___________

Myiris reports that the Mumbai Based company HCC has reported receiving a letter of acceptance from TISCO. Following is an excerpt from their report.

Mumbai-based Hindustan Construction Company (HCC) said Thursday that it received a letter of acceptance (LoA) from The Tata Iron & Steel company, Jamshedpur, for execution of civil works for Kalinganagar project in Orissa. The value of the contract is Rs 1,677.6 million.

Dharitri reports that Baji Rout bridge across Brahmani river connecting Mandara Ghat of Gandia block of Dhenkanal district with Nilakanthapur of Bhuban block is in the process of being built with the help of NABARD which has already approved a loan of 17.71 crores. The process to float a tender is on and soil tests etc. have been carried out.

• Balasore and Baripada lobbying for medical colleges
• One year P.G. Diploma in Banking and Insurance Management: From Utkal University in collaboration with ICICI bank
• Careerpoint claims that 21 out of 55 succeeded in IIT JEE
• A pre-advertisement from Sri Sri University
• Chennai Business School forays into Bhubaneswar
• Sri Sri University project: a powerpoint presentation
• Latest status of WODC related private medical college in Rourkela
• Ads for IIT JEE, AIEEE, Orissa JEE and Medical coaching classes
• Plus two options in Berhampur
• Telegraph writes about progress and obstacles in making the Capital Hospital a medical college
• PM: Each state will have a central university
• Bhubaneswar based Institute of Medical Sciences and Sum Hospital get nod for MBBS programme from 2007-08
• Tathya.in has a hard hitting article on the IIT issue that blames the Congress leaders for their ineptitude
• Cabinet approves new scholarship scheme for tribals

The Economic Times reports the allocation of coal blocks in Orissa to various power generation companies across the country. Following is an excerpt from that report.

The Damodar Valley Corporation (DVC) has been allocated Saharpur Jamarpani block having 600 MT reserves in Jharkhand and two blocks in Manoharpur with 531 MT in Orissa for the Orissa Power Generation Company (OPGENCO).

The Naini coal block in Orissa (500 MT) has been allocated to Gujarat Mineral Development Corporation and Pondicherry Industrial Promotion and Development Corporation, the official said.

Moreover, two blocks at Chandipara in Orissa (1,589 MT) has been allocated to Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd, CMDC and Maharashtra State Power Generation Company, the official said.

He said the Baitarani West block in Orissa (602 MT) has been allocated to GPCL, OHPGCL and KSEB while Mandakini B block also in Orissa (1,200 MT) has been allocated to Tamil Nadu Electricity Board, Assam Mineral Development Corporation, Meghalaya Mineral Development Corporation and Orissa Mining Corporation Ltd.

The above allocation is done by the Coal ministry in Delhi. Although the coal mining will add to Orissa’s revenue through royalty, a big concern is the low rate of royalty fixed by the center which also does not change as often as it should. Some reports on this were published in Financial Express and other papers. Following is Orissa government’s stand on this issue and the issue of compensation on thermal power generation.

Revision of rates of royalty on coal and other Major Minerals on Ad valorem basis.

Orissa is a mineral rich State, but it does not get non-tax revenue in shape of royalty from such major minerals in the State to the desired extent as the rates of royalty are not being revised in time. The 12th Finance Commission have recommended that the rate of royalty should be revised on ad valorem basis. But the Government of India has not yet done it. In the past, the rate of royalty on coal and other minerals was revised on expiry of more than 5 to 7 years though the rule stipulates that there should be revision after expiry of 3 years. The delay in the revision of the rate of royalty in coal and other major minerals has caused a loss of Rs.150.00 crore per annum. The State has suggested royalty on ad valorem basis.

Compensation on Thermal Power Generation.

Orissa has a vast coal deposit. Orissa is a power surplus State and it exports power to other States. Since, electricity duty can be charged on consumption only, the importing state benefits while the exporting state has to bear the negative externality such as environmental degradation due to mining etc. This tantamounts to transfer of resources from the producer state without any compensation for the huge negative externality as well as depletion of its natural resources. If 1000 MW power is generated in Orissa and evacuated, the importing State gets electricity duty to the extent of Rs.100 crores, while the State in which the power is produced does not get anything. This situation has to be altered by either allowing the State to levy duty on generation or else mandate that a percentage of power generated should be given free of cost to the State by the Central Public Sector generating companies as is the case in Hydro Power Generation.

From the Budget pages http://orissagov.nic.in/finance/BUDGET/budget.htm. The speech, in pdf, is located here. Following is a text version with some possible conversion errors.

Hon’ble Speaker Sir,

At the outset, I express my deep gratitude to you, Leader of this House, Hon’ble Chief Minister, Hon’ble Leader of the Opposition and all Members of this August House for having given me this opportunity to present the full-fledged Budget for the financial year 2007-08.

2. I would like to mention here that instead of full-fledged Budget for2007-08, a Vote on Account Budget for 4 months was presented by me on last 29th March. This Vote on Account Budget was passed by the Legislature. Now a full-fledged Budget for the financial year 2007-08 is presented for approval of this August House.

3. While presenting the Budget for the financial year 2007-08, I deem it proper to highlight some facts on the fiscal situation of the State for information of Hon’ble Members.

4. The State Government have taken many reform measures to correct the fiscal problems of the State. These include expenditure rationalization measures, revenue step-up measures, improvement in delivery system and proper utilization of limited resources etc. Needless to mention that through various additional resource mobilization and expenditure rationalization measures, there has been an improvement in fiscal management and notable results have been achieved. Some examples are as follows:

(i) Revenue deficit has been completely eliminated much before the financial year 2008-09 which was the target set by Medium Term Fiscal Plan.

(ii) While the revenue deficit of the State was Rs.2574.19 Crore in 1999-2000, this deficit was reduced to Rs.522.30 Crore in 2004-05. Our State has become a revenue surplus State from a revenue deficit State for the first time in 2005-06 after a long gap of 22 years. Revenue surplus has been estimated at Rs.1045.76 Crore in 2007-08.

