Following is from a report in Business standard:

The Orissa government today cleared projects worth Rs 1,27, 727 crore in steel, aluminium, power, downstream and ore beneficiation sectors.

The list includes 3 projects in the steel sector, 2 projects in the aluminium sector, 6 projects in the power sector, one downstream unit, and two beneficiation and pelletisation units.

… enhancement of the steel capacity of Jindal Stainless Limited (JSL) from 1.6 million tonne per annum (mtpa) to 3.2 mtpa at Kalinganagr Industrial Complex at an investment of Rs 16,266 crore and enhancement of capacity of Visa Steel in the same location from 0.35 mtpa to 1.5 mtpa at an investment of Rs 4995 crore were approved by HLCA.

The public sector aluminum major Nalco’s proposal to set up a 0.5 mtpa alumina smelter and 1260 mw power plant in two phases (840Mw + 420 Mw) at an investment of Rs 16,345.89 crore was also approved. Though the company preferred to set up the project at Brajarajnagar, the location might change. The company is seeking 275.30 hectares of land for the smelter and 575.7 hectares for the power plant.

Similarly, the proposal of the Navayuga Steels for setting up a 12 mtpa port based steel complex at Astaranga in Puri district at an investment of Rs 34,000 crore was cleared by the HLCA. The project will come up in 4 phases and the government will not commit any raw material linkage to it.

Though the company requires 4000 acres of land, the government will assess the land requirement as per the benchmarking report after the company submits the detailed project report (DPR), the minister added.

The public sector National Thermal Power Corporation (NTPC) was given the green signal to set up a 3200 Mw coal based mega power plant at an investment of Rs19,840 crore near the village Gajamara in Dhenkanal district. It requires about 3000 acres of land for the project and will source water from Mahanadi.

However, Jindal Stainless’ proposal to set up 1000 Mw Independent Power Producer (IPP) at an investment of Rs 4090 crore in the same location did not find favour with HLCA with the committee asking the company to change the site of the project.

Other projects which received the nod of HLCA are Rs 6800 crore investment proposal of RSB Metal-tech for setting up 1.4 mtpa alumina refinery, 0.35 mtpa aluminium smelter and 900 Mw CPP at an investment of Rs 6800 crore, Kalinga Energy’s 1000Mw thermal power project at an investment of Rs 4261 crore at Babuchakuli, Arati Steel’s 500Mw thermal power project at Ghantikhal in Cuttack district, Rs 4994 crore investment proposal of Chambal Infrastructures and Ventures Limited for setting up of 1200Mw thermal power plant at Siaria in Dhenkanal district.

Besides, Hyderabad based Lanco Solar’s 250 Mw fully integrated plant to manufacture crystalline silicon solar cells at an investment of Rs 2800 crore in Dhenkanal district, Bhushan Power and Steel Limited (BPSL)’s downstream and ancillary complex in Sambalpur district at an investment of Rs 1953.87 crore, JSW Steel’s proposal to set up 7 mtpa iron ore beneficiation plant and 5 mtpa pelletisation plant at Kamalang in Sundergarh district at an investment of Rs 1450 crore were through in today’s meeting.

Besides, the proposal of Welspun Orissa Steel to set up a 4.5 mtpa beneficiation plant at Nayagarh in Keonjhar district and 4.4 mtpa pellet plant at Dhamra in Bhadrakh district with an envisaged investment of Rs 1963 crore, the proposal of Astaranga Power Company to set up a 2460 Mw power plant at Astaranga at an estimated cost of Rs 11,200 crore were approved by the HLCA.

However, the decision on the 700 mw (Rs 1007crore) power plant proposal of Ind Bharat Energy, 1320 mw (Rs 5604 crore) power plant proposal of Sahara India Power Corporation and the 1100 Mw (Rs 4810 crore ) power plant proposal of Visaka Thermal were deferred.

Following is an excerpt from a report in Financial Express.

Orissa government’s Single Window Committee on Thursday cleared 13 industrial projects involving a total investment of Rs 27,193 crore. It includes three power projects, one steel, two cement, five iron ore beneficiation and pelletisation, on photo cell and one brewery projects.

… The big-ticket projects recommended to HLCC are Visakha Thermal Power Plant, Hind Bharat Energy, Lanco Solar, JSW Steel, Bhusan Power & Steel Ltd, Astarang Power Company Ltd and Welspun Steel Ltd.

