Apeejay Infralogistics Private Limited (AILPL), a 50:50 JV of Apeejay Surrendra Group, and UK based Eredene Capital PLC, on Thursday announced the opening of two new integrated Logistics Parks in West Bengal’s Haldia and Kalinganagar in Orissa’s Jajpur.

The strategically located facilities providing around 1.0 million sq ft of warehousing space represent combined investments of over Rs. 250 crores.

… Karan Paul, Chairman of Apeejay Surrendra Group, said , “West Bengal and Orissa – both states are attractive investment destinations with forward looking government policies that favour setting up infrastructure projects such as Logistics Parks. Located in the commercial hubs, I am confident that these two integrated facilities will boost trade not only in the two states but the region as a whole. ”

The facilities at Kalinganagar under phase-1 will include 120,000 sq ft for domestic and contract warehousing and 175,000 sq ft for open storage and project cargo. On completion the Kalinganagar complex will have capacity to handle over 2500 containers for EXIM and have covered warehouse of over 250,000 sq ft in addition to hospitality, commercial and retail space.

The 30 acre Kalinganagar Logistics Park is being set up with an initial operational area of 16 acres covering 10 acres for Inland Container Depot to handle 1500 EXIM containers and 22,600 sq ft of Bonded ware house.

The facility is equipped with the state’s first fully purpose-built Container Freight Station cum transport hub and warehouse facility specifically targeting the in-bound and out-bound cargo of the steel & mineral industry to provide a truly multi modal solution.

… Nikhil Naik, Director Eredene Capital PLC, said: “We are confident that both these Logistics Parks will play a key role in the development of the Eastern Region by adopting high standards in the supply chain network and by providing real value additions to customers.”

… Designed as gateways through which companies can manage their entire supply chain logistics the two Logistics Parks provide multi functional facilities for storage, distribution, transportation, ancillary support services and trade facilitation, all under one roof for end to end logistical support.

• Vedanta Aluminum would enhance its refinery, smelter and power plant capacity with a total investment of `37,440 crore. Vedanta Aluminium company would enhance its production capacity Langigarh unit to six million tonne from existing one million tonne. The company would also enhance its production capacity of Jharsuguda aluminium unit to 1.6 million tonne from existing 0.25 million tonne per annum. Similarly, the company would also increase power generation capacity of its CPP (captive power project) to 1,350 mega watt from existing 675 MW at Jharsuguda.
  
• NSL Nagapatnam’s `8,900 crore investment plans in the State. The company would set up a 1320 MW power plant in Angul district at a cost of `6,600 crore, a 5,000-tonne sugar refinery at Paradip with an investment of `800 crore and a textile and spindle mill with 3 lakh spindles at a cost of `1,500 crore at Rayagada.
• ACC Cement’s `1,850 crore three MTPA cement project along with a 50 MW CPP in Malkangiri district 
• Bhusan Steel’s `3,000-crore steel park at Meramundali.
• SPI Ports to set up a 1,320 MW (2 x 660 MW) power plant at Mahakalpada in Kendrapara district at an investment of Rs 6,600 crore.
• KU Pvt Ltd would invest Rs 7,260 crore to set up a power project with 1320 MW power generating capacity at Thakurpur in Sonepur district.
• Rohit Ferro Alloys would spend Rs 2500 crore for setting up a 67.5 MW captive power plant at its 0.6 MTPA stainless steel project at Kalinganagar in Jajpur district.
• Aditya Aluminum to enhance the capacity of its Rayagada alumina refinery to 1.5 MTPA from the present 1 MTPA, and Jharsuguda smelter from 0.26 MTPA to 0.36 MTPA with an total investment of Rs 11,000 crore,
• Jindal India is proposing to enhance the capacity of its power plant from 1,200 MW to 1,800 MW with a total investment of Rs8, 000 crore.
• Ind-Bharat is proposing to expand its power project capacity from 700 MW to 1320 MW by adding a 660 MW unit with a total cost of Rs 3300 crore.
• Kalinga Energy, which is now shifting its site from Babuchaki in Sambalpur to Sodamal in Jharsuguda district has also got green signal to enhance the capacity of its power project from 1000 MW to 1320 MW with a total cost of Rs 6500 crore.

