuri ikat (bandha) of Bargarh and Sonepur, the Bomkai of Ganjam and the Kotpad of Koraput are Odisha's contribution. India exports yarn to Japan, and cotton goods to the United States, Britain, Russia, France, East European countries, Nepal, Singapore, Sri Lanka and African countries.

The industry faces problems: erratic power supply, obsolete machinery in the old mills, low output of labour, stiff competition with the synthetic fibre industry and with Bangladesh, Vietnam and China in garments, and the sickness of the composite mills of Mumbai and Ahmedabad, most of which have closed. The spinning mills of the south and the power loom towns of Surat, Bhiwandi and Tiruppur have taken their place.

Jute textiles. India is the largest producer of raw jute and jute goods and stands at second place as an exporter after Bangladesh. There are about 70 jute mills in India, and most of these are located in West Bengal, mainly along the banks of the Hugli river, in a narrow belt 98 km long and 3 km wide from Bansberia to Birlapur, with Kolkata at its centre. The factors responsible for their location in the Hugli basin are: the proximity of the jute-producing areas of the Ganga–Brahmaputra delta; inexpensive water transport, supported by a good network of railways, roadways and waterways to facilitate the movement of raw material to the mills; abundant water for processing the raw jute (retting, washing and softening); cheap labour from West Bengal and adjoining states of Bihar, Odisha and Uttar Pradesh; and Kolkata as a large urban centre providing banking, insurance and port facilities for the export of jute goods. The first mill was built at Rishra in 1855. In 2005 the National Jute Policy was formulated with the objective of increasing productivity, improving quality, ensuring good prices to the jute farmers and enhancing the yield per hectare. The main markets are the United States, Canada, Russia, the United Arab Republic, Britain and Australia. The growing global concern for environment-friendly, biodegradable materials has once again opened the opportunity for jute products, in shopping bags, carpets, geotextiles and decorative fabrics. The industry's challenges are stiff competition in the international market from synthetic substitutes and from other jute-producing countries like Bangladesh, Brazil, the Philippines, Egypt and Thailand, and the loss of the Bangladesh jute fields at Partition, which left the Hugli mills short of raw material. Odisha has a jute mill at Jagatpur near Cuttack, drawing on the jute of the coastal districts.

Sugar industry. India stands second as a world producer of sugar after Brazil but occupies the first place in the production of gur and khandsari. The raw material used in this industry is bulky and, in haulage, its sucrose content reduces: cane must be crushed within a day of cutting or it loses sugar, and about ten tonnes of cane give one tonne of sugar, so the mill must stand in the cane fields. There are over 460 sugar mills in the country, spread over Uttar Pradesh, Bihar, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Gujarat, Punjab and Haryana; sixty per cent of the mills are in Uttar Pradesh and Bihar, on the western Ganga plain from Meerut to Gorakhpur. The industry is seasonal, running only during the crushing season of five or six months, and is therefore ideally suited to the cooperative sector, in which the cane growers themselves own the mill, as they do in Maharashtra. In recent years there has been a tendency for the mills to shift and concentrate in the southern and western states, especially Maharashtra, because the cane produced there has a higher sucrose content, the cooler climate ensures a longer crushing season, and the cooperatives are more successful. The major challenges are the seasonal nature of the industry, old and inefficient methods of production, transport delay in reaching cane to factories, the need to maximise the use of bagasse (for power and paper) and molasses (for alcohol and ethanol), and the cane price disputes between growers and mills. In Odisha the mills at Aska (Ganjam), Bargarh, Nayagarh and Dhenkanal work the cane of their districts, and gur making is a village industry.

The iron and steel industry is the basic industry since all the other industries, heavy, medium and light, depend on it for their machinery. Steel is needed to manufacture a variety of engineering goods, construction material, defence, medical, telephonic, scientific equipment and a variety of consumer goods. Production and consumption of steel is often regarded as the index of a country's development. Iron and steel is a heavy industry because all the raw materials as well as the finished goods are heavy and bulky, entailing heavy transportation costs. Iron ore, coking coal and limestone are required in the ratio of approximately 4 : 2 : 1, along with manganese, dolomite and huge quantities of water. In the blast furnace the ore is reduced by coke to pig iron, which is then converted to steel in a basic oxygen or electric arc furnace and rolled into bars, sheets, rails and plates. Some quantities of manganese are also required to harden the steel.

