___________

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

Jay Panda is very happy today.

Member of Parliament from Kendrapara is in high spirits because finally the NO-Industry District, Kendrapara will have a major power plant.

Thanks to the initiative of SPI Ports Private Limited (SPIPPL), a Tamil Nadu based conglomerate.

The State Level Single Window Clearance Authority (SLSWCA) has cleared the 1320 megawatt (MW) coal based thermal power plant at village Alailo in Mahakalpada tahsil.

… The Tamil Nadu based company is part of SPI Group involved in Steel, Power Generation, Infrastructure Development, Entertainment, Distilleries and associates are involved in food processing.

A patch of land of 1185 acres of non-irrigated land has been identified for the purpose, which is free from habitat and away from Command Area.

However requirement of land is only 750 acres and 60 cusecs of water is available from adjacent Gobari Canal.

Annual coal requirement for the project is 4.17 million ton for 1320 MW.

An annual contribution of 6 paise per unit of the energy sent out from the plant, but not sold in the state to be made by the developer towards Environmental Management Fund.

… Company has shown interest in setting up agro based industry in the area.

The article is correct. MP Jay Panda has been trying his best to locate industries in Kendrapada. We congratulate him on his success.

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

The State Level Single Window Authority (SLSWA) chaired by the Chief Secretary green signalled projects worth of Rs.37,440 crore.

Expansion of Alumina Refinery at Lanjigarh in Kalahandi from the existing 1 Million Ton Per Annum (MTPA) to 6 MTPA has been allowed.

This project is facing opposition from local people and Union Minister for Forest & Environment, said sources.

Aluminium Smelter at Jharsuguda from the existing 0.25 MTPA to 1.60 MTPA expansion allowed by the Authority, said an official.

Similarly expansion of the Captive Power Plant (CPP) at Jharsuguda from 675 MW to 1350 MW has been allowed, said sources.

These proposals were pending earlier and with the clearance of Single Window Authority, it will go to the High Level Clearance Authority (HLCA) for final clearance, said an official.

Following is an excerpt from a report in Financial Express.

AES India, a subsidiary of the US utility giant AES Corporation, is proposing to expand the capacity of the 420 MW (2 x210 MW) ITPS by adding two super-critical units of 660 MW each. The Rs 10,000 crore expansion programme includes the development of the captive coal mines and the MGR (merry-go-round) rail link to transport coal to the plant site. In fact, ITPS is owned by Orissa Power Generation Corporation (OPGC), a company where the AES Corporation has 49% stake while the Orissa government has 51% holding. However, the management of the company is with AES Corporation.

… The AES chief said that the 1320 MW (2 x 660 MW) thermal power project would be completed within four years of the award of the contracts. The two units would come up on the site III and IV already developed for the purpose.

… Presently, OPGC is committed to sale the entire 420 MW of power to the state government. As the initial plan was to put up two more units of 210 MW each at site III and IV, the state government insisted that the power generated from the expanded units be allotted to Orissa. However, the AES was of the view that the power be sold in the open market to maximize the revenue realizations. Finally, it has been decided that 50% of the power generated from the expanded 1320 MW project would be allotted to Orissa grid and the rest would be sold in the open.

Following is from a report by Bishnu Das in Business Standard.

The Orissa government has approved nine more solar power projects with an aggregate generation capacity of 57 Mw.

The State Technical Committee (STC), headed by the secretary in the science and technology department, cleared these projects recently.

With this, the total envisaged solar power capacity in the state has gone up to 351 Mw from 294 Mw earlier.

Projects with an aggregate generation capacity of 45 Mw were approved under the Bundling Scheme for Solar Power Plants of the Union ministry of New and Renewable Energy Sources (MNRE). Similarly projects of 12 Mws were approved under the Generation Based Incentive Scheme for Roof Top and Small Solar Generation of the Central sector utility major, National Thermal Power Corporation (NTPC).

The projects approved under the Bundling scheme included Skygen Infrabuild (P) Ltd (5 Mw), Rajratna Energy Holdings (10 Mw), MGM Minerals (5 Mw), Konark Kranti Energy (P) Ltd (5 Mw) and Sunark Solar (P) Ltd (20 Mw).

Skygen Infrabuild plans to set up a 5 Mw solar power project in Khurda district. Similarly, Rajratna Energy Holdings is interested to set up 10 Mw solar power plant in Dhenkanal district.

While the solar plants of MGM Minerals and Sunark Solar would come up in Khurda district, Konark Kranti Energy proposes to locate its unit Dhenkanal district.

On the other hand, four projects cleared under the Roof Top and Small Solar Generation scheme of NTPC included 3 Mw plant of Sunark Solar (Khurda district), 3 Mw project of Abacus Holdings (Ganjam district), 3 Mw project of Orion Solar Projects (Cuttack district) and 3 Mw plant of Skygen Infrabuild (Khurda district).

Following is an excerpt from a report in Business Standard.

