___________

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

The state government has started work on development of a railway corridor through Choudwar to Rourkela to allow ease of inward and outward transportation of goods from the industrial hubs and mining belts along the region.

Land acquisition for the project, the first of its kind initiative by a state government, has already been initiated by the Industrial Infrastructure Development Corporation (Idco). The project would go on ground after the land acquisition and is targeted to be completed by 2015, said Idco CMD Priyabrata Patnaik on Friday.

The corridor involves development of extensive rail and road connectivity, along with provisioning of water supply and other infrastructural facilities. The corridor would encompass two track railway lines and six-lane road passing through the industrial hubs and the coal mining belts. New industrial areas and downstream units would be developed along the corridor.

Common infrastructure facilities under the corridor would solve the problems of inward and outward transportation of goods and minerals. The stretch would pass through the heart of coal mining operations in the state, which harbours about 65 billion tonne of reserves. The coal reserves in the Talcher belt only is around 43 billion tonne.

The corridor would cover 17 large and mega-industries, along with 57 other units, through the stretch from Choudwar to Rourkela. Traffic projection on the route is given out as 8.7 million tonne.

The route would have 163 km of railway track length and 465 km on road. As many as 308 minor bridges and 77 major bridges would have to be constructed on it, said Patnaik.

Note 1: The 163 km of railway track probably refers to the Talcher-Bimlagarh segment.

Note 2: Although the above report only mentions the Choudwar-Rourkela part, in earlier documents there is mention of Paradeep-Choudwar-Rourkela industrial corridor. See for example this 2009 Business Standard report. Following are some excerpts from that.

The Orissa government plans to develop an industrial corridor running from Paradeep to Rourkela through industrial hubs like Choudwar, Talcher and Sambalpur.

Though the initial proposal was to have an industrial corridor originating from Choudwar to Rourkela, the proposal was modified to extend the corridor till Paradeep to allow inward and outward transport of goods through the Paradeep port, sources said.

… The proposed industrial corridor will be in line with the Delhi-Mumbai Industrial Corridor and is designed to pass through national highway no.42 and national highway no 5 (A).

Under the project, both road and rail corridor will be developed, which will be the backbone of the proposed project. The industrial estates and down stream units would be developed over 25 km area on both sides of the corridor.

IL&FS has been appointed as the consultant for the project and it has already submitted the pre-feasibility study report to the industry department on the project. However, the detail cost of the project is yet to be worked out yet, sources added.

…

The latest initiative of the state government follows a similar initiative to develop a common ‘rail-road-water pipeline and infrastructure corridor’ in Meramundali-Angul-Talcher-Chhendipada belt, to facilitate movement of coal in the Talcher coalfield area.

The project is estimated to cost about Rs 5000 crore including Rs 2000 crore for 2-line rail corridor and Rs 1100 crore for 4 lane road alongside it. The land width of the proposed corridor will be 300 metre which includes 60 metre for road and 20 metre for water pipeline.

The total length of the corridor is 137 kilometre which includes length of 43 number of major bridges to be constructed on this stretch. RITES Ltd has already submitted a pre-feasibility report to the state owned Industrial Infrastructure Development Corporation of Orissa Ltd. (Idco) on the project.

The project is designed to have multi-point centralised loading stations conceived along the corridor rather than individual bulb connections with a view to avoid interference or wastage of coal bearing areas. Road and water pipe alignment will run parallel to rail alignment, sources said.

It will be connected to rail line at three locations- Jharpada, Angul and Budhapanka. The common corridor will have multiple entry and exit points and no surface crossing. Besides, flyovers are proposed to avoid cross movements at junction stations.

This ‘rail-road-water pipeline and infrastructure corridor’ in Meramundali-Angul-Talcher-Chhendipada belt is projected to handle 113 million tonne coal by 2014-15. It includes 55 million tonne coal movement required by the power companies, 40.76 million tonne by steel companies and 17.22 million tonne by other industries.

The above is a good idea.

• A plan over a larger area will avoid congestion and slums that are typical of densly packed areas.
• Another big benefit will be that the term "Capital Area" will make it easier for institutions, companies and other entities to come to the gretaer area rather than coming to "Bhubaneswar". For example, many institutions that are looking for land in Bhubaneswar are hesitant to locate in Kendrapada or Jagatsinghpur; even though the political leadership is very welcoming.  But once the term "Capital Area" encompasses Kendrapada and Jagatsinghpur, these institutions will be less hesitant to come there.

So while the current Bhubaneswar and Cuttack planned areas will sever as the core urban area, the larger Capital Area development region will morph to a sub-urban area which down the road will touch the metropolitan areas around Angul in the west and Berhampur in the south.

We wrote about this in http://www.orissalinks.com/orissagrowth/archives/3637.

A similar term needs to be coined for the greater Sambalpur-Jharsuguda-Rourkela area. See http://www.orissalinks.com/orissagrowth/archives/3660 , http://www.orissalinks.com/orissagrowth/archives/3672 and http://www.orissalinks.com/orissagrowth/archives/3668.

Perhaps it can be called the "Western Odisha Development Region".

(Thanks to a reader for the pointer.)

Following is from a report in Telegraph.

The Memorandum of Agreement (MoA) for setting up the Rs 2.7 lakh crore petroleum, chemicals and petrochemicals investment region (PCPIR) near Paradip was signed between the state and the Centre today.

The PCPIR will come up over 284.15sqkm in Jagatsinghpur and Kendrapara districts with a proposed investment of Rs 2,77,734 crore.

While Orissa Industrial Infrastructure Development Corporation (Idco) chairman-cum managing director Priyabrata Patnaik represented the state, additional secretary of the department of chemical and petrochemicals Geeta Menon signed on behalf of the Union government. Patnaik said, “The MoA was signed and the project has got legal sanction. All the work for the project will now proceed according to the plan.”

… Sources said the state government has requested the Centre to take up the project work in the 12th five year plan. Under the plan, an airport will come up at Paradip and two direct roads from Bhubaneswar to Puri Paradeep will be built. One of these will begin from Uttara Square on the outskirts of Bhubaneswar.

Idco will act as a nodal department to help the government develop the PCPIR. “A meeting chaired by CM Naveen Patnaik is likely to be held this week to finalise the detailed project report.”

An apex body under the chairmanship of the chief minister has already been constituted to look into the implementation of the project. Under the proposed plan, a regional development authority (RDA) will be set up. The RDA will have autonomous power and other authorities will not be able to intervene in the work of the RDA.

… Officials hope that land acquisition for the project would not be a problem. “Instead of taking lands directly from people, we will go for swapping of land. If the government takes one acre of land, the same area of land will be allotted to the owner in another place,” said an official associated with the project.

Sources said the government had asked the Centre to build a coastal corridor that would connect Paradip to Chennai. “Andhra Pradesh has also supported Orissa. The Centre has taken the demand seriously,” said the official.

The Indian Oil Corporation (IOCL) will be the anchor tenant for the project. The PCPIR will also include the IOCL’s refinery at Paradip, which in the first phase, will have an investment of Rs 29,777 crore. The refinery will have a crude and vacuum distillation unit, a hydro-cracking unit and a delayed coker unit. It will also have an integrated gasification combined cycle plant for production of steam, power and hydrogen from petroleum coke for captive use in the refinery.