India ranks among the top producers of crude steel in the world, second after China, and is the largest producer of sponge iron. Yet per capita consumption of steel is low, about 70 kg a year against a world average of over 200 kg, because the industry's growth was constrained until recently. India has several integrated steel plants, which handle everything from the raw material to the finished steel in one complex, and hundreds of mini steel plants, which use scrap iron and sponge iron in electric furnaces and make mild and alloy steel of given specifications. The integrated plants are: Jamshedpur (Tata Steel, 1907, the first, private), Bhilai (Chhattisgarh, 1959, Soviet collaboration), Rourkela (Odisha, 1959, German collaboration), Durgapur (West Bengal, 1962, British collaboration), Bokaro (Jharkhand, 1972, Soviet), Burnpur (IISCO, West Bengal), Bhadravati (Visvesvaraya Iron and Steel, Karnataka), Salem (Tamil Nadu) and Visakhapatnam (Vizag Steel, Andhra Pradesh, the first coastal plant, 1992). Most of the public sector undertakings market their steel through the Steel Authority of India Limited (SAIL), which owns Rourkela, Bhilai, Durgapur, Bokaro and Burnpur. Private plants have since been built at Kalinganagar and Angul in Odisha, Jamshedpur's expansion, Dolvi and Bellary.

The Chhotanagpur plateau region has the maximum concentration of iron and steel industries, with Jamshedpur, Rourkela, Bokaro, Durgapur and Burnpur within a circle of 300 km. This is largely due to the relative advantages the region has: low cost of iron ore from Odisha and Jharkhand, high grade raw materials in proximity (coking coal of Jharia, limestone, dolomite and manganese), cheap labour and the vast growth potential in the home market of the Ganga plain. Despite these advantages, the Indian steel industry has not been able to perform to its full potential largely due to: high costs and limited availability of coking coal, which must be imported from Australia; lower productivity of labour; irregular supply of energy; and poor infrastructure of railways and ports. Liberalisation and foreign direct investment have given a boost to the industry with the efforts of private entrepreneurs, and there is a need to allocate resources for research and development to produce steel more competitively, since India's steel is still costlier and its plants less efficient than those of Japan and Korea.

Aluminium smelting is the second most important metallurgical industry in India after iron and steel. Aluminium is light, resistant to corrosion, a good conductor of heat and electricity, malleable, and becomes strong when it is mixed with other metals. It is used to manufacture aircraft, utensils and wires, electrical transmission cables, railway coaches, cars, cans, foil, doors and window frames, and it has gained popularity as a substitute for steel, copper, zinc and lead in a number of industries. Aluminium is obtained from bauxite, which is first refined into alumina (aluminium oxide) and then reduced by electrolysis to the metal. Bauxite, the raw material used in the smelters, is a very bulky, dark reddish coloured rock, and about six tonnes of it give two tonnes of alumina and one tonne of aluminium; the refinery therefore sits at the mine. The electrolysis needs enormous power, about 15,000 units per tonne, so the smelter sits near cheap electricity. Regular supply of electricity and an assured source of raw material at minimum cost are the two prime factors for the location of the industry.

India has eight aluminium smelting plants located in Odisha (NALCO at Angul, BALCO's successor and Vedanta at Jharsuguda, and Hindalco at Hirakud), West Bengal (Belur), Kerala (Alupuram), Uttar Pradesh (Renukoot), Chhattisgarh (Korba), Maharashtra, Karnataka (Belagavi) and Tamil Nadu (Mettur). The industry began at Alupuram in Kerala in 1943 on the hydel power of the Pallivasal project, and Hindalco's Renukoot plant of 1962 grew on the Rihand dam's power and the bauxite of the Ranchi plateau. Today India produces over four million tonnes of aluminium a year and is among the top producers.