The Orissa government today signed a memorandum of understanding (MoU) with the Ratan Jindal owned JSL Ltd (formerly Jindal Stainless Ltd) for setting up of a 1320 Mw super critical plant with Independent Power Producer (IPP) status at Luni in Dhenkanal district.

The project envisages an investment of Rs 7375 crore and it is expected to generate direct and indirect employment for 2600 persons.

The company has sought allotment of 2000 acres of land through the Industrial Infrastructure Development Corporation of Orissa (Idco).

… This would be the second major project of the company in the state. The company is currently setting up a 1.6 million tonne integrated stainless steel plant at Kalinganagar. With this, the total projected power generation from the projects for which the state government has singed MoUs has increased to 32,420 Mw.

…Energy minister, Atanu Sabyasachi Nayak said, the government expects the IPPs to be able to generate 2400 Mw by the end of this year and 6450 Mw by the end of 2012-13.

Ratan Jindal, vice-chairman and the managing director, JSL Ltd said, the group is producing about 4000 Mw power at present. This is likely to increase to 12000 Mw by 2012-13, which would put the company among the major power producers in the country.

Referring to the 1.6 million tonne per annum integrated stainless steel project being set up at Kalinganagar, he said, the first phase of 0.8 million tonne would be commissioned by the end of this year. Chief secretary Tarunkanti Mishra and other senior officials were present on the occasion.

One concern I have is the land requirement of these power plants. They should reduce this as much as possible. In this regard some pointers are:

• A 2006 NEERI report.

Following is an excerpt from a PTI report.

the state-run power major NTPC is set to pump in over Rs 55,000 crore for additional capacity generation of 9,320mw by setting up two new plants and expanding the existing Talcher plant.

"Over Rs 55,000 crore will be invested in Orissa for new projects at Dadripali in Sundargarh district and Gajmara in the Dhenkanal-Angul belt and to expand the Talcher plant," NTPC regional executive director for East & North IB Pandey told reporters here today.

While the Dadripali plant, to be built in three phases, would have a capacity of 4,800mw with six units, the 3,200mw Gajmara plant would be set up in two stages, he said, adding land for them are likely to be available in about six months.

Following is an excerpt from a report in Telegraph.

… According to the draft bill, a mining company has to “allot free shares equal to twenty six per cent in the company… in case the holder of the lease (the land being taken over) is a company”. If the holder of the lease is a person, “an annuity equal to 26% of the profit after tax” has to be given as “annual compensation”.

The draft Mines and Minerals (Development & Regulation) Act, 2010, also proposes that the mining company has to provide employment and/or other assistance in accordance with the rehabilitation and resettlement policy of the state government concerned.

Government sources said they hoped the draft bill would address these issues through the “partnership” plan. “Their (tribals’) home is being taken away so how will they feel. The point is being driven home,” said an official with the mines ministry.

… The sources said the bill could come up before the cabinet for clearance in a few weeks.

The bill envisages the involvement of gram sabhas or district councils or panchayats — as the case may be — who would identify the families to be affected by mining projects, directly or indirectly, before the commencement of operations to “ensure appropriate benefits”.

“A mining welfare fund will be set up, funds from which will be only for tribal land,” sources in the government said. The plan is to create “model villages”, added an official.

The bill also proposes a mandatory Corporate Social Responsibility document to be attached to the mining plan. The document envisages a scheme for annual expenditure by the mining company on socio-economic activities in and around the mine area to facilitate self-employment opportunities.

P. Chidambaram’s home ministry, too, has come up with a plan to assuage tribal sentiments. It has proposed free power for villages within a certain radius of power plants. “People should not feel that the power generated from their land is benefiting only the rich in cities,” said a home ministry official.

…  Home ministry officials said the focus was now on “micro-management” to understand the problems of tribals. On April 30, MPs from 34 districts most affected by Maoist violence will be briefed by home ministry officials. “We can put things right in the bureaucracy, but it is the duty of MPs to go and talk to affected people,” said a source.

On policing, the ministry wants to deploy police personnel “sympathetic” to tribals.  …

1. Economic Times on 3 more terminal markets in Odisha:

Orissa government will provide four terminal market yards to enable the farmers to sell their produce at market prices…. One of the terminal has already been constructed at Sambalpur with an investment

of Rs 86 crore and three others are coming up at Cuttack, Berhampur and Rourkela,…

2. Business Standrad on MOU with five IPPs for 4800 MW power:

The cumulative capacity of these projects would be 4800 Mw and the total investment is envisaged to be Rs 23203.52 crore.

With this, the total power generation projected in the state would increase to 31100 Mw from 26300 Mw earlier.The Orissa government has already inked MoUs with 21 IPPs with an aggregate generation capacity of 26,300 Mw earlier.

… Five companies who signed the MoU included BGR Energy System, JR Powergen Private Ltd, Adhunik Power and Natural Resources Ltd, Maa Durga Thermal Power Company Ltd and Vijaya Ferro and Power Private Ltd.

