___________

Following is an excerpt from a report in Pioneer. 

With top software companies chalking out their strategies for growth, the top administrators in the Information Technology (IT) sector in Odisha say that by 2013 the state will have more than 10,000 seats for software professionals.

TCS, Infosys, Wipro and above all MindTree have started their plans for expansion in Odisha in a big way, said an official in the Department of IT(DoIT).

MindTree, a global IT and Product engineering services company, is starting work on its 20-acre campus from Thursday, said sources.Though MindTree wanted to open its campus way back in 2004, bureaucratic wrangles forced the IT major to wind up its plan. However, with the intervention of the top officials in the DoIT, it has once again taking up the job to set up 2,000-seater campus by 2013, which will ultimately a 10,000-seater campus in future.DoIT Secretary and IDCO CMD Pradeep Jena played a crucial role in roping in the Global IT company to Odisha by providing 20-acres of land in Infocity I.

… Wipro has also started construction of its campus in Infocity I, said an offcial.

This will be a 3,000-seater campus with the latest facilities for software development.Similarly, Infosys has decided to be co-developer of a 50-acre zone in Info Valley SEZ coming up near Khurda.

DoIT sources said 5,000 seats would be developed in next two years.TCS has also started adding its second campus with 3,500 seats in Infocity I.All these companies would be adding 10,000 seats by 2013 …

Following is an excerpt from a report in Business Standard.

Mid-sized IT solution provider MindTree Ltd has plans to complete its Orissa project by 2017 and the first phase by June 2013 …

… MindTree will invest Rs 250 crore in a span of five years to build the facility, which can employ 5,000 persons and can train 1,000 freshers, he informed while saying that the entire campus will have the touch of Puri temple along with modern architecture.

In its Bhubaneswar campus, the company will provide all its services including specialised Product Engineering Services that accounts for a third of its revenue. After its completion, it will also look for universities which can make changes in their curriculum to suit the business requirement, he said.

Update:

Following is from a report in Business Standard.

Jindal Steel & Power Ltd (JSPL) has committed an investment of Rs 500 crore for a downstream industrial park in Orissa.

This is the latest in a string of investment plans announced by the company in the state which includes a greenfield steel plant, a coal to liquid project and a proposed deep sea port.

The steel company on Tuesday signed a Memorandum of Understanding (MoU) with the state government for setting up the park at Parang in Angul district. The downstream industrial park is expected to attract investments of Rs 5,000 crore besides generating employment opportunities for 32,000 people, both direct and indirect.

The park is also set to generate tax revenue worth Rs 700 crore per annum for the state government.

The pact was signed between T Ramachandru, principal secretary (industries), Orissa government and Anand Goel, joint managing director of JSPL.

The park, to come up over 1,400 acres of land, is expected to be operational by the end of 2014. It will focus on medium and small scale downstream units that would both add value and result in increased industrial activity.

The industries targeted for the park include steel rolling and other mills for downstream steel products, forging units, beam welding plants, ferro alloy units, pipe manufacturing units, galvanizing and colour coating units, foundries as well as food processing and coal storage units.

(Thanks to a reader for the pointer.)

Following is from a report in Telegraph.

The Memorandum of Agreement (MoA) for setting up the Rs 2.7 lakh crore petroleum, chemicals and petrochemicals investment region (PCPIR) near Paradip was signed between the state and the Centre today.

The PCPIR will come up over 284.15sqkm in Jagatsinghpur and Kendrapara districts with a proposed investment of Rs 2,77,734 crore.

While Orissa Industrial Infrastructure Development Corporation (Idco) chairman-cum managing director Priyabrata Patnaik represented the state, additional secretary of the department of chemical and petrochemicals Geeta Menon signed on behalf of the Union government. Patnaik said, “The MoA was signed and the project has got legal sanction. All the work for the project will now proceed according to the plan.”

… Sources said the state government has requested the Centre to take up the project work in the 12th five year plan. Under the plan, an airport will come up at Paradip and two direct roads from Bhubaneswar to Puri Paradeep will be built. One of these will begin from Uttara Square on the outskirts of Bhubaneswar.

Idco will act as a nodal department to help the government develop the PCPIR. “A meeting chaired by CM Naveen Patnaik is likely to be held this week to finalise the detailed project report.”

An apex body under the chairmanship of the chief minister has already been constituted to look into the implementation of the project. Under the proposed plan, a regional development authority (RDA) will be set up. The RDA will have autonomous power and other authorities will not be able to intervene in the work of the RDA.

… Officials hope that land acquisition for the project would not be a problem. “Instead of taking lands directly from people, we will go for swapping of land. If the government takes one acre of land, the same area of land will be allotted to the owner in another place,” said an official associated with the project.

Sources said the government had asked the Centre to build a coastal corridor that would connect Paradip to Chennai. “Andhra Pradesh has also supported Orissa. The Centre has taken the demand seriously,” said the official.

The Indian Oil Corporation (IOCL) will be the anchor tenant for the project. The PCPIR will also include the IOCL’s refinery at Paradip, which in the first phase, will have an investment of Rs 29,777 crore. The refinery will have a crude and vacuum distillation unit, a hydro-cracking unit and a delayed coker unit. It will also have an integrated gasification combined cycle plant for production of steam, power and hydrogen from petroleum coke for captive use in the refinery.

