___________

Following is an excerpt from a report in Business Standard.

The Centre would provide Rs716 crore under ‘Viability Gap Funding’ for infrastructure development of the PCPIR (Petroleum, Chemicals and Petrochemicals Investment Region) hub to be set up at Paradip in Orissa.

“The Centre would provide this money in two phases. While Rs388 crore would come in the first phase of the project, the balance Rs328 crore would be provided by the Government of India in the second phase”, an official source told Business Standard.

The funds to be provided by the Centre under ‘Viability Gap Funding’, will be utilized for various infrastructure projects of the PCPI hub like six-laning of NH-5 (A), building a greenfield coastal corridor, construction of all-new greenfield road from Bhubaneswar to Paradip \and upgradation of port infrastructure.

The six-laning of the NH-5 (A) will be taken up in the second phase of the PCPIR project at a cost of Rs76 crore. The greenfield coastal corridor will involve an expenditure of Rs410 crore out of which Rs 264 will be invested in the first phase while the remaining expenditure of Rs146 crore will be incurred in Phase-II.

The construction of all-new greenfield road from Bhubaneswar to Paradip will be taken up at a cost of Rs190 crore while Rs40 crore would be provided by the Centre for upgradation of port infrastructure.

Meanwhile, the Orissa government has committed an expenditure of Rs1796 crore on infrastructure development for the PCPIR hub. Out of the envisaged expenditure of Rs1796 crore, Rs 754 crore will be spent on development of arterial roads, Rs 465 crore on water supply, Rs 410 crore on power distribution and Rs136 crore on canal upgradation.

The PCPIR project in the state would be set up on 284.15 sq km (70,214 acres) of land spread over Jagatsnghpur and Kendrapara districts. The PCPIR hub is expected to attract investments to the tune of Rs2.74 lakh crore.

Phase-I work of the project is expected to be completed by 2015 while the entire project is scheduled for commissioning by 2030.

Of the expected overall investment figure of Rs2.74 lakh crore, the lion’s share would come from the petroleum and petrochemicals sectors at Rs2.3 lakh crore followed by housing and allied infrastructure at Rs23,500 crore, external infrastructure at Rs13,634 crore and Rs3,500 crore each for chemicals & fertilizers and ancillary sectors.

The mega project is set to create employment for 6.48 lakh people which includes direct employment for 2.27 lakh people and indirect employment for 4.41 lakh others.

The turnover of this PCPIR hub is estimated at Rs4.23 lakh crore with an export potential of Rs 43,000 crore. The PCPIR hub is expected to generate taxes to the tune of Rs 42,000 crore and contribute six per cent to Orissa’s Gross Domestic Product (GDP).

… This refinery cum petrochemical complex which needs 3300 acres of land, is scheduled for commissioning by March 2012.

The land acquisition process for PCPIR is on the fast track with the state owned Industrial Infrastructure Development Corporation of Orissa (Idco), the nodal agency for the project having filed requisition for 90 per cent of the total land requirement in .

This is really great. Especially, the part about a greenfield coastal road.  Odisha has been demanding such a road for a long time. I think eventually it will run all the way from Dhamara-Paradeep-Astaranga-Konark-Puri-Baliharchandi-across Chilika to Gopalpur. From Dhamara to the North they can put this road together with the National Waterway.

Update: Financial Express also reports on it. Following are some excerpts.

The PCPIR project in the state will be the fourth project in the country after West Bengal, Andhra Pradesh and Gujarat.The central government will provide rail connectivity, highway network and airports while the state government will provide the basic infrastructure, including power and water supply, said IDCO chairman, Priyabrata Patnaik.

This is huge. Rs 2.74 lakh crore is about $60 billion. Following is from a report in Business Standard.

Region spread over 284.15 sq Km to attract investment of Rs 2.74 lakh crore.

The Cabinet Committee on Economic Affairs (CCEA) today finally gave the green signal to the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) project in Orissa proposed to be set up near Paradip.

"There was a meeting in New Dehi on the PCPIR project of Orissa and the CCEA has approved the proposal”, state industries secretary Saurabh Garg told Business Standard over the phone from New Delhi.

Orissa has become the fourth state after Andhra Pradesh, Gujarat and West Bengal to have got the Centre’s nod for this prestigious project.

