___________

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.

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 is from the Team Orissa newsletter of AprilJune’2011.

In regards to the airport in Paradeep, there has been news that it will be an important aspect of the proposed PCPIR in Paradeep.

In the past, two other airport locations have been mentioned: Koraput/Jeypore/Sunabeda area and Balasore/Baripada/Rasgovindpur area. In fact, after Rourkela, Jharsuguda and Gopalpur, these two will be the important locations as they have the potential to be regional airports.

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 from a report in Business Standard.

Orissa government today approved nine new projects, including coal-to-liquid (CTL), steel and aluminium units involving investment of Rs 1,36,000 crore.

The projects got the final nod at a meeting of the high-level clearance authority chaired by Chief Minister Naveen Patnaik, Industries secretary T Ramachandru said.

Apart from two CTL, two steel and one aluminium units, the approved projects included a power plant, one textile unit, a paper plant and an aluminium park, he said.

Among the major proposals was the Rs 42,000 CTL project of Jindal Symflex Ltd to be set up at Durgapur in Angul district using German Lurgi technology, he said adding its capacity would be 80,000 barrels per day.

Requiring 4,000 acre of land, the project would have an 1100 mw captive power plant. Set to provide 6500 direct employment, it would use 90 cusec water from river Mahanadi.

Another CTL project is proposed to be set up by Strategic Energy Technology Systems Pvt Ltd, a joint venture of Tata and Saso, at an investment of Rs 35,000 crore at Gudiakateni in Dhenkanal district.

With a capacity of 80,000 barrels per day, the project requiring 4,000 acre land would have 1100 mw generation facility. It would generate 6700 direct employment while drawing 90 cusec water from river Mahanadi.

An aluminium project is proposed to be set up by a joint venture of L&T and Dubal at an investment of Rs 30,000 crore over an area of 4000 acre in Rayagada district. Its refinery would have 3 mtpa capacity and smelter 1.5 mtpa. It would draw 60 cusec water from river Nagavali.

Seeking to further raise energy production, the HLCA cleared a proposal of Lanco Dabandh Power Ltd to have another 1320 mw unit at an investment of Rs 5000 crore in addition to its earlier plant of same capacity in Dhenkanal district.

In textile sector, Andhra Pradesh based NSL Textiles Ltd would set up an integrated textile plant at an investment of Rs 1500 crore with a promise to provide 5000 jobs and steps to encourage one lakh farmers to grow cotton over an area of 2.25 lakh hectares of land.

Following are excerpts from a report in Pioneer.

With this, the total investments in the State’s industry sector went up to `5.36 lakh crore.

… Principal Secretary of Industries, T Ramachandru said the two ambitious coal-to-liquid projects are first of its kind in the country to be set up in joint venture. While Jindal Synfuels Limited of Jindal Steel and Power would set up a `.42,000-crore plant with technical collaboration of Largy of Germany, Strategic Energy Technology, a Tata venture, would establish its project with an investment of `45,000 crore with technological collaboration of Sasol of South Africa.

He said Jindal;s plant would be located at Durgapur in Angul district with a production capacity of 80,000 barrels of diesel and other petroleum products per day. Besides, Jindal Synfuels would also establish a 1100-MW captive thermal power plant. The project would require 90 cusecs of water to be drawn from the Mahanadi. It would require about 4000 acres of land. It would provide employment to around 6,500 persons.

The Tatas would set up their project in Dhenkanal district in 4,000 acres of land with a requirement of 90 cusecs of water. The project, which includes a 1,100-MW captive power plant, has direct employment potential of 6,400 persons and would produce 80,000 barrels of petroleum products per day, Ramachandru said.

He said both the projects have already been allotted with coal blocks by the Central Government.

Aditya Aluminium would establish an aluminium park at Katarbaga near Rengali in Sambalpur district by investing `1,300 crore to encourage ancillary and downstream industries in the small-scale sector. The park, which would require 211 acres of land, would facilitate units like foundry, wire drawing, extrusion and coil in its cluster.