Odisha is the aluminium capital of India, and the reason is the coincidence of the two location factors: half the country's bauxite on the Eastern Ghats plateaus and a quarter of its coal in Talcher and Ib valley for captive thermal power. The National Aluminium Company (NALCO), a public sector unit set up in 1981 with French technology, mines bauxite at Panchpatmali in Koraput, refines it into alumina at Damanjodi below the mine (the largest alumina refinery in Asia), sends the alumina by rail 500 km to its smelter at Angul, which runs on its own 1,200 MW captive power plant burning Talcher coal, and exports surplus alumina through Visakhapatnam. Hindalco smelts at Hirakud on the hydel and thermal power of the Hirakud dam and Ib valley coal, with bauxite from Gandhamardan and elsewhere. Vedanta refines bauxite at Lanjigarh in Kalahandi and smelts at Jharsuguda in one of the largest smelters in the world, on a captive power plant of Ib valley coal. Rolling and extrusion units at Angul, Hirakud and Jharsuguda make sheet, foil and conductor. The industry's problems are the very high electricity cost, the pollution of red mud and fluoride from refineries and smelters, and the conflict over bauxite mining on the Niyamgiri hills sacred to the Dongria Kondh, which the Supreme Court settled in 2013 in favour of the tribe.

Chemical industries. The chemical industry in India is fast growing and diversifying: it contributes about three per cent of GDP and is the third largest in Asia and among the largest in the world by size. It comprises both large and small scale manufacturing units. Rapid growth has been recorded in both inorganic and organic sectors. Inorganic chemicals include sulphuric acid (used to manufacture fertilisers, synthetic fibres, plastics, adhesives, paints and dyes), nitric acid, alkalis, soda ash (used to make glass, soaps and detergents, and paper) and caustic soda; these industries are widely spread over the country, in Gujarat, Maharashtra, Tamil Nadu and Uttar Pradesh. Organic chemicals include petrochemicals, which are used for manufacturing synthetic fibres, synthetic rubber, plastics, dyestuffs, drugs and pharmaceuticals; organic chemical plants are located near oil refineries or petrochemical plants at Vadodara, Jamnagar, Mumbai, Haldia and now Paradip. The chemical industry is its own largest consumer: basic chemicals undergo processing to further produce other chemicals that are used for industrial application, agriculture or directly for consumer markets. India's pharmaceutical industry, centred on Hyderabad, Mumbai, Ahmedabad and Sikkim, is the largest supplier of generic medicines in the world. In Odisha the Paradip refinery's petrochemical complex, the chlor-alkali plant at Ganjam and the chromium chemicals of Jajpur belong to this industry.

Fertiliser industry. The fertiliser industry is centred around the production of nitrogenous fertilisers (mainly urea), phosphatic fertilisers and ammonium phosphate (DAP) and complex fertilisers which have a combination of nitrogen (N), phosphate (P) and potash (K). The third, potash, is entirely imported as the country does not have any reserves of commercially usable potash or potassium compounds in any form. India is the second largest producer of nitrogenous fertilisers. After the Green Revolution the industry expanded to several other parts of the country, following the natural gas of the HVJ pipeline, and there are large plants in Gujarat, Tamil Nadu, Uttar Pradesh, Punjab and Kerala, which together contribute half the production; other producers are Andhra Pradesh, Odisha, Rajasthan, Bihar, Maharashtra, Assam, West Bengal, Goa, Delhi, Madhya Pradesh and Karnataka. In Odisha the phosphatic fertiliser plant at Paradip (Paradeep Phosphates, now the largest DAP plant in the country, using imported rock phosphate and sulphur) and the plants at Rourkela and the revived Talcher urea project based on coal gasification are the centres. The fertiliser industry is tied to feedstock (gas, naphtha or coal) and to ports for imported inputs.

