___________

Note: There are often many PR related activities by Vedanta and we usually don’t cover them. But this is an exceptional act of good citizenship on the part of Vedanta when the state is going through an extremely difficult time with respect to its power situation. The excerpts below are from an article by journalist Nageswar Patnaik, who is often very critical of industrial houses. Coming from him, this reinforces the genuineness and the importance of this good action by Vedanta and thus needs to be highlighted.

This should be contrasted with the Jindal group, which was reported to have violated the agreement it signed with Orissa government, and siphoned off extra power, until it was stopped by the high court.

Vedanta Group has finally come to the rescue of Orissa which is currently facing an acute power shortage due to scanty rainfall and "almost dried-up" reservoirs and breakdown of certain thermal power units in the state.

The London-based company on Thursday announced to provide 200 MW power daily to the state grid from its own power plants with immediate effect.

Vedanta has managed to get a better price for offloading power to the grid at the rate of Rs 3.60 per unit against the current Rs 3 per unit bought by the state from the CPPs.

In fact, Vedanta had been providing 115 MW of power from its Group Company BALCO in Chattisgarh to Orissa since July 4 by depriving its own smelter.

"Looking at the continuous demand in the state, Vedanta extended its supply with effect from July 9 from Jharsuguda and has managed to provide additional 100 MW of power to the state grid. The total capacity provided by Vedanta will cover up to the tune of one third of overall power shortage in the state," a source in the company said.

This was accomplished in the face of severe challenges, including shortage of coal and non availability of railway "rack," Mr Siddiqi said, assuring, to stand solidly behind the state in all its critical times.

On an average, Orissa’s daily requirement is around 2400 MW, which goes up to 2,800 to 3,000 MW during the peak hours in the evening. The state has a combined installed capacity from hydel projects to the tune of 1,900 MW. But they are generating around 1,000 MW.

Orissa is passing through power crisis forcing the authorities to restrict load restriction on industrial users by 50% among other measures to tackle the situation.

The state is facing shortage of power by 300 MW on an average and 450 to 500 MW at peak time. The delayed monsoon made things worse while the breakdown in the coal fired power plants operating in the state added to the crisis.

The VAL has set up a Greenfield alumina refinery in Orissa’s Kalahandi district with a capacity of 1 million tons per annum. It is also setting up a 0.5 MTPA aluminum smelter, 1215 MW captive power plant at Jharsuguda.

The Group Company Sterlite Energy Limited is also setting up a 2400 MW Independent Power Plants at Jharsuguda.

Following is an excerpt from a report in Indopia.

  … "The first phase with 0.8 Mtpa capacity is expected to be commissioned by June-July, 2010. Work for the stainless steel plant is going on in full swing,"JSL Vice President and Managing Director Ratan Jindal told reporters after meeting Orissa Chief Minister Naveen Patnaik.

Though there has been some delay in the Rs 6,500 crore project …

Once the first phase is commissioned, work for the next phase would be expedited to achieve the 1.6 Mtpa capacity at the earliest.

… He said 50 per cent of the electricity generated from the captive power plant (cpp) of the company is being provided to the state government.

On the proposed 1,000 mw thermal plant to be set up in Dhenkanal, Jindal said details were being worked out for the project.

Tathya.in has a few statements on the simple style of Billionaire owner Ratan Jindal.

Ratan, in fact, known for his down to earth approach and simple life style.

He like others never moves in his personal jet and does not shows off his wealth, said an industry watcher.

He simply moves in Jetlite or Indigo with a few of his officers.

Ratan Jindal is the one of 4 sons of late O. P. Jindal. His mother is a minister in the Harayana state government and one of the brother Naveen Jindal is an MP. There are many colleges and a university with O. P. Jindal’s name. This includes the:

• O. P. Jindal Global University in Harayana with Jindal Global Law School as its first school
• O. P. Jindal Institute of Technology in Chhatisgarh under the aegis of Jindal Education and Welfare Society

The Orissa government should push Mr. Ratan Jindal for an engineering college and a medical college in Orissa.

