___________

A brief description of the program is given here and here. Following are some excerpts.

About PMRDF The Ministry of Home Affairs has identified 60 districts of the country as Left Wing Extremism (LWE) districts. The Government of India has launched a special programme in these districts called Integrated Action Plan (IAP). On 13th of September, Union Minister of Rural Development Mr. Jairam Ramesh announced a scheme of PM’s Rural Development Fellows for deploying young professionals in each of the IAP districts to assist the District Collector. Mission PMRDFs will basically function as development facilitators, they will assist the Collector and his/her colleagues in each of the IAP districts and provide them with the necessary analysis of situations and how they should be handled. The fellows would actively pursue a district programming approach following three key strategies given below:

• Strengthen the district resource base for programming by finding ways of resourcing all the planned activities and rational budgeting.

• Establish or strengthen systems by exploring alternative ways of delivering services to reach the most deprived communities.

• Trigger processes which would support the changes that have been envisioned in this approach (e.g. village planning).

This would be complemented by a set of supportive actions such as building the capacity of district and block officials; triggering district-wide social mobilization processes particularly among the youth; achieve a ground swell of support and build strong relationships with the Panchayats.

The number of districts is now 78 instead of 60. Each of these districts will have two fellows. 18 of those districts are in Odisha. They are listed below. We welcome the 36 fellows that will be working in those districts in Odisha and will be happy to help them in any way possible.

Following is an excerpt from an article in Pioneer.

In the biodiversity management, three eco-tourism destination sites were developed in Satkosia, Bhitarakaniaka and Similipal. Community reserves and heritage sites were developed in five places. Bichitrapur mangrove area near Jaleswar, Rissia wildlife sanctuary in Baleswar wildlife division, Mandasaur in Phulbani forest division, Khasada waterfall, Black Pepper plantations, Gandahati waterfall and Red Sanders plantations in Paralakhemindi Forest Division were taken up for development as  new eco-tourism destinations.

Update on May6th 2012: 300 crores for Malkangiri and Sukma (Chhatisgarh) under the Special Area Development plan (SADP).

The initial list of 83 Left Wing Extremism (LWE) affected districts under Security Related Expenditure (SRE) scheme is at http://mha.nic.in/pdfs/LWE-aftdDist-131210.pdf. A jpg copy is given below.

In the 83 SRE districts all the expenses incurred on security in these districts are reimbursed by the MHA. These districts were identified after a survey where Maoist violence incidents are more than 20 percent of all the incidents in that district.

As per a recent news item in Pioneer, four more districts from Odisha have been included in this list. They are: Nuapada, Bargarh, Bolangir and Kalahandi.

Besides the LWE SRE scheme, there is an Integrated Action Plan for Backward and Tribal districts. Originally there were sixty such districts out of which:

(a) Five are in Odisha. They are: Deogarh, Gajapati, Malkangiri, Rayagada and Sambalpur. Each of these districts get a block grant of 30 crores.

(b) The eight KBK districts are also included in the IAP and they get the 30 crores each plus 130 crores for all 8 as part of the BRGF (Backward Regions Grant Fund). The eight KBK districts are:  Kalahandi, Nabarangpur, Nuapada, Koraput, Rayagada, Malkangiri, Balangir and Sonepur.

(c) As per a recent news item in Pioneer, three more districts from Odisha have been included in this list. They are: Ganjam, Nayagarh and Jajpur.

In total there are 14 districts from Odisha that are covered under the IAP. They are: Balangir, Deogarh, Gajapati, Ganjam, Jajpur, Kalahandi, Koraput, Malkangiri,  Nabarangpur, Nayagarh, Nuapada, Rayagada, Sambalpur and Sonepur.

In total, 20 of Odisha’s 30 districts are now covered under these schemes. Following is the list.