The PCPIR project in the state would be set up on 284.15 sq km (70,214 acres) of land spread over Jagatsnghpur and Kendrapara districts. The PCPIR hub is expected to attract investments to the tune of Rs 2.74 lakh crore.

Phase-I work of the project is expected to be completed by 2015 while the entire project is scheduled for commissioning by 2030. The Orissa government would invest Rs 1796 crore on infrastructure development for the project.

Of the expected overall investment figure of Rs 2.74 lakh crore, the lion’s share would come from the petroleum and petrochemicals sectors at Rs 2.3 lakh crore followed by housing and allied infrastructure at Rs 23,500 crore, external infrastructure at Rs 13,634 crore and Rs 3,500 crore each for chemicals & fertilizers and ancillary sectors.

The mega project is set to create employment for 6.48 lakh people which includes direct employment for 2.27 lakh people and indirect employment for 4.41 lakh others.

The turnover of this PCPIR hub is estimated at Rs 4.23 lakh crore with an export potential of Rs 43,000 crore. The PCPIR hub is expected to generate taxes to the tune of Rs 42,000 crore and contribute six per cent to Orissa’s Gross Domestic Product (GDP).

Indian Oil Corporation Ltd, which will be the anchor tenant of the region, will set up a 15 million tonne per annum grassroot refinery cum petrochemical complex five km south of Paradip at a cost of Rs 29,777 crore.

This refinery cum petrochemical complex, which needs 3300 acres of land, is scheduled for commissioning by March 2012.The land acquisition process for PCPIR is on the fast track with the state owned Industrial Infrastructure Development Corporation of Orissa (Idco), the nodal agency for the project having filed requisition for 90 per cent of the total land requirement in Phase-I.The Phase-I of the PCPIR project needs 48,268 acres (195.34 sq km) in all out of which 22,232 acres (89.97 sq km) would be devoted to processing facilities while the balance 26035 acres ( 105.37 sq km) is the area set aside for non-processing facilities. Phase-I of the project is scheduled to be taken up during 2010-2020.

The entire project which is set to be completed by 2030, needs 70,214 acres (284.15 sq km) of land which includes 30,397 acres (123.01 sq km) of processing area and 39.817 acres (161.14 sq km) of non-processing area.

Out of the processing area of 123.01 sq km, 41.95 sq km is under operational units and almost 42.68 sq km (10,546.22 acres) has been acquired or is under acquisition by Idco and the balance area of 38.38 sq km needs to be acquired.

Idco has filed for land acquisition of 7,342 acres (30 sq km) for common infrastructure, utilities and accommodating downstream chemical converters and industries.

Following is an excerpt from a report in breakingnewsonline.

The proposed 1700 km Surat-Paradeep natural gas pipeline is expected to be completed by 2014 for which bid will be invited within a week. Out of the total length of the pipeline around 400 km of pipeline will be laid in Orissa.

“The union government will invite bid for the Surat-Paradeep pipeline within a week and the process will continue for minimum 6 months. The winning company would be given 36 months to execute the project and it will be executed with an estimated investment of Rs.12000 crore" L.Mansingh, Chairman of the Petroleum and Natural Gas Regulatory said.

Similarly under the ongoing 1100 km Kakinada-Howrah natural gas pipeline project around 434 km pipeline is being laid in Orissa. 

Speaking at a special interaction session organized by CII ,he said that total about Rs.76,000 – 84,000 crore investment is estimated to be required for setting up Petroleum & Natural Gas infrastructure in next five years. Of this Rs.60,000-Cr would be required for natural gas pipelines,15000crore for CGD networks and 9000crore for petroleum product pipelines.

The pipeline Projects will avail cooking gas at an affordable rate in the state. For this the Gas authority has tentatively  identified 9  growth locations i.e.Bhadrak, Khurda, Kamakhyanagar, Rourkela, Anandpur, Bhubaneswar,Jajpur, Balasore and Baripada for development of CGD network terminals. The CGD network would involve the distribution of compressed natural gas (CNG) and liquified natural gas for domestic and automobile and industrial use.

… He acknowledged that timely completion of these two projects is very crucial for the success of the proposed Petroleum, chemical and Petrochemical Investment Region (PCPIR) in the state.

Update: Following is excerpted from a report inTelegraph.