Following is an excerpt from a report in http://www.mydigitalfc.com/companies/tatas-hire-singapore-firm-sez-273.

Tata Realty & Infrastr-ucture (TRIL), Tata Group’s real estate and infrastructure development arm, has hired Singapore-based Jurong International as the master planner for its special economic zone (SEZ) project in Gopalpur (Orissa).

“We have shortlisted Jurong for this important project,” said a Tata group official. Jurong offers design and build, consultancy, construction, and facilities management services and its India office is located in Hyderabad.
The multi-product SEZ, with all infrastructure facilities and required amenities, will cost the group nearly $ 1billion.
So far, Jurong has done master plans for 380,000 hectares, 10 million square meters of industrial land and 5.8 million square meters of residential space.

The SEZ in Gopalpur will focus on minerals, mining and associated industries. At present, Tata Steel possesses the land slotted for SEZ. In 1995, Tata Steel acquired the land for Rs 150 crore to set up a 2.5 million tonne per annum port-based steel plant in Orissa and spent. This plan had to be abandoned due to lack of amenities such as adequate water and iron ore linkages at the site. Now, Tata Steel is putting up a multi-million tonnes per annum steel plant at Kalinganagar in Orissa.

We plan to focus on industries that are downstream value-added in the metals and minerals space and allied industries such as gem and jewellery for the SEZ, which is planned to come up in 2,900 acres. The land is already in our possession and the necessary approvals are in place. So we expect that this development will not face any land acquisition related problems,” a TRIL official told Financial Chro-nicle.
“The positioning of the SEZ has been made keeping in mind the advantages of the local area and infrastructure such as a functioning port that’s capable of deep draught, an air strip and railway slidings that could be utilised by the industrial units in the zone,” added the official.

I hope this is for real and not because TATAs are due for some mining lease renewal. They have been accused of using such strategy with Orissa during mining lease renewal times.

Following is an excerpt from a report in Economic Times.

As regards Orissa projects, where 80% of the employees are from the state, we have resolved not to go for any layoff. In fact, we are appointing more and more people in our projects here,” Vedanta Group chairman Anil Agarwal told reporters here on Saturday on the sidelines of his first meeting with Orissa chief minister Naveen Patnaik after the latter swept the just concluded polls.

Mr Agarwal claimed that Vedanta had already invested Rs 25,000 crore of its promised Rs 50,000 crore investment in the state. “The rest will be spent in the next two years”, he assured.

Meanwhile, the VAL had secured Stage I clearance for mining of bauxite in Niyamgiri hills to feed its Lanjigarh project. …

Mr Agarwal also stated that Vedanta had got coal block for its Jharsuguda smelter project and it will soon start coal mining. To a query on the University project, Mr Agarwal said: “We are going to start our university project very soon.”

Mr Agarwal hoped that the state government would soon pass the Vedanta University Bill in the Assembly. “We have already submitted all papers to the state government required for passing of the Vedanta University Bill. I hope it will be passed in the House shortly,” he added.

He informed that Anil Agarwal Foundation – which is setting up a world class university at Puri that includes a 1000-bed hospital – will have its extended centre in Bhubaneswar. “During the meeting, the CM was contemplating if we have can have an extended centre of our hospital project in Bhubaneswar to set up a trauma centre for burn and coma patients. We have in fact agreed for it,” he said.

Following is an excerpt from a report in Business Standard.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Following is from a report in Business Standard.

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

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

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

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

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

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

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

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

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

Following is from Sambada. It reports that Jindal Steel of Kalinganagar is trying to give its extra power to its plant in Harayana against the agreement that the state of Orissa has the first rights to get that extra power. The Orissa high court was approached on this and it has put a stay order on this. Industrialists should realize that such attempt to steal from a state, that too a poor state like Orissa, is what gives the whole conecpt of industrailization a bad name.