(iii) Another significant aspect of financial management is achieving expected success in resource mobilization. It is to be mentioned here that because of State’s constant efforts, remarkable improvement in State’s own resources has been achieved since 1999-2000. Where as during 1999-2000, State’s own tax and non-tax revenue was Rs.2420.56 Crore, during 2004-05 this has reached Rs.5522.12 Crore and during 2005-06 the achievement was Rs.6534.18 Crore. While State’s own tax and non-tax revenue were estimated at Rs.6452.99 Crore in the original Budget for the year 2006-07, the same has been estimated at Rs.8196.28 Crore in 2007-08.

(iv) Another aspect of sound fiscal management is less dependence on Overdraft and Ways & Means advance from RBI. From 2005-06 onwards the State Government have neither resorted to Overdraft nor Ways & Means advance. This is indicative of the improvement in the financial management of State Government.

(v) 11th Finance Commission recommended that if the gap between State’s Revenue Deficit & Revenue Receipt remains within 5% during 2000-01 to 2004-05, the State Government would be eligible for Fiscal Incentive grant. Since the State Government was able to contain the revenue deficit within the stipulated percentage during the aforesaid period, Rs.315.35 Crore have been received towards Fiscal Incentive grant.

(vi) Similarly, as per recommendations of 12th Finance Commission, State Government have availed Debt Relief of Rs.381.90 Crore for fiscal achievement during 2004-05 and are also likely to get similar Debt Relief during 2006-07 for fiscal achievement during 2005-06.

(vii) On the other hand, whereas during 1999-2000, 79.17% of the net loan was used to meet revenue deficit, the revenue surplus during 2005-06 is Rs.481.19 Crore. Hence, there is no necessity at present to meet revenue deficit out of the loan amount.

(viii) Because of encouraging revenue mobilization efforts, the State Plan outlay has been increased to Rs.5105.00 Crore for the year 2007-08. While in the original Budget for 2006-07, the State Plan was fixed at Rs.3500.00 Crore, it was increased to Rs.3600.00 Crore as per the revised estimate for 2006-07. Compared to last year, the State Plan expenditure has remarkably increased this year, which will accelerate the pace of development of the State.

(ix) Despite success of the State Government in various fields, it is to be admitted that heavy debt burden is another indicator of weak fiscal situation. The State’s debt burden stands at Rs.36459.07 Crore as on 31.3.2006, which is 48.16% of the GSDP. As per the recommendations of the 12th Finance Commission, the Debt-GSDP ratio should be 28%. Similarly, as per the recommendations of the Commission, Interest Payment -Revenue Receipt ratio should be 15%. As against this, the ratio of Interest Payment to Revenue Receipt is 26.2% during 2005-06. I may point out here that it is not at all wrong to incur loan for carrying out developmental activities. But the loan should not be used to meet the Revenue Deficit. As a result of continuous efforts of the State Government, the ratio of Debt to total Revenue Receipt has been reduced from 308% in 1999-2000 to 259% in 2005-06.

(x) The State Government have been able to save Rs.144.47 Crore towards interest payment by swapping high cost loan with low cost loan as per Debt Swap Scheme of Govt. of India.

(xi) In the meantime, the State Government have resorted to Debt Buy-back and made pre-payment of high cost market loan amounting to Rs.394.61 Crore.

5. I would like to inform this August House that previously the Central Assistance to the State Government had the Grant and Loan component in the ratio of 30:70. But as per the recommendation of the 12th Finance Commission, State Government is now arranging the loan portion of the Central Assistance on its own. The system has been made effective from the financial year 2005-06. Moreover, Government of India had fixed the net loan ceiling of Government of Orissa at Rs.1677.00 Crore for the financial year 2006-07. In order to finance the State Plan outlay of Rs.5105 Crore finalised by the Planning Commission for the current financial year, the net loan has been estimated at Rs.1026.29 Crore in the Budget.

6. We shall have to reduce salary expenditure because salary expenditure constitutes 49% of the revenue expenditure net of Interest Payment and Pension. But as per the recommendation of the 12th Finance Commission, the ratio should be within 35%. In order to achieve this target, we shall have to work with patience and commitment. So it is my sincere belief that your unhesitating support, as in the past, will also continue.

7. It is a fact that in a welfare State, provision of expenditure is to be allocated keeping in view the problems of the people. But in the context of limited resources of the State, we shall have to prioritize the expenditure for the development of the State. The crux of the matter is to enhance the Capital Expenditure by curtailing unproductive expenditure, so that there will be space for infrastructure development as well as inflow of private investment.

8. Taking into account the State’s own tax & non-tax revenue, State’s share from central taxes and Grant-in-Aid from the Centre, while State’s total Revenue Receipt during 2007-08 has been estimated at Rs.19467.20 Crore, the Revenue Expenditure has been estimated at Rs.18421.44 Crore. As against the revenue surplus of Rs.481.20 Crore and Rs.747.76 Crore in 2005-06 and 2006-07 (Revised Estimate) respectively, it has been estimated at Rs.1045.76 Crore for 2007-08. On the other hand, in the Capital Account, the estimated expenditure would be more by Rs.1220.43 Crore than the receipt. The expenditure on account of Capital Outlay, disbursement of Loans and repayment of installment of earlier loans taken together would be more than the receipts from the loans and advances from different sources together
with the recovery of loans. In toto, the deficit in the Consolidated Fund has been estimated at Rs.174,67,04,000/-and an equal amount has been estimated as surplus in the Public Account. On the whole, the receipts and expenditure have been balanced taking into account the Revenue Account, Capital Account and Public Account together. Hence this is a Balanced Budget with revenue surplus.

9. I now like to present some of the highlights of the provisions made both under State Plan and Non-Plan sectors in the full fledged Budget for 2007-08.