Cement industry. Cement is essential for construction activity such as building houses, factories, bridges, roads, airports, dams and other commercial establishments. This industry requires bulky and heavy raw materials like limestone, silica, alumina and gypsum, along with coal and electric power for the kiln, and rail transport; because limestone loses a third of its weight on burning, the plant stands on the limestone. The industry has strategically located plants in Gujarat that have suitable access to the market in the Gulf countries. The first cement plant was set up in Chennai in 1904. After Independence the industry expanded, and decontrol of price and distribution since 1989 and other policy reforms led it to make rapid strides in capacity, process, technology and production. There are over 200 large plants and more than 350 mini cement plants, in Rajasthan, Madhya Pradesh, Andhra Pradesh, Telangana, Chhattisgarh, Karnataka, Gujarat and Tamil Nadu. India is the second largest cement producer in the world, and improvement in quality has found the produce a readily available market in East Asia, the Middle East, Africa and South Asia; the industry is doing well in terms of production as well as export. In Odisha cement plants at Rajgangpur (Sundargarh, on the Lanjiberna limestone, one of the oldest in the country, 1951), Bargarh (on the Dungri limestone) and grinding units at Cuttack and Jajpur using slag from the steel plants supply the state's construction boom.

Automobile industry. Automobiles provide vehicles for quick transport of goods, services and passengers. Trucks, buses, cars, motorcycles, scooters, three-wheelers and multi-utility vehicles are manufactured in India at various centres. After the liberalisation of 1991, the coming in of new and contemporary models stimulated the demand for vehicles in the market, which led to the healthy growth of the industry, including passenger cars, two- and three-wheelers. This industry had experienced a quantum jump in less than 15 years: foreign direct investment brought in new technology and aligned the industry with global developments, and Maruti's collaboration with Suzuki at Gurugram in 1983 was the turning point. At present there are dozens of manufacturers of passenger cars and multi-utility vehicles, commercial vehicles, two- and three-wheelers, and India is the largest maker of two-wheelers and tractors in the world, the third largest of passenger cars and among the leaders in commercial vehicles. The industry is located around Delhi (Gurugram, Manesar, Noida), Pune (Chakan, Pimpri), Chennai (Sriperumbudur, Oragadam, the 'Detroit of Asia'), Jamshedpur, Kolkata, Lucknow, Indore, Hyderabad, Jabalpur, Bengaluru and Sanand in Gujarat. The industry is a great multiplier: every car plant draws hundreds of component makers, and Odisha has no vehicle plant yet, though its steel and aluminium supply the industry.

Information technology and electronics industry. The electronics industry covers a wide range of products from transistor sets to television, telephones, cellular telecom, telephone exchanges, radars, computers and many other equipments required by the telecommunication industry. Bengaluru has emerged as the electronic capital of India. Other important centres for electronic goods are Mumbai, Delhi, Hyderabad, Pune, Chennai, Kolkata, Lucknow and Coimbatore. Chip manufacturing, long absent, is now being set up in Gujarat and Assam. The software and IT services industry is India's success story of the last three decades: it exports over 150 billion dollars a year, employs over five million people, and has made Bengaluru, Hyderabad (Cyberabad), Pune, Chennai, Noida–Gurugram, Kolkata and Bhubaneswar (Infocity) its centres. The 18 software technology parks set up across the country provide single-window service and high data communication facility to software experts, and the industry has produced a large number of skilled jobs. This industry has been a major foreign exchange earner in the last few years because of its fast growing Business Process Outsourcing (BPO) sector, in which back-office work, call centres and data processing for the world's companies are done from India. The continuing growth in the hardware and software is the key to the success of the IT industry in India, and a good proportion of the jobs it creates have gone to women, nearly a third of the workforce. In Odisha, Bhubaneswar's Infocity and Infovalley host the offices of the large IT companies and the state's own software firms, and the city is the IT hub of eastern India after Kolkata.

Odisha's industrial story is that of a mineral state slowly learning to process what it digs. At Independence the state had a handful of factories: the Rajgangpur cement plant (1951), the Aska sugar mill, the Jagatpur jute mill, the Brajrajnagar paper mill, the Choudwar textile mill and some rice and oil mills. The decisive step was the choice of Rourkela for the second public sector steel plant, built with German collaboration between 1955 and 1959 by Hindustan Steel (now SAIL) beside the Brahmani in Sundargarh; it brought the fertiliser plant, the township, the Mandira dam and a generation of skilled workers to a tribal district and remains the state's largest single industrial unit. The 1980s added NALCO's aluminium complex at Damanjodi and Angul with its captive power plant, the Talcher and Ib valley thermal stations, the Paradeep Phosphates fertiliser plant at Paradip port, and the ferro-alloy plants of Jajpur Road, Choudwar and Therubali. Since the 1990s private investment has built the steel plants of Tata Steel at Kalinganagar (Jajpur), JSPL at Angul, Bhushan (now JSW) at Meramandali and Vedanta at Jharsuguda, the alumina refinery at Lanjigarh, the Paradip refinery of Indian Oil (2016), the JSW and Adani ports at Dhamra and Gopalpur, a string of sponge iron, pellet and pig iron units in Keonjhar, Sundargarh and Jajpur, the cement plants at Bargarh and the grinding units near the steel plants, and Bhubaneswar's IT industry.

