___________

Note, that Jajpur-Rd Duburi is also being 4-laned. With all these 4-laning, Kalinganagar area will be surrounded by four 4-lane segment: NH-5, NH-200, NH-215 and Jajpur Rd-Duburi.

(The above map fragment is from an wikipedia map.)

There will also be two four lane paths from Kalinganagar area to Rourkela.

 With approved plans to four-lane NH 42 between Angul and Sambalpur, the state govt. needs to four lane the segment between Angul and Talcher to have a seamless 4-lane transition between NH-42 and NH-200 at Angul-Talcher.

There is plan to four-lane Bhubaneswar-Puri. The Orissa government should pursue the four-laning of the following:

• NH-42 from Cuttack to Angul
• NH-23 from Talcher to NH-6

The Orissa government should team up with Jharkhand to 4-lane

• NH-23 from Rourkela to Ranchi
• NH-83 from Jamshedpur to NH-6
• NH-5 between NH-6 and Balasore (the last two need for port access in the upcoming ports in the Balasore district)

The Orissa government should team up with West Bengal, Jharkhand, Chhatisgarh and Maharashtra for four-laning NH-6 completely.

These actions will 4-lane the upper part of Orissa with fairly direct 4-lane paths from many areas of Orissa to Delhi and Mumbai. (Fairly direct 4-lane connections exist between Orissa to the south and Kolkata.)

Following is from http://pib.nic.in/release/release.asp?relid=46329.

The Cabinet Committee on Economic Affairs today gave its approval for the development of 4 laning of (i) Panikoili-Keonjhar-Rimouli, (ii) Rimouli-Roxy-Rajmundra sections of NH-215 and (iii) Chandikhole-Duburi-Talcher Section of NH-200 in the State of Orissa under NHDP Phase III A on BOT Basis.

The project cost of (i) Panikoili-Keonjhar-Rimouli section (163 km) is estimated as Rs.1170.59 crore including Rs.84.40 crore towards Land Acquisition (LA), Rehabilitation and Resettlement and preconstruction. Similarly, the estimated cost for Rimouli-Roxy-Rajmundra (106 km) and Chandikhole-Duburi-Talcher Section (133 km) are Rs.849.05 crore and Rs.969.63 crore respectively. The cost towards LA, R&R and preconstruction of other two projects are Rs.195.29 crore and Rs.185.63 crore respectively. The Government would provide the viability gap funding (VGF), which would not exceed 40% of the total project cost excluding the cost of LA, R&R and pre-construction.

The project will be developed by the National Highways Authority of India (NHAI) through the Private Sector Concessionaires who will be selected by NHAI following two stage bidding process. The first stage of the bidding process i.e. pre-qualification of the bidders has already been completed by NHAI. The second stage of bidding process is in progress.

The Concession period for the Panikoili-Keonjhar-Rimouli section will be 20 years. For Chandikhole-Duburi-Talcher Section and Rimouli-Roxy-Rajmundra section the concession period is 18 and 25 years respectively.

*****

AD/SH/LV

Following are excerpts from a report on this in sify.com.

Stemcor India, which is setting up a Rs 1,500 crore iron ore pelletisation project in Orissa, achieved financial closure, securing Rs 960 crore debt with SBI Capital Markets as the lead arranger.

Stemcor India, a subsidiary of Stemcor, the London-headquartered $5 billion steel trading major headed by Ralph Oppenheimer, will fund the remaining Rs 540 crore through equity in setting up a 4 million tonne pellet plant in Kalinganagar.

This will be connected by a 220-km slurry pipeline to Barbil, in Keonjhar district, the heart of private iron ore mining in Orissa, where a beneficiation unit would be located.

Senior Stemcor India officials said that with the financial closure, the first tonne of pellets would be out in 2009.

Several steel companies, already in Kalinganagar or implementing projects, have submitted letters of intent to source raw materials from Stemcor.

The demand is such that the order book for at least 75 per cent of the projected capacity has already been secured.

The company plans to set aside 25 per cent of output to be placed in the spot market to benefit from rising prices of pellets.

Officials said that while the prices of pellets would be on a negotiated basis with customers, lump ore price charged by NMDC Ltd, the state-run mining major, would serve as a benchmark price for the domestic market.

Kalinganagar is the destination for many steel companies like Tata Steel, Visa Steel, Bhushan Steel, Jindal Stainless, Murugappa group and Maharashtra Seamless.

Many of these companies, which do not have mining linkages, are obvious customers of Stemcor pellets.

… In the domestic market, smaller non-integrated steel plants, which typically have blast furnaces but no iron ore plant or sinter plants and do not have resources to invest in pelletisation, would source raw materials from Stemcor.

