Following is  from a report in Economic Times.

MUMBAI: Larsen & Toubro shares edged higher Tuesday after it won orders worth Rs 1372 crore from aluminium and steel makers.

The orders were received from Vedanta Aluminium, a part of Vedanta group, Utkal Alumina International and Bhushan Steel, it said in a statement.

The Rs 516 crore order from Vedanta Aluminum was for setting up of a 3 million tonne per annum alumina refinery at its Lanjigarh plant in Orissa. Utkal Alumina’s order was worth Rs 455 crore in which the engineering and construction firm would set up a 1.5 MTPA green field alumina refinery at Doraduga in Orissa.

Furthermore, L&T has secured an order worth Rs 401 crore from Bhushan Steel for civil, structural, equipment, erecting and piping works at Angul in Orissa.

Following is an excerpt from a report in Economic Times.

IT major Infosys today said it would invest Rs 500 crore in Orissa for setting up an SEZ in IT and ITeS sectors and take care of children’s mid-day-meal scheme and healthcare services.

“We have proposed to set up an IT SEZ in Bhubaneswar. The project will require 50 acres of land”, T V Mohandas Pai, Director HR, ER and administration and member of board of Infosys, told reporters here.

… Pai who had been funding mid-day meal for 10,000 school children in Nayagarh district, also agreed to extend the programme to Gajapati and Kandhamal districts, official sources said. Besides, 30,000 children in Puri district were also getting midday meal in Puri district.

“We have been spending Rs 6.50 per child to provide quality food,” Pai said pointing out that Infosys had spent Rs 5.5 crore towards its corporate social responsibility.

Shetty, who had been providing health care service to BPO staff, urged Patnaik to allot five-seven acres of land in the city for setting up a 1,000-bed heart hospital.

As the city was gradually becoming a IT hub of Eastern India with almost all major players opening their development centres, employees required quality heath service, Shetty said.

“We have also requestedthe state government to help Shetty set up a heart hospital here”, Pai told reporters.

Following is an excerpt from a report in Economic Times.

IT consulting firm MindTree Consulting Ltd would the start construction of its proposed development centre here from April, official sources said.

MindTree Consulting is one of the four major firms which had proposed investment in Orissa’s IT sector, the others being Genpact Limited, ICICI Eastern Regional Hub and Wipro Limited.

According to Orissa’s Information Technology Minister S N Patro, MindTree Consulting Limited had proposed to invest nearly Rs 200 crore in its project here.

"While Wipro will invest Rs 100 crore in its project, ICICI Eastern Regional Hub proposes to spend Rs 500 crore here," the Minister said, adding that Genpact had proposed to invest Rs 200 crore.

Dharitri has a nice article on the golden future of Dhamara. Following are some of the major projects involving Dhamara. My prediction is that in 10-15 years the Chandbali-Dhamara-Bhitarakanika area will be a beautiful metropolitan area  next to a national park. (See top right in this map.)

1. L & T and the Tatas are building a port in Dhamara.
2. Central government is upgrading Dhamara fishing jetty  to an international fishing harbor.
3. Bharati Shipyard and Appejay group plan to build a shipyard in Dhamara.
4. A railway line connecting Dhamara and Bhadrakh will be build.
5. Good roads will definitely connect Dhamara to nearby National Highways.
6. Dhamara will be a major stop in National Waterway 5.
7. Dhamara is next to the Bhitarakanika National Park (more)

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

The State Level Single Window Clearance Authority (SLSWCA) has paved the way for the first shipyard project in Orissa. 

… Presenting the case Ashok Dalwai, Secretary Industries the project will provide jobs for 41,000 people. 

The Bharati Shipyard Limited (BSL), a major private shipyard and the Apeejay Surendra Group, an industrial conglomerate have joined hands to set up the-State-of-the-art shipbuilding yard and ship repair yard project at Dhamra in Orissa. 

The mega shipyard project will entail an investment of Rs.2200 crore in 3 phases. 