… Official sources said surveying the land for the project has already been completed. The legal and statutory requirements have been submitted to the appropriate authority for clearance.

… As per the proposal, the company would invest Rs 150 crore for land acquisition and connectivity, Rs 100 crore for energy academy, Rs 2,700 crore for power plant, Rs 1,000 crore for creating marine facilit. While Rs 400 crore would be invested for desalination plant and another Rs 500 crore would be towards township and office complex.

…Officials pointed out that oil and gas-based industries, which have shown interest in the hub are Alph Tech International Inc., Downstream Services, USA, Richemen Petroleum-Export Oriented Refinery, Dubai, SBM Offshore –FPSO Services, USA, ULO Systems LIC, Subsea Pipelines, Switerzerland and Dubai, Hyundai Offshore, South Korea.

The non-oil and gas-based industries which has evinced interest in the hub are Seacor Marine Inc, USA, Faros Investment Partners, UP, Wind Turbines and Blades, Aerostar, USA, Matrix Global LIC, USA and Virtue Group, USA.

Following is from an UNI report in newkerala.

The proposal was submitted to Chief Minister Naveen Patnaik by Mr S K Chalamsethy, Director Sonepur Energy and Oil City Private Limited set up by the consortium, sources said today.

The company, official sources said, had proposed to set up an Energy Academy for the development of technical knowhow in the energy and oil sectors and create necessary infrastructure for port, power, desalination plant, fabrication and township.

While the Consortium would invest Rs 5,000 crore, other industrial houses would invest nearly Rs 10,000 crore. The projects, when completed, would provide direct employment to 20,000 people and indirect employment to one lakh.

The Energy Academy would impart training to engineer, geologist, geophysicist, drilling engineer, fabricators besides other technical persons in close association with the international oil companies.

The company, sources said, would invest Rs 100 crore on the academy which would encourage small business men in the Oil sector.

In the proposed Oil city, a port, a ship manufacturing unit, 1000 MW gas based power plant and 120 MLD Desalination Plant, besides a modern city for a population of 10,000, would be established. This apart, infrastructure for setting up of Petrochemical complex and Oil storage would be created in the city.

Official sources said the Southern Orissa, being located on the Krishna-Godabari and Mahanadi basin, has the potential for investment in the oil and gas sectors and Orissa would emerge as a major Hydrocarbon Hub in the entire South East Asia.

In a report in Orissadiary, the group is named as Greenco. I could find a website for Greenko which has a director named Anil Kumar Chalamalasetty. This financial express interview is with him. Greenko stock listing info is here.

Note that Sonepur in Ganjam is next to the Bahuda Muhana. See

• Map: Orissa ports (large map)
• Map: Orissa ports (small map)

In 2008 the Odisha government had proposed Bahuda Muhana as one of the sites in response to a GOI call for a PPP based shipyard. So the above mention plan for a shipyard fits in nicely; or it may mean good homework done by the group in making the overall proposal.

However, Odisha government needs to be careful about grandiose proposals from newcomers, as it may be a land grab plan in disguise.

Following is an excerpt from a report in Business Standard.

The Phase-I of the PCPIR project needs 48,268 acres (195.34 sq km) in all out of which 22,232 acres (89.97 sq km) would be devoted to processing facilities while the balance 26035 acres ( 105.37 sq km) is the area set aside for non-processing facilities. Phase-I of the project is scheduled to be taken up during 2010-2020.

The entire project which is set to be completed by 2030, needs 70,214 acres (284.15 sq km) of land which includes 30,397 acres (123.01 sq km) of processing area and 39.817 acres (161.14 sq km) of non-processing area.

Priyabrata Pattnaik, chairman and managing director of Idco said, “Idco has filed requisition for acquisition of 90 per cent of land needed for the first phase of the PCPIR project. Out of the processing area of 123.01 sq km, 41.95 sq km is under operational units and almost 42.68 sq km (10,546.22 acres) has been acquired or is under acquisition by Idco, balance area of 38.38 sq km needs to be acquired.”

He was speaking at an awareness session on ‘Regulatory Framework of Petroleum and Natural Gas Regulatory Board (PNGRB) for Petroleum and Natural Gas Sector’, organized by the Confederation of Indian Industry (CII).