• July 10, 1:19 AM: Construction at Site – The construction work at the main plant site will start shortly after the rehabilitation and resettlement process is completed. But other construction work to support the main plant like Intake Well, IM Section, Fabrication Yard, Hospital and most importantly the rehabilitation colonies and camps have already started.
• July 10, 1:22 AM
• July 12, 12:55 AM: Plant Equipments – Orders worth Rs 6,373 crore for the equipment and civil structures have already been placed. While the equipments like Blast Furnace and Sinter Plant for the steel plant have already been received and stored in the Tata Growth Shop and Agrico at Jamshedpur and Bamnipal, the orders for Steel Melting Shop and Coke Oven have been placed.
• July 12, 12:58 AM: Civil Structural Work – Orders of more than 1,000 crore for civil structural work has been placed.
• 12:59 AM: Intake Well – The intake well is located at Marthapur on the bank of river Brahmani, situated about 18 kms from the main plant site. This intake well will supply water to the plant.
• 1:00 AM: Fabrication Yard – The steel structures required for construction of different shops like steel melting shop, blast furnace etc are being fabricated at the Fabrication Yad at Jodabar. About 2200 MT of steel have already been fabricated at this unit. The members of Tata Steel Paribar after being trained are also working here.
• 11:42 PM: I M Section – The Company is constructing two covered sheds near Duburi to store the plant and machineries required for the construction of steel plant.
• 11:44 PM: Hospital – To extend better healthcare facilities to the people in and around Kalinga Nagar, Tata Steel is setting-up a hospital in Gobarghati rehabilitation colony. The hospital building is under construction on a land of 4 acres. When completed this hospital would serve 10,000 families with round-the-clock service, pathology lab and outdoor complex.
• 11:44 PM: Construction at the rehabilitation and resettlement Colonies – Tata Steel has developed three rehabilitation and resettlement colonies as well as five transit camps at Kalinga Nagar to ensure smooth living of the relocated families.
• 11:45 PM: Power to the Main Plant Site:- The Steel Plant at Orissa is a complex combination of Steel Processing technologies designed at much larger scale to improve efficiency and therefore have large demand on stability & control on operating areas including the Power generation & Distribution system.
• 11:45 PM: The plant has been designed with three separate sources to pull in Power and increase the tolerance of the system to handle large Power requirement of Steel Plant and with only GRID source during Construction
• 11:45 PM: The captive Power plant inside the Kalinganagar plant area fuelled by the By-product gases generated by the steel making process (CPP by Tata Power)
• 11:46 PM: Orissa Grid from 220 kV New Duburi GSSII Sub Station.
• 11:46 PM: Captive Coal based Power plant at Naraj Marthapur (CPP by Tata Power)
• July 13, 5:00 AM: Tata Steel Rural Development Society (TSRDS)a non-profit organisation has been trying to bring the displaced tribal communities of Jajpur District in Orissa to the mainstream through their socio-economic development. TSRDS has helped the tribal men and women from the displaced families in health care, safe drinking water, …sanitation, women empowerment, livelihood etc.
• July 14, 2:04 AM: Logistics – The life line of a steel plant is its logistics. It is a well known fact that every single ton of steel production needs transportation of minimum 4 ton of raw material and finished goods. So right from location selection to layout design, logistics plays a vital role in planning a new mega steel plant like the Kalinganagar Steel plant in Jajpur’ Orissa.
• 2:05 AM: Iron ore, coal (Domestic as well as imported) and imported limestone are the prime inputs for the steel plant. The Iron ore mines and main port of relevance i.e. Dhamra Port, is barely 100 KM from the plant site. For Orissa Steel Project all these sources are connected via rail linkages. Some through existing Indian R…ail network and some portion is planned under captive Logistic projects.
• 2:05 AM:  RITES had been appointed as the consultant to prepare the detail rail plan which consists of (a) The Traffic projection & Capacity calculation for the existing IR network (b) Rail alignment and Take off plan for Tata Steel’s Sidings. (c) Cost estimate of the total Project.
• 2:06 AM:  Apart from the plant internal rail yards Orissa Project, will require a 25 KM (Route Length) captive rail connection in Mines and a 20 KM (Route length) rail connection for plant connectivity to the nearest serving rail stations (Baghuapal & Jakhapura).
• 2:06 AM: These have been designed considering the highest operating efficiency level and zero process interruption probability. Railway Board and Zonal railway have finally accepted our comprehensive rail logistic proposal.
• 2:57 AM: At Integrated Industrial Complex, Kalinga Nagar, Duburi, in the district of Jajpur, in Odisha, a 6 million tonnes integrated steel plant of Tata Steel is proposed to be setup. Setting up the steel plant will necessitate displacement of about 679 families of three villages, namely, Gobaraghati, Chandia and Gadapur. Tata Ste…el has already started providing state of the art training for the members of the displaced families and would provide employment to one member of each extended family.Tata Steel is building model rehabilitation colonies for the resettlement of the displaced population so as to provide modern basic amenities and improved living conditions.Tata Steel believes that the primary purpose of the business is to improve the quality of life of people. Each of the displaced families will be a part of the ‘Tata Steel Parivar’ which is a committed and structured approach to ensure a better quality of life for the displaced families through focused interventions.
• July 15:  Apart from the plant internal rail yards Orissa Project, will require a 25 KM (Route Length) captive rail connection in Mines and a 20 KM (Route length) rail connection for plant connectivity to the nearest serving rail stations (Baghuapal & Jakhapura).
• These have been designed considering the highest operating efficiency level and zero process interruption probability. Railway Board and Zonal railway have finally accepted our comprehensive rail logistic proposal.
• Although the bulk of the Material movement for an operating steel plant is done via rail transport for all the external movement and through conveyor system for in-plant movements.
• But road transport also plays a vital role in the operating logistics of a steel plant, due to the fact that, there is no economical means of transporting a wide variety of materials required for or generated from the operation of process plants, which needs transportation in small quantity for a short distance.
• In addition, a significant portion of the finished goods movement is required to be transported by road vehicles only.
• But Unlike Jamshedpur, fortunately Kalinganagar industrial area is well-connected by road. Our Plant site is flanked by Daitari- Paradip express way which got converted to NH-200 recently and on the eastern side, the state highway connects the Sukinda Mines, to our plant site.
• A road transport planning for a steel plant includes building roadways and plant roads , parking stations, maintenance facilities, service roads, a transport circulation plan and a scientific traffic projection. All these have been done with the help of a professional organization.

