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 a news item in Tathya.in.

… the Bharati Shipyard Limited (BSL), a major private shipyard and the Apeejay Surendra Group, an industrial conglomerate have joined hands to set up the-State-of-the-art shipbuilding yard and ship repair yard project at Dhamra in Orissa.

The mega shipyard project will entail an investment of Rs.2200 crore in 3 phases.

Employment opportunities in this labor intensive industry will be 41,000 in the third phase, reveals the proposal submitted to the State Government.

… Revealing the strength of the state over others, the promoter said that easy availability of raw material like steel, availability of large number of skilled, unskilled man power and above all the proactive government policies dotted with positive environment for investors are creating conducive atmosphere for a mega shipyard in the state.

The requirement of steel in shipbuilding and repairing has been projected as in the first phase it will be up to 75,000 MT per annum, while in second phase it will go up to 2,30,000 MT.

In the final phase the steel requirement will go up to 4, 50,000 MT said the source.

… The proposed site has been identified near the Dhamra Port, where out of 1500 acres surveyed 1050 acre of land has been provisionally selected for the mega shipyard.

According to implementation schedule the promoters have decided to go for Memorandum of Understanding (MOU) with Government of Orissa in the month of October.

Once MOU in place than other activities will follow, said the source.

Rehabilitation Plan will be taken up in accordance with the present Rehabilitation and Resettlement Policy of the State Government.

… Milestones set up for the project envisages that Master Plan will be ready in the next year and construction of the shipyard will begin in mid of 2008.

The Joint venture promoters feel that the project will complete its first phase construction in early 2009 to begin commercial production by middle of the year.

Following is an excerpt from a Telegraph report.

Sukinda valley in Orissa�s Jajpur is one of the most polluted places in the world, according to a report by the US-based Blacksmith Institute.

The institute provides solutions to pollution-related problems.

From India, Sukinda has ranked fourth and Vapi, a 400km industrial belt in Gujarat, is fifth on the list of 10 most polluted places.

The valley, about 140km from here, is spread across Dhenkanal and Jajpur districts and has the largest chrome ore deposit in the country — 97 per cent of India�s reserves. Mining is done by the opencast method.

According to the report, �12 mines continue to operate without any environmental management plans and over 30 million tonnes of waste rock are spread over the surrounding areas. The mines discharge untreated water into the river. This area is also flood-prone, resulting in further contamination of the waterways.�

The problem is �beyond the means of the state to solve�.

Environmentalists said the report is damning evidence of the impact rampant mining has on Orissa.

… However, chairman of Orissa State Pollution Control Board L.N. Patnaik described the report as �silly�. �I see a lot of personal agenda behind the report. It is a design to stop mining activities. If there is mining, there would be some air pollution. But to say that Sukinda is one of worst polluted places in the world is ridiculous,� he said.

The comment by OSPC Board Chairman Mr. Patnaik is outrageous. He should talk about what steps his organization is taking, if any, to minimize pollution. Instead of saying that he talks about personal agenda. Does that mean OSPC is not taking any steps to reduce pollution?

The orissa.gov.in site has a page on PPP (private-public partnership) which contains the Orissa draft PPP policy and a list of projects in Orissa planned to be funded through PPP. Following are excerpts from a recent report in Telegraph.

The Orissa government is planning to invest Rs 125,000 crore in 36 infrastructure projects to be taken up under the private-public-partnership programme.

…Under the programme, the state government will leverage its financial resources with that of the Centre, to prepare a shelf of projects. These will be taken forward through a transparent selection process. There will also be viability gap funding, if the projects are initially loss-making.

The policy will also create Orissa Infrastructure Development Fund with a corpus of Rs 1,000 crore. Projects that are part of the programme include roads, bridges, ports and harbours, airports, airstrips, inland container depots, industrial parks, special economic zones and townships.