Of the non-processing area of 161.14 sq km, 20.92 sq km (5169.33 acres) are village settlements which has been integrated in the non-processing area and existing township of 19.08 sq km ( 4714.66 acres) included in the non – processing area.

Idco has also filed for land acquisition of 7,342 acres (30 sq km) for common infrastructure, utilities and accommodating downstream chemical converters and industries.

Meanwhile, as a part of developing rail connectivity within the PCPIR hub, it has been decided to set up rail freight stations (RFS) along with additional rail sidings at a total cost of Rs 80 crore in Phase-I and Rs 120 crore in Phase-II.

In Phase I, the RFS will be along Cuttack-Paradeep line which further connects to Paradeep port and Chennai-Howrah trunk whereas in Phase II, the RFS will be along Paradeep-Haridaspur line joining Chennai-Howrah trunk. The PCPIR project at Paradip is awaiting the in-principle approval of the Cabinet Committee on Economic Affairs (CCEA). After Andhra Pradesh, Gujarat and West Bengal, Orissa would be the fourth state to receive the approval for this prestigious project.

Indian Oil Corporation Ltd (IOCL) would be the anchor tenant of the project and it would set up a 15 million tonne per annum grassroot refinery cum petrochemical complex five km south of Paradip at a cost of Rs 29,777 crore. The refinery project is expected to be commissioned by March 2012 and stabilized by November 2012.

Following is an excerpt from a report in sify.com.

The State Level Single Window Clearance Authority (SLSWCA) today cleared nine new investment proposals worth Rs 4920.26 crore. Out of these, five are in the cement sector, two aluminium conductor units, a maize processing unit and a petroleum coke plant.

Out of the five new cement projects, two are of Madras Cement which will set up its units at Sundergarh and Malkangiri.

The company’s Sundargarh plant will have two million tonne per annum (mtpa) cement capacity along with 40 MW of captive power generation facility. The project is estimated to cost Rs 750 crore. Madras Cement, known for its Ramko brand of cement, will also have a cement fibre sheet plant at the same location at an investment of Rs 35 crore.

The company’s second cement unit in the state, also with a capacity of two mtpa, will come up at Malkanagiri. It will have a 36 MW Captive Power Plant and the combined cost of the project is pegged at Rs 700 crore.

Apart from Madras Cement, Ajmer-based Shree Cement, known for its Bangur brand of cement, has proposed to set up a three mtpa cement unit and a 36 MW CPP, also at Malkangiri, at an investment of Rs 683 crore.

ACC Cement intends to set up a three mtpa cement unit and a 50 MW CPP at Malkangiri, involving an investment of Rs 1850 crore.

Similarly, Emami Group which has a newsprint making plant at Balgopalpur in Balasore district will invest Rs 179 crore at Somnathpur in the same district for setting up a 0.6 mtpa cement grinding unit.

… Among the other investment proposals cleared by SLSWCA is the Seashore Group’s plan to set up a maize processing unit at Papdahandi block in Nabarangpur district at a cost of Rs 160 crore. The facility will come up on 123 acres of land and will require two lakh litres of water per day. The project will create 96 direct jobs besides creating indirect employment opportunity for around 6000 people.

Sterlite Technologies Ltd, a Vedanta Group firm, will invest Rs 51.26 crore on establishing an aluminium conductor plant as well as an aluminium alloy rod unit at Brundamal near Jharsuguda. This plant will be a downstream unit of the company’s existing aluminium smelter at Jharsuguda.

Kalinga Calciners has proposed to set up petroleum coke plant near Paradeep at a cost of Rs 80 crore. The plant will have an overall capacity of 2,20,000 tonnes per annum which will be achieved in two phases.

The SLSWCA also cleared the proposal of Hindustan Vidyut Products Ltd which has evinced interest in setting up an aluminium conductor plant at Jharsuguda, entailing an investment of Rs 389 crore. This project which will come up on 75 acres of land will create direct employment for 153 people and creating indirect jobs for around 400 others.

Its good to see that some of the above units are proposed for remote backward districts such as Malkangiri and Nabarangpur.

Following is an excerpt from a report in Financial Express.

The state-owned Industrial Infrastructrue Development Corporation (IDCO) chairman-cum-managing director, Priyabrata Patnaik, told reporters that the Union secretary urged the state government to provide land, water linkage and power supply besides other required infrastructrue for the project.