But Pathan, and scores like him who live in the shadow of a new factory built by Tata Motors to make its ultra-cheap Nano car, are the beneficiaries of the race to transform India from a nation of small farmers to an industrialized power.

… Against this backdrop of strife, Pathan’s story is the ideal of what could be achieved if the more than 50 percent of Indians who live off the land get a real stake in the new economy. It’s a principle that advocates of market capitalism and human rights activists can agree on, but that often fails to materialize across rural India, where stories of powerful business interests and corrupt officials conspiring to throw poor farmers off their land are all too common.

Around the Tata plant in Sanand, in the western state of Gujarat, people have begun to talk of the "Nano effect."

Go down a narrow lane that runs to dirt not 15 minutes from the factory and amid the gamboling goats of Chharodi village, you will find 25 new homes.

Property prices have risen sharply — from 50 to 400 percent — and men are making fortunes brokering land deals.

The village head says three dozen of the 3,000 people in Chharodi have gotten work from contractors. The Nano factory hasn’t given them jobs directly, but it has offered a toehold in the industrial economy. They remain farmers, but a growing part of their income comes from informal business ventures or work for contractors.

Pathan and his three brothers sold the government one-third of their family farm to make way for the Nano plant. They were paid 20 million rupees ($432,900) — a fortune even in Gujarat, one of India’s richest states.

Ask the Pathan brothers what they did with this money, and they grin like schoolboys.

They bought 2.7 hectares (6.6 acres) of land — more than doubling their initial landholding — three kilometers (two miles) away, where they are preparing to plant their first crop.

They bought seven tractors and three Bolero jeeps, which they use for contracting work at the Nano site, raking in 455,000 rupees ($9,848) a month.

They are rebuilding their family home. Gone is the mud and thatch. Today their angular concrete two-story is the biggest on the block.

"You’ve done a damn good job out here," Pathan says of Ratan Tata, who heads the Tata group’s sprawling industrial empire.

The underlined part above is an important part. If the land losers are paid multiple times the "current" value of their land, in most places they can easily buy more than that amount of land within a few kms.

