___________

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.

Although there are tons of newsreports on the Saxena Committee report on Vedanta which quote extensively from the allegations of the committee there is very little (and mostly soundbites) from the perspective of the Odisha government and Vedanta.

The following by Nilmadhab Mohanty (a senior Fellow, Institute for Studies in Industrial Development, New Delhi) is from http://business.rediff.com/slide-show/2010/aug/25/slide-show-1-a-few-disturbing-questions-in-the-vedanta-issue.htm. I am not sure I agree with all the points mentioned below. But it is one of the few articles that is from the other side and hence worth pondering.

The decision of Union Minister for Environment and Forests Jairam Ramesh not to grant Stage II forest clearance to the proposal of the Orissa Mining Corporation (OMC) for bauxite mining in Niyamgiri in Orissa has been welcomed in many circles, in particular by the environmental activists, for the protection it will provide to an ecologically sensitive area of the country and to the Kondh tribes (and Dalits) living in the area.

There are, however a few disturbing questions that need to be answered by the ministry in order to buttress the minister’s claim that the decision was an objective one with no prejudice or politics influencing it.

First, the manner and time-line followed in the decision-making. The Orissa state government seems to have applied for final clearance in August 2009.

The Forest Advisory Committee (FAC) has been deliberating the proposal at least since November 2009. In addition to the information submitted by the State and the central government’s own agencies, it had the benefit of the recommendations made by a three-member expert group which submitted its report in February 2010.

FAC then asks for yet another committee under the Ministry of Tribal Affairs, which is the nodal agency in the central government for tribal rights. The environment minister, however, appoints his own committee (the Saxena Committee) in the last week of June 2010.

Then the pace quickens: The environment minister writes to the law ministry on July 19 to obtain the Attorney General’s opinion if the ministry of environment and forests (MoEF) apply its mind and decide in the light of the Supreme Court’s earlier decision giving forest clearance.

The AG replies promptly on the following day; Saxena submits report on August 16, FAC deliberates without much loss of time and submits recommendations on August 23, and the minister announces his decision with a 20-page reasoned order on August 24, 2010!

The must be a record in governmental working! The affected party, namely the Orissa government, is hardly given any chance to given an explanation to the MoEF.

In fact, the hapless Orissa officials seem to have met the minister on August 24 when he was in a tearing hurry to announce his decision!

Second, OMC’s proposal for forest clearance for the Niyamgiri bauxite mines is separate and distinct from Vedanta Aluminium Ltd’s (VAL) aluminum refinery project, although bauxite is meant for the refinery. Why have these two cases been mixed up in the minister’s order?

Forest clearance is a statutory requirement under the Forest Conservation Act 1980 and the FAC was deliberating on the subject on the request made by OMC/Orissa government and the minister is within his rights to act on their recommendation.

If VAL violated the conditions of its approval or even the Environment Protection Act, it could have been proceeded against separately.

After all, the MoEF’s eastern regional office had sent its communication reporting violations in May 2010. By combining the two issues the ministry gave the unfortunate impression that it was targetting Vedanta rather than dealing with forest clearance for Niyamgiri mines.

One of the major issues raised by the Saxena Committee and endorsed by the minister is the potential ecological and human costs of the mining project.

In fact, this is an issue which is relevant not so much during forest clearance procedure but more appropriately during the impact assessment study under the Environment Protection Act.

For Niyamgiri both ‘in principle’ forest clearance and environmental clearance had been given. Besides, the ‘in principle’ approval was given in October 2007, a month before the Supreme Court’s order on the subject.

Did the MoEF discover the ecological and human costs only after receiving the Saxena Committee report?

The main thrust of the Saxena Committee report and about the only valid reason for denying final forest clearance for the Niyamgiri mines appears to be the alleged non-recognition of the forest rights of the tribals and absence of consent from the concerned communities for diversion of forest land.

There seem to be a few complications on this issue. For one the Saxena Committee has given very liberal and wide-ranging definitions of ‘forest’ and ‘forest rights’ as per its interpretation of the Forest Rights Act. It is another matter that the interpretation of statutes is a responsibility of the courts, not of a committee appointed by a minister!

The Saxena Committee, for example, defines ‘forest’ to include ‘forest dwellers’ as well as ‘trees and wildlife’, literally overturning the Apex Court’s definition of ‘forest’ in the famous Godavarman case.

It also interprets communal and habitat rights of the primitive tribal groups to extend beyond their areas of residence to cover the entire eco-system.

Since the Forest Rights Act is a new piece of legislation these issues will need to be settled by the courts in due course of time, keeping in view the practicability of implementation.

In any case, the Orissa officials seem to have argued that they had complied with the legal requirements of the legislation (which, by the way, came long after the mining proposal was mooted) to the best of their ability.

Surely, Saxena and the MoEF cannot both be the prosecutor and the judge on this matter!

Also, what about development — both of minerals, which are the nation’s dormant resources, and the tribal groups, who inhabit the area?

 

From the Saxena Committee report (which is silent on this subject), it would appear that Mr Saxena would like them to continue as ‘forest dwellers’ in perpetuity so that they continue to enjoy their ‘forest rights’, living on roots and herbs and we continue showcasing their primitive tribal identity and abject poverty nationally and internationally!

Finally, what happens to the considerable investment that has gone into the industry?

Environmental and forest clearance procedures are about balancing the needs of development with those of conservation. To the extent possible the project proponents, including the state government, should be given an opportunity to correct the deficiencies. (After all it is the state government, not OMC/Sterlite-Vedanta, that has to settle the forest rights).

It is true that in extreme cases permission will have to be denied but that should have been before the start of the refinery when the required clearances were given.

To do so now will be unfair and damaging to the government’s reputation for objectivity.

Following is from Sreelatha Menon’s article in Business Standard regarding what violations the environment ministry claimed that occurred. 

The Saxena Committee has drawn up a litany of infractions at Niyamgiri by both Vedanta and the Orissa government.

