Following is from Samaja:

Following is from a report in Economic Times:

Union minister of state for chemicals and fertilizer, Srikant Jena on Sunday said the fertilizer plant at Talcher, 126 km from here would be revived with an investment

of Rs 12,000 crore. It provided direct and indirect employment to 30000 people in the area.

“The government will appoint consultants to suggest the modalities to raise finance, identify appropriate technology to revive the closed fertiliser unit at Talcher”, Mr Jena told ET.

The union government already had decided to revive Talcher plant. In fact, last October the Cabinet had set up an Empowered Committee of Secretaries under the chairmanship of Fertiliser Secretary Atul Chaturvedi to come up with possible financial models for the revival of the closed plants at Talcher, Barauni, Haldia, Ramagundam, Durgapur, Gorakhpur, Korba and Sindri.

The Talcher plant had liabilities of over Rs 4000 crore and assets worth of Rs 225 crore. “The liabilities comprise of mostly loans from the government of India and interest on loans. This can be waived once all the modalities of revival are worked out. We propose to expand its capacity to 12 million ton per annum [TPA].

Commercial production of Ammonia and Urea at the Talcher unit commenced in November 1980. Urea and Ammonia plants have been designed with a capacity to produce 4.95 lakh and 2.97 lakh tpa respectively.

However production of Urea and Ammonia was first suspended from April 1, 1999 due to its economic non-viability. In 2002, it came to grinding halt after the NDA government decided to close the unit following BIFR sanction.

Last year, the union government decided to renew Talcher unit and consulted with the companies like the Rashtriya Chemicals and Fertilisers and National Fertilisers. It even decided to put in an investment of Rs 5,000 crore in the project in view of the ambitious target of production of 40 million tpa of urea by 2012.

… RCF is the only profit making public sector fertilizer company which has evinced interest to take over Talcher and Durgapur (West Bengal) Fertilizer plant for revival. In fact, the feasibility report on Talcher had already been submitted to RCF.

The revival plan included proposal to convert Talcher plant from a coal based urea plant to a gas-based urea unit with capacity to produce 2000 ton of ammonia per day. There is no problem of water in Talcher, non-availabilty of gas remains the biggest hurdle in the way of reviving the plant. There is no source of gas nearby.

The proposed gas pipe line to be laid by Reliance Industries carrying gas from Krishna-Godavari basin to West Bengal via Bhadrak in Orissa could be the solution, sources said. However, the ministry will take a final view after the consultants submit detailed report on the financial model and technological options available for the revival of the Talcher unit.

Following is from a report in Pioneer:

Union Minister of State for Chemicals and Fertilisers Srikant Jena has to push a few major projects for Orissa, feel industry watchers. One of the largest projects waiting for clearance is the Petroleum, Chemical and Petrochemical Investment Region (PCPIR) project at Paradip.

The State Government has proposed a PCPIR expecting an investment of Rs 2.75 lakh crore.

While PCPIRs have been approved for Gujarat, Andhra Pradesh and West Bengal, the fate of Orissa’s proposal for it is still hanging. The PCPIR policy, notified in April 2007, seeks to ensure adoption of a holistic approach to the development of global scale industrial clusters in the petroleum, chemical and petrochemical sectors in an integrated and environment-friendly manner.

The Government of Orissa has taken the Indian Oil Corporation Limited (IOCL) as the anchor investor. The IOCL is investing nearly Rs 30,000 crore for a greenfield refinery project at Paradip. The PCPIR proposal is, however, gathering dust in the files of the Ministry. So, it is high time Jena pushed the project to the Union Cabinet for approval by convincing the Cabinet-rank Minister MK Ajhagiri.

With this single clearance, Paradip will be in a position to attract huge investments in the petroleum, petrochemicals, fertilisers and other related areas. Similarly, Jena can push for the establishment of a NIPER (National Institute of Pharmaceutical Education and Research) in Orissa.

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.