10. Highlights of the State Plan I now point out the Highlights of State Plan Outlay.

• Ours is an agrarian State. So the popular Government Agriculture under the leadership of Hon’ble Chief Minister, Sri Department Naveen Patnaik, has given importance to enhance income of farmers by increasing production of traditional crop and diversion to high value cash crops, particularly to horticultural crops in high lands. While Rs.1.40 Crore was provided in the Budget for the 2006-07 for development of horticultural activities in 11 Non-Mission Districts, the same has been increased to Rs.3.05 Crore in the Budget for 2007-08.

• While Rs.20 lakh was provided in the original Budget for 2006-07 for Agriculture Promotion and Investment Corporation Limited (APICOL), Rs.50 lakhs has been provided in the Budget of the current year.

• While there was a provision of Rs.1.78 Crore for fertilizer, bio fertilizer, insecticide and bio-insecticide in the original Budget for 2006-07, Rs.5.51 Crore has been provided in the Budget for 2007-08.

• While there was no provision for Micro Irrigation Programme under State Plan Sector of Agriculture Department in the original Budget for 2006-07, Rs.50 lakh has been provided in the Budget for current financial year.

• While Rupees One Thousand was provided in the original Budget for 2006-07 towards subsidy under the new Agriculture Policy, the same has been enhanced to Rs.3 Crore in the Budget for 2007-08.

• For the first time, in order to encourage the cultivation of Potato, Vegetables & Spices, a sum of Rs.1 Crore has been provided in the Budget for 2007-08.

• Cultivators will be given due encouragement with a view to increasing the production of oil seeds like groundnut and cultivation of pulses and maize. Rs.10.49 Crore has been provided in the Budget for the year 2007-08 which includes State Share of Rs.2.72 Crore for providing assistance to this sector.

• You are all aware of the fact that priority is being given to Soil & Water Conservation through Watershed Development Programme by the Government under the leadership of Hon’ble Chief Minister, Sri Naveen Patnaik. The Budget estimate for 2007-08 provides Rs.18.40 Crores under the Work Plan for Macro Management of Agriculture towards development of Watersheds under NWDPRA and River Valley Projects.

• While the original State Plan for 2006-07 under Agriculture Department was Rs.48.08 Crore, it has been increased to Rs.60.65 Crore in 2007-08.

• While Rs.363.00 Crore was provided in the original Budget for the financial year 2006-07 for Accelerated Irrigation Benefit Scheme, the same has been increased to Rs.464.28 Crore in the Budget for the current year.

• A new scheme named “Biju Gram Jyoti” has been prepared in order to provide electricity in villages having population of less than 300 and for this purpose, Rs.50 Crore has been provided in the Budget of Energy Department in the current year.

• The State Government has implemented a new scheme known as Biju K.B.K. Yojana in K.B.K. Districts in 2006-07 in the name of legendary leader late Biju Patnaik and a sum of Rs.120.00 Crore has been provided for this purpose in the current year’s Budget.

• The State Government have enhanced MLALAD Fund from Rs.50 lakh to Rs.75 lakhs. An amount of Rs.147 Crore has been provided in the Budget of the current financial year which includes arrear of Rs.36.75 Crore of previous year on account of increase in MLALAD fund and Rs.110.25 Crore for the current financial year.

• Rs.30 Crore has been provided in the Budget of the current financial year for Western Orissa Development Council (WODC).

• A sum of Rs.16.10 Crore has been provided in the Budget of Planning & Co-ordination Department for Orissa State Employment Mission.

• The State Government have launched a new Scheme called “Gopabandhu Gramin Yojana” (GGY) from the financial year 2006-07 with a view to providing additional development assistance to the targeted 11 Districts which are not covered under the Backward Region Grants Fund. The main objective of the Scheme is to provide infrastructure consisting primarily of Electricity, Road and Water Supply to such Revenue villages. For the financial year 2007-08, a sum of Rs.110.00 Crore has been proposed specifically in the Budget.

• While Rs.1 Crore was provided in the Budget for the financial year 2006-07 for TRIPTI Programme meant for poverty eradication, the same has been increased to Rs.45 Crore in the Budget for 2007-08.

• A sum of Rs.69.65 Crore has been proposed as state share in the Budget for 2007-08 towards Indira Awas Yojana as against Rs.51.00 Crore provided in the Budget of last financial year.

• While there was no provision in the original Budget of 2006-07 towards National Rural Employment Guarantee Scheme, Rs.100 Crore has been proposed as state share towards NREGS for the financial year 2007-08.

• Central Government have implemented Backward Region Grant Fund in 19 backward Districts of the State. Rs.324.28 Crore has been provided in the Budget for the financial year 2007-08 for the purpose.

• While Rs.13.03 Crore was provided in the State Plan Budget in 2006-07 under National Family Benefit Scheme for One Time Assistance of Rs.10,000 to bereaved BPL families on death of chief earning member of the family, in the current year’s Budget an equal amount has also been provided for the purpose.

• A sum of Rs.67,19,42,000 was provided in the original Budget for 2006-07 towards State’s share of Mid-Day-Meal. An equal amount has also been provided in the Budget estimate for 2007-08.

• The Emergency Feeding Programme is being implemented in the 8 KBK Districts. Under the Programme, 2 lakh old, infirm, and indigent persons belonging to BPL households are provided cooked food for one time in a day. Each beneficiary is provided with 250 gms. of rice per day. For this purpose, Rs.20.50 Crore is proposed in the Budget for 200708.

• While a sum of Rs.32.81 Crore was provided in the original Budget for 2006-07 towards share of State Government for Supplementary Nutrition Programme, it has been increased to Rs.96.07 Crore in 2007-08.

• Pre-Matric Scholarship of residential students belonging to S.T. and S.C. communities has been increased. While there was a provision of Rs.40.82 Crore in the original Budget of 2006-07 for the purpose, the same has been increased to Rs.84.77 Crore in the Budget for 2007-08. Similarly, Rs.3.34 Crore has been proposed in the Budget Estimate for 2007-08 towards Post-Matric Scholarship.

• In order to provide cycles to girl students belonging to Scheduled Tribe communities who have passed HSC Examination and pursuing higher education, it has been proposed to provide Rs.81.00 lakhs in the current year’s Budget.