… The PCPIR project, which is going to spread over an area of 250 square kilometers at Paradip with the Indian Oil Corporation’s (IOC) oil refinery as anchor tenant, is expected to attract investment to the tune of Rs 2,75,000 crore.

The major chunk of investment, about Rs 23,000 crore, will come in petroleum and petro-chemical sector.

The project will generate employment opportunity for more than 2 lakh people when it is fully commissioned.

Following are some pointers on PCPIRs.

• Slides on the scheme.

Following is from a report in Hindu.

Indian Oil Corporation has tied up finances for its Rs 29,777 crore Paradip refinery project in Orissa that would be commissioned by March 2012.

"We have received commitments from a consortia of banks," IOC Chairman Sarthak Behuria said.

SBI Caps, which was mandated to arrange Rs 14,700 crore debt for the project, has managed Rs 14,900 crore from 21 banks. State Bank of India (SBI) will be the largest lender with Rs 4,200 crore exposure.

IOC was likely to sign loan agreements with the consortia of banks on May 14.

"We will draw (from these loans) as and when we need them," he said but did not give details.

IOC is targeting commissioning of the refinery in first quarter of 2012. The board had recently split the refinery cum petrochemical complex into two, deciding to do the refinery first and the chemical unit will follow later.

Paradip refinery is being configured to process the toughest, heaviest and the most dirtiest crudes which are cheaper than the cleaner and easier varieties. The refinery will have a Nelson Complexity Index of 15.

Following is from a report in steelguru.

TATA Power Company & Indian Oil Corporation have decided to float a new company for jointly developing a 1,000 MW coal based power project at Paradip in Orissa. The shareholding pattern of the JV would be 74-26 for TPC and IOC, respectively.

As per report, the proposed project is essentially being set up as a captive project to meet the power requirements of IOC’s 15 million tonnes per annum integrated refinery cum petrochemicals complex at Paradip. The plant may also supply power to the proposed steel plant of the TATA group in Orissa as also other industries in and around the Paradip complex.

Under the JV agreement, Indian Oil is committed to source at least 51% power and the surplus generation can be traded by the JV company. The authorized share capital of JVC will be INR.1,200 crore and the capital will be increased to meet the requirement of further investment as and when called for.

Based on a feasibility study carried out by TPC & IOC the tariff for power supply to the Paradip complex has been estimated on annual levelised basis for 25 years operation at INR 2.46 per unit. The levelised power tariff on similar basis for captive generation within Paradip complex has also been assessed jointly with Foster Wheeler which indicates a significantly higher value of over INR 5 per unit.

Following is an excerpt from a report in Telegraph.

The Centre had accorded provisional approval to five, proposed petroleum, chemical and petrochemical investment regions including the one being planned in Orissa and had asked if the state government would be investing in the project infrastructure.

The authority consented to invest Rs 2,700 crore on the infrastructure development, while the Centre and central public sector undertakings, including the Indian Oil Corporation, have already agreed to spend Rs 5,800 crore on this score.

In all, Rs 15,273 crore would be spent on the infrastructure development at the project site and on the periphery, official sources said.

According to the vision plan, the proposed region would be developed in an area spread over 250sqkm without any displacement. The areas concerned would be developed into modern “city villages”. The annual project turnover has been estimated at Rs 423,500 crore.

There would be a value addition of the petroleum-related products to the tune of Rs 43,000 crore and an equal amount in shape of export earnings. The total tax income has been estimated at Rs 42,000 crore, of which Rs 32,100 crore is expected to go to the state exchequer.

Following is an excerpt from a report in Pioneer.

Indian Oil Corporation (IOL)’s Chairman S. Beuria called on Chief Minister Naveen Patnaik on Saturday at Orissa Bhawan in New Delhi and appraised him about the progress on 15 MMTPA Paradip- refinery -cum- aromatic complex.

He indicated that approximately Rs 1,254 crore had already been spent on the project.

“Due to cost and time overruns, the project cost is likely to go up to Rs 46,000 crore and the project will take 42 months to get completed,” he said.

He further indicated that they have already received environmental clearance from the Union Ministry of Environment and Forest. Construction of water and power supply system has also been completed. The work of dredging and reclamation of land is under progress.

