___________

The PIB release states that the Board of Approval of SEZ recommended grant of formal approval of an SEZ with developer Hindalco Industries Limited in Sambalpur for aluminum and aluminum products. The SEZ will come up in an area of 115.94 hectares.

Myiris reports on this. Following is an excerpt.

Rashtriya Chemicals and Fertilisers (RCF) may be forced to go ahead with a Rs 35 billion coal-to-gas project at Talcher in Orissa to feed its plants, …

RCF has tied up with Reliance Industries and Oil and Natural Gas Corporation (ONGC) for supplying gas. There may be delays due to the Reliance gas pricing issue yet to receive an approval from the centre.

The company is also in talks with Gail India for fuel supply. If the availability of gas become an issue, then it might think of setting up the Talcher project.

Talcher is the most viable site in terms of infrastructure, facilities and proximity to coal mines. The latest coal gassification technology will be utilised to allow the use of coal with high ash content of up to 30-35%.

Statesman reports on plans for non-conventional electrification of 70 villages in Kalahandi. Following are some excerpts.

After long wait of three years, 70 remote villages of Thuamul Rampur and Madanpur Rampur blocks of Kalahandi will at last get electrification benefit through non-conventional energy sources by coming December. The matter was reviewed here in the district level advisory committee of renewably energy, presided by the district collector Mr Pramod Kumar Patnaik.

It will be implemented by OREDA (Orissa Renewable Energy Development Agency) under the Remote Village Electrification Programme of the ministry of new and renewable energy, govt. of India. The ministry has provided central assistance of about Rs.4.38 crore for this purpose.

The beneficiary families will only have to pay Rs.5 towards membership and Rs. 100 for connection charges. Under this programme 40 villages of Thuamul Rampur block and 30 villages of Madanpur Rampur block will be benefited. Out of the 70 villages, 58 villages will be provided power by connection of individual solar energy system, five villages will be electrified by bio-mass power plant and 7 villages through Solar Power Plants.

Besides this project, proposals for non-conventional Electrification of 380 more remote villages pending for long was mooted. This proposal is pending because it has not yet received clearance from Wesco. … It was decided in the Advisory Committee to set up an Energy Park in the Agriculture Farm of the horticulture department located in Raisinghpur on the outskirts of Bhawanipatna town.

Various equipment generating non-conventional energy will be installed and operated in this farm which will work as a demonstration field for the people to educate them about operation and the benefits of non-conventional energy sources.

Earlier news mentioned about IBM expanding to or eying various tier 2 cities including Bhubaneswar. Economic Times now reports that the center in Bhubaneswar will be a development center. Following are excerpts from that report.

IT major IBM will soon open its third development centre in Orissa’s capital city. …

Sources said TCS, Infosys and Satyam already had their centres here while Wipro, Mindtree and Hexaware were expected to decide on their plan soon. Genpact had already committed to invest at Infocity-1, the state government’s IT cluster. …

The IBM team, on its part, assured the state government that they would provide technical know-how for Orissa’s ongoing e-governance programme.

Brain has also assured Patnaik that IBM would help the government to develop the proposed Indian Institute of Information Technology (IIIT) in Bhubaneswar.

IBM already has two centres, one in Chennai and another in Coimbatore, the sources added.

The Statesman reports on this. Following are some excerpts.

The railway ministry continues to show its step-motherly attitude towards the Talcher – Bimlagarh railway line, which is one of the most important and vital railway links in the state. This is one of the most controversial railway projects, having been undertaken about forty years ago and is yet to witness completion. Every year money is put on this 200 kilometre project, for the purpose of keeping it alive.

Answering to a question raised by Mr Juel Oram, the MP, Sundergarh, Mr Velluraman the minister of state for railways, informed that the department has sanctioned an amount of Rs 15 crore for this railway link. The minister added that the amount has been allotted for expansion, survey and other such works needed before laying the railway track. 

“The ministry is not very serious about it, for which it has been neglected for years. This little amount is meant to keep the project alive,” the official said. This vital link will certainly go a long way in improving the economic condition of the state, besides increasing the connectivity between western and coastal Orissa. This railway link will also provide an easy approach for goods to reach the Paradip port and it will earn more profit.