JR Powergen Private Ltd would set up a 1980 Mw thermal power plant at Kishorenagar near Angul at an investment of Rs 7988 crore. BGR Energy Systems Ltd also plans to set up a 1320 Mw power plant at Bhapur in Nayagarh district at an investment of Rs 6287 crore.

Similarly, Adhunik Power and Natural Resources Ltd would set up a 1320 Mw power plant at Birmaharajpur in Sonepur district entailing an investment of Rs 8079.74 crore. All these proposals were cleared by the High Level Clearance Authority (HLCA) chaired by the chief minister Naveen Patnaik.

On the other hand, Maa Durga Thermal Power would set up a 60 Mw ((2x30Mw) power plant at Tangi in Cuttack district, involving an investment of Rs 296.95 crore. Besides, Vijaya Ferro and Power Private Ltd, planning to set up a 120 Mw power plant (IPP) at an investment of Rs 550 crore at Kesinga (Turla Khamar) in Kalahandi district.

The total land requirement for these projects have been assessed at 4360 acres and about 22,325 direct and indirect employment opportunities are expected to be created when these projects would be fully commissioned. Three projects namely BGR Energy System, JR Powergen Private Ltd, Adhunik Power and Natural Resources Ltd would source water from the Mahanadi river system, Maa Durga Thermal Power would draw water from Birupa river.Vijaya Ferro and Power plans to source water from Tel river.

3. Hindu on preliminary bids for UMPP at Bedabahal:

the government was likely to invite preliminary bids for the 4,000-MW Ultra Mega Power Project (UMPP) at Bedabahal in Orissa by April 30.

The request for qualification (RSQ) for the project may be issued by April 30.

This Bedabahal project would be the sixth UMPP project. The government has already awarded four UMPPs, of which three — Sasan in Madhya Pradesh, Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand — have been bagged by Reliance Power.

4. Sify on 595 crores for waterbody upgrade:

As many as 1817 water bodies, mostly the minor irrigation projects (MIPs) in 20 districts of Orissa, would be revitalized under the Centrally sponsored scheme of Repair, Renovation and Restoration (RRR) of Water Bodies.

These water bodies would be revitalized within a period of three years at an estimated cost of Rs 595.14 crore.

The funding for these projects would be shared between the Government of India and the Orissa government in the ratio of 90:10 for the Maoist infested, drought prone and backward districts of Kalahandi, Bolangir and Koraput (KBK).

For the other districts, the share between the Centre and the state government will be 25 per cent and 75 per cent respectively.

While the design ayacut of all 1817 projects was 2, 48,545.86 hectares, the irrigation potential of an additional 89,110.02 hectares of land would be revived through these projects, sources said.

Most of these projects under the RRR scheme are being taken up in south Orissa’s Ganjam district. About 800 projects under the scheme are to be taken up in the district at a cost of Rs 250.87 crore.

… Apart from Ganjam and KBK, the other districts where the scheme will be implemented are Bargarh, Bolangir, Gajapati, Jajpur, Kalahandi, Kandhamal, Koraput, Mayurbhanaj, Nabarangapur, Nayagarh, Nuapada, Rayagada, Sambalpur, Sundargarh, Balasore, Malkanagiri, Subarnapur, Deogarh and Dhenkanal.

The pilot project for this scheme was implemented for 137 projects in Ganjam and Gajapati districts at a cost of Rs 18.84 crore during 2005-06 to 2008-09.

5. Hindu on Japan giving 150 crores for an irrigation project:

Japan will also give … over Rs 150 crore for Rengali irrigation project in Orissa.

6. Hospitalitbizindia on a mega food park at Malipada, Khurda:

Government of India is likely to set up a mega food park and a marine food park at Malipara near Khurda in Orissa with an area of 282 acres. This information was given by Subodh Kant Sahai, Union Minister for Food Processing while responding to a demand raised by Naveen Patnaik, Chief Minister, Orissa at the Orissa Investors meet 2010.

For the last several months various media reports have made the following points regarding the power situation in Odisha:

• There is a power crisis in Odisha and the government plans to do power cuts.
• GRIDCO will get a 1000 crore loan from the government. I.e., it is in a bad situation.
• OERC hiked the power tariff by 30%.

Bimal Pandia has some of the facts behind all these in his blog. Following is an excerpt from his blog.

OERC has noted that the Grid Corporation (Gridco) – which buys power from producers and sells to distribution companies – has suffered huge losses and by the end of year 2009-10 the loss may well surpass 1,500 crore rupees. While the loss to Gridco is true, not many people know that the loss was – to a large extent – an outcome of very low power supply from Orissa Hydro Power Corporation (OHPC), the state owned corporation that owns hydro-power units in Orissa.  