Easy availability of raw material like steel, large number of skilled, unskilled man power and above all the proactive government policies dotted with positive environment for investors are creating conducive atmosphere for a mega shipyard in the state.

The requirement of steel in shipbuilding and repairing has been projected as in the first phase it will be up to 75,000 MT per annum, while in second phase it will go up to 2,30,000 MT.

In the final phase the steel requirement will go up to 4, 50,000 MT said the source.

The proposed site has been identified near the Dhamra Port, where out of 1500 acres surveyed 1050 acre of land has been provisionally selected for the mega shipyard.

Milestones set up for the project envisages that Master Plan will be ready in the next year and construction of the shipyard will begin in mid of 2008. 

The Joint venture promoters feel that the project will complete its first phase construction in early 2009 to begin commercial production by middle of the year.

Odisha.in adds the following:

The company has also plans to set up an ITI neared to the project site to provide technical training to local youth to enable them to get related jobs in the project.

Following is an excerpt from a report in the Business Standard.

ICICI Group’s eastern regional hub for back office operations, coming up at Chandaka industrial estate in Bhubaneswar, will be commissioned in 2009. This is one of the four regional hubs planned by the group.

“We expect the first phase to be commissioned in the next 18 to 24 months,  and, hopefully, the hub will be commissioned by the summer of  2009,” K V Kamath, managing director and chief executive officer, ICICI Bank, said.

Talking to newsmen after the bhoomi pooja (ground breaking ceremony) for the proposed hub, Kamath said the second phase is scheduled to be commissioned a year later if every thing goes right.

He said the hub will have a built-up area of 1.25-1.5 million square feet in the first phase, and will accommodate about 15,000 people.

The group had earlier signed an MoU with Utkal University and KITT for offering skill-enabling and vocational courses in the domain of banking, finance and insurance.

Kamath said about 10,000-12,500 people will be employed in the Bhubaneswar hub in phases.

Following is an excerpt from a report in Economic Times:

ITC group on Tuesday expressed keen interest in making investments for setting up luxury hotels and food parks in Orissa, official sources said.

This was conveyed to the state government during a meeting ITC vice president Nazib Arif had with chief minister Naveen Patnaik here, the sources said, adding Patnaik promised necessary cooperation for the proposed ventures.

The proposed food parks would have facilities for setting up of processing units, sources said.

Following are excerpts from a report in domain-B.

The Larsen & Toubro Ltd (ECC division) consortium with Italy’s Paul Wurth has been awarded a Rs1,205-crore turnkey construction contract for Bhushan Steel’s 2.5 million TPA blast furnace at its Meramandali plant in Orissa. …

L&T’s share in this project is pegged at Rs760.5 crore from this order, scheduled for completion in April 2010.

Paul Wurth’s scope covers basic engineering, supply of proprietary and special equipment and technical supervisory services while L&T’s scope covers detail engineering, supply of indigenous mechanical, electrical and instrumentation works including complete site services involving civil structural and erection works.

The project is the consortium’s third successive order for the construction of large capacity blast furnaces in the last two years, which is presently executing the 2.5 million TPA (MTPA) blast furnace on turnkey basis for Tata Steel at Jamshedpur, currently nearing completion.

Recently, the consortium bagged another order from Tata Steel for the 3.2 MTPA blast furnace at its Kalinganagar Project. In addition, it also commenced work on the 2.5 MTPA blast furnace for the public sector Rashtriya Ispat Nigam Ltd, Vishakapatnam.

Economic Times reported that

Larsen & Toubro, the country’s biggest engineering firm, will invest around Rs 400 crore in its proposed three million tonne alumina refinery joint venture with Dubai Aluminium Company (Dubal) in Orissa. It further said that "The total project cost would be Rs 15,000 crore. L&T would do the engineering, procurement and construction job for the project, which would cost around Rs 5,000 crore. The first phase of the plant at Rayagada with 1.5 million tons capacity is scheduled to be operational by 2010. In another similar report Zee News reported that Dubal will have the majority 74 per cent stake in the venture and the remaining 26 per cent will be with L&T.