Another leading player, Deepak Fertilizers, will set up a greenfield ammonium nitrate plant in the PCPIR. Tata Steel and the South Africa-based Sasol have expressed interest in setting up a coal to liquid project under the PCPIR. The project is likely to come up by 2018 in an area of 3,000 acres. The plant will produce 80,000 barrels of liquid fuel from coal per day.

According to the plan, Rs 13,634 crore will be invested for infrastructure development in the PCPIR. Of this, the Centre will provide Rs 716 crore under Viability Gap Funding (VGF) to ensure infrastructure linkages such as rail, road (national highways), ports, airports and telecom through public-private partnership. The state’s share will be Rs 1,796 crore while the remaining Rs 11,122 crore will be generated through private participation.

Following is from a report in Telegraph.

The capital will soon have a mega-tourist circuit for which the Centre has sanctioned Rs 8.14 crore.

The proposed tourist circuit envisages, among others things, renovation of two major roads in Old Town area, construction of a ‘parikrama’ around Lingaraj temple, soft-lighting for eight protected monuments and two tourism interpretation centres.

While the tourism department is trying to revive Ekamreswar, the miniature temple of Lord Lingaraj near Lingaraj police station, a dedicated road corridor will be constructed to link Puri, the Old Town area and Khandagiri via Dhauli.

Moreover, a 3,000-seater amphitheatre will be constructed opposite Madhusudan Park at Pokhariput.

… Samal spoke to reporters after the heritage walk, which was held today as part of World Tourism Day function.

The circuit will aim at facilitating various cultures as the city is perhaps the only one place in the region where three major religions — Hinduism, Jainism and Buddhism — have their presence and the Daya riverbed is linked to the transformation of Emperor Ashok from Chandashok to Dharmashok.

… While the mega circuit will be part of the development of the ambitious Bhubaneswar-Puri-Chilika tourism sector, the Old Town area of the city will have a 40-feet road near the temple connecting Kotitirtheswar Lane and a proposed three-acre parking site.

Later, the same road will be extended up to Kedar Gouri temple. These two roads, in turn, will provide a better corridor so that tourist vehicles can pass through the areas smoothly. Similarly, a ‘parikrama’ or circular road will be planned around the Lingaraj temple.

“Apart from providing better connectivity to the Old Town area, the side walls of various buildings and structures will be decorated with tiles of red laterite stones. The concept has already been adopted in various western cities and states such as Rajasthan. …

The mega circuit will also emphasise on infrastructure development to connect various sites of Buddhist and Jain religious interests. Other than central assistance, there is also a plan to develop a road connecting Gangua nullah (through its right embankment) to the historical Kapileswar village. Another road will link Ganesh Ghat near Dhauli Peace Pagoda with the Jatni Kapilaprasad Road.

According to the pre-feasibility report, the state government will spend more than Rs 30 crore on the two proposed roads.

“These two roads will connect Dhauli with Khandagiri and the travellers and tour operators need not take the longer Cuttack-Puri Road via Rasulgarh to reach the historical Jain sites. Even nature lovers visiting places such as Deras in Chandaka or Nandankanan Zoological Park can take this road in future,’’ said the MLA.

“The state government has also asked the Bhubaneswar Development Authority to construct an amphitheatre opposite Madhusudan Park in Pokhariput. This will resemble the amphitheatre at the Utkal Sangeet Mahavidyalaya near Rabindra Mandap,’’ he said.

Sources at the public works department said: “There is a plan to construct a flyover over the railway level crossing at Pokhariput for Rs 42 crore. While the state government will share Rs 22 crore, the rest will come from the railways. Once the flyover is commissioned, the road from Dhauli to Khandagiri will become a vital link to various religious centre.’’

Under the mega tourism circuit, temples such as Lingaraj, Rajarani, Mukteswar, Rameswar, Parsurameswar, Lakshmaneswar, Bharateswar and Satrughneswar will be illuminated with light emitting diode based ‘dynamic lighting system’ for which Rs 3.98 crore will be utilised. The project will be executed by the Orissa Tourism Development Corporation.

Hinting at the development of two interpretation centres near the Lingaraj temple, Samal said: “While one will be constructed on the premises of Sibatirtha Mutt, the other one will come up near the employees’ colony.’’

On the proposed tourist interpretation centre near Khandagiri-Udaygiri caves, he said the project would be completed within two or three months time.

Following is from a report in Business Standard.

The Orissa government has decided to promote heritage tourism at eight locations along the coast line with an investment of Rs 7.41 crore in the next five years.

Based on archeological, architectural, sculptural and historical importance, the selected structures, identified by the state archeology department, would be taken up under the World Bank funded Rs 227.64-crore Integrated Coastal Zone Management Project.

… The structures identified to get a face lift under the scheme included Potagarh (Buried Fort), located on the bank of river Rushikulya in Ganjam town which stands as a mute witness to the vicissitudes of history in Orissa.

Apart from historic Potagarh, the British Cemetery near Ganjam town, Bhaba Kundaleswar temple of Manikapatna, Baliharichandi temple near Puri, Hariharadeva temple, Nairi, Bateswara temple, Kantiagada (Ganjam), Jagannath temple, Pentha and Jamboo Colonial Building, Kendrapara will be refurbished under the scheme.

Preservation of ancient monuments under the project will include their protection, structural conservation, chemical conservation, landscaping and maintainance from time to time.

… The officials of the Gujarat and West Bengal projects along with a World Bank team visited various places including Ganjam and Kendrapada districts in the state recently to review the implementation of the project. Project Director of ICZM (Orissa) AK Pattnaik briefed the team about various steps taken under the project and their progress. The scheme, whose tenure spans from 2010 to 2015, is being implemented in two coastal stretches: Paradeep to Dhamara and Gopalpur to Chilika.

Following is an excerpt from a report in Telegraph.

The state government is planning to set up a port-based cluster of wood-based industries in Paradip on the Kandla model. The hub will manufacture wooden products with imported timber and market them within and outside the country.

“The entrepreneurs will set up their units with their own funds. We will facilitate the project by providing land and other infrastructure. The state run Industrial Development Corporation has earmarked 100 acres of land for the purpose,” said industries minister Raghunath Mohanty.

“The beauty of the project is that the wood-based units will use timber imported from South Africa, New Zealand and West Indies. The proposal is on the lines of Kandla project in Gujarat where several wood-based industries are operating. The entire raw material is imported from outside,” said forest and environment minister Debi Prasad Mishra.

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

The single window committee (SWC) on Friday approved proposals for four industrial units, two of them power plants, with an investment of Rs 1,286.61 crore.

… The proposal of M/S Beverages Private Limited to set up a soft drink beverages unit with capacity of one lakh crates per annum at Atabira in Bargarh district with an investment of Rs 59.61 crore was approved in the meeting.
Similarly, the proposal of M/S Essar Power Orissa Limited to set up 4×30 MW captive power plant in two phases at Paradip with an investment of ` 683 crore was also given the green signal.

It is expected that the project will provide employment opportunity to 200persons.

The proposal submitted by Investa Ventures Limited for setting up a LED manufacturing plant and incubation park at Chandaka near Bhubaneswar with an estimated investment of Rs 190 crore was also approved.

The plant will produce energy saving LED electric bulbs and tubes and is expected to open employment opportunities for 470 persons.

Besides, the proposal of M/S Ultra Tech Cement Ltd for expansion of the existing cement grinding capacity from 1MTPA to 3 MTPA at Jharsuguda Cement Works and bulk terminal in Cuttack district with an investment of ` 354 crore has also got the approval of the committee.