“We have already entered into agreements with IL&FS and PricewaterhouseCoopers, who will be the consultants for these projects. A few more will be empanelled soon,” said Parag Gupta, special secretary of the state secretariat’s public-private-partnership cell. …

Sources said IL&FS was picked as a consultant because of its joint venture with state-run Industrial Infrastructure Development Corporation for the Bhubaneswar Integrated Road Network project. PwC is also a consultant for several road projects. The state has also signed an agreement with the Infrastructure Development Finance Corporation (IDFC) in this regard. IDFC is funding some projects in association with Nabard.

“Two more consultants, including Ernst and Young and another Calcutta-based firm, will be enrolled soon,” the sources said.

The empanelled agencies will help identify projects that need to be taken up, prepare pre-feasibility and detailed project reports. They will then hand the reports over to respective departments.

Some of the projects being taken up are the Capital Region Ring Road, to span 98km, and the Bhubaneswar-Paradip Road, a 90km stretch. Each of the projects will cost around Rs 700 crore. They will be executed by the state public works department.

Other projects include sector-specific infotech SEZs, which will cost around Rs 352 crore and an IT & corporate tower in Bhubaneswar to be set up for Rs 146 crore.

Following are excerpts from a Hindu report. (Thanks to R. P. Tripathy for the pointer.)

Lack of proper road communication is a major hindrance in the path of construction and renovation works being taken up by the Gopalpur Ports Limited (GPL) to transform the existing seasonal port into a mega all weather port.

Speaking to The Hindu, director of the GPL, Mahima Mishra said the existing road that connects NH 5 with the port was too narrow and was not of standard to bear the load of transportation of heavy machines and vehicles needed for th e work of the port. The GPL wants to construct a separate four lane road to connect the NH 5 with the port. But this road project of GPL has been getting delayed as the proposed land is under the Orissa Sands Complex (OSCOM), a unit of the Indian Rare Earths’ Limited (IREL). Mr Mishra said delay in construction of this road could delay the whole port project. He said road transport between the port and the highway can also affect the operation of the seasonal port at Gopalpur from November.

… State Transport Secretary, Priyabrata Patnaik has held discussions with the district administration and GPL authorities regarding the transfer of land to the GPL for its port project. Chatrapur sub-collector Ajit Mishra said efforts were being made for speedy transfer of 269 acres now under the IREL to the GPL. Transfer of these 269 acres would enable the GPL construct its four lane road between NH 5 and the port for proper transportation link.

 

… Tehsildar of Chatrapur Manoj Padhi informed that the IREL had agreed to surrender 269 acres to the State Revenue Department as it has completed mining at the area. About 140 acres of this land was government land and the rest 129 acres was private land acquired by IREL for mining.

After IREL surrenders the land acquisition process would again have to be initiated for the private land so that it could get transferred to GPL as early as possible. In total the GPL needs around 2000 acres for its project.

… The whole project involves an investment of over Rs. 1700 crores. The GPL happens to be a consortium of Orissa Stevedores Ltd. (OSL), Noble Group Ltd. of Hong Kong and Sara International Ltd., which entered into an MOU with the Orissa Government on Sept 14 last year to take over the Gopalpur port to develop it into a major all weather port on BOOST basis.

Following are excerpts from Telegraph’s report on it.

Laying the foundation stone of RSB Group’s auto-component complex at Choudwar, Patnaik said the Industrial Infrastructure Development Corporation Limited would set up the industrial park that would house several auto-component manufacturers at Choudwar area of Cuttack.

The chief minister added his government would soon announce a policy for development of small and medium industries.

RSB group, a leading engineering and components manufacturing company is setting up Rs 360cr multi-product automobile component manufacturing project near Choudwar over 300 acre.

The project, to be set up in phases over five to seven years, would consist of a forging unit, an iron-casting unit, aluminium die-casting unit, machine shop and assembling unit. The casting and forging unit is expected to generate an estimated annual turnover of Rs 1,600cr by the end of fifth year and would generate employment for 2,500 people by that time.

Group chairman R.K. Behera said the project would cater to the requirement of Tata Motors. …
Ramakrishna Forgings, an Indian firm manufacturing auto components has expressed an interest to establish another plant near Chowdwar.Ipicol officials estimate the likely investment in the sector to be more than Rs 2,000 crore. Ipicol is trying to lure more investment into the sector by highlighting the easy availability of good quality pig iron and steel ingots, good quality pure aluminum ingots, steel flat products (plates, sheets HR and CR) and rounds.

