___________

Following is from a report in Pioneer.

Chief Minister Naveen Patnaik on Friday laid the foundation-stone of the second-phase expansion of the Global Software Development Centre of TCS here at Kalinga Park Phase II.  …. The State Government, along with the Central Government, is setting up of an IT investment region in the State where IT and electronics hardware industry is an important component, he informed.

Patnaik said that to achieve the objective, industry-friendly ICT Policy-2011, IT Roadmap, Special Economic Zone (SEZ) Policy and IT Hardware Policy are being prepared to attract more IT industries to the State. The State’s IT export has crossed Rs 13,000 million during the year 2010-11 with direct employment of more than 10,000 persons.

… TCS Vice-President Projects B Sharma said that the second phase expansion is expected to be completed by March 2012, which would add 3,500 seats to the operation here. After the planned third phase, the total number of seats would be 11,000. The capital expenditure on different phases of expansion is estimated to be Rs 500 crore.

Following is an excerpt from a report in Pioneer.

Chief Minister Naveen Patnaik has made it clear to Defence Research and Development Organisation (DRDO) Director General VK Saraswat that his Government would not allow use of the State’s coastline for carrying out seaward artillery practice and manoeuvres.

This is the State Government’s reaction to the objection raised by the DRDO to the setting up of three minor ports in Balasore. If the DRDO is not bothered about the State’s development, what is the point in giving permission to use its coastline, Patnaik reportedly told Saraswat when both met here on Thursday.

… The DRDO had been conducting field firing and artillery practice along the seacoast in the districts of Balasore and Bhadrak since long. The State Government was giving permission to the DRDO without any objections. This time, however, the State Government refused permission for the purpose, as a result of which no field firing and artillery practice has taken place since April, 2011.

… “Our appeal to the Centre seeking the DRDO’s no-objection for setting up ports not harming the DRDO activities remained unheard. Even they did not listen to our grievances. It was the only way out for the State not to renew the mandatory permission to the DRDO,” said a senior State official.

With the State Government hardening its stand, Dr Saraswat rushed to the State capital and met the Chief Minister. However, Patnaik, sources said, sounded a “big no” to the DRDO chief.

Besides working together on the port locations that suits both parties, Odisha should push the defense department/DRDO for other contributions such as a medical college and an institute like IIST (Indian Institute of Space Technology) Trivendrum.

Update: The complete list of the 351 villages is given below.

The villages mentioned in the three articles below are:

North: Bada Tulsipur, Barabati, Bhagda, Chakradharpur, Paikasahi, Paikirapur, Ramdaspur, Sanatulsipur, Talbast

East: Aampada, Aradiapada, Danahara, Dorabhanga, Kulatira gaon, Mahidharapada, Majhihaar, Mukund, Saheb nagar, Taraboi.

South: Aanlajodi, Basantpur, Bijipur, Chhatrama, Mahatapalla, Mukundpur hata, Sonapada

West: Baudatangi, Baulapatna, Dadhimachhagadia, Kapileshwarpur, Pangarsingha, Somanathpur, Swapneswarpur, Talagada

NACs: Jatani, Khurda, Pipli.

Following are excerpts from a report in Telegraph.

Bhubaneswar Development Authority’s jurisdiction has increased from 419sqkm to almost 1,000sqkm with 351 more villages being brought under its fold.

At a decision taken on Saturday, places such as Pipili and Delanga will come under the jurisdiction of the Bhubaneswar Development Authority (BDA). With this, the total number of villages under the authority’s fold has gone up from 205 to 556.

… Therefore, they were struck off the list. The new additions will have 263 villages from Khurda and 88 from Puri district.

… Sources said earlier the developmental drive had been largely restricted to the Phulanakhara-Khurda stretch. However, with the expansion of the surrounding areas, the development zone would form a circle like structure.

While in north, it would include villages such as, Bhagda, Paikirapur, Barbati and Talabast, in south, it would have Chhatrama, Bijipur and Mukundpur.

Likewise in the east it would have Dorabanga, Danahara and Saheb Nagar while Dadhimachh Gadia, Somanathpur and Talagada in the west.

Planning member of the BDA Prashant Kumar Patnaik said: “Immediately we will go for a comprehensive development plan of the newly included area.

Following are from Sambada and Samaja:

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

The State Government on Tuesday announced creation of 669 new doctor and para-medical staff posts along with an addition of 869 beds in its three medical college and hospitals.

Four new departments have been notified for the SCB Medical, Cuttack, and two each for MKCG, Berhampur, and VSS, Burla.

The move marks the beginning of efforts by the Government to increase the MBBS seat strength in the three medical colleges from the present 150 to 250.

The process of assessing infrastructure, faculty and other capacities along with identifying the areas that need attention in the medicals so as to get the approval of the Medical Council of India (MCI) has started. A detailed proposal would be sent to the MCI soon, sources said.

Health Minister Prasanna Acharya on Tuesday said 478 beds would be added to 1,200-bed SCB along with 40 doctors and 126 para-medics, including nurses.

Four new departments in Transfusion Medicine, Emergency Medicine, Rheumatology and Hepatology have been announced.

Three professor, 11 associate professor and 34 senior resident posts have been created.

The MKCG would have 181 more beds with two new departments in Transfusion Medicine and Emergency Medicine.

The new posts include two professors, four associate professors, 12 assistant professors, 39 senior residents, 105 staff nurses, 10 nursing sisters, one assistant matron and 15 attendants.

The VSS has been infused with 210 new beds and two departments on Transfusion Medicine and Emergency Medicine. New posts include two professors, five associate professors, 22 assistant professors and 37 senior residents.

(Thanks to http://orissadiary.com/CurrentNews.asp?id=26974.)

Hon’ble Deputy Chairman, esteemed Members of the Planning Commission, Hon’ble Chief Ministers of the eastern region, senior officers of the Planning Commission and State Governments. 

2. Let me convey my appreciation to the Planning Commission for initiating the regional consultation process with State Governments and other stakeholders for finalizing the Approach to the 12th Five Year Plan.  The Planning Commission has identified twelve strategy challenges for the Twelfth Plan.  These strategy challenges need to be carefully analyzed at the State level.   While it may not be possible to discuss in detail all strategic issues, I would like to highlight a few major aspects concerning the development needs of States like Odisha. 

