___________

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

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

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

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

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

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

The following information regarding R & R offered by TATA steel at Kalinganagar is from a Tata Steel brochure that they give me. If there is any inaccuracy in it or if similar packages are not being offered by Tata Steel to others in Kalinganagar please let me know.

[Context: After I had written an open letter regarding how Tata Steel is exploiting Orissa and yet referring to it as marriage between Tata Steel and Orissa, they got in touch with me in December 2006 when I was visiting Bhubaneswar. Although I am still unhappy with Tatas overall (as they have not done much on the issues I mentioned in the open letter), I personally think the following is a decent package and I hope other steel and aluminum companies such as POSCO, Mittal etc. use this R & R as a starting point.]

The R & R parameters used by Tata Steel:

1. Famiy definition: All major sons as on 1st January 2005 to be considered as separate famiy for R & R benefits.
2. Plot in the Rehab colony: One homestead plot per expanded family. Each original family would get about 3 to 7 plots.
3. House building assistance: Rs 1.5 lakhs per expanded family (as per the new definition). Each original family would get about Rs 4.5 to 10.5 lakhs
4. Temporary accommodation: Rs 0.1 lakhs per expanded family. In addition, providing immediate shelter during construction of their houses at a cost of about Rs 10 crores.
5. Transportation assistance: Free transportation of all househod materials, cattle etc.
6. Employment: One nominated member from each expanded family. i.e., providing more than 1200 jobs for 679 original families. Cash-in-lieu (rs. 2 lakhs per family) for the older people upon their choice. Engagement provided during the construction itself.

An example scenario: Family of late Sukura Soren. Hamlet: San Chandia. Mouza: Chandia.

1. Family Tree: Late Sukura Soren owned 2.79 acres of land including house site. He had three sons: Late Abhiram Soren, Madhu Soren (71) and Sinu Soren (60) . Abhiram Soren is survived by wife Tulasi Soren (56) and four sons Mansingh Soren (33), Mataram Soren (30), Manika Soren (25), Rajen Soren (43). Son of Rajen Soren is Ghana Soren (19).
2. Number of expanded families = 8.
3. Compenstation for two houses: Rs 0.74 lakhs
4. Land Compensation: Rs 2.79 lakhs
5. 8 numbers of 1/10th acre plot in the rehab colony worth – Rs 4.0 lakhs
6. Total house building assistance – Rs 12.0 lakhs
7. Temporary accommodation assistance – 0.80 lakhs
8. Transport allowance – Rs 0.16 lakhs
9. Maintenance allowance – Rs 1.92 lakhs
10. Cash in lieu of employment for 3 persons – Rs 6.0 lakhs
11. Total employment – 5
12. Total Cash benefits – Rs 28.41 lakhs

New Indian Express reports Vasant Scribes coming to Bhubaneswar to provide training and employment opportunities. Following are excerpts from that report.

Leading medical transcription company in India, Vasant Scribes is set to provide training to the unemployed youth of the State to join the field even as it has commenced commercial operations from its Bhubaneswar facility at STPI here.
The company which, at present, has 35 medical transcriptionists intends to expand the facility to over 300 within one and half years. And the bulk of the staffers would be the youths who successfully complete the training.

… The company has applied for one acre of land in the Infocity and has submitted the building plans and layout to the Government.

… But in a stark departure from prevailing practices, the training would not only be imparted free of cost but the trainees would also be given a handsome stipend.
Eligibility would be Plus II pass, preferably with a science background.

… Headquartered at Hyderabad, the company employs over 500 personnel in the city.

Often many well-meaning people read about a particular R & R package for one location in one state and then compare it with R & R package and/or land prices offered in another state, in our case Orissa, and start making wild allegations that the Orissa government is incompetent in getting a good deal for its people or the company or foundation that wants to set up something is evil etc. etc. To make the obvious point, obvious to anyone who thinks rather than is driven by his/her preconceived ideology, that land prices vary across different locations in India, following are some data points.

(i) Hindu and Pioneer report about the Brahmani steel plant coming up in Jammalamadugu in Andhra Pradesh. There the Andhra Pradesh government has procured land at Rs 18,500 per acre for the steel plant which will need 10,640 acres. The government has also promised allotment of 3000-4000 acres for an airport at the price of Rs 9,000 per acre. The exact quotes from Pioneer are as follows.

The plant, to come up on an area of 10,640 acres, will be the second biggest plant after the Visakhapatnam steel plant making Andhra Pradesh the biggest steel producing State in the country. …

The Chief Minister denied any favouritism in providing land to the project and said that prices higher than market price was paid for the land. “The land has been purchased at the rate of Rs 18,500 per acre which is the highest in the district,” he said.

The quote from Hindu is as follows:

Announcing that BIL Managing Director Janardhana Reddy, an MLC in Karnataka, had agreed to construct a commercial airport nearby, he promised allotment of 3,000 to 4,000 acres of land at Rs. 9,000 per acre, half the price charged for land given to the steel plant.

(ii) On the other end of the spectrum following is an excerpt from Moneycontrol on land prices and compensation offered for land in Dankuni near Kolkata.

Construction giant DLF has offered to pay a whopping 55 lakh rupees an acre for acquiring close to 5,000 acres near Kolkata.

Never before has any company paid so much. Even the government paid up to 14 lakh rupees an acre in Singur, which is 20 kilometers away. DLF proposes to build an integrated township and a 100-acre SEZ. And the rehabilitation package it has promised, is awesome – guaranteed employment, alternative housing, education and even healthcare facilities for displaced farmers.

So what is our point? and Why is it relevant to Orissa’s growth and infrastructure development?

There are several land acquisitions going on in Orissa with respect to industries (POSCO, Tatas etc.), for Vedanta University, for various rail and road projects, etc. So when you come across a price or compensation package in another state and it does not gel with some other packages in Orissa that you have read about, please investigate more before getting all riled up and accusing the Orissa govt., its ministers, its bureaucrats, or the companies. They may as well be at fault, but please do research before deciding on it and shooting off emails or postings, as the above data points make it clear that land prices vary quite a lot among different locations in India.

Another point we want to make is that, Orissa has to balance between getting the best deal for its people (beyond the market price) and losing the project to another state. Again, the data point shows that there are other states who can offer very cheap land price and if Orissa asks too much (beyond the market price) then there is a real risk of losing the project. In case of steel and aluminium project, losing the project and consequently delaying in allotting certain mines may also mean that the mines may be allocated by the central govt to out of state companies. As a result Orissa will lose out on the value addition and on the infrastructure (such as roads, railway links, ports, townships, etc.) that are associated with large steel and aluminum plants.

A suggested approach to get the best deal for people (beyond the market price) losing their land is to have a central R & R policy that every state must follow, so that they don’t compete on the basis of who can offer the cheapest (relative to the market price of that particular location) land price and R & R. This can also be achieved if the relevant states (Orissa, Chhatisgrah, Jharkhand, etc.) agree on a common policy. (Sandip Dasverma, a friend, has often mentioned the later.)