The road leading up to the Centre’s denial of permission to Vedanta Alumina Ltd to mine for bauxite in the Niyamagiri hills of Lanjigarh has been lined with gross violations and misrepresentation by both the company and the state government of Orissa.

The NC Saxena Committee, set up by the Ministry of Environment and Forests, details the manner in which laws have been flagrantly flouted to facilitate a project that has been aggressively opposed by tribal groups in the area.

The panel’s findings show that the Forest Rights Act, Forest Conservation Act, Environment Protection Act as well as Panchayats (Extension to Scheduled Areas) Act, which applies to scheduled tribes covered under Schedule V of the Constitution, have been the main casualties as far as the Vedanta project is concerned.

The alleged breach of laws by the company in collusion with the state government and made possible by the Centre’s neglect resulted in the company obtaining illegal possession of 26 hectares of village forest land without ever obtaining appropriate clearances. It was on the verge of launching mining operations the moment it received forest clearance, jeopardising not only the life and culture of the indigenous tribal groups, which are protected under Schedule V, but also in contempt of a statute expressly designed to empower tribal communities: the Forest Rights Act.

Felling the Forest Rights Act: The most blatant violation, the Saxena panel states, has been that of legislation drawn up specifically to give forest dwellers a voice. It also gives them the authority to agree or not to a project that affects the forests they lived in. In the case of the Vedanta project, the law just did not seem to exist. The state government chose not to consult gram sabhas of the villages or to issue any statement on their response to the Centre.

And in spite of this, 26 hectares of forest land has been in the possession of the company’s refinery and forest clearance for more forest land was pending for the mining project.

How PESA was ignored : According to the Saxena Committee, PESA , there was scant regard for the Panchayats (Extension to Scheduled Areas ) when it came to pushing the proposed mining lease for Vedanta. Indeed, the state government blatantly violated it.

This Act requires the authorities to consult elected village bodies such as a panchayat or Gram Sabha before the acquisition of land for any development projects located in tribal territories listed under Schedule V. Authorities also have to consult the Gram Sabha or Panchayat before resettling and rehabilitating those affected by such projects. None of this was done.

Stolen forests: The Saxena report lists several alleged irregularities by Vedanta in Niyamagiri. Occupation of village forest land for the construction of its refinery tops the list. On August 16, 2004, Vedanta Alumina submitted a proposal for the appropriation of 58.943 ha of forest land — 26.123 ha to set up a refinery at Lanjigarh and the remaining for a conveyor belt and a road to the mining site. The forest lands required for the refinery, in a number of small patches, traditionally belonged to the tribal and other communities in neighbouring villages.

However, while filing for environmental clearance on March 19, 2003, the company claimed that no forest land was needed and that there were no reserve forests within 10 km of the proposed refinery. The Saxena Committee says this claim was patently false, since the reserve forests are less than 2 km from the refinery site. Even the factory is located on forest land belonging to the villagers.

The Environment Ministry accorded environmental clearance to the refinery on September 22, 2004, on the basis that the project did not involve appropriation of forest lands. Since this clearance was acquired by submitting false information, it is invalid and should be revoked, the committee headed by Saxena had recommended.

EPA violations: The report also finds the company guilty of violating mandates of the Environment Protection Act (EPA). Environmental impact assessments required under the EPA are inadequate and do not examine the full implications of the refinery and mining project on the environment, particularly those related to hydrology. The report says no effort was made in the Vedanta mining project (and aluminium refinery) to solicit the informed consent of affected villages.

It says “the required number of public hearings’’ were not held and the” Environmental impact assessments, which contain data essential for informed decision-making and consent, were not made available. Even critical information, such as the fact that the project would occupy their village forest lands, was not disclosed.’’

In a 2003 public hearing, no member of the affected Dongaria Kondh tribe was recorded as being present—a basic violation of their right to consultation and informed consent. Besides suffering from the same shortcomings as the 2003 public hearings, a public hearing in 2009 for refinery expansion distorted and reinterpreted the proceedings: the official minutes of the meeting record that the project met with widespread community support, even though only one person out of 27 spoke in favour of the project.

Violator and polluter, too: When the environment ministry granted environmental clearance to the aluminium refinery, it was subject to strict compliance and identified a list of other key conditions for management of waste from the refinery. It also required that the company strictly adhere to the stipulations made by the Orissa State Pollution Control Board (OSPCB).

But in the course of the refinery’s operations between 2006 and 2009, Vedanta Alumina repeatedly failed to adhere to these requirements. Between 2006 and 2009, the OSPCB documented numerous instances whereby the company had failed to put in place adequate pollution control measures to meet not only its own conditions, but also those of the Environment Ministry. OSPCB findings indicate that the company commenced operations without the necessary systems to adequately manage waste and pollution. Some processing and waste management systems were not built or operated in conformity with applicable regulatory requirements.

Expansion without clearance: The most shocking violation on the part of the company has been its six-fold expansion of the refinery without even obtaining clearance from the ministry. It had received sanction to set up a capacity of 1 million tonnes, but it has gone on to expand to 6 million tonnes without any approvals. This was in spite OSPCB strictures to its January 12, 2009 memo, asking the company to immediately cease construction related to expansion of the refinery as it had not obtain the required permissions, including the environmental clearance.

Tribal groups, which have been fighting on behalf of the Dongaria Kondhs, are now finding these violations, especially Vedanta’s illegal possession of 26 hectares of forest land, as the starting point for the second part of their struggle. Says Prafulla Samantara, who petitioned the Supreme Court on behalf of the tribals: “The report calls the refinery illegal and it has to go. Our fight will continue until it is shut down.” But Saxena feels that the refinery may continue and get raw material from other mines.