3. The first challenge of the 12th Plan is to enhance the economy’s capacity for growth and to mobilize adequate resources from various sources.  It may be worth mentioning that the economy of Odisha has historically grown and diversified at a very slow pace except in the last decade when it has achieved a real average growth rate of more than 9 percent per annum at 1999-2000 prices.  The per capita income of Odisha is much lower than the national average and the poverty and other human development indicators for the State are very adverse.  The State has a limited capacity to raise its own resources.  Though the State has been making all possible efforts to raise resources needed for public investment to maintain the growth momentum, there would still be a substantial gap between investible funds that can be mobilized by the State and the level of investment required.  To meet this gap, there has to be a national framework by which larger resources can flow to Odisha and similarly placed states.  Any national growth strategy has to give special attention to states having special development needs.  Odisha, with about 40 percent population of Scheduled Tribes and Scheduled Castes, has a special need to accelerate their development and improve their human development indicators.     

4. Odisha favours a development approach that encourages less developed states to grow faster than the national average over a long period of time in order to bridge the widening income gap between poor and rich states and to reduce poverty at a faster pace.   The development approach should also focus on: (a) scaling up investments in agriculture and allied sectors that need to perform above the national average over a long period of time, (b) mitigating adverse impacts of natural calamities and other shocks including climate change, (c) accelerating the development of depressed regions and marginalized classes including Scheduled Tribes, Scheduled Castes and women to substantially reduce regional, social and gender disparities and ensuring inclusive growth, (d) building and substantially improving rural and urban productive infrastructure such as roads, bridges, irrigation projects and ports, (e) strengthening social security system by way of allocating higher resources to primary education, health services and nutrition programmes, (f) addressing the problem of unemployment and under-employment, particularly among young persons and improving their employable skills, education and soft skills to harness opportunities that the growing economy may create, (g) improving the delivery of public services for the poor, (h) increasing convergence of resources from various sources and development programmes for faster poverty reduction and (i) continuing vigorously Public Sector Reforms Programmes, enabling policy framework and improving investment climate.      

5. In Odisha and other eastern states, large populations still live in villages and majority of them subsist on agriculture and allied sectors.   We, therefore, endorse the view of the Planning Commission that transforming rural areas and achieving high sustainable growth in agriculture and allied sectors is a crucial challenge for the 12th Plan.  There is an urgent need to take appropriate measures to raise productivity of the agriculture and allied sectors so that the income and employment opportunities in these sectors are enhanced in a sustained manner.  A vibrant rural economy is needed to ensure increased rural incomes and employment which would be a strong contributor for poverty reduction.  The strategy paper should focus on expansion of irrigation, watershed development and saturation of watersheds, diversification of crops, rural marketing, strengthening of agricultural extension and technology transfer, crop insurance and rural infrastructure.  The plan strategy should also look at ways in which farmers can get remunerative prices for their produce and ensure that the terms of trade do not move adversely against the farm sector.  Availability of credit is also critical for increasing farm output.  We, therefore, urge Government of India to put in place an appropriate macro policy framework to make the farm sector productive and profitable and to liberally fund development activities of agriculture and allied sectors, particularly in less developed states.  

6. Increasing irrigation potential and drought proofing are critical pre-requisites to enhance agricultural productivity.  In Odisha, substantial areas need to be brought under assured irrigation.  Out of about 59 lakh hectare irrigable area, we have been able to tap the potential only of about 30 lakh hectare by now.  We, therefore, urge that the funding under AIBP be stepped up adequately.  I would like to add that there is a need to extend AIBP funding to lift irrigation projects and innovative community based irrigation programmes such as our Biju Krushak Vikas Yojana (BKVY).  It is worth mentioning that the BKVY has been lauded and promoted by NABARD.

7. A major concern, however, is that though the share of agriculture and allied sectors has been declining in Gross State Domestic Product, the proportion of people dependent on agriculture and allied sectors has not been declining in the same proportion.  Major benefits of the economic growth, which has occurred mainly in the service and industrial sectors, flow largely to educated and skilled manpower.  There is, therefore, an urgent need to raise the skill levels of large sections of the population, particularly youth, so that they may find remunerative employment and livelihood opportunities.  A growth strategy that promotes desired skills and skill-based employment opportunities to youth and others has to be given prominence in the approach paper for the 12th Plan. 

8. Development of small scale industries in clusters, ancillarisation, linking industries to supply chains would have to be accorded due attention in the 12th plan strategy.  Employment potential, income generation and export potential of micro enterprises, handicrafts, handlooms and other traditional sectors have not been tapped fully.  Promotion of tourism and other service sector activities are to be given greater importance in the plan strategy.  The efforts of the States in these areas will have to be strengthened by appropriate resource flow and policy inputs by Government of India and this has to be emphasized.  

9. For Odisha and other mineral bearing states, mining and related industrial activities are very important.  Achieving strong growth in these sectors is critical in increasing incomes and poverty reduction.  However, these activities impose significant economic, environmental and social costs in terms of displacement of people on account of land acquisition, loss of their livelihoods and mounting pollution problems.  There is a need for a national policy framework to address these problems in an efficient, equitable and sustainable manner.

10. We have taken several initiatives including the single window clearance mechanism, transparent procedures and well thought out R&R policy, which have been put in place for facilitating setting up of industries.  As a result, there has been a surge in the private sector investments in mining and related industries. We would like to consolidate and strengthen this with due regard to sustainable development and environmental protection as a part of the growth strategy for next plan.  However, in order to attract private sector investment, there is immediate need for high levels of investment in infrastructure like roads, ports, railways, power generation and power transmission and distribution.  My state has already initiated PPP mechanism for infrastructure development in the field of port and road development.  But PPP alone cannot be the answer to infrastructure development in most eastern states including Odisha.  In fact, poor states like Odisha need greater investments in the non-PPP mode than more advanced states where returns on investment in infrastructure will be much higher.  Mobilizing adequate resources for high quality infrastructure in poor states is a greater challenge and the 12th Plan should have appropriate central schemes for liberal funding of infrastructure projects in poor states.

