___________

Samaja reports that Paradeep oil refinery would function from October 2011.

However, there were many such announcements published earlier. Every time a new date is fixed. The project is already shifted 5 years from the actual schedule.

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.

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.

Mining and Metal: KBK plus region is rich in bauxite, gemstone, and other minerals. State government has made a special tax benefit for industrialists to establish industries in KBK. However, it is not enough to bring investment to a backward region like this where infrastructure is in bottleneck. Emphasis should be given by the state government in such a way that industrialists are convienced to invest in KBK plus region.

State government has already signed 43 MOUs only in the steel sector; if these are actually implemented then it is quite enough for a state like Orissa. Therefore, now the state government should modify a bit the exiting rule for steel industry putting a new clause that any new proposal to establish steel industry in the state will be considered only if it would be located in KBK plus region or Mayurbhanj district, otherwise mining rights would not be provided.

For growth of down stream industries in KBK Plus region NALCO, Vedanta Alumina Ltd, and Utkal Alumina Ltd should be encouraged to establish downstream industrial park at Koraput, Bhawanipatan and Rayagada respectively.

Irrigation and Hydroelectric Project: KBK plus region has the higher potential for generating electricity through hydroelectricity project that needs construction of new dams. If government can not support at a time, then private players should be encouraged to establish dam for hydroelectricity generation and irrigation purposes in this region.

Information Technology, BPO, and KPO: IT and BPO generate lots of employment in India recently. Bhubaneswar is already emerging as an IT and ITES destination in the country. In the next step the state government should expand these industries to other parts of the state. There are already plan for Rourkela and Berhampur. In future it may be expanded to Sambalpur and Balasore. Keeping geographical location in mind, the state government should establish at least three IT parks in Koraput, Bhawanipatna and Balangir for the whole region for IT, BPO and KPO.

Establishment of three real universities in the region would benefit these industries.

Biotechnology Park: As such KBK Plus region has a large forest area, therefore, it has great potential for biotechnology, especially for agricultural biotechnology, herbal biotechnology and medicinal biotechnology. Plantation of herbal plants and agricultural biotechnology in this region would be much beneficial.

KBK Plus region could be a very good source of ethanol from not only agriculture but also the forest. Mahul (a locally known forest flower that is used to make local wine) could be a good source for ethanol and methanol. Though wine is locally discouraged, nevertheless it can be used for industrial growth to export out side the country. The export market of Indian made wine and beer is flourishing recently. Orissa should encourage such activity by inviting major industrialists to invest in wine and food processing market to explore the possibility of local made products for export market so that it will benefit both the state government and local people that included tribal people who collect Mahul from the forest for local wine production.

The region would also be a source for bio-diesel and bio-fuel production.

Therefore, biotechnology parks in the three major towns such as Bhawanipatna, Koraput and Balangir to explore agricultural, herbal and medicinal biotechnology respectively in the region should be established.

Reference: KBK Plus region includes a single cluster of Kalahandi, Nuapada, Balangir, Subarnapur, Koraput, Malkangiri, Rayagada, Nawarangpur , Kandhamal, Boudh, Gajpati and Bargarh (Padampur sub-division only) districts of Orissa.

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.

The New Indian Express reports that the state Government has decided to launch enterprise development rogramme in 200 villages in the catchment area of Upper Kolab HydroElectric Project to create alternative employment opportunities and nd dependence on forest.

This would include value addition to non-timber forest product, edicinal plants, agriculture and horticulture products, leaf plate aking, hill broom making, mushroom cultivation, spawn production, ruit preservation and opening of handicraft centre for bamboo articles.

Although its a novel initiative, it needs proper implimentation.

Moneycontrol India reportted the following.

Chinese steel company Baoshan Iron & Steel company or Baosteel is set to invest in a ferro chrome unit in Kalinganagar in Orissa, reports CNBC-TV18.

It futher says, it would be a joint venture with Visa Steel’s who has a 50,000 tpa ferro chrome unit in Kalinganagar to be commissioned in June.