• Balangir (IAP, KBK, LWE SRE)
• Baragarh (LWE SRE)
• Deogarh (IAP, LWE SRE)
• Dhenkanal (LWE SRE)
• Gajapati (IAP, LWE SRE)
• Ganjam (IAP, LWE SRE)
• Jajpur (IAP, LWE SRE)
• Kalahandi (IAP, KBK, LWE SRE)
• Kandhamal (LWE SRE)
• Keonjhar (LWE SRE, LWE SRE)
• Koraput (IAP, KBK, LWE SRE)
• Malkangiri (IAP, KBK, LWE SRE) (Update: SADP)
• Mayurbhanj (LWE SRE)
• Nabarangpur (IAP, KBK, LWE SRE)
• Nayagarh (IAP, LWE SRE)
• Nuapada (IAP, KBK, LWE SRE)
• Rayagada (IAP, KBK, LWE SRE)
• Sambalpur (IAP, LWE SRE)
• Sonepur (IAP, KBK)
• Sundergarh (LWE SRE)

The ten districts that are not covered above are: Angul, Balasore, Bhadrak, Bauda, Cuttack, Jagatsinghpur, Jharsuguda, Kendrapada, Khurda and Puri.

Following are excerpts from a report in ibnlive.com.

The coffee plantation would be taken up in the undivided Koraput district where currently about 1,300 hectares are under cultivation. …

It has been decided to invest the ` 400 crore over a period of 10 years from 2011-12. The ICB would fund ` 35 crore for a programme on organic coffee production in the State. Rest of the funds will be pooled from MGNREGS, Revised Long Term Action Plan (RLTAP) for KBK districts and other schemes.

As per the survey conducted by the Coffee Board, an area of 11,650 hectare in the Koraput, Kalahandi, Ganjam, Phulbani and Keonjhar districts has been found suitable for coffee cultivation.

Public sector industries like Nalco, Hindustan Aluminium Company and a host of private sector enterprises have evinced interest to take up coffee cultivation in about 1,000 acres which is mined for bauxite ore extraction.

 … For Orissa, the Board is implementing a Special Area Programme with the objective of checking ‘Podu’ cultivation, rejuvenating small coffee holdings and expanding coffee plantation in the tribal sector by providing a subsidy of ` l5,000 per hectare.

Besides, the Board is also providing financial assistance for installation of coffee processing units and imparting training to coffee growers on latest coffee husbandry practices and scientific methods of cultivation.

Six hulling units were also supplied under the scheme to the State during 1999- 2000 to process coffee at farm level.

At present, there are about 122 private coffee growers in the Koraput who have taken to commercial cultivation. …

As per the article below the six most backward districts of Odisha are: Gajapati, Kandhamal, Koraput, Rayagada, Malkangiri and Nabarangpur.

See our earlier posting at http://www.orissalinks.com/orissagrowth/archives/5102 for various data about these districts. In particular the ST% of these six districts are as follows:

• Gajapati: 47.88%
• Koraput: 50.67%
• Malkangiri: 58.36%
• Nawarangpur: 55.27%
• Phulbani (Kandhamala): 51.51%
• Rayagada: 56.04%

The ST% of the other districts which we earlier identified as backward are:

• Bolangir: 22.06%
• Boudh: 12.92%
• Kalahandi: 28.88%
• Keonjhar: 44.52%
• Mayurbhanj: 57.87%
• Nuapada: 35.95%

One other point to note is Sundergarh has 50.74% tribal population. Yet it is not a backward state. The reason is "Rourkela". I hope the people who blindly oppose industries in the backward districts would take note of this fact.

Following is an excerpt from a report in tathya.in.

The Empowered Committee on Infrastructure (ECI), chaired by Chief Secretary has decided to run water sports facilities at Rambha, Barkul and Satapada in Chilka lake and in Ramchandi, Nua Nai, Tampara, Jhumuka, Naraj, Hirakud, Deras, Derjang, Bhanjnagar, Upper Kolab, Upper Jonk and Pitamahal.

… To start cruise, house boat and other water sports facilities in the above locations, it was decided to rope in private players on PPP Mode.

Odisha Tourism Development Corporation (OTDC) will be implementing the project and Department of Tourism will provide onsite infrastructure.

The developer will provide boats and other sporting equipments and operate and manage the facilities.

… The ECI has decided to invite bidders for development of water sports in the above places.

Recently the leading Seashore Group has started water sports facilities in Mahanadi, which has attracted great attention of the tourists.

Tourists are flocking to avail the facilities, said Prashant K Dash, Chairman of Seashore Group.

Experts feel that to start with two main places for the dare-devils of the water are Chilka and Dhabaleswar.