The Anti-POSCO candidates for the gram panchayat elections have won. The details are below. I hope POSCO removes Dhinikia from its plan and both anti and pro POSCO people shun violence and illegal activities sich as blocking roads. Let POSCO be established in those areas where people want it and stay away from places where they are not wanted. Following is an excerpt from a report in orissadiary about the gram panchayat election results.

Posco Pratirodha Sangram Samiti … PPSS fielded its sarpanch candidate Mr Sisir Mohapatra and PS member candidate Mr Prakash Jena in this panchyat election. Mr Mohapatra is working as secretary of PPSS while Mr Jena has been languishing in Kujang jail since seven months after his arrest on Posco violence issue. PPSS candidate Mr Mohapatra has defeated his rival candidate Mrs Salila Nayak, wife of former sarpanch late Basant Nayak by margin 73 votes .Mr Mohapatra has got 2005 votes while Nayak has got 1932 votes.

Similarly, PS member candidate Mr Jena has also defeated his rivalry candidate Mr Nrusingh Das by 282 votes in which Jena has got 1672 votes while Mr Das has got 1390 votes. Sarpanch candidate Mr Nayak and PS member Mr Das who were defeated from this seat was backed by Posco supporters.

On the other hand, Zilla Parishad candidate Mr Saubhagaya Behera who was contesting as independent candidate has defeated his rival congress candidate Mr Rupakar Sethy by 995 votes. Mr Behera has got 6742 votes while Mr Sethi has got 5767 votes.

Following is from a report in Oil and Gas journal.

Indian Oil Corp. Ltd. has awarded a contract to Foster Wheeler Energy Ltd. and Foster Wheeler (GB) Ltd. for a grassroots refinery to be built in Paradip, Orissa state, India.

Foster Wheeler will manage the project for the major part of the development of the new 15 million tonne/year refinery and will also execute the engineering, procurement, and construction management for 15 of the key refinery process units, plus offsites, utilities, and infrastructure.

Foster Wheeler’s scope includes the crude distillation units, reforming, alkylation and butane isomerization units, plus significant offsites, utilities, and infrastructure. Commissioning of the project is expected during 2011-12.

They are:

• Approval of Chakulia-Buramarra line with an estimate of 468 crores.
• Proposal of a line via Banki for goods trains. (A line from Naraj to Banki to Khurda will form a circular Railway around greater Bhubaneswar.)

Following is an excerpt from a report in Business Standard.

Indian Railways has planned major infrastructure facilities like freight nodal points, container park and a coaching complex to cater to the proposed Petroleum, Chemical and Petrochemical Investment Region in Paradeep.

… Mr KC Jena chairman of Railway Board said that “Paradeep is poised to emerge as one of the major industrial hubs in Orissa and it is also the site for the proposed PCPIR in the state. A master plan is being prepared for the Paradeep region and according to this plan, the Railways will set up infrastructure facilities like freight nodal points, container park and a coaching complex.”

Mr Jena said that the Railways is also committed to boost connectivity in the Paradeep region which includes the 82 kilometer Paradeep to Haridaspur broad gauge line, being taken up at an investment of INR 577.78 crore. East Coast Railway has acquired 1,146 acres of private land out of the total of 1,653 acres of land required for the project. This project being implemented by Rail Vikas Nigam Limited is scheduled for completion by March 2011.

… On the 290 kilometer Khurda Road to Bolangir project, Mr Jena said that “Work is already in progress for the first 36 kilometer stretch of the project and the fund for the second phase of the project is likely to be sanctioned in this year’s railway budget.” He added that the project had suffered delay due to land acquisition problems and a fast track committee for railway projects formed under the chairmanship of the Orissa Chief Secretary was making efforts to expedite the process of land acquisition.

Mr Jena added that the overall outlay for the various railway projects in Orissa stood at INR 1,049 crore in 2008-09, compared to INR 764 crore in the previous fiscal and the sanctioned figure excludes the projects being implemented by Rail Vikas Nigam Limited.