The Telegraph reports that Mumbai-based Cabana Hotel Management plans to set up Best Western-branded hotels in Bhubaneswar.

“We are establishing hotels in Ooty (Udhagamandalam), Bangalore, Kanyakumari, Jaisalmer, Rameshwaram and Bhubaneswar, on which we will start construction soon,” Prabhu Goel, co-chairman of Cabana Group, said.

The completion of the (a) Kurdha Rd – Balangir new line, (b) Lanjigarh Rd – Junagarh new line, (c) broad gauge conversion of Naupada Rd and Gunupur and (d) the completion of the Gunupur-Theruvali line will have the following benefits. [Among these, with the current funding level (b) and (c) will be completed in a couple of years. What is needed is a big push to complete (a) and (d) in the next 3-4 years.]

Pioneer mentions that the National Highway Authority of India has given final notification for 4-6 laning of Panikoili-Rajamunda. Following is an excerpt on the same topic from Pragativadi.

 Keonjhar: The National Highways Authority of India (NHAI) has notified the four-six laning of the Panikoili-Rajamunda section of the NH-215, under the (National Highway Development Project) NHDP-III.

The notification has asked the district headquarter to undertake the land acquisition along the section of Panikoili in Jajpur district to Rajamunda in Sundergarh except for the section of Rimuli to Guali in Keonjhar district. The land acquisition will be made for a distance totalling 230 km of the total length of 263 km of NH-215 under the National Highways Act, 1956.

The project will be taken up under the BOT (Build -Operate-Transfer) scheme encompassing three revenue districts Keonjhar, Jajpur and Sundargarh. The proposed project was sanctioned by the NHAI in 2004-05 to mainly to cater to the needs of Paradip Port Trust (PPT) and due to persistent demands from the state government, especially Lok Sabha member from Keonjhar, Anant Naik.

From http://rc.orissa.gov.in/index3.asp?linkid=30&sublinkid=219

PRESS RELEASE DT.28.05.2007(CM ATTENDS CONFRENCE ON POWER SECTOR)

GOVERNMENT OF ORISSA
PRESS RELEASE
New Delhi
May 28, 2007

Shri Naveen Patnaik, Chief Minister, Orissa today attended the Conference of Chief Ministers on Power Sector at Vigyan Bhawan. The meeting, which was chaired by the Prime Minister, broadly focused on accelerated capacity addition in the power sector, efforts to reduce Aggregate Technical & Commercial (AT&C) losses, ensuring greater competition to open access, rural electrification and energy conservation and efficiency.

Samaja has a beautiful editorial page article by Ramachandra Pattanayak. In it the the author explains that if we continue opposing Posco, Tisco and Mittal what will happen is that steel plants will be made in other states, our mines will be assigned by the central government to these steel plants in other states and we will lose out on many fronts including infrastructure development that comes with steel plants, ancillaries, etc. Similarly, he says it does not make sense that we are so vocal about IIT etc. and yet we oppose Vedanta University.

I agree with the author. The assignment of mines is not fully under state govt. control. We can not sit on requests and delay assigning mines. If we do that currently the central govt. has the right to assign the mines to others. Losing out on the mines, we lose out on the related infrastructure developments such as townships, railways, roads, and to some degree ports. We also lose out on the ancillaries. In this regard one may note cities with big steel plants such as Rourkela or Jamshedpur. They all have lots of ancillary units around that area. So even if the main steel plant does not employ as many people as in the past, there are more opportunities for ancillaries these days as the state is keen on going after auto factories, bicycle factories etc. These ancillaries will hire a lot of people. But, of course, we should not force people out of their land; they should be enticed with good compensation (R&R). On the other hand we need to be very careful and wary of some of the neighboring states who are trying to spread their ideology to our state and in the process trying to steal some of these upcoming developments in Orissa. In this regard it is amazing that politicians and MPs from a neighboring state are able to come to Orissa and say that their party opposes such and such project in Orissa. At the same time the party of these politicians support industry in their state so much that they or their allies have sent in cadres dressed up as policemen to kill and rape people opposed to industrialization in their state. What gull these politicians from the neighboring state have and how stupid we Oriyas are to invite them, give them a platform and listen to them.