Barkul, Rambha, Balugaon and Satpada are the bases for visiting Chilika, where water sports can be developed in a big way.

Similarly Dhabaleswar in Cuttack also provide an excellent opportunity to enjoy water sports, feel experts.

Following is an excerpt from another report in tathya.in.

The meeting decided to hand over 9 properties of the State Tourism for renovation by the private players and it was decided that these properties would be offered to these highest bidding private players on a long-term lease of 30 years.

… These properties at Kapilas, Daringibadi, Dhabaleswar, Patharajpur, Sunabeda, Rameswar, Jaipur, Ramachandi and Aradi are to be handed over to highest bidders, ECI decided.

DOT will go for fresh tender for Ratnagiri, Nrusinghnath, Bangiriposi and Sohela, where offers were found less attractive.

The Government will also go for fresh tenders for 17 properties which failed to attract any bidder in the tendering process held earlier.

Another 10 properties will be included in the new bidding process to attract private players, said sources.

These properties include Panthashala, Panthika and Wayside Amenities Centre (WAC) in various tourist centres of the state.

With the help of these private players the properties will be given a face lift which has been rendered decrepit due to want of maintenance.

While the State Government will continue to hold the ownership of such properties, the onus will be on the private players to refurbish and maintain them.

The renovation of the properties is being done on the public private partnership (PPP) mode.

The private players, who will refurbish and maintain the properties, will give us an upfront payment besides paying the usual annual royalty”, said Mr.Tripathy.

A 3-Star hotel and a Convention Centre will be developed at Puri on PPP mode, where the DOT has 2 acres of land as Puri is the most important destination of the state.

And Puri has the potential to be developed to a Meeting Incentive Convention Exhibition Destination (MICE), said Principal Secretary Mr.Tripathy.

Following is from a PIB release dated 5th October 2010.

Press Information Bureau

Government of India

Cabinet Committee on Infrastructure

05-October-2010 19:48 IST

Upgradation of road from Vijayawada to Ranchi approved

The Cabinet Committee on Infrastructure (CCI) today approved improvement of balance 600 Km. of State roads in Orissa with a view to develop, in a phased manner, the entire 1632 Km. long Left Wing extremism affected Vijayawada-Ranchi corridor at an estimated cost of Rs.1200 crore. The project will be completed in next three years by March, 2014.

The project will also provide a good communication network between the tribal districts of Orissa and other developed areas in the State as well as to the neighbouring States of Andhra Pradesh, Chhattisgarh and Jharkhand.

The project will cover Malkangiri, Jaypore, Rayagada, Gajapati, Ganjam, Kandhmal, Boudh, Sambalpur, Angul, Deogarh, Koenjhar and Mayurbhanj districts in Orissa.

BACKGROUND:

In view of growing activities of Left Wing Extremists in various States, the stretch between Vijayawada-Ranchi Route was considered for development as an integrated project by Central and State Governments. In Sept., 2009, the Government took decision to sanction remaining stretches of National Highways on Vijayawada Ranchi route in Orissa for widening to two-lane standards and undertaking preparation of Detail Project Reports (DPRs) for 600 Km. length of State Roads, which are not covered under any other programme.

***

AKT/SH/SM

Earlier we discussed the coastal belt and the western industrial corridor. However, there is a big part of Odisha outside of these two areas. Although, that area was long neglected except small industrial pockets in Rayagada and Koraput area, things have started happening in the overall area. Following is a map of that.

In the map above Berhampur and Balangir are reference points for the southern tip of the coastal belt and western industrial area respectively. Coming back to the outposts the current industrial areas are:

• Koraput-Jeypore Sunabeda and
• Rayagada-Therubali

They are 150 kms apart. Besides industries, both areas have several engineering colleges and a central university (possibly with a medical college) is coming up near Koraput.

North of Rayagada-Therubali is the Lanjigarh operations of Vedanta and its emerging township. How fast this area develops will depend on how quick there is an understanding between the loacls and the Vedanta people.

