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

for Pramod Bhasin, the Capital city of Orissa is emerging as an important location for the outsourcing industry.

The President and CEO of the global leader in Business Services and Technology Solutions, Genpact has pinned high hopes on Bhubaneswar as there is strong infrastructure, good talent and tremendous government backing.

Mr.Bhasin was speaking on the occasion of ground breaking ceremony for the upcoming Special Economic Zone (SEZ) on 21 November.

Graduates having command over English have fair chance of getting into Genpact, said Mr.Bhasin.

Chief Minister Mr. Patnaik laid foundation stone for the SEZ.

Spread over 12.145 acres, the commissioning of this SEZ facility will provide 5,00,000 square feet office space to provide seat for over 4000 employees.

Following is an excerpt from a report in the Statesman.

Spread over an area of 12.145 acres, the commissioning of the SEZ facility will take place in three phases between 2009 and 2011. It will provide 5,00, 000 square feet for 4,000 employees of Genpact. The development of such facility in Bhubaneswar will make it the 7th city in operation for Genpact in India.

Genpact, which has been ranked No. 1 on the 2007 list of top 15 ITeS-BPO companies in the country by NASSCOM, has recently been rated among the top three BPO employers for 2007 in Dataquest-IDC E-Sat (Employee Satisfaction) survey.

Following is an excerpt from a report in the New Indian Express.

After successful completion of first-phase land acquisition for the SEZ, preparations are on to start the second phase. In the first phase, 250 acres, including 48 acres of government land, have been acquired.

Another 250 acres would be acquired in the second phase likely to start by this year-end. M/s Saraf Agencies Pvt ltd, a Kolkota-based firm, will set up the SEZ with Russian collaboration.

The firm has been pursuing this project for the past 10 years because of the high mineral content in beach sand along the coastline.

However, the agitation against the proposed mega steel plant by Tisco delayed the decision of the firm. The firm has also started its efforts to search partners to set up its proposed titanium dioxide plant near Orissa Sands Complex (OSCOM), a unit of Indian Rare Earths Ltd near Chatrapur.

The plant will facilitate setting up of the SEZ. The company has signed an MoU with two Russian state-run agencies for the proposed SEZ that will process titanium from ilmenite ore.

The MoU was signed during the visit of Russian president Vladimir Putin to India and the project will entail an investment of $250 million (around Rs.1200 crore).

The two Russian entities that will take part in the project are Vnesheconombank or the Bank for Foreign Economic Affairs and JSC Technochim Holding, which is a St. Petersburg-based public sector undertaking.

During recent visit of Prime Minister Manmohan Singh to Russia, the Russian premier Viktor Zubkov informed that his country is ready to actively participate in development of the SEZ as part of the efforts to boost bilateral economic ties.

While the Russian firms will have a 55 percent stake in the project, there will be financial participation from them.

They will provide the technology to process titanium from ilmenite ore. The Indian government plans to use this project to set off part of the debt in the rupee-rouble account and will, therefore, invest $125 million in the SEZ.

Saraf Agencies will pump Rs 175 crore into the project and the remaining amount will be raised as loan. The company received an in-principle approval for the SEZ on August 23 last year. The ilmenite ore will be provided by OSCOM.

Following is an excerpt from a report in Telegraph.

… The tsunami travel time atlas, published by IIT, Kharagpur, has identified Orissa coast to be prone to tsunami, said state disaster management minister Manmohan Samal.

… 328 villages situated within 1.5km of the coastline in six coastal districts have been identified as tsunami-prone, said the minister.

While 63 villages of Balasore district have been identified as tsunami-prone, 41 villages in neighbouring Bhadrak district have been enlisted as vulnerable.

Similarly, 64 sea-side villages of Kendrapara district, 28 coastal villages of Jagatsinghpur district, 88 villages of Puri and 44 villages of Ganjam district have been identified as prone to tsunami.

…Giving details of National Tsunami Early Warning System, the expert said Orissa was covered under the network.

Chief minister Naveen Patnaik  …  We have identified tsunami-prone villages and habitations and are taking steps to increase awareness of the general public on tsunami safety tips,” he said.