The Gridco procures power from various sources at OERC fixed rates. As per the process, Gridco had informed the OERC that Orissa will require a total of 18,726.15 Million Unit (MU) in the year 2009-10. It then informed about the sources from which it intends to procure and meet this requirement. Like the Gridco, other players in the power supply network like the power producers, transmitters and consumer representatives also submitted their design power generation, expenditure burdens and what price they expect etc. Taking everything into account the OERC decides quantity of power to be supplied to Gridco and their rate. It also decides power tariff for consumers and end users. While going through this process for the year 2009-10, the Gridco had submitted its plan to meet Orissa’s power requirement. There is no point for guessing that hydro power being the cheapest among all sources was and is the first choice for Gridco. The Gridco, relying on OHPC sources, had estimated that it will get 6,184.44 MU from OHPC. However parties appearing for the consumers submitted that this was a too conservative estimate and ‘Gridco has merely accepted the data submitted by the OHPC and has not done independent assessment of hydro power availability’.  They submitted that ‘the availability of power from state hydro stations would be around 7,680 MU in FY 2009-10 as against the GRIDCO proposal of 6,184 MU’. But the OERC negated consumer’s estimation and instead agreed to the estimates made by Gridco. Though, OERC did not agree to consumer’s assertion that the consumers are losing out on cheapest energy, still 6184 MU from the OHPC in the year 2009-10 was the single most dominant procurement source for Gridco.  This allotment constituted about one-third of its total energy procurement target for the year at a very cheap rate of 57.66 paise per unit on an average with power from Machhkund being the cheapest among all hydro power centres at 13.90 paise per unit and Indravati being the costliest at 73.35 paise.

In contrast, other sources – from which Gridco budgeted to procure the remaining two-third of required power – were 3.35 to 5.2 times costlier. The purchase rate – fixed by OERC – from Orissa Power Generation Corporation (OPGC) owned thermal power plants is 193.70 paise per unit; from Central Power Generation Corporation (Primarily NTPC) is 197.31 paise; from central hydro sources like Chukha, Tala and Teesta is 190.30 paise; from Captive Generation Plants (CGPs) in Orissa is 300 paise; and from renewable sources at 269.43 paise per unit. OHPC’s power, being the cheapest and the largest source, was expected to moderate all these costly sources and keep Gridco’s total purchase cost at 2,923.80 crore rupees for 19,619.11 MU of power required for Orissa in the year 2009-10, at 148.27 paise per unit.   

So the power sources, per unit cost, units to be made available etc. were all decided by the OERC. Had everything gone as per the plan, Gridco would not have bled losses. But that was not to be. OHPC – the most vital source that moderated Gridco’s total purchasing cost to a reasonable level – faltered in making committed supply to the Gridco. For a period OHPC’s supply almost dried up as if its reservoir beds have gone bare. At the last count, OHPC managed to produce just 4,136.139 MU till 25 March, 2010. With only six days remaining of this financial year, the OHPC is expected to produce another 60 MU. This will take OHPC’s total energy production for the year 2009-10 to about 4,200 MU. This is a mere two-third of what was expected from it. Because of this huge deficit supply from the OHPC, the Gridco was forced to scout for other suppliers to plug the gap. That has undone all calculations and caused severe losses to Gridco. As the other sources from which Gridco gets supply are already stretched, they are in no position to make additional supply to Gridco. Even if they make supply, the cost will be many times more than that of OHPC’s power. Now, Gridco has no other way than to purchase power from wily producers at exorbitant cost. Some privately owned CGPs, with whom the Gridco has purchase agreement, charge OERC fixed rate up to the agreement level. Beyond that… it’s the producer’s fiefdom – to grab profits as much as possible from the Gridco’s misery. The negotiations are held hardly on equal terms. The OERC plays no role there; it does not have any jurisdiction to play either. Naturally, power rates spiral with the summer heat. In such a similar situation, the Gridco purchased power at more than 800 paise per unit last year. The situation is ripe to worsen this year. Gridco has lost substantial units of very low cost energy – hydro power – and is now compensating that loss with very high cost energy.

The above explains the situation very nicely. Mr. Pandia then gives the data on the reservoir situation and says that they are in better shape (based on March 1 data) than previous years. But then he speculates that some "cleaver ploy is cooking." I think his analysis in the excerpt above explains the situation nicely. In short the initial OERC tariff was based on some assumption on how much power will come from OHPC. Now that OHPC did not supply that amount of power the last year (leading to 1000+ crore loss to OERC) and may not supply that amount this year, obviously OERC has to revise its tariff based on the new reality of how much power will come from where and how much will it cost.

Moreover, all these have not much to do with whether Odisha is a power surplus state or not. There is now a power market in the country. It is a question of balancing the cost of power and the revenue from the consumers.

Following is from a report in Business Standard.

The National Hydro Power Corporation (NHPC) plans to set up three hydro power projects in Orissa with an aggregate generation capacity of 300 Mw.