The industrial regions of the state are therefore: (1) the Rourkela–Sundargarh region of steel, cement, fertiliser and refractories on the iron ore and limestone; (2) the Angul–Talcher–Dhenkanal region of coal, thermal power, aluminium, steel and ferro-alloys; (3) the Jharsuguda–Sambalpur–Hirakud region of coal, power, aluminium and paper (the Brajrajnagar mill is closed, but the Sambalpur area has sponge iron); (4) the Jajpur–Kalinganagar–Choudwar region of chromite, ferro-alloys and steel; (5) the Paradip port region of the refinery, fertilisers, petrochemicals and the proposed steel plant; (6) the Bhubaneswar–Cuttack region of IT, engineering, textiles, food processing and the pharmaceutical park; (7) the Koraput–Damanjodi region of bauxite, alumina and HAL's aircraft engine factory at Sunabeda; and (8) the coastal belt of Ganjam and Balasore with the chlor-alkali plant, cashew processing, rare earths at Chhatrapur, the Balasore rubber and alloy plants and the Gopalpur port. The Odisha Industrial Infrastructure Development Corporation (IDCO) provides land and estates, and IPICOL promotes investment.

Alongside the large plants, the state's traditional and small industries employ far more people: the handlooms of Sambalpur, Bargarh, Sonepur and Berhampur, the brass and bell-metal work of Balakati and Kantilo, the silver filigree of Cuttack, the appliqué of Pipili, the stone carving of Puri and Lalitgiri, the pattachitra of Raghurajpur, the tasar silk of Mayurbhanj, and rice milling, cashew and sea-food processing along the coast. The state's problems are that most of its industry is in the primary stage of processing, exporting ore, alumina, ferro-alloys and steel slabs rather than finished goods; that industry is concentrated in the north and centre while the south and west remain poor; that the mining and metal districts suffer displacement and pollution; and that engineering, electronics and consumer goods, which create most jobs, are still small. Moving up the chain from ore to machine is the task ahead.

Although industries contribute significantly to India's economic growth and development, the increase in pollution of land, water, air and noise and the resulting degradation of environment that they have caused cannot be overlooked. Industries are responsible for four types of pollution.

Air pollution is caused by the presence of a high proportion of undesirable gases, such as sulphur dioxide and carbon monoxide, and of suspended particulate matter. Airborne particulate materials contain both solid and liquid particles like dust, spray, mist and smoke. Smoke is emitted by chemical and paper factories, brick kilns, refineries and smelting plants, and burning of fossil fuels in big and small factories that ignore pollution norms. Toxic gas leaks can be very hazardous with long-term effects: the Bhopal gas tragedy of December 1984, in which methyl isocyanate leaked from a pesticide plant and killed thousands, is the worst industrial disaster of India. Air pollution adversely affects human health (asthma, bronchitis, cancer), animals, plants, buildings (the Taj Mahal's marble was yellowed by the fumes of the Mathura refinery and Agra's foundries) and the atmosphere, contributing to acid rain and global warming. The dust of the ore crushers and the fly ash of the thermal stations of Talcher and Angul make Odisha's industrial belt one of the most polluted in the country.

