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Odisha, on India’s eastern coast, has become a notable example of disaster management and climate adaptation. Frequent cyclones, floods, and coastal erosion have driven the state to implement adaptation strategies praised globally for their effectiveness. However, beneath these success stories lies a more complex narrative that challenges the sustainability and equity of these measures. As climate change intensifies, evaluating these strategies through a lens of long-term resilience and social justice is crucial.

Successes in Disaster Management

Odisha’s coastal region, home to 42 million people, has faced severe cyclones, such as the 1999 supercyclone, which claimed nearly 10,000 lives. This tragic event marked a turning point, leading to significant investments in disaster preparedness. Since then, measures have dramatically reduced fatalities in subsequent cyclones. For instance, Cyclone Phailin in 2013 resulted in just 45 deaths, showcasing the effectiveness of the state’s interventions.

The construction of over 800 multi-purpose cyclone shelters along the coastline is a central aspect of Odisha’s disaster management strategy. These shelters provide refuge during storms, safeguarding lives. Additionally, an effective early warning system, reaching over 1,200 villages, ensures communities are alerted well in advance of storms. These efforts have been instrumental in moving Odisha toward a “zero casualty” goal, transforming it into a global model of proactive disaster management.

The Unseen Costs of Adaptation

While reducing fatalities is undeniable, the long-term social and economic impacts on affected communities are often overlooked. Social and economic displacement is one major issue. For instance, the relocation of 818 households from Satabhaya to Bagapatia is often cited as a model of managed retreat—a strategy to move communities from vulnerable areas to safer locations. However, this disrupts community ties, severs connections to ancestral lands, and imposes new economic challenges as people adapt to unfamiliar environments.

Moreover, the emphasis on hard infrastructure like cyclone shelters and embankments often comes at the expense of more sustainable, nature-based solutions. Nature-based solutions, such as restoring mangrove forests, can provide multiple benefits: they offer a natural barrier against storm surges and support local livelihoods through enhanced fishery resources. Yet, despite their potential, these solutions represent only a small fraction of adaptation efforts in Odisha. Over-reliance on structural interventions can unintentionally alter natural hydrological systems, increasing vulnerability elsewhere.

The Equity Question

While the benefits are widely recognized, they are not evenly distributed across the population. Wealthier individuals and communities often have better access to government programs and resources, enabling them to take full advantage of the support. In contrast, poorer and marginalized groups struggle to access these benefits, leaving them more vulnerable to climate change impacts. For example, the shift towards climate-resilient agriculture, including introducing saline-tolerant rice varieties, has largely benefitted larger landholders who can afford the necessary inputs and technologies. Smallholders often lack resources to implement these changes, making them more prone to crop failure and economic loss.

Furthermore, the focus on disaster risk reduction sometimes overshadows the underlying drivers of vulnerability, such as poverty, inequality, and lack of access to basic services. Addressing these root causes is essential for building true resilience. Without tackling these fundamental issues, even the most effective adaptation strategies will fall short of ensuring long-term sustainability and social justice.

A Call for a More Balanced Approach

Odisha’s experience offers valuable lessons for other regions facing similar climate challenges. While the state’s disaster management successes are commendable, as climate impacts intensify, a more balanced approach is necessary. This approach should prioritize immediate disaster risk reduction and long-term socio-ecological resilience and equity. Scaling up nature-based solutions, such as expanding mangrove plantations and promoting sustainable agriculture practices, can provide immediate protection while ensuring the long-term health of ecosystems and communities.

Additionally, efforts must be made to ensure that adaptation benefits are distributed equitably, with targeted support for vulnerable groups. This includes enhancing access to resources and technologies for smallholders, ensuring that marginalized communities have a voice in decision-making, and addressing the social and economic impacts of relocation and other adaptation measures.

In conclusion, Odisha’s journey from frequent disaster-induced tragedies to a global model of climate adaptation is impressive. However, as climate change’s impacts grow more severe, it is crucial to critically assess the sustainability and equity of these efforts. By adopting a more holistic and inclusive approach, Odisha and other regions can build resilience that stands the test of time. The true test of effective climate adaptation will be our ability to balance immediate needs with the long-term goal of building resilient, equitable societies that can withstand future challenges.

The writer is a faculty member at NCAER in New Delhi. Views are personal.

From its management of the devastating Super Cyclone in 1999 to the more recent challenges posed by the Covid-19 pandemic, the state of Odisha has been a testament to the power of adaptive governance. In this post, Souryabrata Mohapatra discusses four key aspects of Odisha’s model for disaster resilience – multi-layer institutional framework, ground-up approach, capacity-building, and infrastructure and technology – reflecting the state’s ethos of valuing every life.