Hindustan Times reported that,

the Orissa government is examining a proposal from the Nuclear Power Corporation of India Ltd (NPCIL) to set up a 4,000 to 6,000-megawatt capacity nuclear power plant, which could be the largest in the country, which today has a total nuclear power generation capacity of only 4,120 MW.

The project is being proposed in the wake of the US government’s offer of technology under the bilateral nuclear cooperation agreement with India.

“The NPCIL made their initial selection of the site based on satellite images,” Orissa Energy Minister Suryanarayan Patro told Hindustan Times on Monday.

A nine-member committee of NPCIL had visited Bhadrak and Ganjam districts for site selection and had finally selected Pati Sonapur in Chikiti Block of Ganjam,he said “They have asked the Orissa Hydro Power Corporation to drill six deep borewells as part of their investigations,” he said.     

Telegraph reports on this. Following are some excerpts.

artisans working on blocks of sandstone along the west banks of the sacred Bindusagar Tank. …

The area around the tank is being converted into a medicinal plant garden, with all the elements of Ekamra Kshetra in mind — a mythological garden. …

The garden, that would cost Rs 72 lakhs, would also have an amla tree (symbolising Parvati) and a bel symbolising Ganesha. The three would have their own pedestals with substructures on which medicinal herbs would be planted. …

The park would have two large pools in between the trees that would contain naturally-purified water seeping in through the earth from Bindusagar. …

… there would be a small platform for music to add to the holy ambience.

Artisans from Raghurajpur and Lalitgiri have been engaged to complete the work that is expected to be over by the next month.

We have used nothing except sandstone and laterite, …

… the boundary and retaining wall would bear exquisite carvings depicting the lord and his stay at the Ekamra Kshetra. …

Cities like Bhubaneswar are very important in terms of heritage, tourism and religion. Its our department’s responsibility to check that the temple city gets its historical and architectural glory back.

Statesman reports on an IBM Center in Bhubaneswar. Following is an excerpt.

IBM is likely to establish a development centre in Bhubaneswar. A release issued by the CMO here said that indications to this effect were given by Mr Stephen W Braim, the vice-president, IBM Asia Pacific, today. Mr Braim met chief minister Mr Naveen Patnaik and discussed IT development and human resource development to meet the growing demand of such professionals. IBM has two development centres in the country and the one proposed to come up in Bhubaneswar will be its third centre, said the release.

Financial Express has a nice comprehensive report on Orissa’s road master plan. Following are excerpts from that report.

The plan will require an investment of over Rs 5,000 crore in the next five years.

We have decided to develop road infrastructure required for facilitating investments in mineral-based industries, IT and tourism, state works minister, AU Singhdeo, said. Roads are essential for efficient and cost-effective movement of commodities… and the government is working towards development of road sectors with specific focus on certain roads, he added.

The government has given top priority to three roads in the state. It proposes to upgrade the 91-km Naranpur-Brahmanipal-Dubri single lane into double lane with an investment of Rs.302 crore. This road is important as it will connect the mineral-rich Keonjhar district with the biggest industrial hub at Dubri in Jajpur district.

Then improvement of the 82-km Cuttack-Paradeep road will be undertaken with an investment of Rs 218 crore. This road will provide round ribbon transport network to the Posco India’s 12 million tonne mega steel project.

The 165-km Rourkela-Sambalpur road will be upscaled to four-lane under public-private- partnership (PPP).

The government has almost finalised a Rs 2,121 crore loan negotiation with the World Bank to undertake the Orissa State Road Project in the next five years from this fiscal. A total of 906 km of important corridors with high-density traffic have been identified under the Project. For development of road connectivity to places of tourism importance, the government has taken up seven projects with an investment of Rs 46 crore this fiscal. The Puri bypass road, Dhenkanal-Kapilash, and Padampur-Paikmal are been included in the list.