The HLCA also approved the proposal of L&T Dubal, a joint venture company of L&T and Dubal Aluminium of Dubai, to establish an integrated aluminium project with a 3-MTPA alumina refinery and a 1.5-MTPA smelter with an investment proposal of `30,000 crore. The aluminium project would be located at Rayagada. The project, whichwould provide direct employment to 3,000 persons, would require 4,000 acres of land and 60 cusecs of water to be drawn from Nagavali river. The company is already in possession of bauxite mines.

Andhra Pradesh-based NSL Textile has also received clearance of its proposal to set up an integrated textile project at Rayagada with 3-lakh spindle capacity. The company would invest `1,500 crore to produce 6,000 pieces of cloths of varied qualities per day, Ramachandru said. He said the company would enter into agreements with farmers for cultivation of cottons to meet its raw material demands. The company would involve at least one lakh cotton growers for cultivation of cotton in 2.5 lakh acres of land in a buyback process. It would instal ginning, cotton processing, yarn preparation and finished clothes plants. It requires 400 acres of land Besides these new projects, the Industries Secretary said, the HLCA cleared the proposal of JK Paper Ltd of Rayagada to expand its capacity to 1.5 lakh tonne per annum with an involvement of `1,475 crore. With the capacity addition, the company would provide employment to 3,800 more persons. The company has applied for 150 acres of land to its existing 659 acres to set up the expansion project.

The HLCA also accorded approval to Adhunik Metalics to expand its steelmaking capacity to 3.2 MTPA in its Kuanramunda project in Sundargarah district. The company, which proposes an additional investment of `8,125 crore, promises to provide 2,100 more jobs. Presently, its production capacity is around .041 MTPA. It requires 100 acres of land for the expansion project.

OCL Iron and Steel Ltd got the clearance for capacity addition to its project at Kutnia, Rajgangpur to 0.95 MTPA at an investment of `2,834 crore. It proposes to provide 2,500 more direct jobs. It also envisages downstream industries and requires 650 acres land.

The HLCA also approved the proposal of existing Lacno Babandh Power Private Ltd at Khadakhprasad to double its power generation capacity from 1,320 MW.

It proposes to set up two new units of 660 MW and invest additional `5,000 crore in its thermal power plant. It requires an additional 700 acres of land and would provide employment to 800 more persons, the Industries Secretary said.

Following is an excerpt from a report in Economic Times.

After stopping bauxite mining in Orissa the government now finds itself in a bind on the issue of rehabilitation in Lanjigarh. Corporate-backed developmental activities in the tribal region, one of the most backward places in the country, have come to a standstill following the environment ministry’s ban on mining.

The Anil Agarwal-controlled Sterlite Industries had been ordered by the Supreme Court in August 2008 to spend about 5% of its profit for development activity at Lanjigarh.

Since the environment ministry in August 2010 had barred mining, the rehabilitation package which includes about Rs 10 crore of annual development activity including the building of roads, schools and hospitals, has now been stopped.

"If disbursement from the development fund were to continue, it would imply approval of mining which would be contrary to the ministry’s order," said one person directly involved in the developmental work. On August 30, 2010, the ministry of environment and forests issued a notice barring bauxite mining in Niyamgiri on grounds of violation of environmental norms.

According to the same person quoted earlier, if the government asks Sterlite to stop developmental activity it would amount to contempt of court as it would go against the Supreme Court directive.

"Under our order we suggested rehabilitation package under which Sterlite Industries is required to deposit 5% of annual profits before tax and interest from Lanjigarh project or Rs 10 crore per annum whichever is higher," said the Supreme Court order. "The said project covers both mining and refining. The amount is required to be deposited by Sterlite Industries every year commencing from April 1, 2007. For the above reasons, we hereby grant clearance to the forest diversion proposal," read the order dated August 8, 2008.

… Among the projects which have been left uncertain include a Rs 3 crore hospital and a Rs 1.8 crore tribal school upgradation in the Lanjigarh block.

I hope the central government will consider paying this lost amount of 10 crores/year for developmental activities in that area.

Following is from http://pib.nic.in/release/release.asp?relid=67682.