Meanwhile, the Orissa State Disaster Mitigation Authority (OSDMA) had organised a workshop on October 30-31 to train the trainers on tsunami. Around 30 high school teachers teaching and science were sensitised.

Following are excerpts from a report on this in Business Standard.

National Aluminium Company (Nalco), the largest producer and exporter of aluminium in the country, plans to set up an aluminium park at Angul to boost consumption of the metal within the state.

Most of the aluminium produced by the public sector blue chip company, at present, is either exported or sold outside the state for further value addition. Out of the average 30,000 tonnes of aluminium produced per month by Nalco’s smelter at Angul, 28,000 tonnes are dispatched outside the state, with only 2,000 tonnes being consumed in the state.

The proposed aluminium park is expected to increase the metal consumption within the state to at least 20,000 tonnes per month, says CR Pradhan, chairman and managing director of Nalco.

He said both national and international aluminium players would be invited to set up downstream units in the proposed park to facilitate more metal sales within the state. Nalco has approached the Industrial Infrastructure Development Corporation of Orissa (IIDCO) to acquire about 1,000 acres to be handed over to it for the purpose.

Meanwhile, Nalco’s plan to set up a second smelter plant along with a captive power plant in Orissa depends on the company being allotted additional bauxite mines and coal block for the project. …

Allaying all apprehensions regarding delay in the ongoing expansion project of Nalco, both at Angul and Damanjodi facilities, he said they would be completed within stipulated time.

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

The Vedanta group has been entrusted by the Beach Development Committee to illuminate the city beach. In wake of failure of Government and NGOs to provide weather sustainable lights in the five kilometre stretch of beach along the city’s coast even after spending about Rs 1 crore, the committee had requested the Vedanta University project officials to take up the work. At the Saturday meeting of the committee, the officials of Vedanta had agreed to the proposal.

Following is an excerpt from a report in Times of India.

“We have received a proposal from Navayuga group for a 12 MTPA capacity unit,” state secretary, steel and mines, U P Singh told TOI on Monday, confirming the development. Official sources disclosed that the Navayuga group is interested to set up a port-based steel facility, preferably at Astaranga in Puri district.

Chairman of Navayuga Engineering Company Limited ((NECL) C V Rao had earlier this year made a presentation before chief minister Naveen Patnaik about the groups plans to develop a port at Astaranga on a build-own-operate-share-transfer (BOOST) basis with an investment of Rs 6000 crore. But the company’s sudden keenness to make a foray into the booming steel sector, that too in a big way, has come as a surprise to many.

The group’s proposal for developing a port is in the final stages of getting approval, but the state government is yet to examine its application for setting up a mega steel plant, pointed out an official.

The land and water requirements as well as raw material linkage have to be studied. The proposal will be placed before the Single Window Clearance Authority headed by the chief secretary before a decision is taken, the official added.

The company had earlier requested the state government for 5000 acres of land for its port complex and other projects, including a 1320 (2 x 660) mega watt captive power plant, fly ash brick unit and desalinization facility.

The group had also suggested the government for construction of a 50-km railway link between Khurda Road to Astaranga via Sakhigopal at an investment of Rs 400 crore through the public-private-partnership mode, sources said.

Following is an excerpt from a report in Business Standard on this.

Arcelor-Mittal’s proposed Rs 40,000 crore, 12 million tonne per annum greenfield steel project in Orissa has made headway with the start of the land survey at the proposed site in Patna tehsil in the Keonjher district.

While the company has launched the survey in 16 villages in the area, it has completed the process in four villages. The company has also submitted a land acquisition plan to the state government.

Meanwhile, though the company has finalised a rehabilitation and resettlement (R&R) plan for the project-affected people, it is waiting for the land clearance from the state authorities to submit it to the government.

“We have our R & R proposal ready. Once the state government gives clearance of land, we will submit the proposal”, said Malay Mukherjee, member, group management board, Arcelor-Mittal.

Talking to mediapersons after a meeting on the progress of the project chaired by Chief Secretary Ajit Kumar Tripathy, Mukherjee said about 70% of the detailed project report (DPR) work for the Keonjhar plant is complete. The report is expected to be finalised by June 2008, he added.