The eastern state of Odisha has historically faced numerous severe natural disasters (see Figure 1 below) – most notably the Super Cyclone of 1999, which resulted in significant loss of life and property. Odisha’s geographical positioning is both a boon and bane. Its long coastline along the Bay of Bengal provides favourable conditions such as a thriving fishing industry and major ports. the location also makes it particularly vulnerable to cyclones, which bring with them heavy rains, storm surges, and strong winds – leading to flooding and landfalls (Figure 2). In addition, the subtropical coastal climate exacerbates the state’s susceptibility to extreme weather events. Odisha’s rivers, including the Mahanadi, Brahmani and Baitarani, also contribute to the flooding risk, especially when cyclonic rains coincide with high tides.

With a large proportion of the population dependent on fishing and agriculture, climate events make them especially vulnerable and the state grapples with significant socioeconomic challenges such as high poverty rates.

Figure 1. Disaster fatalities in Odisha, 1999-2011

Figure 2. Households’ experiences of cyclone severity in Odisha, 1999-2019

In this post, I discuss four key aspects of Odisha’s model for disaster resilience – multi-layer institutional framework, ground-up approach, capacity-building, and infrastructure and technology – reflecting the state’s ethos of valuing every life. Drawing broad lessons for other Indian states and developing countries that may be facing similar challenges, I also highlight a few areas for further strengthening so that Odisha can continue to solidify its position as a leader in disaster resilience.

Multi-layer institutional framework

When the Super Cyclone hit the state in 1999, a multi-layer institutional framework was established, down to the grassroots level. This framework, exemplified by the Odisha State Disaster Management Authority (OSDMA), embodies the state’s commitment to saving lives and building resilience. The set-up aligned all stakeholders, including government officials, communities and NGOs, toward a common goal of disaster preparedness and prompt and effective response. This coordinated approach has since been ingrained in the state’s ethos and has been instrumental in effectively managing subsequent crises, as evidenced by the timely evacuations and relief efforts during both the pandemic and cyclonic events in recent years.

Besides OSDMA, the Odisha Climate Change Action Plan was also conceived in the wake of the Super Cyclone. Implementation of Village Disaster Management Plans and decentralisation of disaster response highlights the state’s emphasis on grassroots engagement and participatory governance.

When Odisha faced the dual challenges of the Covid-19 pandemic and a cyclone, its robust institutional framework was crucial. The state’s first Covid-19 case emerged on 15 March 2020. Drawing on its disaster management experience, Odisha adapted its strategies to tackle the pandemic effectively.

The state’s proactive measures helped control the Virus, safeguarding livelihoods, health, and the economy. Odisha’s pre-existing 824 multipurpose cyclone and flood shelters became invaluable as quarantine centres and temporary medical facilities for locals and returning migrants.

Field officials reported that these shelters saved lives by providing food and enabling social distancing (Banerjee and Mohapatra 2023). Additionally, state and district crisis committees facilitated informed policy decisions, significantly reducing infection rates.

Ground-up approach

Central to Odisha’s adaptive governance approach is the active involvement of communities and NGOs in disaster preparedness and response. Through initiatives like Community-Based Disaster Preparedness (CBDP), the state empowers local communities to become first responders and active participants in disaster management. NGOs play a crucial role in capacity-building, vulnerability assessments and supporting government-led initiatives, thereby fostering a collaborative ecosystem for disaster resilience.

Odisha’s commitment to decentralised decision-making is evident in its empowerment of local authorities, particularly through the involvement of Panchayati Raj Institutions (PRIs) in disaster management. The amendment of laws and enforcement of strict compliance measures, such as the imposition of swift and stringent lockdowns during the pandemic, illustrates the state’s proactive approach towards risk reduction and mitigation. By amending the Odisha Gram Panchayat Act of 1964 in 2020, the state empowered local authorities to manage disaster planning and response, enabling swift, localised decision-making. Odisha was one of the first states in India to impose a prompt lockdown, resulting in lower infection rates and deaths compared to other states (Sahoo and Kar 2021).

Capacity-building

Odisha has prioritised capacity-building across all levels of governance and society, recognising the importance of preparedness in disaster resilience.

More importantly, by integrating disaster management into educational curricula and training programmes for elected representatives and volunteers, the state aims to foster a culture of resilience from the grassroots to the top layers of state administration. This operates at multiple levels, like educational institutions (disaster management is taught in schools and colleges to educate the younger generation on preparedness and response), elected representatives (training is provided to all elected officials, from the Chief Minister to ward members, promoting informed decision-making during crises), community (OSDMA trains community volunteers in disaster response skills, and places emphasis on women’s participation for inclusive preparedness efforts), institutional framework (state and district Disaster Management Authorities coordinate disaster management plans and provide regular training for officials at all levels, enhancing response capabilities).

Infrastructure and technology

Investments in disaster-resilient infrastructure and long-term mitigation strategies, such as coastal embankment protection and shelter belt plantation, underscore Odisha’s commitment to building back better and enhancing its overall resilience.