The Cabinet Committee on Economic Affairs today approved commencement of an Integrated Action Plan (IAP) for Selected Tribal and Backward Districts to cover identified 60 districts as an Additional Central Assistance (ACA) scheme on 100% grant basis. This is in pursuance of the Finance Minister’s announcement in his Budget Speech of 2010-11 and the Prime Minister’s address to the National Development Council on 24th July, 2010.

The scheme will, to begin with, be implemented over two years i.e. 2010-11 to 2011-12 with the following Components:

(i) In the current year (2010-11), a block-grant of ` 25 crore will be made available to each of the 60 selected districts for which the schemes will be decided by a Committee headed by the District Collector with District SP and District Forest Officer as members. During the year 2011-12, the block grant will be raised to ` 30 crore per district. The scheme will be reviewed for implementation in the 12th Plan at a later stage.

(ii) The existing KBK plan under BRGF will continue as before with annual allocation of ` 130 crore for all eight districts put together. The eight KBK districts have also been included under the IAP and will get additional block grant of ` 25 crore per district in the current year and suitable additional amount under both State and District Components of IAP in the subsequent years.

(iii) The scheme will focus on improvements in governance and specific preconditions will need to be complied with by the States before availing of the second tranche of the proposed additional financial assistance in 2011-12 under the State Component of the IAP. However, these conditionalities will not apply to the District Components of IAP.

(iv) The scheme will focus on effective implementation of the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA) and the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (Forest Rights Act).

(v) A mechanism for procurement and marketing of MFPs, including issues of manpower requirement, capacity building and development of value chain specific to MFPs would be worked out by the Planning Commission, in consultation with the Ministry of Panchayati Raj and Ministry of Tribal Affairs. The administrative mechanism for enforcement of the minimum support price for MFP in accordance with the mechanism so work out will be the responsibility of the State Government concerned.

(vi) The District Component will be administered by the Ministry of Panchayati Raj and the State Component by the Planning Commission.

AD/LV/RK

Following is from a Business Standard report.

The state has attracted investments worth Rs51963.54 crore in the July-September quarter of 2010-11, reinforcing its image as an investor friendly destination.

… Of the 22 proposals that the state has received in the July-September period of this fiscal, seven have been in the energy sector followed by six in the steel and mines sector and three in the cement sector.

Investment proposals in the energy sector have been to the tune of Rs32024.76 crore with a cumulative capacity of 5175 Mw. Hecate Power Company Ltd has proposed to set up a 1080 Mw (4×270) thermal power plant in Bolangir district at a cost of Rs5350 crore.

Samvijaya Power and Allied Industries Ltd has proposed to set up a 1320 Mw (2×660) thermal power plant at Rampela in Jharsuguda district at an investment of Rs6828.38 crore.

Another power firm- Arissan Energy Ltd has also proposed to set up 1320 Mw (2×660) thermal power plant at the same location, entailing an investment of Rs6828.38 crore.

Similarly, Action Ispat and Power Ltd has evinced interest in setting up a 1320 Mw (2×660) thermal power plant at Puruna Pani in Boudh district at a cost of Rs8079.74 crore.

Embassy Nirman Pvt Ltd has proposed to set up a 135 Mw coal based power plant at Ghantikhal in Cuttack district at an investment of Rs618 crore.

Moser Baer Power and Infrastructures Ltd has proposed to put up a 1320 Mw (2×660) power plant in Bolangir district at a cost of Rs7400 crore.

Sonepur Energy and Oil City Pvt Ltd has lined up an investment of Rs5000 crore in setting up a gas processing plant and petrochemical complex at Sonepur in Ganjam district.

In the steel sector, ARSS Steel & Power Ltd has proposed to set up a three million tonne per annum (mtpa) steel plant at Boinda in Angul district, involving an investment of Rs10900 crore.

Similarly, Neepaz B C Dagara Steels Pvt Ltd, has planned to set up a 0.4 mtpa integrated steel plant and a 45 Mw captive power plant (CPP) at Rairangpur in Mayurbhanj district at a cost of Rs1152 crore.