M N Dastur & Company is preparing the DPR. The scope of the DPR, among other things, includes captive mining facilities, captive power supply, water supply and other infrastructure facilities like effluent disposal, environment and township for the company�s employees. …

While the company has got a coal block along with five other companies in Rampia and dipside Rampia, it is exploring the possibility of forging partnership with a mining company to source iron ore till it is allotted captive mines. It has recently applied for a joint partnership with the state- owned Orissa Mining Corporation (OMC) in this regard. …

While the total reserves in Rampia and dipside Rampia is estimated at about 600 million tonne, Arcelor-Mittal is expected to get about 85 million tonne.

Mukherjee said a 10-member team of Arcelor-Mittal is now finalising the technical specifications of the steel plant.

Following is an excerpt from Pioneer on this.

The State Government has decided on setting up of a Rs 120-crore sugar factory in the private sector in Koraput. With the availability of water from river Indravati and its tributaries, the sugarcane cultivation has been a big success in the blocks of Borrigumma, Kotpad and Jeypore in Koraput district and Nandahandi, Tentulikhunti, Nabarangpur and Kosagumuda blocks in Nabarangpur district. The cane is grown in about 8,000 hectares of land in the two districts per annum and over 3,000 trucks of sugarcane are produced. As there is no sugar factory in the region, farmers depend on the sugar factory at Balangir to sell their produce. Now, a sugar factory project, to be set up near Aunli in Koraput district by Indravati Sugar Company, has been cleared by the Government. The factory is expected to come up by the next crop season.

Following is an excerpt from a report in the Business Standard.

ICICI Group’s eastern regional hub for back office operations, coming up at Chandaka industrial estate in Bhubaneswar, will be commissioned in 2009. This is one of the four regional hubs planned by the group.

“We expect the first phase to be commissioned in the next 18 to 24 months,  and, hopefully, the hub will be commissioned by the summer of  2009,” K V Kamath, managing director and chief executive officer, ICICI Bank, said.

Talking to newsmen after the bhoomi pooja (ground breaking ceremony) for the proposed hub, Kamath said the second phase is scheduled to be commissioned a year later if every thing goes right.

He said the hub will have a built-up area of 1.25-1.5 million square feet in the first phase, and will accommodate about 15,000 people.

The group had earlier signed an MoU with Utkal University and KITT for offering skill-enabling and vocational courses in the domain of banking, finance and insurance.

Kamath said about 10,000-12,500 people will be employed in the Bhubaneswar hub in phases.

Following are some excerpts from that article.

… Bhubaneswar already ranks very high on the software exports frontwith Rs 732 crore completed in 2006-07, Bhubaneswar was 9th in the pecking order among Indian cities. Says Vishal Dev, director, IT, government of Orissa, “Till last year, we were the largest city in the whole of Eastern India on software exports, before being overtaken by Kolkata.” And, now have ambitious plans to reach $1,000 mn in software exports by 2012.

t is also one of the few cities in the country that boasts of the presence of the Big Four of Indian software exports. While Infosys and Satyam have been present in the city for quite some time and have 3,000 and 1,000 people respectively, TCS, after starting last year, has recruited 300 people. Wipro, too, has started campus construction. Add to this, Genpact, IBM Daksh, and ICICI, which are starting their eastern region BPO hubs, and it becomes obvious why Bhubaneswar today commands respect as an IT/BPO destination. The picture would not be complete without mentioning the arrival of MindTree Consulting, Aricent, Contiloe Films as well as Perfectus, which plan a 5,000 seater IT/BPO unit.

The arrival of these leading players also indicates how Bhubaneswar has come of age on both infrastructure as well as manpower fronts. The city today boasts of four SEZs: the earliest one, the 350 acre Infocity is already full; the first phase of the DLF Infopark work is in progress, work is starting on an integrated IT park, known as Knowledge Park, while sanction has been given to the Mancheswara Industrial Estate (29 acres).

Manpower
Such little details prove that while the IT juggernaut is in motion, Bhubaneswar is totally conscious of the need to develop a social infrastructure conducive to fostering IT. That explains why the state ranks high in terms of providing manpower supply; that with forty-five engineering colleges and forty-three MCA colleges, it could do so, is a no-brainer. But, while earlier this supply was mainly migrating elsewhere, it is now getting populated in Bhubaneswar itself.

