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Economic Times reports that Tata Steel has put in an order of 4000 crores for its Kalinganagar steel plant. Following are some excerpts from that report.

Tata Steel’s ambitious 6-million-tonne-per-annum project in Orissa, central to its synergy plans with subsidiary Corus, has finally taken off with the company placing orders worth Rs 4,000 crore for the upcoming steel plant. 

The company, the largest steel manufacturer in the country, had signed an MoU with the Orissa government in 2004 for setting up a Rs 15,000-crore complex that will produce slabs and hot rolled coils.

Opposition from locals and official apathy delayed the project which was to come up in the Kalinganagar Industrial Complex of Jajpur district. …

In two separate announcements earlier this week, L&T said it is supplying and installing sinter plant and blast furnace valued at Rs 1,070 crore and Rs 980 crore, respectively for Tata Steel’s project.

Apart from the sinter plant and blast furnace, the company has also placed orders for steel melting shop and slab caster. “The total value of orders placed is over Rs 4,000 crore. We expect to start construction by the year end or early next year,” said Tata Steel spokesperson.

He added that the first phase of the project is expected to be commissioned by 2010. “Tata Steel Parivar — the resettlement and rehabilitation scheme — is underway. Around 600 families have been rehabilitated under the scheme,” said the spokesperson. The company has been allotted 3,400 acres for the steel project .

Myiris and others report on this. Following is an excerpt.

Larsen & Toubro (L&T) announced on Monday that the company led consortium  bagged orders worth Rs 10.70 billion for supply & installation of Sinter plant and other packages from Tata Steel.

Tata Steel is setting up an integrated steel plant with capacity of 6 million tons per annum (MTPA) in Kalinganagar industrial complex at Duburi in Jajpur district of Orissa to be completed in two phases of 3 MTPA each. The orders are for the first phase of this greenfield project.

Sinter Plant

L&T in consortium with Outotec, Germany bagged EPC (engineering – procurement – construction) contract for 5.75 MTPA Sinter plant valued at Rs 8.36 billion. The company`s share of this order is Rs 6.23 billion. This would be the single largest Sinter plant to be built in India. This is scheduled for completion in 30 months.

Steel Melt Shop

L&T has also been awarded the contract for civil and structural steel works of steel melt shop valued at Rs 2.33 billion. This is scheduled for completion in 28 months.

Recently there were some reports on Greenpeace’s opposition to the Dhamara port. Following are some excerpts of a news report that talks about Tata Steel’s response.

India’s Tata Steel Ltd said it will go ahead with its 24.6 bln rupee joint venture with Larsen & Toubro to set up an all-weather port at Dhamra, in the eastern Indian state of Orissa.

Tata Steel spokesperson Yogesh Joshi said the company had no intention of abandoning the project and said work will continue as usual. …

Dhamra port is crucial for India as traffic is projected to grow to 2 bln tonnes by the year 2016, and all the ports of the country put together are presently handling only 760 mln tonnes.

Sheltered between the mainland and the Kanika Sands Island on the eastern coast, Dhamra port will be the deepest all-weather port of its kind in India, with a draught of 18.5 metres. It will be able to accommodate super cape-size vessels of up to 180,000 dead weight tonnes.

The following article from Samaja lists the various steel plants in operation and under construction in the Kalinganagar area. They are: Nilachal Ispat Nigam Limited, Jindal, MESCO, VISA, JK Steel, Rohit, Dinabandhu and Maithan which have started production; and Tata Steel which is in preparation.

Following is a roundup on HRD related postings at orissawatch.org.

• Foundation For Excellence (FFE) gave 264 scholarships to students from Orissa
• Orissa engineering colleges in Outlook India ranking
• NISER deadline for submitting application form is extended till June 15 2007
• Chennai B-school in Bhubaneswar and Plan for Insurance University in BBSR
• Specialized government management institutions of Orissa
• Branch changes allowed after first year at NIT Rourkela
• Status of private Medical Colleges in the State
• M.Tech and M.Arch programs in Orissa
• KIIT has approval for 100 Medical (MBBS) and 100 Dentistry (BDS) seats.
• Institutions with Nontraditional programs – a dated list
• Biju Patnaik Film and TV institute advertises for admission into its programs
• Apparently Orissa students are doing well in medical entrance exams
• Tathya: Please no politics over IIT
• Pursuing M. Ed in Orissa
• Ranking of Engineering Colleges in Orissa based on student preferences
• Nursing Schools catch on in Orissa
• TCS recruits 1100 students from Orissa engineering colleges

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

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.

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]