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Following are excerpts from an article in Pioneer written by Susim C Sahani.

Susim C Sahani | Sundargarh

Despite decade-old debates and agitations, the most sought-after Bimlagarh-Talcher rail link is still a distant dream for this tribal-dominated district. However, if the railway project sees the light of the day, it can help reduce the distance between Bhubaneswar and Rourkela from 180 km to 150 km besides providing the most viable transport links to the potential mines zone in the district to the port in Paradip.

The rail-link project has been eluding the locals here since 1955. With the inception of Rourkela Steel Plant, a 75-km-long rail route was set up linking Rourkela to Barsuan for the iron ore mines in Bonaigarh sub-division. The tribals, inhabiting the villages all along this rail route, have been deprived of passenger train facilities although the iron-loaded goods trains have stoppages at stations like Roxy and Bimlagarh. In what seems to be an imitation of a common sight in Bihar and Jharkhand, the tribals here too board the iron-ore loaded wagons of the freight trains. If the goods train tragedy a year-and-half ago that killed over 20 persons on this route, including an eight-year-old tribal boy, is any indication, then tribals travelling this way is likely to cause more fatal accidents in the coming days.

Sources said the Hindustan Steel Limited (HSL), now rechristened as Steel Authority of India (SAIL), in collaboration with Germany, had conducted an aerial survey for the Rourkela Steel Plant and the German experts then had strongly recommended the Bimlagarh-Talcher rail-link project, linking Rourkela with Paradip Port via Talcher. The rail-route was also expected to make mineral transportation more economical by direct rail links to the key mining zones of the State with Paradip Port and to the mines of Ranchi and Bokaro.

Unfortunately, due to the feeble leadership in Orissa, former Prime Minister Jawaharlal Nehru could not be convinced about the utility of such a promising project. …

Following is an excerpt from a Pragativadi report.

The state government has decided to set up seven seeds centre in the state to enable the farmers to avail quality seeds without further delay.

According to official sources, the centres would come up at Ganjam, Angul, Sundargarh, Kalahandi, Balasore Jajpur and Bhubaneswar.

With this, the total seed centres in the state would go up to nine with two such centres that have been already set up at Rayagada and Bargarh.

The two centres provide certificates on the certified seeds to the farmers.
Apart from this, another centre functioning at Bhubaneswar has been entrusted with checking the quality of seeds.

The state government has also decided to impart training to the farmers about the use of modern cultivation for which it is now contemplating on roping in the National Farmer Extension Management Organisations.

The following ad in Samaja gives highlights of two recently launched schemes in agriculture:

• National Food Security Mission (NFSM)
  • The 15 districts in Orissa covered under the NFSM-Rice scheme (as given in page 40 of the above document) are Angul, Balangir, Boudha, Deogarh, Dhenkanal, Jajpur, Jharsuguda, Kalahandi, Keonjhar, Malkangiri, Nawapara, Nawarangpur, Nayagarh, Phulbani, and Sundargarh.
  • The 10 districts in Orissa covered under the NFSM-Pulse scheme (as given in page 43 of the above document) are Balangir, Baragarh, Cuttack, Ganjam, Kalahandi, Keonjhar, Khurda, Nayagarh, Puri, Rayagada.
• Rashtriya Krishi Vikash Yojana (RKVY)

Follow are excerpts from a Statesman report.

The high powered committee headed by chief secretary Mr Ajit Tripathy today cleared 16 investment proposals, entailing an investment of approximately Rs 30,000 crore.

The projects mainly in the power, steel, aluminium and cement sectors were amongst the 40 project proposals placed before the committee. There were three steel and three power projects amongst the 16 which got the nod today.

Significantly while the Ashapura mines chemicals project proposal for a aluminium refinery was approved, the aluminium project of IMFA Group headed by Dr Bansidhar Panda was held up.

… two task forces had been constituted to further evaluate the proposals in the cement and power sectors. The Industry secretary will head the task force for cement sector projects while the development commissioner will be in charge of the task force for power projects, …

The power projects cleared by the committee today included the Bhusan Energy project which intends to establish a 2,000 MW thermal power plant at Angul with an investment of Rs 8,483 crore. The Visa Power Limited’s 1,000 mw Thermal Power plant at Brhamnabasta in Cuttack district at a cost of Rs 3,698 crore was also cleared while the third power project was of Monnet Energy at Sundergarh. It will be a 1,000 mw plant.

The Rs 4,232 crore aluminium project of Ashpura Mines Chemicals to come up in Koraput district was cleared. It aims at setting up a 5 lakh ton refinery and a 1.5 lakh ton smelter plant besides having a 300 MW captive power plant .

The Committee approved the three new steel plant projects and the expansion of existing five steel projects in the state.

