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Kalingatimes reports that Posco is definitely interested in the Orissa project.
Excerpts of the Article below

… The latest statement from the authorities of POSCO-India makes it clear that they were here to stay – to pursue their 12 million tonne per annum capacity steel mill project in Jagatsinghpur district.

…, the company has said in a statement that it was `confident, determined and committed’ to make its Orissa steel project happen. …

But the company has said that as per its human resource plan, overseas staff deployment in POSCO-India project was purely need based.

“Staff deployment is in relation to specific assignments and the employee moves with the changes in assignment. Accordingly, when the construction phase begins, there would be reallocation of staff from overseas in large number,” a statement from the company said.

Although there had been undue delay in the implementation of the project due to non-acquisition of land for the proposed steel plant, the company has announced it was hopeful of starting ground leveling work by December this year.

“The company is further encouraged by the support extended by Government of Orissa as well as Government of India for expediting the project,’ the statement said.

“Going by the recent developments, the company is happy to note that there is a greater understanding and wider consensus in favor of the project building up at all levels, notably among people in the project site.” …

If official sources are to be believed, … POSCO authorities were ready to wait for several more years to implement the project.

“The main worry of POSCO-India authorities would be over the day they were granted prospecting licence for the Khandadhar iron ore mines by the Central government.

As regards the people’s opposition to displacement by the proposed steel plant in Jagatsinghpur as well as the move to grant of prospecting licence to the company for Khandadhar mines, sources said that POSCO was used to such resistance.

“They are hopeful that things will slowly start changing and the opposition will lose strength in due course,” a senior government official observed.

Rehabilitation process begins

Meanwhile, the company, in association with the district administration, has started the process for rehabilitating 48 families that had left Patna village under Dhinkia panchayat of Jagatsinghpur following their differences with those who were against the setting up of the steel plant in their locality.

The company was hopeful that a transit camp for the 48 families would come up within four weeks. Simultaneously, efforts were being made to select a site for constructing a full-fledged rehabilitation colony for these families.

A company official said that once the habilitation colony was set up it would attract people from the camp that was opposed to the project.

The families which had come out of their villages on their own and were supporting the project would be given rehabilitation benefits under the provisions of the existing Resettlement and Rehabilitation Policy of the State.

Going by the company’s stand, it appears clear that they might start thinking in terms of packing their bags only if the both the Central Government and the State Government expressed their unwillingness to extend help. But going by the eagerness on the part of both the governments to help POSCO-India, such a situation was unlikely to emerge in the next few years. After all, POSCO-India’s steel project still continues to carry the tag of biggest ever foreign direct investment in the country.

This sounds like a good reinforcement of it’s commitment to the Orissa project.

Market watch reports that POSCO expects to complete land acquisition by year end for it’s Orissa steel plant. Following is an excerpt.

‘Lee also said Posco expects to be able to secure all necessary land for its planned 12 million ton-a-year plant in Orissa, India, by the end of 2007, with construction projected to start in the first half of next year.
Posco is set to invest $12 billion to complete the plant by 2016. Orissa’s state government has so far allocated 1,135 acres of land to Posco, which has requested 4,000 acres. ‘

Other news to be seen is that it has had massive profits due to improved cost-savings from FINEX technology.

Financial express reports that Orissa growth rate for the current year is better than national growth rate. National Industrial growth rate increased at 6.93% for the 11th plan period while in Orissa the growth rate was 11.34%. Simultaneously, while agricultural growth rate in the National context was 1.03% , in Orissa the growth rate was 3% across the 10th 5 year plan period. The overall growth rate was 7.3% for orissa as opposed to National growth rate of 6.5%. Excerpts from the article are as follows:

‘‘The growth rate of Orissa ws 7.3 % during the 10th plan period against the national average of 6.5%,’’ state finance minister Prafulla Ghadei said while replying to the discussion on Appropriation Bill in the state assembly.

Ghadei said the state was on growth path due to the strict fiscal discipline maintained by the government after Patnaik took over the reigns. ‘‘While the growth rate during the previous Congress regime was below the national average in 9th plan period, it increased in the 10th plan period,’’ he said.