International Minerals Trading Company Pvt Ltd has proposed to set up an iron ore fines beneficiation plant at Barbil in Keonjhar district at a cost of Rs150 crore.

In the cement sector, Visa Cement Ltd intends to set up a portland cement plant at Bargarh at a cost of Rs1840 crore. Jaipur Cements Pvt Ltd has proposed to set u a 0.5 mtpa cement grinding plant at Kalinganagar in Jajpur district at a cost of Rs63.50 crore.

Bhushan Infrastructure Ltd has planned an integrated township at Mangalpur in Dhenkanal district at an investment of Rs425 crore. J K Paper Ltd plans to set up a paper board plant at Jaykaypur in Rayagada district at a cost of Rs1475 crore.

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

Following is from a report in http://www.platts.com/RSSFeedDetailedNews/RSSFeed/HeadlineNews/Metals/7176480/.

India’s Hindalco Industries expects to start up its new alumina refinery in the state of Orissa in September 2011, with commercial sales to begin from December, company sources said Tuesday.

Construction on the 1.5 million mt/year refinery began in 2007, and is about 50% done. Based at Rayagada, it will be managed by wholly owned subsidiary Utkal Alumina International Ltd, which is also establishing two bauxite mines at Rayagada and Kalahandi that are also slated to start up next September. The refinery and mines are about 20 km apart and will be linked by a conveyor belt.

Hindalco will eventually use most of the refinery’s alumina for its own production of aluminum, but there will be surplus output for sale, initially 780,000 mt/year, then dropping to 60,000 mt/year around July 2012 when the second of the group’s two new smelters come online.

The firm has a 360,000 mt/year smelter in the state of Madhya Pradesh that is to be completed in July 2011, followed by another unit of a similar size in Orissa a year later.

In addition, plans are underway to double the alumina refining capacity in Orissa to 3 million mt/year by 2014, by which time Hindalco is expected to sell about 50% of the new output.

The alumina expansion will be complemented with further aluminum capacity increases although details have not been announced. The group is also planning to raise its bauxite output at Orissa by 4 million mt/year to 8.5 million mt/year along with the refinery expansion.

Various KBK statistics are known to everyone here as well as to the planning commission. We will not rehash them here. We will just like to point out that various programs in KBK (such as RLTAP) will not work to their potential unless qualified people are willing to be there to implement those programs and unless there are enough local people who are qualified. For example, one can open schools and hospitals and initiate irrigation projects. But if teachers, doctors and engineers do not go there in sufficient numbers to staff the schools, hospitals and irrigation projects they will not achieve their impact. So while we make programs for schools, hospitals and irrigation projects we need to pay attention to the infrastructure aspects that will (a) create enough local teachers, doctors and engineers and (b) will not deter teachers, doctors and engineers to come to this place.

With that in mind we propose that the following be pushed with the central government for implementation in the next 7 years  — the remaining part of the 11th plan and the 12th plan starting in 2012. I think the list below is doable. (Much more needs to be aimed for and done through the state government, industries and people in this region; but here we only focus on what one can realistically push with the central government and achieve.)

1. Railway Infrastructure: The Railway infrastructure of the KBK districts need to be drastically improved. In particular there are several approved lines that need to be speeded up. In addition there are some hanging lines that need to be extended and completed. The following shows the current Railway lines in Odisha.

The following picture shows the lines that bring better rail connectivity to the KBK districts. The ones in brown have been approved and we request that they be completed within the next 2-3 years and. We request that the ones in blue are approved and completed within 5 years.

2. Airport at Jeypore:  Currently Odisha has one airport with commercial flights. That is in Bhubaneswar. AAI is in the process of making another airport at Jharsuguda. We propose that another airport be built near Jeypore-Koraput with commercial flights in mind (small planes to start with) to serve the KBK area. An airstrip is already there.  The following map shows the location and its distance from the other airports in India.

3. Roads: On roads, we request that the construction of the Vijaywada-Ranchi highway be expedited.  More.

4. HRD/Education: The 11th plan has good proposals regarding schools, ITIs and model colleges. But as we said in the beginning of this document, KBK needs to produce its own teachers, doctors and engineers.