Note, that Jajpur-Rd Duburi is also being 4-laned. With all these 4-laning, Kalinganagar area will be surrounded by four 4-lane segment: NH-5, NH-200, NH-215 and Jajpur Rd-Duburi.

(The above map fragment is from an wikipedia map.)

There will also be two four lane paths from Kalinganagar area to Rourkela.

 With approved plans to four-lane NH 42 between Angul and Sambalpur, the state govt. needs to four lane the segment between Angul and Talcher to have a seamless 4-lane transition between NH-42 and NH-200 at Angul-Talcher.

There is plan to four-lane Bhubaneswar-Puri. The Orissa government should pursue the four-laning of the following:

• NH-42 from Cuttack to Angul
• NH-23 from Talcher to NH-6

The Orissa government should team up with Jharkhand to 4-lane

• NH-23 from Rourkela to Ranchi
• NH-83 from Jamshedpur to NH-6
• NH-5 between NH-6 and Balasore (the last two need for port access in the upcoming ports in the Balasore district)

The Orissa government should team up with West Bengal, Jharkhand, Chhatisgarh and Maharashtra for four-laning NH-6 completely.

These actions will 4-lane the upper part of Orissa with fairly direct 4-lane paths from many areas of Orissa to Delhi and Mumbai. (Fairly direct 4-lane connections exist between Orissa to the south and Kolkata.)

Following is from http://pib.nic.in/release/release.asp?relid=46329.

The Cabinet Committee on Economic Affairs today gave its approval for the development of 4 laning of (i) Panikoili-Keonjhar-Rimouli, (ii) Rimouli-Roxy-Rajmundra sections of NH-215 and (iii) Chandikhole-Duburi-Talcher Section of NH-200 in the State of Orissa under NHDP Phase III A on BOT Basis.

The project cost of (i) Panikoili-Keonjhar-Rimouli section (163 km) is estimated as Rs.1170.59 crore including Rs.84.40 crore towards Land Acquisition (LA), Rehabilitation and Resettlement and preconstruction. Similarly, the estimated cost for Rimouli-Roxy-Rajmundra (106 km) and Chandikhole-Duburi-Talcher Section (133 km) are Rs.849.05 crore and Rs.969.63 crore respectively. The cost towards LA, R&R and preconstruction of other two projects are Rs.195.29 crore and Rs.185.63 crore respectively. The Government would provide the viability gap funding (VGF), which would not exceed 40% of the total project cost excluding the cost of LA, R&R and pre-construction.

The project will be developed by the National Highways Authority of India (NHAI) through the Private Sector Concessionaires who will be selected by NHAI following two stage bidding process. The first stage of the bidding process i.e. pre-qualification of the bidders has already been completed by NHAI. The second stage of bidding process is in progress.

The Concession period for the Panikoili-Keonjhar-Rimouli section will be 20 years. For Chandikhole-Duburi-Talcher Section and Rimouli-Roxy-Rajmundra section the concession period is 18 and 25 years respectively.

*****

AD/SH/LV

Following is from http://pib.nic.in/release/release.asp?relid=46317.

The Cabinet Committee on Economic Affairs today approved the project of Construction of Deep Draught Coal Berth at Paradip Port on Build, Operate and Transfer (BOT) basis at an estimated cost of Rs.479.01 crore, out of which Rs.408.90 crore will be borne by the BOT operator while Rs.70.20 crore will be borne by the Paradip Port Trust. The length of the approved BOT Coal Berth would be 370 meter, alongside depth of (-)17.1 meter which will be capable of handling vessels of 1,25,000 Dead Weight Tonnage (DWT) and will have developed stacking area of about 1,47,000 sqm. The project is to be implemented within a period of 36 months from the date of award of the concession.

The following are the benefits/results of the project:

(i) The project will help in de-congestion of Port due to handling of coal in higher capacity vessels upto 1,25,000 DWT.

(ii) Reduce Sea freight which will make imports cheaper.

(iii) Boost the industrial economy in the hinterland of Port leading to creation of job opportunities.