Following is an excerpt from a report in Telegraph.

The government has awarded the country’s first two coal-to-liquid-petroleum projects to the Tatas and Jindal Steel and Power.

Both the projects, estimated to cost $6-8 billion each, will come up in Orissa.

The Union coal ministry has allotted the Ramchandi block to Jindal Steel and Power Limited (JSPL) and the north Arkhapal block to Strategic Energy Technology Systems Ltd, a 50:50 joint venture between Tata Sons and Sasol of South Africa.

…Jindal Steel will use the technology of Germany’s Lurgi, while the Tatas will depend on Sasol’s expertise.

In each project, annual production is estimated at four million tonnes based on the daily production of 80,000 barrels.

The process involves the gassification of coal to produce synthetic gas, which is then converted to crude through different technologies.

Given the quality of Indian coal, crude from this process will cost $55-60 a barrel, about 50 per cent more than the current price of $40 a barrel.

However, the project will take at least six years to take off, and crude prices are likely to rule higher than the current levels.

“When a project of this magnitude is being conceived for 25-30 years, one does not only look at current economics,” a JSPL official said.

The process also involves the washing of coal, and the waste thus produced will be used to produce power. JSPL said the project would help it generate 1,350MW of power.

The crude oil produced from coal is expected to be low on sulphur. The bulk of the fuel will be diesel, which is consumed 5 times more in India than petrol.

JSPL’s proposed unit will be located at Kishore Nagar in Angul district of Orissa. The site has been selected keeping in mind the availability of water and rail and road connectivity.

…  JSPL is also building a 6mt steel plant at Angul. Tata Steel, too, plans to set up a unit in Orissa. JSPL said it had already placed the order for two coal gassifier units for the upcoming steel plants at Angul and in Chattisgarh.

Following is excerpted from a report in Indopia.

The Orissa government today formally approved investment of about Rs 35,000 crore in the power and steel sectors of the state. The high-level clearance authority (HLCA) chaired by Orissa Chief Minister Naveen Patnaik gave green signals for the investment in five power projects and one steel unit.

… The HLCA approved investment in five proposals in the power sector and one steel project, Garg said adding that altogether the projects would provide direct employment to over 6,000 people.

The projects, which got HLCA nod were – Visaka Thermal Power Limited (1100 MW), Sahara India Private Limited (1,320 MW), L&T (1,680 MW), JSPL (1,320 MW) and Ind-Bharat Limited (700 MW).

The HLCA approved JSPL&aposs another proposal of further investment in its proposed 6mtpa steel mill at Bainda.

JSPL, which had earlier proposed to invest Rs 13,135 crore in its steel project could now invest Rs 22,420 crore.

Following is from a report in Business Standard.

The State Level Single Window Clearance Authority (SLSWCA) headed by Orissa chief secretary Ajit Kumar Tripathy today approved 2 thermal power projects with combined investment of Rs 16,140 crore.

This includes 1680 Mw thermal power project proposed by L &T with an investment of Rs 10,200 crore near Dhamra in Bhadrakh district and 1000Mw thermal power plant proposed by Jindal Steel and Power Ltd (JSPL) at Bainda in the Dhenkanal district with an investment of Rs 5940 crore.

SLSWCA, which considered 10 proposals in the power and steel sector today approved 2 proposals, rejected two proposals while deferring its decision on the remaining 6 proposals.

The two proposals which were rejected are Surya Chakra Power Company proposing to set up a thermal power plant at Balasore and Adhunik power proposing a thermal power plant at Banto in Bhadrakh district.

Talking to the media after the meeting, A K Meena, managing director, Industrial Promotion and Investment Corporation Ltd.(Ipicol) said, due to the non availability of water in different locations some proposals have either been rejected or deferred.