[Acknowledgments: Deba Nayak of ornet for pointing to the Pioneer article in ornet. Participants of Orissa Today google group for engaging in multiple debates on this issue.]

Business Standard in an article in April listed several infrastructure related projects that Orissa is planning using PPP. Following are excerpts from that article.

… the Orissa government has lined up 18 new projects in the Public Private Partnership (PPP) mode entailing an investment of over Rs 6000 crore.

Of the 18 projects, 12, mostly large and medium, have already been consolidated with investments of Rs 3500 crore.

Another six projects, fairly bigger in respect to the previous ones, are under active consideration and would cover an investment of around Rs 2500 crore, according to government sources.

Source said, till date, an around Rs 5300 crore investments have already been lined up and are under implementation in the PPP module in 12 odd projects across the state.

In all the Orissa government plans to develop 30 odd projects in different sectors in the PPP module over the next two years covering an investment of over Rs 11,300 crore. …

The PPP modules currently under implementation and those under consideration cover a wide range of activities starting from port cuilding, railway line construction, road development and erection of urban clusters. …

The new projects being considered under the PPP module included development of road links in the Capital Region Ring Road, the Bhubaneswar-Paradip Road, the Suakati-Dubuna Road and the Tensa-Barsuan-Lahunipada Road.

These would entail a primary investment of Rs 1547 crore for the development of 279 kilometres of road, including a four-laning of the first one.

Other than this there would World Bank identified projects where four laning would be done of the Sambalpur-Rourkela road from the existing two-lane road.

The long pending Joda-Bamebari Road and Koira-Rajamunda Road covering 229 kilometres would also be taken up.

The PPP module would be used for two vital rail links. The first was the Angul-Duburi-Sukinda rail link and the second the Gunupur-Theruvali link. In both cases, the Special Purpose Vehicle ( SPV) route was being proposed. The investment for the rail links was estimated to be in the region of Rs 570 crore. The Angul-Sukinda rail link would be of 90 kilometres and the Gunupur-Theruvali link would be 79 kilometres.

PPP’s for setting up Bio-tech parks, SEZ for IT/ITES companies and integrated commercial and residential complex, an enclave at Shahidnagar are were also part of the city building endeavour of the Orissa government.

This apart, a commercial shopping complex and an A.C.Market complex at Unit IV are also being contemplated in the PPP mode as part of city development plan.

Till date, investment for the SEZ for IT/ITES companies had been identified and were estimated to be in the region of Rs 35.67 crore. As for the other residential and commercial complexes, project details and cost were being worked out on a war footing.

Coupled with these, a multi-product SEZ at Paradeep had been suggested by the government for development using the PPP route. It was expected to entail an investment of Rs 712 crore.

Land of around 1093 hectares would be needed for the SEZ in the Marshagahi Tehsil of Kendrapara under Paradeep.

This article is probably based on a presentation available from the Orissa govt. website. That file seems to be corrupt but its google cache shows part of the information.

Reader Martand Deo suggests that there should be attempt to build the Khurda-Balangir line through PPP similar to the way the Hasan- Mangalore Rail Line is being built. His points are:

1. With the active initiative of Karnatak State Governament Hassan Mangalore Rail Development Company Limited (HSMDC) is formulated, along with this New Mangalore Port and Mineral Enterprise Limited, K-RIDE joins the hand to move this project forward, with the stake as follows

a. Government of Karnataka 40%
b. Ministry of Railways 40%
c New Mangalore Port Trust 9%
d. Mineral Enterprises Limited 9%
e. K-RIDE 2%

2. To have a better representation and smoother functionality HRMDC comes up with one Chief Executive Officer and assisted by Professional Board of directors from Government of Karnataka, Ministry of Railways, participant companies and other users of that
region .

3. This Rail Line also have greater challenges, which crosses Western Ghats passes through 55 kms of ghat section, on construction activities, train operations and maintenance of the
line, but a greater will power of karanatak finally made it.

4. Govt. Of Orissa is spending a lot in the name of KBK development, if it Could allocate some fund for this rail line, the development can be much more than the current trend, As the recent World Bank Survey says if one rupee is invested in terms of road, Rail infrastructure development, poverty elimination can be done 7 times better than others.

5. For details how Hasan- Mangalore rail line project is implemented, the following web Site can be visited. http://www.hmrdc.com/

I do not know about Karnataka, but the government of Orissa is involved in several Railway line construction through PPP. The two that are approved and underway are Haridaspur-Paradip and Angul-Sukinda. Then in their priority would be Gunupur-Theruvali (for shorter access to Gopalpur port), Bhadrakh-Dhamara (being built by DPCL), Gopalpur port connectivity and Vedanta University connectivity; followed by any other port connectivity for any other port that gets built such as Kirtania, Astarnga etc. Regardless, some way has to be figured out to get Khurda-Balangir connectivity done as soon as possible. A Business standard article in April lists some of the PPP driven plans of Orissa government.

Economic Times reports that Pentasoft plans a multiplex in Bhubaneswar and other cities. Following is an excerpt from that report.

As part of its expansion plans, the company has chosen Coimbatore, Hyderabad, Bhubaneswar and Mysore for the projects, which would have resorts, theme parks, children games and go-carting, Pentasoft CEO Hariharan told reporters here.

The multiplexes would be ‘replicas’ of the one in Chennai, ‘Mayajal’, he said.

A review of Mayajal in Chennai is at this site.

Deepikaglobal reports that Hilton plans to open a Hilton Hotel and a Homewood Suites in Bhubaneswar. Bhubaneswar already has a Trident Hilton. Following is an excerpt from that report.

Speaking to mediapersons here today, DLF Home Developers Ltd Chief Financial Officer Surojit (Babu) Basak said, ”We plan to open two hotels under Hilton brands–Hilton Garden Inn, amid market segment hotel, and Homewood Suites, which are service apartments, entailing an investment of around Rs 500 crore. The hotels would have 600 rooms altogether. … The hotels would be operational in three years, he added.

The US-based Hilton Hotels is looking at ten-fold increase in the number of hotel property in India. Hilton Hotels would also open hotels in Delhi, Mysore, Bhubaneswar, Bangalore, Hyderabad, Goa and Kolkata. Homewood Suites, the longstay brand in Hilton’s portfolio, would debut at Kolkata, Bhubaneswar and Hyderabad.

A 3 week old Business standard article talks about the mall, multiplex and real estate scenario of Bhubaneswar. Following are some excerpts from that article.

Abhijit Das, regional director at property consultants Trammell Crow Meghraj, informs that there are 4-5 malls being planned in the city, most of them in the newly developing Chandrashekharpur area. ….

Looking at the maturing consumer, Saraf is planning a 5,00,000 sq ft mall on 5.5 acres of land which in all probability will include the city’s first multiplex, a large plaza and a 100-room, three-star hotel on top. …

Another retail mall project, also on the larger side, is the 6,00,000 sq ft Junction Mall from Bengal Shrachi Housing Development (another Kolkata-based company), coming up in the Jaidev Vihar area en route to Infosys City.