As a first step the Odisha government decided to locate the Central University of Odisha in Koraput. However, considering the vast area of KBK, we request the following.

4.1   The 11th plan has provision for having medical colleges and engineering colleges in 5 of the 16 new central universities. (See the page from Volume 3 of 11th plan below.) We request that the one of those medical college and engineering college be established as part of the Central University of Orissa, Koraput.

4.2   A centrally funded engineering college of the kind in Longowal Punjab (SLIET), Kokrajhar Assam and the one being made in Malda (GKCIET): These three centrally funded engineering colleges have rural focus and we request that one such rural focused 3-tier (catering to workers, technicians and engineers) is needed for KBK. We request that it be made in Balangir. In the next page we have cut-outs related to the above mentioned three colleges which show their mission perfectly matches what is needed in the KBK districts.

4.3 Upgradation of Food Craft Institute Balangir to an Institute of Hotel Management.

4.4 Some kind of a centrally funded institute in Kalahandi: One has to be realistic in pursuing something that is achievable; something central government has established in smaller towns in other states; something with similar philosophy as SLIET/GKCIET/CIT-Kokrajhar but in a different field.

Added on Dec 11th 2010: I think a Central Agricultural University can be pushed for Kalahandi. Currently a Central Agricultural University exists in Imphal (http://www.cau.org.in/). I came across the news item in http://bundelkhand.in/portal/NEWS/Centre-clears-an-AIIMS-like-institute-for-Jhansi-Bundelkhand that says "the Union agriculture ministry had given the go-ahead to develop a central agriculture university in Jhansi". So a similar one can be pushed for Kalahandi.

4.5 Special funding for proposed state Universities in KBK: The Odisha government higher education task force has recommended new state universities to be made in Jeypore (Koraput), Bhawanipatna (Kalahandi) and Balangir. We request that the central government give a one time 50 crore grant to each of these proposed universities so that they can be started at the earliest.

 5. Job Centers:

• Wagon factory in Kalahandi.
• Tourist infrastructure around Gandhamardan hills and Harishankar.
• Tourist infrastructure around Kolab dam and tribal hamlets of Koraput.

6. KBK+: In addition in the KBK+ district of Kandhamal a branch of Indira Gandhi National Tribal University (IGNTU) can be realistically pursued and achieved.

Final Word: Please make additional suggestions. But be realistic. Also, note that here we are talking about what to pursue with the central government.

Following are excerpted from Pioneer reports at here and here.

• Vedanta Aluminum would enhance its refinery, smelter and power plant capacity with a total investment of `37,440 crore. Vedanta Aluminium company would enhance its production capacity Langigarh unit to six million tonne from existing one million tonne. The company would also enhance its production capacity of Jharsuguda aluminium unit to 1.6 million tonne from existing 0.25 million tonne per annum. Similarly, the company would also increase power generation capacity of its CPP (captive power project) to 1,350 mega watt from existing 675 MW at Jharsuguda.
  
• NSL Nagapatnam’s `8,900 crore investment plans in the State. The company would set up a 1320 MW power plant in Angul district at a cost of `6,600 crore, a 5,000-tonne sugar refinery at Paradip with an investment of `800 crore and a textile and spindle mill with 3 lakh spindles at a cost of `1,500 crore at Rayagada.
• ACC Cement’s `1,850 crore three MTPA cement project along with a 50 MW CPP in Malkangiri district 
• Bhusan Steel’s `3,000-crore steel park at Meramundali.
• SPI Ports to set up a 1,320 MW (2 x 660 MW) power plant at Mahakalpada in Kendrapara district at an investment of Rs 6,600 crore.
• KU Pvt Ltd would invest Rs 7,260 crore to set up a power project with 1320 MW power generating capacity at Thakurpur in Sonepur district.
• Rohit Ferro Alloys would spend Rs 2500 crore for setting up a 67.5 MW captive power plant at its 0.6 MTPA stainless steel project at Kalinganagar in Jajpur district.
• Aditya Aluminum to enhance the capacity of its Rayagada alumina refinery to 1.5 MTPA from the present 1 MTPA, and Jharsuguda smelter from 0.26 MTPA to 0.36 MTPA with an total investment of Rs 11,000 crore,
• Jindal India is proposing to enhance the capacity of its power plant from 1,200 MW to 1,800 MW with a total investment of Rs8, 000 crore.
• Ind-Bharat is proposing to expand its power project capacity from 700 MW to 1320 MW by adding a 660 MW unit with a total cost of Rs 3300 crore.
• Kalinga Energy, which is now shifting its site from Babuchaki in Sambalpur to Sodamal in Jharsuguda district has also got green signal to enhance the capacity of its power project from 1000 MW to 1320 MW with a total cost of Rs 6500 crore.