11. Macro policy distortions are proving to be a hindrance to Odisha and possibly other States, which are rich in minerals, in proper husbanding of those resources.  Royalty structures are such that the States are losing out substantially in resource generation potential due to very low royalty rates and delayed revisions of royalties on coal, iron and other minerals.  We urge the Government of India to revise the rates of royalty on coal and other minerals in a timely manner and to compensate the mineral bearing states for revenue losses sustained by them due to late revision of mineral royalties and other causes, as recommended by the 13th Finance Commission.  We reiterate our earlier demand for increasing mineral royalties on ad valorem basis from 10 percent to 20 percent of market prices of coal and other minerals.

12. With a view to contributing to the national efforts for augmenting power production, the State has planned production of 50,000 MW of power.  The establishment of new power plants, however, imposes significant economic, environmental and social costs on Odisha and other mineral bearing states in terms of displacement of people on account of land acquisition and loss of their livelihoods and mounting pollution problems.  Whereas power and coal consuming states benefit because of low costs of coal and power, revenues from electricity duty on consumption and revenue from sales of surplus power, the host states like Odisha bear most of economic, environmental and social costs.  This scenario leads to an inequitable sharing of costs and benefits from the coal mining and thermal power generation.  We have been repeatedly requesting the Government of India to put in place, by way of suitable amendments to the Electricity Act 2003 and the National Thermal Power Policy, appropriate institutional arrangements which would result in fair sharing of costs and benefits of coal mining and thermal power generation.  It is our long standing demand that the host states should get 25% free power from Independent Power Producers and 33% free power from coal reject based power plants on the lines of the National Hydro Power Policy.  We also urge  Government of India that the funds collected under the National Clean Energy Fund should be given back to the States from where coal has been mined to help them take up environment remediation measures.  

13. The 12th Plan should also focus on substantially improving human development indicators and stepping up investments in social sectors, particularly health, education, poverty eradication and other social safety nets.  There is also need to make adequate provisions for gender equality, child and women welfare and welfare of other disadvantaged sections.  Special efforts are needed to arrest fast declining sex ratio among children in 0-6 year age group and to improve the welfare of girl children. 

14. Correction of intra-state imbalances has been receiving special attention in the plan strategy of my State.  Heavy incidence and persistence of poverty in KBK region of the State has been a cause of concern for the State Government.  Though the region has improved through implementation of the Revised Long Term Action Plan, it still lags behind many other regions of the State.  In order to bring this region at par with other areas, the RLTAP has to be extended for at least ten years beyond the 11th Plan with increased funding.  We would also suggest that backward district initiative may be extended to more districts of my State which are equally backward.  

15. We have taken a number of steps to promote decentralized planning at district and sub-district level.  District Planning Committees have been constituted and are functional in all 30 districts in Odisha.  We have also constituted District Planning & Monitoring Units in all 30 districts to assist District Planning Committees for consolidating district plans and monitoring the implementation of various development programmes.  I may add that Odisha has been preparing annual district plans since 2008-09 in a consultative and participatory manner.  Summaries of district plans have been incorporated in the State Annual Plans since 2010-11.  Increasing efficiency and expenditure has been a thrust of our reform initiatives.  Outlays are being increasingly linked to outputs and outcomes both on Plan and Non-Plan side.

16. We support this consultative process for preparing the approach paper for the 12th Plan.  We may also like to add that a uniform policy and uniform programmes for the country as a whole have produced distorted growth, and created inequalities, within different parts of the country.  As a result, regional imbalances have cropped up.  The objective of the 12th Plan should be to correct these distortions by region-specific interventions.  I hope the regional consultations will prove the right beginning for such an approach for the 12th Plan.

17. Orissa should be declared a special category state.
  
Thanking you. 

I think it is time the tone of Odisha’s request change.  We should not ask to be declared a special category state.

We should forcefully demand that Odisha gets properly compensated for its minerals; years of neglect on some of its infrastructure aspects (such as railways) be corrected; environmental impact due to mining (especially coal mining) and power production be suitably addressed; the tribal areas (of Odisha as well as other states) be declared as special regions and special funding (to the tune of J & K and North East) be allocated to address them; and various central ministries must be ordered to treat each state fairly instead of channelling bulk of their funds to the states from where the ministers come from.

Following is from Samaja.

Following are excerpts from an article in Wall Street Journal.

India’s northern state of Punjab was once a symbol of the nation’s economic progress, its advances in agriculture lauded worldwide as a spectacular feat that made India self-sufficient in food production.

But Punjab today faces a grave economic crisis, the result of years of shoddy governance that have stunted growth and created such a mound of public debt that the state is now seeking a multi-billion dollar bailout from the central government. It also is facing high unemployment, an anomaly in a nation that has the highest economic growth rate of any major nation after China.

Once India’s fastest growing state, Punjab is now one of its slowest, with about 6% economic expansion annually in recent years, compared with a national average of 8.5% and top-performing regions that are clocking 11% growth. With few good industry jobs being created, urban unemployment is a staggering 15.2%.

… Many of the problems behind Punjab’s decline – an overreliance on agriculture, the under-development of manufacturing, lack of infrastructure development and overspending on populist welfare subsidies – are major issues for the government in New Delhi.

… Amid the turmoil in Punjab, the state’s ex-finance minister, Manpreet Singh Badal, has emerged as a leading advocate of reforms. …

Mr. Badal says Punjab needs to reduce spending on populist programs such as free power for farmers and cash handouts to lower caste women who get married; make long-term investments in education and infrastructure; and provide more incentives for industrial development.

"We have to think about not just the next general election, but the next generation," Mr. Badal said in a recent interview.

… With little spending restraint and paltry tax collections, Punjab has amassed $15.5 billion in debt. To pay annual debt servicing costs of about $1.8 billion, salaries for government workers and maintain all basic public services, the government is borrowing about $1 billion more per year, Mr. Badal says.