While Astarang Power Company Ltd is planning to set up a 2640 mw plant in Puri district with an investment of Rs 11,200 crore, Visakha is proposing to set up an 1100 mw plant in Bhadrak district entailing an investment of Rs 4800 crore. The Hind Bharat Energy is proposing to enhance the capacity of its power project at Jharsuguda to 700 mw from 250 mw investing Rs 3150 crore. Bhusan Power & Steel, on the other hand, is setting up steel facilities for cold rolling steel, wire, rod, galvanised steel besides cement at Sambalpur, with an investment of Rs 2000 crore.

Welspun has plans to set up a 4.5m tonne per annum (mtpa) iron ore beneficiation and pelletisation plant in Bhadrak district with an investment of Rs 1900 crore. Simultaneously, JSWA is proposing to set up a 7 mtpa iron ore beneficiation plants and a 5 mtpa pelletisation plant in Sundergarh district investing Rs 1450 crore.

Among the projects cleared by the panel, Bhusan Steel Ltd is going to put up facilities for 4 mtpa iron ore beneficiation and pelletisation in Keonjhar district with an investment of Rs 850 crore.

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 FAX: PMO at 23016857 , 23015603 (Delhi STD code is 11), CMO at 674 2590 833 (home) 674 2535 100 (office) and Planning Commission at 23096699

To:

Dr. Manmohan Singh

Prime Minister of India

Cc: Mr. Naveen Patniak, Chief Minister of Orissa

Cc: Shri Muralidhar Chandrakant Bhandare, Governor of Orissa

 
Subject: Solving the greater Kandhamala problem – going after the root cause in a war footing

Dear Dr. Singh: 

While the civil society in Orissa, the nation and the world is disturbed by the  communal violence in Kandhamala, I would urge you to take steps to eradicate the root cause of the violence in Kandhamala and the nearby tribal, hilly, forested, awfully connected, poor and backward districts of Orissa (and its neighboring states). In this regard, please note that the violence did not spread to the major towns and cities of Orissa (such as Bhubaneswar, Puri, Cuttack, Rourkela, Sambalpur, Berhampur, Balasore etc.)  that are well connected (by Rail and roads), decently developed and have a civil society. 

While the violence involving the murder of Swami Laxmanananda on August 23^rd 2008 and the subsequent communal violence that has taken about 40 lives is most deplorable and is in the forefront of the media, please also recall the following events that also took place within the last year in these areas:

1. February 15 2008:  400 to 500 armed Naxals raided the Nayagarh armory and killed 15 people including 13 policemen.
2. June 29 2008: 30 elite anti-insurgency policemen were killed by Maoists near Malkangiri.
3. July 16 2008:  21 Orissa policemen were killed in a land mine explosion and firing by the ultras in Malkangiri.
4. Dec 27 2007: Eleven churches were ransacked and torched in several areas of Kandhamal district.

Please note that these events happened in places in Orissa (Nayagarh, Malkangiri and Kandhamal) that are badly connected, near or within forests, have a large tribal population, and are among the most backward districts of India. The following map shows these districts are surrounded by large tracts of dense and open forested areas, and partly explains why the naxalites and Maoists are able to make them their base and why it has been difficult to deploy adequate police there in a timely manner.

Sir: As an economist and a world leader you must know that lack of connectivity, lack of development, lack of a civil society, entrenched forest and mountainous areas together with a different population base is a recipe for the sprouting of troubled areas. This is true all across the world; from J& K and North eastern areas of India to caucuses in Asia. While one cannot and should not get rid of the mountains or the people, the problem can be solved by making the areas well connected and bringing development. The Indian government is doing that in J & K and in the northeast; but has mostly forgotten about the similar areas in Orissa, Chhatisgrah, and Andhra Pradesh, which are the favorite bases of the Naxals and Maoists.

Sir: We would like you to pay the same attention to these areas in terms of connectivity, development, and creation of civil societies, as you do to the North east and J & K. In particular we would request that following be done in a war footing during the 11^th plan.

(i)                  The Vijaywada-Ranchi highway that passes through many of these areas be completed.

(ii)                Broadband connectivity be brought to these districts with adequate access locations.