He said, SLSWCA approved the proposal of the L&T Ltd. subject to the condition that the company will use sea water for its plant. Besides, it will have to withdraw the case filed against Orissa government regarding the iron ore lease. It has been suggested that the company will be allowed to sign the memorandum of understanding (MoU) with the state government only after it meets the above two conditions. Similarly, SLSWCA recommended the proposal of the JSPL for setting up a thermal power plant subject to the participation of the company in the creation of water storage capacity in river Mahanadi. The proposals which were deferred are those of Tuff Energy, Tata Sponge Iron Ltd., JR Power Gen Ltd., Poysa Power Project Ltd., Jindal India Thermal Power (capacity expansion) and Lanco group (capacity expansion).

Following is an excerpt from a report in tathya.in.

… Mr.Agarwal impressed upon the Chief Minister that his group is eager to expand the .50 million ton smelter in Jharsuguda to a 1.6 million ton per annum (MTPA). 

Naveen Patnaik, asked the Chief Secretary to look into the matter finalize the expansion program, said sources. 

Mr.Agarwal updated the Chief Minister about the status of Vedanta’s ongoing projects in the state here on 3 January..

The Alumina Project at Lanjigarh, Smelter and Power Projects at Jharsuguda and the University project at Puri is being implemented by the Vedanta group.

On Corporate Social Responsibility (CSR) front, adoption of 400 anganwadis, providing education for 14000 children at Kalahandi are being implemented, briefed Mr.Agarwal.

Mr. Agarwal agreed to extend the coverage to 40000 children and agreed to introduce the Mid Day Meal scheme for 30000 primary and the secondary level school student in the state through Nandi and Sterlite Foundation as the Chief Minister requested him.

He also announced a 100 bedded state-of-the-art multi-speciality hospital at Jharsuguda will provide medical facility to the local people.

Chairman Vedanta group reiterated his earlier commitment to build a 1000 bedded super-specialty hospital at Puri.

It was also informed that the design and the engineering has been completed and construction is to begin soon.

In addition Mr Agarwal put forth his plans of setting up of a downstream Aluminium Park in collaboration with the government to promote as many as 600 small and medium scale industries at Jharsuguda. 

The project will generate large scale employment opportunities and additional economic activities in the region.

Currently the Vedanta Group’s investment commitments are in excess of Rs 50,000 crores, half of which has already been invested in various projects of Orissa.

Vedanta is presently generating a huge number of direct and indirect employment for approximately 25000 people, eighty percent of which belong to the state of Orissa.

After the meeting the CM, Mr Agarwal told reporters that all the ongoing projects of Vedanta would continue as per schedule in spite of the recent global recession.

He also assured that in his personal capacity he would make all possible efforts to complete the Vedanta University Project, a world class University at par with the Havard and Stanford University of U,S.A.

He has already committed personal contribution of Rs 5000 crore towards this project.

Following is a one year old report from Steelguru on Gopalplur SEZ which I had missed.

TATA Steel has announced setting up of up a galvanizing and color coating line with a capacity of 150,000 tonnes at an investment of INR 250 crore at the special economic zone proposed by TATA Steel and notified by the Union government at Gopalpur.

Mr B Muthuraman MD of TATA Steel told media that “It would be a multi product SEZ and as a first step, TATA Steel had decided to set up the galvanizing line. TATA Steel was looking to rope in partners to develop the infrastructure for the project.”

He said “We are looking for partners who will promote infrastructure within the SEZ. It will be a multi product SEZ, and the project should take about 24 months to be implemented.”

Following is from a report in Steelguru.

BS reported that cargo handling capacity is projected to be 14 million tonne per annum from the 0.55 million tonne envisaged for the first phase. It will have 5 berths including one exclusive berth for aluminium by 2011 and 10 berths by 2016. Similarly, the number of ship calls per day is projected to increase to 1,451 by 2016 from about 333 likely to be achieved by 2011.

According to official sources, the company submitted the detailed project report for developing an all weather port at Gopalpur having direct berthing facility to the Orissa government recently. Though INR 20 crore was proposed to be invested by GPL in the first phase, it has already spent about INR 78 crore on making the port functional.