The company’s MD, Rahul Todi, says this will be the city’s first organised retail destination. Set to cost around Rs 120 crore, it will launch later this year (October-November). South Africa’s Bentel will be the architects on this project, and it will boast of a two-level car parking in the basement. …

There is quite a bit of short supply in the quality residential segment in Bhubaneswar, according to Anup Mohapatra, president, Real Estate Developers Association (REDA).

He points out that over the last two years, rates in the city have increased at least four-fold. There is demand for high-end residential property in the city, most of which is coming up towards the new IT developments taking place near Chandrashekharpur. If, for instance, the demand today is for 100 homes, the supply is lagging far behind at only 10-12 at the moment, he says.

For some Kolkata-based companies, Bhubaneswar is almost like an extension of their home ground and makes an attractive investment alternative. No wonder that apart from just malls, Todi is also planning to launch a high-rise, high-end residential project with 550-600 apartments spread over 14 acres. Situated on the Cuttack-Bhubaneswar National Highway, Neo City will have a club, swimming pool, and other lifestyle amenities.

The Sureka Group, which bought a 10-acre plot in Bhubaneswar recently, is also looking at a high-end residential development. Its MD, Pradeep Surekha, informs that the company is trying to procure more land at the same place.

We are looking at a total of 20 acres for the Rs 400 crore residential project, he confirms. He is also eyeing the growing organised retail demand in the city. The Surekha Group is planning a 5,00,000-6,00,000 sq ft mall but if it gets suitable land at the right place (at least 10 acres), a mall might be developed on 1 million sq ft space. Such is the scope for retail in the city, he explains.

NDTV reports discovery of gas and oil in the Mahanadi river basin. Following is an excerpt from that report.

Oil and Natural Gas Corporation (ONGC) has made five oil and gas finds in eastern offshore and north-east, the most significant being a gas discovery in the Mahanadi basin block where 3-4 Trillion cubic feet of gas reserves have already been established.

“ONGC made second discovery in Mahanadi basin in MN-DWN-98/3 block in east coast of India about 60-km off Paradeep coast in Orissa,” the company said.

The well MDW-4A at a water depth of 1,087 meters produced gas with a high flow potential from a depth of 1,800 meters. The state-run firm has 100 per cent interest in the block it won in first round of New Exploration Licensing Policy.

The company has so far drilled five wells in Mahanadi Basin and made the first discovery in 2006. It, however, did not say the reserve potential in the new discovery.

“This is again a new discovery and potential of the field is being assessed. The flow rate of oil is highest among the discoveries in North-East. Oil is of very good quality sweet crude with API gravity of 33 and pour point 300 degree Celcius,” it said.

Anubhuti Bishnoi in Indian Express reports on the progress towards making a 2-lane Ranchi-Vijaywada highway zig-zagging through 1219 kms of Orissa and passing though most of its tribal districts, many of which are naxalite infested. The article has a nice map showing which towns the road will pass through in Orissa. Following are some excerpts from that article. (Thanks to Manoj Sahu in Africa for mentioning this article in Agami Orissa.)

At a recent meeting chaired by Prime Minister Manmohan Singh, the Ministry of Shipping, Road Transport and Highways was asked to expedite finalisation of the Detailed Project Report (DPR) for the Vijayawada-Ranchi corridor cutting through Orissa, and take it up on a priority basis. … Around 1,219 km of the 1,729-km corridor planned between Vijayawada and Ranchi will fall in Orissa, and the state government had requested that its state highways, district and rural roads be incorporated in the corridor. Now 235.8 km of national highway sections, 878 km of state high ways and 104.5 km of rural roads will be a part of the corridor. The road from Vijayawada enters Orissa at Motu in Malkangiri district and leaves at Tiring in Mayurbhanj district on the north. … While the Ministry may not call the stretch NH as yet, with the Prime Minister taking a keen interest, it is set to be developed as per national highway standards. What that means is that tribal areas of Koraput, Malkangiri, Rayagada, Gajapati, Ganjam, Kandhamal, Anugul, Sambalpur, Deograh, Keonjhar, Mayurbhanj and Boudh, currently insurgency hotbeds, may emerge out of the hinterlands. Confirming that the project had been put on the fast track, a senior Ministry of Shipping, Road Transport and Highways official said: “The DPR of the corridor is underway and should be ready in six-seven months.”

Note: As mentioned by Digambara a map of the route is at http://tathya.in/story.asp?sno=592. I removed the faulty map that Indian Express printed.

Many may not know that to the west of Bhubaneswar lies the Chandaka widlife sanctuary with varieties of flora and fauna. This sanctuary is considered as the lungs of Bhubaneswar. Today’s New Indian Express has an article about this. Following are some excerpts.

The sanctuary is perhaps among the few in the country which boasts of a treasure trove of flora and fauna excepting the royal Bengal tiger. The coastal range of sal forests also end here with an intimate mix of evergreen and deciduous elements.

According to divisional forest officer (DFO) Akshaya Kumar Pattanaik, though elephant is the flagship species, two types of monkeys, three deer species and three other herbivores, nine types of carnivores including the panther, two types of civets, tree shrew and pangolins are spotted.

Also the sanctuary is home to 21 types of snakes, 16 lizards, one species of turtle and marsh crocodile. The avian types include 174 with 10 species of water fowl and waders, seven ground nesters, seven raptors and 17 song birds.

The elephant population (65 in 2006 census) is seen in group sizes of 18, 13, 8, 7, 5 and 4. Even joining of three or four family groups were also observed aggregating to a herd size of 38 at Bharatpur in the past.

Orissa tourism has a nice page on Chandaka. Following is a map of Chandaka from that site.

Myiris reports that the Mumbai Based company HCC has reported receiving a letter of acceptance from TISCO. Following is an excerpt from their report.

Mumbai-based Hindustan Construction Company (HCC) said Thursday that it received a letter of acceptance (LoA) from The Tata Iron & Steel company, Jamshedpur, for execution of civil works for Kalinganagar project in Orissa. The value of the contract is Rs 1,677.6 million.

Dharitri reports that Baji Rout bridge across Brahmani river connecting Mandara Ghat of Gandia block of Dhenkanal district with Nilakanthapur of Bhuban block is in the process of being built with the help of NABARD which has already approved a loan of 17.71 crores. The process to float a tender is on and soil tests etc. have been carried out.

• Balasore and Baripada lobbying for medical colleges
• One year P.G. Diploma in Banking and Insurance Management: From Utkal University in collaboration with ICICI bank
• Careerpoint claims that 21 out of 55 succeeded in IIT JEE
• A pre-advertisement from Sri Sri University
• Chennai Business School forays into Bhubaneswar
• Sri Sri University project: a powerpoint presentation
• Latest status of WODC related private medical college in Rourkela
• Ads for IIT JEE, AIEEE, Orissa JEE and Medical coaching classes
• Plus two options in Berhampur
• Telegraph writes about progress and obstacles in making the Capital Hospital a medical college
• PM: Each state will have a central university
• Bhubaneswar based Institute of Medical Sciences and Sum Hospital get nod for MBBS programme from 2007-08
• Tathya.in has a hard hitting article on the IIT issue that blames the Congress leaders for their ineptitude
• Cabinet approves new scholarship scheme for tribals

The Economic Times reports the allocation of coal blocks in Orissa to various power generation companies across the country. Following is an excerpt from that report.