Update: The Odisha CM is making the case that five more districts be included in the list of naxal-hit districts that should be targeted for infrastructure development schemes. Those are: Koraput, Mayurbhanj, Sundergarh, Keonjhar and Kandhamal.

Following is the content of an email that summarizes a point that I have tried to make over the last couple of years. It seems the planning commission has started thinking along the same lines.

The nations attention at this time seems to be focused on the Maoist issue. While the law and order steps are probably necessary, this is a good time to recall the lessons that India learned (and that seems to have worked) in J& K and North East.

What is that lesson?

The lesson is regarding what worked in the North East and J & K is not just policing but the  investment of vast amount of funds towards development programs there.

A similar approach at the same level of funding needs to be taken for the areas that are affected by the Maoist problem.

What is the level of funding for North east and J & K?

Following is extracted from the attached document from the Ministry of Home GOI.
(I can not locate it in their web page now, but I have uploaded the copy I had downloaded from their site to the site http://www.orissalinks.com/bigfiles/internal%20security.pdf )

• PM’s reconstruction plan for J&K announced in Nov 2004  is for Rs. 24,000 crores.
• 1,83,018 crores is allocated for economic development in the North east.

In contrast,  for the Maoist affected areas  in the states of Andhra Pradesh, Bihar, Chhatisgarh, Jharkhand, Maharashtra, Orissa and West Bengal; only Rs. 3007.50 crores were spend via Backward Districts Initiative and Rs. 1930.52 crores via Backwards Region Grant Fund.

What is the impact?

J & K and North east vs Maoist affected areas in terms of violence:

• Militancy in J & K resulted in the killing of 1,883 civilians and 789 security forces personnel.
• The militancy-related fatalities in the north-east were 1,909 civilians and 361 security forces personnel."

In contrast 2,281 civilians and 821 security forces personnel were killed between 2004 and 2008 (up to August 31) due to Maoist activity.

Thus there were more civilians and security forces killed between 2004-2008 due to Maoist activity than each in J& K and North east.

I think India needs to pay as much attention (in terms of money and development programs) to the Maoist affected areas as it is paying to J&K and North East.

Moreover, the Maoist affected areas are much poorer, much less literate, and overall more backward in all parameters than J&K and the Northeast. While J&K and Northeast are in the physical frontier of India, the Maoist affected areas are the third frontier. One must note that many countries have had more lives lost in fighting or other uphevels in their interior than in fighting an extrenal enemy. Following are some examples:

In US, 625 thousand people died during the civil war which is more than the number that died in World war 1 and 2 put together. (see http://en.wikipedia.org/wiki/United_States_casualties_of_war )
In Russia/Soviet Union, the number of deaths estimated are as high as 20 million deaths during Stalin’s regime, 9 million during civil war 1917-1922, and 10 million during the second world war.    (See http://users.erols.com/mwhite28/warstat1.htm )
• In China, the number of deaths is estomated at 2.5 million during their civil war (1945-1949), 40 million during Mao’s regime, and 10.45 million in the Second world war. (See http://users.erols.com/mwhite28/warstat1.htm )

Thus, just because the Maoist affected areas are in the interior, they should not get less development related attention than J&K and Northeast. As the above numbers show, trouble in the interior can be actually worse than trouble in the physical frontier.

In other words, it would be prudent for GOI to take the Maoist affected areas of India as seriously as J&K and Northeast, and perhaps even more seriously, as they are more backward than J&K and Northeast and put as much or more development resources in those areas.