Following is an excerpt from a report in Financial Express.

New infrastructure projects in Gujarat, Andhra Pradesh, West Bengal, Tamil Nadu and Orissa are set to get a major push in the five years starting 2012 as various government agencies will be prioritising building of roads, rail networks, airports and sea ports in these states that are setting up mega petroleum and petrochemical investment regions.

Five massive regions meant to attract investments in the petrochemical and allied sectors are now at various stages of implementation at Dahej in Gujarat, Visakhapatnam-Kakinada in Andhra Pradesh, Haldia in West Bengal, Paradeep in Orissa and Cuddalore and Nagapattinam in Tamil Nadu. These investment zones, each of which is not less than 250 square kilometres, are expected to attract a collective investment of R8,63,664 crore and create more than 40 lakh jobs during the 12th Five-Year Plan.

… “We will get infrastructure build for these projects using various existing schemes through appropriate prioritization,” K Jose Cyriac, department of chemicals and petrochemicals secretary, said. Government entities like the National Highways Authority of India, shipping ministry and the railways ministry would emphasise on fresh projects in these regions while allocating resources in the coming years. In the case of small connecting roads wherever required, the state governments concerned would include them in their own development plans.

Following is an excerpt from a report in Business Standard.

Petronet LNG Ltd, one of the fastest growing companies in the Indian energy sector has evinced interest in setting up an LNG (Liquified Natural Gas) terminal along the Orissa coast.

Dhamara, Gopalpur and Paradip ports in the state have been identified as the possible locations for the proposed LNG terminal which is set to cost Rs 4,000-5,000 crore.

“Petronet LNG is keen to set up an LNG terminal along the Orissa coast. The company is yet to zero in on any site though Dhamara, Gopalpur and Paradip have emerged as the potential locations. Petronet LNG has told us that the Orissa coast is the most suitable location for setting up the LNG terminal in which Rs 4,000-5,000 crore will be invested,” T Ramachandru, principal secretary (industries), Orissa government told Business Standard.

Petronet LNG is understood to be in talks with Paradeep Port Trust (PPT) authorities as well as promoters of Dhamara Ports Company Ltd (DPCL) and Gopalpur Ports Ltd (GPL) for the project. “We had initial discussions with the officials of Petronet LNG. They have proposed to set up an LNG terminal along the Orissa coast and we are open to the idea of setting up the terminal at Gopalpur. Petronet LNG officials have talked to PPT authorities as well as DPCL,” said Charchit Mishra, director of GPL.

… Petronet runs India’s first LNG receiving and re-gasification terminal at Dahej (Gujarat) having a capacity of 10 million tonne per annum (mtpa), equivalent to 40 mscmd (million standard cubic metres per day) of natural gas. The company is in the process of building another terminal at Kochi (Kerala) which will have a capacity of five mtpa equivalent to 20 mscmd.

Following is from the "About Us" page of Petronet.

Formed as a Joint Venture by the Government of India to import LNG and set up LNG terminals in the country, it involves India’s leading oil and natural gas industry players. Our promoters are GAIL (India) Limited (GAIL), Oil & Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL).

The following map gives an idea that the location picked and being considered by Petronet is not going to be a one-off thing. From the shape of India it becomes clear that many companies who will be importing "things" and distributing them across India would think of three ports: one in the West, one in the South and one in the East. In the East, since Odisha has a much longer coast line than West Bengal, there is a rush to establish ports in Odisha. These ports are going to be a big factor in the development of Odisha. Because of that Odisha is and should be zealously protecting the welfare of its existing and planned ports.

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

… Orissa Govt has gone  ahead to make budgetary provisions for providing basic infrastructure to attract the investors to this region. The expenditure requirement was discussed today in a high level meeting held under the Chairmanship of Chief Secretary Bijaya Kumar Patnaik in the Secretariat conference hall.

It has been decided in the meeting that the Project is to  covering 284.15 Sq.Kms. in Jagatsingpur and Kendrapara Districts will be developed in two phases viz. phase-1 covering 195 Sq.kms and phase-11 covering 89 sq. kms. The Project Proposal has been approved by Govt of India. IDCO has been selected as the Nodal Agency and IOCL selected as Anchor Tenant for development of PCPIR. The estimated budget for external infrastructure has been tentatively calculated at Rs.13634 Cr. The entire expenditure has been proposed to be borne jointly by Govt of Odisha, Government of India and Public Private Partnership.

The external infrastructure includes Green Field Coastal Corridor from Astarang to Dhamara via Paradeep ( 140Kms identified under Odisha and Andhra Pradesh PCPIR), Bhubaneswar- Paradeep Corridor(73 Kms.) , other Arterial roads, Port upgradation with new facilities, water supply, Taladanda  & Kendrapara canal lining, Captive Power Plant( 2x500MW) , New sub-stations and feeder lines, rail freight stations along with additional rail sidings, Logistic hubs near Bhutmundei, proposed air port , waste water treatment system and solid waste management. Up gradation of NH-5A ( 78 kms) to 4 lane  and expansion of Cuttack –Paradeep State High Way other important proposed  road projects. The total power requirement has been estimated at 2000 MW.

The demand of water for new projects in region will be 620 MLD  in different phases. Different water treatment systems like CETP & STP have been proposed at each of the chemical parks with estimate of 431 cr. Solid waste management system has been proposed  for disposal  industrial and domestic waste at the estimated cost of 200 Cr. Concerned departments have been directed to take up feasibility assessment and prepare detail project
reports for inclusion in state budget and recommendation to Govt of India for inclusion in 12th  Five Year Plan.

Following is from Dharitri.

Update: A DNA report the next day has this to say:

The favourable stand taken by the expert appraisal committee (EAC) on the POSCO steel plant in Orissa does not ensure an automatic green signal to the project, environment minister Jairam Ramesh has said.

… EAC’s positive recommendations are seen as a precursor to the ministry’s clearance for a project. Set up under the environment impact assessment notification of 2006, the committee assesses a range of issues related to a proposed project and recommends whether or not to grant approval to it. The ministry generally goes by its recommendation.

Ramesh clarified that a final decision on POSCO would be taken only after two weeks. The response has again put the fate of India’s biggest foreign direct investment project in doubt.

Following is from a report in DNA.

After running into several hurdles, the Rs51,000-crore POSCO steel plant project in Orissa has finally received the green signal from environment minister Jairam Ramesh. The decision comes as a big relief for the Indian industry which has been under tremendous pressure due to objections raised by the ministry over environment issues.

The steel project, being promoted by South Korean steel major POSCO in Jagatsinghpur district of Orissa, is the biggest foreign investment in the country. It was put on hold after the ministry cited violations of environment and forest laws by the company. The decision of the expert appraisal committee (EAC) of the ministry followed several public hearings and meetings with officials of POSCO India limited and the state government.

The EAC, however, has imposed tough conditions — running into 80 clauses — on the promoters. The most important of these is that at least 5% of the total cost of the project should be earmarked for corporate social responsibility. This means, POSCO will need to set aside at least Rs2,000 crore for this purpose only.

The committee also announced the resettlement and rehabilitation policy for tribals and fishermen to be affected by the project. Of 4,004 acres of the project area, 3,566 acres is revenue forest land. The company has acquired nearly 100 acres for resettlement of 418 families. The compensation for betel vine growers has been doubled and fishermen would get Rs2,00,000 per acre of prawn pond. Earlier, there was no compensation norm for fishermen.