Bonei Industry company’s project to set up a plant at Sundergarh at a cost of Rs 302 crore, M/s Rungta Sons Ltd’s proposal to set up a steel plant at Barmunda at a cost of Rs 930 crore and Free Grade company Ltd’s steel plant at Dhenkanal at a cost of Rs 603 crore were also cleared.

Expansion proposals of SMC Power Generation and MSP Mettalics at Jharsuguda, Braja Ispat, Rourkela and the Keonjhar Orient Ispat were given the go ahead by the committee.

ACC Cement’s proposal for investment of Rs 400 crore for its capacity development was approved while Goa Carbons Ltd’s proposal for a CPC coke plant with an investment of Rs 225 crore was also cleared.

Following is from a PIB.

The Minister of State for Coal Dr. Dasari Narayana Rao informed the Lok Sabha in a written reply today that the exploration activity has established additional resources during Xth Plan period in several coalfields including Orissa and West Bengal. Giving details, he said during the period January, 2006 to March, 2007, 4080 million tonnes of new coal resources have been estimated in the country. As a result the inventory of Geological Resources of Coal in India, prepared by Geological Survey of India (GSI) has increased by 4080 mt as indicated below:

Dr. Rao further informed that out of the total addition of coal resources mentioned above 520 million tonnes have been estimated in the state of West Bengal and 1234 million tonnes in the state of Orissa.

The state-wise and coalfield-wise details of estimation of additional coal resources in blocks where exploration has been concluded during the period from January, 2006 to March, 2007 are given as under:-

The Minister added that based on the potential of the blocks revealed from regional exploration data the detailed exploration is under process in different blocks/areas.

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 is Odisha.com’s report on this.

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

Following is an excerpt from Deepika Global’s report on this.

(UNI) The National Aluminium Company Ltd (NALCO), …, has achieved a net profit of Rs 446.66 crore for the first quarter ended June 2007.

According to the unaudited financial results for the 3-month period of the financial year 2007-08 taken on record in the Board of Directors meeting held in New Delhi today, the company achieved a net profit of Rs 446.66 crore, with a sales turnover of Rs.1287.12 crore.

However, during the first quarter of previous fiscal, the figures were up at Rs 622.30 crore and Rs 1620.82 crore respectively.

The company also achieved higher alumina production of 3,87,800 tonne compared to 3,58,100 tonne in the first quarter of the previous year.

Business Standard reports on this. Following are some excerpts.

The central government has offered Orissa Rs 10,000 crore for various power sector initiatives. The amount will be invested over a period of five years in rural, semi-urban and urban areas.

“The funds will be utilised for improving generation, distribution and transmission of power in Orissa,” A K Lakhina, chairman and managing director, Rural Electrification Corporation (REC), said.

Orissa has been facing difficulties in privatisation of the sector as private enterprises are unable to pursue rural electrification with vigour, he said.

He said, the Centre has utilised the services of National Thermal Power Corporation (NTPC), Power Grid Corporation of India (PGCIL) and National Hydro Power Corporation (NHPC) for taking up rural electrification in Orissa.

While four projects have already been sanctioned for Nayagarh, Anugul ,Ganjam and Gajapati, projects in three more districts have received the Centre’s in principle approval. All the remaining districts of the state will be covered under the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), he said.

There was a feeling that villages and hamlets with sub-300 populations would not be covered under RGGVY. Orissa, having many such hamlets, was apprehensive of the success of the programme in the state. Lakhina said, the Union government is aware of the issue and the limit may be reduced to cover villages and hamlets with population of 100.

It may be noted, the Orissa government had announced launching of ‘Biju Gramjyoti Yojana’ to provide electricity to the villages and rural hamlets having less than 300 population. It also made a budget allocation of Rs.50 crore during 2007-08 for this programme.

Interestingly, the Orissa government has sought assistance of about Rs. 600 crore from REC for improving transmission. REC will examine the proposal, Lakhina said.

On reducing the transmission and distribution losses, the REC chairman said he has requested Patnaik to undertake underground wiring in the state’s premier cities which could be expanded to other areas.

Myiris reports on this. Following is an excerpt.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

New Indian Express reports on the energy minister’s statement on this in the assembly. Following are some excerpts.

Energy Minister Surya Narayan Patro … announced in the Assembly the Government’s commitment to provide electricity to all villages and hamlets in the State by the end of Eleventh Five Year Plan.

The State Government would formulate a captive power policy (CPP) for the captive power plants, he said. … the Minister said rural electrification is being carried out by the State Government under three schemes – Minimum Needs Programme (MNP), Pradhan Mantri Gramodaya Yojana (PMGY) and Rajiv Gandhi Gramin Vidyutkaran Yojana (RGGVY).

Stating that the Government has submitted the detailed project reports (DPRs) to the Rural Electrification Corporation (REC) for 30 districts, the Minister said the DPRs of Angul, Nayagarh, Ganjam, Gajapati and Jajpur districts have been approved. Besides, the DPRs of three more districts – Balasore, Bhadrak and Puri – have received in-principle approval.