Further north is the Bhawanipatna-Kesinga-Titlagarh area. Titlagarh is a railway junction. A train line connecting Bhawanipatna and Junagarh to Lanjigarh rd of the Raygada-Titlagarh line should have passenger traffic in a couple of years. Recently, Bhawaniptna is getting some attention from the state government in terms of HRD institutions. A government engineering college and a government agricultural college has started here and the higher education task force has recommended a state university here. A private medical college is under construction. (However, its progress is slow.) I hope the government takes over the medical college infrastructure that has been built and makes it a government medical college and a location in this area is chosen for the announced Railway wagon factory.  However, for the area to further develop and develop rapidly, the locals need to actively chip in. They need to learn how locals in the Koraput area, Rayagada area, Gunupur and Parlakhemundi have created  and/or facilitated private HRD infrastructure. (For example, each of them have private engineering colleges.) In addition they should form a win-win partnership with Vedanta. If people don’t help themselves and don’t stop actively opposing private development instead of facilitating it, there is only so much the governments can do.

On the eastern side Parlakhemundi and Gunupur are slowly emerging as educational mini-hubs. The JITM and CRESM in Parlakhemundi are together becoming a private university and Gunupur has the biggest (in terms of student intake) engineering college (private or government) of the state. The railway line connecting Gunupur and Parlakhemundi to the Howrah-Chennai line at Naupada is about to start passenger service.

The lone central outpust is Phulbani. At present it has nothing much except some negative name recognition. The government needs to pay attention to this starting with pushing for the early establishment of a branch of the Tribal University here.

However, there are still several areas which are being left out. This includes the area south of Koraput (namely the Malkangiri district) and the districts of Nabarangpur and Nuapada. Unless development spreads there, they will be the new KBK of Odisha.

1. Economic Times on 3 more terminal markets in Odisha:

Orissa government will provide four terminal market yards to enable the farmers to sell their produce at market prices…. One of the terminal has already been constructed at Sambalpur with an investment

of Rs 86 crore and three others are coming up at Cuttack, Berhampur and Rourkela,…

2. Business Standrad on MOU with five IPPs for 4800 MW power:

The cumulative capacity of these projects would be 4800 Mw and the total investment is envisaged to be Rs 23203.52 crore.

With this, the total power generation projected in the state would increase to 31100 Mw from 26300 Mw earlier.The Orissa government has already inked MoUs with 21 IPPs with an aggregate generation capacity of 26,300 Mw earlier.

… Five companies who signed the MoU included BGR Energy System, JR Powergen Private Ltd, Adhunik Power and Natural Resources Ltd, Maa Durga Thermal Power Company Ltd and Vijaya Ferro and Power Private Ltd.

JR Powergen Private Ltd would set up a 1980 Mw thermal power plant at Kishorenagar near Angul at an investment of Rs 7988 crore. BGR Energy Systems Ltd also plans to set up a 1320 Mw power plant at Bhapur in Nayagarh district at an investment of Rs 6287 crore.

Similarly, Adhunik Power and Natural Resources Ltd would set up a 1320 Mw power plant at Birmaharajpur in Sonepur district entailing an investment of Rs 8079.74 crore. All these proposals were cleared by the High Level Clearance Authority (HLCA) chaired by the chief minister Naveen Patnaik.

On the other hand, Maa Durga Thermal Power would set up a 60 Mw ((2x30Mw) power plant at Tangi in Cuttack district, involving an investment of Rs 296.95 crore. Besides, Vijaya Ferro and Power Private Ltd, planning to set up a 120 Mw power plant (IPP) at an investment of Rs 550 crore at Kesinga (Turla Khamar) in Kalahandi district.

The total land requirement for these projects have been assessed at 4360 acres and about 22,325 direct and indirect employment opportunities are expected to be created when these projects would be fully commissioned. Three projects namely BGR Energy System, JR Powergen Private Ltd, Adhunik Power and Natural Resources Ltd would source water from the Mahanadi river system, Maa Durga Thermal Power would draw water from Birupa river.Vijaya Ferro and Power plans to source water from Tel river.

3. Hindu on preliminary bids for UMPP at Bedabahal:

the government was likely to invite preliminary bids for the 4,000-MW Ultra Mega Power Project (UMPP) at Bedabahal in Orissa by April 30.

The request for qualification (RSQ) for the project may be issued by April 30.

This Bedabahal project would be the sixth UMPP project. The government has already awarded four UMPPs, of which three — Sasan in Madhya Pradesh, Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand — have been bagged by Reliance Power.

