___________

Following is an excerpt from a report in Hindu. (Thanks to Deba Nayak for the pointer.)

… the poor people of the mineral-rich tribal population dominated district of Keonjhar are gearing up to welcome the Mittals and the tribe.

In a dramatic development, Kendujhar Nagarik Manch, the five-year-old district citizens’ forum, in its meeting on Friday resolved to host a symposium at the district headquarter on the need for industrialisation on December 2 to deliberate its benefits for the people of the district. “About 300 people including politicians, opinion makers, academicians, social activists and media persons would be attending it,” forum secretary Mr.Himansu Kuanr told The Hindu.

Industrialisation “We would welcome industrialisation with value addition,” he stated and added that the steel giants like the Mittal would be using the latest technology that would ensure minimum pollution. Sloppy land would be acquired for setting up of the plants and the packages being offered would also benefit the land losers, he said.

Some political parties are misguiding the people by spreading mis-information on the projects and thereby arresting development of the region through industrialisation, the forum’s spokesperson felt.

Mr.Kuanr further pointed out that in the past four years, minerals worth about Rs.36, 000 crore have been exported from the district without rendering any direct benefit to the people of the district. “As Haryana farmers have been amply benefited by industrialisation in and around Delhi, the farmers of the district would be similarly be benefited from industrialisation,” he reasoned.

Following is an excerpt from a report in New Indian Express.

In Padmapur its largely unorganised labour which manufactures fire crackers. Though called the Sivakasi of Orissa, this cottage industry is yet to get recognition here as this year only four to five families were issued fireworks making permit. This despite the fact that almost every household in the village has been into the business for several years.

The dedication to manufacture reflects in the fact that every member of the family, including children contribute their mite.

About 2500 unorganised labourers of more than 500 families belonging to both Hindu and Muslim communities of Padmapur and its adjacent Trilochanpur, Mahajanpur, Purbakachha, Madhyakachha, Campati, Hatikana, Bahadalpatana and Jagannathpatana manufactured crackers to earn their share of profits.

Being a seasonal occupation most of the children of these village bunk classes from Ganesh puja to help their family members and add to the family income.

This is a very interesting set of training programs and presentations in traditional performance arts such as:

• Ghanta Mardala
• Shankirtan
• Gotipua dance
• Chhau dance
• Odissi mardala
• Odissi dance
• Odissi Vocal
• Shankhi Nata
• Shabda Nrutya
• Pala
• Danda Nata
• Dhudki Nata
• Ghoda nata
• Daskathia

Following is an excerpt from a report in Business Standard.

Mittal Steel India, which is in the process of readying its rehabilitation and resettlement (R&R) package for its 12 million tonne Orissa project, will consider issue of shares and land-for-land as part of its compensation to land-losers.

Sanak Mishra, chief executive officer, Mittal Steel India said, “The Orissa government’s R&R policy includes issue of shares as a means of compensation and if the people want it, we will do it. But that will happen at the implementation stage and we have to see the legal standpoint and the mechanism.”

Mittal Steel hopes to finalise the draft R&R package and make presentations to the Orissa government by month end. “If the Orissa government wants to incorporate something, we will look into it.”

The state government’s policy mentions convertible preference share as a compensation option. It says that at the option of the displaced family and subject to the provisions of relevant laws in force, the project authority could issue convertible preference shares or secured bonds up to a maximum of 50 per cent out of one-time cash assistance.

“There were also other physical issues being considered like alternative land for the displaced people. We will, however, have to assess how much land is required,” said Mishra.

… After finalising the scheme in consultation with the state government, Mittal Steel plans to embark on a communication programme with the land-losers.

The project site is a mix of government and private land. The 12 million steel plant at
Keonjhar would require around 8,000 acres, which includes 1,000 acres for the captive power plant and 1,000 acres for the township.

Mittal Steel is also in dialogue with the Orissa for iron ore mines. Various options are being explored, including arrangement with the Orissa Mining Corporation (OMC), a state-owned mining corporation.

“Talks are at an exploratory stage and it was too premature to talk about it. An arrangement with OMC could enable Mittal Steel to go through captive iron ore mine allocation process, which was one of the stumbling blocks for the company’s Jharkhand project,” Mishra added. Mittal Steel requires around 600 million tonnes of iron ore over a 30-year period for its steel plant.

