___________

Myiris reports on this. Following is an excerpt.

Rashtriya Chemicals and Fertilisers (RCF) may be forced to go ahead with a Rs 35 billion coal-to-gas project at Talcher in Orissa to feed its plants, …

RCF has tied up with Reliance Industries and Oil and Natural Gas Corporation (ONGC) for supplying gas. There may be delays due to the Reliance gas pricing issue yet to receive an approval from the centre.

The company is also in talks with Gail India for fuel supply. If the availability of gas become an issue, then it might think of setting up the Talcher project.

Talcher is the most viable site in terms of infrastructure, facilities and proximity to coal mines. The latest coal gassification technology will be utilised to allow the use of coal with high ash content of up to 30-35%.

The Economic Times reports on NALCO’s plan about a cement venture and its plans to convert fly-ash to salable product. Following are excerpts from that report.

… (Nalco) has decided to diversify into cement manufacturing and is looking for global joint venture partners to float a medium to large sized cement plant. Nalco’s proposed cement venture is part of its decision to use fly ash generated at its captive power plant at Angul in Orissa and convert it into sale-able products. …

Nalco is primarily looking at the possibility of manufacturing Pozzo-lana Portland Cement (PPC). A byproduct of coal-fired power plants, fly ash can replace a proportion of the clinker used in cement plants. However, the company is also open to any other form of utilisation of fly ash in the JV.

The company is also seeking JV partners for classification and marketing of cementitious applications in the domestic and export markets. Cementitious products have cement-like, cementing, or bonding type properties. As the largest state owned producer of aluminium, Bhubaneswar-based Nalco operates alumina-aluminium complex along with a captive power plant, and has embarked on a major expansion programme to raise metal capacity.

The project also involves enhancing installed captive power generation capacity from 960 mw to 1,200 mw at Angul. Fly ash is commonly used as a high-performance substitute for Portland cement or as clinker for Portland cement production. Cement blended with fly ash is becoming very common. Building material applications range from grouts and masonry products to cellular concrete and roofing tiles.

Nalco has eight power units of 120 mw each, while the expansion project involves setting up two more identical units of 120 mw. These will be commissioned by the year 2008.

Typically, such units generate about 5,000-6,000 tonnes of ash per day, of which fly ash consists of 4,000-4,800 tonnes. A project is un-derway to allow easy loading of fly ash from the plants. By 2009, the quantity of fly ash that can be utilised is expected to touch 4,500 ton-nes per day. At present, this volume is about 900 tonnes.

“Nalco is yet to decide on the size of the cement plant. However, rough estimates show that a one million tonnes cement plant can be put up to utilise three lakh tonnes of fly ash. Nalco’s current fly ash generation per annum is 3.2 lakh tonnes,” a Nalco official said.

Livemint reports that RCF (Rashtriya Chemicals and Fertilizers) plans to revive the FCI plant in Talcher. Following are excerpts from that report.

Public sector enterprise Rashtriya Chemicals and Fertilizers (RCF) has planned a capital expenditure of Rs 10,000 crore for the next five years and will consider tapping the capital market for raising funds.

The company is talking to the government on its initial public offer and the process would take six to eight months, …

Of the Rs 10,000 crore capex planned, the debt-equity ratio would be 2:1 and hence the company could borrow up to Rs 7,000 crore while the rest could come from its IPO, he said.

“The company expects to finance its projects largely through internal generation and debt, apart from other modes of generating funds as may be appropriate,” it said in its annual general report.

With the capex money, RCF wants to revive two units–Hindustan Fertilizer Corporation’s unit in Durgapur, West Bengal, and Fertilizer Corporation of India unit in Talcher, Orissa.

Both the units would absorb about Rs 6,500 crore, Jha said.

Livemint reports on NALCO’s expansion plan. Following are excerpts from that report.

State-run aluminium producer, Nalco, will tap the overseas market to raise $250-million by August-end for its ambitious capacity expansion plan.