Following is from a PIB.

The Government accorded approval for undertaking six laning of 6,500 km of National Highways comprising 5,700 km of Golden Quadrilateral and balance 800 km on other sections, under National Highways Development Project (NHDP) Phase-V.    As per the approved implementation mechanism for NHDP Phase-V, stretches of 100 km or more that have been completed at least two years ago and contractual actions on previous contracts have been completed, are being included in the year-wise programme.   Where the distance between two cities is less than 100 km, such stretches are also being included as exception cases.   Cost per km has been estimated as Rs. 6.34 crore. 

            List of proposed stretches of National Highways in different states under NHDP Phase-V is given below:

SIX LANING OF NATIONAL HIGHWAYS

  Feasibility report for seven stretches have been completed by the technical consultants and detailed is given below: 

STATUS OF FEASIBILITY REPORT FOR SEVEN STRETCHES UNDER NHDP PHASE-V.

 Total 203 firms have applied for pre-qualification for eight stretches under NHDP Phase-V.

            NHDP Phase-V is scheduled for completion by December, 2012.   Estimated civil construction cost for Gurgaon-Kotputli-Jaipur of 225 km is Rs. 1517 crores.  The likely time period for completion is 30 months from the appointed date.

This information was given  by the Minister of State for Shipping, Road Transport and Highways, Shri K.H. Muniyappa in a written reply in the Rajya Sabha today.

(1) ECOR GM Shri Surendra Singh Khurana in his Independence Day address (available at http://eastcoastrailway.gov.in/custom/press_release/index.php) while talking about ECOR, said:

 “With only 4% of the track of Indian Railways, we cater for about 12% of total loading of Indian railway and about 7% of total earning of IR.”

(2) From http://finance.groups.yahoo.com/group/irfca/messages

For the 2003-2004 and 2004-05 the working expense as part of gross earnings of the ECOR zone is the second best at 66.64% and 61.75% respectively.

• The profit making zones in those years were
  • South east central (62.8% and 56.1%),
  • ECOR (66.64% and 61.75%),
  • North central (76.33% and 66.71%),
  • Central (80.29% and 82.48%),
  • South eastern (81.24% and 83.51%),
  • South Central (85.72% and 83.62%),
  • West Central (80.99% and 84.08%),
  • South Western (91.35% and 86.15%),
  • Western (93.21% and 90.85%),
  • Northern (91.08% and 92.89%) and
  • East Central (93.65% and 98.9%).

• The loss making zones were:
  • metro Kolkata (247% and 264.38%),
  • North Eastern (151.93% and 160.88%),
  • Northeast Frontier (147.98% and 159.45%),
  • Eastern (161.3% and 152.84%),
  • Southern (118.55% and 120.79%) and
  • North Western ( 106.26% and 104.98%).

(3) Based on (1) and (2) above ECOR probably makes about 10% of Indian Railways profit.

Why does not ECOR have the track length commensurate with the earnings it makes?

Why are no serious efforts being made to correct this; especially with many planned lines being given only minimal annual budgets which in many cases are less than the annual inflation.

In terms of rail density: the average rail density (2004-05) for India is 19.13; the rail density is highest in Delhi (138.2) followed by West Bengal (43.4), Punjab (41.6), Haryana (36.1), Bihar (35.9), Uttar Pradesh (35.8), etc. while Chhatisgarh (8.6) and Orissa (14.6) are among the states with low rail densities.

(6) The data from (1-3) and (5) show that while Indian Railways is making a lot of revenue and profit from ECOR (big part of which is in Orissa) and also SER (part of which is in Orissa), both ECOR and Orissa have been grossly neglected. This is true about the past; what about the future?

Mr V. N. Mathur, Member (Traffic) of the Railway Board is reported to have said:

“We’ve submitted to the Planning Commission a Rs 251,000-crore proposal for implementation by the end of the Eleventh Plan. We’ve indicated mobilisation of Rs 90,000 crore from within and 29 per cent of the projected estimate by way of market borrowing. For the balance, we may have to approach the government for support. But then nothing has yet been finalised.”