The committee agreed that the plant area of 4,000 acres is compact for a 12 MTPA integrated steel plant with a captive power generation capacity and a port. It said construction of the port and development of greenery within the plant on 1,000 acres (25% of plant area) should commence simultaneously with the plant’s construction and be completed within eight years.

The project proposes establishing an integrated steel plant which will have an initial capacity of four MTPA and final capacity of 12 MTPA. It will have a captive port and a power plant of 400 MW. The EAC agreed with the seasonal basis on which the clearance was recommended in 2007 but insisted that on the basis of comprehensive environment impact assessment (EIA) report placed before it, aspects set out in subsequent paragraphs of these minutes must be revisited during the implementation of the project and conformity to norms verified and reported to the ministry.

The promoters have been asked to take steps to check vehicular pollution during transportation of raw material and finished products as well as dust emission during loading and unloading.

Raw material shall be stacked at earmarked sites in sheds/stockyards with wind breakers/shields and secure of fire hazard.

Following is from http://pib.nic.in/release/release.asp?relid=68211.

The Cabinet Committee on Economic Affairs has approved the proposal of the Government of Orissa to set up a Petroleum Chemicals and Petrochemicals Investment Region (PCPIR) in Paradeep. This is the fourth PCPIR which has been approved after PCPIRs in Andhra Pradesh, Gujarat and West Bengal.

A total investment of about ` 277,734 crore is expected in the Orissa Petroleum Chemicals and Petrochemicals Investment Region (OPCPIR), which includes a committed investment of ` 29,777 crore. The proposal envisages development of physical infrastructure such as roads, rail, air links, ports, water supply, power etc. at a cost of ` 13,634 crore. The PCPIR policy prescribes that infrastructure will be created/upgraded through Public Private Partnerships to the extent possible and Central Government will provide the necessary Viability Gap Funding (VGF). Accordingly, Government of Orissa (GoO) has sought support from Government of India involving a commitment  of 716 crore on account of VGF funding for one port and three road-related projects.

The total employment generation from the OPCPIR is expected to be about 6.48 lakh persons comprising direct employment to 2.27 lakh persons.

The PCPIR policy is a window to ensure the adoption of a holistic approach to the development of global scale industrial clusters in the petroleum, chemical and petrochemical sectors in an integrated and environment friendly manner. The idea is to ensure the setting up of industrial estates in a planned manner with a view to achieve synergies and for value added manufacturing, research and development.

The Government of Orissa proposes to set up a PCPIR at Paradeep extending over parts of Kujang and Ersama blocks of Jagatsinghpur district and Mahakalpada and Marsaghai blocks of Kendrapara district.

The State Government proposes to implement the Orissa Petroleum Chemicals and Petrochemical Investment Region (OPCPIR) under the Orissa Development Authorities Act, 1982, which is an existing State law. The State Government proposes to constitute the Greater Orissa Paradeep Development Authority as the authority in charge of the development of the Paradeep PCPIR.

The delineated region has a strong industrial base with major processing activities at present including Paradeep Phosphates Ltd., IFFCO’s Fertiliser Plant, Essar Steel Plant, Goa Carbons (Paradeep Carbons Ltd), Paradeep Port etc.

Indian Oil Corporation Ltd. (IOCL) has been identified as the Anchor Tenant for the Orissa PCPIR. IOCL signed a MoU with GoO in 2004 for setting up a 15 MMTPA grassroot refinery at Paradeep in the first phase at a cost of ` 29,777 crore. The Refinery is likely to be commissioned by March 2012 and should be fully stabilized by November 2012. The Refinery will have a Crude and vacuum Distillation Unit, a Hydrocracking Unit, a Delayed Coker Unit and other secondary processing facilities. It will also have an Integrated Gassification Combined Cycle Plant for production of steam, power and hydrogen from petroleum coke for captive use in the refinery at the cost of about ` 935 crores. A petrochemical complex will be set up at a later date depending on the market conditions.

A Preliminary Environment Assessment Report (EIA) has been conducted. The State Government will carry out a detailed EIA as per the EIA notification.

****

VBA/SH/LV

Following is an excerpt from a report in Telegraph.

… the single-window clearance committee of the state government, cleared five proposals worth Rs 1,340 crore. Industries secretary T. Ramchandru said that Orissa-based Konark Kranti Energy would set up a petroleum complex at Paradip and a petroleum storage facility at Dhamra port. “The company will invest Rs 300 crore,” he said.

Britania Industries Limited would also set up a plant at Khurda with an investment of Rs 51 crore.

Around 700 people will be employed by the firm. Everest Industry would set up a corrugated asbestos plant at Somanthpur in Balasore with an investment of Rs 69 crore, Chariot Steel and Power would expand its cement plant at Sundergarh and invest Rs 320 crore while Nababharat Ventures Limited would set up a power plant with an investment of Rs 600 crore, he added.

Following is an excerpt from a report in Indian Express.

… the government has approved the creation of two new forward naval bases at Tuticorin (Tamil Nadu) and Paradip (Orissa), and has accorded priority to the creation of operational infrastructure on the islands of Andaman and Nicobar and Lakshadweep.

The decision was announced by Defence Minister A K Antony at the Naval Commanders’ Conference here on Wednesday.

The two new bases, which will have facilities to refuel and service naval vessels as well as stocking of ammunition, will be created over the next two years. The Navy will use them for operating smaller vessels. While a decision has not yet been taken to permanently deploy warships at the new bases, with several new vessels on order, the ports will be used for future operations of the expanded fleet.

Communication stations will also be set up at the two bases.

Following is an excerpt from a report in Economic Times.

State-owned Indian Oil Corp (IOC) today said its Rs 29,777-crore Paradip refinery in Orissa will be commissioned by March 2012 and will cater to domestic market rather than exports as previous thought, due to rise in fuel demand at home.

…The refinery will produce 5.97 million tons of diesel, 3.4 million tons of petrol, 1.45 million tons of kerosene/ATF, 536,000 tons of LPG, 124,000 tons of naphtha and 335,000 tons of sulphur, all of which will be for sale in domestic market.

Some of 200,000 tons of propylene to be produced by the unit may be exported, he said.

Bankapur said the refinery will start producing fuel by March 2012 when it will commission the primary units like Crude Distillation Unit. Secondary units will be commissioned by July, 2012, and operations stabilised by November, 2012.

Besides the Rs 29,777 crore cost of refinery, the Paradip project also includes a Rs 1,793 crore pipeline to Raipur and Ranchi. The 1,100 km pipeline will carry fuel produced in the unit to consumers in Orissa, Jharkhand, Chattisgarh and Madhya Pradesh. Besides, a marketing terminal at the cost of Rs 414 crore is also being built.

IOC may take companies like Saudi Aramco and Kuwait Petroleum as equity partner in the Paradip refinery if they agree to supply most of the crude oil requirement of the 15 million tons unit.

The company wants someone who can commit long-term crude supply as equity partner but so far nothing has materalised.

IOC had last year signed a loan agreement with a consortium of lenders led by State Bank of India for term loan of Rs 14,900 crore for the project.

Bankapur said the company had some time back split the refinery-cum-petrochemical complex into two, deciding to complete the refinery first and follow with the chemical unit.

The feasibility of setting up the petrochem complex will be studied in next 3-4 months, he said.

The Paradip refinery is being configured to process the toughest, heaviest and the dirtiest crudes which are cheaper than the cleaner and easier varieties.