Beuria informed Patnaik that the seven year- holiday available under Section 51-B will be withdrawn effective from April 1, 2009 It would affect the viability of the project.

… Patnaik asked the Beuria to take up the peripheral development works for the benefit of the project affected people of Jagatsinghpur district.

Following is an excerpt from a report in Financial Express.

The Paradip Petrochemicals & Petroleum Investment Region (PCPIR), which has raced ahead to become one of the five fast track projects, is expected to attract a total investment to the tune of Rs 2.75 lakh crore.

The IL&FS, the consultant for the Orissa project, Monday gave a presentation to the senior officials of the state government about the development of the project. The presentation was witnessed by chief secretary, Ajit Kumar Tripathy, development commissioner RN Bohidar, industries secretary Ashok Dalwai, commerce & transport principal secretary Priyabrata Patnaik, special secretary Guru Ray, IDCO managing director Vishal Dev, among other senior officials.

The IL&FS vice-president, Anil Goel, said that the Orissa project, which was lagging behind, has made good progress during the last two months. According to him, the project is now at par with the projects proposed at Visakhapatnam in Andhra Pradesh, Dahej in Gujarat and Mangalore in Karnataka. He said that the project has been highly appreciated by the Centre.

Goel, who was accompanied by his Orissa head Manoj Panda, said that the project, which will come up over an area of 28,500 hectare at Paradip, will have Indian Oil Corp’s (IOC) Rs 26,000 crore petrochemical complex as anchor tenant. Besides the IOC investments, the project will attract investment to the tune of Rs 23,000 crore in township, housing and allied sectors, Rs 15,275 crore in external infrastructures like port, airport, cargo complex, road, while Rs 2.30 lakh crore will come in the hardcore industries of the petrochemical sectors. He said the investments would be by the private corporate houses, public sector undertakings, and in the mode of BOOST and PPP.

Following is Samaja’s take on it.

Following are extracted from a report in the Pioneer.

• the State Commerce and Transport Department, in its sanction order-29753, dated May 30, 1970, had allotted 3, 793.21 acres in the first phase and 2285.23 acres in the second phase to the Paradip Port Project. Most of the lands were obtained from Sandhakuda, Bijayachandrapur, Balijhari and Bhitaragara villages, under Kujang Tehsil. According to the official sources, about 6,889 acres of land were supplied to the Paradip Port Trust.
• The State Government had provided 62.19 acres of land to the Paradeep Phosphate Ltd, which is a fertiliser plant that started its project in 1982. The PPL had acquired 405 acres of private lands from Bhitaragada village on its own.
• … in Paradeep-Cuttack railway line 137 acres of land were acquired from the Bhitaragada village.
• Kujang Tehsil had about 1,500 acres of Government land in the Musadiha area that was provided to the Oswal Fertiliser Plant in the year 1995-96. The plant had also purchased about 500 acres of private land from the local people.
• … in 2000 Indian Oil Corporation had purchased 3,300 acres of private land from the local people of 17 villages for its refinery project, which was to be set up on the outskirts of Paradip but the project is yet to come.
• for much-hyped Haridaspur-Paradip Railway Project, widening of the NH-5 and recent expansion of Cuttack-Paradip State Highway, thousands of acres of both Government and private lands have been acquired from Kujang Tehsil.
• Essar, the 6 million tonnes steel plant project, moves for the land acquisition in Paradip and the project needs about 1,950 acres of land. The State Government has already given 350 acres of land to the plant. It will procure the remaining required land from private land.
• Posco has shown a demand of about 4,004 acres of land in Dhinkia, Gadakujang and Nuagaon villages for its steel plant and port project. The State Government has given assurance and has provided Posco most of the encroached Government and forestlands. The rest of the required land would be purchased from private landowners.

Following is an excerpt on this from a report in Business Standard.

GAIL India, the country�s largest transporter and marketer of gas, will diversify from its core business to invest in a fertiliser and chemical plant at Talcher in Orissa. The gas utility will form a joint venture with government-owned Rashtriya Chemicals and Fertilisers (RCF) to set up the Rs 2,400 crore plant which will have a capacity to produce 2,940 tonne per year of urea, GAIL, CMD, UD Choubey said.