Economic times reports that Some Punjab based industries plan to invest in Orissa.
The reports state that Arti Steel has already invested 450 crore out of a total investment of 900 crores. The first step in Auto parts investment is being planned with GNA Axle.

Even Hero Honda , bicycle manufacturer plans to invest in Orissa. Hopefully, this will be the start of a trend. Excerpts:

“Orissa’s rich natural resources are now luring the industries in Punjab, with the an auto parts maker and steel manufacturer committing separate investments to the tune of Rs 960 crore to the state.

While Ludhiana-based Aarti Steels had committed an investment of Rs 900 crore for setting up a half-a-million capacity steel unit in the state, Goraya-based auto parts manufacturer GNA Axle Group will invest Rs 60 crore for manufacturing axle shafts, gears for heavy vehicles.

Leading bicyle maker Hero Cycles is also quite keen on exploring the possibility of making an investment in Orissa.

“We have proposed to invest Rs 60 crore within the next four years in order to set up an auto component manufacturing unit which will cater to export as well as domestic markets,” GNA Axle Group Director Randeep Singh said.

The Orissa government has promised to make available 100 acres of freehold land to the company at a token amount of Rs 2 lakh per acre. In addition to it, the government has also offered power at a rate of Rs 2.90 per unit without excise duty.

“We set up our unit in March 2003 in Orissa after carrying out a survey. The state can offer many benefits in the shape of availability of raw material for steel producing unit like us. So far, we have invested Rs 450 crore in this project while balance will be invested soon,” said Aarti Steels Director Rajeev Mittal.

The unit is is expected to be completed next year, he added.

“In Orissa, besides getting cheap power, we will also be in a position to get raw material at a much cheaper rate as we will be nearer to the source of raw material,” reasoned Singh while adding that with this new unit, our freight cost would also get reduced significantly for supplying our finished products to domestic as export markets.

Leading bicycle company Hero Cycles is also quite keen on exploring the possibility of making an investment in Orissa. “We will certainly explore the possibility of investing in that state which is full of natural resources,” Hero Cycles, Director Vijay Munjal said.

Recently, a high powered delegation including Commissioner-cum-secretary, Department of Industries, Orissa, was in Punjab for inviting industrialists to tap the investment opportunities here.“

Myiris and others report on this. Following is an excerpt.

Larsen & Toubro (L&T) announced on Monday that the company led consortium  bagged orders worth Rs 10.70 billion for supply & installation of Sinter plant and other packages from Tata Steel.

Tata Steel is setting up an integrated steel plant with capacity of 6 million tons per annum (MTPA) in Kalinganagar industrial complex at Duburi in Jajpur district of Orissa to be completed in two phases of 3 MTPA each. The orders are for the first phase of this greenfield project.

Sinter Plant

L&T in consortium with Outotec, Germany bagged EPC (engineering - procurement - construction) contract for 5.75 MTPA Sinter plant valued at Rs 8.36 billion. The company`s share of this order is Rs 6.23 billion. This would be the single largest Sinter plant to be built in India. This is scheduled for completion in 30 months.

Steel Melt Shop

L&T has also been awarded the contract for civil and structural steel works of steel melt shop valued at Rs 2.33 billion. This is scheduled for completion in 28 months.

Today’s Business Standard reports that all future MOUs signed by the Orissa government will have more conditions related to value addition, employment infrastructure and ancillary development. Following are some excerpts from that article.

The Orissa government has decided to incorporate new conditions in all MoUs to be signed henceforth with investors proposing to set up projects in the state, to compel them deliver more on value addition, employment, infrastructure and ancillary development front.

At a meeting today, L&T officials made a presentation regarding plans on investment in Orissa and the benefits to flow to the state. According to sources, the company has agreed to upgrade the existing plant of L&T plant located at Kanspal near Rourkela in Sundergarh districts where high end engineering products will be manufactured.
Similarly, it has been asked to set up a technical institution closer to the refinery site and develop a greenfield plant. The company will also be involved in the infrastructure development.

