Tata’s Gopalpur plan taking shape; Berhampur on its way to prime time
Berhampur- Gopalpur- Chhatrapur, Business Standard, Ganjam, Tatas August 18th. 2010, 10:38pmFollowing is an excerpt from a report by Dilip Satpathy in Business Standard.
… Tata Steel has finally geared up to put to use its 3,200 acres of land lying idle at Gopalpur in Orissa. Playing the role of the anchor tenant for an industrial park proposed to come up on this patch of land, the company is all set to launch two projects: a 50,000 tonne per annum ferroalloys plant and 40,000 tonne per annum bar mill there.
The two projects together are estimated to cost about 1000 crore.
… "To start with, the proposed two units, the ferroalloys plant and the bar mill, will be our anchor investment. But our ultimate objective is to make this industrial park attractive for investors in the field of steel and steel downstream, speciality and bulk chemicals and engineering", said a senior official of the company.
While the ferroalloys plant will cost about Rs 200 to 250 crore, the bar mill will be set up at an investment of Rs 750 to Rs 800 crore. This will be the third ferroalloys plant of Tata Steel in Orissa. The company is operating two ferroalloys plants at Bamanipal and Athgarh (through its subsidiary Rawmet) with capacities of 50,000 tonnes per annum each.
For the bar mill, the company intends to get the ingots from Jamshedpur by rail and road. Similarly, the company will source raw material for the ferroalloys plant, which will be a backward integration project for the company’s proposed six million tonne plant at Kalinganagar, from its chromite mines in Sukinda valley. Both the units are expected to be commissioned in 30 months time.
It may be noted Tata Steel had acquired 3,700 acres (including 500 acres for the rehabilitation colony) in mid 1990s for setting up of a 10 million tonne steel plant at Gopalpur. However, it shelved the project and the land was lying vacant.
… The infrastructure for the industrial park will jointly be developed by Tata Steel and its associate company, Tata Realty and Infrastructure Ltd (TRIL). A feasibility study on the complex has been done by Ernst and Young while another internationally famed consultant, Jurong of Singapore is currently preparing its master plan. The master plan will be ready in 3 to 4 months following which the company will market the project and attract investors to set up their units in the park, said the sources.
The cost of infrastructure, which includes developing the land and providing road, rail, power, water supply facilities within the park and linking them to external sources, is estimated at about Rs 5000 crore.
This is really great for the Berhampur area. With a fabulous beach and port next door in Gopalplur, good road and rail connectivity, decent infrastructure (a university, a government engineering college, a medical college, several private engineering colleges), nearby tourist spots (such as Chilika lake), and a multi-cultural and multi-lingual population Berhampur is ready for prime time. It just needs to be marketed at a national level.
Moreover, its proximity to the Bhubaneswar area is a big plus. From Khurda Rd (the current southern edge of the greater Bhubaneswar area) it is only 147 kms. Being connected to Bhubaneswar by one leg of the Golden Quadrilateral, one can drive between the two areas in less than 2 hours. So even if it does not yet have air connectivity, its closeness to Bhubaneswar airport will come in handy.
August 19th, 2010 at 4:15 am
I wish the projects at Gopalpur and Sonepur come through along with some central Institutes at Berhampur and it will truely emerge as a major city from Orissa after Bhubaneswar. There are also efforts going on for the Airport project at Berhampur acc to FutureBerhampur Blog. With highest investment coming to Orissa according to RBI report, there is every reason to have many smaller airports in all the major urban centres of the state. Ganjam District alone has a population of 4 million and the Dist has more than 20 NACs or small urban centers along with Berhampur city which has a population of more than half million. Ganjam along with Gajapati, Phulbani and Rayagada Dists will be better served through a Domestic airport at Berhampur for which the Ministry of Defence has shown its keenness more than once.
August 19th, 2010 at 10:00 am
With the way things are going in the state I believe this is one of the few projects that will see the light of the day. As a group the Tatas are very serious about their projects. They don’t throw huge five figures to impress the media (We want it or not there is tremendous hype around investments in Orissa. Most of these projects are never going to materialize.) While their projects get delayed but they generally don’t give up as has been shown by the Dhamra and Kalinganagar projects. Industries coming to Orissa need to do more talk less.