Currently train lines, roads, airports (in general connectivity) to J&K and Northeast are being fast-tracked and sometimes labeled as National projects. A similar approach to connectivity (rail, roads, etc.) and other development in the Maoist affected areas of India (that includes KBK, Kandhamala, Sudnergarh, Mayurbhanj etc. of Orissa) must be taken urgently. 

Dear Sirs: I would like you to use the above numbers, recall the lessons learned from J & K and North East and take a balanced approach to the maoist problem; Law and order aspects combined with development programs at the same scale as in J & K and Northeast.

There is now an indication that the planning commission has started thinking along the same lines.Following is an excerpt from a report in Indian Express. 

The Plan panel would be ready with the final draft of the Integrated Action Plan (IAP) for development

of the 35 naxal-hit districts spread over nine states in a month’s time.

“The Commission should be ready with the final draft of IAP in a month as consultations with organisations like civil societies are still on,” Member Planning Commission Mihir Shah told reporters after a meeting on IAP with non-government organisation here.

… Shah said funding under the IAP would be done for three years. There are suggestions from civil societies that in the naxal hit districts, Panchayti Raj institutions like Gram Sabha and Panchayat should be used for inclusive development.

… Last week, Ahluwalia had indicated that the panel is working on Rs 13,742 crore financial package for these 35 districts.

He had also disclosed that the proposal came from the Cabinet Committee on Security and would be for a three-year period for infrastructure development.

… The commission is also looking at the possibility of implementing the PESA (Panchayats Extension to Schedule Areas) Act, 1996, to give tribals the right to use minor forest produce.

Parts of as many as nine states — Andhra Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Orissa, Uttar Pradesh and West Bengal

— are in the grip of Naxalism.

Among these 35 districts five are in Odisha. They are: Malkangiri, Rayagada, Gajapati, Sambalpur and Deogarh. The Orissa government is pushing to include Koraput in that list.

Although this is a good start, I think much more needs to be done and to the larger area that I refer to as the third frontier. Perhaps a larger plan can be made for the 12th plan starting 2012. The approach to the 12th five year plan could be a good starting point to submit our feedback. I think the package of Rs 13,742 crores for 35 districts is a good start but not enough. The amount has to be much higher and the number of districts need to be more. In Odisha (see forest map) Kandhamala (51.51% ST), Mayurbhanj (57.87 ST), and Nabarangpur (55.27% ST)  (Keonjhar and Sundergarh also have high ST percent, but they are being developed for other reasons anyway) need to be included and the infrastructure to be fast-tracked must also include Railway lines such as Khurda-Balangir line and the Chakulia-Buaramara line.

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.

Following is from a report in Financial Express.

Work on acquisition of land and obtaining of clearances for the twin-site Rs 9,000 crore RSB Metaltech Ltd’s project involving bauxite mining and setting up an alumina refinery unit at Rayagada and a 0.7 million tonne per annum (mtpa) smelter unit plus a 500 MW power plant to be set up at Kamakshyanagar in Dhenkanal in Orissa, are progressing satisfactorily.

… The company intends to transport processed alumina from its Raigada plant to Kamakshyanagar in railway rakes.

“Work on land acquisition as well as environmental clearance has already started; the Orissa government has given final clearance to 1,520 acres of land for the Raygada project and 1,546 acres for the Kamakshyanagar project”, said RSB Metaltech managing director S K Behera, speaking to FE.

The company had applied to the state government for around 3,000 acres of land for each of the sites.

Initial environmental clearance for the project, as well as clearances from the railways, and for water for the plants from the state government has also been obtained.

…  as per the MoU with the Orissa government, RSB Metaltech has entered into a joint venture with Orissa Mining Corporation (OMC) for bauxite mining and an alumina refinery at Rayagada.

Simultaneously, the company is to set up a 0.7 mtpa capacity smelter plant at Kamakshyanagar which would feed aluminium metal to the 50-odd downstream units that are to come up and which would be manufacturing construction products, auto components like cylinder head, cylinder block, gear box, clutch housing, etc.