The Damodar Valley Corporation (DVC) has been allocated Saharpur Jamarpani block having 600 MT reserves in Jharkhand and two blocks in Manoharpur with 531 MT in Orissa for the Orissa Power Generation Company (OPGENCO).

The Naini coal block in Orissa (500 MT) has been allocated to Gujarat Mineral Development Corporation and Pondicherry Industrial Promotion and Development Corporation, the official said.

Moreover, two blocks at Chandipara in Orissa (1,589 MT) has been allocated to Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd, CMDC and Maharashtra State Power Generation Company, the official said.

He said the Baitarani West block in Orissa (602 MT) has been allocated to GPCL, OHPGCL and KSEB while Mandakini B block also in Orissa (1,200 MT) has been allocated to Tamil Nadu Electricity Board, Assam Mineral Development Corporation, Meghalaya Mineral Development Corporation and Orissa Mining Corporation Ltd.

The above allocation is done by the Coal ministry in Delhi. Although the coal mining will add to Orissa’s revenue through royalty, a big concern is the low rate of royalty fixed by the center which also does not change as often as it should. Some reports on this were published in Financial Express and other papers. Following is Orissa government’s stand on this issue and the issue of compensation on thermal power generation.

Revision of rates of royalty on coal and other Major Minerals on Ad valorem basis.

Orissa is a mineral rich State, but it does not get non-tax revenue in shape of royalty from such major minerals in the State to the desired extent as the rates of royalty are not being revised in time. The 12th Finance Commission have recommended that the rate of royalty should be revised on ad valorem basis. But the Government of India has not yet done it. In the past, the rate of royalty on coal and other minerals was revised on expiry of more than 5 to 7 years though the rule stipulates that there should be revision after expiry of 3 years. The delay in the revision of the rate of royalty in coal and other major minerals has caused a loss of Rs.150.00 crore per annum. The State has suggested royalty on ad valorem basis.

Compensation on Thermal Power Generation.

Orissa has a vast coal deposit. Orissa is a power surplus State and it exports power to other States. Since, electricity duty can be charged on consumption only, the importing state benefits while the exporting state has to bear the negative externality such as environmental degradation due to mining etc. This tantamounts to transfer of resources from the producer state without any compensation for the huge negative externality as well as depletion of its natural resources. If 1000 MW power is generated in Orissa and evacuated, the importing State gets electricity duty to the extent of Rs.100 crores, while the State in which the power is produced does not get anything. This situation has to be altered by either allowing the State to levy duty on generation or else mandate that a percentage of power generated should be given free of cost to the State by the Central Public Sector generating companies as is the case in Hydro Power Generation.

The site orissamedical.com has a lot of information on the medical and health infrastructure of Orissa. Among them it not only has a comprehensive list of the various medical, pharmacy and nursing colleges in Orissa but also has the list of doctors in the three private medical colleges in Orissa:

• Hi-tech medical college and hospital, Bhubaneswar
• Kalinga Institute of Medical Science (KIMS), Bhubaneswar
• Inst of Medical Sciences and SUM hospital, Bhubaneswar

Note: KIMS now appears in the MCI site that lists MCI approved medical institutions of India.

From the Budget pages http://orissagov.nic.in/finance/BUDGET/budget.htm. The speech, in pdf, is located here. Following is a text version with some possible conversion errors.

Hon’ble Speaker Sir,

At the outset, I express my deep gratitude to you, Leader of this House, Hon’ble Chief Minister, Hon’ble Leader of the Opposition and all Members of this August House for having given me this opportunity to present the full-fledged Budget for the financial year 2007-08.

2. I would like to mention here that instead of full-fledged Budget for2007-08, a Vote on Account Budget for 4 months was presented by me on last 29th March. This Vote on Account Budget was passed by the Legislature. Now a full-fledged Budget for the financial year 2007-08 is presented for approval of this August House.

3. While presenting the Budget for the financial year 2007-08, I deem it proper to highlight some facts on the fiscal situation of the State for information of Hon’ble Members.

4. The State Government have taken many reform measures to correct the fiscal problems of the State. These include expenditure rationalization measures, revenue step-up measures, improvement in delivery system and proper utilization of limited resources etc. Needless to mention that through various additional resource mobilization and expenditure rationalization measures, there has been an improvement in fiscal management and notable results have been achieved. Some examples are as follows:

(i) Revenue deficit has been completely eliminated much before the financial year 2008-09 which was the target set by Medium Term Fiscal Plan.

(ii) While the revenue deficit of the State was Rs.2574.19 Crore in 1999-2000, this deficit was reduced to Rs.522.30 Crore in 2004-05. Our State has become a revenue surplus State from a revenue deficit State for the first time in 2005-06 after a long gap of 22 years. Revenue surplus has been estimated at Rs.1045.76 Crore in 2007-08.

(iii) Another significant aspect of financial management is achieving expected success in resource mobilization. It is to be mentioned here that because of State’s constant efforts, remarkable improvement in State’s own resources has been achieved since 1999-2000. Where as during 1999-2000, State’s own tax and non-tax revenue was Rs.2420.56 Crore, during 2004-05 this has reached Rs.5522.12 Crore and during 2005-06 the achievement was Rs.6534.18 Crore. While State’s own tax and non-tax revenue were estimated at Rs.6452.99 Crore in the original Budget for the year 2006-07, the same has been estimated at Rs.8196.28 Crore in 2007-08.

(iv) Another aspect of sound fiscal management is less dependence on Overdraft and Ways & Means advance from RBI. From 2005-06 onwards the State Government have neither resorted to Overdraft nor Ways & Means advance. This is indicative of the improvement in the financial management of State Government.

(v) 11th Finance Commission recommended that if the gap between State’s Revenue Deficit & Revenue Receipt remains within 5% during 2000-01 to 2004-05, the State Government would be eligible for Fiscal Incentive grant. Since the State Government was able to contain the revenue deficit within the stipulated percentage during the aforesaid period, Rs.315.35 Crore have been received towards Fiscal Incentive grant.

(vi) Similarly, as per recommendations of 12th Finance Commission, State Government have availed Debt Relief of Rs.381.90 Crore for fiscal achievement during 2004-05 and are also likely to get similar Debt Relief during 2006-07 for fiscal achievement during 2005-06.

(vii) On the other hand, whereas during 1999-2000, 79.17% of the net loan was used to meet revenue deficit, the revenue surplus during 2005-06 is Rs.481.19 Crore. Hence, there is no necessity at present to meet revenue deficit out of the loan amount.