Seeking to justify his argument, the finance minister pointed out that while national growth rate in agriculture was 1.03% during the 10th plan period, it was 3% in Orissa which was higher than many other states in the country.

While the national growth rate in industrial sector was confined to 6.96% in the 10th plan period, it was 11.34 % in Orissa, he said quoting what he claimed data obtained from the national sample survey. ‘‘Isn’t it an achievement of the Orissa government,’’ Ghadei asked the opposition, which earlier described the government as ‘non-performing’’. Referring to poverty, Ghadei said Orissa was ahead of neighbouring states like Jharkhand and Bihar in controlling poverty.”

The above reports prove a point that the state has gone beyond signing MOUs and creation of fruitful economic activity in the state, since that is reflected in the survey results.

We just need fruition of the big ticket investments which will result in even greater growth in the next 5 year plan. A note of caution though, current agricultural productivity is still below National average. A plan needs to be formulated to change the per hectare output in the state.

The economic times reports that the new mineral policy has been announced. Excerpts are mentioned in another post. Here, we list it’s salient features.

• The GoM has accepted the views of the mining industry while recommending no changes in the guidelines for exports.[This decision supports POSCO’s case for captive mines]
• More powers provided to state government. The state governments will be able to give preference to companies undertaking value addition within the state while allotting iron ore mines. This will reduce standalone mines.
• The policy will provide captive mines to all steel units in operation up to July 2006.[I’m not sure about it’s implications for POSCO]
• The policy will now aim towards procedural simplification for attracting investments in the sector.
• It will also benefit the states as under the new policy, the present system of specific rate royalty will shift to ad valorem rate of 7.5%.[This will have great benefits for Orissa and other mineral rich states]. Once notified, the proposal will increase royalty earnings by almost six times.
• The states sitting over mining applications of companies will be penalised as delays will transfer their powers to the Centre.
• Another important aspect of the new policy is that a process of competitive bidding can be initiated for allocation of captive coal blocks. This is presently done by a screening committee within the coal ministry. The bidding process will also be started for all other major minerals.
• Besides, the government will auction mining areas where full prospecting has to be done.
• Companies will have to earmark 3% of turnover for undertaking rehabilitation and resettlement of displaced people under a sustainable development model. However, the ministry of environment and forests will work out fresh guidelines separately to introduce environment-friendly mining practices in the industry.

The economic times states that mining areas will be auctioned for prospecting but the Telegraph says that Auctions mean global giants such as Posco and ArcelorMittal will not be allowed to negotiate for leases with Jharkhand and Orissa on the basis of plans for units in these states. Of course, this statement is speculative. But the states need to be careful before agreeing to this proposal.

Perhaps, We will have to wait and watch for the final notification on the policy.

This is from a document regarding the vision 2030 plan for Bhubaneswar that has been prepared by IIT Kharagpur.

• Zones for multiplex, Retail-malls and theme parks for outdoor recreation
• Film city development with ample natural resources and back up from Orissa film industry with necessary infrastructure
• Logistic Hub for the prime urban centers
• Textile parks with cottages and medium scale industries for local specialized weaving art.
• Development of another major Railway Station, to cater to the trains for Western Orissa
• Circular Trains for cheaper mass transportation within urban areas
• Upgrading the existing Airport for tourists and higher officials for government and private sectors in the capital city
• Multi level Freeways for better accessibility with all roadside modern facilities ( Private Sector participation)
• World Class Club-towns
• Flood management plan for Cuttack with innovative technology (Venice Model)
• Garland Lake System to develop and protect the water bodies in the region
• Major organized open spaces like, urban squares, ceremonial / recreational grounds, and permanent fair grounds as image developers
• Health city/ Education city/ Software parks etc (new urban districts)
• Waterfront development with landscape conservation
• Travel Circuit (Architecture/Archeology/Religious) with facilities like “Palace on Wheels” for international and national tourists
• “Utkal Sanskriti Prangan” – A representational centre of traditional art and culture, craft,cuisine, living style, fair and facilities of Orissa at Bhubaneswar.
• Development of Traditional Art Village (Paper/Cloth/Silver/Pottery) in the line of “Arts Acre” in the peri-urban areas of Bhubaneswar
• Adventure tourism for Reserve forest/ Nature Study camp areas for rare natural species zone
• Development of Nature Corridors –to provide a feel of flora and fauna in the urban setup
• Area development of Lingaraj temple and Bindu Sagar with new allied activities

Business standard reports that SBI has started one more regional business unit in Bhubaneswar. Following are some excerpts.