4. Sify on 595 crores for waterbody upgrade:

As many as 1817 water bodies, mostly the minor irrigation projects (MIPs) in 20 districts of Orissa, would be revitalized under the Centrally sponsored scheme of Repair, Renovation and Restoration (RRR) of Water Bodies.

These water bodies would be revitalized within a period of three years at an estimated cost of Rs 595.14 crore.

The funding for these projects would be shared between the Government of India and the Orissa government in the ratio of 90:10 for the Maoist infested, drought prone and backward districts of Kalahandi, Bolangir and Koraput (KBK).

For the other districts, the share between the Centre and the state government will be 25 per cent and 75 per cent respectively.

While the design ayacut of all 1817 projects was 2, 48,545.86 hectares, the irrigation potential of an additional 89,110.02 hectares of land would be revived through these projects, sources said.

Most of these projects under the RRR scheme are being taken up in south Orissa’s Ganjam district. About 800 projects under the scheme are to be taken up in the district at a cost of Rs 250.87 crore.

… Apart from Ganjam and KBK, the other districts where the scheme will be implemented are Bargarh, Bolangir, Gajapati, Jajpur, Kalahandi, Kandhamal, Koraput, Mayurbhanaj, Nabarangapur, Nayagarh, Nuapada, Rayagada, Sambalpur, Sundargarh, Balasore, Malkanagiri, Subarnapur, Deogarh and Dhenkanal.

The pilot project for this scheme was implemented for 137 projects in Ganjam and Gajapati districts at a cost of Rs 18.84 crore during 2005-06 to 2008-09.

5. Hindu on Japan giving 150 crores for an irrigation project:

Japan will also give … over Rs 150 crore for Rengali irrigation project in Orissa.

6. Hospitalitbizindia on a mega food park at Malipada, Khurda:

Government of India is likely to set up a mega food park and a marine food park at Malipara near Khurda in Orissa with an area of 282 acres. This information was given by Subodh Kant Sahai, Union Minister for Food Processing while responding to a demand raised by Naveen Patnaik, Chief Minister, Orissa at the Orissa Investors meet 2010.

Bishnu Das’s article in Business Standard lists many of the solar and biomass power unit projects that are in the pipeline in Odisha. Following are some excerpts.

Solar power units:

• 5 Mw power plant of RSB Energy Pvt Ltd in Sundergarh district
• Enzen Global Solutions’s 5 Mw solar power plant in Khurda district
• Lanco Solar’s 5 Mw solar plant in Cuttack district
• Sunark Solar’s 5 Mw power plant in Puri district
• Kolkata based SREI Infrastructure’s 5 Mw solar power plant in Bolangir district
• Moserbaer Pvt Ltd’s 5 Mw grid interactive solar photo voltaic project
• Sahara India’s 5 Mw solar power plant

Biomass power units:

• Rice husk based power plant being set up by Shali Vahana Green Energy Ltd at Nimidha village in Dhenkanal district
• Satya Bio-Power Industry Ltd planning to set up a 10 Mw plant in Ganjam
• A V N Power Projects setting up a 10 Mw power plant in Kalahandi district
• Prasad Bio-Energy planning a 10 Mw unit in Raygada
• Jay Laxmi Bio-Energy Ltd intends to set up a 10 Mw unit in Nayagarh
• Another plant of similar capacity is proposed by Andhavarapu Bio-Energy in Nawarangpur

Following is from http://www.state.gov/g/drl/rls/irf/2009/127365.htm.

In Kandhamal, Orissa State, individuals affiliated with left-wing Maoist extremists killed Hindu religious leader Swami Laxmanananda Saraswati and four Vishwa Hindu Parishad (VHP) workers on August 23, 2008. Although ultraleft Maoists claimed responsibility, the murders exacerbated underlying socio-economic tensions between the dalits and the tribals and unleashed a wave of revenge killings, assaults, and property destruction. According to widely accepted government statistics, 40 persons died and 134 were injured; most of the victims were Christians. The large-scale violence, which included the August 25 alleged rape of a Christian nun, attracted worldwide media attention. The central Government sent 39 companies of paramilitary forces to restore peace and security. State authorities established 18 emergency camps to house displaced persons, worked with NGOs to deliver assistance and relief to victims, and allocated funds to compensate next of kin and repair damaged houses, businesses, and places of worship. The police arrested 1,200 persons and registered more than 1,000 criminal cases. On April 21, 2009, police arrested Maoist leader P. Rama Rao in connection with Saraswati’s murder. According to several independent accounts, an estimated 3,200 refugees remained in relief camps, down from 24,000 in the immediate aftermath of the violence.