 (8) Many expensive and highflying plans by Indian Railways for the 11^th plan, but most bypass Orissa and ECOR.

(8A) Freight Corridor: Various news reports suggest that the 11^th plan (next 5-7 years) will take up the western and eastern corridors.

http://www.indianexpress.com/story/9030.html

Western Corridor: 1,483-km Delhi-Mumbai route

http://www.hindu.com/2006/09/17/stories/2006091708640400.htm reports that the “Chennai-Kolkata and Chennai-Mumbai corridors will be included in the second phase of the Dedicated Freight Corridor Project.” 

(8B) High Speed Corridors:

“Delhi-Chandigarh-Amritsar, Mumbai-Baroda-Ahmedabad, Chennai-Bangalore-Coimbatore and Howrah-Asansol-Patna — were announced in the current rail budget.”

(8C) Metro Rails and rapid transit systems: From http://en.wikipedia.org/wiki/Transportation_in_India#Metro   and

http://en.wikipedia.org/wiki/Bangalore_Metro

The following are the existing or under construction/expansion metro rail projects.

• Delhi Metro
• Hyderabad Metro
• Kolkata Metro
• Kolkata Suburban Railway
• Lucknow MEMU 
• Chennai Metro
• Mumbai Suburban Railway
• Bangalore Metro
• Mumbai Metro •
• Thane Metro
• In planning:
  • Ahmedabad Metro
  • Kochi Metro
  • Goa
  • Pune

(9) In essence revenue and profit generated in ECOR is being ploughed into other parts of India, which by itself is not wrong as Orissa is a part of India, but lets analyze who are the losers: the adivasi and backward areas of Orissa (and hence of India) who are backward partly because lack of proper connectivity, and this neglect continues to keep them backward and prevents them from catching up.

No, here are the data and following it is what planning commission teams have themselves said.

(10) The tribal population percentage of the KBK districts are as follows:
Malkangiri 58.36% (+19.96% SC), Rayagada 56.04% (+14.28% SC), Nabarangpur 55.27% (+15.09% SC), Koraput 50.67% (+13.41% SC), Nuapada 35.95% (+13.09% SC), Kalahandi 28.88% (+17.01% SC), Sonepur 22.11% (+9.5% SC), Balangir 22.06% (+15.39% SC). Two adjacent districts also have high tribal population. They are Kandhamala 51.51% (+18.21% SC) and Gajapati 47.88% (+8.77% SC).  Tirbal percentage of Mayurbhanj is 57.87% and Sundergarh is 50.74%.

(11) The literacy rates in the KBK districts are abysmally low. Malkangiri 31.26%, Nabarangpur 34.26%, Rayagada 35.61%, Koraput 36.2%, Nuapada 42.29%, Kalahandi 46.2%, Balangir 54.93%, Sonepur 64.07%. Two adjacent districts also have low literacy: Gajapati 41.73% and Kandhamala 52.95%. The state average is 63.1%.

(12) Population below the poverty line in southern Orissa (of which KBK is a part) is reported to be 89.17% of the people according to the 1999-2000 NSS data and 72% of the families according to the 1997 census.

(13) From http://www.mainstreamweekly.net/article174.html

Table 1 provides State level data on poverty ratios during 2004-05. The lowest poverty ratio was 5.4 per cent for Jammu and Kashmir and highest poverty ratio was for Orissa (46.4 per cent). States with poverty ratio of less than 15 per cent were Jammu & Kashmir, Punjab, Haryana, Himachal Pradesh, Delhi and Andhra Pradesh. As against them, States with poverty ratio above 30 per cent were Maharashtra, Uttar Pradesh, Bihar, Jharkhand, Madhya Pradesh, Chattisgarh, Uttarakhand and Orissa.

Five States, namely, Uttar Pradesh, Maharashtra, Bihar, West Bengal and Orissa accounted for 166 million poor (about 55 per cent of the total poor estimated at 302 million). This shows the high concentration of poor in these five States.

