___________

Following is  from a report in Economic Times.

MUMBAI: Larsen & Toubro shares edged higher Tuesday after it won orders worth Rs 1372 crore from aluminium and steel makers.

The orders were received from Vedanta Aluminium, a part of Vedanta group, Utkal Alumina International and Bhushan Steel, it said in a statement.

The Rs 516 crore order from Vedanta Aluminum was for setting up of a 3 million tonne per annum alumina refinery at its Lanjigarh plant in Orissa. Utkal Alumina’s order was worth Rs 455 crore in which the engineering and construction firm would set up a 1.5 MTPA green field alumina refinery at Doraduga in Orissa.

Furthermore, L&T has secured an order worth Rs 401 crore from Bhushan Steel for civil, structural, equipment, erecting and piping works at Angul in Orissa.

I believe that for Orissa to develop several urban centers and clusters need to be developed. So far many are developing. The ones marked with red are either developed or are in the path of development. The one in purple (Keonjhar) has a good chance of development. The three green ones in the big green zone, denoting Bhwanipatna, Balangir and Phulbani are in need of development. The following table lists what these various urban areas and clusters have or are going to have and what they don’t have and the govt. should make efforts to fulfill those lacunae.

As noted above, all these places should have a university, a medical college, good rail connectivity and several job centers.

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 FAX: PMO at 23016857 , 23015603 (Delhi STD code is 11), CMO at 674 2590 833 (home) 674 2535 100 (office) and Planning Commission at 23096699

To:

Dr. Manmohan Singh

Prime Minister of India

Cc: Mr. Naveen Patniak, Chief Minister of Orissa

Cc: Shri Muralidhar Chandrakant Bhandare, Governor of Orissa

 
Subject: Solving the greater Kandhamala problem – going after the root cause in a war footing

Dear Dr. Singh: 

While the civil society in Orissa, the nation and the world is disturbed by the  communal violence in Kandhamala, I would urge you to take steps to eradicate the root cause of the violence in Kandhamala and the nearby tribal, hilly, forested, awfully connected, poor and backward districts of Orissa (and its neighboring states). In this regard, please note that the violence did not spread to the major towns and cities of Orissa (such as Bhubaneswar, Puri, Cuttack, Rourkela, Sambalpur, Berhampur, Balasore etc.)  that are well connected (by Rail and roads), decently developed and have a civil society. 

While the violence involving the murder of Swami Laxmanananda on August 23^rd 2008 and the subsequent communal violence that has taken about 40 lives is most deplorable and is in the forefront of the media, please also recall the following events that also took place within the last year in these areas:

1. February 15 2008:  400 to 500 armed Naxals raided the Nayagarh armory and killed 15 people including 13 policemen.
2. June 29 2008: 30 elite anti-insurgency policemen were killed by Maoists near Malkangiri.
3. July 16 2008:  21 Orissa policemen were killed in a land mine explosion and firing by the ultras in Malkangiri.
4. Dec 27 2007: Eleven churches were ransacked and torched in several areas of Kandhamal district.

Please note that these events happened in places in Orissa (Nayagarh, Malkangiri and Kandhamal) that are badly connected, near or within forests, have a large tribal population, and are among the most backward districts of India. The following map shows these districts are surrounded by large tracts of dense and open forested areas, and partly explains why the naxalites and Maoists are able to make them their base and why it has been difficult to deploy adequate police there in a timely manner.

Sir: As an economist and a world leader you must know that lack of connectivity, lack of development, lack of a civil society, entrenched forest and mountainous areas together with a different population base is a recipe for the sprouting of troubled areas. This is true all across the world; from J& K and North eastern areas of India to caucuses in Asia. While one cannot and should not get rid of the mountains or the people, the problem can be solved by making the areas well connected and bringing development. The Indian government is doing that in J & K and in the northeast; but has mostly forgotten about the similar areas in Orissa, Chhatisgrah, and Andhra Pradesh, which are the favorite bases of the Naxals and Maoists.

Sir: We would like you to pay the same attention to these areas in terms of connectivity, development, and creation of civil societies, as you do to the North east and J & K. In particular we would request that following be done in a war footing during the 11^th plan.