Following is an excerpt from a Nageswar Patnaik article in Economic Times. 

There is something to cheer about for the families displaced by the Tata Steel Project at Kalinganagar. These families have achieved zero dropout rate at elementary school level, sustainable environment, poverty eradication, increase in literacy rate, gender equality, empowerment of women.

The achievers of these challenging Millennium Development Goals (MDGs) are not highly educated and extraordinary urbanite people, but ordinary members of self-help groups residing in rehabilitation colonies at Kalinga Nagar in Orissa’s Jajpur district.

Helped by country’s major steel producer, Tata Steel, the self-help groups called Tata Steel Parivars (TSPs) have successfully ensured that all children living in the colony went to the school and got education. Tata Steel is setting up of a 6-million ton per annum integrated steel plant at Kalinganagar Industrial Complex at Kalinga Nagar in Jajpur district.

“The noteworthy achievement of Tata Steel Parivars [TSP] at Kalinganagar is that those families have achieved the target of 100% elementary education with zero school drop out rate,” says Sukanta Rout, an educationist who played a crucial role in motivating the children, mostly tribals, to go to the school.

As many as 159 tribal children have been enrolled in the residential schools in Jajpur district. Similarly, 50 children have got the opportunity of studying in one of the premier schools of the state – Kalinga Institute of Social Science (KISS), here. As many as 213 children are studying in schools as day scholars.

Simultaneously, there is significant jump in the literacy levels of the TSPs from 45% in 2005 to 65% in 2010.

Most significantly, there has been an incredible and drastic change in the will power of women of these relocated families. The empowered women community are now self-employed and going overboard for what they are doing. They have engaged themselves in poultry farming, gardening, stone carving, saura painting and in setting up of small industries like phenyl and pickles.

“A few years before, we were quite poor, – we did not have money to even buy food, let alone send our children to school. Now with own our income, we are not only meeting our day-today expenses but also support our school and college-going children,” says Jamiti Mahanta, head of an SHG group.

If the industries that are coming up in Odisha, such as POSCO and Vedanta, can be made to do the above and perhaps more then it will be a win-win situation for all. POSCO’s current package seems to be a step in the right direction. Following is an excerpt from a Business Standard article on that.

Posco, the biggest foreign direct investment (FDI) in India at $12 billion (Rs 54,000 crore), has offered the largest ever compensation package in the country for the displaced and landless farmers.

The Rs 400 crore compensation — part of its estimated project cost — announced by Posco India for Orissa, is expected to benchmark industry relief in the country. The package will benefit over 2000 encroachers and landless labourers at the Posco site.

While Rs 100 crore will be provided for the acquisition of government and private land, Rs 100 crore will be given towards building a rehabilitation colony and Rs 200 crore as compensation to encroachers of government land.

The move – including encroachers of government land and landless labourers earning their livelihood from the area – was beyond the prescription of the state or national rehabilitation and resettlement (R&R) policies.

While fixing the price of private land at Rs 17 lakh per acre, the Rehabilitation and Periphery Development Advisory Committee (RPDAC) for the Posco project announced a compensation of Rs 11.5 lakh an acre for the loss of betel vines, most of which are on government land. There are about 1,877 betel vines in the site covering 300 acres.

Landless labourers working in the betel vines will get 20 per cent of the total compensation for the loss, which is over and above the amount paid to the owners of the areas where betel is grown.

Similarly, RPDAC has prescribed assistance of Rs 2 lakh per acre for owners of the prawn gheris — most of which are operating on government land — and Rs 1 lakh an acre for farmers using government land for agriculture.

In a never-before step, the South Korean steel giant’s package will pay an unemployment allowance of Rs 2,250 a month to the landless labourers, who will lose their livelihood following the acquisition, till they are provided job by the company. Capping it all, RPDAC has decided to provide alternative housing to families who had encroached and built their houses on government land.

In comparison, the compensation package for sharecroppers or landless labourers in Bengal’s Singur was 25 per cent of what the land owner received — for a single-crop Rs 2 lakh and Rs 3 lakh for double-crop farmland. In Nayachar, the West Bengal government had promised to rehabilitate 100-150 fishermen families who had encroached upon government land — the site for a chemical hub.