(viii) Because of encouraging revenue mobilization efforts, the State Plan outlay has been increased to Rs.5105.00 Crore for the year 2007-08. While in the original Budget for 2006-07, the State Plan was fixed at Rs.3500.00 Crore, it was increased to Rs.3600.00 Crore as per the revised estimate for 2006-07. Compared to last year, the State Plan expenditure has remarkably increased this year, which will accelerate the pace of development of the State.

(ix) Despite success of the State Government in various fields, it is to be admitted that heavy debt burden is another indicator of weak fiscal situation. The State’s debt burden stands at Rs.36459.07 Crore as on 31.3.2006, which is 48.16% of the GSDP. As per the recommendations of the 12th Finance Commission, the Debt-GSDP ratio should be 28%. Similarly, as per the recommendations of the Commission, Interest Payment -Revenue Receipt ratio should be 15%. As against this, the ratio of Interest Payment to Revenue Receipt is 26.2% during 2005-06. I may point out here that it is not at all wrong to incur loan for carrying out developmental activities. But the loan should not be used to meet the Revenue Deficit. As a result of continuous efforts of the State Government, the ratio of Debt to total Revenue Receipt has been reduced from 308% in 1999-2000 to 259% in 2005-06.

(x) The State Government have been able to save Rs.144.47 Crore towards interest payment by swapping high cost loan with low cost loan as per Debt Swap Scheme of Govt. of India.

(xi) In the meantime, the State Government have resorted to Debt Buy-back and made pre-payment of high cost market loan amounting to Rs.394.61 Crore.

5. I would like to inform this August House that previously the Central Assistance to the State Government had the Grant and Loan component in the ratio of 30:70. But as per the recommendation of the 12th Finance Commission, State Government is now arranging the loan portion of the Central Assistance on its own. The system has been made effective from the financial year 2005-06. Moreover, Government of India had fixed the net loan ceiling of Government of Orissa at Rs.1677.00 Crore for the financial year 2006-07. In order to finance the State Plan outlay of Rs.5105 Crore finalised by the Planning Commission for the current financial year, the net loan has been estimated at Rs.1026.29 Crore in the Budget.

6. We shall have to reduce salary expenditure because salary expenditure constitutes 49% of the revenue expenditure net of Interest Payment and Pension. But as per the recommendation of the 12th Finance Commission, the ratio should be within 35%. In order to achieve this target, we shall have to work with patience and commitment. So it is my sincere belief that your unhesitating support, as in the past, will also continue.

7. It is a fact that in a welfare State, provision of expenditure is to be allocated keeping in view the problems of the people. But in the context of limited resources of the State, we shall have to prioritize the expenditure for the development of the State. The crux of the matter is to enhance the Capital Expenditure by curtailing unproductive expenditure, so that there will be space for infrastructure development as well as inflow of private investment.

8. Taking into account the State’s own tax & non-tax revenue, State’s share from central taxes and Grant-in-Aid from the Centre, while State’s total Revenue Receipt during 2007-08 has been estimated at Rs.19467.20 Crore, the Revenue Expenditure has been estimated at Rs.18421.44 Crore. As against the revenue surplus of Rs.481.20 Crore and Rs.747.76 Crore in 2005-06 and 2006-07 (Revised Estimate) respectively, it has been estimated at Rs.1045.76 Crore for 2007-08. On the other hand, in the Capital Account, the estimated expenditure would be more by Rs.1220.43 Crore than the receipt. The expenditure on account of Capital Outlay, disbursement of Loans and repayment of installment of earlier loans taken together would be more than the receipts from the loans and advances from different sources together
with the recovery of loans. In toto, the deficit in the Consolidated Fund has been estimated at Rs.174,67,04,000/-and an equal amount has been estimated as surplus in the Public Account. On the whole, the receipts and expenditure have been balanced taking into account the Revenue Account, Capital Account and Public Account together. Hence this is a Balanced Budget with revenue surplus.

9. I now like to present some of the highlights of the provisions made both under State Plan and Non-Plan sectors in the full fledged Budget for 2007-08.

10. Highlights of the State Plan I now point out the Highlights of State Plan Outlay.

• Ours is an agrarian State. So the popular Government Agriculture under the leadership of Hon’ble Chief Minister, Sri Department Naveen Patnaik, has given importance to enhance income of farmers by increasing production of traditional crop and diversion to high value cash crops, particularly to horticultural crops in high lands. While Rs.1.40 Crore was provided in the Budget for the 2006-07 for development of horticultural activities in 11 Non-Mission Districts, the same has been increased to Rs.3.05 Crore in the Budget for 2007-08.

• While Rs.20 lakh was provided in the original Budget for 2006-07 for Agriculture Promotion and Investment Corporation Limited (APICOL), Rs.50 lakhs has been provided in the Budget of the current year.

• While there was a provision of Rs.1.78 Crore for fertilizer, bio fertilizer, insecticide and bio-insecticide in the original Budget for 2006-07, Rs.5.51 Crore has been provided in the Budget for 2007-08.

• While there was no provision for Micro Irrigation Programme under State Plan Sector of Agriculture Department in the original Budget for 2006-07, Rs.50 lakh has been provided in the Budget for current financial year.

• While Rupees One Thousand was provided in the original Budget for 2006-07 towards subsidy under the new Agriculture Policy, the same has been enhanced to Rs.3 Crore in the Budget for 2007-08.

• For the first time, in order to encourage the cultivation of Potato, Vegetables & Spices, a sum of Rs.1 Crore has been provided in the Budget for 2007-08.

• Cultivators will be given due encouragement with a view to increasing the production of oil seeds like groundnut and cultivation of pulses and maize. Rs.10.49 Crore has been provided in the Budget for the year 2007-08 which includes State Share of Rs.2.72 Crore for providing assistance to this sector.

• You are all aware of the fact that priority is being given to Soil & Water Conservation through Watershed Development Programme by the Government under the leadership of Hon’ble Chief Minister, Sri Naveen Patnaik. The Budget estimate for 2007-08 provides Rs.18.40 Crores under the Work Plan for Macro Management of Agriculture towards development of Watersheds under NWDPRA and River Valley Projects.

• While the original State Plan for 2006-07 under Agriculture Department was Rs.48.08 Crore, it has been increased to Rs.60.65 Crore in 2007-08.

• While Rs.363.00 Crore was provided in the original Budget for the financial year 2006-07 for Accelerated Irrigation Benefit Scheme, the same has been increased to Rs.464.28 Crore in the Budget for the current year.

• A new scheme named “Biju Gram Jyoti” has been prepared in order to provide electricity in villages having population of less than 300 and for this purpose, Rs.50 Crore has been provided in the Budget of Energy Department in the current year.

• The State Government has implemented a new scheme known as Biju K.B.K. Yojana in K.B.K. Districts in 2006-07 in the name of legendary leader late Biju Patnaik and a sum of Rs.120.00 Crore has been provided for this purpose in the current year’s Budget.