Following is an excerpt from a report in Business Standard.

Orissa, expected to manufacture 70 mtpa of the projected 124.6 mtpa of steel by 2011-12, is also poised to become the country’s ‘power house’ in the next few years, state Energy Minister S N Patro said today.

Orissa had already signed MoUs with 13 power utilities including Tata Power, Visa Power, CESC, Essar Power for generation of 11,000 mw of power. Nearly Rs 60,000 crore would be invested in the 13 projects, he said.

According to the minister, besides the 13 companies, NTPC had also planned to set up two ultra mega power stations in the state which would generate 4,000 mw of power each.

NTPC had also plans to set up another unit which would generate 3,200 mw through coalfiring, he said.

Official sources said that this would be NTPC’s third power plant in the state after 460 mw Talcher Thermal Power Station and 3,000 mw Talcher Super Thermal Power Station in Angul district.

Elaborating on the state’s potential in power generation, Patro said Orissa would generate an additional 1,000 mw of hydroelectricity in the near future through 110 small and mini hydel power units.

… The minister, however, admitted that though Orissa was projected as a power surplus state in terms of generation it faced peak deficit of 2.1 per cent from April to August, 2007.

Following is an excerpt from a report in Times of India about this.

… “We have received a proposal from Arcelor-Mittal, requesting for an arrangement with OMC,” confirmed a senior officer. “The government is exploring the possibilities and details remain to be worked out. It could mean a long term agreement or a joint venture between the two parties,” the officer told TOI. The government, sources said, has set up a four-member committee headed by chief secretary to examine the proposal’s feasibility and chalk out the draft terms and conditions.

Sources said Arcelor-Mittal is yet to submit any application for prospecting lease or mining lease for any iron ore deposits, but evidently does not want to take chances. Hence, it has proposed a tie-up with the state-owned body to serve as a back-up. “The company would no doubt go for captive mines. The pact with OMC would ensure an alternative raw material arrangement for the company’s project,” sources pointed out. Orissa has so far inked pacts for 46 steel facilities, sparking doubts over iron ore scarcity in future.

Arcelor-Mittal, which has signed an MoU with the state government to set up a 12 MTPA steel plant at an investment of Rs 40,000 crore, is the first major player to make this kind of a proposal. Some small steel units had earlier sought to enter into raw material supply agreements with OMC, apparently to ensure a steady flow of iron ore and offset price fluctuations. Some steel plants, which have reached production stage, are buying ore from the market at higher prices, sources disclosed.

We earlier wrote about this in http://www.orissalinks.com/orissagrowth/?p=92  and http://www.orissalinks.com/orissagrowth/?p=69. Following is from a news report in New Indian Express.

As part of its major activity on the silver jubilee year, Chandaka Dampara Sancturay authorities have geared up on the eco-tourism front with more community involvement plans.

The sanctuary has seven tourist routes through which the nature lovers can have a glimpse of some of the 600 plant species, conduct floristic studies and watch the animals including elephants and leopards. The tourist routes of 20 and 30 km length are permitted with vehicles and guides so that the visitors can discover the charm of the wild world.

The routes touch places like Godibari, Kumarkhunti, Kheluachua, Mahuriabadi, Pitagadia, Deras, Ambilo, Saurabila, Mantu hilltop, Chandinimundia, Kuasara and Bhimakhal. But plans are on to develop five ‘nature trails’ in the sanctuary involving Deras bamboo hut-Chandinimundia and back, Deras- Gadhari-Jhumka and back, Jumka- Kheluachua-Dantaria foothills and back, Jhumka-Gadhari and Deras along the reservoir and Chulimundia-Bhimakhal-Kuasara and back, says DFO Akshaya Pattanaik. The trekking inside the sanctuary, including eco-walk, cycling and nature education trips for schoolchildren, would be taken up commercially this year. Also the WWF-India will help in getting literature on select species of flora and fauna of the sanctuary which would be supplied to the children free of cost, he added.

Watch towers with two suits each would be arranged at Kumarkhunti and Ambilo for the trekkers who want to stay put in the sanctuary to enjoy nature from close quarters. The watch towers at Kochilaberena, Mantu hilltop and Pitagadia are also being spruced up for the purpose, the DFO said.