In March 2009 Orissa’s ruling party, Biju Janata Dal, terminated its 11-year alliance with its coalition partner, the BJP, reportedly in part over differences in responding to the Kandhamal violence. The state government, supplemented by central police, ensured that all communities in Kandhamal were able to freely and fairly exercise their franchise in April 2009 state and parliamentary elections. Since the reelection of the Biju Janata Dal Party, without its former coalition partner, the state government has worked with the central government to rebuild communities in Kandhamal both through infrastructure improvements and peace councils with various stakeholders. In June 2009 the central Government disbursed $ 300,000 (Rs. 14,648,437) compensation to the next of kin of 35 Kandhamal riot victims.

A part that is not mentioned in the report is that in the 2009 April elections the BJP party which was accused of playing a role in the violence in Orissa was decimated across the state. Out of 147 state level seats, their number reduced from 32 to 6 and in the national level MP (member of parliament) seats their number in Orissa (total seats 21) reduced from 7 to ZERO. The other party that was in power in Orissa, BJD, severed its coalition with BJP before the elections  and went on to win the elections with a larger number of seats than before.

Following is from a report in Hospitality Biz India.

The Institute of Entrepreneurship Development (IED) is likely to set up three food processing centres (FPCs) in Orissa to provide infrastructural facilities for farmers to directly process their products. These FPCs are expected to be developed in PPP mode.

While, the required infrastructure will be created by the Orissa government, the day to day operations, including the centres’ maintenance will be managed by a private agency. Currently, the details of the FPCs are being worked out by the IED and the proposal will be sent to the Union Ministry of Food Processing Industries for assistance after the plan is finalised.

The state government has identified three locations, namely Cuttack, Jagatsinghpur and Phulbani, for setting up of these Centres. However, a final decision regarding the locations for these FPCs is yet to be taken.

See http://www.livemint.com/2008/11/26224633/Kandhamal-in-perspective.html.

Following is an from a PTI report in Hindu.

Orissa government has asked the Centre to adopt a long term plan for Kandhamal, prone to ethno-communal violence instead of seeking any quick solution, official sources said on Tuesday.

Orissa’s suggestion came after the high-level central team headed by Union Agriculture Minister Sharad Pawar, which visited Kandhamal today, sought to know what assistance was needed in mitigating the problems there.

"The Centre wants to support Orissa in building confidence among all sections of the people in Kandhamal," Pawar told reporters after the team arrived here yesterday.

Identifying backwardness in education, lack of connectivity and poor livelihood means as the cause behind the ethno-communal violence in Kandhamal, Orissa government asked the Centre to set up a campus of the National Tribal University, Amarkantak at Phulbani, the district headquarter town.

"As scheduled tribes constitute 52 per cent of Kandhamal’s population, it is proposed to have one Ekalavya model residential school (EMRS) in each block to cater to the needs of tribal children," a report sbubmitted to the central team by the state government said.

This apart, the state government also asked for at least six schedule caste hostels to cater the children of SCs who comprise 17 per cent of the total population in the district .

Stating that connectivity was the main obstacle for the administration proper deployment of security force, it said NH 217 which passed through Kandhamal need to be double laned.

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.

Following are excerpts from a report in livemint.com. (The article seems to be written from the point of view of miners. Nevertheless, if mining activities can help build infrastructure in this area then it may be worth looking. As always, a big worry is the potential impact of mining activities on the environment.)

… Experts say the soil beneath the farming fields in Kandhamal is mineral-rich. The state government has received several applications for mining leases over the last 18 months—potentially leading to investment, jobs and infrastructure—but red tape has stymied progress.

“There is bauxite, graphite, iron ore, gold and coal in Kandhamal,” says G.C. Prusty, senior surveyor at the local mining and steel office in the district. “But nothing is happening. Company representatives keep coming here and ask me about the status of their application. I just tell them to wait for the state government’s approval. I am also waiting.”