August 19th, 2010 at 11:03 am
I partly agree. The Tata projects are high class and they do a good job.
But, one needs to understand couple of behind the scene things.
(i) Tatas have been mining from Orissa for 100+ years with very little benefit to Orissa. It seems that in the past they would sign MOU for a project so as to get a new lease or renew their lease and then not do the project giving various reasons. (The Gopalpur steel plant was such a case.)
(ii) While I don’t want to sound like a cheerleader for the current government, but they have put their foot down and are not giving Tata new leases or renewing their leases. In fact Orissa government is telling them that we already have given you mine leases, use that for Kalinganagar plant while Tata wants new mines for the Kalinagnagar project and use their old mines for the Jamshedpur plant.
So unlike in the past Tatas are not able to sweet talk or do other things to get their mine leases. Now they seem to be doing the right thing.
See
http://www.hindu.com/2010/06/25/stories/2010062559420300.htm
http://www.mjunction.in/market_news/metals/tata_iron_steels_orissa_land_l.php
http://www.breakingnewsonline.net/odisha/3450-orissa-business-tatas-and-illegal-mining.html
http://sify.com/finance/delay-in-iron-ore-lease-holds-up-tata-steel-s-orissa-project-news-corporate-jg4i4lgecja.html
http://www.thehindubusinessline.com/2009/06/30/stories/2009063051070200.htm
August 19th, 2010 at 11:19 am
http://www.youtube.com/watch?v=88mmoZvIOe4
This is another talent from Berhampur,Orissa whose dance mesmerized the crowd & judges in India’s got talent-Season:2,in episode telecast on 13th August.he got serious skills & consorted effort & support certainly can help him to bring pride to Berhampur & State.
August 19th, 2010 at 3:53 pm
Perhaps the Tata group is not as transparent as it shows it is! In fact I liked the way one of the reports ended – ‘In 1909 the company discovered iron ore in the tribal dominated Joda, 101 years gone, one can easily compare- what Joda has given to Tata and what Tata given to Joda ?’. Unfortunately that is true for all mining towns, but at least the company could have done something substantial for the state. Though if it is any consolation for the state at least the Tatas have done something unlike the Hindalco group.
This is the main reason why we should not sell ourselves cheap. In some ways perhaps the NGOs and the government at the center are like the checks and balances that we so desperately need, even though the intentions of the latter are to score political brownie points. Otherwise most companies will just mine our precious resources and do all their value addition outside the state. Ultimately in 25 years time the state will be left with vast open areas without tree cover and depleted riches.
August 20th, 2010 at 8:26 am
TATA’s presence in Gopalpur, Dhamara and KalingaNagar augurs well for Industrial development of Orissa but when it comes to other Tata group entities like TCS, Tata Motors or Taj Hotels, Orissa doesn’t figure in the scheme of things. Also, Orissa doesn’t have the likes of TISS, TIFR or Tata Cancer Hospital which needs to be looked into given the stake the TATA’s have in Orissa’s mineral resources.
August 22nd, 2010 at 5:51 am
Good to note that, Berhampur is in Progress path but there are many things people expect from Tata Group.
NTTF – Gopalpur (Nettur Technical Training Foundation) provides a three-year diploma course in Electronics, Mechatronics (mechanical and electronics engineering) and Manufacturing Technology -> At least to convert its status to a Degree level College.
TCS (a Tata group) to open its branch in Berhampur STPI.
Tata Medical center (TMC) as like their unit in Rajarhat, Kolkata. And many more….
September 6th, 2010 at 3:12 am
tatas interest to to revive ist virtual presence at gopal pur in the ganjam district is a bold and brave step as the people of the district and and entire southern orissa are very eagerly waiting for mega and branded co. like tatas whose csr is no par with any indian co ,sinces its inception the co has has spent about 45000 crore for welfare and charity which is about half of groups worth of the leadind business house in india, as it is said history repeats it self, this time it should not happen what has happened in mid 90 s with the group.