The violations in the case of Vedanta have been documented and accepted by the Centre, with the ministry refusing permission for mining operations in Niyamagiri. Tribal groups ask if this report and the consequences would have any implications on several other projects where similar violations have been raised to deaf ears. Forest Rights Act violations have been alleged against Posco, as well as several other mining projects, but the state and Central governments have so far shown no indication of reviewing them, says Campaign for Survival and Dignity, an umbrella group of tribal rights organisations.

•  The Saxena Committee report (pdf) is here.

   

Following is an excerpt from a report by Dilip Satpathy in Business Standard.

… Tata Steel has finally geared up to put to use its 3,200 acres of land lying idle at Gopalpur in Orissa. Playing the role of the anchor tenant for an industrial park proposed to come up on this patch of land, the company is all set to launch two projects: a 50,000 tonne per annum ferroalloys plant and 40,000 tonne per annum bar mill there.

The two projects together are estimated to cost about 1000 crore.

… "To start with, the proposed two units, the ferroalloys plant and the bar mill, will be our anchor investment. But our ultimate objective is to make this industrial park attractive for investors in the field of steel and steel downstream, speciality and bulk chemicals and engineering", said a senior official of the company.

While the ferroalloys plant will cost about Rs 200 to 250 crore, the bar mill will be set up at an investment of Rs 750 to Rs 800 crore. This will be the third ferroalloys plant of Tata Steel in Orissa. The company is operating two ferroalloys plants at Bamanipal and Athgarh (through its subsidiary Rawmet) with capacities of 50,000 tonnes per annum each.

For the bar mill, the company intends to get the ingots from Jamshedpur by rail and road. Similarly, the company will source raw material for the ferroalloys plant, which will be a backward integration project for the company’s proposed six million tonne plant at Kalinganagar, from its chromite mines in Sukinda valley. Both the units are expected to be commissioned in 30 months time.

It may be noted Tata Steel had acquired 3,700 acres (including 500 acres for the rehabilitation colony) in mid 1990s for setting up of a 10 million tonne steel plant at Gopalpur. However, it shelved the project and the land was lying vacant.

… The infrastructure for the industrial park will jointly be developed by Tata Steel and its associate company, Tata Realty and Infrastructure Ltd (TRIL). A feasibility study on the complex has been done by Ernst and Young while another internationally famed consultant, Jurong of Singapore is currently preparing its master plan. The master plan will be ready in 3 to 4 months following which the company will market the project and attract investors to set up their units in the park, said the sources.

The cost of infrastructure, which includes developing the land and providing road, rail, power, water supply facilities within the park and linking them to external sources, is estimated at about Rs 5000 crore.

This is really great for the Berhampur area. With a fabulous beach and port next door in Gopalplur, good road and rail connectivity, decent infrastructure (a university, a government engineering college, a medical college, several private engineering colleges), nearby tourist spots (such as Chilika lake), and a multi-cultural and multi-lingual population Berhampur is ready for prime time. It just needs to be marketed at a national level.

Moreover, its proximity to the Bhubaneswar area is a big plus. From Khurda Rd (the current southern edge of the greater Bhubaneswar area) it is only 147 kms. Being connected to Bhubaneswar by one leg of the Golden Quadrilateral, one can drive between the two areas in less than 2 hours. So even if it does not yet have air connectivity, its closeness to Bhubaneswar airport will come in handy.

Following is an excerpt from a report in Business Standard.

The Orissa government has allotted 110 acres of land to 55 industrial units for the proposed food processing park project being developed at Malipada in Khurda district.

“The food processing park would be developed on 162 acres of land. The state government has already allotted 110 acres to 55 units. It will invest Rs 9.9 crore on infrastructure development for this food park and out of this Rs 1.91 crore has already been deposited with the Industrial Infrastructure Development Corporation of Orissa (Idco)”, said state industries minister Raghunath Mohanty.

Besides the food processing park, the state also planned to develop a mega food park at Khurda and the proposal is under the consideration of the Government of India, the minister stated.

The mega food park project, which is to be developed on around 200 acres of land, has the potential to attract investments to the tune of Rs 2000 crore. …

The government had roped in IL&FS as a consultant to help boost investments in the food processing sector. Tenders for this project were likely to be invited by August this year. …

Pointers to previous posts on this:

• June 16 2010: More details on the role of IL&FS.
• Foodpark to come up in Malipada (Khurda) and Diagapahandi (Ganjam).

Following is an excerpt from a report in Business Standard.

… "After completing the official procedures, we will sign an MoU for the CTL project involving an investment of Rs 42,000 crore," JSPL Executive Vice-Chairman and Managing Director Naveen Jindal told reporters after a meeting with Chief Minister Naveen Patnaik here this evening.

…Stating that he discussed with the chief minister the group’s four projects comprising the Rs 52,000-crore steel plant, a thermal power plant involving Rs 6,600 crore, the Rs 42,000-crore CTL plant and an industrial complex envisaging an investment of Rs 500 crore, Jindal said a total of Rs 1,01,100 crore would be invested in Orissa over the next decade.

"We also discussed (with the chief minister) on our proposal of enhancing steel capacity from 6 million tonne per annum (mtpa) to 12.5 mtpa," he said, adding the department of steel and mines is likely to list this project for consideration of the task-force by the end of July.

Jindal said, on completion, "about 80,000 barrel of oil per day will be manufactured from the proposed CTL plant." The project is likely to be listed in next task-force meeting in July itself, he added.

… Earlier, the Tata Group, in collaboration with Sasol of South Africa, had evinced interest in setting up a similar coal-to-liquid plant in the state.

… Jindal indicated to set up the unit in Angul district where its steel plant is being built.

JSPL, which had already been alloted a coal block in the state, would complete its proposed CTL petroleum project in eight years, a company executive said, adding about 32,000 would get employment in the project.

… While many mega industries face difficulties in implementing their MoUs, the JSPL chief said his company got support of the local people in Angul district.

Besides these four mega projects, JSPL is also working on setting up an engineering college and a power training institute, Jindal said adding the company is committed to recruit local youths in its plants.

Following is an excerpt from a report in Business Standard.

