Paradip, March 15: The government has finally begun to accelerate the process to establish the foreign timber processing zone for wood-based industries near Paradip.

The project was planned in 2011 to exploit employment potential in wood-based industries following a rise in demand for foreign timber products in the state. However, the project failed to take off even though local entrepreneurs had showed interest. The ambitious project could not take off for almost five years owing to the non-availability of land.

However, things have progressed somewhat recently after those issues were resolved.

"We are hopeful that the foreign timber processing units would come up in Paradip to bolster the local economy," said state micro, small and medium enterprises secretary Gagan Kumar Dhal.

According to the detailed project report prepared earlier, 400-500 acres were required for the project. However, it has now been reduced to 100 acres to speed up the project. A patch of land under state-run Industrial Infrastructure Development Corporation has also been identified.

Dhal said the technical and legal formalities for land transfer were being worked out.

"We have held discussions with Paradip Port Trust authorities. They have agreed to allot plot within the port's prohibited operational area for stockpiling of the imported timber against certain charges," Dhal added.

The port trust authorities have also committed to extend logistical support to the project. The port would be used to import timber from southeast Asian countries, principally Indonesia and Myanmar.

The timber processing zone and wood-based units would be set up at the identified project site on the outskirts of the port township. The imported timber would be later transported to the processing zone and wood-based units, which would not be around 5-7km from the port stockyard, said Dhal.

The demand for foreign timber is high in the state. The cluster of wood-based units would be able to cater to local markets and become commercially viable as well. Eight entrepreneurs have already expressed interest in setting up units at Paradip, he said.

"The department would shortly submit a proposal to the state forest department for the project's environmental clearance," said Dhal.

Additional principal chief conservator of forest J.P. Singh said an industrial cluster of this nature would reduce the pressure on the indigenous forest resources and meet the wood-based needs of the people.

"We will forward the environmental clearance proposal to the Union ministry for environment and forest. However, we are yet to receive it," he said.