As a part of the decentralisation process and to provide prompt and qualitative service to the customer, the State Bank of India (SBI) has set up one more regional business office in Orissa. With this the total regional business office of the bank has reached five in the state.

The new regional office will function under the Bhubaneswar zonal office of the bank. …

The new regional office will cover 6 branches in the Khurda district and eight branches of Nayagarh district along with 16 branches of the Bhubaneswar city.

Though to start with the bank will have 30 branches and 24 ATMs under its jurisdiction , two more branches are likely to be opened in that area taking the total to 32. While 16 branches are located in urban areas, 5 branches are located in semi-urban areas. Besides, 9 branches are located in rural areas.

Significantly, 23 branches out of these 30 branches have Core Banking Solutions (CBS) facility.

The new region has a deposit of Rs.748.55 crore and advance of Rs.569.39 crore as on May 2007. The decision to set up the fifth regional office is significant as SBI is the lead bank in both Khurda and Nayagarh districts.

Besides, the bank has initiated measures to implement financial inclusion in Nayagarh district. SBI has a presence at every nook and corner of the state and its branches are financial bigbazars, selling all the products under one roof.

The bank has 502 branches at present and 60 percent of the branches are located in rural areas. Subject to Reserve Banks permission, the bank intended to open 40 more branches this fiscal. SBI has taken several measures to improve customer care through business process re-engineering.

Besides, it is involved in various social activities of the state. …

SBI is the lead bank in 19 districts of the state.

The daily pioneer reports that some more road projects have been finalised.
They are as follows.

• Sambalpur-Rourkela – 165 km
• Joda-Bamebari – 18 km
• Koira-Rajamunda – 46 km
• Nirgundi-Kurundamal (Kaipadar) – 98 km – This is expected to act as a decongestor for the regular Cuttack Bhubaneswar line. I find this as a sign of good planning.
• It has been conceptualised to link Paradip Port directly from Bhubaneswar with a 93.5-km road at an estimated cost of Rs 562 crore
• Suakati to Dubuna in Keonjhar district comprising 56 km is to be upgraded using PPP.
• Palaspanga -Bamebari SH road – 28 km under the Keonjhar Infrastructure Development Company for 48 crores
• Nayagarh- Khandapara road
• Nayagarh-Odagaon-Nalubhal
• Circular road in Angul town
• Gania- Kantilo road
• Saintala- Tikarapada – Kantabanjhi road
• The Centre has approved the improvement of Naranpur-Pandapara-Harichandanpur-Brahmanipal-Duburi road under EIS at a cost of Rs 302 crore during 2007-08.
• Jagatpur-Kendrapara-Chandbali-Bhadrak-Anandpur-Karanjia- ashipur
• Berhmapur-JK Pur
• Kerada-Rayagada-Muniguda- Bhawanipata-Khariar
• Aska-Bhanjanagar-Daspalla
• Daspalla-Banarpal

New Indian express reports that a road master plan with focus on backward regions is in being finalized for Orissa.

Some projects which are worth mentioning are Motu- Jeypore road in the Viayawada-Ranchi corridor which will connect to the Vijayawada Ranchi corridor. Another project is the 82- km Cuttack-Paradip road estimated to cost Rs 218 crore.

Tender has been floated for the Khurda-Balangir road for which the Centre has provided Rs 76 crore.

Excerpts:

The Works Department will prepare the master plan jointly with the Rural Development and the Panchayati Raj departments, Works Minister AU Singhdeo informed the Assembly while replying to discussion on his department’s budget on Tuesday.More projects will be taken up under the public-private partnership (PPP) mode as huge investment is required for developing road connectivity and the State Government is unable to generate funds for all the projects. A PPP policy has been formulated which will placed before Cabinet for approval, he added.