Both the Kamakshyanagar and Rayagada units which are expected to become fully operational in five years’ time would together be able to give employment to around 12,000 people, said Behera.

“We will like to invite certain companies to use the hot metal (aluminium) available with us, who will immediately process it (the hot metal) to make auto components and other products and thus save on cost”, said the RSB Transmissions managing director, adding that while some of the downstream units would be fully owned by the RSB group, several others including a number of export-oriented units would be on joint venture basis.

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.

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

JK Paper plans to invest around Rs 1,500 crore to set up a new pulp mill at Rayagarh Rayagada, Orissa. “The amount would be raised through a mix of debt and equity in the ratio of 1.5:1,” JK Paper MD Harsh Pati Singhania said. He said the company will raise the money through external commercial borrowings, debt instruments such as foreign currency convertible bonds apart from internal accruals. The new pulp mill will come up with a capacity of 2 lakh tonne per annum and paper a capacity of 1.5 lakh tonne per annum. It is likely to be commissioned in the second half of 2012.

For the new plant, the company will also ramp up its captive power unit from existing 35 mw to 55 mw.

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 PIB http://pib.nic.in/release/release.asp?relid=54712.

Minister of State (Independent Charge) Shri Jairam Ramesh received a large number of representations in regard to the project for bauxite mining by the Orissa Mining Corporation (OMC). In a statement issued here today he said the projects are now being examined in the Ministry for approval or rejection so that there is no ambiguity and project proponents do not misuse the ‘in-principle’ approval. 

The following is the text of Shri Jairam Ramesh on the issue of bauxite mining in Orissa: 

“I have been receiving a large number of representations in regard to the project for bauxite mining by the Orissa Mining Corporation (OMC) through Vedanta, a private mining company in Kalahandi and Rayagada districts of Orissa. The total amount of forest land proposed to be diverted is 660.749 ha., of which around 353.14 ha is in the Niyamgiri reserved forest. Concerns have also been raised on the impact that this project will, interalia, have on livelihoods of tribal communities. 

The project application was received in the Ministry of Environment & Forests (MoE&F) on February 26, 2005. The MoE&F gave ‘in-principle’ approval for this project on December 11,2008 under the Forest Conservation Act,1980. This ‘in-principle’ approval is to be converted to a final approval after the fulfillment of stipulations contained in the ‘in-principle’ approval. 

As the representations started coming in, on August 6, 2009 the MoE&F asked the Regional Chief Conservator of Forests, Bhubaneshwar to investigate complaints that project activities have started even without the final approval of the Central Government in violation of the Forest Conservation Act, 1980. The site was inspected and the site inspection report was submitted on August 16,2009. The site inspection report found that construction activity had begun in the non-forest revenue land. Technically this is not a violation of the law but it is a violation of the guidelines issued by the MoE&F which says that when a project involves non-forest and forest lands, construction in the non-forest land should not begin without clearance for activity in the forest land itself. A letter has been issued on November 25th,2009 to the Orissa Government asking for an explanation as to how the violation of this guideline has been permitted. 

On August 3, 2009, the MoE&F had issued a binding guideline to all State Governments that application for diversion under the Forest Conservation Act, 1980 would be considered only after all due processes contained in the Scheduled Tribe and Other Forest Dwellers (Recognition of Rights) Act, 2006 have been fully and satisfactorily completed. A letter was subsequently issued by the MoE&F to the Orissa Government on November 3, 2009 directing the State to comply with the provisions of the Scheduled Tribe and Other Forest Dwellers (Recognition of Rights) Act, 2006 and provide evidence for the compliance before the Centre could examine conversion of the ‘in-principle’ approval to final approval. The reply of the state government is awaited. In addition, another site inspection team is being sent in the next one week to verify fresh allegations of violations of the terms of the ‘in-principle’ approval under Forest Conservation Act,1980. 

The new policy of the MoE&F does away with the concept of ‘in-principle’ approval. Projects are now being examined for approval or rejection so that there is no ambiguity and project proponents do not misuse the ‘in-principle’ approval.” 

KP/