The debt crisis has been a humiliating blow to the proud Punjabi culture and economic history. Punjab’s agriculture sector in the late 1960s and 1970s was largely responsible for India achieving food security. Using new hybrid seeds imported from Mexico and taking advantage of extensive canal networks, farmers saw spectacular yields of wheat and rice. From 1966 to 1969, Punjab grew at an average of 8.4%, twice the national rate.

But by the 1990s, farmers’ yields had begun to stagnate. They began over-using fertilizers, which ultimately damaged the soil. …

Mr. Badal says there’s nothing wrong with agriculture but the state is too reliant on the sector, which makes up 30% of output but has grown only at an average of 3.1% a year for the past five years.

Successive governments since the mid-1990s have pursued populist policies that have left the exchequer in the red. The most sweeping move came in 1997 when the state gave free electricity to farmers to help cope with the costs of running water pumps. Mr. Badal estimates Punjab spends $1 billion per year on such subsidy programs.

… Though Punjab has small-scale industries that produce items like woolen garments, bicycle parts, and sporting goods, the state hasn’t attracted large-scale industrial investment – from foreign or domestic firms – and consequently has relatively few factories employing more than 15 or 20 workers, economists say.

Punjab’s infrastructure woes, including electricity demand that outstrips supply by 24% at peak usage hours, are one reason big manufacturers don’t want to set up shop.

Kaushik Basu, economic advisor to India’s finance ministry, says Punjab is still too focused on spurring growth in agriculture at the expense of other sectors. "It is tilting the incentives away from services and industry, which if it is unleashed, the growth potential of Punjab is huge," he said.

The above has a lot of lessons for Odisha in terms of what it should not do and what it should continue to do.

• Odisha is a power surplus state and with many new power companies in the pipeline, it will continue to remain power surplus. It should tout this to get more diverse and employment-reach industries to Odisha. On the other hand it needs to address the environmental concerns and be smart in locating the power plants.
• Odisha got out of negative budgets that depended on loans a few years back. It needs to keep a close eye on not getting into that situation again.
• More …

Following is from a PIB report.

The size of the annual plan for 2011-12 for the State of Orissa was finalized here today at a meeting between the Deputy Chairman Planning Commission, Shri Montek Singh Ahluwalia and the Chief Minister, Shri Naveen Patnaik. The State will have a plan size of Rs.15200 crores.

Deputy Chairman, Planning Commission, Shri Montek Singh Ahluwalia complimented the State Government for the progress achieved in many areas. He said Odisha was figuring amongst the State doing well in poverty eradication and human development. Satisfactory progress has been recorded in social sectors including education and health.

Planning Commission appreciated the State Government for achieving a real average growth rate of 9.57 per cent during the first three years of the eleventh Plan. He said in the agriculture and allied sector growth rate of 4.8 per cent has been achieved during the same period. The State Government was advised to focus on making progress more inclusive and on reducing regional disparities. The State Government was also advised to better utilize science and technology in addressing the development related problems of the State. Attention was drawn to the condition of tribal and women and children in the State. It was pointed out that the State has done a good work in reforms and port sector was doing exceptionally well.

The Planning Commission has offered expertise in handling the problems which the State was facing following reforms in the power distributing sector. A team from the Commission will be visiting State with a purpose to find solution.

Mr. Naveen Patnaik said that the State has been assiduously pursuing the development agenda to achieve a sustainable and inclusive higher economic growth, accelerated overall development and a faster rate of poverty reduction. The development strategies include: strengthening human development sectors such as education, health services, food and nutritional security; improving welfare of marginalized groups such as Scheduled Castes. Scheduled Tribes and women; reducing regional, social and gender disparities; and scaling up investment in agriculture, allied sectors and infrastructure sectors.

He said removal of disparities is one of the important development strategies adopted by the Government. Several Key initiatives have been taken to address severe problems of underdevelopment and regional disparities. To expedite development of KBK districts an Eight Year Perspective Plan for KBK districts from the year 2009-10 to 2016-17 for a projected outlay of Rs.4,550 crore has been developed.

To get a better idea on how Odisha is doing, I created the following spreadsheet for the various states of India. State by state data is available at http://planningcommission.nic.in/plans/stateplan/index.php?state=b_outbody.htm.

The spreadsheet shows how Odisha’s plan outlay has grown from 5100 crores for 2007-08 to 15200 crores for 2011-12. While we don’t yet have the plan outlays for all states for 2011-12, it is expected that the only state doing better than Odisha in terms of the growth in plan outlay is Haryana. Following are a few comparative observations from the spreadsheet.

• For 2007-08 Odisha’s plan outlay was 5105 crores and Kerala’s was 6950 crores. This translated to Rs 1352 per person for Odisha and Rs 2144 for Kerala. For 2011-12 Odisha’s plan outlay is 15200 crores and Kerala’s is 11030 crores which translates to Rs 4025 per person for Odisha and Rs 3402 per person for Kerala.
• For 2007-08 Punjab’s plan outlay was 5111 crores which translated to Rs 2032 per person. For 2011-12 Punjab’s plan outlay is 11520 crores which translates to Rs 4580 per person. Odisha seems to be fast catching up.
• The 2011-12 numbers for Maharashtra is not out yet, but based on the 2010-11 numbers, Odisha is fast catching up with Maharashtra in terms of per person outlay.
• The 2011-12 numbers for West Bengal is not out yet, but based on the 2010-11 numbers Odisha’s per person outlay may be close to twice the number for West Bengal.

The planning commission web site shows where the plan outlays are to be spent and most of the spending is more beneficial to the poor. This explains the popularity of the current BJD government among the people. But many do not see the forest for the tree and there are more brickbats than bouquets for the current Odisha governemnt  and bureaucrats.

Non-ideologues and open-minded people need to look at the above spreadsheet and make fair assessment of the government and need to stop following the communist leaders from Kerala and West Bengal who have demonstratably dragged down their state and their people. In that regard it is ridiculous that many leaders from Odisha invite communist leaders from these states to Odisha and give them a platform to talk about how Odisha should follow their negative path.

Following is from a report in Economic Times.

What’s in it for the locals?