(14) Planning Commission: The Planning Commission in its report comparing the development status of economic infrastructure of Orissa, especially the KBK region, vis-à-vis the country says:

"Railways have always played an important role in economic development and rapid social transformation in all parts of the globe. It is one of the key economic infrastructures. However, it is most unfortunate that in a poor and backward state like Orissa, development of rail networks has received much less attention of the Central Government in the post-independence period. There are as many as seven districts like Boudh, Kandhamal, Deogarh, Nayagarh, Kendrapara, Malkangiri and Nabarangpur out of the 30 districts of the state, which do not have any railway line passing through them. In the year 1998-99, the density of railway route length per 1000 sq. km of area in Orissa was only 15.03 km as against 42.66 km in West Bengal and 19.11 km. at all-India level”.

 (15) What we are asking with respect to KBK and adivasi areas of Orissa?

We are asking the current PM and the current planning commission to pay attention to what the planning commission report says in (15) and the data in (11)-(14).

In particular, we would like the following lines to be completed during the 11^th plan.

1)     Khurda – Balangir (This brings Railways to districts of Boudha, Sonepur and Nayagarh and bring Balangir – a part of KBK- closer to the state capital. This line of 290 km, initially budgeted at 700 crores, has all the necessary studies done, and its survey was complete before May 2004. It should be targeted to be completed within the next 2-3 years.)

2)     Gunupur-Theruvali (The Orissa govt. is ready to use PPP for this. This should also be done in 2-3 years together with the broad gauge conversion of Naupada-Gunupur line)

Lanjigarh Rd – Bhawanipatna – Junagarh – Nabarangpur- Jeypore – Malkangiri – Bhadrachalam Rd in Andhra Pradesh. (The first phase of this Lanjigarh Rd – Junagarh is 56 km with an estimated cost of 120 crores. 15% of it was completed before May 2004. This should be completed immediately within 1-2 years. This line lies completely within the KBK districts and when finished will bring Railways to the districts of Nabarangpur and Malkangiri. Moreover, the Malkangiri-Bhadrachalam Rd part could go through a bit of Chhatisgrah. This line will create a shorter and alternative Ranchi-Hyderabad route and bring connectivity to an area that is currently havited by many extremist groups. Not much has been done beyond Junagarh, so this must be immediately approved and work started so that the line gets completed by the end of the 11^th plan.)

Talcher – Bimlagarh (This is 154 km long and was estimated at Rs 727 crore. This will bring the tribal district of Sundergarh much closer to Orissa, connect a dangling line, and will bring passenger rail to big parts of Sundergarh. This should be completed in 3-4 years.)

(These lines connect dangling lines and will bring passenger rail to big parts of the tribal district of Mayurbhanj. Not much has been done, so this must be immediately approved and work started so that the line gets completed by the end of the 11^th plan.)

Badampahar-Keonjhar (This line also  connecst dangling lines and will bring passenger rail to big parts of the tribal district of Mayurbhanj. Not much has been done, so this must be immediately approved and work started so that the line gets completed by the end of the 11^th plan.)

1. Parlakhemundi, the district headquarter of Gajapati (part of KBK+) will be on Broad gauge rail and will be 305 kms from Bhubaneswar (the state capital).
2. Sonepur, the district HQ of Sonepur district will be on connected by rail and will be 259 kms from Bhubaneswar (the state capital).
3. Boudh, the district HQ of Boudha district will be connected by Rail and will be 217 kms from Bhubaneswar (the state capital).
4. Nayagarha, the district HQ of Nayagarha district will be connected by Rail and will be 84 kms from Bhubaneswar (the state capital).
5. Bhawanipatna, the district HQ of Kalahandi district (part of KBK) will be connected by Rail and will be 450 kms from Bhubaneswar via Balangir and 504 kms from Bhubaneswar (the state capital) via Gunupur.
6. Malkangiri, the district HQ of Malkangiri district (part of KBK) will  be connected by Rail.
7. Nabrangpur, the district HQ of Nabrangpur district (part of KBK) will be connected by Rail.
8. Balangir, the district HQ of Balangir district will now be 309 kms from Bhubaneswar instead of the earlier 397 kms.
9. Nawapara Rd, near the district HQ of Nawapara district will now be 459 kms from Bhubaneswar instead of the earlier 547 kms.
10. Rayagada, the district HQ of Rayagada district will now be 419 kms from Bhubaneswar instead of the earlier 502 kms.
11. Koraput, the district HQ of Koraput district will now be 573 kms from Bhubaneswar instead of the earlier 676 kms.
12. Titlagarh, a major junction will now be 373 kms from Bhubaneswar instead of the earlier 461 kms.
13. There will be an alternate shorter path from Ranchi to Hyderabad via Titlagarh-Bhawanipatna-Nabrangpur-Jeypore-Malkangiri-Bhadrachalam Rd