• There is a provision of Rs.53.01 Crore in the Budget for 2007-08 for construction of Hostels for SC & ST students.

• There is a provision of Rs.127.14 Crore in the Budget for 2007-08 under Special Central Assistance for Tribal Areas Sub-Plan. The same is meant for development of the people of Tribal Areas.

• While there was provision of Rs.101.43 Crore towards Grant-in-Aid Salary in the original Budget for 2006-07, the same has been increased to Rs.125.56 Crore in
the Budget for the year 2007-08.

• It has been proposed to allocate Rs.128.35 Crore towards Grant-in-aid salary in respect of Higher Education Department out of which Rs.21.00 Crore is meant for Non-Government Colleges. Similarly, it has been proposed to allocate Rs.5.00 Crore for Infrastructure Development of Ravenshaw University.

• Rural Health Mission under Health and Family Welfare Department is being implemented in order to provide health care facilities in rural areas. It has been proposed to allocate Rs.60.92 Crores in the Budget for 2007-08 towards the State’s share.

• It has been proposed to complete 3 bridges and 8 roads covering 76.56 km at an outlay of Rs.54.73 Crore during 2007-08 under Central Road Fund.

• It has been proposed to allocate Rs.115.00 Crore during current financial year under RIDF for construction and improvement of Roads & Bridges under Works Department. An equal amount was alsoprovided in the original Budget for 2006-07.

• As against the original provision of Rs.31.00 Crore in the Budget for 2006-07, a sum of Rs.46.00 Crore has been estimated in the Budget of current financial year to improve 7 roads under One Time Additional Central Assistance.

• It has been proposed to allocate Rs.92.20 Crore in the Budget for the current financial year towards Orissa State Road Project under Externally Aided Project (EAP). It is to be mentioned that in the original Budget of the last year, a sum of Rs.51.00 Crore was provided for this propose.

• For connectivity of Roads & Bridges in KBK Districts under Special Central Assistance Scheme, a sum of Rs.8.00 Crore has been provided in the Budget for the current financial year.

• In Works Department while in the original Budget for the financial year 2006-07, Rs.377.16 Crore was provided under the State Plan Sector, this has been increased to Rs.430.41 Crore during the current financial year.

• A new scheme has been proposed to be implemented in the current financial year under State Plan in order to provide self-employment to the unemployed youth. For this purpose, Rs.3.02 Crore has been proposed in the Budget for the current year.

• For the first time, a sum of Rs.6.80 Crore has been proposed in the Budget for 2007-08 for Infrastructure Development of Constituent Colleges under Biju Pattnaik University of Technology (BPUT).

• While there was provision of Rs.87.30 lakh in the original Budget for 2006-07 for Self Employment of unemployed S.C youth, the same has been increased to Rs.2.00 Crore in the Budget for the current year.

• In order to implement a new scheme named “Intensive Mineral Exploration and Assessment of Steel & Mines Mineral Resources”, Rs.5.00 Crore has been provided in the Budget of the current financial year.

• While there was a provision of Rs.3.81 Crore for “E-governance” in the original Budget for 2006-07, it has been increased to Rs.18.76 Crore in the Budget for 2007-08.

• For the first time, funds amounting to Rs.5.00 lakh has been provided in the Budget of I.T. Department for “On Line File Movement & Tracking System”.

• It has been proposed to allocate Rs.4.20 Crore in the Budget of the current year for establishment of “International Institute of Information Technology”.

• There was provision of Rs.1,10,80,000 in the original Budget for 2006-07 of Science and Technology Department for “Integrated Rural Energy Programme”. An equal provision has also been made in the Budget for the current financial year.

• While there was provision of Rs.16.00 lakh for “Orissa Science Academy”, it has been proposed to increase the same to Rs.20.00 lakh in the Budget for the current financial year.

• While there was provision of Rs.13.98 lakh in the original Budget for 2006-07 for popularization of Science, it has been proposed to allocate Rs.30.00 lakh during the current financial year for the purpose.

• While there was provision of Rs.56.25 Crore in the original Budget for 2006-07 in respect of “Jawaharlal Nehru National Urban Renewal Mission”, it has been proposed to allocate Rs.62.25 Crore in the Budget of the current financial year.

• It has been proposed to allocate Rs.25.40 Crore in the Budget for the year 2007-08 for Urban Water Supply.

• A sum of Rs.21.60 Crore and Rs.6.39 Crore have been provided in the Budget for the financial year 2007-08 as Grant-in-aid to Orissa Water Supply and Sewerage Board and Bhubaneswar Development Authority respectively in order to repay the loan obtained from HUDCO for Water Supply Project.

• As against the provision of Rs.80.00 Crore in the original Budget of last year, a sum of Rs.100.00 Crore has been provided in the Budget for the current financial year towards Rural Water Supply.

• During the current financial year, there is a provision of Rs.58.00 Crore under RIDF for construction and improvement of Roads and Bridges under Rural Development Department.

• There is total provision of Rs.185.10 Crore in respect of State Plan under R.D. Department during the current financial year.

• Rs.3.00 Crore has been provided in the State Plan Sector in the Budget for the year 2007-08 in respect of Tourism Department for preparation and display of high quality Cinema and for promotion of Tourism .

• While there was total provision of Rs.7.05 Crore in the original Budget of 2006-07, it has been augmented to Rs.10.16 Crore in the Budget of the current financial year.

Plan Outlay in other Sectors

• As against the original provision of Rs.290.00 Crore in the Budget for the year 2006-07 in respect of Rural Infrastructure Development Fund, it has been proposed to allocate Rs.310.00 Crore in the Budget for the year 2007-08.

• While Rs.516.00 Crore was provided in the original Budget for 2006-07 for Externally Aided Projects, the same has been increased to Rs.793.20 Crore in 2007

11. Highlights of Non-plan Revenue Expenditure. Rs.18,078.24 Crore has been provided towards Non-Plan Revenue Expenditure in the Budget for the financial year 2007-08. I now point out some important highlights of the Non-Plan revenue expenditure for information of Hon’ble Members of the House.