The refinery will have a Nelson Complexity Index of 13, the highest in the world.

Following is from http://dailypioneer.com/290501/Why-I-would-prefer-a-captive-port-for-Posco-steel-project.html.

Getting into the port town of Paradip after the ordeal of a tiring long journey from Cuttack on the State Highway is refreshing; sweeter than reaching an oasis after a long wandering in a vast desert depicting inertia and obscurantism. The experience of the musical fountain in a well-nurtured garden, the sight of a modest golf course, the neat avenues and bountiful hospitality linger on for long. The port has been expanding. Whereas the port handled 30 million tonnes (MT) of cargo in 2004-05, it handled an impressive 57 MT in 2009-10. This is the port I had served as chairman for five years, many years ago.

Many incidents surface in my memory — the removal of the two sunken dredgers close to the entrance channel of the port; the visit of the chairman of Indian Oil Corporation for setting up a refinery. Then, the Posco team’s visit for setting up a steel plant at the port town and Chief Minister Biju Patnaik’s long discussion on the issue with the visiting Koreans at the port guesthouse. At the guesthouse, one finds the foundation stone for the port with the prophetic description of the birth of the port ‘as yet another national adventure’ by Prime Minister Jawaharlal Nehru.

History is perhaps going to repeat itself. We are likely to see yet another national adventure on the coast, about 10 km south of the Paradip lighthouse. Should this happen, India’s east coast would have the most modern captive port at Jatadhari that would handle vessels of 170,000—220,000 DWT. The port would have facilities for handling smaller vessels as well. This port would be coming up at a time when the country is in great need to increase port capacity to bridge a huge anticipated capacity-gap of around 250 MT for dry cargo by 2013. On any given day, about 150 ships are waiting at anchorage in Indian waters. This amounts to an annual loss of `2,400 crore. Kandla Port handled the highest traffic in 2009-10 with 79.52 MT, and all the Major Ports handled 561 MT during the year. Share of traffic of the non-major ports has been increasing. It has risen to 206 MT in 2009-10 representing 37.5 per cent of the traffic of Major Ports.

The port sector, however, has to do much more. India’s Shipping Minister recently announced plans to triple capacity in the next 10 years so that India’s total capacity is boosted to 3,200 MT. Therefore, pace of entry of private players into the port sector has to gain momentum. Pipavav, Mundra, Krishnapatnam and Dahija are successful ports developed though private investment. Private developers would also be creating new ports at Dighi and Rewas (Maharashtra), Vizhinjam (Kerala), Kalpi (West Bengal), Gopalpur and Dhamra (Odisha). Private investments have also been made in different terminals of Major Ports like JNPT, Cochin, Haldia, Vizag, Tuticorin and Chennai. More private investments would only make our port sector viable and competitive.

The location of the proposed port at Jatadhari, south of the existing Paradip Port, would create immense opportunities for development of infrastructure facilities. Most promising opportunity for the people could be in the eight-lane expressway to connect the new port with Bhubaneswar.

One would only wish that the planners for the highway do not succumb to pressure for a zigzag alignment for the road so that it runs close to thick habitations .A straight line alignment, on the other hand, would induce planned development of the area. The proposed 12-km six-lane road along the coast would connect Paradip and the new port and make this stretch of the shore extremely popular with tourists. Besides, the new port would have connectivity with the NH-5A and the State Highway connecting Cuttack. At least two rail connections, one with Cuttack-Paradip line and the other with the proposed Haridaspur-Paradip line, would provide access to the steel plant and the new port. Plans are afoot for a dedicated rail-line from the mines to the new port. Though linking Jakhapura (on Kolkata-Chennai trunk route) with Banspani (in the mining belt) would be helpful, this line would not provide convenient access to many rich iron ore deposits of Sundargarh and Keonjhar districts. A new line should therefore connect Barsuan with the Banspani-Keojhar section and Barsuan should be connected with Talcher. The new port should be connected by a new rail-line with either Barang or Bhubaneswar by avoiding Cuttack. Such a comprehensive rail network only would ensure complete integration of the existing and the new ports with the hinterland.

Some view that the proposed port would have adverse effect on Paradip Port. People connected with Paradip are aware of the littoral drift of sand along the coast from south to north; the gradual accretion of land south of the southern breakwater of Paradip Port and erosion of land north of the northern breakwater. To contain the erosion, a seawall has been constructed north of the northern breakwater that runs up to the point of confluence of the Mahanadi with the sea. The northern breakwater of the proposed port is sometimes perceived as a feature, which could induce similar erosion of land towards Paradip. This apprehension however is unfounded, as this problem would surely be tackled through suitable engineering measures. The embankment form is expected to have in the middle portion quarry-run materials like boulders of different sizes; the seaside of the embankment is likely to be protected with acropodes and the landside with a concrete surface. The embankment is likely to be 7.5 metres high from the mean sea level and there is to be a wide road on top of it. The northern portion of the north breakwater of the new port is to be more effectively protected through better engineering measures. The southern breakwater of the port would arrest good quantity of north-moving sand and this would in fact help Paradip Port where the annual dredging would be less.

The other area of concern relates to the possible adverse impact on the business of Paradip Port. The cargo for the new port, it is pointed out, could be easily handled by Paradip Port. Actually, there is greater advantage in having two ports. The new port is expected to handle ultimately around 40 MT of cargo, but the development of the port has to go in tandem with the development of the steel plant. A port captive to the mother industry alone would be in a position to develop in conjunction with the development of the mother industry whereas such coordination may not always be possible if the port is a public port. A public port is meant to meet the requirement of many users in the hinterland.

Landlocked States in the hinterland of Paradip Port, Jharkhand and Chhattisgarh, are poised for rapid industrial development and their industries along with those in Odisha would depend on Paradip Port. Paradip Port would not be in a position to handle an additional cargo of around 40 MT of Posco plant. It is therefore only appropriate that the existing and future capacity of Paradip Port is taken advantage of by a large number of users and the Posco cargo handled by a captive port.

The new port should not therefore cause any concern; it is only a logical and welcome part of Posco-India’s project that is surely going to bring in an integrated development of the hinterland.

— The writer, a former IAS officer, can be reached at punarbashu@gmail.com

Following is from a report in Orissadiary.

The 6-million tonne Essar Steel pellet plant here will be made operational by October this year. The `2,200-crore project includes an 8-MT ore beneficiation plant at Joda and Barbil and a 250-km slurry pipeline from Joda to Paradip. The company plans to expand the beneficiation and pellet manufacturing capacities to 12 MT in the future.

Initially, the company will source iron ore from private mines at Joda and Barbil. However, the company expects that the State and Central Governments will grant it lease for a captive mine in the long run.

The pellets to be produced at Paradip would be exported through the Paradip Port to Essar’s steelmaking unit at Hazira in Gujarat, which is undergoing a capacity expansion to 9.6 MT from 4.6 MT by 2012, said sources.

Following is excerpts from an interview in Business Standard. The investment numbers mentioned there does not quite gel with the numbers mentioned above.

Is there a time frame for realising the long-term vision?

It arises from the commitments, as well as MoUs (memorandums of understanding) with various state govts. These are linked to raw material. It’s a chicken and egg story. You need the raw material, otherwise you are not going to invest. We have our plans in Jharkhand, Chhattisgarh. In Orissa, we are already completing the first phase. In Karnataka, we have signed the MoU and the government is looking to provide land. But we also want the mines. We don’t want to create a situation where all the investments are done and then you say the mines are not available.