(iii)                Two Railway lines, parts of which have already been sanctioned by the Railways but are progressing slowly, are completed and made operational. Those lines are:

a.       Khurda Rd – Balangir (passes through Nayagarh and Boudh) – This line was sanctioned in 1994-95 is progressing very slowly.

b.      Bhadrachalam Rd (Andhra Pradesh) – Malkangiri – Jeypore – Nabarangpur – Junagarh – Lanjigarh Rd – passing through Kandhamala – Boudh – Angul – Talcher – Bimlagarh: Several segments of these lines are approved but progressing slowly. Those segments are Junagarh – Lanjigarh Rd and Talcher – Bimlagarh. Angul – Talcher is operational.

(iv)              With the above lines operational, development should be brought into Kandhamal, Boudh, Gajapati, and KBK districts (including Kalahandi and Malkangiri) through 1-2 Rail factories and public sector units that can use the steel and aluminum and power produced in abundance in Orissa.

(v)                Orissa govt. should be encouraged and aided to establish a university in Kandhamala and another in Kalahandi.

(vi)              A branch of the Indira Gandhi National Tribal University be established in one of these districts.

(vii)             Orissa govt. should be encouraged and aided to establish a government medical college and nursing college in Kandhamala or Boudha district.

Sir:  In regards to the cost of establishing the Railway lines, please note that as per the calculation in  http://kbkrail.orissalinks.com/ Indian Railways is scheduled to make a profit of 2679.72 crores/year from its operations in Orissa. If 1500 crores of this money (the rest may go to Indian Railway’s current plans for Orissa) is put into Orissa, in just 2-3 years the above mentioned lines could be completed.

Sir: We sincerely hope that you will translate the great concern you have shown towards the recent violent events to the above mentioned action items that address the key issues of lack of connectivity and development in these areas and thus provide a long term and real solution.

Sincerely

Appendix:

1. Estimated profit Indian Railways will make from Orissa in 2008-09:

2.  One of the earlier planning commissions has noted in http://planningcommission.nic.in/plans/stateplan/sdr_orissa/sdr_orich2.doc

“Railways have always played an important role in economic development and rapid social transformation in all parts of the globe. It is one of the key economic infrastructures. However, it is most unfortunate that in a poor and backward state like Orissa, development of rail networks has received much less attention of the Central Government in the post-independence period. There are as many as seven districts like Boudh, Kandhamal, Deogarh, Nayagarh, Kendrapara, Malkangiri and Nabarangpur out of the 30 districts of the state, which do not have any railway line passing through them. In the year 1998-99, the density of railway route length per 1000 sq. km of area in Orissa was only 15.03 km as against 42.66 km in West Bengal and 19.11 km. at all-India level”.

3. The tribal population percentage of the KBK districts are as follows:  Malkangiri  58.36% ST  (+19.96% SC),  Rayagada 56.04% ST  (+14.28% SC),  Nabarangpur 55.27% ST (+15.09% SC), Koraput 50.67% ST (+13.41% SC), Nuapada 35.95%  ST(+13.09% SC), Kalahandi 28.88% ST (+17.01% SC), Sonepur 22.11% ST (+9.5% SC), Balangir 22.06% ST (+15.39% SC). Two adjacent districts also have high tribal population. They are Kandhamala 51.51% ST (+18.21% SC) and Gajapati 47.88%  ST(+8.77% SC). 

4. The literacy rates in the KBK districts are abysmally low. Malkangiri 31.26%, Nabarangpur 34.26%, Rayagada 35.61%, Koraput 36.2%, Nuapada 42.29%, Kalahandi 46.2%, Balangir 54.93%, Sonepur 64.07%. Two adjacent districts also have low literacy: Gajapati 41.73% and Kandhamala 52.95%. The state average is 63.1%.

5. Population below the poverty line in southern Orissa (of which KBK is a part) is reported to be 89.17% of the people according to the 1999-2000 NSS data and 72% of the families according to the 1997 census.

Following is the news report on the discussion (almost a confrontation) with the Railway Board Chair, as reported in India Abroad.

The basic premise behind our grievances against Indian Railways and our demands is simple.