Asit Swain, who lives in Nawagaam, one of the affected panchayats, told ET that the compensation package has been finalised. Farmers will get Rs 11,500 for every decimal (one-tenth of an acre) of betel vine plantations and Rs 18 lakh for every acre where two crops can be grown in a year.

Those growing cashew or farming prawns on government land (without land titles) will get Rs 2 lakh per acre. As for the landless,they will get Rs 2,250 per month till they find employment. They will also get a sum, added Swain, equal to a fifth of what the betel vine cultivators and farmers get.

In addition, two months ago, Industrial Promotion and Investment Corporation of Orissa (Ipicol) recommended a new clause be added to the MoU stipulating that 90% of the unskilled and semiskilled workers, 60% of the skilled workers and 30% of the managerial posts in the project be hired from the local community.

What’s in it for Posco?

Clearly, the project continues to be hugely lucrative for Posco, which is why the company is staying on despite all these delays. The company will get a guaranteed supply of iron ore for at least 30 years, a commodity, whose prices have soared 43% since the beginning of last year.

From recent news that are coming out (see for example,  http://www.business-standard.com/india/news/anti-posco-brigade-hit-hard-by-defectionvillagers/434888/ ) it seems like the POSCO project will now sail through.

With that assumption, I suggest that the government take better care of the people that are being displaced and keeps it focus on the "From mineral resources to Human resources" theme.

To take better care of the displaced people:

(a) the government must have a mechanism to ensure that the compensation paid to the people is not blown away in a year or 2 and the displaced people have nothing to fall back on. Some approaches such as annuity payments for part of the compensation and making the people a shareholder of the plant with specialized shares, which can not be sold immediately, need to be considered. In addition the R & R must include the education of all kids (of displaced people) in decent schools (DAV type), similar to what Vedanta University Project was/is(?) doing in Puri.

To address the "mineral resources to Human resources" goal:

(b) the government must insist that POSCO establish in Odisha a significant branch (or a similar institute) of its top ranked (in research) university POSTECH of S. Korea. This is the least they can and should do for being assured of raw minerals at a low low price.

(c) the government must insist that POSCO establish more of its ancillaries in Odisha itself rather than in other states.

Following is the letter.

I have several questions and doubts:

• Is it possible under the central govt. policies on mines that the state can take over the mines?
• What about the mines for which lease have been already granted? For example, the various leases that Tata Steel has? Can the state just unilaterally terminate the leases and take over the mines. I don’t think so. See http://mines.nic.in/faq.html.

I think Mr. Jena, if he is really sincere, should elaborate on how the state can take over the mines. Otherwise, he is just playing politics.

Following is from a report in Business Standard.

Orissa government today approved nine new projects, including coal-to-liquid (CTL), steel and aluminium units involving investment of Rs 1,36,000 crore.

The projects got the final nod at a meeting of the high-level clearance authority chaired by Chief Minister Naveen Patnaik, Industries secretary T Ramachandru said.

Apart from two CTL, two steel and one aluminium units, the approved projects included a power plant, one textile unit, a paper plant and an aluminium park, he said.

Among the major proposals was the Rs 42,000 CTL project of Jindal Symflex Ltd to be set up at Durgapur in Angul district using German Lurgi technology, he said adding its capacity would be 80,000 barrels per day.

Requiring 4,000 acre of land, the project would have an 1100 mw captive power plant. Set to provide 6500 direct employment, it would use 90 cusec water from river Mahanadi.

Another CTL project is proposed to be set up by Strategic Energy Technology Systems Pvt Ltd, a joint venture of Tata and Saso, at an investment of Rs 35,000 crore at Gudiakateni in Dhenkanal district.

With a capacity of 80,000 barrels per day, the project requiring 4,000 acre land would have 1100 mw generation facility. It would generate 6700 direct employment while drawing 90 cusec water from river Mahanadi.

An aluminium project is proposed to be set up by a joint venture of L&T and Dubal at an investment of Rs 30,000 crore over an area of 4000 acre in Rayagada district. Its refinery would have 3 mtpa capacity and smelter 1.5 mtpa. It would draw 60 cusec water from river Nagavali.

Seeking to further raise energy production, the HLCA cleared a proposal of Lanco Dabandh Power Ltd to have another 1320 mw unit at an investment of Rs 5000 crore in addition to its earlier plant of same capacity in Dhenkanal district.

In textile sector, Andhra Pradesh based NSL Textiles Ltd would set up an integrated textile plant at an investment of Rs 1500 crore with a promise to provide 5000 jobs and steps to encourage one lakh farmers to grow cotton over an area of 2.25 lakh hectares of land.

Following are excerpts from a report in Pioneer.

With this, the total investments in the State’s industry sector went up to `5.36 lakh crore.

… Principal Secretary of Industries, T Ramachandru said the two ambitious coal-to-liquid projects are first of its kind in the country to be set up in joint venture. While Jindal Synfuels Limited of Jindal Steel and Power would set up a `.42,000-crore plant with technical collaboration of Largy of Germany, Strategic Energy Technology, a Tata venture, would establish its project with an investment of `45,000 crore with technological collaboration of Sasol of South Africa.

He said Jindal;s plant would be located at Durgapur in Angul district with a production capacity of 80,000 barrels of diesel and other petroleum products per day. Besides, Jindal Synfuels would also establish a 1100-MW captive thermal power plant. The project would require 90 cusecs of water to be drawn from the Mahanadi. It would require about 4000 acres of land. It would provide employment to around 6,500 persons.

The Tatas would set up their project in Dhenkanal district in 4,000 acres of land with a requirement of 90 cusecs of water. The project, which includes a 1,100-MW captive power plant, has direct employment potential of 6,400 persons and would produce 80,000 barrels of petroleum products per day, Ramachandru said.

He said both the projects have already been allotted with coal blocks by the Central Government.

Aditya Aluminium would establish an aluminium park at Katarbaga near Rengali in Sambalpur district by investing `1,300 crore to encourage ancillary and downstream industries in the small-scale sector. The park, which would require 211 acres of land, would facilitate units like foundry, wire drawing, extrusion and coil in its cluster.

