___________

Following is an excerpt from a report in Business Standard.

The rural BPO centre will be established by the Tata Business Support Services (TBSS) — the BPO wing and a wholly-owned subsidiary of Tata Sons — in partnership with Tata Steel Rural Development Society — a corporate NGO managed by the Tata Group for the last 60 years. To start with, it is expected to employ around 200 people.

Sources close to the development said the company has already recruited the first batch of the executives for the BPO unit, who are expected to undergo two months of training at TBSS’ headquarters in Hyderabad. TBSS has developed a specialised training programme in view the fact that most of the new recruits are not computer literate. It currently operates three rural BPO units that employ around 500 people in all.

A spokesperson from Hyderabad-headquartered TBSS confirmed the move. A senior official of the Tata group said the company was looking for graduates and under-graduates with some knowledge of English.

The centre aims at handling the Orissa region front-end and customer support works of group companies including Tata Teleservices and Tata Sky. The BPO unit will also provide services to other firms who have substantial operations in Orissa.

“Opening the BPO unit in Kalinganagar will provide us access to many educated but unemployed youths in semi-urban areas like Jajpur Road and Duburi which have a number of colleges and educational institutions in and around. The education level among the masses in these areas is comparatively high and the aspirations level of the local people is also very high,”said a Tata group executive in charge of human resources development.

“Although most youths in these areas are interested in higher-end and computer-related jobs, there were no opportunity in these places,” the executive added.

The group will initially run the BPO unit in the transit houses and rehabilitation set-up established by the company in Kalinganagar, before moving into a dedicated building in next few months. The centre will start as a voice-based BPO with focus on Bengali, Hindi and English languages other than Oriya.

Following is an excerpt from a report in Financial Express.

An 11-member team comprising industrialists from Haryana, Gujarat, Madhya Pradesh and Uttar Pradesh is on a three-day visit to Orissa to explore possibilities of investments in ancillary industries. The team on Wednesday visited the Kalinga Nagar Industrial Complex at Dubri in Jajpur district.

Orissa is now focusing on ancillary units of mega projects that are coming up in the state with a view to further value addition and employment generation.

While the proposed Jindal Stainless Steel Downstream Park (SEZ) at Kalinga Nagar is the focus, the government is also promoting the Choudwar Industrial estate to the visitors. Orissa is keen to have ancillary industries in Rourkela, Sambalpur, Paradip and Dhamra regions in addition to the Somnathpur Industrial Estate in Balasore.

The steel SEZ (JSSL) is to come up on 300 acres near the 1.6 mtpa steel plant project of Jindal Stainless, and will house industries to move up the value chain by churning out specific products for different sectors. Investment in the SEZ is envisaged to be to the tune of Rs 1,500 crore.

A study conducted by JSSL and international consultancy firm CB Richard Elis has pointed out that the precision cold rolling, pipes and tubes, auto components, engineering products, kitchenware and lifestyle products hold much promise.

"Advantages of setting up projects in Orissa are manifold as it is at the core of emerging Markets in eastern India comprising West Bengal, Jharkhand, Chhattisgarh and north east", the director industries, Hemanta Sharma, told the visiting industries. It is also the gateway to the Southeast Asian countries in terms of exports, he added.

The state government had lined up a comprehensive package including incentives and concessions to promote ancillary enterprises, Sharma said.

Asserting profitability of the ventures here, CEO of Jindal Stainless SS Virdi said applications of steel are growing faster compared with any metals as per capita consumption (PCC) is on the rise. In India, the PCC is only 1.1 kg compared with 15-20 kg in developed countries.

The following list is from www.orissatourism.gov.in/new/Identified_Tourist_Centre_of_Orissa_261207.pdf.

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

Stainless steel could shine brighter in India as in their scramble for market share the steel makers want to locate users of steel next to their factories in special economic zones.

Jindal Stainless and Steel Authority of India have plans to capture customers right next to their stainless steel plants.

"We are setting up an SEZ next to our Orissa plant on a 300 acre land which will have shops, which use our steel for making products," pointed out Ratan Jindal, VC & MD, Jindal Stainless.

Following is an excerpt from a report in Business Standard.