*****

AD/SH/LV

I believe that for Orissa to develop several urban centers and clusters need to be developed. So far many are developing. The ones marked with red are either developed or are in the path of development. The one in purple (Keonjhar) has a good chance of development. The three green ones in the big green zone, denoting Bhwanipatna, Balangir and Phulbani are in need of development. The following table lists what these various urban areas and clusters have or are going to have and what they don’t have and the govt. should make efforts to fulfill those lacunae.

As noted above, all these places should have a university, a medical college, good rail connectivity and several job centers.

Following is an excerpt from  a report in Financial Express.

The Public-Private Partnership Appraisal Committee (PPAC) on Friday approved two port projects worth Rs 1,008 crore proposed by the department of shipping, in a meeting chaired by economic affairs secretary Ashok Chawla.

The two projects, Rs 467-crore deep drought coal berth and Rs 541-crore deep drought iron ore berth, will come up at the Paradip port on a build-operate and transfer basis. The port situated near Kolkata serves the vast hinterland spread over the Orissa, Jharkhand, Chhattisgarh, West Bengal, Madhya Pradesh, Uttar Pradesh and Bihar.

"The projects will be awarded by early 2009 and the construction will be over within three years of awarding of the projects," said a top official in the department of shipping.

"The cargo, which is brought at Paradip port largely comprises coal and iron ore. Keeping this in view, the expansion aims at accommodating the extra large vessels. Dredging and construction of railway line will also be done as a part of the expansion plan," he added.

… The port registered an all-time record annual traffic of 42.44 million tonne during the year 2007-08.

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

Thinning refining margin and a global crisis notwithstanding, Indian Oil will stick to its plans to set up the proposed 15-million-tonnes Paradip refinery. The company is optimistic about completing the project at a cost lower than the estimated Rs 30,000 crore.

… “The sharp meltdown in commodity prices as well as the depression should bring down the project cost net of a devalued rupee. Thankfully enough, we are rightly poised to grab the opportunity,” a source said.

…IOC is currently in the process of awarding the PMC (project management contractor) contract. “We have started receiving quotes lower than our expectation. The trend may only get stronger six to nine months later when the actual project tendering will begin,” a source said.

“This project was planned on a long-term perspective and I see no reason to rework on it,” the IOC Chairman, Sarthak Behuria, told Business Line. He, however, did not clarify whether the project would achieve financial closure by next month as was scheduled previously.

IOC has finalised the loan and equity components for the project. Initial agreement was reached with the identified lending agencies on cost of borrowings. The loan agreements are slated to be firmed up in November.

Following is an excerpt from a report in Pragativadi.

The Supreme Court on Friday permitted South Korean steel major Posco to set up Rs 51,000-crore mega steel plant and captive minor port at Paradip in Jagatsinghpur district.

A special environmental bench headed by Chief Justice K G Balakrishnan allowed Posco India Pvt Ltd, a subsidiary of South Korea-based Posco, to go ahead with its plans.

With this order, the apex court has also cleared forest diversion proposal for the plant site which require 1253.225 hectares of forest land.

The court, while directing the Orissa government to dispose of all the Posco’s applications seeking prospecting licences within four weeks, also asked the state government to send its recommendations to the ministry of environment and forests that would proceed in accordance with law.

The bench also asked the state government to undertake implementation of compensatory afforestation plan under the supervision of a Supreme Court-appointed committee comprising top officials of the state government.

… Posco counsel Mukul Rohtagi contended that the state government-owned Orissa Mining Corporation had agreed to supply uninterrupted iron ore and other minerals for its steel project and had identified mines in the western part of the state, some 300 km away from its project site.

… The company can source raw materials on its own and can buy the same from the open market, he said, adding that the company is not dependent on prospecting licence.

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 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 Times of India.

Venezuela’s national oil company PdVSA is in talks with IndianOil Corporation for taking up to 49% stake in a 15 million tonne refinery the flagship Indian refiner-marketer is building in Orissa’s Paradip at an investment of a little under Rs 30,000 crore.