That fact that technical education is a major priority of the state government has definitely helped. While engineering colleges affiliated to nine of the universities in the state were earlier brought and standardized under the aegis of the Biju Patnaik University, the government is now setting up an IIIT, where it will start with an M Tech program in order to create a crop of new qualified faculty. Also on the anvil are plans to start NISER and a campus of IIT Kharagpur. The Vedanta Group and Sri Sri Ravishankara Vidya Mandir Trust are also setting up technical colleges in the city.

Others in the Game
While the larger companies in the city registered an overall growth of 58% in 2006-07, SMEs like JSS witnessed 120% growth. JSS Consultancy is a domestic BPO playerit handles Citibank for the entire eastern region, as well as other major clients like Tata Indicom, HSBC, Citi Financial, HDFC Standard Life, and Centurion Bank for Orissa.

Its not only about the local SMEs; domestic IT consumption is also on the rise in the city. Reasons are not too far to locate: while Orissa today boasts of steel plants like Jindal, Bhushan, and Neelachal, very soon it will also have Posco, Arcelor-Mittal, and Tata Steel, making it probably the global steel hub. Add to this, power plants like the Jindals and aluminum plants like NALCO, Hindalco, and Sterlite. Paradip Port and the airport in Bhubaneswar are being modernized while the East Coast HQ is finally coming up next month.

Rajesh Dora, MD, Printlink, one of Bhubaneswars largest resellers and SIs, agrees to this. He also informs that other than the steel sector, even the engineering colleges and institutions like OUAT and Institute of Physics are significant consumers of IT.

The Future Sunrise

The experts, too, have endorsed a bright future for Bhubaneswar. According to McKinsey, Orissas economy is poised to grow at 7.1% over the next 10-12 years, the highest in Eastern India. Morgan Stanley comments that Orissa shall emerge as a center for metals business in India and attract investments of up to $3040 bn over the next five years. Even if these predictions are partially met, the impact of IT would be enough to create waves in the Bay of Bengal. The CMIEs forecast that Orissa accounted for 15% of total investments in hand in the country in 2006, and the World Bank ranking Bhubaneswar 5th among cities in ease of doing business within India further endorses the seal of approval. An oft-neglected, but very crucial role in this IT growth of the city has been played by the government. While on the e-Governance front, the state has won awards for two consecutive years (for the Shishu locator program and the OCAC website), a proactive government with an urbane and suave CM at the helm has created a conducive environment for IT. The stability of the political regime too has helped. A confident Naveen Patnaik proudly proclaims, “Bhubaneswar, indeed, is the future sunrise of the IT industry.”

Following is an excerpt from a report in Pioneer.

Focusing on the growing importance of Vani Vihar and Lingaraj Temple Halts as serving satellite stations to the main Bhubaneswar Station, East Coast Railway has provided improved amenities at the station for the benefit of commuters.

The halts have been improved with full length for stoppage of longest trains, improved waiting halls, granite benches, pipe water supply, decongested circulating areas and facelift to both the passenger halts. ECoR general manager SS Khurana, accompanied by other high railway officials, inspected these passenger halts on Saturday.

The largest works to be completed in the current financial year are foot over-bridge at Lingaraj halt, elevating passenger halt level from rail level to high level at Vani Vihar, extension of high-level platform at Lingaraj and providing an ATM counter at both halts.

New Indian express also reports on this with the headline: “Passenger halts to be upgraded to suburban stations.”

Following is an excerpt from a report in Pioneer.

The Kalinga Stadium Yoga Kendra, which was started here at the instance of Swami Ramdev, celebrated its second anniversary on Saturday.

… Yoga, which has taken its birth in India, has now become popular worldwide encompassing all regions and religions.

Yoga guru Sudhansu Adhikari said that in the yoga centre people not only get relief from diseases but also learn the art of living in peace and harmony in society. In the coming days, he hoped, the yoga activities would not be limited to the posh areas of the city but would be extended even to the slums. Many chronic diseases like high blood pressure and diabetes, insomnia and obesity are cured through yoga.

The kendra members narrated the benefits they have derived from practising yoga.

Following is an excerpt on this from the Pioneer.