The Orissa government has a clause in the MoU that the state will recommend mines once you have made commitments for 25-30 per cent.

Yes, commitments have to be made, which implies it could be orders. But a 12-million tonne plant will cost anything between $12 billion and $15 billion. Thirty per cent of that will be $4.5 bn. How can anyone expend $4.5 bn in the hope that one will get the mines? It’s easier for smaller players.

Following are extracted from his article in Economic Times.

• The port town in Jagatsinghpur district, about 120 km from the state capital of Bhubaneswar, has already emerged as one of the country’s major investment hotspots by attracting investment in excess of Rs 3.5 lakh crore including the Rs 2, 74,134 crore Petroleum Chemicals and Petrochemical Investment Region (PCPIR) and the biggest FDI proposal by Posco to build a 12-million ton steel plant at an estimated cost of Rs 51, 000 crore.
• The port town already boasts of major fertilizer manufacturers like IFFCO and Paradeep Phosphates Limited, a brewery along with central depot of Indian Oil and other small industries like Kargil Oil, Paradeep Carbon and a host of other units.
• … an integrated Petroleum, Chemicals, and Petrochemical Investment Region (PCPIR), a Special Purpose Vehicle (SPV) promoted by the state government on the lines of Pudong in China, Rotterdam in Europe and Houston in North America.
• IOC is already coming up with 15 MMTPA grassroot refinery cum petrochemical complex five kilometer to the south of Paradeep Port at an estimated cost of Rs 25,646. For this, the state government has given incentives to IOC by exempting entry tax on crude oil and sales tax deferment for 11 years. The IOC already has got the required 3344 acres of land.
• The Railways is also committed to boost connectivity in the Paradeep region which includes the 82-km Paradeep-Haridaspur broad gauge line, being taken up at an investment of Rs 577.78 crore. East Coast Railway (ECoR) has acquired 1,146 acres of private land out of the total of 1,653 acres of land required for the project. This project being implemented by Rail Vikas Nigam Limited (RVNL) is scheduled for completion by March 2011.
• The other projects in different stages of implementation Hydrate Pellets Ltd’s six lakh tone hydrate pelts plant at Rs 10,724 crore, Essar Steel Orissa Ltd’s six million ton steel plant at Rs 10,721 cr], Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL’s three lakh mtpa green-field complex for Nitric Acid and Ammonium Nitrate at Paradeep at a cost of Rs 400 crore NSL Sugar Ltd’s sugar plant at Rs 800 crore and other mini projects.
  

One other thing that is not elaborated in the article is that as part of the PCPIR several things will be funded by the state government and several other things will be funded by the central government.The following is excerpted from an older article in Business Standard.

• “The Centre would provide this money in two phases. While Rs388 crore would come in the first phase of the project, the balance Rs328 crore would be provided by the Government of India in the second phase”
• … six-laning of NH-5 (A), building a greenfield coastal corridor, construction of all-new greenfield road from Bhubaneswar to Paradip and upgradation of port infrastructure.

• The six-laning of the NH-5 (A) will be taken up in the second phase of the PCPIR project at a cost of Rs76 crore. The greenfield coastal corridor will involve an expenditure of Rs410 crore out of which Rs 264 will be invested in the first phase while the remaining expenditure of Rs146 crore will be incurred in Phase-II.

• The construction of all-new greenfield road from Bhubaneswar to Paradip will be taken up at a cost of Rs190 crore while Rs40 crore would be provided by the Centre for upgradation of port infrastructure.

• Meanwhile, the Orissa government has committed an expenditure of Rs1796 crore on infrastructure development for the PCPIR hub. Out of the envisaged expenditure of Rs1796 crore, Rs 754 crore will be spent on development of arterial roads, Rs 465 crore on water supply, Rs 410 crore on power distribution and Rs136 crore on canal upgradation.

To match these industrial investments in Paradip, the Odisha government needs to make plans for a university, an engineering college and a medical college for this area. Similar plans need to made for the other upcoming industrial hubs at Angul,  Kalinganagar, Jharsuguda and Rayagada; as well as the only existing industrial area of Rourkela which neither has a medical college nor has a regular university.

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

Paradip Port Trust is planning to have an airstrip within the port premises to facilitate movement to and from the port.

A resolution in this regard was recently passed by the board of trustees of the port. Mr Biplav Kumar chairman of PPT told Business Line that "We’ve also received in-principle consent of the Shipping Ministry.”

… The land for the proposed airstrip, as the port Chairman informed, has been identified.

Since the PCPIR in Paradip has been approved, I expect this airstrip will be established soon.

Following is an excerpt from a report in Business Standard.

The Centre would provide Rs716 crore under ‘Viability Gap Funding’ for infrastructure development of the PCPIR (Petroleum, Chemicals and Petrochemicals Investment Region) hub to be set up at Paradip in Orissa.

“The Centre would provide this money in two phases. While Rs388 crore would come in the first phase of the project, the balance Rs328 crore would be provided by the Government of India in the second phase”, an official source told Business Standard.

The funds to be provided by the Centre under ‘Viability Gap Funding’, will be utilized for various infrastructure projects of the PCPI hub like six-laning of NH-5 (A), building a greenfield coastal corridor, construction of all-new greenfield road from Bhubaneswar to Paradip \and upgradation of port infrastructure.

The six-laning of the NH-5 (A) will be taken up in the second phase of the PCPIR project at a cost of Rs76 crore. The greenfield coastal corridor will involve an expenditure of Rs410 crore out of which Rs 264 will be invested in the first phase while the remaining expenditure of Rs146 crore will be incurred in Phase-II.

The construction of all-new greenfield road from Bhubaneswar to Paradip will be taken up at a cost of Rs190 crore while Rs40 crore would be provided by the Centre for upgradation of port infrastructure.

Meanwhile, the Orissa government has committed an expenditure of Rs1796 crore on infrastructure development for the PCPIR hub. Out of the envisaged expenditure of Rs1796 crore, Rs 754 crore will be spent on development of arterial roads, Rs 465 crore on water supply, Rs 410 crore on power distribution and Rs136 crore on canal upgradation.

The PCPIR project in the state would be set up on 284.15 sq km (70,214 acres) of land spread over Jagatsnghpur and Kendrapara districts. The PCPIR hub is expected to attract investments to the tune of Rs2.74 lakh crore.

Phase-I work of the project is expected to be completed by 2015 while the entire project is scheduled for commissioning by 2030.

Of the expected overall investment figure of Rs2.74 lakh crore, the lion’s share would come from the petroleum and petrochemicals sectors at Rs2.3 lakh crore followed by housing and allied infrastructure at Rs23,500 crore, external infrastructure at Rs13,634 crore and Rs3,500 crore each for chemicals & fertilizers and ancillary sectors.

The mega project is set to create employment for 6.48 lakh people which includes direct employment for 2.27 lakh people and indirect employment for 4.41 lakh others.

The turnover of this PCPIR hub is estimated at Rs4.23 lakh crore with an export potential of Rs 43,000 crore. The PCPIR hub is expected to generate taxes to the tune of Rs 42,000 crore and contribute six per cent to Orissa’s Gross Domestic Product (GDP).

… This refinery cum petrochemical complex which needs 3300 acres of land, is scheduled for commissioning by March 2012.