“We have received interest from PdVSA. We are evaluating the offer,” a senior company executive, requsting anonymity, said on the sidelines of the 19th World Petroleum Congress here. “We want a partner not for money but for some value. In this case, PdVSA has said it can supply Venezuelan crude to the refinery. IndianOil would look at getting at least half, or 7.5 million tonnes, of Paradip refinery’s crude requirement from Venezuela.”
…

there are other factors that could work for the PdVSA deal. Venezuelan crude is one of the toughest to process and needs refineries with high complexity ratings. IndianOil has designed the Paradip unit to accept the toughest, heaviest and the dirtiest crudes. “Our refinery will have a Nelson Complexity Index of 15,” the IndianOil executive said. Reliance Petroleum’s upcoming export refinery at Jamnagar, which is billed the most advanced, is rated at 14. Besides, India offers strategic locational advantage from where exports can even happen to as far as the US.

Following is excerpted from a report in tathya.in.

• Bhusan Steels Limited’s (BSL) 6 million ton per annum (mtpa) project, which will entail investment worth more than Rs.15, 000 crore. BSL is setting up a 3.10 mtpa steel project at Meramundali in Dhenkanal district. The company wanted to expand its capacity to 9 mtpa, but HLCA allowed a 6 million ton capacity expansion. Bhusan Energy Ltd for 2000 mw thermal power plant at one go with an investment of Rs.8483 crore.
• Essar Steel Orissa Limited (ESOL)’s 6 million ton steel complex at Paradeep and 8 million ton iron ore beneficiation plant at Joda will entail an investment of Rs.10, 724 crore
• Welspun Power and Steel Ltd’s proposal for setting up a 5 million tonne per annum iron ore beneficiation plant and 3 million tonne per annum pelletisation plant at Dhamra was also cleared.
  While the company had received approval for setting up of a 3 million tonne per annum (MTPA) steel plant at Tangi at an investment of Rs 6103.80 crore earlier, it proposed to set up a iron ore benificiation and 3 MTPA palletisation plant at Dhamra.
• SMC Power Generation Limited (SMCPGL) to expand capacity from 0.5mtpa to 1mtpa with an investment of Rs. 1366.18 crore was cleared.
• Increasing the capacity of MSP Metaliks from 0.26 mtpa to 1 mtpa with an investment of Rs.1205.80 crore received clearance from HLCA.
• 1000 mw thermal power plant by Monnet Ispat and Energy Limited (MIEL) entailing an investment of Rs.4107.04 crore.
• Jindal Photo Limited (JPL)’s proposal to set up 1000 mw in Angul district with an investment of Rs.4525 crore.
• Visa Power Limited (VPL) proposal for a 1000 mw power plant with an investment of Rs.3698 crore at one go.

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 Pragativadi.

… the new Director of Posco-India, Yong Keun Kim, is however, optimistic about his plans for downstream industries.

… His recent meeting with IPICOL managing director, Ashok K Meena, has unfolded the road map of Posco on downstream and ancillary industries.

Talking to reporters here on Tuesday, he said that Posco’s greenfield project near Paradip would create enormous opportunities for developing ancillary and downstream units close to the steel plant.

Some of the units that are likely to come up, include automobiles, shipbuilding, fishing vessel, heavy fabrication and downstream heat and coil processing, reveals the document.

There is a vast scope of indirect employment opportunity once the ancillary industries are set up in the area, the document says.

Posco has requested the state government for a piece of land near Paradip to set up the facilities.

A detailed project report (DPR) is being prepared by the company, in which investors from South Korea would join for setting up downstream and ancillary projects.

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 from http://pib.nic.in/release/release.asp?relid=36341.

As part of the on-going process of development, it is planned to construct Deep Draught Iron Ore Berth and Deep Draught Coal Berth at Paradip Port at a total estimated cost of Rs.892.60 crore. The projects are at tendering stage. Plan for Development of Southern Dock Complex at the Port is also at preliminary stage.

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.