The Jagannath Temple administration would develop a new state-of-the-art passenger bus terminal at an estimated cost of over Rs 100 crore on 42 acre of its own land located near the Samagara village on the outskirts of the town, said SC Mahapatra, the temple’s chief administrator at a Press meet on Thursday. Within six months the temporary bus stand operating at Talabania would be shifted to the new place. Primary infrastructure like fencing, provisions of basic amenities and security arrangements would be put on place before the scheduled shifting, Mahapatra said. A pilgrim shelter for 500 pilgrims would be constructed in the complex equipped with eateries and shopping centres. Two crore would be spent now for the purpose, said Mahapatra. Besides Rs 35 crore would be spent for the development of the existing parking place functioning at Jagannath Ballav alongside the Badadanda (Grand Road). NTPC would bear the cost of the development, he said. Among other things the temple plans to include resumption of temple kitchen and Ananda Bazaar (Mahaprasad selling and dinning place in the temple complex) reconstruction work after the Kartik Brata and installation of a donation collection box at the premises of Jaydev Bhavan in Bhubaneswar.

Following is an excerpt from a report in Hindu. (Thanks to Deba Nayak for the pointer.)

… the poor people of the mineral-rich tribal population dominated district of Keonjhar are gearing up to welcome the Mittals and the tribe.

In a dramatic development, Kendujhar Nagarik Manch, the five-year-old district citizens’ forum, in its meeting on Friday resolved to host a symposium at the district headquarter on the need for industrialisation on December 2 to deliberate its benefits for the people of the district. “About 300 people including politicians, opinion makers, academicians, social activists and media persons would be attending it,” forum secretary Mr.Himansu Kuanr told The Hindu.

Industrialisation “We would welcome industrialisation with value addition,” he stated and added that the steel giants like the Mittal would be using the latest technology that would ensure minimum pollution. Sloppy land would be acquired for setting up of the plants and the packages being offered would also benefit the land losers, he said.

Some political parties are misguiding the people by spreading mis-information on the projects and thereby arresting development of the region through industrialisation, the forum’s spokesperson felt.

Mr.Kuanr further pointed out that in the past four years, minerals worth about Rs.36, 000 crore have been exported from the district without rendering any direct benefit to the people of the district. “As Haryana farmers have been amply benefited by industrialisation in and around Delhi, the farmers of the district would be similarly be benefited from industrialisation,” he reasoned.

Following is an excerpt from a report in New Indian Express.

In Padmapur its largely unorganised labour which manufactures fire crackers. Though called the Sivakasi of Orissa, this cottage industry is yet to get recognition here as this year only four to five families were issued fireworks making permit. This despite the fact that almost every household in the village has been into the business for several years.

The dedication to manufacture reflects in the fact that every member of the family, including children contribute their mite.

About 2500 unorganised labourers of more than 500 families belonging to both Hindu and Muslim communities of Padmapur and its adjacent Trilochanpur, Mahajanpur, Purbakachha, Madhyakachha, Campati, Hatikana, Bahadalpatana and Jagannathpatana manufactured crackers to earn their share of profits.

Being a seasonal occupation most of the children of these village bunk classes from Ganesh puja to help their family members and add to the family income.

Following is an excerpt from a report in Business Standard.

Mittal Steel India, which is in the process of readying its rehabilitation and resettlement (R&R) package for its 12 million tonne Orissa project, will consider issue of shares and land-for-land as part of its compensation to land-losers.

Sanak Mishra, chief executive officer, Mittal Steel India said, “The Orissa government’s R&R policy includes issue of shares as a means of compensation and if the people want it, we will do it. But that will happen at the implementation stage and we have to see the legal standpoint and the mechanism.”

Mittal Steel hopes to finalise the draft R&R package and make presentations to the Orissa government by month end. “If the Orissa government wants to incorporate something, we will look into it.”

The state government’s policy mentions convertible preference share as a compensation option. It says that at the option of the displaced family and subject to the provisions of relevant laws in force, the project authority could issue convertible preference shares or secured bonds up to a maximum of 50 per cent out of one-time cash assistance.

“There were also other physical issues being considered like alternative land for the displaced people. We will, however, have to assess how much land is required,” said Mishra.

… After finalising the scheme in consultation with the state government, Mittal Steel plans to embark on a communication programme with the land-losers.