An agreement between GAIL and RCF will be signed soon, Choubey said.

“The equity structure is yet to be worked out. RCF will carry out a feasibility study on the integrated fertiliser and chemical plant,” Choubey said.

The plant will be fed with 7 million cubic metres a day (mcmd) of gas produced through the surface coal gasification process for which Coal India (CIL) will supply around 5,000 tonne of coal.

“We are in constant touch with CIL. They have in-principle agreed to supply the coal,” Choubey said.

Explaining the rationale behind diversifying into fertilisers, Choubey said that the trigger for the move was that the company wanted to increase its presence in the gas business in east India. “We have always been supplying gas to fertiliser plants. This is just a move forward,” Choubey explained.

Following is an excerpt from a New Indian Express report.

The Assembly Committee on Industry has suggested that dedicated industrial parks should be set up for micro, small and medium scale industries in Kalinga Nagar, Jharsuguda, Paradip, Rayagada, Angul and Dhenkanal in view of the large number of mega industries coming up in several industrial zones in the State.

In its latest report, the committee said such parks should be specially earmarked for ancillary and downstream industries. It observed that considering the importance of the small and medium enterprises in employment generation and economic growth of the State, priority attention should be given for the revival and promotion of these sectors.

Official sources maintained that till November, 2006, investment in these two sectors had touched Rs 2,652.8 crore with employment generation of 5.48 lakh. Cluster approach has been adopted for development of small scale industries and major clusters have been identified for development and marketing linkage with the assistance of United Nations Industrial Development Organisation (UNIDO).

The panel, however, observed that though 45 MoUs had been signed for establishment of steel plants in the State, progress has not been satisfactory. Of these, 20 companies have invested Rs 12,085 crore and started commercial production by December, 2006. These companies have created direct employment opportunities for 9,131 persons.

In the steel sector, investment has been estimated at Rs 1,86,499 crore with a total capacity of 73.43 million ton per annum. In the aluminium sector, two companies have signed MoUs with a proposed investment of Rs 25,000 crore.

Indian Oil Corporation is also setting up a refinery and petrochemical complex of 15 million ton capacity per annum with an investment of Rs 25,000 crore. Official sources said a chemical and petrochemical investment region is proposed to be set up at Paradip.

The committee has suggested that polytechnics should be established in all districts of the State and industrial training centres in all the block headquarters.

Besides, the 10 ITIs in the State should be upgraded gradually with 75 percent Central assistance, it added.

Following are excerpts from a sify.com report.

State-owned Indian Oil Corporation (IOC) is setting up an oil refinery-cum-petrochemical complex at Paradip in Orissa, with an installed capacity of 15 million metric tonnes per annum (MMTPA) at an estimated cost of Rs 25,646 crore.

”The project is expected to be completed by October 2011,” Minister of State for Petroleum and Natural Gas Dinsha Patel said in a written reply to the Lok Sabha.

He said the land acquisition was carried out by Orissa Government by consent agreement under section 11(2) of the Land Acquisition Act, based on the compensation package for private land fixed by Orissa Government in October, 1999.

IOC has already acquired 3,347 acres of land for Paradip Refinery Project.

The progress made on the various phases of the project includes the construction of bridges over Santra Creek, approach road including railway over-bridge for the refinery connecting NH-5A to refinery site have been completed.

Tecnological selection for all major units has been completed.

Residential accommodation for construction phase, CISF colony, coastal approach road and green belt development are under various stages of construction.

Project Management Consultant (PMC) has been selected for Front End Engineering and Design (FEED) phase of the project on December 1, 2006.

Patel said the environmental clearance for the project has been received on July 6, 2007.

He added an amount of Rs 2281.87 crore has been sanctioned for Paradip Refinery project for carrying out pre-project activities, out of which, Rs 778.32 crore has been spent as on July 31, this year.

Business Standard in a report mentions the following numbers in regards to IOC’s plan in Paradip.

IOC is also planning around Rs 6,000 crore petrochemical complex at its upcoming 15 mtpa refinery in Paradip, Orissa.

It gets reported once in a while [Hindu1, Hindu, Technoligence,iocl ] that IOC plans a new 300,000 barrels a day refinery and petrochemical complex at Paradip. Timesnow.tv has a recent report on this.