The rate is also more than what neighbouring Chhattisgarh is offering. The government there recently hiked the compensation to Rs 10 lakh for an acre for two-crop farmland, Rs 8 lakh an acre for single-crop un-irrigated land and Rs 6 lakh for barren land.

The captive mines given to these companies and the royalty rate is a different issue. I believe that currently the royalty given to the state is too little.

The Western Industrial Belt.

The Southwestern & Central Outposts.

• Berhampur-Gopalpur to the south (with a then population of 1.5 million; about 145 kms away)
• Puri to the south (with a then population of 700K; only 30kms away)
• Kalinganagar to the North (with a then population of 500K; only 50 kms away)
• Talcher-Angul to the West (with a then population of 500K; only 110 kms away)
• Dhenkanal to the west (with a then population of 200K and almost in the periphery)
• Paradip to the east (with a then population of 400K and 90 kms away)
• Dhamara-Chandbali to the Northeast (with a then population of 200K and 140 kms away)
• Bhadrak to the North (with a then population of 200K and 140 kms away)

A little farther is

• Balasore-Chandipur to the North (with a then population of 300K and 162 kms away from the Northern end of Bhubaneswar-Cuttack-Khurda area)

In addition there will be several port towns other than the ones mentioned above and a few smaller towns (For example, Nayagarh)  within 200km radius of greater Bhubaneswar.

Besides individual CDPs for these areas the Odisha governement should start making plans for this larger overall area. It would form a different kind of megalopolis than New Delhi, Mumbai or Kolkata with a well planned hub (Bhubaneswar) surrounded by mini-hubs and with rural areas in between. I can not off-hand think of another such area in the world; may be the readers can point me to some. Please suggest what kind of plans need to be made. (Please note that for something to be up and running in 20 years, plans need to be made now.) For example:

• Commuter trains at frequent intervals and the necessary infrastructure for that. Following are some of the segments
  • Bhubaneswar-Puri-Konark-Astaranga (Puri-Konark-Astaranga needs to be built; alternatively if Astaranga port comes up, then there may be a new line from Barang to Astaranga)
  • Bhubaneswar-Berhampur-Gopalpur (Berhampur-Gopalpur needs to be built)
  • Bhubaneswar-Jajpur Rd(Kalinganagar)-Bhadrak-Dhamara (Bhadrak-Dhamara is ready but no trains yet)
  • Bhubaneswar-Jajpur Rd(Kalinganagar)-Bhadrak-Balasore-Baripada
  • Bhubaneswar-Jakhapura(Kalinganagar)-Tomka (on the line to Kendujhargarh)
  • Bhubaneswar-Cuttack-Paradeep (ready)
  • Bhubaneswar-Dhenkanal-Talcher-Angul (ready)
  • Bhubaneswar-Khurda-Nayagarh and beyond (being constructed; part of Khurda-Balangir)
  • Angul-Talcher-Sukinda-Kalinganagar (being constructed)
• Expressways linking these places
• Fast buses linking these places
• Fast airport shuttle
• Some of these places would be connected by waterways including National Waterway 5
• Express ring road around each of these places
• Co-ordinated public transport in each of these places
• ??

Please let your imagination run wild!

Buoyed by successful resettlement of displaced persons after five years, Tata Steel, which is setting up a 6-mtpa steel plant at Kalinga Nagar in Orissa’s Jajpur district, has undertaken massive infrastructure development work at the project site to get support of the local people, especially the tribals.

Under its Tata Steel Parivar resettlement and rehabilitation (R&R) programme, the leading steel producer of the country has laid 20 km of quality motorable roads connecting all rehabilitation colonies, besides constructing 32 km of drainage system at adjoining tribal-dominated villages such as Trijanga, Sansailo and Gobarghati.

As many as 300 sodium vapour halogen lamp posts have been installed and pipe water provision made to provide better life to the displaced people living in rehabilitation colonies.

Each colony in the project area has a dispensary, community centre and several education centres offering management and technical courses.

“The Tata Steel Parivar rehabilitation scheme at Kalinga Nagar provides substantially better facilities than the government-framed R&R policy. The government policy provides employment for one member from each core household. On the other hand, Tata Steel Parivar policy provides employment opportunities for each major member of the core house. It also provides training facilities for technical skill upgrade,” a press statement, issued by the company here on Thursday, said.