The Minister said the Centre has released Rs 92.85 crore in the first phase to the NTPC and NHPC to take up rural electrification work in Angul, Nayagarh and Ganjam districts.

Referring to the Biju Gramjyoti Yojana (BGY) announced by Chief Minister Naveen Patnaik recently, the Patro said under the programme hamlets with less than 300 population will be electrified. He said the Centre rejected the State Government’s request to include hamlets with less than 300 population in the RGGVY.

The State Government has set a target to provide Rs 1000 crore for the programme in the Eleventh Five Year Plan and provided Rs 50 crore in the 2007-08 financial year. Besides, the State Government has also made a provision of Rs 120 crore under the Biju KBK Yojana for providing electricity, road and drinking water to villages.

The Minister informed the House that the Government has undertaken electrification of 4,499 villages under the MNP for which the Centre has provided Rs 120 crore so far. He said by May-end, 3,736 villages have been electrified under the programme.

Stating that five special police stations have been set up to check theft of power and related crimes, the Minister said special courts have been opened to try these cases.

Patro announced that police stations and courts would be set up in the rest of the districts during the year.

Following is Samaja’s coverage on this.

Following is a roundup on HRD related postings at orissawatch.org.

• Foundation For Excellence (FFE) gave 264 scholarships to students from Orissa
• Orissa engineering colleges in Outlook India ranking
• NISER deadline for submitting application form is extended till June 15 2007
• Chennai B-school in Bhubaneswar and Plan for Insurance University in BBSR
• Specialized government management institutions of Orissa
• Branch changes allowed after first year at NIT Rourkela
• Status of private Medical Colleges in the State
• M.Tech and M.Arch programs in Orissa
• KIIT has approval for 100 Medical (MBBS) and 100 Dentistry (BDS) seats.
• Institutions with Nontraditional programs – a dated list
• Biju Patnaik Film and TV institute advertises for admission into its programs
• Apparently Orissa students are doing well in medical entrance exams
• Tathya: Please no politics over IIT
• Pursuing M. Ed in Orissa
• Ranking of Engineering Colleges in Orissa based on student preferences
• Nursing Schools catch on in Orissa
• TCS recruits 1100 students from Orissa engineering colleges

Business Standard in an article in April listed several infrastructure related projects that Orissa is planning using PPP. Following are excerpts from that article.

… the Orissa government has lined up 18 new projects in the Public Private Partnership (PPP) mode entailing an investment of over Rs 6000 crore.

Of the 18 projects, 12, mostly large and medium, have already been consolidated with investments of Rs 3500 crore.

Another six projects, fairly bigger in respect to the previous ones, are under active consideration and would cover an investment of around Rs 2500 crore, according to government sources.

Source said, till date, an around Rs 5300 crore investments have already been lined up and are under implementation in the PPP module in 12 odd projects across the state.

In all the Orissa government plans to develop 30 odd projects in different sectors in the PPP module over the next two years covering an investment of over Rs 11,300 crore. …

The PPP modules currently under implementation and those under consideration cover a wide range of activities starting from port cuilding, railway line construction, road development and erection of urban clusters. …

The new projects being considered under the PPP module included development of road links in the Capital Region Ring Road, the Bhubaneswar-Paradip Road, the Suakati-Dubuna Road and the Tensa-Barsuan-Lahunipada Road.

These would entail a primary investment of Rs 1547 crore for the development of 279 kilometres of road, including a four-laning of the first one.

Other than this there would World Bank identified projects where four laning would be done of the Sambalpur-Rourkela road from the existing two-lane road.

The long pending Joda-Bamebari Road and Koira-Rajamunda Road covering 229 kilometres would also be taken up.

The PPP module would be used for two vital rail links. The first was the Angul-Duburi-Sukinda rail link and the second the Gunupur-Theruvali link. In both cases, the Special Purpose Vehicle ( SPV) route was being proposed. The investment for the rail links was estimated to be in the region of Rs 570 crore. The Angul-Sukinda rail link would be of 90 kilometres and the Gunupur-Theruvali link would be 79 kilometres.

PPP’s for setting up Bio-tech parks, SEZ for IT/ITES companies and integrated commercial and residential complex, an enclave at Shahidnagar are were also part of the city building endeavour of the Orissa government.

This apart, a commercial shopping complex and an A.C.Market complex at Unit IV are also being contemplated in the PPP mode as part of city development plan.

Till date, investment for the SEZ for IT/ITES companies had been identified and were estimated to be in the region of Rs 35.67 crore. As for the other residential and commercial complexes, project details and cost were being worked out on a war footing.

Coupled with these, a multi-product SEZ at Paradeep had been suggested by the government for development using the PPP route. It was expected to entail an investment of Rs 712 crore.

