The proposed Rs 10,000 crore ingot and wafer manufacturing facility by Tata Power in Gopalpur, Odisha is more than an industrial project—it is a strategic inflection point for India’s semiconductor and renewable energy ambitions, and a transformative opportunity for South Odisha’s economic landscape. This will help unlock South Odisha’s SEZ Advantage and India’s Semiconductor Future.
What makes Gopalpur uniquely suited for this project is the presence of the Gopalpur Special Economic Zone (SEZ). SEZs are designed to provide world-class infrastructure, tax incentives, and regulatory flexibility to attract investment in globally competitive industries.
Global Connectivity: With Gopalpur Port integrated into the SEZ, the plant will have direct access to international shipping routes, enabling wafer exports to Southeast Asia, Africa, and Europe.
Policy Incentives: SEZ status ensures fiscal benefits such as duty-free imports of machinery, tax holidays, and simplified compliance, reducing project costs and accelerating timelines.
Industrial Synergy: The SEZ already hosts industrial activity, creating a ready ecosystem of logistics, utilities, and ancillary services. Tata Power’s plant will anchor this ecosystem, attracting suppliers of chemicals, precision machinery, and cleanroom technologies.
By situating the ingot and wafer plant in Gopalpur SEZ, Tata Power leverages a policy-enabled growth platform, ensuring both competitiveness and sustainability.
Employment and Livelihoods
The project is expected to generate 5,000-7,000 direct jobs and 20,000+ indirect jobs in logistics, MSMEs, and services. For Ganjam district, where migration has long been a livelihood strategy, this represents a structural shift towards local employment.
Urban Transformation
The influx of investment will stimulate demand for housing, healthcare, and education in Berhampur and surrounding towns. The multiplier effect could raise district GDP growth by 2–3 percentage points annually, lifting household incomes and reducing outmigration.
Regional Rebalancing
South Odisha has historically lagged behind coastal and mining districts in industrialisation. The Gopalpur SEZ project will rebalance regional growth, integrating South Odisha into national and global trade networks.
South Odisha continues to face stark inequities in development compared to coastal and northern regions, with persistent poverty, low infrastructure investment, and limited access to education and healthcare. Despite Odisha’s overall economic growth in recent decades, regional disparities remain entrenched: southern districts such as Koraput, Malkangiri, Nabarangpur, and Rayagada lag behind in industrialisation, connectivity, and human development indicators. These areas are heavily dependent on agriculture and forest-based livelihoods, yet suffer from low productivity, vulnerability to climate shocks, and inadequate market linkages. The imbalance is further widened by uneven public spending and concentration of industries in coastal belts, leaving South Odisha marginalised in terms of employment opportunities and social mobility.
Southern districts like Malkangiri, Koraput, and Nabarangpur have poverty rates exceeding 50 per cent, compared to less than 20 per cent in coastal districts such as Cuttack and Khurda. Literacy in Koraput (49 per cent) and Malkangiri (48 per cent) is far below the state average of 73.5 per cent (2021 estimates). Infant mortality in tribal-dominated southern districts is above 50 per 1,000 live births, compared to the state average of 41. Road density in South Odisha districts is less than 50 km per 100 sq. km, while coastal districts average over 120 km per 100 sq. km. More than 70 per cent of households in South Odisha depend on agriculture and forest produce, with minimal industrial or service-sector opportunities, unlike coastal Odisha where industrial hubs drive employment. South Odisha remains structurally disadvantaged, with weaker human development outcomes and limited access to growth opportunities compared to the coastal belt.
The national strategic benefits include semiconductor sovereignty besides RE leadership
Ingots and wafers are the first step in chip fabrication. By producing them domestically, India strengthens its Semicon India Mission (Rs 76,000 crore) and lays the foundation for attracting global fabs. Odisha’s SEZ-based plant could become a cornerstone of India’s semiconductor corridor.
India’s target of 500 GW renewable energy capacity by 2030, with ~280 GW from solar, requires affordable and reliable inputs. Domestic wafer production will reduce costs of solar panels, making renewable energy more competitive and accelerating the green transition.
With global wafer demand rising at 8-10 per cent CAGR, Odisha—via Gopalpur SEZ—could emerge as an export hub, positioning India not just as a consumer but as a global supplier in critical technologies.
Policy and planning imperatives for the Government of Odisha will include
Leverage SEZ status: Maximise fiscal and regulatory incentives to attract ancillary industries.
Skill development: Establish training centers at Berhampur University and ITIs for semiconductor and solar technologies.
Cluster development: Promote industrial clusters around Gopalpur SEZ, integrating logistics, chemicals, and precision tools.
For Civil Society
Inclusive growth: Advocate for local hiring, CSR investments in schools and hospitals, and environmental safeguards.
Social transformation: Use industrialisation to reduce migration, empower women, and enhance digital literacy.
For National Policymakers
Strategic autonomy: Recognise wafer manufacturing as a national security priority.
Distributed ecosystem: Integrate Odisha’s SEZ plant with semiconductor fabs in Gujarat and Karnataka.
Green transition: Align wafer production with India’s renewable energy roadmap.
The Tata Power ingot and wafer project in Gopalpur SEZ is not just an industrial investment—it is a strategic asset for India’s future. For Ganjam and South Odisha, it promises jobs, infrastructure, and prosperity. For India, it secures semiconductor sovereignty, renewable energy competitiveness, and global trade leadership.
By harnessing the SEZ advantage, Odisha can position Gopalpur as a new industrial frontier, ensuring that South Odisha becomes a vital node in India’s global technology supply chain.
Charudutta Panigrahi is a technocrat and a policy specialist
Views expressed are the author’s own and don’t necessarily reflect those of Down To Earth