(i)                  The Vijaywada-Ranchi highway that passes through many of these areas be completed.

(ii)                Broadband connectivity be brought to these districts with adequate access locations.

(iii)                Two Railway lines, parts of which have already been sanctioned by the Railways but are progressing slowly, are completed and made operational. Those lines are:

a.       Khurda Rd – Balangir (passes through Nayagarh and Boudh) – This line was sanctioned in 1994-95 is progressing very slowly.

b.      Bhadrachalam Rd (Andhra Pradesh) – Malkangiri – Jeypore – Nabarangpur – Junagarh – Lanjigarh Rd – passing through Kandhamala – Boudh – Angul – Talcher – Bimlagarh: Several segments of these lines are approved but progressing slowly. Those segments are Junagarh – Lanjigarh Rd and Talcher – Bimlagarh. Angul – Talcher is operational.

(iv)              With the above lines operational, development should be brought into Kandhamal, Boudh, Gajapati, and KBK districts (including Kalahandi and Malkangiri) through 1-2 Rail factories and public sector units that can use the steel and aluminum and power produced in abundance in Orissa.

(v)                Orissa govt. should be encouraged and aided to establish a university in Kandhamala and another in Kalahandi.

(vi)              A branch of the Indira Gandhi National Tribal University be established in one of these districts.

(vii)             Orissa govt. should be encouraged and aided to establish a government medical college and nursing college in Kandhamala or Boudha district.

Sir:  In regards to the cost of establishing the Railway lines, please note that as per the calculation in  http://kbkrail.orissalinks.com/ Indian Railways is scheduled to make a profit of 2679.72 crores/year from its operations in Orissa. If 1500 crores of this money (the rest may go to Indian Railway’s current plans for Orissa) is put into Orissa, in just 2-3 years the above mentioned lines could be completed.

Sir: We sincerely hope that you will translate the great concern you have shown towards the recent violent events to the above mentioned action items that address the key issues of lack of connectivity and development in these areas and thus provide a long term and real solution.

Sincerely

Appendix:

1. Estimated profit Indian Railways will make from Orissa in 2008-09:

2.  One of the earlier planning commissions has noted in http://planningcommission.nic.in/plans/stateplan/sdr_orissa/sdr_orich2.doc

“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”.

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

4. 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%.

5. 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.

Following is an excerpt from a report in Business Standard.

The Anil Agarwal-owned Vedanta group has made substantial headway in land acquisition for its three projects in Orissa which entail a combined investment of over Rs 30,000 crore.

The group needed 11,700 acres for its university at Puri, an alumina refinery at Lanjigarh, and its smelter and power project at Bharkhamunda near Jharsuguda. It has already acquired about 7,515 acres.

The total land needed for the Rs 15,000-crore university is 6,000 acres. The company has to date acquired 3,155 acres and taken possession of 2256.49 acres, which includes 385.15 acres of government land and 1871.34 acres of private land.

… Vedanta Aluminium has acquired the 2,000 acres it needed in Lanjigarh in the economically-backward Kalahandi district for its one-million-tonne-per-annum (MTPA), Rs 4,000-crore alumina refinery. Besides, it has got 80 per cent of the 200 acres needed for a rail corridor for the project.

“About 80 per cent of the 200 acres needed for the railway link has been acquired. We hope to complete the process very soon”, said Mukesh Kumar, chief operating officer, Vedanta Aluminium.

In a relief to the company, the Supreme Court recently cleared the diversion of 660.749 hectares of forest land for mining bauxite in Niyamgiri hills in the Kalahandi district.

While the mining plan has been approved by the Indian Bureau of Mines, the company hopes to start operating the mine in the next four-six months. However, it will have to get clearance from the Union Ministry of Environment and Forests.

Following is an excerpt from a report in Pragativadi.

The Supreme Court on Friday cleared the decks for Anil Agarwal promoted Vedanta Resources to mine bauxite from the ecologically fragile Niyamgiri hills for its proposed Rs 4,000-crore alumina project at Lanjigarh in Kalahandi district.

Vedanta had sought clearance for diversion of 660.749 hectare of forest land for mining purposes to feed its alumina plant.

The special forest bench comprising Chief Justice K G Balakrishnan, Justices Arijit Pasayat and SH Kapadia allowed Sterlite to go ahead with bauxite mining.