Nalco is undertaking a major expansion, including ramping up of its alumina capacity at the cost of Rs 5,040 crore. …

In between, Nalco has placed orders on foreign equipment suppliers for its expansion project and the deliveries are due in 2008.

The project involves expansion of capacity of its bauxite mine, alumina refinery, captive power plant and aluminium smelter by about 33%, he said.

Under the expansion, the capacity of bauxite mine in Koraput district of Orissa would be increased from 4.8 million MT a year to 6.3 million MT.

The alumina capacity would go up to 2.1 million MT annually from the present 1.58 million MT, he said. Besides, the capacity at the captive power plant at Angul in Orissa would be ramped up to 1,200MW, he added.

The PSU also plans to enhance its aluminium smelting capacity from 345,000 MT to 460,000 MT per annum.

In the medium-term, after the completion of the expansion project by 2008-end, a growth of 30% is targeted, the official added.

On the ongoing tussle to make MCK comply with R & R policies MP Dharmendar Pradhan has compared MCL’s hirings with other similar companies hirings. New Indian Express gives a report on this and we give some excerpts from that report.

The average annual production of coal in Eastern Coalfields Limited (ECL) is 30 million tonne with a workforce of 1.02 lakh; with 95,000 manpower, the annual production of Bharat Coking Coal Limited (BCCL) is about 23 million tonne, and Central Coalfields Limited (CCL) has nearly 90,000 workforce to produce 32 million tonne.

Similarly, the Western Coalfields Limited (WCL) has about 70,000 employees with an annual production of 42 million tonne. The South Eastern Coalfields Limited (SECL) is the largest producer of coal with annual production of 88 million tonne and has 80,000 workforce.

On the other hand, MCL, the second largest producer of coking grade coal in the country with average annual production of 80 million tonne, has given jobs to 20,591 people. The company has been facing resistance from the locals for its poor policy on resettlement and rehabilitation.

MCL’s Chairman and Managing Director Aviram Sharma was caught on the wrong foot when Dharmendra Pradhan, MP, sought to know from him the manpower position in other subsidiaries of Coal India vis-a-vis their production at a high level meeting here on Thursday. The meeting was convened to discuss the contentious issue of R&R policy in MCL areas.

Pradhan told the meeting that there are nearly 5,000 rightful claimants for compensatory job in MCL. Besides, MCL is not doing a favour to them as they have already lost their land and livelihood, he argued.

Revenue Minister Manmohan Samal, who presided over the meeting, directed MCL and NTPC to implement the policy and report it every week on the progress.

Now, just because MCL employs less it does not become a bad guy. But, if must follow the R & R policies and also keep its promises. Moreover, it should consider the action by Central Coal Fields to set up an engineering college in Jharkhand. Following is an excerpt from the Business Standard article that reported on this.

The Jharkhand-based public sector Central Coalfields Limited (CCL) has established 68 schools in various parts of its working areas of different standards besides financial and other infrastructural help to 195 schools situated in and around CCL command area.

CCL has recently decided to establish on engineering college for the benefit of the people of Jharkhand.

CCL spent over Rs 1042 crore on social overhead onwards 1998. It had constructed over 160 km of heavy duty coal transportation roads. 300 km of approach road and equal length of colony roads, 6 major bridges on river Damodar, 59,455 permanent houses, 19 hospitals besides water supply schemes covering over a population of 5.02
lakh. CCL is also one of the major employers in Jharkhand.

It has 62,827 employees on the roll of which 35 per cent belonged to Schedules caste and Scheduled tribes.

The company is also one of the major contributors to state exchequer. The state has earned over Rs 2811.56 crore of royalty and other taxes from CCL?s mining activities after the constitution of Jharkhand state. …

In the financial year 2006-07, CCL has constructed/repaired 35 km new roads in nearby villages in its command area. Over and above, CCL is to organise 215 health camps for various specializations during this financial year.