The HLCA also approved the proposal of L&T Dubal, a joint venture company of L&T and Dubal Aluminium of Dubai, to establish an integrated aluminium project with a 3-MTPA alumina refinery and a 1.5-MTPA smelter with an investment proposal of `30,000 crore. The aluminium project would be located at Rayagada. The project, whichwould provide direct employment to 3,000 persons, would require 4,000 acres of land and 60 cusecs of water to be drawn from Nagavali river. The company is already in possession of bauxite mines.

Andhra Pradesh-based NSL Textile has also received clearance of its proposal to set up an integrated textile project at Rayagada with 3-lakh spindle capacity. The company would invest `1,500 crore to produce 6,000 pieces of cloths of varied qualities per day, Ramachandru said. He said the company would enter into agreements with farmers for cultivation of cottons to meet its raw material demands. The company would involve at least one lakh cotton growers for cultivation of cotton in 2.5 lakh acres of land in a buyback process. It would instal ginning, cotton processing, yarn preparation and finished clothes plants. It requires 400 acres of land Besides these new projects, the Industries Secretary said, the HLCA cleared the proposal of JK Paper Ltd of Rayagada to expand its capacity to 1.5 lakh tonne per annum with an involvement of `1,475 crore. With the capacity addition, the company would provide employment to 3,800 more persons. The company has applied for 150 acres of land to its existing 659 acres to set up the expansion project.

The HLCA also accorded approval to Adhunik Metalics to expand its steelmaking capacity to 3.2 MTPA in its Kuanramunda project in Sundargarah district. The company, which proposes an additional investment of `8,125 crore, promises to provide 2,100 more jobs. Presently, its production capacity is around .041 MTPA. It requires 100 acres of land for the expansion project.

OCL Iron and Steel Ltd got the clearance for capacity addition to its project at Kutnia, Rajgangpur to 0.95 MTPA at an investment of `2,834 crore. It proposes to provide 2,500 more direct jobs. It also envisages downstream industries and requires 650 acres land.

The HLCA also approved the proposal of existing Lacno Babandh Power Private Ltd at Khadakhprasad to double its power generation capacity from 1,320 MW.

It proposes to set up two new units of 660 MW and invest additional `5,000 crore in its thermal power plant. It requires an additional 700 acres of land and would provide employment to 800 more persons, the Industries Secretary said.

Following is an excerpt from a report in Business Standard.

The State Level Single Window Clearance Authority (SLSWCA) on Monday cleared two projects in the energy sector involving a total investment of Rs 1,045 crore.

The projects which got the nod of the Single Window authority are those proposed by Hyderabad-based Primo Power & Infra Ltd and Konark Kanti Energy Ltd.

Primo Power & Infra Ltd has proposed to set up a 60 MW coal-fired thermal power plant at Gania village in Nayagarh district at a cost of Rs 300 crore. The power plant will create direct employment for 80 people.

"Konark Kanti Energy Ltd will set up 110 MW coal-based power plant at Baghiapara in Boudh district at an investment of Rs 435 crore. This project will generate direct employment for 70 persons. Besides, the company has also proposed to set up a petroleum based downstream industry at Paradip at a cost of Rs 200 crore and a petroleum storage tank at Dhamara at Rs 110 crore", T Ramachandru, principal secretary (industries), Orissa government told reporters after the meeting of SLSWCA chaired by the state Chief Secretary B K Patnaik.

Following is from a report in Orissadairy.

The Government employees will be provided with pension on the very day of retirement. The Department heads are empowered to arrange provisional pension on the very day of their retirement.

The Chief Secretary Bijaya Kumar Patnaik told the media persons here that if any departmental will delay the provisional pension, the department heads will be held responsible. The concerned employee will be paid with interest of 18 % and that will be recovered from the salary of  the department head.

Lets watch and see if this is implemented as stated.

The following is from http://prsindia.org/corruptioncasesindia.php based on data from National Crime records bureau. The data in excel format is available at http://bit.ly/corruptioncasesinindia.

What does the above mean with respect to Odisha:

• Odisha is number three in terms of number of corruption cases. This could mean there is a lot of corruption in Odisha. It could also mean that the government and people are vigilant about corruption in Odisha and hence so many cases are filed. I think it also implies that people and government in Odisha are not afraid of filing corruption cases. There is almost no individual or group or mafia or … who can do corruption in Odisha without risking corruption cases being filed against it. People and the the government are not afraid. The absence of such sacred cows also means that the higher levels are not much corrupt. Otherwise they would not go after the other corruption cases that easily.
• The 33% conviction cases is comparatively low. This could mean that the bar for the filing of the cases is low. It could also mean that the agencies that are supposed to participate in the conviction process are not very efficient or are themselves corrupt. On the other hand Odisha is way ahead of all the other states in terms of the value of the property recovered. That speaks well of the agencies that participate in the conviction and property recovery process.
• Taking all the facts together my overall interpretation is as follows: There is a lot of corruption in Odisha. The people and the government are vigilant and are not afraid of filing corruption cases. There are no sacred cows or dreaded organizations. While the conviction is low at 33%, the high value of the property recovered points to the government being not afraid, being good at recovering property and suggests that the highest levels are not much corrupt.

The following is extracted from http://dailypioneer.com/333439/State-posts-record-revenue-collection-of-Rs-15931-cr.html.

• Total revenue collection:  In 2010-11 amounted to Rs 15,931 crore against Rs 12,194 crore in 2009-10, a growth of 31 per cent.
• Tax revenue collection was fixed at Rs 11,000 crore in 2010-11, the achievement was Rs 11,206.44 crore recording a growth of 25 per cent.
• Non-tax revenue collection, the growth rate was 47.83 per cent with an amount of Rs 4,748.46 crore against a target of Rs 3,500 crore.
• The target of revenue collection for 2011-12 was fixed at Rs 19,000 crore with Rs 13,800 crore as tax and Rs 5,200 crore as non-tax revenue.
• The Governmental dues under professional tax, land revenue, stamps and registration, excise, sales tax, vehicle tax, entry tax and electricity duties have been included under the tax revenue category while the dues under mining royalty, forest and wildlife, major, medium and minor irrigation, water supply& sanitation, interest, dividend and other departmental receipts have been included under the non-tax revenue category.