All the eco-development activities are being executed with the active support of ‘‘Bhagabatipur- Manee Sahi Eco-Development Committee’’ at Deras. The ecodevelopment committee is also involved in keeping the environment of the sanctuary clean, especially at tourist spots and it would also get a share of the money earned through these eco-development activities so that the members can continue their good work, Pattnaik adds.

Besides, there are three revamped picnic points near Deras forest rest house which can be used for recreation, amusement and relaxation along with the nature education and to ease off stress in the lap of nature.

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

At the CoreNet Global Summit that met in Atlanta last week, experts identified the up-and-coming cities that are expected to be the economic hubs of the future. In a session called, “Around the World in 90 Minutes,” panelists picked dozens of cities in Asia, Europe and the Americas that offer a business climate making them ripe for development by growing companies.

When selecting European locations for manufacturing centers or Business Process Outsourcing (BPO) offices, René Buck, President of Buck Consultants International, advises companies to look for three differentiators before citing a new European facility; talent, technology and connectivity. Buck said emerging business centers like Glasgow/Edinburgh, Scotland and Istanbul, Turkey are among Europe’s brightest future development stars. But he added that Sofia, Bulgaria is, “on the rise and will attract a lot of new companies.”

Dennis J. Meseroll, director of Tractus Asia Ltd., a location consulting firm, said companies should look to second and third tier cities that he calls “sleepers,” which include Chengdu, China, Orissa, India as well as Ho Chi Minh City/Hanoi, Vietnam.

Despite the attractiveness of exotic new Asian and Eastern European markets, Dennis Donovan, principal of Wadley-Donovan-Gutshaw Consulting, said North, Central and South America, “continues to be very strong,” for outsourced call centers and manufacturing centers. Donovan calls places ranging from Dickinson, North Dakota, to Hermosillo, Mexico to Santiago, Chile, among the hottest future investment hotspots in the Western Hemisphere. …

Following is the Pioneer report on this.

The Centre’s stepmotherly attitude towards the cause of Orissa is clearly evident in the railway sector. While the State contributes significantly to the revenue of Railways, the railway route length spread across Orissa is a mere 2,495 km with an average of 15.03 km per 1,000 square km as against the national average of 19 km and much less than the average in the contiguous States.

During 2003-2004 and 2004-05 with respect to the working expenses as a part of gross earnings, the top two profitable railway zones were the South East Central (62.8 percentage and 56.1 percentage) and the East Coast Railways (66.64 percentage and 61.75 percentage). A big part of the profit of the East Coast Railways comes from transporting minerals from various mines in the tribal areas of Orissa.

Despite this, on an average during the last 16 years beginning from 1992-93, the State has received a paltry of Rs 254 crore per annum only. As a whole during the last 16 years, the State has received only Rs 4,070 crore.

While in 1992-93 it had received Rs 68.48 crore, the State received Rs 107.61 crore in 1993-94. Similarly the State received Rs 93.62 crore in 94-95, Rs 149.24 crore in 95-96, Rs 80.29 crore in 96-97, Rs 158.73 crore in 97-98, Rs 254.74 in 98-99, Rs243.74 crore in 99-2000, Rs 239.19 crore in 2000-01, Rs 178.66 in 2001-2002, Rs 194 crore in 2002-03, Rs 306 crore in 2003-04, Rs 360.98 crore in 2004-05, Rs 374.51 crore in 2005-06, Rs 653.90 crore in 2006-07 and Rs 606.51 crore in 2007-08.

Criticising the Ministry of Railways apathetic attitude towards the State, Speaker of Orissa Legislative Assembly Maheswar Mohanty said the Centre had been consistently ignoring the demands of the State in the railway sector for the last several years. “While preparing the Railway Budget, the Centre should take the revenue contribution and economic condition of the State as a criteria rather than taking population into account,” he said.

BJP State president Suresh Pujari has also criticised the Centre’s funding pattern to the State in railway sector.