• State Government is giving adequate emphasis on development of Higher Education for which a sum of Rs.35.00 Crore has been provided in the Budget for the year 2007-08 as given below.

Utkal University : 3.50 Crores
Berhampur University : 3.50 Crores
Sambalpur University : 4.00 Crores
Shree Jagannath Sanskrit University : 2.00 Crores
Orissa University of Agriculture & : 2.50 Crores
Technology
Fakir Mohan University : 7.00 Crores
North Orissa University : 7.00 Crores
Ravenshaw University : 5.50 Crores

It has been proposed to allocate of Rs.17.00 Crore in the Budget for the current financial year towards arrear pay in respect of both Government and Government Aided Institutions under Higher Education Department out of which Rs.11.00 Crore and Rs.6.00 Crore are meant for Aided Educational Institutions and Government Colleges respectively. Similarly provision of funds amounting Rs.143.41 Crore has been made in this year’s Budget as Grant-in-Aid to different Institutions under Higher Education Department.

While Rs.167.42 Crore was provided in the original Budget for the year 2006-07 towards Sarba Sikhya Abhijan (SSA) under School and Mass Education Department, the same has been increased to Rs.170.33 Crore in the Budget for the financial year 2007-08.

· A sum of Rs.4.00 Crore has been provided in the Budget for the current financial year for renovation of Rabindra Mandap and Bhanja Kala Mandap.

• As per the recommendations of 2nd State Finance Commission a sum of Rs.19.85 Crore, Rs.5.00 Crore and Rs.11.74 Crore has been provided in the Budget for 2007-08 for repair and maintenance of Minor Irrigation Projects, repair and construction of G.P roads and for other
development work respectively.

• It has been proposed to allocate Rs.25.00 Crore for addition, alteration and maintenance of Hostel and Schools for the SC and ST Students.

• While Rs.9.78 Crore was provided in the original Budget for 2006-07 towards Diet Allowance of Prisoners of different Jails, the same has been increased to Rs.12,58,76,000 in the Budget for the financial year 2007-08.

• While Rs. 2.00 Crore and Rs. 1.77 Crore have been provided in the Budget for the current financial year for Infrastructure Development and purchase of Equipments respectively for Acharya Harihara Regional Cancer Centre, Rs. 2.10 Crore each for V.S.S. Medical College, Burla and M.K.C.G. Medical College, Berhampur, has been provided for increase of MBBS seats from 107 to 150.

• There is a provision of Rs.10.00 Crore in the Budget for Revenue & 2007-08 for distribution of Land Pass Book. Assistance is expected from National Calamity Contingency Fund. Accordingly, there is a provision of Rs.150.00 Crore in the Budget for the financial year 2007-08.

• There is a provision of Rs.60.30 Crore towards State Share and Rs.180.87 Crore towards Central Share (totalling to Rs.241.17 Crore ) in the Budget for 2007-08 on account of Relief Expenditure.

Non-Plan Expenditure in Other Sectors

• During first year of the 11th Plan period i.e financial year 2007-08, Rs.200.00 Crore has been transferred from Plan to Non-Plan Sector towards committed liabilities. It includes repair of Roads and Buildings, maintenance and repair of completed Irrigation Projects and maintenance of Irrigation Projects under Water Resources Department, provision of stipend and scholarship for the students of ST & SC Development Department, Block grant and Salaries of Universities under Higher Education and Agriculture Department.

· For maintenance of Government Buildings, Residential Buildings and Roads, provision of Rs.1138.51 Crore has been proposed in this year’s Budget which is higher by Rs. 322.34 Crore compared to the original Budget for the year 2006-07.

· Rs. 4049.11 Crore towards Interest Payment in respect of Loans obtained from Govt. of India and other Institutions.

· Rs.2125.36 Crore towards pension and other retirement and benefits.

12. While during the financial year 2006-07 expenditure in Capital account was estimated at Rs.1349.21 Crore, this has been increased to Rs.1913.77 Crore in the Budget estimate for the current financial year. Because of this, more funds will be available for infrastructure development.

13. Consequent upon introduction of Value Added Tax (VAT) w.e.f. 1.04.2005, revenue collection has increased in Commercial Taxes organization. While an amount of Rs.2471.39 Crore was collected during 2004-05, this has increased to Rs.3011.73 Crore during 2005-06. As per preliminary information, this has further increased to Rs.3764.82 Crore in 2006-07. During the current financial year, State Government have changed the Value Added Tax Rate of 35 commodities which would be helpful in augmentation of State’s revenue as well as for the benefit of the small dealers and poor consumers. For example, while VAT has been increased on tobacco, the same has been reduced on tea. 9 items of goods have also been exempted from VAT.

14. Out of grants from DFID and 11th Finance Commission, 54 offices in Commercial Taxes organization (including 4 important check posts) have been computerized out of 111 offices.

15. Orissa Treasury Management System (OTMS) is being implemented since June, 2005 with DFID assistance. The principal objective of the Orissa Treasury Management System is to computerize all Treasuries, Special Treasuries and Sub-Treasuries in phases. For this, Computer System in all the Treasuries, Special Treasuries and Sub Treasuries are being linked with the main Computer System in the Directorate of Treasuries. Hence, no bill can be passed without allotment. Because of this, excess expenditure incurred beyond Budgetary provision, can now be prevented.

16. I may indicate here that steps are being taken to credit Pension related dues of retired Government employees in Bank Account through Computer during the current financial year. By this, pension payment and its accounting procedure will be simplified and difficulties of the pensioners will be removed.

17. Before I conclude, I want to inform the Hon’ble Members of this August House that it is incorrect to assume that problems of the State will be solved by making more provision in the Budget and expending the same in a routine manner. It is essential that we have to see whether the desired result is being derived from the money expended or not. I expect and believe that Departmentally related Standing Committees will examine this aspect while analyzing the Budget of the Departments.