The Hyderabad-based Global Hospitals Group plans to upgrade itself to a major super-speciality healthcare provider in the country. For this, it will add over 2,000 beds in five projects in various cities within three years with an investment of over Rs 1,200 crore.

… The group, which has been in existence for 12 years and focusses on super-speciality and organ transplantation,…

… The company will also set up a 450-bed hospital in Kolkata with an investment of Rs 200 crore and a 300-bed facility in Bhubaneswar by pumping in Rs 100 crore. The fifth project will come up in Chennai, for which the group will invest Rs 75-80 crore.

Following is an excerpt from a report in Business Standard.

The Orissa government today signed a memorandum of understanding (MoU) with the Ratan Jindal owned JSL Ltd (formerly Jindal Stainless Ltd) for setting up of a 1320 Mw super critical plant with Independent Power Producer (IPP) status at Luni in Dhenkanal district.

The project envisages an investment of Rs 7375 crore and it is expected to generate direct and indirect employment for 2600 persons.

The company has sought allotment of 2000 acres of land through the Industrial Infrastructure Development Corporation of Orissa (Idco).

… This would be the second major project of the company in the state. The company is currently setting up a 1.6 million tonne integrated stainless steel plant at Kalinganagar. With this, the total projected power generation from the projects for which the state government has singed MoUs has increased to 32,420 Mw.

…Energy minister, Atanu Sabyasachi Nayak said, the government expects the IPPs to be able to generate 2400 Mw by the end of this year and 6450 Mw by the end of 2012-13.

Ratan Jindal, vice-chairman and the managing director, JSL Ltd said, the group is producing about 4000 Mw power at present. This is likely to increase to 12000 Mw by 2012-13, which would put the company among the major power producers in the country.

Referring to the 1.6 million tonne per annum integrated stainless steel project being set up at Kalinganagar, he said, the first phase of 0.8 million tonne would be commissioned by the end of this year. Chief secretary Tarunkanti Mishra and other senior officials were present on the occasion.

One concern I have is the land requirement of these power plants. They should reduce this as much as possible. In this regard some pointers are:

• A 2006 NEERI report.

Following is an excerpt from a report in Business Standard by Bishnu Das.

To meet the infrastructure needs of micro, small and medium enterprises (MSMEs) on a priority basis, the Orissa government has reserved 20 per cent of the area in all industrial estates, industrial parks, industrial corridors and land banks for such units.

Further, the state-owned Industrial Infrastructure Development Corporation (Idco) will promote new exclusive zones for MSMEs in all major industrial hubs of the state.

The locations where exclusive industrial parks will be promoted include Kalinganagar, Barbil, Jharsuguda, Sambalpur, Dhenkanal, Rourkela, Baragarh, Balasore, Dhamara, Gopalpur, Chhatrapur, Raygada, Kalahandi and Choudwar.

Such exclusive zones will also come up near the Special Economic Zones (SEZs) in the state.

… The government has also decided that wherever land is provided to large and medium industries, 10 per cent of the land, subject to a maximum limit of 200 acres, will be earmarked for setting up MSMEs. This will facilitate the setting up of ancillary and downstream units, preferably in cluster mode, a source added.

… Sources said that Common Facility Centres (CFCs), to be set up by the Special Purpose Vehicle (SPV) constituted for the MSME clusters, would be entitled for allotment of land free of cost at various locations in the state.

… To provide assured sources of raw material for such units, the Orissa Small Industries Corporation (OSIC) and the National Small Industries Corporation (NSIC) will set up raw material banks.

The two organisations will act as nodal agencies for MSMEs and public sector resource companies will accord priority to OSIC and NSIC in supply of raw materials, which will be made available to MSMEs at the lowest possible rate.

Following are excerpts from a report in Business Standard.

The Orissa government has urged the Centre to develop Digha-Talsari tourism circuit to attract more tourists to these locations. It is proposed to be developed in public-private-partnership (PPP) mode.

Since the state government has already identified 700 acres of land for the project, the state has urged the Union ministry of tourism to initiate measure for the development of this circuit.

It figured in the discussion of the chief minister Naveen Patnaik with the visiting Union minister of state for tourism, Sultan Ahmad in the state secretariat today.

Ahmad is reported to have agreed to provide Central support for the international convention centre being planned in Bhubaneswar.

“The chief minister has proposed the setting up an international convention centre to attract tourists to Orissa. We will consider the proposal”, Ahmad told the media after meeting Patnaik.

… On the extension of the ‘Maharaja Express Classical India’ train to Bhubaneswar, the minister said, the ministry would consider and hold discussion on it after the state government sends its proposal.

…  Since the existing packaging of the train is for 12 days and 11 nights, it can come from Delhi via Bodhgaya-Kolkata to Bhubaneswar by extending the package to 12 days and 12 nights.

Similarly, the state government has sought the conversion of the status of Food Craft Institute at Bolangir into an Indian Institute of Health Hotel Management (IIHM). The state government would provide additional land for it. Besides, the government has also urged the Centre to set up a IIHM at Rourkela, Mishra added.

Following is an excerpt from a report in Business Standard.

Mining major Coal India (CIL), Gas Authority of India (GAIL) and Rashtriya Chemicals and Fertilizers (RCF) will come together to establish a project for producing urea and ammonium nitrate at Tachler, Orissa.

CIL has earmarked about 5.5 million tonnes of raw coal for the scheme, which once washed will come down to approximately 3.7 million tonnes of coal with less than 30 per cent ash content. Subsequently, GAIL is to gasify the fuel to produce urea and ammonium nitrate.

“The exact investment figures have not been fixed as the technology that will be utilised to produce urea and ammonium nitrate is still being studied. But an estimated few thousand crores are likely to be spent,” CIL chairman Partha S. Bhattacharyya said.

…“The joint venture (JV) has been mandated to produce a sizable amount of urea as well as 20-30 per cent of the annual ammonium nitrate requirement of CIL,” he added.