Finding some of the high-density traffic carrying important roads in industrial belt commercially viable for development under PPP, the government has lined up at least seven projects for development under BOT (built, operate and transfer) scheme. It has also floated the idea of connecting the industrially-active port town of Paradip with the state capital Bhubaneswar by laying a direct road of 93.5 km with an investment of Rs 562 crore.

The Ring Road will provide an alternative corridor to Natioanal Highway 60 for unhindered movement of vehicular traffic and decongest the township of Cuttack, Bhubaneswar and Khurda. Also in the list of BOT scheme are Joda-Bamebari, Koira-Rajamunda, Suakati- Dubuna in Keonjhar district and Sambalpur-Rourkela road projects. …

Economics Times has a report on JM Financial’s investment in Spandan, a micro finance company. The report has the following mention of Orissa.

JM Financial India Fund, a private equity fund sponsored by JM Financial and Old Lane Partners, will invest Rs 40 crore in Spandana, a microfinance company. …

The micro-finance company caters to lower income borrowers located in rural and urban areas in Andhra Pradesh, Karnataka, Maharashtra, Orissa and Tamil Nadu through a network of 300 branches with a client base of over 10 lakh.

Kalinga Times reports on this. Following are some excerpts.

The Orissa chapter the national e-court project that is aimed at computerising the country’s entire judiciary right from the trial courts to the Supreme Court was launched at Orissa High Court here on Monday. …

A sum of Rs 340 crore will be spent in three phases in the State for the implementation of the project over a period of five years.

The e-court project was simultaneously launched all over the country. …

With the implementation of the e-court project, all judicial officers will be provided laptop computers with well structured data base and better connectivity. Even a witness can be examined without being present physically in court room through videoconferencing.

The project would make it possible to provide Information and Communication Technology (ICT) coverage of judicial processes from filing to execution, and also of all administrative activities.

Under the project, information gateways between courts and public agencies and departments would be created bringing about complete demystification of the judicial process in the country.

Myiris.com reports on this. Following is an excerpt.

Shri Ramrupai Balaji Steels announced on Tuesday that the board decided to set up a cement plant with a capacity of 3 million tons in the state of Orissa involving an estimated investment of about Rs 11 billion.

The Economic Times reports on NALCO’s plan about a cement venture and its plans to convert fly-ash to salable product. Following are excerpts from that report.

… (Nalco) has decided to diversify into cement manufacturing and is looking for global joint venture partners to float a medium to large sized cement plant. Nalco’s proposed cement venture is part of its decision to use fly ash generated at its captive power plant at Angul in Orissa and convert it into sale-able products. …

Nalco is primarily looking at the possibility of manufacturing Pozzo-lana Portland Cement (PPC). A byproduct of coal-fired power plants, fly ash can replace a proportion of the clinker used in cement plants. However, the company is also open to any other form of utilisation of fly ash in the JV.

The company is also seeking JV partners for classification and marketing of cementitious applications in the domestic and export markets. Cementitious products have cement-like, cementing, or bonding type properties. As the largest state owned producer of aluminium, Bhubaneswar-based Nalco operates alumina-aluminium complex along with a captive power plant, and has embarked on a major expansion programme to raise metal capacity.

The project also involves enhancing installed captive power generation capacity from 960 mw to 1,200 mw at Angul. Fly ash is commonly used as a high-performance substitute for Portland cement or as clinker for Portland cement production. Cement blended with fly ash is becoming very common. Building material applications range from grouts and masonry products to cellular concrete and roofing tiles.

Nalco has eight power units of 120 mw each, while the expansion project involves setting up two more identical units of 120 mw. These will be commissioned by the year 2008.

Typically, such units generate about 5,000-6,000 tonnes of ash per day, of which fly ash consists of 4,000-4,800 tonnes. A project is un-derway to allow easy loading of fly ash from the plants. By 2009, the quantity of fly ash that can be utilised is expected to touch 4,500 ton-nes per day. At present, this volume is about 900 tonnes.

“Nalco is yet to decide on the size of the cement plant. However, rough estimates show that a one million tonnes cement plant can be put up to utilise three lakh tonnes of fly ash. Nalco’s current fly ash generation per annum is 3.2 lakh tonnes,” a Nalco official said.