For this, the company has been asked to participate in the Special Purpose Vehicle (SPV) for Therubali-Gunupur Rail Link. Further, in order to promote employment in the state the company will be asked to develop downstream industries, he added. It may be noted, the details of the MOU conditions will be worked out within next 2-3
days before formal signing of the MOU.
…
This changed attitude of the government to extract certain commitments from the industry in MoUs to safeguard the state’s interest is likely to be reflected in the signing of the Memorandum of Understanding (MOU) for the L&T-Dubal project, a joint venture between L & T of India and Dubal Aluminium of Dubai.

This is a good first step; especially the part regarding establishment of “technical institute.” However, it is not clear what kind of technical institute is referred to: an ITI, a polytechnic, or a degree engineering college. The government should insist on all three. As a reference point Jharkhand has convinced Central Coalfields to set up an engineering college in Jharkhand, and Bokaro Steel Plant to set up an engineering college and a medical college in Jharkhand.

Orissa must follow Jharkhand’s example. It should not only require a medical college and an engineering institution (with degree college, polytechnic and many ITIs as part of it) from the new companies but also require it from existing companies; both public and private ones. The existing companies which do not agree to this should be blacklisted and not given any preferred treatment for various things such as permissions, renewals, expansions etc. To discourage them from delaying, an escalation formula should be worked out so that the more the company delays the more it has to put in later.

Slowly more news about this is coming out. [Financial Express, Kalinga Times, Tathya.in 1,2,3 ]. Following are some salient points culled from various news articles. (More will be added as more news report come in.)

• Financial Express: The hub, which will come up on a built-up area of 1.5 million sqft n the Chandaka Industrial Estate of the city, will act as a centre or convergence of the bank’s activities, like call centre, ack-office operations for banking & insurance as well as sales and administration.
• Financial Express: The proposed hub would accommodate approximately 10,000 people in a phased manner and have the capacity to scale up the operations in future to a potential of 15,000 manpower.
• Fiancial Express: “ICICI Bank selected Bhubaneswar for its eastern regioanal hub after choosing Hyderabad and Ahmedabad for the southern and western hubs, respectively, because of the initiative taken by the Orissa government,” said Kamath. He said the first phase of the hub would be fully operational in two years and the second phase will be completed in the next three years.
• Kalinga Times: In order to ensure availability of skilled local manpower, the bank has already started working in a partnership model with two universities in Orissa. In this regard, a separate MoU was signed between the bank and Utkal niversity on the occasion for offering various skill enabling and vocational courses in the domains of banking, finance and insurance. … Later in the day, the bank signed another MoU with KIIT University for running of an e-Learning Centre like the one to be run by Utkal University.
• Tathya.in: Naveen also asked Kamath to facilitate the Institute of Entrepreneurship Development (IED) into a national level Centre of Excellence.ICICI has played a crucial role in developing EDI at Ahemadabad to a national level institute.Kamath promised to look into the matter, said sources.

Tathya reports that ICICI Bank will sign an MOU with Orissa government to set up a call center and back office operation for banking and insurance. This center to be located in Infocity will eventually hire 15,000 graduates from normal colleges. In terms of the number of people they will hire, this is a big deal; much bigger than the overhyped POSCO or Mittal deals. ICICI Bank will not use our mines; will not pollute our atmosphere; will not displace people; and will only need 12 acres and yet will hire 15,000 people. Orissa should be going after more such companies and less of the metal and mining kind.

Notes:

• Earlier in April this year ICICI Bank made a similar announcement with respect to Hyderabad.
• In 2005 ICICI Bank had planned for the eastern hub to be in Kolkata.
• ICICI Bank is different from the BPO company ICICI Onsesource which is now renamed as First Source.
• ICICI bank recently launched the ICICI Knowledge Park in Hyderabad.