The bulk of this investment will be made in the phase-II development of its stainless steel plant in Jajpur, Orissa.

"We will spend about Rs 5,600 crore for setting up capacity of 8 lakh tonnes (0.8 million tonnes) per annum of steel in Jajpur. The plant will be commissioned by 2012," Vice-Chairman and Managing Director Ratan Jindal told journalists.

The company will borrow Rs 3,200 crore from Indian and foreign banks for the project, while Rs 1,000 crore would be raised through external commercial borrowings. Another Rs 1,200 crore would be invested through internal accruals. "The promoters will infuse equity of the balance amount of Rs 200 crore," Jindal said.

The company has already spent Rs 2,250 crore for 0.8 million tonnes capacity in phase-I at Jajpur.

The following is from http://jcdl.in/about.htm.

JCDL is a unique public-private partnership between IDCO and Industries supported by Government of India & Government of Orissa. JCDL has been formed with the objective of undertaking infrastructure development of Steel & Metallurgical Cluster, Jajpur under Industrial Infrastructure Up-gradation Scheme of the Department of Industrial Policy & Promotion, Government of India.

JCDL was incorporated on 9.3.2004 as 100% IDCO owned. Pursuant to the restructuring proposal approved by the Industries Department, Government of Orissa vide their letter vide No. 22474 dated 24.12.2004, Kalinganagar Industries Association (KIA), an Association of industries in the Kalinganagar Industrial Complex. Jajpur has subscribed to the equity capital of JCDL. Now, KIA holds 51% equity capital in JCDL whereas the equity held by IDCO is 49%.

Current approved sub-projects (from http://jcdl.in/app_proj.htm):

Department of Industrial Policy & Promotion, Government of India had approved Steel & Metallurgical Cluster development project with outlay of Rs.62.50 crores vide their letter No. 5/23/2004/DBA-1 dated 4.8.2004, which was further revised to Rs.80.60 crores vide their letter No. 5/23/1/2004/DBA-I dated 3.4.2006. 

The source of funding includes GOI grant of Rs. 47 crores, Rs. 15.50 crores to be contributed by the stakeholders, and Rs.18.10 crores by IDCO.

The sub-projects sanctioned for implementation with;

Sl. No.	Project	Project Cost (Rs. in crores)
1.	Augmentation of water supply scheme	14.00
2.	Strengthening and up-gradation of Old Military road	26.00
3 .	Road development in Utility corridors	30.60
4 .	Setting up of Central Tool Room	3.00
5.	Up-gradation of power distribution infrastructure	4.50
6.	Development of common facilities centre including Information & Communication infrastructure	2.50
	TOTAL	80.60

 

Following is an excerpt from a PTI report in Hindu.

Kalinganagar: MESCO Steel Group plans to invest $2.8 billion (over Rs 1,000 crore) to expand its existing steel making capacity and set up a greenfield project that would together take its total capacity to 6.5 million tonnes per annum. MESCO, which owns Mideast Integrated Steel Ltd (MISL), would enhance its existing pig iron plant here into a 3.5 million tonnes steel plant with an investment of $1.2 billion, company’s Managing Director Rita Singh told reporters here.

Ms Singh said that the company would pump in $1.5-1.6 billion through joint venture route in setting up a greenfield steel plant here. The project is likely to be finalised within 2-3 months.

"We have already acquired 800 acres of land for this greenfield steel plant,” she said, adding that this project would be set up by MESCO Kalinga Steel. Both these projects would be completed by 2010-11, she said. The funds for these projects would be arranged through suppliers credit and cash equity.

… MESCO, which has become debt free recently, is also planning to ramp up its pig iron production from the current 4 lakh tonnes to 7 lakh tonnes by 2008-09. The products would be utilised by its steel plants, she said. – PTI

Following is culled from various sources, including Samaja and Pioneer. The 11 projects that have been cleared or partially cleared are:

1. National Thermal Power Corporation (NTPC) Ltd’s proposed power plant in Sundargarh. An investment of Rs 18,000 crore has been made for the project which will produce 3,200 megawatt of power.
2. Proposed Air Separation unit factory by British Oxygen which will come up at Kalinga Nagar in Jajpur district. It will produce 1800 tons of oxygen daily. It will need 15 acres of land and will invest 838 crores.
3. Jindal Stainless Ltd’s Rs 4,090 crore proposed power plant. The project will come up at Gajamara in Dhenkanal. The power plant will produce 1,000 megawatt.
4. Aarti Steel’s Rs 2,065 crore power plant at Ghantakhal in Athagarha
5. Salivahan Green Energy Ltd’s power project at Nimidha in Dhenkanal
6. Hind Metal and Industries Pvt Ltd (HMIL) Rs 237.10 crore plant at Meramunduli in Dhenkanal
7. Kalinga Energy and Power Ltd’s Rs 4261.27 crore project at Babuchakuli in Sambalpur
8. JSW Energy Ltd’s Rs9189.7 crore project at Chiplima in Sambalpur
9. Chambal Infrastructures and Ventures Ltd’s Rs 4993.98 crore project at Siaria in Dhenkanal
10. Ind Barath Energy Ltd (IBEL)’s Rs1007.69 crore power plant at Banaharpali in Jharsuguda.
11. Expansion of Balasore alloys.

Following is an excerpt from a report in Statesman on this.

Orissa Industrial Infrastructure Development Corporation (IDCO) has signed an agreement with Hyderabad-based Ramky Enviro Engineers Limited here yesterday. IDCO MD Mr Vishal Dev and Ramky MD Mr. Ravi Kant signed the agreement in the presence of senior environment engineer of state pollution control board (SPCB) Dr DK Behera.

Seventy acre land in Jajpur district has already been allotted to the waste management company for setting up of the treatment, storage and disposal facility (TSDF). In the first phase, the project cost will be around Rs 33 crore, which is expected to be commissioned within six months. It would be a state-of-the-art facility complying with the provisions of hazardous waste (management and handling) Rules-1989 as amended, said Mr Dev and added that the facility shall comprise of engineering land fill, laboratory, waste handing transport and equipment, waste disposal facility, latched facility, waste storage facility.

Update: Pioneer reports that ‘"The NHAI has agreed to provide funds immediately to take up the widening and strengthening the NH-215 from Panikoeli to Rajmunda. Rs 96 crore will be spent for this purpose. The tender process for the four laning would start soon."

Following is a from a news item in tathya.in.

Tin project of the Koustuv Mining and Smelting Company (KMS) also received the nod of the Authority. 

KMS will set up tin smelting plant at Khurda and refinery at Malkangiri with an investment of Rs.95.61 crore. 

The company holds mining lease for 1116.830 hectares in tin ore rich area of Malkangiri.

Following is from odisha.in.

According to official sources, the SLSWCC has also cleared six other industrial project proposal, which include- Dev Alloys at, Jajpur, Ravi Metalik , Sambalpur, Kaustuv Mining  and  Smelter at Malkangir, Orissa Mining and Mineral Development Pvt Ltd, at Dhenkanal, S.L.Mining, Joda and ESSAR’s expansion proposal for its proposed Paradeep Steel project.

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

Tata Steel is likely to start the construction work of its greenfield steel project in Orissa within two months.

“We have got necessary clearances. Work to rehabilitate more than 1,200 families have been completed and now we are going to start the construction by the end of this year,” Tata Steel Kalinganagar project General Manager N A Ansari told PTI.

Tata Steel is seeking to increase the production of steel from 27 MT to 45 MT by 2015 and it will be achieved through greenfield projects, he said and pointed out, “Kalinganagar is the first such greenfield project undertaken by the company outside Jamshedpur.” Tata Steel is setting up a greenfield steel project in Kalinganagar, Orissa, to produce 6 MT of steel per annum and is investing Rs 18,000 crore in the project. The project is scheduled to be commissioned by mid-2009.

When asked whether there has been any delay in the project, he said, “We intend to go little faster, but there has been not much delay and these are usual things happens in any big project.

“We have already placed the order for more than Rs 5,800 crore worth of equipment and materials and all other things related to planning layout and estimates have already been done,” he said.

Speaking about the company’s investments in Orissa, he said, Orissa is one state where it has planned to invest more Rs 35,000 crore in various projects.

Following is an excerpt from a report in Telegraph.