Land of around 1093 hectares would be needed for the SEZ in the Marshagahi Tehsil of Kendrapara under Paradeep.

This article is probably based on a presentation available from the Orissa govt. website. That file seems to be corrupt but its google cache shows part of the information.

Anubhuti Bishnoi in Indian Express reports on the progress towards making a 2-lane Ranchi-Vijaywada highway zig-zagging through 1219 kms of Orissa and passing though most of its tribal districts, many of which are naxalite infested. The article has a nice map showing which towns the road will pass through in Orissa. Following are some excerpts from that article. (Thanks to Manoj Sahu in Africa for mentioning this article in Agami Orissa.)

At a recent meeting chaired by Prime Minister Manmohan Singh, the Ministry of Shipping, Road Transport and Highways was asked to expedite finalisation of the Detailed Project Report (DPR) for the Vijayawada-Ranchi corridor cutting through Orissa, and take it up on a priority basis. … Around 1,219 km of the 1,729-km corridor planned between Vijayawada and Ranchi will fall in Orissa, and the state government had requested that its state highways, district and rural roads be incorporated in the corridor. Now 235.8 km of national highway sections, 878 km of state high ways and 104.5 km of rural roads will be a part of the corridor. The road from Vijayawada enters Orissa at Motu in Malkangiri district and leaves at Tiring in Mayurbhanj district on the north. … While the Ministry may not call the stretch NH as yet, with the Prime Minister taking a keen interest, it is set to be developed as per national highway standards. What that means is that tribal areas of Koraput, Malkangiri, Rayagada, Gajapati, Ganjam, Kandhamal, Anugul, Sambalpur, Deograh, Keonjhar, Mayurbhanj and Boudh, currently insurgency hotbeds, may emerge out of the hinterlands. Confirming that the project had been put on the fast track, a senior Ministry of Shipping, Road Transport and Highways official said: “The DPR of the corridor is underway and should be ready in six-seven months.”

Note: As mentioned by Digambara a map of the route is at http://tathya.in/story.asp?sno=592. I removed the faulty map that Indian Express printed.

The Economic Times reports the allocation of coal blocks in Orissa to various power generation companies across the country. Following is an excerpt from that report.

The Damodar Valley Corporation (DVC) has been allocated Saharpur Jamarpani block having 600 MT reserves in Jharkhand and two blocks in Manoharpur with 531 MT in Orissa for the Orissa Power Generation Company (OPGENCO).

The Naini coal block in Orissa (500 MT) has been allocated to Gujarat Mineral Development Corporation and Pondicherry Industrial Promotion and Development Corporation, the official said.

Moreover, two blocks at Chandipara in Orissa (1,589 MT) has been allocated to Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd, CMDC and Maharashtra State Power Generation Company, the official said.

He said the Baitarani West block in Orissa (602 MT) has been allocated to GPCL, OHPGCL and KSEB while Mandakini B block also in Orissa (1,200 MT) has been allocated to Tamil Nadu Electricity Board, Assam Mineral Development Corporation, Meghalaya Mineral Development Corporation and Orissa Mining Corporation Ltd.

The above allocation is done by the Coal ministry in Delhi. Although the coal mining will add to Orissa’s revenue through royalty, a big concern is the low rate of royalty fixed by the center which also does not change as often as it should. Some reports on this were published in Financial Express and other papers. Following is Orissa government’s stand on this issue and the issue of compensation on thermal power generation.

Revision of rates of royalty on coal and other Major Minerals on Ad valorem basis.

Orissa is a mineral rich State, but it does not get non-tax revenue in shape of royalty from such major minerals in the State to the desired extent as the rates of royalty are not being revised in time. The 12th Finance Commission have recommended that the rate of royalty should be revised on ad valorem basis. But the Government of India has not yet done it. In the past, the rate of royalty on coal and other minerals was revised on expiry of more than 5 to 7 years though the rule stipulates that there should be revision after expiry of 3 years. The delay in the revision of the rate of royalty in coal and other major minerals has caused a loss of Rs.150.00 crore per annum. The State has suggested royalty on ad valorem basis.

Compensation on Thermal Power Generation.

Orissa has a vast coal deposit. Orissa is a power surplus State and it exports power to other States. Since, electricity duty can be charged on consumption only, the importing state benefits while the exporting state has to bear the negative externality such as environmental degradation due to mining etc. This tantamounts to transfer of resources from the producer state without any compensation for the huge negative externality as well as depletion of its natural resources. If 1000 MW power is generated in Orissa and evacuated, the importing State gets electricity duty to the extent of Rs.100 crores, while the State in which the power is produced does not get anything. This situation has to be altered by either allowing the State to levy duty on generation or else mandate that a percentage of power generated should be given free of cost to the State by the Central Public Sector generating companies as is the case in Hydro Power Generation.