• Indian railways is scheduled to make 2500-3000 crores/year from Orissa, but spends only 1000 crores/year on Orissa in terms of new lines, doubling and gauge conversion.
• Its current plan for major spending includes freight corridors, metro rails, and high speed rails, none of which touch Orissa. It plans to do gauge conversion of 12000 kms, most of which is unprofitable (this proves that Indian Railway lies when it says it only does profitable lines), very little (less than 100 km) of which is in Orissa.
• Orissa is already behind the national average in terms of rail density and way behind its neighbors such as West Bengal and Bihar. If no changes are made to the 11th plan IR allocations Orissa will further fall behind.
• Indian Railways must not take money from its profit in Orissa, and spend it else where, until it takes care of proper connectivity to Orissa’s tribal, backward and maoist infested areas. The 2500-3000 times 5 = 12,500 -15,000 crore that Indian Railways will profit from Orissa during the 11th plan must be spend in new lines in Orissa until the (i)-(v) lines below and other port and mine connectivity lines are completed during the 11th plan.
• To Mr. Jena’s retort that Mumbai earns so much in taxes and not all of it is spent in Mumbai; we reply that it is often acceptable to take from rich and give to poor; But when did it become acceptable to take from poor (Orissa) and give to rich (freight corridors etc. in other states)?

The lines in Orissa connecting to the tribal and backward areas that we demand to be finished during the 11th plan are:

• (i) Khurda Rd - Nayagarh - Balangir: Lack of connectivity was one of the reasons a recent Maoist mayhem happened in Nayagarh. It seems after recent events, including the confrontation with the Railway Board Chair and various dharanas in Bhubaneswar, IR has started responding to this demand, but not to the extent to promise its completion during the 11th plan. Note that Balangir is the B in the KBK districts that are the most backward in India.
• (ii) Lanjigarh Rd - Junagarh - Nabarangpur - Jeypore - Malkangiri - Bhadrachalam Rd in Andhra Pradesh: Only small part of this is approved. Most of it is not even surveyed. In the long run this will really bring those parts of Orissa closer to the rest of Orissa. This is the most important connection and has to be take care of at the earliest. Like the approved Vijaywada-Ranchi highway, this line will create an alternative Hyderabad - Ranchi path passing through backward and tribal areas of Andhra Pradesh, Orissa and Jharkhand. This line will connect the Kalahandi and Koraput districts, the two K’s in KBK. The recent Maoist attack and killing of the Greyhound forces in Malkangiri might have been prevented if this line existed as then the forces would have used the train rather than being seating ducks taking a boat across a lake in Malkangiri.
• (iii a) Rayagada - Gopalpur: This has been surveyed and but work on it has not started. Note that Rayagada is part of the undivided Koraput district, one of the K’s of KBK. This line could come under port connectivity and will be a viable line connecting the industries near Rayagada with the upcoming port in Gopalpur.
• (iii b) Gunupur - Theruvali: This will add to the Naupada-Gunupur line and make it an economically viable line. (IR and Mr. Jena agree about its importance.) This line will be completely inside the Raygada district, part of the undivided Koraput district, one of the K’s of KBK.
• (iv) Talcher - Bimlagarh (connectivity to the tribal district of Sundergarh): This line has been approved but is only being given a few crores each year, which is less than the inflation. This line will reduce the distance between Sundergarh district and teh coastal areas significantly. For example, it will make Rourkela only 4-5 hrs from Bhubaneswar.
• (v) Baripada/Buramara - Chakulia: This line will connect the tribal district of Mayurbhanj to tribal areas of Jharkhand. It will add to the Rupsa-Baripada-Bangiriposi line and make it an economically viable line. (IR and Mr. Jena agree about its importance.)

All these lines can be completed if Indian railways just suspends its practice of taking from poor (Orissa) and giving to the rich for only a few years (may be just 3-4 years). The following maps show the above mentioned lines.

Following is  from a report in New Indian Express.

The State Government will lease out unused land of Orissa State Road Transport Corporation (OSRTC) at Cuttack, Baripada and here to the Reliance Industries Limited (RIL) for commercial purpose.

The OSRTC has prime land at Master Canteen, Pala Mandap in Cuttack and Baripada town. The corporation will lease out the Master Canteen land to RIL for 33 years for Rs 20 crore. Reliance has proposed to open retail outlets and has agreed to pay a monthly rental of Rs 15 lakh.