…  Moreover, the JV is expected to revive the Talcher unit of the Fertilizer Corporation of India (FCI), as the project is expected to undertaken there.

Apart from easy access to coal, the Talcher unit has other infrastructural advantages including a coal-gasification plant, a heavy water plant and an urea plant already in place.

Following is an excerpt from a report in Business Standard.

The Orissa government today signed a memorandum of understanding (MoU) with Amtek Metal & Mining Ltd (AMML), for setting up a mega auto park with an associated two million tonne per annum (mtpa) integrated steel plant and 500 Mw power plant at Tangi in Cuttack district.

The project envisaging an investment of Rs 15,820 crore, is expected to generate direct and indirect employment for 33,000 persons. Out of the total projected investment, Rs 2050 crore is proposed to be invested for mega auto park in phases.

While the total land requirement for the projects is estimated at 2500 acres, about 550 acres will be required for the mega auto park. … AMML’s project consists of ferrous foundry, steel forging plants, steel fabrication plant, open die forging plant, special fastener, aluminium die casting plant, alloy steel plant and ring gear blank plant among others. It would transfer the hot metal from blast furnace to auto park for production of auto components.

… “With the signing of the MoU, we expect greater interest from the national auto industry which will help create an auto hub in the state”, Patnaik remarked. Taori said, the company would adopt ITIs and the polytechnics in the state to impart skill training to the unemployed youth in Orissa.

Following is an excerpt from a report in Business Standard.

The state government, which acquired around 970 acres of land in the first phase for the Rs 3500-crore project, has now set in motion the process to acquire 626 acres of land for the project in the second phase.

The second phase land acquisition is expected to be completed by the end of 2010. The Shamuka tourism project needs 2500-3000 acres of land in all.

The project is being developed near Sipasarubali, about 10 km south of Puri on the public-private partnership (PPP) mode.

…  After the second phase land acquisition, the Orissa Tourism Development Corporation (OTDC) will invite fresh bids for the project. This has been necessitated as the initial attempt to invite bids for the project received lukewarm response last year.

It may be noted that only three hotel chains had participated in the earlier bidding process for developing the four five star hotels on 100 acres of land. …

The state government had engaged global consultancy firm PricewaterhouseCoopers (PwC) to incorporate some new provisions in the bid document for the Shamuka tourism project so as to make it investor friendly.

… The state government is investing Rs 50-70 crore on providing external infrastructure like electricity and water supply for the five-star hotel properties. Apart from the four five star hotels, the Shmauka tourism project would have facilities like a convention centre of international standards with a seating capacity of nearly 1,500, an 18-hole golf course, boutique hotels, international spa and wellness centres, an entertainment zone and sports facilities.

Update: Following are excerpts from another report in Business Standard which has some extra information.

The port project called Adani Kalinga Port is to be developed in two phases at a distance of three km from Jatadhari Muhan, the proposed site of Posco India’s captive port in the state’s Jagatsinghpur district.

… The proposed port which would have 12 berths in all will handle coal, iron ore, liquid and containerized cargo.

… Besides the port, the Group plans to invest in other sectors in the state like power plant, edible oils and mining.

 

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

Ahmadabad-based Adani Group is keen on setting up a large port in Orissa coast and developing an industrial zone, including a power plant, at mammoth investment of Rs 98,000 crore.

A company delegation led by its Managing Director Rajesh S Adani met Chief Minister Naveen Patnaik here and made a presentation in this regard.

The company informed the state that it was interested in setting up a 100 million tonne capacity port in Jagatsinghpur district, near Paradip Port and a proposed captive port by Posco.

With an initial investment of Rs 5,000 crore, the company has proposed to start the first phase of the Rs 10,000-crore port project in 2013-14 and complete it by 2015-16.

It also has plans to set up an industrial zone close to its proposed port in Jagatsinghpur an investment of Rs 88,000.

…The company plans to send coal after mining at Talcher area, to Gujarat and Maharashtra from the proposed port.

"The coal will be sent after washing. The washery reject coal will be utilised for the proposed power plant," a company official said. The proposed power plant would be a part of the industrial zone.

Following are excerpts from a report in Business Standard.

While MindTree expects to kick off construction work on its Rs 200-crore development centre in the city by June this year, ICICI Bank, which had sought an extension of two years for its Rs 600-crore eastern regional hub, has been asked by the state IT department to start construction work by April.

… MindTree, a global IT and R&D services company, co-headquartered in Bangalore and Somerset in New Jersey (US), had entered into an MoU with the Orissa government in March 2006 for setting up its software development centre spread over 30 acres.

…  MindTree would initially recruit about 1,000 software professionals and eventually ramp up its headcount to 6000. Its development centre in Bhubaneswar will focus on R&D, consultancy and software development.

ICICI bank’s eastern regional hub would have a built-up area of 1.5 million sq ft and it will have a pool of 15,000 employees in the long-run. The project is to be developed in phases over a period of six to seven years.

Genpact Limited, the BPO (business process outsourcing) arm of the US-based General Electric which had announced a Global Delivery Centre in the city has submitted a fresh building plan to the Bhubanewar Development Authority (BDA).

“We are pursuing Genpact’s case with the BDA to expedite the company’s project”, the official said.

Genpact’s centre in the city will have a total built-up area of 7 lakh sq ft. Initially, Genpact would hire 500 people for running its operations and eventually, the headcount will be scaled up to 3,000.

On Raheja Corporation’s IT park, he said, land has been alloted but the company is yet to take physical possession of it. Mumbai-based K Raheja Corporation proposed to set up an IT park in the city over an area of 30 acres at an investment of about Rs 250 crore. This IT park would have a total built-up area of 10 lakh sq ft and it was scheduled to be commissioned within three years. The project would generate employment for nearly 20,000 people.

K Raheja Corporation had signed a MoU (memorandum of understanding) with the Orissa government in May 2008 and the IT park was scheduled to be commissioned within three years.