Water power magazine reports on a plan by a French company to build hydro electric projects on the Baitarani river. (This is the river where there is flooding now which has cut off the district HQ town of Jajpur from the rest of Orissa.) Following are excerpts from the magazine report.

French energy group Velcan was recently granted two 30-year concessions to develop projects with a combined capacity of 50MW in Orissa state.

Velcan Energy said it planned to develop a pair of 25MW projects on the same river for the ‘Baitarani’ project and although they would be built 5km apart they will be operated as a single scheme.

The company is proceeding with applications for the necessary authorisations and hopes to start construction in the second quarter of 2009 for commissioning and operations by the end of 2011.

The ‘Baitarani’ scheme will consist of two dams – Bhimkund and Tarini. It is planned that the hydro plants should be able to generate up to 200GWh per year, and secure 210,000 Certified Emission Reduction (CER) credits per annum. …

Business Standard reports on this. Following are some excerpts.

… When several other tribal families are taking loans from the middlemen to maintain their family, 42-year-old Bati has not approached the landlord for the last three years.

Instead, she is taking a loan of grain from the grain bank in her village with a nominal grain interest to maintain her seven-member family.

“Three years ago, we were forced to borrow from the money lender to maintain our family during the rains. The grain that we used to produce went into paying the money lender,” she said.

… “We have developed our grain bank with contribution from the villagers and with support of South Orissa Voluntary Action (SOVA), one of the leading NGOs in the district,” says Gopa Jani, the president of the village committee of Puki.

For setting up the grain bank, each and every household in the village contributed food grain, including paddy and maize. In addition, SOVA contributed an equal quantity to make it a corpus fund of food grain. The grain was stocked in the traditional way in bamboo baskets to protect from insects and managed by a village committee.

“A borrower has to pay an interest of two kg and one kg for 10 kg of maize and paddy, respectively,” says Jani. The loan is repaid by the borrower after harvesting. Puki village has 69 households with a population of 244, and no one now approaches the money lenders for loans, he said.

“The grain bank helps a lot during the lean period from July to September, when we do not get any work,”…

In his village, with 22 households, mostly Kandha tribals, people borrow grain mostly in the rains.

Since last three years, grain banks have been setup in 18 villages in three panchayats of two blocks including Koraput and Kunduru.

“About 928 households of these villages have benefited from the grain banks,” Sanjeet Patnaik, president, SOVA, said. “We are trying to setup more grain banks in coming years,” he added.

The tribal people in Koraput, generally practice podu (shifting cultivation) and collect minor forest produces. Koraput has about 50 per cent tribal population.

Some of the other topics that were discussed in the assembly include the following:

• Insurance for fishermen
• Monthly electricity generation
• Progress on second Infocity
• Foreign demand for handlooms
• Conservation of ancient documents

Following is Samaja’s report on the above.

Following is from Samaja epaper. It gives the reaction of Orissa on the mining policy recommended by the GOM.

Swaminathan Aiyer has a nice column in Times of India on what India should do as it forges ahead. I completely agree with the following sentences of his column.

What, then should we do in the future? We need to focus on connectivity and deregulation, rather than specific industrial policies. Deregulation and connectivity have enabled Indian cities to take off, often in unanticipated new businesses. But 70% of people still live in rural areas. India needs to provide connectivity to every village. Every village should have an all-weather road, electricity and telecom. Every village also needs a functioning school, not absentee teachers.

Provide decent education and connectivity, and the villages will turn into high-productivity towns. I’m not sure this approach is grand enough to be called strategy. But it is what India needs.

Livemint reports the view of miner’s on the iron ore export duty levied by many states. Following are excerpts of that report.

Miners on 8 July demanded the duty on iron ore exports be rolled back, saying it could result in revenue loss of Rs4,554 crore if exports slumped by 30%.
“Iron ore export duty has since been reduced to Rs50 a tonne on fines of 62% and below only. In this context, we feel export duty has achieved none of its objectives,” …

… said there could be a revenue loss of Rs4,554 crore in case of a 30% reduction in exports and a loss of Rs2,642 crore in case exports dipped 20%.