These projects will be developed in joint venture (JV) with the Orissa Hydro Power Corporation (OHPC). Meanwhile, NHPC has sent a draft memorandum of understanding (MoU) to the Orissa government for approval, sources said.

The three projects, namely Sindol-1, Sindol-II and Sindol-III, would be developed by NHPC in the first phase on a pilot basis. All these projects are located on river Mahanadi. Sindol-1, at Deogaon in Sambalpur district, will have a capacity of 90 Mw. Similarly, the installed capacity of Sindol-II, located at Kapasira in Sonepur district, will also be 90 Mw. The largest among the three, Sindol-III, located at Godhaneswar in Sonepur district, will have a generation capacity of 120 Mw. NHPC will have 51 percent stake in the joint venture company and the remaining 49 percent will be held by OHPC.

Sources said, NHPC has in principle agreed to provide 100 percent power to be generated from these units to the state grid. However, it is awaiting the final nod of the Union ministry of power in this regard. Though OHPC earlier proposed to develop these units on its own, the government has changed its mind in favour of a joint venture with NHPC.

… It may be noted, the government planned to develop about nine hydro-electric projects in the JV mode, out of which three projects would be set up in the first stage. The identified projects are Middle Kolab Hydro-Electric Project, Tel Integrated Project, Lower Vansadhara Project, Balijori Hydro-Electric Project, Khadago Project, Salki Hydro-Electric Project, Uttei and Roul Integrated Project, Mahanadi-Brahmani river link and Baramul Hydro-Electric project.

Following is an excerpt from a cleantechnica.com report.

NTPC Ltd., formerly known as National Thermal Power Corporation, is planning to develop 500MW wind and solar energy projects in the Indian state of Orissa. NTPC is India’s largest power generation company and generates a big majority of power from coal-fired power plants. However, the company is now foraying into renewable energy and low carbon intensive generation technologies like hydro, nuclear and renewables.

The company recently signed a Memorandum of Understanding with the Orissa government in order to obtain approva for setting up the power plant. Orissa is a coastal state located in the south-eastern part of India. In addition to significant offshore wind resources, Orissa also blessed with substantial solar energy resource. The company has signed similar MoUs with the government agencies in Karnataka, Rajasthan, Gujarat and Andaman and Nicobar Islands, all highly potential areas on India’s energy map.

Following is an excerpt from a report in Economic Times.

… "The state has received an investment proposal of Rs.101,100 crore (Rs.1 trillion/$22 billion) from Jindal Steel and Power. About $10 billion has been proposed for the new coal-to-liquid project," a senior official of the state steel and mines department said.

The project includes the coal-to-liquid plant, the thermal plant and a coal washery.

A coal block has already been allocated to the company in Angul district, over 160 km from here, by the central government. And the steel producer and power utility is now looking for about 2,000 hectares of land for the project, Naveen Jindal said.

"About three sites were being explored and the company prefers a location near the coal block," a senior company official said.

Also, Jindal is building a 12.5 million tonne steel plant, a 1,320 MW capacity power plant and an industrial complex in the same district. The company requires about 4,500 acres land for the steel and the power plant. "About 4,000 acres has already been acquired," the official said.

"The work on the steel and the power plant is going on and we hope to commission one part of the power plant and the steel plant by the end of this year," he said.

Following is an excerpt from a report in Business Standard.

The Orissa government today signed a memorandum of understanding (MoU) with Amtek Metal & Mining Ltd (AMML), for setting up a mega auto park with an associated two million tonne per annum (mtpa) integrated steel plant and 500 Mw power plant at Tangi in Cuttack district.

The project envisaging an investment of Rs 15,820 crore, is expected to generate direct and indirect employment for 33,000 persons. Out of the total projected investment, Rs 2050 crore is proposed to be invested for mega auto park in phases.

While the total land requirement for the projects is estimated at 2500 acres, about 550 acres will be required for the mega auto park. … AMML’s project consists of ferrous foundry, steel forging plants, steel fabrication plant, open die forging plant, special fastener, aluminium die casting plant, alloy steel plant and ring gear blank plant among others. It would transfer the hot metal from blast furnace to auto park for production of auto components.

… “With the signing of the MoU, we expect greater interest from the national auto industry which will help create an auto hub in the state”, Patnaik remarked. Taori said, the company would adopt ITIs and the polytechnics in the state to impart skill training to the unemployed youth in Orissa.

Following is an excerpt from a report in Business Standard by Nageshwar Patnaik.

… All these projects will create employment opportunity for nearly six thousand people

The investment proposal includes setting up of five new thermal power projects and expansion of two existing power plants.