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

"We had a recent review meeting on the status of DLF’s Infopark project with the company’s executive director. The real estate player is committed to kick off work on its Infopark project by April 1 this year", said Pradipta K Mohapatra, the state IT secretary.

DLF has sought some changes in the contour of the project to be developed over 54 acres near Infocity region of the city. It is keen on setting aside a greater area for non-processing facilities like shopping malls and multiplexes.

… DLF is understood to have resumed negotiations with a host of IT players- both large as well as the Small and Medium Enterprises (SMEs) for offering its IT workspace to them.

… The DLF Infopark project will be developed in three phases and it comprises an IT block, a luxury hotel, a retail chain, service apartments and recreational facilities with a total built-up space of about 5.5 million sq ft.

For setting up the luxury hotel, DLF had tied up with Hilton, an international hotel chain.

In the first phase, DLF had committed an investment of Rs 300 crore for developing an IT workspace of international standards with a built-up area of 5.7 lakh sq ft.

The first phase was scheduled to be operational within eighteen months to two years after commencement of construction work.

The Infopark project was to generate direct and indirect employment opportunities for over 40,000 people in sectors like IT and ITes (IT enabled services), retail and hospitality.

(Thanks to futureberhampur for the pointer.)

Following is an excerpt from a report in Business Standard by Hrushikesh Mohanty.

Japanese auto major Toyota Motor Corporation has evinced interest in setting up a processing plant for rare earth chloride, one of the intermediate products of monazite.

The auto major is in advanced stage of negotiations with Orissa Sands Complex (OSCOM), a unit of Indian Rare Earths Ltd, for setting up the plant near OSCOM’s site at Matikahal, near Chhatrapur, about 30 km from here. …

The rare earth metals used in manufacturing several electronics items, magnet and automobile tools are in high demand in the international markets.The officials of IREL have anticipated several other companies to come forward to set up their plants to process the individual rare earths in the area.

It may be noted that OSCOM is setting up a 10 million tonne per annum monazite processing plant within its existing unit in Orissa.

…  The monazite processing plant is expected to start production from next year. Presently the Mining and Mineral Separation (MMS) plant of OSCOM is producing ilmenite and associated minerals by processing the rare earth minerals which are abundant in the Ganjam coast. The present capacity of the MMS plant of OSCOM is 2,20,000 tonnes per annum and the capacity utilization of the plant is almost 100 per cent.

Following are excerpts from a report in tathya.in.

Odisha’s Power sector gets a relief as the first Unit of 2400 Independent Power Plant (IPP) at Jharsuguda would be commissioned in coming Summer’, he said to the media after meeting the Chief Minister.

This will add 600 MW to the state’s power production capacity and can help the State Government in facing the current power crisis. 

Mr. Agarwal revealed that construction work of world class Vedanta University near Puri has already started. 

At the first stage, the University will have a 1000 bed super specialty hospital and Medical College, also academic building. 

Vedanta Boss also informed the meeting that Lanjigarh refinery is fully operational by sourcing bauxite from other states, incurring a huge opportunity loss for both states as well as company. 

State Government has assured to look into the issue seriously and try to work out for an immediate solution. 

Construction activities for a specialized burn and trauma care centre at Bhubaneswar would begin very soon.

Following is an excerpt from a report in Business Standard.

After committing an investment of Rs 60,000 crore on various projects in Orissa including an aluminium smelter plant, an alumina refinery unit and a mega university project, London-based Vedanta Resources Plc has now evinced interest in setting up a steel plant in the state.

Vedanta plans to set up the steel plant in collaboration with engineering and construction major Larsen and Toubro (L&T).

… However, he did not provide details like capacity of the proposed steel plant, location and investment. It may be noted that in October 2004, Sterlite Iron and Steel Company, a subsidiary of Vedanta Resources, had inked an MoU (Memorandum of Understanding) with the state government for setting up a five million tonne per annum steel plant. The steel plant was to set up at Palasponga in the state’s Keonjhar district at an investment of Rs 12,502 crore. However, the project is yet to take off.

On bauxite supplies, Agarwal said, he has informed the state chief minister that Vedanta’s alumina refinery plant at Lanjigarh in Kalahandi district is operational and the company is sourcing bauxite from other states to run this refinery.

The chief minister has assured that us that bauxite supplies would not be a problem in Orissa which has the fourth largest deposits of the mineral ore in the country, Agarwal informed.

He further said the company is adhering to the environmental norms in running the Lanjigarh refinery, adding, “Our refinery at Lanjigarh is a world class refinery and it is a zero discharge and zero waste unit. …"

He pointed out that the company would commence mining operations at Niyamgiri hills in Kalahandi district after getting the environmental clearance.

Agarwal said, Vedanta has already invested Rs 39,000 crore on various projects in Orissa and these projects have generated direct and indirect employment for about two lakh people.

Vedanta Aluminium has also decided to set aside five per cent of its net profit or Rs 10 crore every year on welfare activities of the tribals of Lanjigarh. The amount will be spent on meeting the needs of the tribals in areas like education, livelihood and health.

The company will also build the hostel for the proposed engineering college of the state government at Bhawanipatna.

On the 2400 MW (6×400) power plant at Jharsuguda, Agarwal said, the first unit of the independent power project (600 MW) will be operational from the ensuing summer.

Talking on the company’s proposed university project, he said, “We have huge local support for our university project and at first we will set up a 1000 bed state-of-the-art hospital as a part of the project.” Apart from the 1000 bed hospital, Vedanta has also firmed up plans to set up a 100-bed burn and trauma care centre at Gangapada on the outskirts of the city. Construction work on this centre wold take off very soon, Agarwal stated.

Following is an excerpt from a report in Business Standard.

The first phase of the Naveen Jindal-promoted Jindal Steel and Power Ltd (JSPL)’s proposed 6 million tonne per annum (mtpa) steel project and 1000 Mw power plant at Angul in Orissa is expected to be commissioned in 2011-12.