Since economic growth of a State largely depends on the road infrastructure, the Government has to reach beyond budgetary support and go for alternative funding of road projects. The PPP mode is the best possible model to arrange private funds for investment in road sector, he said.

New Indian express reports that the CM wants assistance from the Rural development ministry for this project. It maybe noted the Mr. Subhas Pani who was the chief secretary in Orissa earlier has joined the rural development ministry as a secretary now.

Tathya had reported this news some time back.

Excerpts :

Chief Minister Naveen Patnaik has sought financial assistance from the Rural Development Ministry for construction of the proposed Vijayawada-Ranchi road.

Naveen met Union Minister for Rural Development Raghuvansh Prasad Singh in New Delhi on Tuesday before returning here. According to a release issued here, the Union Minister promised all support for the project.

The Chief Minister also requested the Minister that selection of Indira Awas Yojana (IAY) beneficiaries should be done on the basis of the 1997 below poverty line (BPL) list as the new list is yet to be finalised.

New Indian express reports that multiplay service will be introduced in Cuttack-bhubaneswar metro unit. Multiplay basically involves having a framework which will provide multiple services under a single network. The list of services include voice, data and internet protocol television (IPTV) services under one package. Once connected, the subscriber can avail various services like cable TV, phone, high speed internet and even watch videos on demand through a set top box acquired on hire or outright purchase basis. Following are excerpts from the New Indian Express report.

The public sector telecom company has firmed up plans to introduce its next generation service “Multiplay” in the Twin City as soon as it is able to cement association with content providers.

While the infrastructure is being spruced up to required levels, the company has sought expression of interest (EOI) from private content providers for the tie-up. …

According to Deputy General Manager (IT), BSNL Orissa, PK Chand, Multiplay would offer voice, data and internet protocol television (IPTV) services under one package. Once connected, the subscriber can avail various services like cable TV, phone, high speed internet and even watch videos on demand through a set top box acquired on hire or outright purchase basis.

And as the system takes roots, other features like gaming, TV-based education, audio, T-commerce, video telephony and personal video digital recording can be included in the wide array of interactive applications.

BSNL has commercially launched the Multiplay services for its broadband customers in Pune in March this year in collaboration with the Maharashtra Knowledge Corporation Limited and Divinet as content provider.

Besides data, internet and voice services, IPTV and video on demand have been launched in the initial phase.

More than 100 free to air and pay channels are provided under the IPTV platform while the video on demand enables one watch movies of his choice at his own convenient time.

This is one of the pioneering technologies which underlies the potential of bhubaneswar as a desitination. Even cities like Bangalore and hyderabad dont provide this facility at this point…

Business Wire reports that Invensys Process Systems has been selected by Shandong No. 3 Electric Power Construction Corporation (SEPCO III) of China to implement Foxboro I/A Series distributed control systems (DCS) for a 3,600-megawatt generating station being built in Jharsuguda. Following are some quotes from that report.

Extensive Invensys experience in the power industry (including a large number of projects in China) and expertise in large-scale projects were important factors in the SEPCO III contract award to Invensys.

The DCS contract will encompass an advanced I/A Series automation infrastructure integrating more than 63,000 I/O points. The systems will be used to control the new plant’s boilers, turbines and generators utilizing Invensys’ Performance Plus coordinated control system (CCS) technology, well-proven in power plants worldwide. Subsystem applications will include data acquisition system (DAS), furnace safety supervisory system (FSSS), boiler and turbine sequence control system (SCS), turbine digital electro-hydraulic (DEH) control system, feed water pump mechanical electro-hydraulic (MEH) control system, and electric control systems (ECS).

In addition to I/A Series automation hardware and software, Invensys Process Systems China will also provide a range of installation services, engineering, training, and field service.

The plant is part of the “Power for All” initiative, an aggressive Indian government plan to sustain economic growth with significant additions of power generation capacity in the next few years. The new power plant project is one of the largest projects for SEPCO III, and comprises China’s largest export machinery and equipment order to India.