The project site is a mix of government and private land. The 12 million steel plant at
Keonjhar would require around 8,000 acres, which includes 1,000 acres for the captive power plant and 1,000 acres for the township.

Mittal Steel is also in dialogue with the Orissa for iron ore mines. Various options are being explored, including arrangement with the Orissa Mining Corporation (OMC), a state-owned mining corporation.

“Talks are at an exploratory stage and it was too premature to talk about it. An arrangement with OMC could enable Mittal Steel to go through captive iron ore mine allocation process, which was one of the stumbling blocks for the company’s Jharkhand project,” Mishra added. Mittal Steel requires around 600 million tonnes of iron ore over a 30-year period for its steel plant.

Following is an excerpt from a report in Times of India about this.

… “We have received a proposal from Arcelor-Mittal, requesting for an arrangement with OMC,” confirmed a senior officer. “The government is exploring the possibilities and details remain to be worked out. It could mean a long term agreement or a joint venture between the two parties,” the officer told TOI. The government, sources said, has set up a four-member committee headed by chief secretary to examine the proposal’s feasibility and chalk out the draft terms and conditions.

Sources said Arcelor-Mittal is yet to submit any application for prospecting lease or mining lease for any iron ore deposits, but evidently does not want to take chances. Hence, it has proposed a tie-up with the state-owned body to serve as a back-up. “The company would no doubt go for captive mines. The pact with OMC would ensure an alternative raw material arrangement for the company’s project,” sources pointed out. Orissa has so far inked pacts for 46 steel facilities, sparking doubts over iron ore scarcity in future.

Arcelor-Mittal, which has signed an MoU with the state government to set up a 12 MTPA steel plant at an investment of Rs 40,000 crore, is the first major player to make this kind of a proposal. Some small steel units had earlier sought to enter into raw material supply agreements with OMC, apparently to ensure a steady flow of iron ore and offset price fluctuations. Some steel plants, which have reached production stage, are buying ore from the market at higher prices, sources disclosed.

We earlier wrote about this in http://www.orissalinks.com/orissagrowth/?p=92  and http://www.orissalinks.com/orissagrowth/?p=69. Following is from a news report in New Indian Express.

As part of its major activity on the silver jubilee year, Chandaka Dampara Sancturay authorities have geared up on the eco-tourism front with more community involvement plans.

The sanctuary has seven tourist routes through which the nature lovers can have a glimpse of some of the 600 plant species, conduct floristic studies and watch the animals including elephants and leopards. The tourist routes of 20 and 30 km length are permitted with vehicles and guides so that the visitors can discover the charm of the wild world.

The routes touch places like Godibari, Kumarkhunti, Kheluachua, Mahuriabadi, Pitagadia, Deras, Ambilo, Saurabila, Mantu hilltop, Chandinimundia, Kuasara and Bhimakhal. But plans are on to develop five ‘nature trails’ in the sanctuary involving Deras bamboo hut-Chandinimundia and back, Deras- Gadhari-Jhumka and back, Jumka- Kheluachua-Dantaria foothills and back, Jhumka-Gadhari and Deras along the reservoir and Chulimundia-Bhimakhal-Kuasara and back, says DFO Akshaya Pattanaik. The trekking inside the sanctuary, including eco-walk, cycling and nature education trips for schoolchildren, would be taken up commercially this year. Also the WWF-India will help in getting literature on select species of flora and fauna of the sanctuary which would be supplied to the children free of cost, he added.

Watch towers with two suits each would be arranged at Kumarkhunti and Ambilo for the trekkers who want to stay put in the sanctuary to enjoy nature from close quarters. The watch towers at Kochilaberena, Mantu hilltop and Pitagadia are also being spruced up for the purpose, the DFO said.

All the eco-development activities are being executed with the active support of ‘‘Bhagabatipur- Manee Sahi Eco-Development Committee’’ at Deras. The ecodevelopment committee is also involved in keeping the environment of the sanctuary clean, especially at tourist spots and it would also get a share of the money earned through these eco-development activities so that the members can continue their good work, Pattnaik adds.

Besides, there are three revamped picnic points near Deras forest rest house which can be used for recreation, amusement and relaxation along with the nature education and to ease off stress in the lap of nature.