Following is from a report in ibnlive.com.

The committee headed by chief secretary B K Patnaik cleared two cement projects, an iron ore pelletisation unit and a high tension cable manufacturing unit, official sources said here. The pelletisation project, with 6 mtpa capacity, is proposed to be set up by Chadalavada Pvt Ltd at a cost of Rs 680 crore near Kalinganagar in Jajpur district, they said. The project, proposed to come up in 250 acre, is expected to generate 500 jobs, they said, adding that in the first phase its capacity would be 2.5 mtpa. The cable manufacturing unit is to be set up in 40 acre near Khurda by Gupta Power Infrastructure Pvt Ltd at an investment of Rs 192 crore. It has the potential to hire about 400 people. One of the cement units is proposed to be established in 25 acre, by Jajpur Cement Ltd near Kalignanagar, at a cost of Rs 63 crore. Its capacity would be 0.5 mtpa. Similarly, Nabadurga Industries Ltd seeks to set up two units at a cost of Rs 280 crore. It would have a clinker unit at Kantabanjhi in Balangir district and a crushing project at bainchhua in Cuttack district, sources said adding the entire project would have the potential to provide employment to 400 people.

Following is an ad from Dharitri.

Following is from http://www.business-standard.com/india/news/opgc-coal-block-row-orissa-cm-seeks-pms-intervention/427821/.

The spat between the Union ministry of environment & forests (MoEF) and the Orissa government on the issue of coal blocks allocated to the state owned Orissa Power Generation Corporation (OPGC) has intensified further with Chief Minister Naveen Patnaik seeking Prime Minister Manmohan Singh’s intervention on the issue.

The MoEF in a recent move had proposed to change the category of the Meenakshi group of coal blocks allocated to the Ultra Mega Power Project (UMPP) proposed at Sundergarh from ‘no go’ to ‘go’ under the condition that the Ministry of Power (MoP) would give up opening up of Manoharpur and Dulinga coal blocks allocated to OPGC and National Thermal Power Corporation (NTPC) respectively.

The move had left the state government officials, especially the OPGC authorities, sulking with the state energy secretary P K Jena and the state energy minister Atanu Sabsyasachi Nayak writing letters to the P Uma Shankar and Union power minister Sushil Kumar Shinde in this regard.

Patnaik has shot off a letter to the Prime Minister, stating that it would not be fair on the part of MoP to accept such a move at the cost of two other projects, particularly which is the only state owned project.

He has requested the Prime Minister to intervene in the matter and take a favourable stand in the upcoming meeting of the Group of Ministers to clear OPGC’s Manoharpur and dip side of Manoharpur coal blocks into the ‘go’ category.

"Given that the coal blocks allocated to OPGC fall within a cluster of blocks owned by Mahanadi Coalfields Ltd (MCL), Independent Power Plants (IPPs), UMPP and NTPC, any decision taken in favour of the UMPP block alone would be unfair, particularly considering the significant progress and investment made by OPGC vis-a-vis other two projects in consideration (UMPP and NTPC)”, Patnaik has stated in his letter.

Earlier, the state energy minister in his letter to the Union power minister dated February 26 had stated that Orissa is relying on OPGC’s project for meeting its future power security since the project is well placed to move into construction during the current financial year and any adverse decision in the case of coal blocks allocated to OPGC will be a serious blow to the state’s future power supply scenario.

Pointing out that there are only three projects being pursued in the same footing- UMPP, OPGC and NTPC, Nayak had stated that in case any favourable decision is taken for the UMPP project only, it will be difficult on the part of the state to facilitate and support the UMPP project at the cost of the other two projects, particularly OPGC.

OPGC is pursuing capacity addition of two 660 MW units in Jharsuguda district. It has been allocated Manoharpur and dip side of Manoharpur coal blocks by the Ministry of Coal for captive use. The Meenakshi group of coal blocks allocated for the UMPP project and Dulinga coal block alloted to NTPC lie adjacent to and on either side of Manoharpur and dip side blocks in a continuous stretch.

Following is from http://www.telegraphindia.com/1110310/jsp/nation/story_13693720.jsp. 

Calcutta, March 9: The Calcutta Port Trust (CPT) has offered to relinquish exclusive rights to its extended territory in the Bay of Bengal and turn it into a common zone that a competing port in Orissa’s Dhamra can also use for operations.

But Orissa chief secretary Bijay Patnaik has shot down the proposal, made by CPT chairperson M.L. Meena during a meeting convened by the Union shipping secretary in Delhi last Friday, ministry sources disclosed.

The Orissa government has protested strongly before the ministry, which cleared the expansion in the CPT’s maritime limit through a gazette notification, so the Calcutta port can build a giant floating storage (dock) in the extended area.

Orissa claims the plan encroaches on its maritime area and will hit seven upcoming ports, including the showpiece Dhamra project that has been built by Tata Steel and L&T.

The inter-state row has turned into a legal battle with a public interest litigation being filed in Orissa High Court on Monday against the Centre’s decision to extend the CPT’s limit.

But CPT chief Meena’s proposal that both Bengal and Orissa could use the expanded area isn’t without precedent. Many ports in Gujarat and two ports in Mumbai — JNPT and Navasheva — have common maritime zones.

All non-major ports, like Dhamra, are on Concurrent list of the Constitution, which allows states to pass executive orders like defining their territory. But such orders will be finally subservient to the central decision.

“Business can save nearly $8 million (Rs 36 crore) every year if the transloading (from the floating dock) is allowed to take place. Ships should be given a free choice where they want to go,” said a ministry official.

The CPT plans to use a vessel of 180,000-tonne capacity as the floating dock where smaller ships (Panamax variety) of 75,000 tonnes can unload their cargo. Barges (of 12,000-tonne capacity) can then ferry the cargo to final destinations like Calcutta or Haldia.

The CPT plans to pick a private operator chosen through competitive bidding to build the Rs 300-crore floating facility. It will be stationed in Sandheads, 60 miles south of Haldia for eight months a year. During monsoon, when the sea is turbulent, the floating dock will be taken to Kanika Sands, next to Dhamra port and 60 miles south of Sandheads.