Orissa Road Projects to get Rs 1, 406 crore world bank aid

The Financial Express reported the following:

Of the total amount, Rs 415 crore would be invested during the current financial year to build the 68 km Bhawanipatna- Khariar road, 95 km stretch of Chandbali-Bhadrak-Anandapur road and 41 km Berhampur-Taptapani road. The Sambalpur- Rourkela, Joda-Bambri and Koira- Tensa-Rajamunda roads will be widened under the PPP mode.

The New Indian Express also reported that:

there is also a proposal to set up a Construction Academy akin to ne in Hyderabad to assist the capacity building activities of the state Government. The academy will train contractors and workers with modern construction techniques.

The New Indian Express goes on to say:

Earlier central government promised to:

(1) improve 1,000 km of National Highway of the State

(2) get Rs 2,200 crore under NHDP over a period of five years.

(3) have a mechanism to spend Rs 480 crore annually for development f National Highways against the present fund od Rs 80 crore from he National Highway Authority of India (NHAI).

(4) construct Khordha-Balangir NH 224

These are few good inititives for developing road infrastructure of Orissa. In the first step such initiatives should be taken to directly link all district headquarters with the state capital in the shortest possible route through either national highway or Orissa Road project.

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

* Financial Express: The hub, which will come up on a built-up area of 1.5 million sqft n the Chandaka Industrial Estate of the city, will act as a centre or convergence of the bank’s activities, like call centre, ack-office operations for banking & insurance as well as sales and administration
* Financial Express: The proposed hub would accommodate approximately 10,000 people in a phased manner and have the capacity to scale up the operations in future to a potential of 15,000 manpower.

Tathya reports that ICICI Bank will collaborate with Utkal University to start courses in banking and insurance. I guess this will be mutually beneficial to both Utkal University and ICICI Bank. The later will get a good pool to hire its employees.

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

Notes:

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

Tathya’s running headline said that ICICI’s CEO Mr. Kamath is visiting Orissa on the 26th.

Telegraph reports that there is a plan to establish a Rs 3 crore observatory with latest equipment such as  cassagerial optical telescope, Schimidt Cassergain, IR and UV sensors and a well-furnished chemical laboratory in or near Bhubaneswar. The possible spots are Sikharchandi Hill near Infocity or a hill near Naraj Barrage. Since NISER plans to eventually have a course in astronomy this observatory may come in handy for its students and faculty.

Tathya reports that an IT SEZ has been approved that covers major part of Infocity. Following is an excerpt from that article.

The IT nerve center of Orissa is centered at Infocity, a sprawling 300 acres of Export Promotion Industrial Park developed by IDCO north of Bhubaneswar.

Infosys and ESSPL have set up their development centers.

TCS, Wipro and MindTree have signed memorandum of understanding (MoU) and have taken land in Infocity.

Other prominent IT companies including Genpact, Hexaware Technologies, Ramtech Software Solutions and Contiloe Films have also applied for land.

Following is a partial list of organization and banks that provide micro-financing in Orissa.

• KAS Foundation (S Kathiresan, founder and CEO): in all 30 districts of Orissa.
• SKS microfinancing
• BISWA

The Microfinance Gateway may be  a good place to further explore micro-finance issues with respect to Orissa.

PIB reports that Konark Chakra will be part of the logo of the merged IA and AI airlines and the engines will be painted only with the Konark Chakra.

News reports (New Indian Express) mention that POSCO‘s proposed port in Jatadhari, 12 km from Paradeep, has received environmental clearance from the center. POSCO’s MOU with Orissa government has mention of a port.

Various news reports (New Indian Express, Sambada, Dharitri) mention that an integrated Titanium plant will be established in Chhatrapur at the cost of 2200 crores. This plant will be established by Sharaf agencies with the help of the Russian government.