(17) Is the Indian railway under the UPA government neglecting Orissa than the previous government?

(18) In the 2004 railway budget given at http://pib.nic.in/release/release.asp?relid=869 (items 35,37) the then Railway Minister Nitish Kumar had proposed the Remote Area Rail Sampark Yojana which aimed to complete lines like Khurda-Balangir within the next 5 years. This has been completely sidelined by the UPA government. This is what he said.

(18 A) Following is the exact wording, in items 35 and 37 of the 2004 Railway budget.

    * 35. Railways have a large shelf of over 230 projects worth about Rs. 43,000 cr, for construction of New Lines, Gauge Conversion, Doubling, Electrification and Metropolitan Transport Projects. Even with the enhanced budgetary support, non-budgetary initiatives under National Rail Vikas Yojana and other cost sharing mechanisms apart from Defence funding of some projects of strategic importance, there will still be projects valuing Rs. 20,000 cr which would remain unfinished even after the next five years. A large number of these have been sanctioned on socio economic considerations with the intention of connecting remote and backward areas with the rail network. However their progress is very slow on account of inadequate funding, which causes dissatisfaction. Connecting these areas with the rail network will facilitate the economic and social development of these areas and will provide major employment opportunities during construction and thereafter. Keeping these factors in mind, it has been decided to speed up the execution and completion of these projects also in the next five years. I am happy to inform the House that this would be done through an ambitious ‘Remote Area Rail Sampark Yojana’, with an additional outlay of Rs. 20,000 crore.
    *

    * 37. This decision to accelerate the completion of all projects in five years is expected, on a broad estimate, to provide yearly employment to about 3 lakh persons during the construction period. Once opened for traffic, these lines would also require about 18000 persons per year for normal maintenance and operations, on incremental basis. Apart from this, it is expected that there will be scope for indirect employment of nearly 55000 persons per year. The ‘Remote Area Rail Sampark Yojana’ will go a long way in changing the economic and social scenario of the remote and backward regions of the country and bringing the people of these areas into the mainstream. Further, the demand for steel, cement, rolling stock, fittings, components, plant and machinery will also be generated, boosting the economic growth of the entire country.

(18 B) World Bank:

http://info.worldbank.org/etools/docs/library/240060/India%20%20financing%20infrastructure%20-%20addressing%20constraints%20and%20challenges.pdf
June 2006 report (page 70 above Table A8)

The second project envisaged by the railways was announced in the interim Budget of 2004- 05 and is called Remote Area Rail Sampark Yojana (RARSY). This involves executing and completing hitherto sanctioned projects related to connecting remote and backward areas with the rail network till 2010. The total investments in these projects is valued at Rs.200 billion. Presumably this is to be entirely funded by budget
support.

(18 C)   http://164.100.24.208/ls/CommitteeR/Railways/16th-Report.pdf
Railway Standing Committee Report 2005-06

Page 19:

3.11 In response to the concern of the Committee as to why the completion targets of the projects are not being fixed, the Chairman, Railway Board stated as under:-

"most of these projects will not be completed in the next few years. In fact, the projects where target has not been given is because normally we give targets for projects which are going to be over in the next two to three years.  But where it is going to be a distant period and where we do not know as to how much funds would be allocated for these projects, we do not give targets for those projects. So, wherever targets are given these are the projects which will take more than two to three years to get completed depending on how much funds are given. On our part, we have tried to revive the CapitalFund to see that we can put in more money.