Water pollution is caused by organic and inorganic industrial wastes and effluents discharged into rivers. The main culprits are paper, pulp, chemical, textile and dyeing, petroleum refineries, tanneries and electroplating industries that let out dyes, detergents, acids, salts and heavy metals like lead and mercury, pesticides, fertilisers, synthetic chemicals with carbon, plastics and rubber into the water bodies. Fly ash, phospho-gypsum and iron and steel slags are the major solid wastes in India. Thermal pollution of water occurs when hot water from factories and thermal plants is drained into rivers and ponds before cooling, killing fish and aquatic life. Wastes from nuclear power plants, nuclear and weapon production facilities cause cancers, birth defects and miscarriages. Soil and water pollution are closely related: dumping of wastes, especially glass, harmful chemicals, industrial effluents, packaging, salts and garbage renders the soil useless, and rain water percolates to the soil carrying the pollutants to the ground water. In Odisha the chromium of the Sukinda mines, the effluents of the Rourkela plant into the Brahmani, the red mud of the alumina refineries and the ash ponds of Talcher are the chief cases.

Noise pollution not only results in irritation and anger; it can also cause hearing impairment, increased heart rate and blood pressure, among other physiological effects. Unwanted sound is an irritant and a source of stress. Industrial and construction activities, machinery, factory equipment, generators, saws and pneumatic and electric drills also make a lot of noise. The whole burden of industrial pollution falls most heavily on the poor who live nearest the factories, and the last topic shows how it can be controlled.

Every litre of waste water discharged by our industry pollutes eight times the quantity of fresh water, so the control of industrial pollution is a necessity, not a luxury. The measures fall under four heads.

1. Minimising the use of water for processing by reusing and recycling it in two or more successive stages. A steel plant or a paper mill can treat and recirculate its cooling and process water instead of drawing fresh water from the river and discharging it dirty; the Rourkela plant and the Paradip refinery now recycle much of theirs. 2. Harvesting of rain water to meet water requirements, so that the factory's demand does not dry the wells of the villages around it. 3. Treating hot water and effluents before releasing them in rivers and ponds. Treatment of industrial effluents can be done in three phases: (a) primary treatment by mechanical means, screening, grinding, flocculation and sedimentation, which removes the solids; (b) secondary treatment by biological process, in which bacteria digest the organic matter; and (c) tertiary treatment by biological, chemical and physical processes, which removes the remaining chemicals and nutrients and includes the recycling of waste water. Common effluent treatment plants serve clusters of small units that cannot afford their own. Hot water must be cooled in towers or ponds before release.

4. Control of air pollution. Particulate matter in the air can be reduced by fitting smoke stacks to factories with electrostatic precipitators, fabric filters, scrubbers and inertial separators, which trap dust and ash before they leave the chimney; the Talcher stations catch over 99 per cent of their fly ash by precipitators, and the ash is used for bricks, cement and road building. Smoke can be reduced by using oil or gas instead of coal in factories, by washing coal and by burning fuels at the right temperature. Sulphur dioxide is removed by flue-gas desulphurisation. 5. Control of noise pollution. Machinery and equipment can be used and generators fitted with silencers; almost all machinery can be redesigned to increase energy efficiency and reduce noise; noise-absorbing material may be used apart from personal use of earplugs and earphones; and factories can be zoned away from homes.

6. Law and responsibility. The Environment (Protection) Act 1986, the Water Act 1974 and the Air Act 1981 give the Central and State Pollution Control Boards the power to set standards and close offending units; every large project needs an environmental impact assessment and clearance; and the National Green Tribunal hears environmental disputes. Green belts of trees around plants, the reclamation of mined land, the disposal of hazardous waste in secure landfills and the shift to cleaner technology complete the list. The National Thermal Power Corporation (NTPC), the major power provider, has shown the way with an Environment Management System (EMS) certified to ISO 14001: it adopts the latest technology and ongoing upgrading, provides for reducing waste generation through equipment that maximises ash utilisation, monitors emissions continuously, adopts liquid waste management and ash pond management, ash water recycling and lining of ash ponds, and creates green belts and eco-parks around its plants. The Odisha State Pollution Control Board now monitors the air of Angul, Talcher, Jharsuguda and Rourkela hour by hour and has ordered several sponge iron plants to close for violation. The lesson of the chapter is that industry and a clean environment are not enemies; a plant that recycles its water, catches its dust and treats its effluent is also usually the more efficient plant.