… Panda speculates that now the state is so busy pursuing big mines of lucrative minerals such as coal, iron ore and chromite in the more obvious districts of Rayagada and Jajpur that it does not have the bandwidth or the will to explore smaller deposits in areas such as Kandhamal.

… But more than ever before, clearing these small leases, so that new jobs can be created in Kandhamal, has become critical, amid the simmering Kandha-Pano conflict. Security experts believe that if this conflict is left unresolved, the district with its thick jungles and disaffected people is likely to become a haven for Maoist guerillas.

“If their economic problems are left unheeded, then these people are likely to become sympathizers of the Maoists,” says A.N. Sinha, deputy commissioner of police in Cuttack, who has served three years in Gajapati, a district of Orissa that borders southern Kandhamal. Maoists are active in Gajapati.

… And if policy improves, investors say they will come to this district, despite the recent conflict. “Conflict will not keep mining companies out. I would certainly be interested in going there,” says Panda of Imfa.

…

“We generate employment. We employ locals at our mines in Jajpur and Rayagada; we employ them for dispatches, bringing in equipment. Then there is a multiplier effect. Other jobs come up with a mine,” Panda says.

To win over locals, companies also undertake social projects; Imfa reports spending 2% of its net profit (approximately Rs412 crore every year) to set up health and veterinary camps and to build hospitals and schools in Orissa.

Locals, too, say they would welcome the mining companies. Asthik Digal, a Pano who is a stone-breaker and migrates to earn daily wages of Rs200, says he would rather work in a place close to his family. “If I get a job here, why will I go so far from my wife and children? I will stay here and work in a mine,” he says.

But right now, the idea of industries, schools and hospitals in Kandhamal seems like a distant dream, says Prusty.

He may be right. Because even though there is a lot of investment coming into the state—Orissa has signed about 50 preliminary agreements worth about Rs1.98 trillion to set up steel plants—the government’s mining policy is deficient, by many accounts.

To begin with, the state has not updated its mineral map (map of all the resources in the state) in 30 years.

…

“We have no idea of what resources we have or if the ones we do have are mature enough to sustain such large-scale exploitation,” says Shantanu Mohapatra, former director of mines in Orissa. Panda agrees. “So far, we have looked only for the most obvious minerals such as iron ore and bauxite in the most obvious places. Places such as Kandhamal have not been investigated closely.”

When winds changed and mining became lucrative, companies seized the opportunity and forced the state to play catch-up.

The government’s inability to reshape its mining policy has prevented it from earning revenue and also hampered jobs from being created in Kandhamal, where both Kandhas and Panos could have benefited from the rising global demand for the minerals lying beneath their lands.

… Observers say that if the government had acted in time and channelled investment here, maybe the conflict, which is essentially an economic battle between two of India’s most deprived groups, would have been avoided.

They say a long-term economic plan is essential to stop the violence in Kandhamal. That won’t start, residents say, until the government allows them to mine the benefits of their mineral wealth.

"Dr. Manmohan Singh" <pmosb@pmo.nic.in>, "Chief Minister" <cmo@ori.nic.in>, "Orissa Governor" <govori@ori.nic.in>,
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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 the news report on the discussion (almost a confrontation) with the Railway Board Chair, as reported in India Abroad. The basic premise behind our grievances against Indian Railways and our demands is simple.

• Indian railways is scheduled to make 2500-3000 crores/year from Orissa, but spends only 1000 crores/year on Orissa in terms of new lines, doubling and gauge conversion.
• Its current plan for major spending includes freight corridors, metro rails, and high speed rails, none of which touch Orissa. It plans to do gauge conversion of 12000 kms, most of which is unprofitable (this proves that Indian Railway lies when it says it only does profitable lines), very little (less than 100 km) of which is in Orissa.
• Orissa is already behind the national average in terms of rail density and way behind its neighbors such as West Bengal and Bihar. If no changes are made to the 11th plan IR allocations Orissa will further fall behind.
• Indian Railways must not take money from its profit in Orissa, and spend it else where, until it takes care of proper connectivity to Orissa’s tribal, backward and maoist infested areas. The 2500-3000 times 5 = 12,500 -15,000 crore that Indian Railways will profit from Orissa during the 11th plan must be spend in new lines in Orissa until the (i)-(v) lines below and other port and mine connectivity lines are completed during the 11th plan.
• To Mr. Jena’s retort that Mumbai earns so much in taxes and not all of it is spent in Mumbai; we reply that it is often acceptable to take from rich and give to poor; But when did it become acceptable to take from poor (Orissa) and give to rich (freight corridors etc. in other states)?