• The State Government have enhanced MLALAD Fund from Rs.50 lakh to Rs.75 lakhs. An amount of Rs.147 Crore has been provided in the Budget of the current financial year which includes arrear of Rs.36.75 Crore of previous year on account of increase in MLALAD fund and Rs.110.25 Crore for the current financial year.

• Rs.30 Crore has been provided in the Budget of the current financial year for Western Orissa Development Council (WODC).

• A sum of Rs.16.10 Crore has been provided in the Budget of Planning & Co-ordination Department for Orissa State Employment Mission.

• The State Government have launched a new Scheme called “Gopabandhu Gramin Yojana” (GGY) from the financial year 2006-07 with a view to providing additional development assistance to the targeted 11 Districts which are not covered under the Backward Region Grants Fund. The main objective of the Scheme is to provide infrastructure consisting primarily of Electricity, Road and Water Supply to such Revenue villages. For the financial year 2007-08, a sum of Rs.110.00 Crore has been proposed specifically in the Budget.

• While Rs.1 Crore was provided in the Budget for the financial year 2006-07 for TRIPTI Programme meant for poverty eradication, the same has been increased to Rs.45 Crore in the Budget for 2007-08.

• A sum of Rs.69.65 Crore has been proposed as state share in the Budget for 2007-08 towards Indira Awas Yojana as against Rs.51.00 Crore provided in the Budget of last financial year.

• While there was no provision in the original Budget of 2006-07 towards National Rural Employment Guarantee Scheme, Rs.100 Crore has been proposed as state share towards NREGS for the financial year 2007-08.

• Central Government have implemented Backward Region Grant Fund in 19 backward Districts of the State. Rs.324.28 Crore has been provided in the Budget for the financial year 2007-08 for the purpose.

• While Rs.13.03 Crore was provided in the State Plan Budget in 2006-07 under National Family Benefit Scheme for One Time Assistance of Rs.10,000 to bereaved BPL families on death of chief earning member of the family, in the current year’s Budget an equal amount has also been provided for the purpose.

• A sum of Rs.67,19,42,000 was provided in the original Budget for 2006-07 towards State’s share of Mid-Day-Meal. An equal amount has also been provided in the Budget estimate for 2007-08.

• The Emergency Feeding Programme is being implemented in the 8 KBK Districts. Under the Programme, 2 lakh old, infirm, and indigent persons belonging to BPL households are provided cooked food for one time in a day. Each beneficiary is provided with 250 gms. of rice per day. For this purpose, Rs.20.50 Crore is proposed in the Budget for 200708.

• While a sum of Rs.32.81 Crore was provided in the original Budget for 2006-07 towards share of State Government for Supplementary Nutrition Programme, it has been increased to Rs.96.07 Crore in 2007-08.

• Pre-Matric Scholarship of residential students belonging to S.T. and S.C. communities has been increased. While there was a provision of Rs.40.82 Crore in the original Budget of 2006-07 for the purpose, the same has been increased to Rs.84.77 Crore in the Budget for 2007-08. Similarly, Rs.3.34 Crore has been proposed in the Budget Estimate for 2007-08 towards Post-Matric Scholarship.

• In order to provide cycles to girl students belonging to Scheduled Tribe communities who have passed HSC Examination and pursuing higher education, it has been proposed to provide Rs.81.00 lakhs in the current year’s Budget.

• There is a provision of Rs.53.01 Crore in the Budget for 2007-08 for construction of Hostels for SC & ST students.

• There is a provision of Rs.127.14 Crore in the Budget for 2007-08 under Special Central Assistance for Tribal Areas Sub-Plan. The same is meant for development of the people of Tribal Areas.

• While there was provision of Rs.101.43 Crore towards Grant-in-Aid Salary in the original Budget for 2006-07, the same has been increased to Rs.125.56 Crore in
the Budget for the year 2007-08.

• It has been proposed to allocate Rs.128.35 Crore towards Grant-in-aid salary in respect of Higher Education Department out of which Rs.21.00 Crore is meant for Non-Government Colleges. Similarly, it has been proposed to allocate Rs.5.00 Crore for Infrastructure Development of Ravenshaw University.

• Rural Health Mission under Health and Family Welfare Department is being implemented in order to provide health care facilities in rural areas. It has been proposed to allocate Rs.60.92 Crores in the Budget for 2007-08 towards the State’s share.

• It has been proposed to complete 3 bridges and 8 roads covering 76.56 km at an outlay of Rs.54.73 Crore during 2007-08 under Central Road Fund.

• It has been proposed to allocate Rs.115.00 Crore during current financial year under RIDF for construction and improvement of Roads & Bridges under Works Department. An equal amount was alsoprovided in the original Budget for 2006-07.

• As against the original provision of Rs.31.00 Crore in the Budget for 2006-07, a sum of Rs.46.00 Crore has been estimated in the Budget of current financial year to improve 7 roads under One Time Additional Central Assistance.

• It has been proposed to allocate Rs.92.20 Crore in the Budget for the current financial year towards Orissa State Road Project under Externally Aided Project (EAP). It is to be mentioned that in the original Budget of the last year, a sum of Rs.51.00 Crore was provided for this propose.

• For connectivity of Roads & Bridges in KBK Districts under Special Central Assistance Scheme, a sum of Rs.8.00 Crore has been provided in the Budget for the current financial year.

• In Works Department while in the original Budget for the financial year 2006-07, Rs.377.16 Crore was provided under the State Plan Sector, this has been increased to Rs.430.41 Crore during the current financial year.

• A new scheme has been proposed to be implemented in the current financial year under State Plan in order to provide self-employment to the unemployed youth. For this purpose, Rs.3.02 Crore has been proposed in the Budget for the current year.

• For the first time, a sum of Rs.6.80 Crore has been proposed in the Budget for 2007-08 for Infrastructure Development of Constituent Colleges under Biju Pattnaik University of Technology (BPUT).

• While there was provision of Rs.87.30 lakh in the original Budget for 2006-07 for Self Employment of unemployed S.C youth, the same has been increased to Rs.2.00 Crore in the Budget for the current year.

• In order to implement a new scheme named “Intensive Mineral Exploration and Assessment of Steel & Mines Mineral Resources”, Rs.5.00 Crore has been provided in the Budget of the current financial year.

• While there was a provision of Rs.3.81 Crore for “E-governance” in the original Budget for 2006-07, it has been increased to Rs.18.76 Crore in the Budget for 2007-08.

• For the first time, funds amounting to Rs.5.00 lakh has been provided in the Budget of I.T. Department for “On Line File Movement & Tracking System”.

• It has been proposed to allocate Rs.4.20 Crore in the Budget of the current year for establishment of “International Institute of Information Technology”.

• There was provision of Rs.1,10,80,000 in the original Budget for 2006-07 of Science and Technology Department for “Integrated Rural Energy Programme”. An equal provision has also been made in the Budget for the current financial year.