It may be noted that East Coast Railway that was made functional from April 1, 2003 with three divisions namely, Khurda Road, Sambalpur and Waltair, has a lowest operating cost in the entire country. However, expansion of jurisdiction of East Coast Railways has become a necessity in light of the recent industrial projects coming up in Orissa for ensuring better coordination and facilitation of bulk customers.

In its memorandum which will be submitted to the Prime Minister and Railway Minister, the House Committee of the Orissa Assembly has urged the Ministry of Railways to either extend the jurisdiction of Sambalpur division to include Jharsuguda-Barsuan-Kiriburu, Rourkela-Nuagaon, Jharsuguda-Himgiri or to create a new division with headquarters either at Rourkela or Jharsuguda with its jurisdiction.

Likewise, the jurisdiction of East Coast Railways may be extended to include Bansapani-Padapahar section and Bhadrak-Laxmanath Road section.

Since Independence, only three broad gauge rail links namely, Talcher- Sambalpur, (174 km), Koraput-Rayagada (164 km) and Daitari-Banspani BG rail link have been commissioned. Projects like Lanjigarh Road- Junagarh sanctioned in the year 1993-94 have not been commissioned due to inadequate allotment of funds.

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

Adhunik Metaliks commissioned its state-of-art rolling mill at its steel facility at Kuarmunda near Rourkela, reports Business Standard.

The rolling will manufacture a wide range of rolled products which earlier had to be outsourced from third party rolling mills. The installation of the rolling mill is in line with the second phase of expansion of the company`s Orissa project.

The rolling mill will complete a vital link in the entire production value chain. It will enable the company graduate from a seller of intermediate product to finished steel.

Adhunik Metaliks will now be able to cater to the very discerning and quality conscious auto component and tier I customers from the automobile industry.

Following is an excerpt from Pioneer, which mentions what Orissa has requested.

The House Committee of the State Legislative Assembly would soon submit a memorandum to the Union Ministry of Railways demanding Rs 1,000 crore in the Railway Budget for 2008-09. In this connection, a delegation lead by Assembly Speaker Maheswar Mohanty would visit New Delhi on a possible date between November 10 to 17.

During their visit they would meet the Prime Minister Manmohan Singh and Railway Minister Lalu Prasad Yadav and submit the memorandum. The House Committee in its meeting on Monday approved the final draft of the memorandum. It may be noted that during 2006-07, the State demanded Rs 785 crore.

In its memorandum, the committee also recommends increase in allotment for ongoing projects, sanction of new railway lines, survey, and introduction of new trains, completion of sanctioned projects, electrification and doubling of lines.

For the expansion of Haridaspur-Paradeep (82 km) line, the committee demands Rs 150 crore to ensure expeditious completion of works. The Ministry of Railways has also been requested to allot Rs 100 crore for the Lanjigarh Road-Junagarha (56 km) line and ensure commissioning of the section between Lanjigarh to Bhawanipatna by December, 2008.

The Committee in its memorandum also demanded an allotment of Rs 100 crore for the Khurda Road-Bolangir (289 km) line and also of commissioning the section from 0-36 km.

On the Angul-Duburi-Sukinda road (90 km) project, the land acquisition process is yet to commence. The Ministry of Railways has been requested to allot Rs 50 crore for the project, the Committee said in its memorandum.

For the Talcher-Bimalagarh (154 km), the Committee demanded an allotment of Rs 50 crore for 2008-09. On the Daitari- Banspani Rail Link Project (155 km), the committee in its memorandum says the BG (Broad Gauge) rail link was commissioned in February,2007. However, residual works will have to be completed. The Ministry of Railways has been requested to allocate Rs 50 crore for this project. It also urged the Railway Ministry to take up gauge conversion works for Rupsa-Bangiriposi and Nuapada-Gunpur railway link.

In its memorandum, the committee also urged the Rail Ministry to start new lines connecting Jeypor-Malknagiri, Bargarha-Nuapda via Padamapur, conversion and extension of Nuapada-Gunupur BG raillink to Theruvali, Jaleswar-Digha, Puri-Konark, Talcher-Gopalpur, Rupsa-Bangiriposi to Gorumahisani, Badampahar to Keonjhar, Berhampur to Phulbani.

