‘‘The high agricultural growth rate is welcome as it continues to provide employment to over 80% of all workers in the state,’’ said V.J. Ravishankar, World Bank Lead Economist and Co-Team Leader. ‘‘Measures to improve productivity and economic returns from agriculture are at the heart of this operation and will have far-reaching impact for the rural poor,’’ he said in the bank statement.

With the series of investor-friendly measures in lines with the bank policy being taken by the Navin Patnaik Government in the past couple of years, officials said in last 12 months Orissa has risen to No. 1 state in the terms of investment projects. ‘‘This is the first step towards attracting major projects in the state,’’ the official said.

Though it is well possible that many projects might not see the light of the day, the fact that major companies like Posco and Mittal Steel are actually setting up their mega plants in the state reflects the confidence in the state government, officials point out.

‘‘Mineral industry is going to be an important part of the growth story,’’ said the bank official, who has been keeping a tab on the development in the state, adding that the Patnaik Government has taken a number of serious steps in this regard including a comprehensive resettlement and rehabilitation policy developed in assistance with UNDP.

With the state showing signs of turnaround, officials said: ‘‘Fiscal situation of Orissa has shown a remarkable improvement. Just three years ago they were in an extremely tight situation. Last two years they did not have even a single day of overdraft. There is now more fiscal space for undertaking development.’’

... contd.