The land acquisition process for PCPIR is on the fast track with the state owned Industrial Infrastructure Development Corporation of Orissa (Idco), the nodal agency for the project having filed requisition for 90 per cent of the total land requirement in .

This is really great. Especially, the part about a greenfield coastal road.  Odisha has been demanding such a road for a long time. I think eventually it will run all the way from Dhamara-Paradeep-Astaranga-Konark-Puri-Baliharchandi-across Chilika to Gopalpur. From Dhamara to the North they can put this road together with the National Waterway.

Update: Financial Express also reports on it. Following are some excerpts.

The PCPIR project in the state will be the fourth project in the country after West Bengal, Andhra Pradesh and Gujarat.The central government will provide rail connectivity, highway network and airports while the state government will provide the basic infrastructure, including power and water supply, said IDCO chairman, Priyabrata Patnaik.

This is huge. Rs 2.74 lakh crore is about $60 billion. Following is from a report in Business Standard.

Region spread over 284.15 sq Km to attract investment of Rs 2.74 lakh crore.

The Cabinet Committee on Economic Affairs (CCEA) today finally gave the green signal to the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) project in Orissa proposed to be set up near Paradip.

"There was a meeting in New Dehi on the PCPIR project of Orissa and the CCEA has approved the proposal”, state industries secretary Saurabh Garg told Business Standard over the phone from New Delhi.

Orissa has become the fourth state after Andhra Pradesh, Gujarat and West Bengal to have got the Centre’s nod for this prestigious project.

The PCPIR project in the state would be set up on 284.15 sq km (70,214 acres) of land spread over Jagatsnghpur and Kendrapara districts. The PCPIR hub is expected to attract investments to the tune of Rs 2.74 lakh crore.

Phase-I work of the project is expected to be completed by 2015 while the entire project is scheduled for commissioning by 2030. The Orissa government would invest Rs 1796 crore on infrastructure development for the project.

Of the expected overall investment figure of Rs 2.74 lakh crore, the lion’s share would come from the petroleum and petrochemicals sectors at Rs 2.3 lakh crore followed by housing and allied infrastructure at Rs 23,500 crore, external infrastructure at Rs 13,634 crore and Rs 3,500 crore each for chemicals & fertilizers and ancillary sectors.

The mega project is set to create employment for 6.48 lakh people which includes direct employment for 2.27 lakh people and indirect employment for 4.41 lakh others.

The turnover of this PCPIR hub is estimated at Rs 4.23 lakh crore with an export potential of Rs 43,000 crore. The PCPIR hub is expected to generate taxes to the tune of Rs 42,000 crore and contribute six per cent to Orissa’s Gross Domestic Product (GDP).

Indian Oil Corporation Ltd, which will be the anchor tenant of the region, will set up a 15 million tonne per annum grassroot refinery cum petrochemical complex five km south of Paradip at a cost of Rs 29,777 crore.

This refinery cum petrochemical complex, which needs 3300 acres of land, is scheduled for commissioning by March 2012.The land acquisition process for PCPIR is on the fast track with the state owned Industrial Infrastructure Development Corporation of Orissa (Idco), the nodal agency for the project having filed requisition for 90 per cent of the total land requirement in Phase-I.The Phase-I of the PCPIR project needs 48,268 acres (195.34 sq km) in all out of which 22,232 acres (89.97 sq km) would be devoted to processing facilities while the balance 26035 acres ( 105.37 sq km) is the area set aside for non-processing facilities. Phase-I of the project is scheduled to be taken up during 2010-2020.

The entire project which is set to be completed by 2030, needs 70,214 acres (284.15 sq km) of land which includes 30,397 acres (123.01 sq km) of processing area and 39.817 acres (161.14 sq km) of non-processing area.

Out of the processing area of 123.01 sq km, 41.95 sq km is under operational units and almost 42.68 sq km (10,546.22 acres) has been acquired or is under acquisition by Idco and the balance area of 38.38 sq km needs to be acquired.

Idco has filed for land acquisition of 7,342 acres (30 sq km) for common infrastructure, utilities and accommodating downstream chemical converters and industries.

Following is an excerpt from a report in breakingnewsonline.

The proposed 1700 km Surat-Paradeep natural gas pipeline is expected to be completed by 2014 for which bid will be invited within a week. Out of the total length of the pipeline around 400 km of pipeline will be laid in Orissa.

“The union government will invite bid for the Surat-Paradeep pipeline within a week and the process will continue for minimum 6 months. The winning company would be given 36 months to execute the project and it will be executed with an estimated investment of Rs.12000 crore" L.Mansingh, Chairman of the Petroleum and Natural Gas Regulatory said.

Similarly under the ongoing 1100 km Kakinada-Howrah natural gas pipeline project around 434 km pipeline is being laid in Orissa. 

Speaking at a special interaction session organized by CII ,he said that total about Rs.76,000 – 84,000 crore investment is estimated to be required for setting up Petroleum & Natural Gas infrastructure in next five years. Of this Rs.60,000-Cr would be required for natural gas pipelines,15000crore for CGD networks and 9000crore for petroleum product pipelines.

The pipeline Projects will avail cooking gas at an affordable rate in the state. For this the Gas authority has tentatively  identified 9  growth locations i.e.Bhadrak, Khurda, Kamakhyanagar, Rourkela, Anandpur, Bhubaneswar,Jajpur, Balasore and Baripada for development of CGD network terminals. The CGD network would involve the distribution of compressed natural gas (CNG) and liquified natural gas for domestic and automobile and industrial use.

… He acknowledged that timely completion of these two projects is very crucial for the success of the proposed Petroleum, chemical and Petrochemical Investment Region (PCPIR) in the state.

Following is an excerpt from a report in Business Standard.

The Phase-I of the PCPIR project needs 48,268 acres (195.34 sq km) in all out of which 22,232 acres (89.97 sq km) would be devoted to processing facilities while the balance 26035 acres ( 105.37 sq km) is the area set aside for non-processing facilities. Phase-I of the project is scheduled to be taken up during 2010-2020.

The entire project which is set to be completed by 2030, needs 70,214 acres (284.15 sq km) of land which includes 30,397 acres (123.01 sq km) of processing area and 39.817 acres (161.14 sq km) of non-processing area.

Priyabrata Pattnaik, chairman and managing director of Idco said, “Idco has filed requisition for acquisition of 90 per cent of land needed for the first phase of the PCPIR project. Out of the processing area of 123.01 sq km, 41.95 sq km is under operational units and almost 42.68 sq km (10,546.22 acres) has been acquired or is under acquisition by Idco, balance area of 38.38 sq km needs to be acquired.”

He was speaking at an awareness session on ‘Regulatory Framework of Petroleum and Natural Gas Regulatory Board (PNGRB) for Petroleum and Natural Gas Sector’, organized by the Confederation of Indian Industry (CII).

Of the non-processing area of 161.14 sq km, 20.92 sq km (5169.33 acres) are village settlements which has been integrated in the non-processing area and existing township of 19.08 sq km ( 4714.66 acres) included in the non – processing area.

Idco has also filed for land acquisition of 7,342 acres (30 sq km) for common infrastructure, utilities and accommodating downstream chemical converters and industries.

Meanwhile, as a part of developing rail connectivity within the PCPIR hub, it has been decided to set up rail freight stations (RFS) along with additional rail sidings at a total cost of Rs 80 crore in Phase-I and Rs 120 crore in Phase-II.