.. The new power projects cleared by the committee include 3200 MW plant National Thermal Power Corporation (NTPC) at Dharanipali in Sundergarh district (Rs 18,000 crore), 2000 MW plant by Orissa Power Transmission Corporation Limited (OPTCL) at Rengali (Rs 8,250 crore), 1320 MW plant by BGR at Bhapur in Nayagarh district (Rs 6,300 crore), 1980 MW plant by JR Power Gen Private Limited at Bainda in Angul district (Rs 8,000 crore) and 1320 MW plant by Adhunik Power Company Limited at Birmaharjpur in Sonepur district (Rs 8000 crore)

The existing projects which were given permission to go for expansion are Chambal Infrastructure Limited (from 1200 MW to 1320 MW and GMR Limited (1050 MW to 1400 MW).

Chambal Infrastructure Limited – which has its plants at Siria in Dhenkanal district will invest Rs 5000 crore while GMR Limited will put in Rs 6000 crore at its Kamalanga plant in the same district.

Following are excerpts from a report in tathya.in.

Odisha’s Power sector gets a relief as the first Unit of 2400 Independent Power Plant (IPP) at Jharsuguda would be commissioned in coming Summer’, he said to the media after meeting the Chief Minister.

This will add 600 MW to the state’s power production capacity and can help the State Government in facing the current power crisis. 

Mr. Agarwal revealed that construction work of world class Vedanta University near Puri has already started. 

At the first stage, the University will have a 1000 bed super specialty hospital and Medical College, also academic building. 

Vedanta Boss also informed the meeting that Lanjigarh refinery is fully operational by sourcing bauxite from other states, incurring a huge opportunity loss for both states as well as company. 

State Government has assured to look into the issue seriously and try to work out for an immediate solution. 

Construction activities for a specialized burn and trauma care centre at Bhubaneswar would begin very soon.

Following is an excerpt from a report in Business Standard.

After committing an investment of Rs 60,000 crore on various projects in Orissa including an aluminium smelter plant, an alumina refinery unit and a mega university project, London-based Vedanta Resources Plc has now evinced interest in setting up a steel plant in the state.

Vedanta plans to set up the steel plant in collaboration with engineering and construction major Larsen and Toubro (L&T).

… However, he did not provide details like capacity of the proposed steel plant, location and investment. It may be noted that in October 2004, Sterlite Iron and Steel Company, a subsidiary of Vedanta Resources, had inked an MoU (Memorandum of Understanding) with the state government for setting up a five million tonne per annum steel plant. The steel plant was to set up at Palasponga in the state’s Keonjhar district at an investment of Rs 12,502 crore. However, the project is yet to take off.

On bauxite supplies, Agarwal said, he has informed the state chief minister that Vedanta’s alumina refinery plant at Lanjigarh in Kalahandi district is operational and the company is sourcing bauxite from other states to run this refinery.

The chief minister has assured that us that bauxite supplies would not be a problem in Orissa which has the fourth largest deposits of the mineral ore in the country, Agarwal informed.

He further said the company is adhering to the environmental norms in running the Lanjigarh refinery, adding, “Our refinery at Lanjigarh is a world class refinery and it is a zero discharge and zero waste unit. …"

He pointed out that the company would commence mining operations at Niyamgiri hills in Kalahandi district after getting the environmental clearance.

Agarwal said, Vedanta has already invested Rs 39,000 crore on various projects in Orissa and these projects have generated direct and indirect employment for about two lakh people.

Vedanta Aluminium has also decided to set aside five per cent of its net profit or Rs 10 crore every year on welfare activities of the tribals of Lanjigarh. The amount will be spent on meeting the needs of the tribals in areas like education, livelihood and health.

The company will also build the hostel for the proposed engineering college of the state government at Bhawanipatna.

On the 2400 MW (6×400) power plant at Jharsuguda, Agarwal said, the first unit of the independent power project (600 MW) will be operational from the ensuing summer.

Talking on the company’s proposed university project, he said, “We have huge local support for our university project and at first we will set up a 1000 bed state-of-the-art hospital as a part of the project.” Apart from the 1000 bed hospital, Vedanta has also firmed up plans to set up a 100-bed burn and trauma care centre at Gangapada on the outskirts of the city. Construction work on this centre wold take off very soon, Agarwal stated.

Following is an excerpt from a report in Financial Express.

The Orissa government is proposing to develop a special corridor for coal transportation from the state’s coal-bearing district Angul. The 137 km long corridor, which would be developed with an investment of Rs 5000 crore, will connect coal deposits in Talcher, Angul, Meramundali, and Chendipada.

A state government official in the commerce and transport department said the corridor will be developed with rail and road networks with a view to facilitate coal supply to various industries and also transportation to ports for exports and coastal shipments.

Orissa has proven coal deposits of 6,53,53 mt. The Mahanadi Coalfield Ltd. (MCL), a subsidiary of Coal India (CIL), is currently raising about 70 to 90 mt per annum. However, as many private and public sector companies are expected to make their allotted coal block operational, coal traffic from the Angul district is expected to increase manifold.