During the second phase, the port will have facilities to handle export cargo of ilmenite sand, iron ore, thermal coal, bauxite, granite, steel coil, aluminium ingots and import cargo of fertilisers, aluminium powder, coal, coke, rock phosphate and foodgrain.

As per report, cargo handling capacity is projected to be 5.6 million tonne in the first year of operations and increase to 8.9 million tonne in the second year. Similarly, it is projected to have a cargo handling capacity of 9.3 million tonne in the third year and 13.5 million tonne in the fourth year. The final cargo handling capacity of 14 million tonne is likely to be achieved by the fifth year of the commissioning of the port.

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

The State-level single window clearance authority (SWCA) today gave approval to nine project proposals worth over Rs 13,000 crore.

The Ashapura Minechem Limited, the largest multi-mineral solution provider in the country and the flagship of Ashapura Group, has evinced interest to set up mineral separation plant in Puri district with an investment of Rs 910 crore. The plant will separate minerals from beach sand and it will produce titanium dioxide, widely used in paints. The project will create employment opportunities for 300 persons, Industries Secretary Ashok Dalwai told mediapersons.

The other new proposal cleared by the SWCA was a 1.2 million tonnes iron ore beneficiation and pelletisation plant by Jaiswal Nicco Industries at Harmote near Barbil in Keonjhar district. The company planned to invest Rs 452 crore and the proposed project would generate employment opportunities to 500 persons.

The proposal of Jindal Steel and Power Limited (JSPL) for capacity addition to its existing steel plant from two million tonnes to six million tonne was also approved. The steel production of the plant will be 3 million tonne through DRI (sponge iron) route and another 3 million tonnes through blast furnace route. The company has also proposed to increase the capacity of its thermal power plant from 900 mega watt to 1080 MW. The total investment of the company will increase from Rs 13,135 crore to Rs 22,440 crore.

The authority also cleared the expansion plan of International Mineral Trading Company having a pelletisation plant at Barbil in Keonjhar district. The company proposed to set up an iron ore beneficiation plant of 1.5 million tonne capacity with an investment of Rs 175 crore.

The BRG Iron and Steel Company at Khurunti in Dhenkanal district proposed to increase its steel production capacity from 0.257 MTA to 1.2 MTA with an investment of Rs 960 crore. The project has received environmental clearance.

Shree Metallics also proposed to increase its steel plant capacity from 0.25 MTA to 0.98 MTA with an investment of Rs 709 crore. The other expansion projects include Grewal Associates sponge iron plant at Barbil to 0.25 MTA steel plant and a 15 MW power plant, Dinabandhu Steel and Power for a 0.26 MTA steel plant with 25 MW power plant and Ganesh Metallics for 0.25 MTA steel plant with 16 MW captive power plant.

Following is an excerpt from a report in Business Standard.

… the proposed software development centre of IT major Tata Consultancy Services (TCS) will be inaugurated on January 5 next year. The first tower of TCS which will be inaugurated in the city’s Infocity campus will have a capacity to accommodate around 1,500 employees.

“… Wipro’s second campus in the city is also scheduled to be inaugurated within a month”, said Vishal Dev, director, IT department of the Orissa government at an International Conference on IT, held at the Xavier Institute of Management.

TCS is developing its software centre in the city on a 54-acre plot in the Infocity campus. While the first tower of TCS is scheduled to be inaugurated early next month, the company is expected to add two to three towers within three months.

Following is an excerpt from a report in Business Standard.

The combined area required by these units has now been assessed at 33,268.5 acres, 16.48 per cent less than the 37,750 acres envisaged in the memoranda of understanding (MoUs) between these companies and the state government.

The state-owned Industrial Promotion and Investment Corporation of Orissa (Ipicol) had appointed MN Dastur & Co as consultant to prepare a report on the land requirement of various industries after receiving complains about companies demanding more land than they needed for the projects.