Odisha’s collaboration with international partners and installation of hi-tech equipment have significantly enhanced its early warning system and, hence, disaster preparedness. Partnerships with organisations like Earth Network and RIMES (Regional Integrated Multi-Hazard Early Warning System) have enabled the deployment of lightning detection and early warning systems, reducing fatalities caused by lightning strikes. Moreover, the integration of modern communication technologies, such as the Early Warning Dissemination Systems, ensures timely dissemination of critical information to vulnerable communities, thereby enhancing their preparedness and resilience.

Lessons, and way forward

Odisha’s disaster management model has effectively decreased the loss of lives, as seen in recent years. The state’s ‘zero casualty’ strategy has garnered commendations, including awards and acknowledgements from both the central government and the United Nations.

Indeed, Odisha’s disaster management model offers valuable insights, as highlighted by Banerjee & Mohapatra (2023). Firstly, it demonstrates that fatalities can be minimised and, in some instances, entirely prevented when the system is creatively aligned with the ethos of valuing every life. Second, it underscores the importance of both widespread dissemination of disaster warnings and the need for a responsive system that is both adaptable and efficient down to the grassroots level. Lastly, it highlights the significance of fostering a culture of readiness and skill enhancement among all stakeholders.

To enhance its disaster management capabilities further, Odisha should prioritise several key areas. First, investing in more resilient infrastructure, such as disaster-resistant housing and power systems, can significantly reduce damage and loss during natural disasters. Developing shock-responsive social protection systems is crucial to providing timely assistance to vulnerable populations during crises, ensuring that no one is left behind. Bolstering early warning systems through technological enhancements and expanding the use of real-time information applications like SATARK will improve disaster preparedness and response. Engaging communities more deeply in disaster preparedness is essential – regular training and capacity-building programmes, with a particular focus on increasing women’s participation, will empower communities to be proactive and resilient. Empowering local authorities and PRIs to make swift and effective decisions can boost response times and efficiency at the grassroots level.

Additionally, regularly updating disaster management plans, continuously assessing risks and vulnerabilities and implementing detailed standard operating procedures, will ensure that Odisha remains prepared for various types of disasters.

The pressing question remains: How can other regions adapt and implement these successful strategies to address their unique challenges and vulnerabilities, fostering a global culture of resilience and preparedness?

The author has received a journal award for this study. 

The long road ahead to meaningful energy transition.

From bringing the power sector under GST with low rates to government support for MSMEs in the renewable energy space, a lot remains to be done

The impact of climate change is unmistakable, as seen in the rising number of heat-related illnesses and deaths in India and other regions across Asia, Europe, and North America, as also the intense rainfall in parts of the country this monsoon over short periods leading to flash floods and landslides.

Green development is not just a necessity but an opportunity for India to lead in the global fight against climate change. By 2030, India has pledged to install 500 GW of renewable energy capacity, produce 50 lakh tonnes of green hydrogen annually, achieve 30% EV sales, and cut CO2 emissions by 1 billion tonnes through enhanced energy efficiency. This year when the finance minister presented the budget, the government faced a critical question: What bold actions to take to meet these ambitious goals?

The government made significantly larger allocations to the ministry of new and renewable energy in the budget for this fiscal, compared to the revised estimates for 2023-24 — ₹19,100 crore versus ₹7,848 crore, respectively. Solar power grid saw a 79% rise in allocation, while the overall solar energy space saw this jump to ₹16,394.75 crore from ₹6,041.56 crore. The focus on energy transition was clear from major budgetary allocations in the clean energy space, as well as policy steps such as expansion of the list of exempted capital goods for the manufacture of solar cells and panels in the country as well as discontinuation of the customs-duty exemption on solar glass and tinned copper interconnects.

Despite the positive developments, there remain critical gaps that need to be addressed. As of now, India’s installed renewable energy capacity stands at approximately 150 GW, well short of the 2022 target of 175 GW. This shortfall indicates a significant lag that must be overcome to meet the 2030 goals.

The government had recently announced ₹7,453 crore in viability gap funding for two large-scale offshore wind projects totalling 1 GW. However, to foster a comprehensive green transition, more extensive support is necessary, especially for MSMEs. Estimates suggest that achieving the 500 GW target will require over ₹30 lakh crore in investment over the next decade. Is the government prepared to mobilise such massive resources?

India’s renewable energy sector has shown positive growth but remains behind the 2030 targets. Successful deployment and integration of renewable energy require a secure supply chain, smart grid infrastructure expansion, flexible generation sources, and innovative market mechanisms. Therefore, the renewable energy ecosystem needs further support, tax breaks, relief in import duties and tariff barriers, or tax credits to expedite development and attract essential investments.