Following is somewhat of a dated collection on investments and investment plans in Orissa.

• Summary: [1], [2], [3:Interview with CM]
• New jobs: [1.5 lakhs new jobs]
• Directorate of Industries, Govt. of Orissa
• Education and Education related financing
  • Loans and insurance for college education:
    • a great Andhra bank scheme
    • An educational loan portal
    • Another educational loan portal
    • Yet another educational loan portal
    • A rediff article with pointers
  • Higher Education: [FinExp-Aug05]
  • Primary and Secondary Education: [Insurance-plan-Aug15-05], [Insurance-plan]
    Editor’s comment, Aug 14, 2005: The private engineering colleges and medical colleges should be encouraged to open one or more Class I-XII schools. In general, these private colleges should spend 10% on the above, 80% on their own stuff, and another 10% on post-graduate education. For the 10% parts they can either have their own ClassI-XII school and M.Tech/Phd Program or pay the amount to an appropriate fund.
    Editor’s comment, Aug 14, 2005: For Oriya medium students to compete well in national and international level exams and competitions, after class 7 one should have the option of pursuing science and social science either in English or Oriya. To overcome the worry that students will lose touch with Oriya by pursuing science and social science in English, from Class 7, Oriya should be split to two parts, and be assigned twice its current weightage. I.e., instead of 100 marks for Oriya, there will be 200 marks for Oriya. The two parts could be (i) grammar and vocabulary — similar to TOEFL and GRE, and (ii) Writing and literature. ( Some decisions related to this made by the Orissa government.)
• Information Technology: [TCS1], [TCS-2], [TCS-3], [Wipro-BPO-1], [WIPRO-2], [Wipro-land-bought], [other IT and BPO companies]
• Steel plants: Tatas, KK Birla Group, Jindals, Essar, Murugappas, MESCO, POSCO etc. [1], [2], [3], [4], [5], [6:Jindal], [7:mesco-insightOrissa-july22-05], [8: A summary article in May 05 Orissa Review], [Adhunik-Sundergarh], [Rungta,Bhusand,Jindal-JSPL,Titanium], [production in 9 plants], [More MOUs], [More MOUs2]
• Tatas - Steel plant@Duburi, TCS@BBSR, Gopalpur: [0: TATA news releases], [1], [2], [3], [4], [5], [6:Kalinganagar],
• POSCO: [1], [2], [3], [4]; [Forbes-MOU-22Jul05]; [Forbes-2-22Jul05]; [FinExp-MOU-22Ijul05]; [HindTimes-MOU-22Jul05]; [AustrFinRev-MOU-22Jul05]; [InsightOrissa-MOU-22Jul05]; [Some-Details-from-Insight-Orissa]; [Pluses-n-minuses:rediff]; [Impact-on-infr]; [Hindu-July10-05]; [Rebuttal-to-criticisms-july15-ToI]; [FinExpr]; [Taats vs POSCO] ; [3 POSCO subunits]; [POSCO sets up subsidiary:Aug 31'05], [land-acq], [90 percent in Orissa in favour], [identifies 2 mines]
• POSCO ancillaries and Indian partners: [1:steel pipes], [2:Indian partners]
  • Editor’s comment on July 4 2005: My impession based on reading the newspapers is that Orissa govt has probably become wary of some of the big Indian players after the TATAs taking advantage of them in Gopalpur, and other companies in other places. It seems like (from reading various reports: [0:a list from 1999-how many of them materialized?], [1] , [2], [see page 3], [4] ) the TATAs signed MOUs about plants and infrastructure etc. at Gopalpur and got mining leases but then kind of forgot about making the plants and building infrastructure but have been using the mines. They used excuses, some valid, regarding this and that infrastructure not being there. [They have signed something more recently; lets see if that is for real or a sham to get mining leases renewed. Some progress in regards to their promise seems to have taken place: a; b ] The expectation was