Statesman reports that the Orissa government has asked MCL to provide jobs to displaced people. Following are some excerpts from that report.

The state government today directed Mahanadi Coalfields Ltd to provide jobs to all those affected or displaced persons within four weeks and also asked other PSUs ~ NTPC and Nalco ~ to furnish weekly progress reports on rehabilitation measures. The decisions were taken at a high level meeting convened by revenue minister Mr Manmohan Samal here today. …

Mr Samal today directed that all categories of land losers and affected persons ought to be provided with employment within four weeks. Interestingly, he is also believed to have told the Central PSU that they should go by the Land Acquisition Act and not the Coal Bearing Act. The implementation of Coal Bearing Act had created problems since much of the land was notified but lying unacquired physically for several years. In the process, the land owner was unable to either sell or do anything with the land. With regards to employment of affected persons, it is learnt that the contentious issue relates to what is categorised as “C” type affected persons. These were people who had lost their land practically and not their homestead land.

New Indian express reports that the Orissa krushak sangha demands that Orissa R&R policy is made as an legislation.

I welcome this as a good step. Also, this signifies that the orissa krsuhak sangha is supporting this policy. This is an encouraging sign. Possibly an indication of a partnership between farmers and industries.

Orissa Krushak Mahasangha has urged State Government to make rehabilitation and resettlement (R&R) policy a law. Citing instance of Mahanadi Coalfields which is accused of not implementing R&R measures causing strong resentment among the oustees, chairman of the farmer outfit Bibhudendu Pratap Das said once it is made a legislation, no company would be able to violate it.

Violators would attract penal provision, he added.

He also demanded that special courts should be set up for such cases.

Last week transportation of coal from Mahanadi Coalfields Limited came to a grinding halt and NALCO and NTPC Talcher that depend on that coal got into a critical situation. Following are excerpts from a Newkerala news report that mentions why MCL got into that situation.

Sources said the land losers of Zillinda, Kandhal and Solod affected by Ananta and Bhubaneswari mines stopped Ananata, Jagananath and Bhubaneswari open cast mines and close down the concerned project officers’ offices since yesterday demanding the promised job to the oustees by Mahanadi Coalfield Limited (MCL).

The villagers alleged that MCL authorities did not meet their commitments to provide 80 jobs to them till date forcing them to go for strike.

Similarly the land oustees of Kandhal marched to Lingaraj mine linked to NTPC-kaniha yesterday and stopped the output protesting the non-availability of employment to them as promised by Lingaraj authorities.

Coal transportation from Hngula and Balaram mines had been hit for the last four days due to the road blockade by Soloda villagers demanding jobs.

Angul Collector Girish S N said the authorities were monitoring the situation and senior officials dealing with land acquisition and rehabilitation had been rushed to troubled areas to negotiate with the agitating villagers.

Kalinga Times reported on a letter that CM Naveen Patnaik wrote to the PM on this issue. Following are some excerpts:

In a letter to Singh on Monday, the Chief Minister said that MCL should continue supplying coal to National Aluminium Company (NALCO) and National Thermal Power Corporation (NTPC) to help these industries continue uninterrupted power generation.

Blaming the MCL authorities for not extending the rehabilitation and resettlement benefits to the people affected by coal mining, Patnaik said the public sector undertaking should go as per the State’s R&R policy as the Centre was yet to adopt a new policy in this regard.

Extending R&R benefits to the families affected by the operations of MCL will go a long way in improving law and order situation in the region, Patnaik said.

In recent months there have been reports regarding how some R & R issues with respect to Hirakud dam oustees and SAIL Rourkela still remains unresolved after several decades. It seems that many public sector companies with their central government connections are arrogant and have not done R & R properly. As a result people do not trust R & R promises made by anyone (private or public companies) and as a result various projects that could help Orissa get out of the bottom, are getting inordinately delayed.

Following is somewhat of a dated collection on investments and investment plans in Orissa.