18. Another important aspect is timely and proper utilization of Central Assistance. Substantial improvement has been noticed in submission of Utilization Certificate in respect of Central Assistance received due to regular monitoring and supervision by Government. For example, while Utilization Certificate amounting to Rs.2470.58 Crore was submitted during 2005-06, the same has increased to Rs.2852.25 Crore in 2006-07 which is Rs.381.67 Crore more in comparison to the previous year.

19. Hon’ble Speaker Sir, while presenting the Budget for the financial year 2007-08, I have highlighted the financial situation, the estimated receipts and expenditure of the State and the sincere efforts of the Government to mitigate the persistent problems of the State. I am grateful to you Sir, and extend my gratitude to the Hon’ble Leader of the House and Hon’ble Leader of Opposition and also my heartfelt thanks to the Hon’ble Members of the House for giving a patient listening to me so long. I solicit the help and cooperation of this August House. I humbly pray before Lord Sri Jagannath for happy and prosperous future of our State.

‘Jai Hind’
‘Bande Utkal Janani’
Shri Prafulla Chandra Ghadai,
Minister, Finance.

Various newspapers (Telegraph, Financial Express) report that the Cabana group has announced a hotel and a management institute in Bhubaneswar and plans to open many hotels in various locations in Orissa. Following is an excerpt from Telegraph.

Co-chairman of Cabana Hotel Management Private Limited and venture capitalist, Prabhu Goel, said the institute will be the group’s first training venture anywhere in the world. “Since the industry demand is huge, we hope that all students will be absorbed after training,” Goel added.

The institute, for which the government has allotted a seven-acre plot near Dumduma, will have hostels for 1,500 students, classrooms, labs, kitchens, along with a an attached 200-bed hotel. The group will represent Best Western brand in India, provide hotel management services and consultancy, he said.

Over the next 10 years, the group intends to add more than 100 hotels and 10,000 rooms to the growing Indian hospitality market. “We have visited places like Chilika, Puri, Konark and Paradip. We are interested to set up hotels there. We have plans to invest around Rs 350 crores in developing properties in the state,” said Goel.

Orissawatch.org is where we started from and focused on human resource development and education. We continue to be active that site. Once in a while we will do a round-up of important postings in that site here. Following is the first such round up.

• RFPs for the AIIMS like institute in Bhubaneswar and other places
• Tenders related to NISER Bhubaneswar
• NISER Bhubaneswar brochure and application form
• List of engineering colleges in Orissa
• List of management institutions in Orissa
• List of universities in Orissa
• List of research institutions in Orissa
• Coaching Schools in Bhubaneswar
• XIM plans to roll out new courses in econometrics, financial modelling and regulatory finance.
• Post Class X ads (junior colleges; plus 2 science; plus 2 commerce)

Euronext reports that Velcan energy, a environmentally conscious energy generator has plans to create two concessions in the Baitrani river at Tarini and Bhimkund (in Anugul district).

These two places are approximately 150 kms from Bhubaneswar. This is expected to have a power production of 200,000 MWh per annum. This is expected to be a eco-friendly power project since it uses a renewable energy resource.

All the financial details are present in the euronext link above.

NDTV reports that the Gopalpur SEZ has been cleared by the Central Govt.

There was a lot of hue and cry that why the Gopalpur SEZ was not moving further in Orissa. Recent events show that it was held up due to security clearances which was required. Hopefully this will ensure faster development in Orissa.

TOI reports that POSCO has become operational with it’s new FINEX technology in a steel plant in South Korea. The same FINEX technology will be used in the Orissa steel plant. This is particularly relevant for high Alumina grade Ores found in Orissa. The new steel plant in South Korea will improve the output of POSCO by 11%.

Other papers which reported the same news were Statesman,Financial Express and Reuters India. Brunei times provides a different analysis to the same story also.

Economic times reported that Tata’s proposed multi-product special economic zone (SEZ) in Gopalpur is finally set to get the green signal from the government.

Samaja reports that Paradeep oil refinery would function from October 2011.

However, there were many such announcements published earlier. Every time a new date is fixed. The project is already shifted 5 years from the actual schedule.

News reports mention that Oriental Timex has acquired mining rights for decorative stones at village Potteru in Malkangiri district. Following is a quote from one of the reports.

The company acquired the said rights through a prospecting license dated Apr. 13, 2007, executed between the company and deputy director of mines, Koraput Circle Koraput, government of Orissa.

The decorative stone quarry is spread over an area of 10.279 hectares / 25.40 acres. The deposits in this quarry are of black colour granite stone.

The company said is in the process of complying with the terms and conditions of the prospecting lease.

Mining and Metal: KBK plus region is rich in bauxite, gemstone, and other minerals. State government has made a special tax benefit for industrialists to establish industries in KBK. However, it is not enough to bring investment to a backward region like this where infrastructure is in bottleneck. Emphasis should be given by the state government in such a way that industrialists are convienced to invest in KBK plus region.

State government has already signed 43 MOUs only in the steel sector; if these are actually implemented then it is quite enough for a state like Orissa. Therefore, now the state government should modify a bit the exiting rule for steel industry putting a new clause that any new proposal to establish steel industry in the state will be considered only if it would be located in KBK plus region or Mayurbhanj district, otherwise mining rights would not be provided.

For growth of down stream industries in KBK Plus region NALCO, Vedanta Alumina Ltd, and Utkal Alumina Ltd should be encouraged to establish downstream industrial park at Koraput, Bhawanipatan and Rayagada respectively.

Irrigation and Hydroelectric Project: KBK plus region has the higher potential for generating electricity through hydroelectricity project that needs construction of new dams. If government can not support at a time, then private players should be encouraged to establish dam for hydroelectricity generation and irrigation purposes in this region.

Information Technology, BPO, and KPO: IT and BPO generate lots of employment in India recently. Bhubaneswar is already emerging as an IT and ITES destination in the country. In the next step the state government should expand these industries to other parts of the state. There are already plan for Rourkela and Berhampur. In future it may be expanded to Sambalpur and Balasore. Keeping geographical location in mind, the state government should establish at least three IT parks in Koraput, Bhawanipatna and Balangir for the whole region for IT, BPO and KPO.