To achieve energy independence and spearhead green development, India must boost R&D investment across all renewable sectors. The need is to incentivise R&D by offering tax rebates to local solar photovoltaic system manufacturers and encouraging significant investments from companies with smaller production capacities. Production-linked incentive schemes have been instrumental in boosting domestic manufacturing of solar modules, battery energy storage systems, EVs, green hydrogen, and electrolyzer manufacturing. These schemes should be delinked and disbursed separately for stage-wise production output and include support for ancillary components and the recycling of secondary materials.

Tax rationalisation is another essential measure. The power sector should be brought under the GST ambit, with a reduced GST rate for wind projects and energy storage infrastructure to promote EV and BESS adoption. Additionally, a five-year custom duty exemption for essential components of BESS and reduced GST for hydropower project components are necessary steps to lower costs and stimulate growth. The current GST rates of 18-28% on these components are excessively high and impede the sector’s growth

To enhance investment, the government must also raise sovereign-linked funds and increase equity infusion in organizations like the Indian Renewable Energy Development Agency. For the PM Suryoday scheme to succeed in expanding rooftop solar panels to 100 lakh homes, a robust credit enhancement scheme for MSME installers is vital. Special incentives for banks and non-banking financial companies offering rooftop solar-focused financing products are needed along with innovative financing structures such as infrastructure investment trusts or aggregated bonds. Moreover, the government must address the policy and regulatory hurdles that have slowed down the transition. Delays in land acquisition, grid. connectivity issues, and the lack of long-term financing options are significant barriers. The support announced is without doubt vital, but the road ahead will be far from smooth if the government doesn’t do a lot more of the heavy-lifting.

Souryabrata Mohapatra is a faculty member at NCAER in New Delhi. The views expressed are personal.

A focus on MSMEs as job creators is needed. Their problems with GST and credit need to resolved.

Recently, Arvind Panagariya, the Chairman of the Finance Commission, expressed his view that employment challenge is on account of the country not being able to generate employment in labor-intensive sectors.

The transition from agriculture to other sectors is slow in India. Besides, unlike other countries, the labour force in India is shifting from agriculture to services sector, rather than to manufacturing sector, the principal hub of jobs in other emerging/developing countries.

Indian manufacturing sector is characterised by the existence of a large informal sector, which operates with low capital. Despite this, these small manufacturing units, provide employment to a large section of population. But historically in India, unorganised sector, on an average, flared a lower growth of total factor productivity as compared to organised manufacturing sector.

Hence, higher growth is witnessed in capital-intensive industries rather than labour-intensive industries, despite the latter’s employment generation potential.

This is also reflected in the low share of labour intensive goods in India’s export basket where India’s competes with countries like Bangladesh and Vietnam. So, the right strategy would have been to concentrate on labour intensive manufacturing. But this has not happened in the past. Majority of the policy level reform initiatives focus on organised sector manufacturing. For example, PLI scheme is largely focused on capital intensive industries.

MSMEs and jobs

MSMEs are the backbone of labour intensive industries. According to PLFS 2022-23 data, 74.3 per cent of workers in non-agricultural sector are engaged in the informal sector. The contribution of the Micro, Small and Medium Enterprises (MSMEs) sector to overall GVA was 26.8 per cent in FY21 and its contribution to the manufacturing sector’s GVA is 36 per cent (Economic Survey 2022-23).

MSME performance is dismal; they suffer from limited and costly access to finance. India’s MSMEs tend to remain as MSMEs unlike in other countries where they mature into large companies.

MSMEs often struggle to secure financing from traditional banks due to stringent lending criteria and a complex regulatory framework. Even when financing is available, the interest rates are very high. High cost of capital plagues MSMEs in India, affecting profitability, and hence, financial viability.

GST burden

Moreover, GST is an added burden on the financial stress faced by the MSMEs. For instance, a study on New Zealand, suggests that nearly 60 per cent of the compliance costs of the GST fell on MSMEs. The benefit by these businesses is felt only over a long period of time if those firms survive.

In case of India, it is often found that MSMEs lack access to finance for working or fixed capital.

Thus, if GST indirectly leads to delay in receiving payments from their customers or receiving refunds from government in respect of input credit resulting from submission of GST returns, it would be fatal for the MSMEs.

MSMEs often pay GST even if there is no receipt from the client — to avoid penal charges and other complications. To do so, MSMEs need to block a part of their working capital, which an MSME is always short of.

The GST system’s efficacy depends on the timely compliance of all players in the chain, even from the government if it is a vendor. Of course, this lacuna also applies to medium and large firms, but because of their financial capacity, this is not a serious concern for them.

The Budget announced credit relief for MSMEs through a number of schemes. But these are not focused on changing the regulatory framework which can provide better access to credit, and reduce compliance cost of GST.

The writers are at NCAER. Views expressed are personal.