• While there was provision of Rs.16.00 lakh for “Orissa Science Academy”, it has been proposed to increase the same to Rs.20.00 lakh in the Budget for the current financial year.

• While there was provision of Rs.13.98 lakh in the original Budget for 2006-07 for popularization of Science, it has been proposed to allocate Rs.30.00 lakh during the current financial year for the purpose.

• While there was provision of Rs.56.25 Crore in the original Budget for 2006-07 in respect of “Jawaharlal Nehru National Urban Renewal Mission”, it has been proposed to allocate Rs.62.25 Crore in the Budget of the current financial year.

• It has been proposed to allocate Rs.25.40 Crore in the Budget for the year 2007-08 for Urban Water Supply.

• A sum of Rs.21.60 Crore and Rs.6.39 Crore have been provided in the Budget for the financial year 2007-08 as Grant-in-aid to Orissa Water Supply and Sewerage Board and Bhubaneswar Development Authority respectively in order to repay the loan obtained from HUDCO for Water Supply Project.

• As against the provision of Rs.80.00 Crore in the original Budget of last year, a sum of Rs.100.00 Crore has been provided in the Budget for the current financial year towards Rural Water Supply.

• During the current financial year, there is a provision of Rs.58.00 Crore under RIDF for construction and improvement of Roads and Bridges under Rural Development Department.

• There is total provision of Rs.185.10 Crore in respect of State Plan under R.D. Department during the current financial year.

• Rs.3.00 Crore has been provided in the State Plan Sector in the Budget for the year 2007-08 in respect of Tourism Department for preparation and display of high quality Cinema and for promotion of Tourism .

• While there was total provision of Rs.7.05 Crore in the original Budget of 2006-07, it has been augmented to Rs.10.16 Crore in the Budget of the current financial year.

Plan Outlay in other Sectors

• As against the original provision of Rs.290.00 Crore in the Budget for the year 2006-07 in respect of Rural Infrastructure Development Fund, it has been proposed to allocate Rs.310.00 Crore in the Budget for the year 2007-08.

• While Rs.516.00 Crore was provided in the original Budget for 2006-07 for Externally Aided Projects, the same has been increased to Rs.793.20 Crore in 2007

11. Highlights of Non-plan Revenue Expenditure. Rs.18,078.24 Crore has been provided towards Non-Plan Revenue Expenditure in the Budget for the financial year 2007-08. I now point out some important highlights of the Non-Plan revenue expenditure for information of Hon’ble Members of the House.

• State Government is giving adequate emphasis on development of Higher Education for which a sum of Rs.35.00 Crore has been provided in the Budget for the year 2007-08 as given below.

Utkal University : 3.50 Crores
Berhampur University : 3.50 Crores
Sambalpur University : 4.00 Crores
Shree Jagannath Sanskrit University : 2.00 Crores
Orissa University of Agriculture & : 2.50 Crores
Technology
Fakir Mohan University : 7.00 Crores
North Orissa University : 7.00 Crores
Ravenshaw University : 5.50 Crores

It has been proposed to allocate of Rs.17.00 Crore in the Budget for the current financial year towards arrear pay in respect of both Government and Government Aided Institutions under Higher Education Department out of which Rs.11.00 Crore and Rs.6.00 Crore are meant for Aided Educational Institutions and Government Colleges respectively. Similarly provision of funds amounting Rs.143.41 Crore has been made in this year’s Budget as Grant-in-Aid to different Institutions under Higher Education Department.

While Rs.167.42 Crore was provided in the original Budget for the year 2006-07 towards Sarba Sikhya Abhijan (SSA) under School and Mass Education Department, the same has been increased to Rs.170.33 Crore in the Budget for the financial year 2007-08.

· A sum of Rs.4.00 Crore has been provided in the Budget for the current financial year for renovation of Rabindra Mandap and Bhanja Kala Mandap.

• As per the recommendations of 2nd State Finance Commission a sum of Rs.19.85 Crore, Rs.5.00 Crore and Rs.11.74 Crore has been provided in the Budget for 2007-08 for repair and maintenance of Minor Irrigation Projects, repair and construction of G.P roads and for other
development work respectively.

• It has been proposed to allocate Rs.25.00 Crore for addition, alteration and maintenance of Hostel and Schools for the SC and ST Students.

• While Rs.9.78 Crore was provided in the original Budget for 2006-07 towards Diet Allowance of Prisoners of different Jails, the same has been increased to Rs.12,58,76,000 in the Budget for the financial year 2007-08.

• While Rs. 2.00 Crore and Rs. 1.77 Crore have been provided in the Budget for the current financial year for Infrastructure Development and purchase of Equipments respectively for Acharya Harihara Regional Cancer Centre, Rs. 2.10 Crore each for V.S.S. Medical College, Burla and M.K.C.G. Medical College, Berhampur, has been provided for increase of MBBS seats from 107 to 150.

• There is a provision of Rs.10.00 Crore in the Budget for Revenue & 2007-08 for distribution of Land Pass Book. Assistance is expected from National Calamity Contingency Fund. Accordingly, there is a provision of Rs.150.00 Crore in the Budget for the financial year 2007-08.

• There is a provision of Rs.60.30 Crore towards State Share and Rs.180.87 Crore towards Central Share (totalling to Rs.241.17 Crore ) in the Budget for 2007-08 on account of Relief Expenditure.

Non-Plan Expenditure in Other Sectors

• During first year of the 11th Plan period i.e financial year 2007-08, Rs.200.00 Crore has been transferred from Plan to Non-Plan Sector towards committed liabilities. It includes repair of Roads and Buildings, maintenance and repair of completed Irrigation Projects and maintenance of Irrigation Projects under Water Resources Department, provision of stipend and scholarship for the students of ST & SC Development Department, Block grant and Salaries of Universities under Higher Education and Agriculture Department.

· For maintenance of Government Buildings, Residential Buildings and Roads, provision of Rs.1138.51 Crore has been proposed in this year’s Budget which is higher by Rs. 322.34 Crore compared to the original Budget for the year 2006-07.

· Rs. 4049.11 Crore towards Interest Payment in respect of Loans obtained from Govt. of India and other Institutions.

· Rs.2125.36 Crore towards pension and other retirement and benefits.

12. While during the financial year 2006-07 expenditure in Capital account was estimated at Rs.1349.21 Crore, this has been increased to Rs.1913.77 Crore in the Budget estimate for the current financial year. Because of this, more funds will be available for infrastructure development.

13. Consequent upon introduction of Value Added Tax (VAT) w.e.f. 1.04.2005, revenue collection has increased in Commercial Taxes organization. While an amount of Rs.2471.39 Crore was collected during 2004-05, this has increased to Rs.3011.73 Crore during 2005-06. As per preliminary information, this has further increased to Rs.3764.82 Crore in 2006-07. During the current financial year, State Government have changed the Value Added Tax Rate of 35 commodities which would be helpful in augmentation of State’s revenue as well as for the benefit of the small dealers and poor consumers. For example, while VAT has been increased on tobacco, the same has been reduced on tea. 9 items of goods have also been exempted from VAT.