Establishment of three real universities in the region would benefit these industries.

Biotechnology Park: As such KBK Plus region has a large forest area, therefore, it has great potential for biotechnology, especially for agricultural biotechnology, herbal biotechnology and medicinal biotechnology. Plantation of herbal plants and agricultural biotechnology in this region would be much beneficial.

KBK Plus region could be a very good source of ethanol from not only agriculture but also the forest. Mahul (a locally known forest flower that is used to make local wine) could be a good source for ethanol and methanol. Though wine is locally discouraged, nevertheless it can be used for industrial growth to export out side the country. The export market of Indian made wine and beer is flourishing recently. Orissa should encourage such activity by inviting major industrialists to invest in wine and food processing market to explore the possibility of local made products for export market so that it will benefit both the state government and local people that included tribal people who collect Mahul from the forest for local wine production.

The region would also be a source for bio-diesel and bio-fuel production.

Therefore, biotechnology parks in the three major towns such as Bhawanipatna, Koraput and Balangir to explore agricultural, herbal and medicinal biotechnology respectively in the region should be established.

Reference: KBK Plus region includes a single cluster of Kalahandi, Nuapada, Balangir, Subarnapur, Koraput, Malkangiri, Rayagada, Nawarangpur , Kandhamal, Boudh, Gajpati and Bargarh (Padampur sub-division only) districts of Orissa.

It gets reported once in a while [Hindu1, Hindu, Technoligence,iocl ] that IOC plans a new 300,000 barrels a day refinery and petrochemical complex at Paradip. Timesnow.tv has a recent report on this.

The New Indian Express reports that the state Government has decided to launch enterprise development rogramme in 200 villages in the catchment area of Upper Kolab HydroElectric Project to create alternative employment opportunities and nd dependence on forest.

This would include value addition to non-timber forest product, edicinal plants, agriculture and horticulture products, leaf plate aking, hill broom making, mushroom cultivation, spawn production, ruit preservation and opening of handicraft centre for bamboo articles.

Although its a novel initiative, it needs proper implimentation.

The completion of the (a) Kurdha Rd – Balangir new line, (b) Lanjigarh Rd – Junagarh new line, (c) broad gauge conversion of Naupada Rd and Gunupur and (d) the completion of the Gunupur-Theruvali line will have the following benefits. [Among these, with the current funding level (b) and (c) will be completed in a couple of years. What is needed is a big push to complete (a) and (d) in the next 3-4 years.]

1. Parlakhemundi, the district headquarter of Gajapati will be on Broad gauge rail and will be 305 kms from Bhubaneswar (the state capital). [c]
2. Sonepur, the district HQ of Sonepur district will be on Broad gauge rail and will be 259 kms from Bhubaneswar (the state capital). [a]
3. Boudh, the district HQ of Boudha district will be on Broad gauge and will be 217 kms from Bhubaneswar (the state capital).[a]
4. Nayagarha, the district HQ of Nayagarha district will be on Broad gauge and will be 84 kms from Bhubaneswar (the state capital). [a]
5. Bhawanipatna, the district HQ of Kalahandi district will be on Broad gauge and will be 450 kms from Bhubaneswar via Balangir [a,b] and 504 kms from Bhubaneswar (the state capital) via Gunupur. [b,c,d]
6. Balangir, the district HQ of Balangir district will now be 309 kms from Bhubaneswar instead of the earlier 397 kms. [a]
7. Nawapara Rd, near the district HQ of Nawapara district will now be 459 kms from Bhubaneswar instead of the earlier 547 kms. [a]
8. Rayagada, the district HQ of Rayagada district will now be 419 kms from Bhubaneswar instead of the earlier 502 kms. [c,d]
9. Koraput, the district HQ of Koraput district will now be 573 kms from Bhubaneswar instead of the earlier 676 kms. [c,d]
10. Titlagarh, a major junction will now be 373 kms from Bhubaneswar instead of the earlier 461 kms. [a]

Thus these four lines will connect 5 new district HQs to the broad gauge railways and will significantly reduce the distance between 4 other district HQs and the state capital. That is 8 district HQs would be within half-a-day intercity distance away from the state capital and the 9th one (Koraput) will be within a overnight ride from the state capital. Thus intercity trains between (i) Bhuabneswar and Nawapara Rd (ii) Bhubaneswar and Bhawanipatna and (iii) Bhubaneswar and Rayagada will completely change the psychology of people in districts such as Kalahandi, Rayagada and Nawapara and feel them more connected with the rest of the state. (Currently 2893 leaves Bhubaneswar at 5:45 AM and reaches Balangir at 1:20 PM. Within the same time, with the shortened route it can easily go up to Titlagarh junction and with a little speed up this train will be able to go up to Bhawanipatna or Nawapara Rd.) Similarly a shorter overnight train between Jeypore and Bhubaneswar will make people in Koraput district feel much closer to the rest of the state. (Currently 8448 leaves Koraput at 6:25 PM and reaches Bhubaneswar at 8:30 AM next morning. With a shorter route a train can leave Koraput at 8:30 PM and make it to Bhubaneswar by 8:30 AM next morning.)

Two further extensions of Junagarh-Nawarangpur and Jeypore-Malkangiri will bring two other KBK district HQs to be connected to the broad gauge railways.