The state has lined up power plants by 21 IPPs (independent power producers) of a total capacity of 25,000 MW. Besides, a power plant of 4000 MW is coming up under the Ultra Mega Power Project(UMPP) scheme and another 4000 MW is being installed by NTPC. In brown field expansion, the AES-owned Orissa Power Generation Corporation and NTPC are adding 1,320 MW each to their facilities at Ib Valley and Talcher respectively. To add to it, several captive generating plants are being set up by aluminium, steel and ferro-alloys plants in the state. To feed these power plants, at least 142 mt of coal will need to be transported from the pit head to power stations every year. 

Bishnu Das’s article in Business Standard lists many of the solar and biomass power unit projects that are in the pipeline in Odisha. Following are some excerpts.

Solar power units:

• 5 Mw power plant of RSB Energy Pvt Ltd in Sundergarh district
• Enzen Global Solutions’s 5 Mw solar power plant in Khurda district
• Lanco Solar’s 5 Mw solar plant in Cuttack district
• Sunark Solar’s 5 Mw power plant in Puri district
• Kolkata based SREI Infrastructure’s 5 Mw solar power plant in Bolangir district
• Moserbaer Pvt Ltd’s 5 Mw grid interactive solar photo voltaic project
• Sahara India’s 5 Mw solar power plant

Biomass power units:

• Rice husk based power plant being set up by Shali Vahana Green Energy Ltd at Nimidha village in Dhenkanal district
• Satya Bio-Power Industry Ltd planning to set up a 10 Mw plant in Ganjam
• A V N Power Projects setting up a 10 Mw power plant in Kalahandi district
• Prasad Bio-Energy planning a 10 Mw unit in Raygada
• Jay Laxmi Bio-Energy Ltd intends to set up a 10 Mw unit in Nayagarh
• Another plant of similar capacity is proposed by Andhavarapu Bio-Energy in Nawarangpur

Update: Following are some additional details from a report in Pioneer.

• Amtech Auto Engineering would set up the complex at an investment of Rs 15,820 crore near Tangi- Choudwar. It would set up a two million tonne steel plant and 500 MW captive power plant in the complex. With this about 33,000 people will get both direct and indirect employment.

  It may be mentioned here that Jamsedpur-based RSB Trasmissions (I) Ltd, one of India’s leading auto components manufacturers, is coming up with an auto complex at Mania in Cuttack. RSB Transmission will invest Rs 430 crore in the project.

• The committee also approved JK Cement‘s one million tonne capacity plant on the road between Athagrah and Choudwar.
• BOC would set up an air separation plant at an investment of Rs 434 crore in Rourkela. It would produce oxygen, nitrogen and argons.
• Bijaya Ferro Power Private Limited would set up a power plant at Keshinga in Kalahandi with an investment of Rs 550 crore. It would take water from Tel river to produce 120 MW power.
• Ind-Bharat’s proposal to enhance its power production capacity has also got the nod of the committee. It would set up its plant at Jharsuguda with an investment of Rs 3,300 crore.
• Facor would set up its captive power plant at Rahandia near Bhadrak.
• Due to shortage of water, few plants have also changed their sites. Odisha Cement Power Plant (OCL) has shifted its plant site from Mania to Rajgangpur.
• Jinadal Stainless Steel would set up its plant in Luni instead of Gajatara in Dhenkanal.
• Kalinga Energy Power Limited would set up its plant at Jharsuguda instead of Sambalpur.
• Scwal Brewage would set up its plant at Baranga instead of Choudwar at a cost of Rs 193 crore.
• The Rs 1,320 crore Sahara Power project has shifted its plant to Ghantabahal from Turul.
• German-based Gaunteman Pipery would set up its plant beneficiation plant and pelatisation plant. The beneficiation plant would come up at Barbil and the pelatisation plant at Dhamra. Around 1,605 crore would be invested in the project.
• Aditya Alumina’s proposal to enhance its production from one million tonne to 1.5 million tonne. It would also enhance its power plant from 650 MW to 900 MW.

Following is an excerpt from Orissadiary.

The projects of Adhunic Metalics and Jindal Stainless Steel at Sundargarh and Kalinganagar, respectively have been approved. The SWCLC has also given its green signal for an air-separation plant. Projects, involving Vijay Ferrochorme and Power Pvt Ltd and Adhunic Power plant have been cleared.

Amtech Metals would establish the integrated auto-complex, first of its kind in the state. Moreover, an auto-park, steel and power plant would also be established in the complex. The cost of the entire project has been pegged at Rs 15,820 crore. All the projects are expected to provide direct and indirect employment opportunities to nearly 47,000 and 1.5 lakh people, respectively apart from bolstering the socio-economic conditions in those regions where the proposed projects would come up, state Industries Secretary, Sourabh Garg said.

Tathya has some details on the Adhunik group’s project. Following are some excerpts:

Adhunik Power & Natural Resources Limited (APNRL) has proposed to invest Rs.3883.40 crore for the 4×250 MW power plant in Birmaharajpur in Sonepur district.