The company has reportedly deposited Rs 6 crore with the Government for the OSRTC land at Baripada town. However, OSRTC will collect monthly rent from RIL for all the leased out plots. Rent will be revised every five years.

The proceeds from leased out land will be invested for procurement of more buses and modernisation of the Government bus stands.

In the first phase, five bus stands at Angul, Bhubaneswar, Cuttack, Dhenkanal and Sambalpur will be modernised under the public-private partnership.

While the bus stands of Bhubaneswar, Cuttack and Sambalpur will be renovated, two new bus stands will be developed at Angul and Dhenkanal.

The public utility has 230 on road buses and plans are afoot to add another 50 to its fleet. The corporation has submitted a proposal to the Government for pay revision of the employees, official sources said.

Following is an excerpt from a report in Business Standard.

Aditya Birla Group, one of the largest business houses of the country having interests in sectors like aluminium, telecom, cement, textiles, fertiliser, mining, retail, finance and insurance plans to invest about Rs 75,000 - 80,000 crore in Orissa.

The proposed amount will be invested in sectors like aluminium,cement, telecom and retail sectors in the state over next few years.

… Birla, who was here to discuss some project related issues with the Orissa Chief Minister Naveen Patnaik said, the company also intends to launch its retail business in Orissa as part of its national roll out plan. It will be launched within the next 6 months.

… Stating that the projects are proceeding well, he said, the company is committed to a lot of social work like setting up ITIs and health centres at the project sites.

… Regarding the resistance of the local people to the alumina refinery project Utkal Alumina at Raygada, the group chairman said, a lot of projects are facing the same problem. The company has sought the state government’s intervention in resolving the issue.

He said, ABG took over the company four years ago from Alcan Inc and the company has complied with the rehabilitation and resettlemnet (R& R) package given to it. He, however, was non-commital about any additional package for the project affected people.

" We can not commit on the new package. As long as there is reasonable settlement we will be happy", he pointed out.

Regarding the possibility of investing in the port sector of the state, Birla said, the company is persuing the matter with the Orissa government and is expecting a positive outcome.

It may be noted, Essel Mining, a group company of the ABG had earlier proposed the state government to set up a port at Chudamani. However, the state government had not accepted its proposal.

The major projects of the group in Orissa include Utkal Alumina refinery at Raygada, Hindalco’s alumina smelter and power plant at Sambalpur and 3.5 million tonne per annum cement plant in Sundergarh district.

Following is from Dharitri.

Following is an excerpt from a report in Financial Express.

An 11-member team comprising industrialists from Haryana, Gujarat, Madhya Pradesh and Uttar Pradesh is on a three-day visit to Orissa to explore possibilities of investments in ancillary industries. The team on Wednesday visited the Kalinga Nagar Industrial Complex at Dubri in Jajpur district.

Orissa is now focusing on ancillary units of mega projects that are coming up in the state with a view to further value addition and employment generation.

While the proposed Jindal Stainless Steel Downstream Park (SEZ) at Kalinga Nagar is the focus, the government is also promoting the Choudwar Industrial estate to the visitors. Orissa is keen to have ancillary industries in Rourkela, Sambalpur, Paradip and Dhamra regions in addition to the Somnathpur Industrial Estate in Balasore.

The steel SEZ (JSSL) is to come up on 300 acres near the 1.6 mtpa steel plant project of Jindal Stainless, and will house industries to move up the value chain by churning out specific products for different sectors. Investment in the SEZ is envisaged to be to the tune of Rs 1,500 crore.

A study conducted by JSSL and international consultancy firm CB Richard Elis has pointed out that the precision cold rolling, pipes and tubes, auto components, engineering products, kitchenware and lifestyle products hold much promise.

"Advantages of setting up projects in Orissa are manifold as it is at the core of emerging Markets in eastern India comprising West Bengal, Jharkhand, Chhattisgarh and north east", the director industries, Hemanta Sharma, told the visiting industries. It is also the gateway to the Southeast Asian countries in terms of exports, he added.

The state government had lined up a comprehensive package including incentives and concessions to promote ancillary enterprises, Sharma said.

Asserting profitability of the ventures here, CEO of Jindal Stainless SS Virdi said applications of steel are growing faster compared with any metals as per capita consumption (PCC) is on the rise. In India, the PCC is only 1.1 kg compared with 15-20 kg in developed countries.