About Shandong No. 3 Electric Power Construction Corporation

Shandong No. 3 Electric Power Construction Corporation (SEPCO III) is part of Shandong Electric Power Group Corporation and is a leading power EPC contractor for thermal plants, nuclear plants, gas-fired and hydropower stations. SEPCO III was one of the first Chinese power contractors to enter the global market, and has more than 160 generation units of contract experience in China and around the world, including a range of public power and captive power projects in India. Capable of providing the full range of EPC services from its experienced professional staff, SEPCO III is headquartered in Shandong, China.

About Invensys

The Invensys Group (www.invensys.com) is headquartered in London and is listed on the London Stock Exchange, with approximately 30,000 employees working in 60 countries.

I think this is a part of one of the Power MOUs signed last october.

There are plans to connect the Pravat cinema area to Samrat Cinema area in Cuttack by a flyover. For people who are new in Cuttack ‘Pravat Cinema’ is close to two big landmarks. Rajatarangini Cinema Hall and Buxi Bazaar. Buxi Bazaar is the central point in Cuttack. Following are excerpts from a Pioneer report.

Chief Minister Naveen Patnaik on Wednesday held a review meeting on the progress of the upcoming over-bridge that would connect Pravat Cinema to Samrat Cinema. The projected cost of the bridge is estimated at Rs 144 crore.Later speaking to reporters, Cuttack MLA and Minister Sameer Dey said Finance department would release Rs 1.50 crore to the RITES organisation to prepare the detailed project report of the project.

It has not yet been decided whether the bridge that starts from Pravat cinema will touch the Malgodam area or not. The DPR of the project will be completed within five months.

As a byline I might add that there is a huge drain which runs from Pravat cinema till Samrat cinema. It would be a good idea to have a flyover over that. This will eliminate the need for land acquisition and improve sanitation in CMC.

Various Interational journals( forbes,Hemscott,Abcmoney,Reuters UK) have reported that BHP Bilton is buying a stake in a mining unit Ashapura Minechem Ltd.The stake will be 51%. This provides a backdoor entry for BHP Bilton into Orissa. Earliar it tried toi bid in Sesa Goa. BUt that stake was taken by Vedanta group.

BHP Billiton Ltd./Plc. (BHP.AX: Quote, Profile , Research) (BLT.L: Quote, Profile , Research), the world’s biggest mining group, is in talks to buy a 51 percent stake in an Indian alumina project, the Business Standard newspaper said on Monday.Indian mining and mineral firm Ashapura Minechem Ltd. (ASHM.BO: Quote, Profile , Research) will hold the remaining 49 percent in the 25-billion-rupee ($614 million) project in the eastern state of Orissa, the paper said, quoting unnamed sources.The two partners will invest 8 billion rupees towards equity and the remaining 17 billion will be raised through debt, it said.The spokesman for Mumbai-based Ashapura could not immediately comment on the report.In May, an official at Ashapura had said it was bidding for a bauxite mining lease in Orissa.

The Business Standard reported quoted Managing Director Chetan Shah as saying that it would take three months for government approval, and the project would be commissioned by next year.

But he declined to identify a likely partner, the paper said.

Ashapura has a tie-up with China’s Qingtongxia Aluminium Group for a 25-billion-rupee alumina refinery project in the western state of Gujarat. Construction work is scheduled to start in November. ($1 = 40.7 rupees)

There are currently no plans for a Aluminium plant at this stage though.

New Indian express reports that the Orissa krushak sangha demands that Orissa R&R policy is made as an legislation.

I welcome this as a good step. Also, this signifies that the orissa krsuhak sangha is supporting this policy. This is an encouraging sign. Possibly an indication of a partnership between farmers and industries.

Orissa Krushak Mahasangha has urged State Government to make rehabilitation and resettlement (R&R) policy a law. Citing instance of Mahanadi Coalfields which is accused of not implementing R&R measures causing strong resentment among the oustees, chairman of the farmer outfit Bibhudendu Pratap Das said once it is made a legislation, no company would be able to violate it.

Violators would attract penal provision, he added.

He also demanded that special courts should be set up for such cases.

The Hindu reports that Orissa is planning a palace on wheels similar to the concept of the one in Rajasthan. It will be the 3rd such state after Rajasthan and Haryana. I’m sure that Orissa has higher potential than these two states in terms of tourism. Following is an excerpt.