Ipicol, based on the report, has reassessed the land needs of the projects. The mega units that have been affected include Posco India, Jindal Steel and Power, Mittal Steel (India), Uttam Galva Steels, Sterlite Iron and Steel, and Bhushan Steel.

On the other hand, there has been no reduction in the land requirement of four mega units — Essar Steel Orissa (2,500 acres), SSL Energy (2,000 acres), Tata Steel (3,500 acres) and Welspun Power and Steel (2,200 acres). Out of the total land requirement, these steel companies have already applied for allotment of 32,034.9 acres, sources say.

Posco India, a subsidiary of South Korean steel major Posco, had sought 6,000 acres in the MoU signed with the state government in 2005 for its proposed 12-million-tonne per annum project near Paradip in Jagatsinghpur district. Ipicol, based on the Dastur & Co report, has reassessed the land requirement at 5,525 acres. The company has so far applied for 5,151 acres. While the state government has allotted 516 acres of its land to Posco, the company has already invested Rs 175.5 crore.

Jindal Steel and Power Ltd, which is setting up a six-million-tonne per annum steel project at Kerajang, needed about 5,750 acres. This has been cut to 3,843.5 acres by Ipicol. The company has applied to the Orissa government for 4,027 acres and has been allotted 1,719 acres. This includes 687.93 acres of government land and 1,031.85 acres private land. It has invested about Rs 765.46 crore in the project so far.

The land requirement of ArcelorMittal, which is planning to set up a 12-million-tonne greenfield steel project at Patna tehsil in Keonjhar district, has been reassessed at 7,750 acres. The company had sought 8,000 acres in the MoU. It has applied for 7,770 acres and has invested about Rs 50 crore for the project.

Similarly, the land requirement of Uttam Galva Steels, which is setting up a three-million-tonne steel project at Bistapal, has been reduced by 250 acres. While the MoU provided for allotment of 2,400 acres, Ipicol has reassessed this at 2,150 acres. The company applied for 2,146 acres and has been allotted 27.81 acres so far. The company has invested about Rs 35 crore for the project.

The three-million-tonne steel project planned by Sterlite Iron and Steel at Palasponga will have to manage with 1,000 acres less land than what was provided in the MoU. The company’s land requirement has been re-assessed at 2,400 acres. The company had applied for 3,378 acres, though has not been allotted any land so far.

The estimate of land needed by Bhushan Steel for its six-million-tonne per annum steel project at Meramundali in Dhenkanal district has been reduced by 600 acres. Though the company was to be provided 2,000 acres according to the MoU, Ipicol has reassessed the requirement at 1,400 acres. Bhushan Steel had applied for 1,994 acres and has been allotted 1,620 acres. It has invested Rs 5,000 crore in the project.

Following is  from a report in Economic Times.

MUMBAI: Larsen & Toubro shares edged higher Tuesday after it won orders worth Rs 1372 crore from aluminium and steel makers.

The orders were received from Vedanta Aluminium, a part of Vedanta group, Utkal Alumina International and Bhushan Steel, it said in a statement.

The Rs 516 crore order from Vedanta Aluminum was for setting up of a 3 million tonne per annum alumina refinery at its Lanjigarh plant in Orissa. Utkal Alumina’s order was worth Rs 455 crore in which the engineering and construction firm would set up a 1.5 MTPA green field alumina refinery at Doraduga in Orissa.

Furthermore, L&T has secured an order worth Rs 401 crore from Bhushan Steel for civil, structural, equipment, erecting and piping works at Angul in Orissa.

From their descriptions these outlets sound similar to the Home Depot, Lowes kind of stores in the US. Following is an excerpt from a report in Economic Times.

Eyeing the fast growing construction market, leading cement company Ultratech is planning to open 400 new unique retail outlets across the country, including many more in Orissa soon.