The following list is from www.orissatourism.gov.in/new/Identified_Tourist_Centre_of_Orissa_261207.pdf.

Following is culled from various sources, including Samaja and Pioneer. The 11 projects that have been cleared or partially cleared are:

1. National Thermal Power Corporation (NTPC) Ltd’s proposed power plant in Sundargarh. An investment of Rs 18,000 crore has been made for the project which will produce 3,200 megawatt of power.
2. Proposed Air Separation unit factory by British Oxygen which will come up at Kalinga Nagar in Jajpur district. It will produce 1800 tons of oxygen daily. It will need 15 acres of land and will invest 838 crores.
3. Jindal Stainless Ltd’s Rs 4,090 crore proposed power plant. The project will come up at Gajamara in Dhenkanal. The power plant will produce 1,000 megawatt.
4. Aarti Steel’s Rs 2,065 crore power plant at Ghantakhal in Athagarha
5. Salivahan Green Energy Ltd’s power project at Nimidha in Dhenkanal
6. Hind Metal and Industries Pvt Ltd (HMIL) Rs 237.10 crore plant at Meramunduli in Dhenkanal
7. Kalinga Energy and Power Ltd’s Rs 4261.27 crore project at Babuchakuli in Sambalpur
8. JSW Energy Ltd’s Rs9189.7 crore project at Chiplima in Sambalpur
9. Chambal Infrastructures and Ventures Ltd’s Rs 4993.98 crore project at Siaria in Dhenkanal
10. Ind Barath Energy Ltd (IBEL)’s Rs1007.69 crore power plant at Banaharpali in Jharsuguda.
11. Expansion of Balasore alloys.

Following is an excerpt from a report in the New Indian Express.

The State Government will seek Central assistance of Rs 45 crore under the Rastriya Krishi Vikas Yojana (RKVY) for the current fiscal.

The Centre has introduced the new additional Central assistance scheme to incentivise the State which exceed plan expenditure consecutively in the last three years.

… The committee approved the proposals of the Agriculture Department, which has sought an assistance of Rs 10.10 crore for managing acid soil to boost agriculture production, Rs 8.8 crore for popularisation of farm mechanisation and Rs 2.52 crore for systematic rice intensification in areas having low rice production.

Under the rice intensification programme, field demonstration will be taken up where farmers will be educated on how to get higher yield with less use of seeds, water and fertilisers, official sources said.

The department has asked an assistance of Rs 2 crore for strengthening soil testing service, Rs 1.06 crore for bio-fertiliser application for pulses and oilseeds and Rs 55.55 lakh for promotion of organic farming through vermi hatchery and blue green algae.

It has also proposed to set up seed processing plant in Gajapati, Kendrapara and Jharsuguda districts and modernise the agriculture information wing in the city and at Sambalpur with an investment of Rs 1.80 crore and Rs 1.18 crore respectively.

Since the Centre will provide the additional assistance in two streams, the total estimate for 12 projects in the first stream is Rs 28.83 crore. Seventy-five percent of the additional Central assistance is for programme implementation while the remaining 25 percent is to bridge resource gap in the State plan.

The Government will ask Rs 15.94-crore Central assistance under the stream-II out of which Rs 4 crore will be for strengthening its implement factory at Satyanagar, Rs 2.45 crore for infrastructure development and strengthening the training centres (gram sevak kendras), Rs 7 crore for construction of 17 seed storage godowns and Rs 2 crore for establishment of agro-service centres at gram panchayat level.

Following is a from a news item in tathya.in.

Tin project of the Koustuv Mining and Smelting Company (KMS) also received the nod of the Authority. 

KMS will set up tin smelting plant at Khurda and refinery at Malkangiri with an investment of Rs.95.61 crore. 

The company holds mining lease for 1116.830 hectares in tin ore rich area of Malkangiri.

Following is from odisha.in.

According to official sources, the SLSWCC has also cleared six other industrial project proposal, which include- Dev Alloys at, Jajpur, Ravi Metalik , Sambalpur, Kaustuv Mining  and  Smelter at Malkangir, Orissa Mining and Mineral Development Pvt Ltd, at Dhenkanal, S.L.Mining, Joda and ESSAR’s expansion proposal for its proposed Paradeep Steel project.