The govt. of Orissa has been urging several financial institutions to encourage the establishment of new industrial units in backward states .It has been asking the central Government to initiate such policies in regard to licensing fiscal; financial matters to encourage to establish the new industrial units in the state. Since Independence 49 large Scale industries have been setup in public and Private Sector in the state, of which most of them are mineral based.

          Govt. of India concluded contracts with the leading steel manufacturing companies of other countries during 1954-56 for the establishment of modern integrated and iron plants on package deal basis . This was a great step towards the laying of a stable foundation for the industrial development of the country. As a result, a German combine of West Germany built on integrated iron steelwork at Rourkela in Sundargarh district on northern Orissa. Rourkela is connected by railways with calcutta and other industrial towns of West Bengal. Being located at Calcutta-Mumbai railway line it is conveniently connected with industrial towns of morden India.