The application of Vedanta is allowed, the Supreme Court bench said in a statement. 

However, it asked the ministry of environment and forest to proceed in accordance with law.

… Vedanta wants to dig open-cast mines in the Niyamgiri hills located in Kalahandi district near its project area. 

Vedanta promoted Sterlite Industries had sought clearance for diversion of 660.749 hectares of forest land for mining purposes to provide required raw material for its plant.

Following is an excerpt from a report in the Statesman.

Vedanta Aluminium Ltd (VAL) offers the best rehabilitation package in the state, claimed company sources here recently. The company aims to reduce the impact of its activities on the environment, wherever feasible. The majority of the sites are certified by the international environmental management systems standard ISO 14001. This includes the requirement that environmental impacts are identified. There are ongoing programmes for improvement across key impact areas, they said.

Responding to the critics of its bauxite mining project at Kalahandi, Vedanta officials said that all 120 families that were displaced for the project have got pucca houses with round-the-clock electricity and water supply. Besides one youth from each displaced family has been trained and given a job in the refinery, adding that a total of 2,500 local people have found employment in the refinery project till date. “While about 2000 people had got direct employment at the refinery in Lanjigarh, over 2000 others were getting indirect income generating opportunities,” company sources said.

Vedanta has also started the ‘Sasya Silpa Abhijan’ an initiative of vegetable cultivation, run in collaboration with the Asian Institute of Sustainable Development to give a boost to agriculture in the area. “On an area of 550 acres of land, nearly 500 farmers are participating in the project as partners,” said a senior official. “Although we bear the expenses for irrigation through a diesel pump set by us, yet the training and support provided by Vedanta through this programme has helped us a lot,” said Mr Dinanath Pangi, a farmer.

Vedanta also offers various self-employment schemes for residents of the villages nearby and especially for the womenfolk. Women self-help-groups have been started under public-private partnership in collaboration with the district health department on the Swastha Parivar project. In a bid to widen its corporate social responsibility, the Vedanta group has also adopted 400 Anganwadi centres in Kalahandi district and will look after more than 40,000 children in some of the state’s most backward areas.

“Vedanta has signed an MoU with the state government and the Sterlite Foundation for the adoptions,” said Vedanta group spokesman Mr CV Krishnan. “As a part of the arrangement, every pre-school child aged between three and six years will be provided a cooked meal of 300 calories at noon. The company will also look after the health of the children through regular check ups and medicines,” he added.

He further said that the company is also undertaking the beautification of the Anganwadis by erecting green boundaries, whitewashing buildings and providing see-saws and slides for the children. Furthermore incentives are being provided to Anganwadi workers. While Anganwadi workers receive Rs 250 per month, each helper is given Rs 150 extra by the company. “The same exercise will also be replicated in Jharsuguda,” Mr Krishnan said. The total expenditure on child welfare activities in the two districts will be over Rs 15 crore, company officials revealed In order to ensure that everything goes as per plan, the process will be reviewed by a committee headed by the district collector, the local MLA and the chairman of panchayat samity, they said.

Mr Krishnan said that Vedanta further aims to improve the electricity network, construct roads and develop better educational and healthcare facilities.

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

An environment regulatory committee set up by the Supreme Court has recommended a stringent mechanism for granting mining lease to Sterlite Industries, the parent company of the London-based Vedanta Alumina Ltd, to mine bauxite from the eco-sensitive Niyamgiri hill area for its proposed Rs 4,000 crore aluminium project in Orissa.

As against the plea by the Sterlite India, the Central Empowered Committee suggested that the majority 51% share in the special purpose vehicle — ‘Lanjigarh Scheduled Area Development Foundation’ — should be with the Orissa government and 24.5% each should be with the Orissa Mining Corporation (OMC) and Sterlite.

The Sterlite had suggested that its own share should be 49%, while the Orissa government and OMC should hold 26% and 25%, respectively.

A bench of chief justice K G Balakrishnan, justices Arijit Pasayat and H S Kapadia directed Sterlite and the Orissa government to file affidavits on the formation and constitution of the special purpose vehicle.