• Summary: [1], [2], [3:Interview with CM]
• New jobs: [1.5 lakhs new jobs]
• Directorate of Industries, Govt. of Orissa
• Education and Education related financing
  • Loans and insurance for college education:
    • a great Andhra bank scheme
    • An educational loan portal
    • Another educational loan portal
    • Yet another educational loan portal
    • A rediff article with pointers
  • Higher Education: [FinExp-Aug05]
  • Primary and Secondary Education: [Insurance-plan-Aug15-05], [Insurance-plan]
    Editor’s comment, Aug 14, 2005: The private engineering colleges and medical colleges should be encouraged to open one or more Class I-XII schools. In general, these private colleges should spend 10% on the above, 80% on their own stuff, and another 10% on post-graduate education. For the 10% parts they can either have their own ClassI-XII school and M.Tech/Phd Program or pay the amount to an appropriate fund.
    Editor’s comment, Aug 14, 2005: For Oriya medium students to compete well in national and international level exams and competitions, after class 7 one should have the option of pursuing science and social science either in English or Oriya. To overcome the worry that students will lose touch with Oriya by pursuing science and social science in English, from Class 7, Oriya should be split to two parts, and be assigned twice its current weightage. I.e., instead of 100 marks for Oriya, there will be 200 marks for Oriya. The two parts could be (i) grammar and vocabulary — similar to TOEFL and GRE, and (ii) Writing and literature. ( Some decisions related to this made by the Orissa government.)
• Information Technology: [TCS1], [TCS-2], [TCS-3], [Wipro-BPO-1], [WIPRO-2], [Wipro-land-bought], [other IT and BPO companies]
• Steel plants: Tatas, KK Birla Group, Jindals, Essar, Murugappas, MESCO, POSCO etc. [1], [2], [3], [4], [5], [6:Jindal], [7:mesco-insightOrissa-july22-05], [8: A summary article in May 05 Orissa Review], [Adhunik-Sundergarh], [Rungta,Bhusand,Jindal-JSPL,Titanium], [production in 9 plants], [More MOUs], [More MOUs2]
• Tatas – Steel plant@Duburi, TCS@BBSR, Gopalpur: [0: TATA news releases], [1], [2], [3], [4], [5], [6:Kalinganagar],
• POSCO: [1], [2], [3], [4]; [Forbes-MOU-22Jul05]; [Forbes-2-22Jul05]; [FinExp-MOU-22Ijul05]; [HindTimes-MOU-22Jul05]; [AustrFinRev-MOU-22Jul05]; [InsightOrissa-MOU-22Jul05]; [Some-Details-from-Insight-Orissa]; [Pluses-n-minuses:rediff]; [Impact-on-infr]; [Hindu-July10-05]; [Rebuttal-to-criticisms-july15-ToI]; [FinExpr]; [Taats vs POSCO] ; [3 POSCO subunits]; [POSCO sets up subsidiary:Aug 31’05], [land-acq], [90 percent in Orissa in favour], [identifies 2 mines]
• POSCO ancillaries and Indian partners: [1:steel pipes], [2:Indian partners]
  • Editor’s comment on July 4 2005: My impession based on reading the newspapers is that Orissa govt has probably become wary of some of the big Indian players after the TATAs taking advantage of them in Gopalpur, and other companies in other places. It seems like (from reading various reports: [0:a list from 1999-how many of them materialized?], [1] , [2], [see page 3], [4] ) the TATAs signed MOUs about plants and infrastructure etc. at Gopalpur and got mining leases but then kind of forgot about making the plants and building infrastructure but have been using the mines. They used excuses, some valid, regarding this and that infrastructure not being there. [They have signed something more recently; lets see if that is for real or a sham to get mining leases renewed. Some progress in regards to their promise seems to have taken place: a; b ] The expectation was that Gopalpur would be like another Rourkela