In an attempt to attract more tourists to the state, Orissa tourism has mooted to introduce luxury trains for travellers following Rajashtan’s much hyped palace-on-wheels model. If implemented, Orissa would be the third state in the country after Rajashtan and Haryana to be the proud provider of this service. Sources in the Department of Tourism said talks were on with the Ministry of Railways for earliest launch of the service following which the Indian Tourism Finance Corporation has undertaken a survey to find the feasibility of the project.

The project proposal has already been endorsed to the Indian Railways Catering and Tourism Corporation (IRCTC) that has evinced keen interest in it, the sources added.

Collaborative project

While the Ministry would provide the luxury train, the Orissa Tourism Development Corporation (OTDC) would look after the hospitality expenses of travellers, the proposal says. It would be a collaborative project of the IRCTC and the OTDC, it was learnt.

The travel plan would extend over a minimum period of one week and a maximum period of a fortnight.

The train would commence its journey from Kolkata and would be back to its originating point via Balasore, Cuttack, Bhubaneswar, Puri, Berhampur, Koraput, Sambalpur and Rourkela, it was learnt.

Nice step.

Livemint was mentioning that POSCO is renowned to be socially a very conscious Industrial company. Following are some excerpts:

A mobile health van goes to some villages at least one day a week, young women have trained as beauticians, doctors have flown in from Korea to fix the cleft palates of local children, scholarships for study have been awarded and street lights have been erected.

On an international level, corporate social responsibility (CSR) has been a major focus for Posco, the only major steel company listed in the Dow Jones Sustainability Indexes, which track the performance of leading companies deemed to operate in a socially responsible manner. Its efforts in India coincide with increased attention to the subject.

Perhaps, this could be a pointer for MNCs who want to invest in backward states like Orissa.

New Indian express reported that the vision document for twin cities has been completed.

The Vision for the planning area perceived around the following core ideas:

1. Cuttack and Bhubaneswar as twin cities in COMPLEMENTARY role.
2. Transformation of the Bhubaneswar – Cuttack Urban Complex to a world class urban centre as an important gate way for national and international investments.
3. Promotion of cultural, built and natural heritage in a sustainable manner.

I will update the roadmap in the next post..

The Economic times reports that visa group plans to create a Thermal power plant of 1000 MW in Orissa. This will be done in 4 phases of 250 MW each with the 1st 250 W unit expected to be operational in 2010 September. The project is scheduled to be completed by 2012 March. I hope they pay serious attention to the pollution aspect.

Financial times reports that TCS has hired around 1100 students from Orissa. The primary colleges were ITER, CET and KIIT. As the paper rightly remarks, Orissa is emerging as a major talent pool for IT recruitment. This should be used as a platform by the IT ministry in the state to request other big companies to set up units in the state.

As a side note, KIIT has made tremendous progress in the last few years . It jumped around 65 places in the all India ranking (done by Ooutlook magazine) to 37.

Financial times reports that the accountant general has created a website to track pension schemes in the state. The Accountant General’s office in Orissa has hosted a website, the first of its kind the country, to enable pensioners track their pension, gratuity and general provident fund (GPF) files online. The website name is http://agorissa.nic.in.This will be useful for old people who earlier had to travel to the office to get their pension status. Good model for e-Governance….

TOI reports that Infosys has logged out of Bengal due to High land rates. This news coupled with the fact that Infosys plans to increase it’s headcount to around 5000 in next few years makes Bhubaneswar it’s biggest hub in east India.This projects good growth prospects for Orissa.

Euronext reports that Velcan energy, a environmentally conscious energy generator has plans to create two concessions in the Baitrani river at Tarini and Bhimkund (in Anugul district).

These two places are approximately 150 kms from Bhubaneswar. This is expected to have a power production of 200,000 MWh per annum. This is expected to be a eco-friendly power project since it uses a renewable energy resource.

All the financial details are present in the euronext link above.

NDTV reports that the Gopalpur SEZ has been cleared by the Central Govt.

There was a lot of hue and cry that why the Gopalpur SEZ was not moving further in Orissa. Recent events show that it was held up due to security clearances which was required. Hopefully this will ensure faster development in Orissa.