…
Sterlite has sought direction from the court to accord clearance of the forest diversion proposal submitted by Orissa Mining Corporation for diversion of 660.749 hectare of forest land to undertake bauxite mining on Niyamgiri Hills in Lanjigarh for its Rs 4,500 crore Alumina plant in Orissa.

Sterlite has agreed to give 5% of the annual profits before tax and interest from the Lanjigarh project, consisting of bauxite mining and alumina refinery, or Rs 10 crore per year, whichever is higher, to the Foundation every year from April 1, 2007.

Sterlite also said it would make a payment of the net present value (NPV) of Rs 55 crore and Rs 50.3 crore towards wildlife management plan for conservation and management of wildlife around the Lanjigarh mine and Rs 12.2 crore towards development for the tribal people.

The committee said there has to be a balance between conservation and development. “The balance between these two would thus lie in permitting conservation not merely for private profit but in a manner that maximises the public interest component in the activity,’’ it said. …

Following is an excerpt from a news report in Pioneer.

Vedanta Aluminium Limited signed an MoU with the Apollo Health & Life Style Limited on Tuesday to open two units of The Apollo Clinics at Lanjigarh and Jharsuguda.

The MoU was signed at the Vedanta office in Bhubaneswar by M Siddiqi, Director and CEO, Aluminium Sector, Vedanta Group, and Ratan Jalan, CEO, Apollo Health & Life Style Ltd, in the presence of Vedanta Aluminium CFO Virendra Agrawal, GM and Head, PR & CSR, Prashanta Hota and other officials form both sides.

The MoU deals with the establishment and management of the two well-equipped Apollo Clinics, which would be fully supported by Vedanta Aluminium. Funded fully by Vedanta, the two units have accepted the responsibility of recruiting doctors, providing all kinds of diagnostic facilities, specialist treatment, extending other modern healthcare facilities and running the clinics at both locations.

Involving a total investment of about Rs 5 crore, the day-to-day operations would also be fully funded by Vedanta.

Besides rendering quality healthcare services to the project-impacted people and employees of Vedanta Aluminium and their dependents, the clinics would be running a Sick Bay Unit in the plant premises and regularly conduct Outreach Programmes in the periphery villages.

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

Some land acquisition numbers:

• Total: 61,769.527 acres
• Coastal: 15,536.153 acres
  • Ganjam: 3229.815 acres (top)
  • Baleswar: 347.643 acres (bottom)
• Naupada: 11,816.27 acres since 2000 (top)
• Kalahandi: 6,163.77 acres (2nd)
• Mayurbhanj: 6113.78 acres (3rd)
• Malkangiri: 3.65 acres (bottom)
• IDCO indsutrial land acquistion in last 3 years for 58 industries
  • 4778 acres govt. land
  • 6532 acres private land

Following is an excerpt from http://www.hemscott.com/news/latest-news/item.do?newsId=53878217759003. 

… India’s Supreme Court set new conditions for the project.

Vedanta’s battle to mine bauxite to feed the refinery in forests considered sacred by indigenous people has been seen as a test case in India, pitting industrial development against the interests of local inhabitants and the environment.

The Supreme Court refused to let the project in the eastern state of Orissa go ahead in its present form on the grounds that it could affect ‘sustainable development’ and asked Vedanta to come back with a new plan.

The court said Vedanta would have to give money for forest destruction, wildlife management and tribal development totalling around 180 mln usd.

Other conditions would include handing over 5 pct of pretax profits annually from its mining projects across India to the Orissa government.

Vedanta would also have to set up a ‘special purpose vehicle’ to ensure that environmental regulations were met, the court said.

Vedanta must file an interim application within eight weeks saying if it agreed to the conditions and the Supreme Court would reconsider the project, the court bench ruled.

Vedanta has been fighting for three years to obtain clearance for open cast mining of vast deposits of bauxite in the densely forested Niyamgiri hills to feed the 900 mln usd alumina refinery it has built nearby.

There was no immediate comment from Vedanta on the court ruling but it has in the past denied any wrongdoing and argued its projects would be welcomed by residents of the desperately poor region.

Following is an excerpt from Pioneer that gives the first reaction from Vedanta officials in Orissa on the supreme court judgment.