In Phase I, the RFS will be along Cuttack-Paradeep line which further connects to Paradeep port and Chennai-Howrah trunk whereas in Phase II, the RFS will be along Paradeep-Haridaspur line joining Chennai-Howrah trunk. The PCPIR project at Paradip is awaiting the in-principle approval of the Cabinet Committee on Economic Affairs (CCEA). After Andhra Pradesh, Gujarat and West Bengal, Orissa would be the fourth state to receive the approval for this prestigious project.

Indian Oil Corporation Ltd (IOCL) would be the anchor tenant of the project and it would set up a 15 million tonne per annum grassroot refinery cum petrochemical complex five km south of Paradip at a cost of Rs 29,777 crore. The refinery project is expected to be commissioned by March 2012 and stabilized by November 2012.

Following is an excerpt from a report in LA Times about the Nano plant in Gujarat and how some of the landlosers have managed their finances.

But Pathan, and scores like him who live in the shadow of a new factory built by Tata Motors to make its ultra-cheap Nano car, are the beneficiaries of the race to transform India from a nation of small farmers to an industrialized power.

… Against this backdrop of strife, Pathan’s story is the ideal of what could be achieved if the more than 50 percent of Indians who live off the land get a real stake in the new economy. It’s a principle that advocates of market capitalism and human rights activists can agree on, but that often fails to materialize across rural India, where stories of powerful business interests and corrupt officials conspiring to throw poor farmers off their land are all too common.

Around the Tata plant in Sanand, in the western state of Gujarat, people have begun to talk of the "Nano effect."

Go down a narrow lane that runs to dirt not 15 minutes from the factory and amid the gamboling goats of Chharodi village, you will find 25 new homes.

Property prices have risen sharply — from 50 to 400 percent — and men are making fortunes brokering land deals.

The village head says three dozen of the 3,000 people in Chharodi have gotten work from contractors. The Nano factory hasn’t given them jobs directly, but it has offered a toehold in the industrial economy. They remain farmers, but a growing part of their income comes from informal business ventures or work for contractors.

Pathan and his three brothers sold the government one-third of their family farm to make way for the Nano plant. They were paid 20 million rupees ($432,900) — a fortune even in Gujarat, one of India’s richest states.

Ask the Pathan brothers what they did with this money, and they grin like schoolboys.

They bought 2.7 hectares (6.6 acres) of land — more than doubling their initial landholding — three kilometers (two miles) away, where they are preparing to plant their first crop.

They bought seven tractors and three Bolero jeeps, which they use for contracting work at the Nano site, raking in 455,000 rupees ($9,848) a month.

They are rebuilding their family home. Gone is the mud and thatch. Today their angular concrete two-story is the biggest on the block.

"You’ve done a damn good job out here," Pathan says of Ratan Tata, who heads the Tata group’s sprawling industrial empire.

The underlined part above is an important part. If the land losers are paid multiple times the "current" value of their land, in most places they can easily buy more than that amount of land within a few kms.

Following is an excerpt from a Nageswar Patnaik article in Economic Times. 

There is something to cheer about for the families displaced by the Tata Steel Project at Kalinganagar. These families have achieved zero dropout rate at elementary school level, sustainable environment, poverty eradication, increase in literacy rate, gender equality, empowerment of women.

The achievers of these challenging Millennium Development Goals (MDGs) are not highly educated and extraordinary urbanite people, but ordinary members of self-help groups residing in rehabilitation colonies at Kalinga Nagar in Orissa’s Jajpur district.

Helped by country’s major steel producer, Tata Steel, the self-help groups called Tata Steel Parivars (TSPs) have successfully ensured that all children living in the colony went to the school and got education. Tata Steel is setting up of a 6-million ton per annum integrated steel plant at Kalinganagar Industrial Complex at Kalinga Nagar in Jajpur district.

“The noteworthy achievement of Tata Steel Parivars [TSP] at Kalinganagar is that those families have achieved the target of 100% elementary education with zero school drop out rate,” says Sukanta Rout, an educationist who played a crucial role in motivating the children, mostly tribals, to go to the school.

As many as 159 tribal children have been enrolled in the residential schools in Jajpur district. Similarly, 50 children have got the opportunity of studying in one of the premier schools of the state – Kalinga Institute of Social Science (KISS), here. As many as 213 children are studying in schools as day scholars.

Simultaneously, there is significant jump in the literacy levels of the TSPs from 45% in 2005 to 65% in 2010.

Most significantly, there has been an incredible and drastic change in the will power of women of these relocated families. The empowered women community are now self-employed and going overboard for what they are doing. They have engaged themselves in poultry farming, gardening, stone carving, saura painting and in setting up of small industries like phenyl and pickles.

“A few years before, we were quite poor, – we did not have money to even buy food, let alone send our children to school. Now with own our income, we are not only meeting our day-today expenses but also support our school and college-going children,” says Jamiti Mahanta, head of an SHG group.

If the industries that are coming up in Odisha, such as POSCO and Vedanta, can be made to do the above and perhaps more then it will be a win-win situation for all. POSCO’s current package seems to be a step in the right direction. Following is an excerpt from a Business Standard article on that.

Posco, the biggest foreign direct investment (FDI) in India at $12 billion (Rs 54,000 crore), has offered the largest ever compensation package in the country for the displaced and landless farmers.

The Rs 400 crore compensation — part of its estimated project cost — announced by Posco India for Orissa, is expected to benchmark industry relief in the country. The package will benefit over 2000 encroachers and landless labourers at the Posco site.

While Rs 100 crore will be provided for the acquisition of government and private land, Rs 100 crore will be given towards building a rehabilitation colony and Rs 200 crore as compensation to encroachers of government land.

The move – including encroachers of government land and landless labourers earning their livelihood from the area – was beyond the prescription of the state or national rehabilitation and resettlement (R&R) policies.

While fixing the price of private land at Rs 17 lakh per acre, the Rehabilitation and Periphery Development Advisory Committee (RPDAC) for the Posco project announced a compensation of Rs 11.5 lakh an acre for the loss of betel vines, most of which are on government land. There are about 1,877 betel vines in the site covering 300 acres.

Landless labourers working in the betel vines will get 20 per cent of the total compensation for the loss, which is over and above the amount paid to the owners of the areas where betel is grown.

Similarly, RPDAC has prescribed assistance of Rs 2 lakh per acre for owners of the prawn gheris — most of which are operating on government land — and Rs 1 lakh an acre for farmers using government land for agriculture.

In a never-before step, the South Korean steel giant’s package will pay an unemployment allowance of Rs 2,250 a month to the landless labourers, who will lose their livelihood following the acquisition, till they are provided job by the company. Capping it all, RPDAC has decided to provide alternative housing to families who had encroached and built their houses on government land.

In comparison, the compensation package for sharecroppers or landless labourers in Bengal’s Singur was 25 per cent of what the land owner received — for a single-crop Rs 2 lakh and Rs 3 lakh for double-crop farmland. In Nayachar, the West Bengal government had promised to rehabilitate 100-150 fishermen families who had encroached upon government land — the site for a chemical hub.

The rate is also more than what neighbouring Chhattisgarh is offering. The government there recently hiked the compensation to Rs 10 lakh for an acre for two-crop farmland, Rs 8 lakh an acre for single-crop un-irrigated land and Rs 6 lakh for barren land.

The captive mines given to these companies and the royalty rate is a different issue. I believe that currently the royalty given to the state is too little.