Also, metallurgically, a combination of lumps and pellets fed into blast furnaces can increase steel production substantially. The Orissa beneficiation and pelletisation project is Stemcor’s second plant after a 6 million tonne plant in Tasmania.

In 2000, Stemcor had entered into a joint venture with Essar for a pelletisation plant in Vishakapatanam but later sold a 51 per cent stake to Essar.

Ranchi express reports that TATA M.D. B. MuthuRaman claims that Orissa is the ideal destination of investment growth among mineral rich states. Excerpts:

” Pleased with the progress of the company’s Kalinganagar (Orissa) project- especially with the approach of the Navin Patnayak government towards industrial development- Tata Steel Managing Director (MD) B.Muthuraman on Wednesday declared the mine-rich State as an ideal destination for investment growth.

“Of the three states- Jharkhand, Orissa and Chattisgarh- where we have announced Geenfield projects, Orissa a doing very well in terms of industrial development. I see the State develop immensely in the next few years,” Muthuraman said at an informal gathering at Beldih Club here.

Tata Steel is setting up a 6-MT Greenfield project in Orissa, besides Korean Steel Giant Psoco and Arcelor-Mittal have also signed MoUs with Patnaik government for setting up a 12-MT Greenfield project each. Among the three, the Tata Steel project may complete early as the company has made much headway in its mission in the last few months.”

” Pleased with the progress of the company’s Kalinganagar (Orissa) project- especially with the approach of the Navin Patnayak government towards industrial development- Tata Steel Managing Director (MD) B.Muthuraman on Wednesday declared the mine-rich State as an ideal destination for investment growth.

“Of the three states- Jharkhand, Orissa and Chattisgarh- where we have announced Geenfield projects, Orissa a doing very well in terms of industrial development. I see the State develop immensely in the next few years,” Muthuraman said at an informal gathering at Beldih Club here.

Tata Steel is setting up a 6-MT Greenfield project in Orissa, besides Korean Steel Giant Psoco and Arcelor-Mittal have also signed MoUs with Patnaik government for setting up a 12-MT Greenfield project each. Among the three, the Tata Steel project may complete early as the company has made much headway in its mission in the last few months.” This is in contrast to TATA local head B.D. Panda’s opinion a few days back , that Orissa is notthe frontline state for investment and Bengal is a preferable option.

This could also be construed a favourable response after the NDTV report talking about TATAs sitting on most high quality iron ore in Orissa.

Also, since the news item was in Jharkhand we should look at this news from a competitive perspective.

Following are excerpts from an Economic Times report.

Siemens Ltd on Friday said it has bagged an order from Jindal Stainless (JSL) to carry out installation related work for latter’s greenfield plant in Orissa.

The company has bagged the order along with Siemens VAI, a division of the Siemens Group Industrial Solutions and Services (I&S), Siemens Ltd said in a communique to the BSE. However, it did not divulge any financial details.

“It (the order) was bagged on the basis of our ability to come up with a fully integrated solution and our track record in executing project in the metals sector,” Siemens Ltd Executive Vice-President (Industrial Services and Solutions Division) N Sivasubramanian said.

As per the contract, Siemens would undertake plant layout for the hot-strip mill and equip it with latest tools. Production is scheduled to start in 2009.

JSL already has an operating plant at Hisar in Haryana and the new plant would be set up at Kainganagar Durubi Duburi in Orissa as part of its expansion plans.

Siemens would also provide customer training, monitor installation of all the components and systems as well as commission the installation, including fine adjustment of the technological models and control systems. The plant would be designed to produce 1.6 million tons of stainless steel strips in the first phase, Siemens added.

In recent years there has been a big jump in the number of kilometers of national highways in Orissa. Following is copied from my page "Roads and Highways infrastructure in Orissa."

Road network: Orissa Roads1; Orissa Roads2; India’s NH network; India’s golden quadrilateral; the part of the GQ/NH-5 that runs through Orissa.