Reacting to the judgment, vice-president of Vedanta Alumina Ltd AK Samal said the Supreme Court had reiterated its emphasis on sustainable development but has no objections in principle to mining at Niyamgiri. However, the court has stipulated certain conditions to be complied by the project proponent.

He said the apex court had desired that Sterlite Industries, the flagship company of Vedanta Resources PLC in India, duly enlisted on the Indian Stock Market be a part of the Special Project Vehicle (SPV) for mining at Niyamgiri and Scheduled area development at Lajigarh, where the company’s alumina refinery is located. "We will take all steps to immediately abide by the directions and conditions set out by the SC," he said, adding that the company was still waiting for a copy of the judgment.

Samal said his company was committed to the cause of the social uplift through reasonable industrialisation.

…. Secretary of the Orissa Wildlife Society Biswajit Mohanty, who had filed the petition against the Centre’s decision to allow Vedanta to set up its aluminum refinery and undertake mining activities, said the SC had taken note of their concern. On behalf of the Lok Abhiyan, noted activist Prafulla Samantray had also filed a petition before the Central Empowered Committee (CEC) of the SC.

The social activists filed the petition alleging that if Vedanta was allowed to undertake mining activities, the whole biosphere of Niyamgiri would be affected. The two major rivers, Bansadhara and Nagabali, which originate from the hill, would disappear. Thus it would affect the whole tribal population of the southern parts of the State, they argued.

Taking note of the serious allegation, the CEC had sent a two-member expert team (SK Chadda and SC Shrama) to make a spot inquiry. The team visited Niyamgiri in December 2004. It submitted its report in January 2005. Later, the CEC started the hearing of the petitions. The CEC visited Lanjigarh, where the plant is coming up. It submitted its report to the SC in September 2005, reportedly suggesting that Vedanta should not be allowed to take up mining activities.

The Ministry of Environment and Forests (MoEF) granted environmental clearance for the project on September 22, 2004, and in its letter clearly specified that the source of bauxite for the refinery would be the Niyamgiri mine near Lanjigarh. This led to a furore among environmentalists, who argued that as it came under the Schedule V area of the Constitution, the environment clearance granted by MoEF and forest clearance should be reviewed.

Following is some background on the WORLP from their web page.

WORLP

Western Orissa Rural Livelihoods Project (WORLP) works in four districts of the east Indian State of Orissa. The project was inaugurated in August 2000 by the Hon’ble Chief Minister, Shri Naveen Pattanaik. Full-scale field implementation activities began in October 2001. The four project districts; Bargarh, Balangir, Kalahandi and Nuapara are among the poorest in India. Health indicators are poor, there is a shortage of safe drinking water and drought recurs regularly. Inequitable social structures, distorted land distribution, indebtedness, and gender and other inequities contribute to the widespread poverty in western Orissa and impede access by poor and marginalised people to resources.

Supporting new patterns of rural development, WORLP contributes to reducing poverty by promoting livelihoods initiatives for the poorest. The livelihoods approach adopted by WORLP focuses on building, and working with, people’s existing strengths and resources. The approach is about informing, enabling, initiating and empowering appropriate choices for long-term well being. It involves all sections of rural society across caste, class, gender and other divides.

WORLP, a Government of Orissa initiative, is managed by the Orissa Watershed Development Mission. It is a joint venture of the Government of Orissa and DFID – the UK Department for International Development. Technical assistance to the project is provided by NR International of UK.

This has been reported in Tathya.in, Kalinga Times, and Odisha.in so far. Odisha. in has the two letters.

• Letter to the PM
• Letter to the CM

We appeal to the readers with interest in Orissa to contact their local organization (Outside Orissa, the local Orissa/Oriya/Kalinga organization) and through them send a similar letter to the PM and CM at the earliest. The planning commission has been asked by the PM on September 14th to make the location decisions in two months. So time is running out on this.

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.

Following are excerpts from a report in New Indian Express.

The State Government has prepared a Rs 850-crore draft project proposal under the National Food Security Mission (NFSM) for placing before the Centre for funding. The objective of the mission is to increase production and productivity of rice and pulses in 21 of 30 districts of the State in a sustainable manner.

The other objectives are to enhance farm level economy, restore confidence among farmers and create employment opportunities.