The lines in Orissa connecting to the tribal and backward areas that we demand to be finished during the 11th plan are:

• (i) Khurda Rd – Nayagarh – Balangir: Lack of connectivity was one of the reasons a recent Maoist mayhem happened in Nayagarh. It seems after recent events, including the confrontation with the Railway Board Chair and various dharanas in Bhubaneswar, IR has started responding to this demand, but not to the extent to promise its completion during the 11th plan. Note that Balangir is the B in the KBK districts that are the most backward in India.
• (ii) Lanjigarh Rd – Junagarh – Nabarangpur – Jeypore – Malkangiri – Bhadrachalam Rd in Andhra Pradesh: Only small part of this is approved. Most of it is not even surveyed. In the long run this will really bring those parts of Orissa closer to the rest of Orissa. This is the most important connection and has to be take care of at the earliest. Like the approved Vijaywada-Ranchi highway, this line will create an alternative Hyderabad – Ranchi path passing through backward and tribal areas of Andhra Pradesh, Orissa and Jharkhand. This line will connect the Kalahandi and Koraput districts, the two K’s in KBK. The recent Maoist attack and killing of the Greyhound forces in Malkangiri might have been prevented if this line existed as then the forces would have used the train rather than being seating ducks taking a boat across a lake in Malkangiri.
• (iii a) Rayagada – Gopalpur: This has been surveyed and but work on it has not started. Note that Rayagada is part of the undivided Koraput district, one of the K’s of KBK. This line could come under port connectivity and will be a viable line connecting the industries near Rayagada with the upcoming port in Gopalpur.
• (iii b) Gunupur – Theruvali: This will add to the Naupada-Gunupur line and make it an economically viable line. (IR and Mr. Jena agree about its importance.) This line will be completely inside the Raygada district, part of the undivided Koraput district, one of the K’s of KBK.
• (iv) Talcher – Bimlagarh (connectivity to the tribal district of Sundergarh): This line has been approved but is only being given a few crores each year, which is less than the inflation. This line will reduce the distance between Sundergarh district and teh coastal areas significantly. For example, it will make Rourkela only 4-5 hrs from Bhubaneswar.
• (v) Baripada/Buramara – Chakulia: This line will connect the tribal district of Mayurbhanj to tribal areas of Jharkhand. It will add to the Rupsa-Baripada-Bangiriposi line and make it an economically viable line. (IR and Mr. Jena agree about its importance.)

All these lines can be completed if Indian railways just suspends its practice of taking from poor (Orissa) and giving to the rich for only a few years (may be just 3-4 years). The following maps show the above mentioned lines.

Following is excerpted from a report in Pragativadi.

According to a preliminary estimation made by the Directorate of Geology, nearly 8 million tonnes (MT) of bauxite was reserved at Ushabali plateau in Kandhmal district. Estimation regarding bauxite reserve in Kandhamal district is preliminary. The volume of reserve could be more, an official said, adding survey work would be extended to nearby areas this year.

The Orissa Mining Corporation (OMC) recently reviewed the mineral survey activities taken up the Directorate of Geology to find new reserve, particularly iron ore, which was in demand as the state had signed MoU for setting up of at least 46 steel plants.

The Directorate had completed survey of Hirapur area in Nabarangpur district for iron ore deposits and had also undertaken fresh surveys in Joda, Badbil in Keonjhar and Daitari in Jajpur.

Though the directorate had completed iron ore survey work by using drilling method at Tensa area of Sundargarh district, the findings were under study, sources said.

Similarly, the survey had also concluded that small diamond reserve could be traced at Dharamabandha and Nangalbod area of Nuapada district where the precious metal was found along with stones.

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

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.

Following is an article and a photo from Dharitri on this.