…  Ultratech Cement Ltd (UCL), a part of India’s global conglomerate Aditya Birla group, has opened five UBS retail outlets in Orissa’s Bhubaneswar, Puri and Cuttack.

This was the first ever entry of UBS retail outlets in the growing construction markets of Orissa and the company plans to open many more such outlets in the state.

Its 89 existing outlets are currently operational in states like Gujarat, Haryana, Tamil Nadu and Maharashtra and plans are afoot to add six more states due to the success obtained in the existing ones, according to UCL’s chief marketing officer O P Puranmalka.

As many as 400 such outlets are planned to be opened across the country in 2009 offering a wide spectrum of end-to-end home-building solutions, high quality construction materials and allied value-added services, he said.

Describing UBS as a unique concept, he said in a release it was being launched in a big way in Orissa, a fast growing construction market in the eastern region.

Advocating our ‘plan, build and support’ philosophy, it seeks to enhance the shopping experience of the customers as well as to strengthen existing trade partnership by upgrading the service proposition, he said.

At UBS outlets, visitors can get reputed brands of all construction materials including cement, aggregates, bricks, tiles, sanitary fittings, paints, water-proofing compounds and white cement, the release said.

The outlets also provide value added services including mobile concrete testing vans for conducting quality tests as well as architects, contractors, vaastu consultants and other construction personne.

They have technical teams which train masons and contractors besides offering advice on legal formalities and plan approval procedures.

Following is excerpted from a report in Business Standard.

With Orissa witnessing a rush of investment proposals in the iron and steel sector, the domestic and overseas steel majors are exploring the possibilities of developing small and medium enterprises (SMEs) around the large units proposed by them.

Tata Steel is developing a six-million tonne greenfield steel project at Kalinga Nagar, the emerging steel hub of the country. The firm has identified business opportunities worth Rs 12,000 crore in the ancillary and downstream units.

“The opportunities for ancillary and downstream units exist in the areas of operations and maintenance, core specialised services, support specialised services, processing and township management, to name a few. There can be different working models for development of local SMEs as ancillaries and downstream units. One such model includes Tata Steel and other steel majors working together with their ancillary partners in Orissa,” said K Shankar Marar, assistant general manager, (steel technology, at Tata Steel’s Kalinga Nagar project.

…  Another steel major, JSL, (formerly Jindal Stainless Limited), is keen on developing an industrial park based on downstream stainless steel industries, spread over an area of 300 acres as a part of its SEZ (special economic zone) in Orissa’s Jajpur district.

The SEZ is being developed at an investment of around Rs 700 crore. JSL has engaged US-based consultant CB Richard Ellis for developing a business plan for the project wherein opportunities for downstream industries will be explored.

The SEZ is set to provide direct employment to 3,800 workers besides generating indirect employment for 1,200 others.

Posco which has announced an investment of about Rs 52,000 crore for a 12 million tonne steel plant near Paradeep is also committed to development of ancillary and downstream units and the steel giant has engaged IIT-Kharagpur for a study on the opportunities that exist in this area.

According to a study conducted by IIT-Kharagpur for Posco India, opportunities for SME entrepreneurs exist in the areas of structural steel, ready mixed concrete, refractory, steel and concrete piles, pipes, propeller shafts and furnace building to name a few.

According to the study, opportunities also exist in other operational areas like steel probes, mould flux, thermos materials, manufacture and fabrication of structures, conveyor belts and electrical equipment repairs.

The study adds that business opportunities worth Rs 320 crore exist in the area of refractory, Rs 44 crore for cement, Rs 2.5 crore in hydraulic hoses and Rs 4 crore in wire rods. The first phase of Posco India’s project would generate 35,728 labour intensive jobs and another 30,420 technology intensive jobs.

… Aarti Steel has already started its efforts for developing SMEs as ancillaries for its steel plant in the state.

“We have sourced items and spare parts worth Rs 37 crore from 47 local partners till March 2008. Aarti Steel plans to develop two forging units adjacent to its steel plant for the benefit of the local entrepreneurs and we have approached IDCO to provide land for these units”, said a senior official of Aarti Steel.