3.12 In the absence of adequate internal generation of revenues by the Railways,
the following projects has been declared by the Government as the national Projects in the National interest. The funding for these projects are ensured by the Central Exchequer in the form of additional Budgetary Support to the Railways.

(18 D) Summing up this point:

In summary, based on earlier planning commission report as excerpted in (14) the 2004 Rail budget had the scheme RARSY which would have completed KBK connectivity lines like Khurda-Blangir. But the UPA government has buried that plan and has talked about burdening the state government for these lines, which since they can not afford, basically means abandoning these lines. This approach needs to be reversed and while India and Indian Railway marches ahead it must not forget the backward and adivasi areas of India and Orissa; especially when it makes money from transporting freight (minerals) from these areas.

(19.5) While the above are finished during the 11^th plan, we will patiently wait for the 12^th plan

• for the 2^nd phase of freight corridor involving Howrah-Chennai that will pass through Orissa;
• for high speed rail between Howrah-Bhubaneswar-Visakhapatnam, Visakhapatnam-Hyderabad, and Visakhapatnam-Chennai;
• for a metro rail for greater Bhubaneswar; and
• additional lines such as Jaleshwar-Digha, Berhampur-Phulbani, Bargarh-Nawapara Road and Talcher-Berhampur.

Following is from a PIB release.

Six laning of 6,500 km of National Highways comprising 5,700 km of Golden      Quadrilateral and 800 km of other sections on Build, Operate and Transfer (BOT) basis following, Design, Build, Finance and Operate (DBFO) pattern has been approved at an estimated cost of Rs.41, 210 crore under National Highways Development Project (NHDP) Phase-V, scheduled for completion by December 2012. List of sections of National Highways in different states is given below:

SIX LANING OF NATIONAL HIGHWAYS

Following are excerpts from a Telegraph report.

Chambal Infrastructure Ventures Limited — of the KK Birla group — today expressed interest in setting up a 2,000MW thermal power plant at an estimated cost of Rs 9,000 crore.

H.S. Bawa, the managing director of Zuari Industries and senior vice-president of Chambal Fertiliser and Chemicals Limited, made a presentation before chief minister Naveen Patnaik this evening regarding the matter. Bawa expressed the multinational’s interest in the project.

In fact, the firm has already applied for 2,000 acre near Siaria in Dhenkanal.

… It had also offered to set up a thermal power plant in a joint venture with PSUs.

The proposal’s appraisal would be made by the state-run Industrial Promotion and Investment Limited, which is a nodal agency for industrial projects.

In turn the agency examines projects before they are referred to a single window clearance committee, which is headed by the chief minister himself.

Meanwhile, the company has applied to the coal ministry for blocks. It has also applied to the water resources department to seek permission to use river water for plants.

If the proposal is cleared by the government, Chambal Infrastructure Venture Limited will be the 14th company to sign an MoU with Orissa government to set up a thermal power plant in Orissa.

Already 13 power companies have signed MoUs for setting up plants with a total capacity of 16,000MW and for am investment of Rs 70,000 crore.

Many have already acquired land and obtained environment clearance, as well as, permission for industrial water use.

Two to three firms have also been allotted coal blocks, Patro added.

Construction of power plants proposed to be set up by Vedanta Power Limited has already started in Jharsuguda.

The following article from Samaja explains why people in Orissa (and India) do not believe companies’ promises. If what the article says is true it is shameful on the part of Tatas to behave that way.