Bhubaneswar-Cuttack and neighbouring towns will be developed into a greater urban complex of international standards catering to the needs of 42 lakh people by 2030.

The final perspective plan to this effect was presented to chief minister Naveen Patnaik here today by a team from IIT, Kharagpur. B.K. Sengupta, heading the team, said the comprehensive development plan for Bhubaneswar, Cuttack, Choudwar, Khurda and Jatni would be ready by August 2008.

Subsequently, development plans would be prepared for places like Rourkela, Puri, Sambalpur, Berhampur, Talcher-Angul, Kalinga Nagar and Jharsuguda industrial complex, said state urban development minister K.V. Singhdeo.

The final perspective plan has envisaged comprehensive development of a greater urban complex comprising twin cities of Bhubaneswar-Cuttack and three adjoining towns spread over 721sqkm at an estimated cost of Rs 34,000 crore.

The required funds would be mobilised through public-private partnership, central government and state government and community contribution, said the urban development minister.

While 11 special zones have been earmarked for extensive development, four have been identified for intensive development and three places (Old Bhubaneswar, Choudwar and Old Cuttack) having heritage value have been set aside for restricted development. Seven sensitive pockets have also been identified.

A patch of farmland on the east of the Kuakhai flowing near Bhubaneswar has also been earmarked for agriculture. The final perspective plan has dwelt on various aspects like transport, traffic decongestion, upgrade of road system, slum development and drainage. Construction of overhead bridges and bypass and the upgrade of road systems have also been planned.

Drainage and sewerage development has also been planned in the twin cities.

A solid waste management plant has been proposed in Bhubaneswar. Bhubaneswar-Cuttack would be made slum-free. The shanties would be removed and the dwellers would be resettled in planned rehabilitation colonies to be built by private builders on the Dharavi model in Mumbai.

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.

Following are excerpts from a New Indian Express report on this.

Tata’s budget hotel chain Ginger is expected to open doors to foodies in Paradip and Konark by the end of 2008.

Chief executive officer of Roots Corporation, Prabhat Pani said, they have already acquired one acre of land each in both these towns and would start construction in the next two months. Plans are also afoot to come up with a Ginger hotel in industrial towns like Jharsuguda, Angul and Kalinga Nagar in the next couple of years.

Roots Corporation is a wholly owned subsidiary of Tata Group and manages the Ginger chain of hotels. The company entered into the State in September last year with the launch of Ginger in the city.

The Chairperson of the Railway board, in Bhubaneswar for the Railways athletic meet, met various Orissa government officials. Following are excerpts from various newspapers report on the meeting.

Statesman:

The state government would provide land for the proposed general stores depot of the east coast railway at Mancheswar.

The proposal was taken in a meeting between the chief minister Mr Naveen Patnaik and the railway board chairman Mr KC Jena here today. It is hoped that this particular endeavour would assist the small entrepreneurs to a great extent.

The state government has also promised to provide land for beautification of the entrance to the Bhubaneswar railway station.

Mr KC Jena informed the chief minister Mr Naveen Patnaik that a survey is being conducted for running of passenger trains on the Daitari- Banspani route and the certificate of the commissioner for railway safety is being awaited.

Issues pertaining to the development of the railways in the state like expediting of the important railway projects of the state, increasing the allocation, setting up of special purpose vehicles for Haridaspur-Paradeep and Angul-Sukinda railway projects and passenger amenities were the topics discussed in the meeting.

The establishment of a world-class station at Baranga also formed a part of the discussion. The chief secretary Mr Ajit Tripathy of the east coast railway, the general manager Mr SS Khurana, the secretary to chief minister Mr BK Patnaik, the commerce and transport secretary Mr P Patnaik were present in the meeting.

Pioneer:

During the meeting, discussions were also held for speedy implementation of the Khurda Road-Bolangir new broad gauge rail link and Lanjigarha Road-Junagarh rail link project.

The Government also urged the Railway Board chairman to expedite the Bargarha-Nawapara Road -via- Padmapur railway link, Jeypore-Malkangiri railway connection, extensions of Nuapada- Gunupur broad gauge rail link to Theruvali and formation of a special vehicle for the Angul-Dubri-Sukinda Road broad gauge rail link project.