On its part, the Orissa government plans to incorporate a clause at the MoU (memorandum of understanding) level with the private steel players to ensure that the mother industries will make necessary efforts for development of ancillary and downstream units.

The efforts made by the steel units to develop the ancillary units will be monitored by officials like district collectors and revenue district commissioners.

Steelguru.com gives some specifics of the SME/MSE impact with respect to Tata Steel’s Kalinganagar plant.

BS reported that the 6million tonne per annum greenfield steel project proposed by TATA Steel in Kalinganagar will require maintenance support services worth INR 1,200 crore when fully commissioned. These services will be outsourced by the company and are expected to create huge opportunities for the small and medium enterprises in Orissa.

The services to be outsourced include warehousing, machine shop, electrical repairing shop, fabrication shops, electrodes and lubricant suppliers, waste management, mechanized material handling and hospitality among others. Since the maintenance cost is about 4% of the total investment in steel industry, this is expected to create huge opportunities for the small and medium enterprises.

Mr B K Singh VP Orissa project of TATA Steel said that "We will invest about INR 30,000 crore in the Kalinganagar project in phases and will require maintenance support services worth INR 1,200 crore.”

He added that the group will work towards developing the local entrepreneurs and will provide assistance to anyone who wants to be a partner in TATA Steel’s business. He added that TATA Steel will give the first right of refusal to local industries in the maintenance support services.

Following is from a report in Steelguru.com.

BS reported that Orissa will set up a captive port at Chudamani in Bhadrakh district and an all weather multi user port at Ashtaranga in Puri district. It will sign MoUs with Essel Mining and Industries and Navyug Engineering, respectively for them.

Hyderabad based Navyug plans to invest INR 1,900 crore in the first phase for setting up the port at the mouth of the Devi river. While INR 1,500 crore will be invested for the port, INR 400 crore will be spent on railway connectivity. It will have a cargo handling capacity of 20 million tonnes per annum in the first phase.

Essel Mining will invest INR 1,500 crore to develop a port under a consortium of Aditya Birla Group companies for movement of cement, iron ore, thermal coal, limestone, gypsum, clinker, copper.

According to sources, it will have a cargo handling capacity of 2 million tonnes initially, to be enhanced to 10 million tonnes over a period of time.

A senior official of the state commerce & transport department said that "The chief minister has approved the proposal to sign MoUs with these two companies."

Following is an excerpt from a report in Business Standard.

The Anil Agarwal-owned Vedanta group has made substantial headway in land acquisition for its three projects in Orissa which entail a combined investment of over Rs 30,000 crore.

The group needed 11,700 acres for its university at Puri, an alumina refinery at Lanjigarh, and its smelter and power project at Bharkhamunda near Jharsuguda. It has already acquired about 7,515 acres.

The total land needed for the Rs 15,000-crore university is 6,000 acres. The company has to date acquired 3,155 acres and taken possession of 2256.49 acres, which includes 385.15 acres of government land and 1871.34 acres of private land.

… Vedanta Aluminium has acquired the 2,000 acres it needed in Lanjigarh in the economically-backward Kalahandi district for its one-million-tonne-per-annum (MTPA), Rs 4,000-crore alumina refinery. Besides, it has got 80 per cent of the 200 acres needed for a rail corridor for the project.

“About 80 per cent of the 200 acres needed for the railway link has been acquired. We hope to complete the process very soon”, said Mukesh Kumar, chief operating officer, Vedanta Aluminium.

In a relief to the company, the Supreme Court recently cleared the diversion of 660.749 hectares of forest land for mining bauxite in Niyamgiri hills in the Kalahandi district.

While the mining plan has been approved by the Indian Bureau of Mines, the company hopes to start operating the mine in the next four-six months. However, it will have to get clearance from the Union Ministry of Environment and Forests.