that Gopalpur would be like another Rourkela or Jamshedpur. But nothing remotely like that has happened. Coming back to POSCO, the MOU seem to have many clauses that would prevent POSCO from taking advantage of Orissa without delivering on its promises. Also, if POSCO does something like the TATAS, its easy to fight them, unlike fighting the TATAs. Even saying something bad about the TATAs is a no-no in India. [Thus the government should be careful in any of its signing with the TATAs or similar big Indian powerhouses. It should make sure that any mining lease should be tied to the other promises very tightly, and without loopholes.] So I personally am hopeful that POSCO will have a big impact on Paradeep and Orissa, more than the impact of any other private company in Orissa. Plus the investment comes from outside India, not from inside India. Thus making more capital available to other projects in India. Also the government is right to not put its egg in one basket. It makes perfect sense to try different avenues: foreign investors such as POSCO as well as the various Indian companies.
• From Steel to automobiles/2-wheelers-n-beyond: [Ind-Exp-22ndJune05]; [TOI-July4-05:Kymco,Corus]; [Pioneer-July27-05:Kwang-Yang-Motors-Taiwan], [Mahindras:TOI-Aug05-05], [Mahindra:InsightOrissa]
• Refractories: [July9-05-Telegraph]
• Alumina/Aluminium: Hindalco [1]; Vedanta [a], [b:Vedanta cares]; [Dubal-L&T]; [alumina-refinery-smelter-Rayagada]
• Titanium complex at Chhatrapur. (The Samaja Aug 16th, 2005).
• Mining: [1],
• Refinery: [1]; [IOC-Paradeep-21-6-05]; [July12-FinExp], [IOC-on-schedule]
• Breweries: [United Breweries]
• Paper: [JKPaper]
• SEZs: [1]
  • Gopalpur: [july26-05]
  • Paradeep: [july26-05]
• Power: Current availability; [list-of-possibilities-fe-july24-05], [June2-05-Reliance]; [Reliance2]; [RPG-jun2405-Tel]; [Neyveli]; [MMTC-Paradeep-Sept12-05]
• Food processing: [Shrimp-Navayuga]
• Hospitals: [Planned Heart Institute]
• Hotels: [ Statesman Aug 18'05], [Buisness-Standard- Sept9], [OTDC-disvestment]
• In relation to other states of India: [1], [2]
• Kalinganagar/Duburi: VISA, Jindal, Neelachal Ispat Nigam, MESCO, Tatas(?) [Ref:InsightOrissa]
• Factories in neighbouring states — impact on Orissa infrastructure: [Mittal-Jharkhand]
  Editor’s comment on July 27, 2005: Jharkhand and Chhatisgarh are landlocked. Mineral and manufacturing plants in Jharkhand and Chhatisgarh would need access to ports. This will provide opportunity for Orissa to make its case (get Jharkhand and Chhatisgarh legislator’s support) and make further infrastructure development such as ports, roads and railways. In particular, Dhamara and Chandabali port, train lines to them such as Tata-Baripada-Balasore-Dhamara, Bimlagarh-Talcher-Paradeep, and Daitari-Bansapani-Haridaspur-Paradeep, and roads ( Jharkhand, Orissa, Chhatisgarh) to them. While Jharkhand plants can use Haldia port in West Bengal, for Chhatisgarh the closest ports are in Orissa (Dhamara, Paradeep, and Gopalpur). Since Haldia port is overloaded, even for Jharkhand easy accessibility to Orissa ports is important. [a step in this regard], [another step]
  28th July 2005: Orissa, Jharkhand and Chhatisgarh should come together and jointly pursue several things. For example, an IIT in Rourkela (which has the best NIT among the three states) would benefit all the three states, as Rourkela is very close to both Chhatisgarh and Jharkhand. In return Orissa can support for an IIM in Bilaspur or Raipur. Good road and railway connectivity from Chhatisgarh and Jharkhand to Orissa ports will be beneficial to all. The three states can jointly promote cultural tourism to the tribal areas of the three states.
• Policies: [1]