But the choice of Kanika Sands has riled Orissa, which fears the floating dock will take away business from the Dhamra port that has been built at a cost of Rs 3,000 crore. The port is apparently awaiting a railway connectivity to start operations and needs clearance from Mamata Banerjee’s ministry to get going.

In the absence of a floating dock that offers transloading facilities, ships are now forced to offload cargo at Orissa’s Paradip and then come to Haldia because of the low draught — depth — in the silt-clogged channel does not allow heavy vessels. The cargo offloaded at Paradip is then carried by rail or road to their final destinations.

The CPT expects to handle 6 million tonnes of cargo a year through the floating dock and host around 80 Panamax vessels. Each ship can save up to $1 lakh (around Rs 45 lakh) per trip as it will be able to return from the floating dock three to four days earlier than it did if it had come to Haldia. The CPT has also proposed building an exclusive jetty to handle such cargo at Haldia at a cost of Rs 290 crore through public-private partnership.

CPT officials argue that the savings in transportation will help trade, which could pass on the benefits to consumers through lower prices.

The CPT has tried to come up with the floating dock plan at least five times over the past decade but has run into opposition from Orissa.

No private operators were showing interest all these years but the shipping ministry’s move to expand the CPT’s area has given them confidence of taking up the project. The CPT has found support for its plan in Delhi from Mukul Roy, the Trinamul leader who is the minister of state for shipping.

I am very impressed by two things: 

(i) the popularity of the Malkangiri collector Vineel Krishna, and

(ii) the way the Odisha government handled the negotiation after the maoist abduction.

I will elaborate on this at a later point, but for now, please see http://ashok.name/?p=181, http://www.tathya.in/news/story.asp?sno=5030 , and http://www.tathya.in/news/story.asp?sno=5023.

Following is excerpted from a report in Business Standard.

Steel players pay Rs 2041 cr tax to Centre, Rs 1038 cr to state

… the steel sector in the state has recorded an investment of Rs 51940.67 crore till the end of December 2010.

…The 50 steel companies that have inked MoUs (Memorandum of Understanding) with the state government have generated direct employment for 21508 people besides creating indirect jobs for 52448 others.

Out of 21508 people engaged in the direct route, 14217 are from within the state and the remaining 7291 outside Orissa. In the indirect employment category, 38122 people from the state have got jobs and 14326 persons have been sourced from outside the state.

According to the state steel & mines minister Raghunath Mohanty, 29 out of these 50 steel firms have begun partial production, achieving a sponge iron output of 6.24 million tonne per annum (mtpa) and steel capacity of 7.79 mtpa.

These steel units have achieved a CPP (Captive Power Plant) capacity of 1062 MW and have spent Rs 61.21 crore on peripheral development till the end of December last year.

Among the steel investors who have made significant investments in the state are Bhushan Steel Ltd-Dhenkanal (Rs 12000 crore), Bhushan Power & Steel Ltd-Sambalpur ( Rs 7000 crore), Jindal Steel & Power Ltd-Angul (Rs 8470.96 crore), JSL Ltd-Kalinganagar (Rs 5367.59 crore), Essar Steel Orissa Ltd-Paradip (Rs 5077 crore), Adhunik Metalicks Ltd-Kuarnmunda (Rs 1740 crore), Visa Steel-Kalinganagar (Rs 1626.83 crore) and Tata Steel-Kalinganagar (Rs 1302.60 crore).

The units that have started partial production are Aarti Steels Ltd, Adhunik Metalicks Ltd, Visa Steel Ltd, Shyam DRI Power Ltd, Sree Metaliks Ltd, Jain Steel & Power Ltd, Eastern Steels & Power Ltd and Bhushan Steel Ltd to name a few.

…The envisaged capacity of all the steel companies, that have signed MoUs with the state government, is 83.66 mtpa and the state has attracted investments worth Rs 2.30 lakh crore in the steel sector.

Following is from Samaja:

On the education side Odisha must ask for the following:

• A campus of ISMU in one of the mining hubs of Odisha.
• A tribal university and a branch of the IGNTU.
• A central agricultural university in a backward district in Odisha, along with other such districts in India.
• A National Sports University/Institute in Rourkela/Sundergarh with a branch in Kendrapada.
• A rural engineering institute like SLIET Longowal, ABAGKCIET Malda, and CIT Kokrajhar.
• An IIM. (If more IIMs are being established.)
• Upgradation of VSSUT to an IIEST.

See http://www.orissalinks.com/archives/5859, http://www.orissalinks.com/archives/6076, and http://www.orissalinks.com/archives/6091 for the reasoning that can be used to push for these.

Following are excerpts from a report in tathya.in.

… The first preparatory meet for Nabakalebara was chaired by Chief Minister, was attended by P K Mohapatra, RDC, U N Behera Principal Secretary Home, Aditya Prasad Padhi Principal Secretary to CM.

… A Four Lane National Highway is progressing from Bhubaneswar (Rasulgarh) to Puri (Sipasarubali) with almost half the road will be new alignment. 

Meeting decided to approach National Highway Authority of India(NHAI) to develop Four Lanning of Puri-Konark and Puri-Satapada Road. 

Secondly at least seven roads will be taken up for Four Lanning, which include Pipili-Konark, Charichhak-Niali-Phulanakhara, Balighai-Gop, Pipili-Jatnai, Chandanpur-Rameswar, Bira Harekrishnapur-Talabania and Bira Harekrishnapur-Rahangiria Roads.

… There is a need for creating more hotel and lodging rooms, for which appropriate Government land has to be provided to the promoters adopting transparent procedure.

The following maps show the location of some of the names mentioned above.

One interesting point to note is that Puri district’s area is 3,479 sq. km, which is comparable to Goa’s 3,702 sq km. Population wise they are also comparable. Goa’s population is 1.4 million while Puri district’s population is about 1.5 million.

Past the Nabakalebar in 2015, the Odisha government may think of building up on the infrastructure and try to benchmark Puri district with respect to Goa. It may also consider to make it a special district with some special laws that will allow it the flexibility to become as big a tourist hub (or bigger) than Goa, minus the negatives.