or Jamshedpur. But nothing remotely like that has happened. Coming back to POSCO, the MOU seem to have many clauses that would prevent POSCO from taking advantage of Orissa without delivering on its promises. Also, if POSCO does something like the TATAS, its easy to fight them, unlike fighting the TATAs. Even saying something bad about the TATAs is a no-no in India. [Thus the government should be careful in any of its signing with the TATAs or similar big Indian powerhouses. It should make sure that any mining lease should be tied to the other promises very tightly, and without loopholes.] So I personally am hopeful that POSCO will have a big impact on Paradeep and Orissa, more than the impact of any other private company in Orissa. Plus the investment comes from outside India, not from inside India. Thus making more capital available to other projects in India. Also the government is right to not put its egg in one basket. It makes perfect sense to try different avenues: foreign investors such as POSCO as well as the various Indian companies.
• From Steel to automobiles/2-wheelers-n-beyond: [Ind-Exp-22ndJune05]; [TOI-July4-05:Kymco,Corus]; [Pioneer-July27-05:Kwang-Yang-Motors-Taiwan], [Mahindras:TOI-Aug05-05], [Mahindra:InsightOrissa]
• Refractories: [July9-05-Telegraph]
• Alumina/Aluminium: Hindalco [1]; Vedanta [a], [b:Vedanta cares]; [Dubal-L&T]; [alumina-refinery-smelter-Rayagada]
• Titanium complex at Chhatrapur. (The Samaja Aug 16th, 2005).
• Mining: [1],
• Refinery: [1]; [IOC-Paradeep-21-6-05]; [July12-FinExp], [IOC-on-schedule]
• Breweries: [United Breweries]
• Paper: [JKPaper]
• SEZs: [1]
  • Gopalpur: [july26-05]
  • Paradeep: [july26-05]
• Power: Current availability; [list-of-possibilities-fe-july24-05], [June2-05-Reliance]; [Reliance2]; [RPG-jun2405-Tel]; [Neyveli]; [MMTC-Paradeep-Sept12-05]
• Food processing: [Shrimp-Navayuga]
• Hospitals: [Planned Heart Institute]
• Hotels: [ Statesman Aug 18’05], [Buisness-Standard- Sept9], [OTDC-disvestment]
• In relation to other states of India: [1], [2]
• Kalinganagar/Duburi: VISA, Jindal, Neelachal Ispat Nigam, MESCO, Tatas(?) [Ref:InsightOrissa]
• Factories in neighbouring states — impact on Orissa infrastructure: [Mittal-Jharkhand]
  Editor’s comment on July 27, 2005: Jharkhand and Chhatisgarh are landlocked. Mineral and manufacturing plants in Jharkhand and Chhatisgarh would need access to ports. This will provide opportunity for Orissa to make its case (get Jharkhand and Chhatisgarh legislator’s support) and make further infrastructure development such as ports, roads and railways. In particular, Dhamara and Chandabali port, train lines to them such as Tata-Baripada-Balasore-Dhamara, Bimlagarh-Talcher-Paradeep, and Daitari-Bansapani-Haridaspur-Paradeep, and roads ( Jharkhand, Orissa, Chhatisgarh) to them. While Jharkhand plants can use Haldia port in West Bengal, for Chhatisgarh the closest ports are in Orissa (Dhamara, Paradeep, and Gopalpur). Since Haldia port is overloaded, even for Jharkhand easy accessibility to Orissa ports is important. [a step in this regard], [another step]
  28th July 2005: Orissa, Jharkhand and Chhatisgarh should come together and jointly pursue several things. For example, an IIT in Rourkela (which has the best NIT among the three states) would benefit all the three states, as Rourkela is very close to both Chhatisgarh and Jharkhand. In return Orissa can support for an IIM in Bilaspur or Raipur. Good road and railway connectivity from Chhatisgarh and Jharkhand to Orissa ports will be beneficial to all. The three states can jointly promote cultural tourism to the tribal areas of the three states.
• Policies: [1]