Some of the earlier news reports on national waterways in Orissa are linked from this site. Following is the latest development, as reported in an Indian Express article. Excerpts:

The Parliamentary Standing Committee has shown the green signal to two new national waterways in West Bengal-Orissa and Andhra Pradesh-Tamil Nadu even as it called for an integrated transport policy and an institutional framework for inland water transport. … The other waterway—Talcher-Dhamra stretch of the Brahmni-Kharsua-Dhamra Rivers, Goenkhali-Charbatia stretch of the East Coast canal, Charbatia-Dhamra stretch of Matai River and Mahandai delta rivers between Mangalgadi and Paradip is also up for the national waterway status. Around 18.07 million tonnes of inland water transport traffic is expected to be carried out on the proposed waterway after its full development in eight years time. The traffic is expected to be handled at four terminals—Talcher, Nasirabd, Balasore and Rajnagar and the major cargoes are coal, fertiliser, cement, iron ore, agricultural and industrial products. The Standing Committee, however, has recommended the Government to prepare the road map for an integrated transport policy to include inland water transport, coastal shipping, civil aviation, road transport & highways for enabling better inter-connectivity amongst multiple modes of transport. The Committee has also called for provision of an institutional framework for development of IWT sector so as to increase capacity of IWT agencies, increased cost recovery and commercialisation of IWT industries. In case of the West Bengal-Orissa waterway, the Committee has suggested that another terminal be developed at Geonkhali in West Bengal to enable better traffic handling. It was also noted by the panel that there’s need to develop an action plan to address the growing demand of repair and service facilities of IWT vessels.

The final step for the bill would be to getting approval in both houses of the parliament.

Following up on the standing committee’s recommendation it may be appropriate to establish an airport near Jenapur-Kabatabandha as the ECOR Howrah-Chennai Railway line and NH 200 (Chandikhol-Sukinda-Talcher) intersects the national waterway at that point; NH 5A (Chandikhol-Paradip), NH 5 (Panikoili-Chandikhol) and NH 215 (Panikoili-Keonjhar) are close by; Haridaspur – Paradeep railway line will start very near to that point; Jakhapura-Banspani line also starts close to that point and that airport will serve the greater Kalinga Nagar area where multiple steel plants and other plants are coming up. Going further on that, the Orissa government is supposed to have made a master plan for Kalinga nagar. Following is an excerpt from a year old report (May 28, 2006) in Steelguru on that. (See also this New Indian Express report)

Orissa government has decided to prepare a master plan for Kalinga Nagar in Jajpur district. South Africa based Lea Associates will prepare the master plan in collaboration with School of Planning and Architect, New Delhi and the Centre for Environment and Planning. The master plan will be completed by July. Kalinga Nagar Industrial Area will be developed for a population of over 10 lakh keeping an eye on 2025 and will be extended to 177 square kilometers. As per the draft, the KNIA will be extended to 134 villages. So far 112 villages have been included in the industrial area. About 1 million hectare land will be acquired by the Government in a phased manner for the development of the area. According to the draft plan, 68 square kilometer out of the total area will be reserved for town planning. About 89 square kilometer will be earmarked for industrial units while 20 square kilometer will be reserved for development of different infrastructure including bus stand, hotels, schools and hospital. Decision has also been taken to set up Kalinga Nagar Development Authority.

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.

The plan for this was mentioned earlier. Following are excerpts from an Economic Times report.

Visa Steel on Friday inked a joint venture agreement with China’s Baosteel Trading and VISA Comtrade of Switzerland for setting up a 1 lakh tonne-per-annum ferro chrome plant in Orissa at a capital outlay of Rs 260 crore.

The JV company, VISA BAO, will be a subsidiary of VISA Steel which will hold a 51% stake. Baosteel Trading and VISA Comtrade will hold 35% and 14% stakes, respectively.  …

Following are excerpts from an Economics Times report.

…  he RSB Group already has a technology agreement with Gunther Albert GmbH of Germany for trailer designs and a strategic alliance with Germany-based BPW Axle for axle technology with anti-breaking system, disc brake, etc.

RSB Transmission would invest Rs 430 crore in the next four years to set up a major auto component manufacturing plant near Cuttack in Orissa, Behra said adding Orissa Chief Ministger Navin Patnaik would lay the foundation stone of the casting and forging plant on August 30.

“Orissa government has assured us to provide 270 acres of land while we have acquired 90 acres land,” he said.

The project will use water from the Ib river. Following is Samaja’s article on this.

Following is Samaja’s report on this plan and what Orissa is asking in return.