The State Government also took up the issue to introduce more pantry cars on passenger trains. The Government also urged the Railway Board chairman to introduce more AC coaches in the Tapswini and Puri-Raipur Express.

Prior to the meeting, Sambada had published the following as the agenda of what Orissa government will discuss with Mr. Jena.

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 is an excerpt from a New Indian Express report.

The Assembly Committee on Industry has suggested that dedicated industrial parks should be set up for micro, small and medium scale industries in Kalinga Nagar, Jharsuguda, Paradip, Rayagada, Angul and Dhenkanal in view of the large number of mega industries coming up in several industrial zones in the State.

In its latest report, the committee said such parks should be specially earmarked for ancillary and downstream industries. It observed that considering the importance of the small and medium enterprises in employment generation and economic growth of the State, priority attention should be given for the revival and promotion of these sectors.

Official sources maintained that till November, 2006, investment in these two sectors had touched Rs 2,652.8 crore with employment generation of 5.48 lakh. Cluster approach has been adopted for development of small scale industries and major clusters have been identified for development and marketing linkage with the assistance of United Nations Industrial Development Organisation (UNIDO).

The panel, however, observed that though 45 MoUs had been signed for establishment of steel plants in the State, progress has not been satisfactory. Of these, 20 companies have invested Rs 12,085 crore and started commercial production by December, 2006. These companies have created direct employment opportunities for 9,131 persons.

In the steel sector, investment has been estimated at Rs 1,86,499 crore with a total capacity of 73.43 million ton per annum. In the aluminium sector, two companies have signed MoUs with a proposed investment of Rs 25,000 crore.

Indian Oil Corporation is also setting up a refinery and petrochemical complex of 15 million ton capacity per annum with an investment of Rs 25,000 crore. Official sources said a chemical and petrochemical investment region is proposed to be set up at Paradip.

The committee has suggested that polytechnics should be established in all districts of the State and industrial training centres in all the block headquarters.

Besides, the 10 ITIs in the State should be upgraded gradually with 75 percent Central assistance, it added.

Update: The Orissa government’s tourism web page has additional information on the Shamuka beach project.

Following is an excerpt on this from Expresshospitality.com.

Shamuka Beach in Orissa near Puri is being developed as a high-end luxury tourism destination by the Orissa Tourism Development Corporation. The department has acquired a 1000 acre property south of Puri, and is in the process of acquiring 2000 acres more. It is a natural island and is being developed by the name Shamuka Beach project. Divulging further details about the project, Asit K Tripathi, secretary, Orissa Tourism, says, "It is going to be one of India’s best integrated, dedicated and up market tourism project, with only 5-star hotels. We had advertised and the response has been overwhelming. We have got responses from leading players in the country as well as abroad. ITC-Welcomgroup, the DLF-Hilton combine, Taj Hotels Resorts and Palaces, IHHR’s Ananda Spa, Casino Group of Hotels Earth (CGH Earth), The Oberoi Group, Apeejay Surrendra Group, Marriott International, and Carlson Hotels Asia Pacific have all shown interest. We can allot land to approximately 20 national and international hotel brands. We are coming out with a blue print to develop infrastructure. The third stage will be to establish a golf course and convention center. This will raise the value of Orissa as a leisure destination." "Although we have 934 hotels in Orissa and 2000 rooms, the majority cater to primarily low spending groups, and the rest target high spending tourists or corporates. With this initiative, within 1-2 years, we will have more quality rooms," says Devi Prasad Mishra, tourism minister, Orissa. Samukha Beach and Puri, as well as industrial growth centers like Paradeep, Talcher, Kalinganagar, as well as Jharsuguda and Angul have generated interest from the hospitality industry in recent times – especially budget hotels and business hotels. The no-frills brand of The Indian Hotels Company, Ginger Hotels opened their first hotel in Bhubaneshwar. Carlson Hotels Asia Pacific plans to open its Radisson Hotels & Resorts in Chilika, Puri and Bhubaneswar. Cabana Group, the master licensee of the world-renowned chain of hotels – Best Western International from California is setting-up an international standard culinary college cum 5-star property in Bhubaneswar, and is eyeing Puri to develop the brand.