The Committee in its memorandum also urged the Ministry to take up survey works in Gopalpur-Rayagada, Jajpur-Keonjhar Road-Jajpur, Sambalpur-Berhampur, Bolangir-Nawapara, Bansapani to Bimalgarh, Lanjhigarha to Boudha via Charichhaka.

It also urged the Railway Ministry to take steps for doubling of the Sambalpur-Talcher BG Rail link, Daitari-Bansapani. The Ministry has also been requested to sanction electrification for Daitari-Banspani BG rail link, Haridaspur-Paradeep BG Rail link, Talcher- Sambalpur BG rail link and Sambalpur, Jharsuguda BG rail link.

I think Orissa is being very shortsighted in its requests. Let me elaborate on this. (See also http://www.orissalinks.com/orissagrowth/?p=529 and http://www.orissalinks.com/orissagrowth/?p=489 for more data points on this.)

1. The total IR budget in 2006-07 was 23,475 crores and in 2007-08 (1st year of 11th Five yr plan) total Ir budget was 31,000 crores. IR is planning to have a 251,000 crore budget for the 11th Five year plan.

2. In that context Orissa asked for 800 crores in 2006-07 and 830 crores in 2007-08.
The above news report says that we are asking 1000 crores for next year.

3. Based on (1), 220,000 crores will be the total IR budget for the next 4 years and next years budget would probably be 45,000-50,000 crores; almost double that of 2006-07. Thus we should at least ask for double of what we asked in 2006-07. I.e., we should ask for 1600 crores.

4. The Pioneer article has the laundry list of things that we want, and it adds up only to 1000 crores. So we have to be imaginative in what we ask. In this we must note that a big part of the 11th plan IR budget goes towards

(a) two freight corridors (neither passing through Orissa)

(b) high speed rail corridors (none passing through Orissa) and

(c) several metro rails (none in Orissa).
In addition we must note what can be sold to the PM and Rail M. (For example: Rail connectivity to KBK, adivasi areas and naxal areas can be sold if the CM makes a case for them. If every other metro area is going to have metro rail, we can at least sell commuter/sub-urban rail. Similarly, big rail stations like Vizag, which are not in the first list of world class stations, will try to be in the next list; so we must sell Rourkela to be in the next list of world class stations. etc.)
5. Hence, following are my suggestions that we should add:

(i) We should send a 1 year proposal as well as a 4-5 year proposal. The 4-5 year proposal will match the 11th five year plan. The 4-5 year proposal should mention clearly that by the end of year 4-5, the following lines should all be completed.
** Khurda-Balangir
** Gunupur-Theruvali
** Lanjigarh Rd – Bhawanipatna – Junagarh – Nabarangpur- Jeypore – Malkangiri – Bhadrachalam Rd (Andhra Pradesh)
** Talcher – Bimlagarh
** Bangiriposi -Gurumahishasini and/or Buramara-Chakulia.
** Badampahar-Keonjhar
in addition to the port connectivity lines of
** Haridaspur – Paradip
** Talcher – Sukinda Rd
** Bhadrakh Dhamara
and the tourism/education connectivity lines of
** Jaleswar – Digha
** Puri-Vedanta U – Konark

Its very important to get a commitment with respect to what should be done with respect to Orissa in the 11th plan.

(ii) We must ask for a rail factory, or two, possibly in PPP mode, to be established in a backward region of Orissa. (Last year they approved 2 in Bihar, one in Rae Bareli and one in Kerala)
(iii) Establishment of suburban-Rail infrastructure around Bhubaneswar with MEMUs and appropriate stations in the Bhubaneswar area to help the commuters without creating jams. The infrastructure is to encompass the following lines.

* Bhubaneswar-Khurda Rd – Puri – Vedanta U – Konark (Past Puri would be new)
* Bhubaneswar – Barang – Naraj-Dhenkanal (exists)
* Bhubaneswar-KhurdaRd – Khurda-Nayagarh (part of Khurda-Balangir)
* Bhubaneswar-Cuttack-Paradeep (exists)
* Bhubaneswar-Khurda Rd – Balugaon-Berhampur (exists)
* Bhubaneswar-Cuttack-Jajpur Rd-Bhadrakh (exists)
* Bhubaneswar-Cuttack-Jakhapura-Daitari (exists)
* Bhubaneswar-Naraj-Salagaon (exists)
* Bhubaneswar-Khurda Rd – Khurda-Banki-Naraj (Khurda-Naraj will be new and will create a loop)

(iv) Include Rourkela in the next round of world class stations.
Finally, if the Orissa house is sending a delegation to the PM and Rail M; they should also visit the planning commission and ask for IIT and two central universities (KBK Central U and upgradation of Ravenshaw University.)