“We also feel imposition of export duty will roll back and throttle all initiatives taken by the mining industry. In fact, ore exporters are losing between Rs200 to Rs300 a tonne owing to rupee appreciation,” …

… argued that the current system of computing the mineral royalty ad valorem is unreasonable. He sought its abolition and suggested the government instead introduce a ‘fixed price’ method to calculate royalty.

Besides the royalty, mineral-rich states have imposed an additional burden on mining industry by levying land tax and peripheral development tax, Sahni said and pointed out that the Jharkhand government has levied land tax at 5% of the commercial value whereas Orissa government has asked the miners to pay 5% of their annual profits for the peripheral development fund.

Similarly the Rajasthan government also has levied mineral-wise land tax at rates varying from Rs10 to Rs100 per sq m, Sharma said. “We feel prima facie, such taxes are not legally in line with the provisions of MMDR Act and may deserve reconsideration,” he pointed out.

Low spending on exploration, delays in clearing applications and difference in fiscal policies pursued by the Centre and states were key impediments to foreign investment in the mining sector. Baldota said the government would have to expeditiously clear applications for prospecting licences and reconnaissance permits.
“The emphasis should be to increase the mineral production rather than enhancing the rates of royalty as being advocated by the states. While computing royalty on ad valorem basis, states add 20% of benchmarked value in royalty to be paid by the miners,” Sahni said.

“This practice is not reasonable and has no basis,” he said. “FIMI would like to request the Mines Ministry for deletion of 20% of the benchmark value in the royalty payable by the mine owners,” he said.

Baldota said no mining lease should be granted without first granting prospecting licence and ensuring prospecting operations within the granted area are duly carried out.

The FIMI is of the opinion that leases which are due for renewal and have total surface area of up to 50 hectares should not attract the provision of public hearing that environmental clearance should not be insisted upon for prospecting licence as the forest degradation at this stage is nil or minimal, he added.

The miner’s demands as stated above is completely against the interest of states.

Livemint reports that RCF (Rashtriya Chemicals and Fertilizers) plans to revive the FCI plant in Talcher. Following are excerpts from that report.

Public sector enterprise Rashtriya Chemicals and Fertilizers (RCF) has planned a capital expenditure of Rs 10,000 crore for the next five years and will consider tapping the capital market for raising funds.

The company is talking to the government on its initial public offer and the process would take six to eight months, …

Of the Rs 10,000 crore capex planned, the debt-equity ratio would be 2:1 and hence the company could borrow up to Rs 7,000 crore while the rest could come from its IPO, he said.

“The company expects to finance its projects largely through internal generation and debt, apart from other modes of generating funds as may be appropriate,” it said in its annual general report.

With the capex money, RCF wants to revive two units–Hindustan Fertilizer Corporation’s unit in Durgapur, West Bengal, and Fertilizer Corporation of India unit in Talcher, Orissa.

Both the units would absorb about Rs 6,500 crore, Jha said.

Livemint reports on NALCO’s expansion plan. Following are excerpts from that report.

State-run aluminium producer, Nalco, will tap the overseas market to raise $250-million by August-end for its ambitious capacity expansion plan.

Nalco is undertaking a major expansion, including ramping up of its alumina capacity at the cost of Rs 5,040 crore. …

In between, Nalco has placed orders on foreign equipment suppliers for its expansion project and the deliveries are due in 2008.

The project involves expansion of capacity of its bauxite mine, alumina refinery, captive power plant and aluminium smelter by about 33%, he said.

Under the expansion, the capacity of bauxite mine in Koraput district of Orissa would be increased from 4.8 million MT a year to 6.3 million MT.

The alumina capacity would go up to 2.1 million MT annually from the present 1.58 million MT, he said. Besides, the capacity at the captive power plant at Angul in Orissa would be ramped up to 1,200MW, he added.

The PSU also plans to enhance its aluminium smelting capacity from 345,000 MT to 460,000 MT per annum.

In the medium-term, after the completion of the expansion project by 2008-end, a growth of 30% is targeted, the official added.