The shifting of families to be displaced by the project was going on and simultaneously, the construction of the boundary wall had started. The detailed engineering would follow the completion of the rehabilitation and resettlement (R&R) of displaced persons and large scale construction would be taken up after that.

“We plan to start large scale construction work in January next year and the first phase commissioning is scheduled to be in 2011-12”, Rajesh Kumar Jha, executive director, JSPL told Business Standard.

He said, out of three villages to be shifted completely for the first phase construction, two villages had been rehabilitated completely. The remaining village would be rehabilitated by December this year. The company’s strategy of combining the project economy with the rehabilitated family’s economy has gone down well with the people. …

… the company had placed orders for civil and structural works worth Rs 1584.57 crore which was 60 percent of the estimated costs. Similarly, orders for plant and equipment worth Rs 4,034.34 crore had been placed which was about 35 per cent of the total estimated costs of plant and equipments.

The total cost of the project is Rs 22,420 crore with the first phase investment pegged at Rs 13,000 crore. The project has already attained financial closure and will have a 60:40 debt-equity ratio. While the debt component will be Rs 8,958 crore, the equity is Rs 13,452 crore.

…  While the company requires 5,279 acres for the steel plant, about 3000 acres have been acquired so far. The acquisition of additional 707 acres of private land is likely to be over by the end of this month.

Following is an excerpt from a report in Business Standard.

… Projects awaiting the chief minister’s nod include those proposed by National Thermal Power Corporation (Rs18,000 crore), L&T-Dubal (Rs 19,668 crore) and Lanco Babanh Power (Rs 11,402 crore) among others.

… The SLSWCA in its meeting held in March 2007 cleared the Rs 4232.54 crore investment proposal of Ashapura Minechem Ltd for setting up of a 0.5 million tonne per annum (mtpa) alumina refinery and 0.15 mtpa smelter with 300 Mw captive power plant (CPP) in Koraput district.

Similarly, NTPC proposal to set up a 3200 Mw thermal power project at Darlipali in Sundergarh district was approved by the SLSWCA in February 2008.

The fate of L&T’s proposal to set up an alumina-aluminium complex at Kusumsila near Rayagada and Vadrapali near Sambalpur in joint venture with Dubal is still uncertain.

Sources said, the HLCA is yet to consider the Rs 8,250 crore investment proposal of Orissa Thermal Power Corporation Ltd (OTPCL) to set up a 2000 Mw coal based power plant at Rengali. It is also yet to take up the Lanco Babandh Power’s application to enhance the MoU capacity from 1320Mw to 2640 Mw at Kurunti and Kharagprasad in Dhenkanal district.

The Rs 3101.86 crore proposal of Tata Sponge Iron to set up a 1.5 mtpa steel making capacity at Beliapada near Joda, recommended by the SLSWCA in May this year, is also pending for approval by the chief ministers.

… Though VAL had proposed to expand the capacity of its existing refinery at Lanjigarh from 1 mtpa to 6 mtpa, smelter plant capacity from 0.25 mtpa to 1.6 mtpa and the captive power plant (CPP) capacity from 674 Mw to 1350 Mw with a combined investment of Rs 37,440 crore, it was cleared in part by the SLSWCA.

The SLSWCA meeting held in May this year had recommended for a smelter capacity of 0.5 mtpa as the company had already achieved this level while approving the capacity expansion of the CPP to 1350 Mw without any increase in the refinery capacity.

Similarly, Hindalco Industries Ltd (Aditya Aluminium) had proposed to expand its alumina refinery capacity to 1.5 mtpa from 1 mtpa and expansion of its smelting capacity to 0.72 mtpa from 0.26 mtpa along with an increase in the CPP capacity to 1650 Mw from 650 Mw.

SLSWCA has only recommended a marginal increase in the smelting capacity from 0.26 mtpa to 0.36 mtpa and CPP capacity from 650 Mw to 950 Mw to the HLCA. Partial approval of these proposals was officially attributed to the non-availability of bauxite linkage and pending the final report of the environmental carrying capacity study taken up by the Orissa State Pollution Control Board.

That apart, the SLSWCA in its meeting on 26 August 2009 also recommended two projects of Rs 14,275 crore to HLCA. The Rs 7988 crore proposal of JR Powergen Private Ltd to set up a 1980 Mw power plant at Kishorenagar near Angul and BRG Energy Systems’s proposal to set up a 1320 Mw power plant at an investment of Rs 6287 crore at Bhapur in Nayagarh district are yet to be approved by HLCA.

Following is an excerpt from a report in Business Standrad.

Indian Oil Corporation Limited (IOCL), the country’s largest oil marketing company is exploring the possibility of setting up a wind mill in Paradeep (Orissa). The wind mill is likely to be operational either in or after 2012. …

The company has already set up two wind mills in Gujarat and Tamil Nadu”, V Ramgopal, general manager (marketing), IOCL told reporters here.

… IOCL was planning to set up a new depot at Jharsuguda in western Orissa at an investment of about Rs 100 crore. The proposed depot would have the capacity of around 60,000 kilo litre (KL).At present, the company is scouting for 35-40 acres of land for this modern depot. Plans are also afoot to deepen the reach of LPG cylinders among the people in Orissa.

Presently, only 18 per cent of the state’s population has LPG connections and we are aiming to extend the LPG connections to 50 per cent of the population within the nest two years, Ramgopal informed.

IOCL was planning to launch the LPG Gramin Vithark scheme in the state to reach out to the rural customers.

About eight lakh people in the state have LPG connections with Hindustan Petroleum being the market leader in this segment with 4.2 lakh customers followed by IOCL at 3.6 lakh, said Ramgopal.

Following is an excerpt from a report in Business Standard.

The State Level Single Window Clearance Authority (SLSWCA) headed by the chief secretary Ajit Kumar Tripathy today cleared five projects worth Rs 2807.7 crore.