Following explains the calculations [orissalinks] :

1. Parlakhemundi-Naupada Rd is 40 kms and Naupada Rd to Bhubaneswar is 265 kms.
2. Sonepur to Khurda Rd is 240 kms and Khurda Rd to Bhubaneswar is 19 kms.
3. Boudha to Khurda Rd is 198 kms and Khurda Rd to Bhubaneswar is 19 kms.
4. Nayagarh to Khurda Rd is 65 kms and Khurda Rd to Bhubaneswar is 19 kms.
5. Bhawanipatna to Lanjiharh Rd is 30 kms, Lanjigarh Rd to Titlagarh is 47 kms, Titlagarh to Balangir is 64 kms, Balangir to Khurda Rd is 290 kms and Khurda Rd to Bhubaneswar is 19 kms. Lanjigarh Rd to Theruvali is 74 kms, Theruvali to Gunupur is estimated to be 45 kms, Gunupur to Naupada rd is 90 kms, and Naupada Rd to Bhubaneswar is 265 kms.
6. Balangir to Khurda Rd is 290 kms and Khurda Rd to Bhubaneswar is 19 kms. Balangir to Sambalpur is 118 kms, Sambalpur to Talcher Rd is 169 kms, Talcher Thermal to Barang is 94 kms and Barang to Bhubaneswar is 16 kms.
7. Nawapara Rd to Titlagarh is 86 kms and Titlagarh to Balangir is 64 kms.
8. Rayagada to Theruvali is 19 kms, Theruvali to Naupada Rd is estimated to be 135 kms and Naupada Rd to Bhubaneswar is 265 kms. Rayagad to Vijainagaram is 124 kms and Vijainagaram to Bhubaneswar is 378 kms.
9. Koraput to Rayagada is 174 kms.
10. Titlagarh to Balangir is 64 kms.

Pioneer mentions that the National Highway Authority of India has given final notification for 4-6 laning of Panikoili-Rajamunda. Following is an excerpt on the same topic from Pragativadi.

 Keonjhar: The National Highways Authority of India (NHAI) has notified the four-six laning of the Panikoili-Rajamunda section of the NH-215, under the (National Highway Development Project) NHDP-III.

The notification has asked the district headquarter to undertake the land acquisition along the section of Panikoili in Jajpur district to Rajamunda in Sundergarh except for the section of Rimuli to Guali in Keonjhar district. The land acquisition will be made for a distance totalling 230 km of the total length of 263 km of NH-215 under the National Highways Act, 1956.

The project will be taken up under the BOT (Build -Operate-Transfer) scheme encompassing three revenue districts Keonjhar, Jajpur and Sundargarh. The proposed project was sanctioned by the NHAI in 2004-05 to mainly to cater to the needs of Paradip Port Trust (PPT) and due to persistent demands from the state government, especially Lok Sabha member from Keonjhar, Anant Naik.

Samaja has a beautiful editorial page article by Ramachandra Pattanayak. In it the the author explains that if we continue opposing Posco, Tisco and Mittal what will happen is that steel plants will be made in other states, our mines will be assigned by the central government to these steel plants in other states and we will lose out on many fronts including infrastructure development that comes with steel plants, ancillaries, etc. Similarly, he says it does not make sense that we are so vocal about IIT etc. and yet we oppose Vedanta University.

I agree with the author. The assignment of mines is not fully under state govt. control. We can not sit on requests and delay assigning mines. If we do that currently the central govt. has the right to assign the mines to others. Losing out on the mines, we lose out on the related infrastructure developments such as townships, railways, roads, and to some degree ports. We also lose out on the ancillaries. In this regard one may note cities with big steel plants such as Rourkela or Jamshedpur. They all have lots of ancillary units around that area. So even if the main steel plant does not employ as many people as in the past, there are more opportunities for ancillaries these days as the state is keen on going after auto factories, bicycle factories etc. These ancillaries will hire a lot of people. But, of course, we should not force people out of their land; they should be enticed with good compensation (R&R). On the other hand we need to be very careful and wary of some of the neighboring states who are trying to spread their ideology to our state and in the process trying to steal some of these upcoming developments in Orissa. In this regard it is amazing that politicians and MPs from a neighboring state are able to come to Orissa and say that their party opposes such and such project in Orissa. At the same time the party of these politicians support industry in their state so much that they or their allies have sent in cadres dressed up as policemen to kill and rape people opposed to industrialization in their state. What gull these politicians from the neighboring state have and how stupid we Oriyas are to invite them, give them a platform and listen to them.

Tathya reports that ICICI Bank will collaborate with Utkal University to start courses in banking and insurance. I guess this will be mutually beneficial to both Utkal University and ICICI Bank. The later will get a good pool to hire its employees.

Tathya reports that ICICI Bank will sign an MOU with Orissa government to set up a call center and back office operation for banking and insurance. This center to be located in Infocity will eventually hire 15,000 graduates from normal colleges. In terms of the number of people they will hire, this is a big deal; much bigger than the overhyped POSCO or Mittal deals. ICICI Bank will not use our mines; will not pollute our atmosphere; will not displace people; and will only need 12 acres and yet will hire 15,000 people. Orissa should be going after more such companies and less of the metal and mining kind.

Notes:

• Earlier in April this year ICICI Bank made a similar announcement with respect to Hyderabad.
• In 2005 ICICI Bank had planned for the eastern hub to be in Kolkata.
• ICICI Bank is different from the BPO company ICICI Onsesource which is now renamed as First Source.
• ICICI bank recently launched the ICICI Knowledge Park in Hyderabad.

Telegraph reports that there is a plan to establish a Rs 3 crore observatory with latest equipment such as  cassagerial optical telescope, Schimidt Cassergain, IR and UV sensors and a well-furnished chemical laboratory in or near Bhubaneswar. The possible spots are Sikharchandi Hill near Infocity or a hill near Naraj Barrage. Since NISER plans to eventually have a course in astronomy this observatory may come in handy for its students and faculty.

Tathya reports that an IT SEZ has been approved that covers major part of Infocity. Following is an excerpt from that article.

The IT nerve center of Orissa is centered at Infocity, a sprawling 300 acres of Export Promotion Industrial Park developed by IDCO north of Bhubaneswar.

Infosys and ESSPL have set up their development centers.

TCS, Wipro and MindTree have signed memorandum of understanding (MoU) and have taken land in Infocity.

Other prominent IT companies including Genpact, Hexaware Technologies, Ramtech Software Solutions and Contiloe Films have also applied for land.