While 15 districts will be covered under NFSM for rice, 10 districts have been chosen for increased production of pulses. While Balangir, Kalahandi, Keonjhar and Nayagarh will be covered under the mission both in rice and pulses, the districts covered under NFSM in pulses include Bargarh, Cuttack, Ganjam, Khurda, Puri and Rayagada.

The project, to be implemented during the 11th Plan period , is expected to cover 20 lakh hectares for rice cultivation and 13.57 lakh hectares for pulses. The State has planned to increase yield of rice from 1,690 kg per hectare in 2007-08 to 2,095 kg per hectare by 2011-12 in the mission districts.

The estimated production of rice in the mission districts will increase from 33 lakh tonnes to 42 lakh tonnes. It has projected to enhance the productivity of pulses from 478 kg per hectare in 2007-08 to 594 kg per hectare in 2011-12. The low yield of rice in the State is due to several factors.

While more cultivable areas are under rainfed conditions, the kharif and rabi crops are totally dependent on monsoon rains. Lack of farm mechanisation, improved technology, training of farmers, soil management, pest management and non-availability of quality seeds are the other factors for low productivity.

The Centre will provide full financial assistance and the fund will be utilised for introduction of hybrid seeds, scientific management of problematic soil, pest management, farm mechanisation, training of farmers, Agriculture Director Arabinda Padhee said. The Government has projected to spend Rs 650 crore for rice production and Rs 200 crore for improved farming of pulses.

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)

(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.

Orissa government has announced higher salaries for doctors who are willing to go to hinterlands, especially the KBK region. Various news papers report on this. Following is an excerpt from Statesman.

… the state government today went on an overdrive announcing a revised incentive package for doctors working in KBK region and also enhancing the pay package to retired doctors who have availed contractual appointments in the same region.

Contractual appointments were given to the retired doctors/private doctors/fresh medical graduates at a consolidated remuneration of Rs.10,000/- per month in Non-KBK and Rs.12,000/- per month in KBK districts.

These appointments are given against the vacant posts of Asst. Surgeons only at periphery hospitals in the state. The government today decide that contractual doctors posted against vacant posts of Asst. Surgeons in the KBK districts and in the districts of Boudh, Kandhamal & Gajapati will henceforth get Rs.18,000/- per month.

The remuneration of doctors posted against the vacant posts of Assistant Surgeons on contractual basis in Non-KBK districts has been hiked to Rs.12,000/- per month.

Remuneration of retired doctors/private doctors having Post Graduate qualification to be appointed on contract basis against the vacant posts of Specialists at District Headquarter Hospitals & Sub Divisional Hospitals in KBK & Boudh, Kandhamal & Gajapati districts will be Rs.20,000/- per month.

The retired/private doctors having P.G. qualification appointed against the vacant posts of Specialists in the periphery hospitals in KBK region will get Rs.25,000/- per month while those in the same category but posted in non-KBK districts will get Rs.15,000/- pm.

… the government also announced several incentives to regular government doctors posted in KBK districts.

It enhanced the existing financial incentives to various levels of doctors which include regular Asst. Surgeons and Specialists of all categories (Class-II, Jr. Class-I and Sr. Class-I) and Medical Officers holding administrative posts (Jr. Class-I and Sr. Class-I) working in Koraput, Malkangiri, Nowrangpur, Rayagada, Bolangir, Sonepur, Kalahandi, Nuapada, Boudh, Kandhamal and Gajapati districts.

Assistant Surgeons & Specialists of all categories (Class-II, Jr. Class-I and Sr. Class-I) and Medical Officers holding the administrative posts (Jr. Class-I and Sr. Class-I) working at the District Headquarter Hospitals/Sub-Divisional Hospitals of Koraput, Malkangiri, Nowrangpur, Rayagada, Bolangir, Sonepur, Kalahandi, Nuapada, Boudh, Kandhamal & Gajapati districts are granted an additional incentives of Rs.4,000/- (Rupees four thousand) per month.

For the same category working in peripheral hospitals of these districts, the revised incentive was Rs 8000 pm.

The incentive will however not be admissible if the doctor is absent for more than four days or avail of any leave other than casual leave.

All the incentives are for a period of one year …