Financial express reports that Orissa Govt. will formulate a sugar policy soon. Excerpts:

“The state will soon announce a policy for sugar industries and cane growers”, said state agriculture director, Arabinda Padhi. “We are, in fact, working on formulating the policy “ he added.

Only last week, the Federation of Sugar Industries, in a memorandum to the state government, had demanded that the government come out with a policy to promote sugar mills and cane farming. According to the federation, there is a huge potential to not only make the state self-sufficient in sugar production but also exports. Pointing out that 12.5% value-added tax on cane, the highest in the country, was killing sugar mills in the state, the federation demanded that Vat rates be immediately rationalised. It said at least 15 crore farm labour days could be created in the cane sector in the state. “

Business standard reports that Posco near Paradip in Orissa has received a major boost with people of two grampachayats, out of three panchayats affected by the project, writing to the district collector pledging their support to the project. Excerpts:

“For its steel project, Posco had sought 4,004 acres of land spreading over three panchayats — Nuagoan, Gada Kujanga and Dhinkia. Of the total land, 3,566 acres are government land while the remaining 438 acres are privately owned.

However, the company was unable to acquire land due to stiff opposition by the local people to the project even after lapse of two years of signing of a memorandum of understanding (MoU) with the Orissa government in June 2005 and issue of 4/1 notification for land acquisition in May 2006.

The recent submission by the village committees of Nuagaon and Gada Kujanga to the Jagatsinghpur district collector, pledging their support to the project, has brightened up the prospect of its establishment, pointed out an official of the district administration.

The two panchayats account for 238 acres, out of 438 acres of private land slated to be acquired for the project. Similarly, of the 471 families likely to be displaced by the project, 275 families belong to these panchayats.

Further boosting up the company’s moral 40 betel vine owners, who are among the most affected villagers, have recently surrendered their betel vines and accepted compensation while 250-300 others are waiting to surrender their vines.

In their letters, the respective village committees have expressed their willingness to part with land for the project and offered their participation in the peripheral development work to be undertaken by the government, the sources added.

However, the Dhinkia panchayat, which is the nerve centre of anti-Posco movement, is yet to reconcile though fissures have appeared in stitching up a united front by the people of this panchayat against the company. Seventy-two families from Patna village under Dhinkia gram panchayat have offered their land to the project.

Similarly, the people of Gobindpur village under this gram panchayat pledged their support to the project in September 2007, and invited the district collector to visit them to discussion on land acquisition and compensation packages.

The growing support for the Posco plant was further demonstrated when over 5,000 people attended a rally and public meeting under the leadership of local MLA and senior BJD leader Damodar Rout at Balitutha, the entry point to the troubled site on November 1.

This was the first show of strength by the pro-project groups whose support to the project was often muted by the vocal and often violent opposition mounted the anti-project brigade in the area. To counter the pro-Posco rally, the project opponents had organised a demonstration just across the Balitutha bridge. However, they were hugely outnumbered with about 1,000 people participating in it.

But the leaders of the Posco Pratirodh Sangram Samiti (PPSS), spearheading the agitation against the proposed plant, are willing to accept defeat just on the basis of this headcount.

Most of the people who participated in the pro-Posco rally were outsiders who were transported to the venue by the ruling party, says Abhaya Sahoo, the president of PPSS.

“We will continue our fight and not allow the company to set up its plant here,” he added.“

This looks positive.
Just to summarize

• GadaKujang and Nuagaon are supporting the project.
• Some villages in Dhinkia Panchayat seem to be favouring POSCO like Patna village and Gobindpur village.
• 5000 people supported POSCO in the rally, but , 1000 went against it.
• 72 families from Patna village have already offered land.
• This was the first show of strength by the pro-project groups whose support to the project was often muted by the vocal and often violent opposition mounted the anti-project brigade in the area