• National Highways in Orissa and India; its growth in recent years:
  • NH 5: Junction with NH No.6 in Jharkhand near Baharagora-Baripada–Baleshwar-Bhadrakh-Cuttack- Bhubaneswar-Khordha-Chhatrapur-Brahmapur– upto Andhra Pradesh Border. (488 kms)
  • NH 5A: Junction with NH No.5 near Haridaspur-Paradip Port. (77 kms)
  • NH 6: From Chhattisgarh Border-Lobarchatti- Bargarh – Sambalpur-Deogarh-Barakot- Kendujhargarh -Jashipur-Bangriposi-upto Jharkhand Border (462 kms)
  • NH 23: From Jharkhand Border-Panposh-Raurkela– Rajamundra-Barakot- Pala Laharha-Talcher-Jn. with NH-42 (209 kms)
  • NH 42: Junction with NH No.6 near Sambalpur– Redhakhol-Anugul-Dhenkanal- Jn. with NH-5 near Cuttack. (261 kms)
  • NH 43: From Chhattisgarh Border– Dhanpunji- Borigma- Jaypur–Koraput-Sunki- Andhra Pradesh Border. (152 kms)
  • NH 60: From West Bengal Border– Jaleswar – Baleshwar (57 kms)
  • NH 75: From Jharkhand Border to junction with NH No.215 near Parsora (18 kms)
  • NH 200: From Chhattisgarh-Machida-Jharsuguda– Kochinda- Deogarh –Talcher-Kamakhyanagar-Sukinda- Chandhikhol (440 kms)
  • NH 201: Boriguma-Ampani-Bhawanipatna– Belgan- Balangir-Luisinga-Jogisuruda-Dunguripali-Bargarh (310 kms)
  • NH 203: Bhubaneshwar-Pipili-Puri–Konark (97 kms)
  • NH 203A: The highway starting from its junction with NH-203 at Puri, connecting Bramhagiri and terminating at Satpada (49 kms)
  • NH 215: Panikoli-Anandapur-Ghatgan- Kendujhargarh– Parsora-Koira-Rajamundra (348 kms)
  • NH 217: From Chhattisgarh Border-Nauparha-Khariar- Titlagarh-Belgan- Ramapur- Baligurha-Sorada-Asika- Brahmapur– Narendrapur- Gopalpur (438 kms)
  • NH 224: Khordha-Nayagarh-Dashapalla- Purunakatak-Bauda-Sonapur-Balangir (298 kms)
• Vijaywada-Ranchi highway (approved by planning commission as reported in May 2006), [July 06] [The Orissa government has been demanding a NH from Vijaywada to Ranchi which will pass through the Naxal infested areas. 1200 km of this 2000km will be in Orissa. CM talked to planning comission about it.]
• Ongoing National Highway work in Orissa
• Future plans for Orissa: [1:april-28-05]; [2:april-28-05].
• Various phases of NHDP: [1]; [2]; [3]
• Other highway plans:
  • 4 laning of Chandikhol-Paradip by February-end of 2007
  • 4 laning of Keonjhar-Panikoili, Duburi-Talcher, Cuttack-Paradeep and Duburi-Keonjhar Highways. [June17-05-Pragativadi]
• Aim-for-with-high-priority/parts-of-it-in-Orissa-govt- plan(page4)-already:
  • Connect NH 215 (perhaps at Jajpur Rd) to Jenapur to NH200 (where it meets Brahmani) with a highway as Jenapur is the location where the National waterway will cross the railway line and Jenapur is 7 kms from where a branch of the line goes to Daitari and Bansapani.
  • Designate AP-border-Koraput-Raygada-Padampur- Berhampur (in NH5) as a National highway. (This will bring Koraput and Raygada, thus a big part of KBK, closer to BBSR) — a slight revision of what is in the plan
  • Designate Anandpur (NH 215)-Bhadrak-Dhamara port as an NH. (This will bring Dhamara port closer to Jharkhand, thus helping industries in Jharkhand and Orissa.)
  • Jagatpur-Kendrapara-Chandbali-Dhamara — make it an NH (alternative route to Dhamara port)
  • Panikoili/Kuakhia-Jajpur-Aradi-Chandabali — make it an NH (alternative route to Dhamara port)
  • Panikoili-Jajpur-Kendrapara-NH5a-Paradeep — make it an NH (alternative to Paradeep port)
• Orissa State Road Transport Company (OSRTC)
• Wide city roads:
  • Four-laning of the Airport-Dhamana Chhaka road in Bhubaneswar: [1]
  • Other Bhubaneswar Road plans: [1], [2]
• Bhubaneswar area road plans:
  • Being pursued: BBSR-Barang-Khuntuni-NH42; alternate route to Bhubaneswar-Cuttack via Barang; Khurda-Cuttack bypass via Pitapalli; Bhubaneswar (Uttara chhack) to Paradeep highway (Uttara chhack map)
  • Should be pursued: Bhubaneswar-Khurda Rd station (already some Puri-Adi trains bypass Bhubaneswar. So Khurda Rd could be an alternative reliever station for Bhubaneswar. Then this road would be very important.); Patia station to Pahala in NH5 (this would be a third alternative to Bhubaneswar-Cuttack especially from the hot area of KIIT, Infocity, etc.)