The release also noted that scholarships were being provided for displaced persons pursuing higher education in professional fields such as medicine, engineering and management.

“An amount of Rs 2.21 lakh is also provided as onetime assistance in lieu of employment. Further, under the Tata Steel Parivar policy, each family is given a monthly maintenance allowance of Rs 2,000-2,300 till they get employment in the plant whereas the policy stipulates payment of maintenance allowance for 12 months only,” it added.

The opposition in Kalinganagar has finally seen light and allowed the Tatas to build the infrastructure of Kalinganagar. Related to this, The Telegraph of UK has apologized to the Tatas for their negative coverage.

Things also seem to be going in the positive direction in the POSCO front and I hope the people there visit Tata’s colonies in Kalinganagar and demand and get similar or better facilities and form a positive partnership with POSCO. In addition the Odisha government should push POSCO in developing a POSTECH like University in Paradeep.

However, there is not much progress with respect to Vedanta Aluminum in Kalahandi or Vedanta University in Puri. Here again it would be wise for the people there to visit Tata’s colonies Kalinganagar and demand and get similar or better facilities and form a positive partnership with Vedanta. But the time may be running out for Puri as Vedanta University Project has indicated that it may give up and move south where it will be welcomed with open arms. If that happens it would of course be a mistake of a century for Puri and Odisha.

In regards to the Arcelor-Mittal and Keonjhar the company really has not made much visible effort to woo the people.

Apeejay Infralogistics Pvt Ltd, a joint venture between Apeejay Surrendra Group and Eredene Capital Plc, UK, hopes to commission the first phase of its two integrated logistics parks at Haldia (West Bengal) and Kalinganagar (Orissa) towards the end of this year.

… Mr Sourav Daspatnaik, Director, Apeejay Surrendra Group, said, “We have just received the Commerce Ministry’s approval for setting up an inland container depot (ICD) at Kalinganagar …”

The Haldia integrated logistics park, estimated at Rs 200 crore in phases, would come up on over 90 acres while the one at Kalinganagar, costing Rs 60 crore, over 30 acres.

The Kalinganagar logistics park, he said, would be different from the one at Haldia because it would cater to the requirements of the steel units coming up in the area. “The big names in steel such as Jindals, the Tatas, and the Visa Group are present at Kalinganagar,” he said.

… In the first phase, the Haldia outfit would be complete with an ICD, warehousing facilities – both covered and open, truck terminal and trade facilitation centre and other facilities. Similar facilities, though on a smaller scale, too were being created at Kalinganagar, he added.

As per http://www.jcdl.in/app_proj.htm the following projects have been approved for implementation.

Tathya.in has a report on the Trijanga township buil by Tata Steel in this area. Following are some excerpts

Eco-friendly atmosphere, planned township, wide concrete roads, round the clock power supply, piped water supply, permanent eco-management and drainage system with lush greenery are something, which even some of the modern townships in the country do not have.

But the new township established by Tata Steel Paribar in Trijanga in Jajpur has all these facilities and much beyond. …

The Company apart from providing 0.1 acres of homestead land and Rs 2.5 lakhs for house construction to relocated families had several round of discussions with them while planning for their new home at Trijanga Rehabilitation Colony.

While It has provided all the basic amenities like water supply, electricity supply, ration, community space, grain storage facility, children’s recreation park, toilets, welfare office, balwadis, dispensary etc, the sprawling greenery that has come up in last two years is for one to see it to believe it.

The colourful houses with dish antennas besides concrete paved roads with avenue plantation and permanent drains shows the commitment of Tata Steel to usher in a better quality of life for the rehabilitated families in Trijanga.

16 km all weather motorable roads, 32km of drainage, solid waste and garbage management through dedicated agencies has been provided.

The Company has also provided sodium vapor halogen lamps for street lighting.

Tata Steel Parivar members are also now use safe portable drinking water from running taps and consume 500 watts per family electricity.

Youths of Parivar member use Community centre for recreational purposes provided by the Company.

Round the clock health care facility is being provided in Trijanga Rehabilitation Colony through a dispensary and 24 hours standby ambulance services.

All of this hard work of rehabilitated tribals in a better atmosphere has blossomed into emerging township where rural and Urban Odisha co-exist. …