…out of the 12 proposals considered by SLSWCA, the proposal of Bhubneswar Power Private Ltd for setting up of a 2X67.5 Mw CPP was deferred. The energy department has been asked to consider the proposal from the policy point of view.

Two major investment proposals by Vedanta Aluminium Ltd (VAL) and Hindalco Industries were partially approved in today’s meeting due to non-availability of bauxite and pending the environmental carrying capacity study by the Orissa State Pollution Control Board.

VAL had proposed to expand the capacity of its refinery at Lanjigarh from one million tonne per annum (MTPA) to 6 MTPA and the smelter plant capacity from 0.25 MTPA to 1.6 MTPA. Besides, the capacity of the CPP was proposed to be raised from 674 Mw to 1350 Mw with a combined investment of Rs 37,440 crore.

The company had signed MoU with the Orissa government for the present capacity at an investment of Rs 12,400 crore. However, SLSWCA only recommended for a smelter capacity of 0.5 MTPA as the company had already achieved this level. It also approved the capacity expansion of the CPP to 1350 Mw as sought by the company. The additional smelting capacity will be considered only after ascertaining the availability of bauxite and receipt of the OSPCB study on environment. Similarly, Hindalco Industries Ltd (Aditya Aluminium) had proposed to expand its alumina refinery capacity to 1.5 MTPA from 1 MTPA at present.

Along with this, the company also sought expansion of its smelting capacity to 0.72 MTPA from 0.26 MTPA and increase in the CPP capacity to 1650Mw from 650 Mw.

SLSWCA has decided to recommend a marginal increase in the smelting capacity from 0.26 MTPA to 0.36 MTPA and CPP capacity from 650 Mw to 950 Mw to the HLCA.

It also put conditional approval to the proposal of the Tata Sponge Iron Ltd. to set up a 1.5 MTPA steel making capacity along with a 52 Mw CPP at an investment of Rs 3101 crore. While the existing sponge capacity of the company is 0.39 MTPA, it had sought to expand its capacity by 0.45 MTPA to 0.84 MTPA.

Similarly, the company proposed to set up one MTPA blast furnace and 1.6 MTPA pellet plant in a separate location in Keonjhar district. It will have to increase the steel making capacity first and after that the increase in the sponge making capacity will be allowed.

The other projects which were approved include 4 MTPA iron ore beneficiation plant at an investment of Rs 360.85 crore to be set up by Kolkata based Rashmi Metaliks at Nayagarh in Keonjhar district.

Similarly, the Rs 624.7 crore investment proposal of Rungta mines, Shyam Steel Industries proposal for setting up 2 MTPA iron ore pelletisation plant were cleared by the SLSWCA. Besides, the Toshali Cement’s proposal to expand its capacity to 2100 tonne per day from 600 tonne per day along with 3.96 lakh tonne per annum grinding unit at Choudwar was also approved.

The proposal of Orissa Thermal Power Corporation, a joint venture between Orissa Hydro Power Corporation (OHPC) and Orissa Mining Corporation (OMC) to set up 2000 MW power plant at Rengali at an investment of Rs 8250 crore also received the nod of the committee.

Jindal India Thermal Power’s proposal to increase the capacity from 1200 Mw to 1800 mw and Lanco Bhawan Power’s proposal to increase its capacity to 2640 Mw from 1230 Mw were approved for recommendation to the HLCA on the basis of strong recommendation of the energy department.

In another significant decision, SLSWCA decided not to allow any more cement plant in the state except Malkangiri district as the state does not have sufficient amount of limestone.

Following is from a report in Business Standard.

The joint venture (JV) Company formed between the state owned Orissa Mining Corporation (OMC) and Sterlite Industries India Ltd (SIIL) for mining of bauxite in the Niyamagiri hills in Kalahandi district will be incorporated as a Private Limited Company soon.

.. “The draft memorandum of association (MoA) and Articles of Association (AoA) of the new company has been submitted to OMC for approval. The incorporation of the JV company will be completed shortly after the approval”, P K Panda, vice-president (mines), Vedanta Aluminium Ltd.(VAL) told Business Standard.

The process of incorporation of the Joint Venture company named as “South-West Orissa Bauxite Mining Private Ltd.” has been set in motion after the signing of the modified JV agreement between SIIL and OMC in February this year, paving the way for start of bauxite mining in Niyamgiri hills near Lanjigarh.

Meanwhile, the special purpose vehicle (SPV) namely ‘Lanjigarh Scheduled Area Foundation’ has already been formed and SIIL has deposited Rs 20 crore up to 2008-09 with the SPV for overseeing the all-round development in the Lanjigarh area.

Supreme Court in its judgement on 8 August 2008 cleared mining of bauxite in the Niyamgiri hills located in the Kalahandi district by SIIL following affidavits filed by SIIL, OMC and Orissa government accepting the rehabilitation package suggested by it on 23 November 2007.

While the company has deposited Rs 12 crore for tribal development, another Rs 10 crore is proposed to be deposited with the SPV during 2009-10. As part of its plan for the overall development of the area, the company also intends to provide connectivity to all the villages of Dongria Kandh, which are remotely located.

This is in line with the 5-year development plan drawn up for these villages by the Dongria Kandh Development Authority (DKDA).

Regarding the JV agreement of Vedanta Aluminium Limited (VAL) with OMC for getting the raw material linkage, the apex court had stated that since Vedanta Resources Plc is not an indian company, it will not have any objection if the its indian subsidiary (SIIL) is made the JV partner of OMC.All provisions of the supreme court judgement were incorporated in the modified JV agreement signed by OMC and SIIL

It may be noted, VAL, a Sterlite group company, signed the JV agreement with the OMC on 5 October 2004, for developing bauxite mines at the Niyamgiri hill near Lanjigarh in Kalahandi district and the Khambasi hill in the adjoining Rayagada district. The bauxite was to be used for use in its one million tonne alumina refinery at Lanjigarh.