14. Out of grants from DFID and 11th Finance Commission, 54 offices in Commercial Taxes organization (including 4 important check posts) have been computerized out of 111 offices.

15. Orissa Treasury Management System (OTMS) is being implemented since June, 2005 with DFID assistance. The principal objective of the Orissa Treasury Management System is to computerize all Treasuries, Special Treasuries and Sub-Treasuries in phases. For this, Computer System in all the Treasuries, Special Treasuries and Sub Treasuries are being linked with the main Computer System in the Directorate of Treasuries. Hence, no bill can be passed without allotment. Because of this, excess expenditure incurred beyond Budgetary provision, can now be prevented.

16. I may indicate here that steps are being taken to credit Pension related dues of retired Government employees in Bank Account through Computer during the current financial year. By this, pension payment and its accounting procedure will be simplified and difficulties of the pensioners will be removed.

17. Before I conclude, I want to inform the Hon’ble Members of this August House that it is incorrect to assume that problems of the State will be solved by making more provision in the Budget and expending the same in a routine manner. It is essential that we have to see whether the desired result is being derived from the money expended or not. I expect and believe that Departmentally related Standing Committees will examine this aspect while analyzing the Budget of the Departments.

18. Another important aspect is timely and proper utilization of Central Assistance. Substantial improvement has been noticed in submission of Utilization Certificate in respect of Central Assistance received due to regular monitoring and supervision by Government. For example, while Utilization Certificate amounting to Rs.2470.58 Crore was submitted during 2005-06, the same has increased to Rs.2852.25 Crore in 2006-07 which is Rs.381.67 Crore more in comparison to the previous year.

19. Hon’ble Speaker Sir, while presenting the Budget for the financial year 2007-08, I have highlighted the financial situation, the estimated receipts and expenditure of the State and the sincere efforts of the Government to mitigate the persistent problems of the State. I am grateful to you Sir, and extend my gratitude to the Hon’ble Leader of the House and Hon’ble Leader of Opposition and also my heartfelt thanks to the Hon’ble Members of the House for giving a patient listening to me so long. I solicit the help and cooperation of this August House. I humbly pray before Lord Sri Jagannath for happy and prosperous future of our State.

‘Jai Hind’
‘Bande Utkal Janani’
Shri Prafulla Chandra Ghadai,
Minister, Finance.

Various newspapers (Telegraph, Financial Express) report that the Cabana group has announced a hotel and a management institute in Bhubaneswar and plans to open many hotels in various locations in Orissa. Following is an excerpt from Telegraph.

Co-chairman of Cabana Hotel Management Private Limited and venture capitalist, Prabhu Goel, said the institute will be the group’s first training venture anywhere in the world. “Since the industry demand is huge, we hope that all students will be absorbed after training,” Goel added.

The institute, for which the government has allotted a seven-acre plot near Dumduma, will have hostels for 1,500 students, classrooms, labs, kitchens, along with a an attached 200-bed hotel. The group will represent Best Western brand in India, provide hotel management services and consultancy, he said.

Over the next 10 years, the group intends to add more than 100 hotels and 10,000 rooms to the growing Indian hospitality market. “We have visited places like Chilika, Puri, Konark and Paradip. We are interested to set up hotels there. We have plans to invest around Rs 350 crores in developing properties in the state,” said Goel.

Orissawatch.org is where we started from and focused on human resource development and education. We continue to be active that site. Once in a while we will do a round-up of important postings in that site here. Following is the first such round up.

• RFPs for the AIIMS like institute in Bhubaneswar and other places
• Tenders related to NISER Bhubaneswar
• NISER Bhubaneswar brochure and application form
• List of engineering colleges in Orissa
• List of management institutions in Orissa
• List of universities in Orissa
• List of research institutions in Orissa
• Coaching Schools in Bhubaneswar
• XIM plans to roll out new courses in econometrics, financial modelling and regulatory finance.
• Post Class X ads (junior colleges; plus 2 science; plus 2 commerce)

News reports mention that Oriental Timex has acquired mining rights for decorative stones at village Potteru in Malkangiri district. Following is a quote from one of the reports.

The company acquired the said rights through a prospecting license dated Apr. 13, 2007, executed between the company and deputy director of mines, Koraput Circle Koraput, government of Orissa.

The decorative stone quarry is spread over an area of 10.279 hectares / 25.40 acres. The deposits in this quarry are of black colour granite stone.

The company said is in the process of complying with the terms and conditions of the prospecting lease.

PRESS RELEASE 29.05.2007 (CM ATTENDS NDC MEETING)

GOVERNMENT OF ORISSA

PRESS RELEASE

New Delhi

May 29, 2007

NAVEEN PATNAIK DEMANDS HIGHER ALLOCATION FOR ORISSA

TO CORRECT THE NEGLECT OF THE CENTRE

Speaking at the 53rd meeting of the National Development Council in their special session on Food and Agriculture, the Chief Minister, Shri Naveen Patnaik today demanded that the historical neglect for Eastern States like Orissa should be corrected during the 11th Plan.The advanced States of the country have had the benefit of huge public investment in irrigation and other related infrastructure in the past and the Eastern States have lost out in this race, he said. He pointed out that the various Working Groups on Agriculture have observed that the Eastern region has the maximum potential for agricultural growth during the 11th Five Year Plan and therefore region specific programmes based on the specific requirements of the different agro-climatic zones should be drawn up instead of uniform nation-wide schemes of one-size-fit-all variety.

Since irrigation is the key in agricultural growth, he suggested that Accelerated Irrigation Benefit Programme (AIBP) should have a large outlay and include not only major and medium irrigation projects but should also be extended to minor and lift irrigation projects.

For those lands which cannot be provided with assured irrigation, he suggested that a massive programme should be drawn up to cover rainfed areas on a Mission mode. He demanded that adequate funding support be provided by Government of India to the Watershed Mission of Orissa which has been set up by his Government to tackle the problems of rainfed agriculture.

He also suggested that seed production should be decentralized and seed villages encouraged so that adequate quantities of certified seeds are available to the farmers at affordable rates. He pointed out that nearly 70% of the cultivable land of Orissa is acidic in nature and transport subsidy should be provided by Government of India for gypsum and other inputs used for soil amendment.

Certain districts of Orissa such as Phulbani and Koraput have excellent potential for production of organic fruits, vegetables and spices. Since these districts are in the tribal sub-plan area, the resource-poor farmers cannot afford the high cost involved in certification of organic products. He suggested that the cost of such certification may be borne by the Government. He made a strong plea for a comprehensive crop insurance policy for cotton farmers of the State mainly in the Eastern and Southern parts of the State.

The CM also stated that farm mechanization and micro-irrigation systems are necessary in order to improve productivity of the land and timely agricultural operations. Specific schemes should be drawn up to promote a large number of cold storages in private sector with attractive incentives in the form of capital investment subsidy. Cold chain and post harvest management interventions should be put in place in order to support this sector, he added.

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