… Adhunik Metaliks Limited (AML), another member of the Group has proposed to set up Down Stream Park for stainless and special products with an investment of Rs.286 crore.  … downstream industries in hot-rolling, cold-rolling utensils, kitchen and hardware.  AML has also proposed for stainless steel pipes and alloys, which received the nod.
The park will be set up at Kumarmunda in a 300 acre area in Sundargarh district.

AML is setting up steel plant at Kumarmunda with a capacity of 0.41 million ton per annum (MTPA).

Tathya has also some details on the JSL project. Following are some excerpts.

JSL Limited posed a proposal to set up a Super Critical Thermal Power Station of 1320 (660X2) megawatt capacity, which has been cleared in the meeting. The Rs.4090 crore Greenfield project will be set up at Luni in Dhenkanal district.

Most importantly JSL, which is setting up a 3.20 million ton per annum (MTPA) capacity stainless steel plant at Kalinga Nagar has proposed to set up Stainless Steel Park (SEZ) with an investment of Rs.740 crore.  … The park will promote auto components, kitchen & life style, light engineering, white goods, cold rolling, pipes and tubes, and service centre. 300 acres of land for the park is needed for the park, which will have man power requirement of more than 2000, said sources. JSL plant is likely to produce stainless steel by end of 2010 and the park is also to be completed by the same time reveal the SLSWCA Report.

The above two downstream park proposals are most likely due to the recent government focus on those aspects, before giving mining leases. The govt. needs to make sure that the down stream parks indeed materialize as proposed.

Following is an excerpt from a report in rttnews.

 National Aluminium Company or Nalco, the state-run aluminium producer, will invest about Rs.22,000 crore to set up two mega projects, one in Andhra Pradesh and the other in Orissa.

Minister for Mines B.K. Handique told the Lok Sabha Tuesday that the navratna firm would set up a 5-lakh ton aluminium smelter in Jharsuguda, Orissa, along with a 1,260 MW captive power plant at an estimated investment of Rs 16,345 crore.

… it has set apart Rs.2 crore each for pre-project activities in Orissa and Andhra Pradesh.

Following is an excerpt from a report in Business Standard.

The state owned power generator, Orissa Hydro Power Corporation (OHPC) will sign a memorandum of understanding (MoU) with the National Hydro Power Corporation (NHPC) for developing some multi-purpose projects in the state with a generating capacity of above 25 Mw.

Together, these projects are expected to generate about 1500 Mw to 2000 Mw power. NHPC has in principle agreed to develop these projects though the number of projects is yet to be decided.

These multi-purpose projects are proposed to be implemented through joint venture (JV) with a shareholding of 51 percent by NHPC and 49 percent by OHPC. … A team of officials from NHPC has already visited the potential sites and completed the pre-feasibility studies.

The projects which have been identified to be implemented through JV are Sindol-I, Middle Kolab Hydro-Electric Project, Tel Integrated Project, Lower Vansadhara Project, Balijori Hydro-Electric Project, Salki Hydro-Electric Project, Uttei and Roul Integrated Project, Mahanadi-Brahmani river link and Baramul Hydro-Electric project.

Sources said, the state government is seeking 100 percent power from these projects and NHPC has sought permission from the Union power ministry to allow 100 percent power to Orissa. 

… It may be noted, the state government has signed MoU with private developers for developing 29 small hydro electric projects (SHEP) having capacity of less than 25 Mw.

Following is an excerpt from a report in Business Standard.

The first phase of the Naveen Jindal-promoted Jindal Steel and Power Ltd (JSPL)’s proposed 6 million tonne per annum (mtpa) steel project and 1000 Mw power plant at Angul in Orissa is expected to be commissioned in 2011-12.

The shifting of families to be displaced by the project was going on and simultaneously, the construction of the boundary wall had started. The detailed engineering would follow the completion of the rehabilitation and resettlement (R&R) of displaced persons and large scale construction would be taken up after that.

“We plan to start large scale construction work in January next year and the first phase commissioning is scheduled to be in 2011-12”, Rajesh Kumar Jha, executive director, JSPL told Business Standard.

He said, out of three villages to be shifted completely for the first phase construction, two villages had been rehabilitated completely. The remaining village would be rehabilitated by December this year. The company’s strategy of combining the project economy with the rehabilitated family’s economy has gone down well with the people. …

… the company had placed orders for civil and structural works worth Rs 1584.57 crore which was 60 percent of the estimated costs. Similarly, orders for plant and equipment worth Rs 4,034.34 crore had been placed which was about 35 per cent of the total estimated costs of plant and equipments.

The total cost of the project is Rs 22,420 crore with the first phase investment pegged at Rs 13,000 crore. The project has already attained financial closure and will have a 60:40 debt-equity ratio. While the debt component will be Rs 8,958 crore, the equity is Rs 13,452 crore.

…  While the company requires 5,279 acres for the steel plant, about 3000 acres have been acquired so far. The acquisition of additional 707 acres of private land is likely to be over by the end of this month.