Another leading player, Deepak Fertilizers, will set up a greenfield ammonium nitrate plant in the PCPIR. Tata Steel and the South Africa-based Sasol have expressed interest in setting up a coal to liquid project under the PCPIR. The project is likely to come up by 2018 in an area of 3,000 acres. The plant will produce 80,000 barrels of liquid fuel from coal per day.

According to the plan, Rs 13,634 crore will be invested for infrastructure development in the PCPIR. Of this, the Centre will provide Rs 716 crore under Viability Gap Funding (VGF) to ensure infrastructure linkages such as rail, road (national highways), ports, airports and telecom through public-private partnership. The state’s share will be Rs 1,796 crore while the remaining Rs 11,122 crore will be generated through private participation.

Following is from a report in Telegraph by Bibhuti Barik.

The Institute of Minerals and Materials Technology (IMMT) here has perfected the technology of processing ilmenite, a compound of iron and titanium, which is iron-black or steel-gray, found abundantly in the sands of Orissa’s beaches.

IMMT scientists are now planning to set up a demonstration plant at Orissa Sands Complex, a division of Indian Rare Earths Limited (IREL) at Chatrapur, for processing ilmenite as the ore is found in the beach sand of Chhatrapur and is being processed by IREL. The cost-effective technology will work wonders for extracting titanium dioxide and high-value iron from low-grade ilmenite.

Ilmenite is non-toxic and its use in biomedical substances does not create any physiological problem. On the other hand, titanium, in its pure metallic and alloy forms, finds applications in aerospace, defence applications, chemical and related metallurgical industries.

“The ilmenite processing technology developed by IMMT scientists will help the nation as the prime raw material for titanium production — rulite — is now in short supply. So, ilmenite is the best alternative raw material for fulfilling the demand of titanium,” said P.S. Mukherjee, chief scientist and head, advanced materials and technology department, IMMT.

“The new technology serves two benefits — it does not produce toxic by-products and it produces high value iron as a value-added by-product for the automobile industry,” said the chief scientist.

… “But this new process is an environment-friendly one. This is for the first time such a technology is being planned in the country. With proper industry support and more and more R&D support, it can be developed further,” the scientist said.

The world’s reserve of ilmenite ore is estimated at around 1.8 to 2 billion tonnes and India has the largest and richest reserve. The commercial deposits are found in the beach sands of Orissa, Tamil Nadu and Kerala. However, only 0.4 million tonnes are processed by IREL. Majority of the deposits are exported as pure ilmenite without any value addition.

IMMT director Baradakanta Mishra said: “Processing technologies of two metals — nickel and ilmenite — perhaps is the best contribution of IMMT to the country. However, more financial help should be extended to the laboratory by the industry and the government. Even with a limited reserve, China is supplying 70 per cent of the Earth’s rare materials whereas we are exporting valuable sand-rich ores to foreign countries without any value addition. The pilot plant should be scaled up and more fund flow to IMMT can result in innovative research in mineral processing.”

Following are excerpts from a report in ibnlive.com.

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

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

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

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

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

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

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

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

Following is an excerpt from a report in Telegraph.

The state government is planning to set up a port-based cluster of wood-based industries in Paradip on the Kandla model. The hub will manufacture wooden products with imported timber and market them within and outside the country.

“The entrepreneurs will set up their units with their own funds. We will facilitate the project by providing land and other infrastructure. The state run Industrial Development Corporation has earmarked 100 acres of land for the purpose,” said industries minister Raghunath Mohanty.

“The beauty of the project is that the wood-based units will use timber imported from South Africa, New Zealand and West Indies. The proposal is on the lines of Kandla project in Gujarat where several wood-based industries are operating. The entire raw material is imported from outside,” said forest and environment minister Debi Prasad Mishra.

In the following excerpts from a report in Business Standard Haridaspur-Paradip and Talcher-Bimlagarh are listed as strategic projects. I hope they are fast tracked.

… Delays in land acquisition and forest clearances continue to stand in the way of completing strategic projects like the 82-km Haridaspur-Paradip line and the 154-km link between Talcher and Bimlagarh, both in Orissa. While the first project is to give good port access to units in the steel hub of Kalinganagar, the second is designed to step up evacuation of coal from mines at Angul and Talcher.

…This is why India, endowed with the world’s fifth largest bauxite deposits and the fourth largest coal reserves, has emerged as a preferred place for making aluminium. Within the country, Orissa is where every aluminium maker wants a presence. That is why the Vedanta group, in spite of being solidly anchored in Chhattisgarh, thanks to its 50 per cent ownership of Balco, with capacity of 345,000 tonnes and then giving shape to a 650,000-tonne smelter there, wants to create alumina capacity of five mt and smelting capacity of 1.6 mt in Orissa, with adequate upstream integration in bauxite mining and coal-based power.

NAY SAYERS
Unfortunately, Vedanta is not able to realise what it has set out to do in Orissa, as it fell foul of pressure groups such as Amnesty International and Survival International and also of the ministry of environment and forests. The Niyamgiri Hills, from where Vedanta’s refinery is to draw bauxite, is considered sacred by Dongria Kondh tribesmen. But why should the company be stopped to take out bauxite from there if it is ready to resettle the displaced people and practise environment-friendly mining?

As a result of the impasse, Vedanta is required to source bauxite from outside, totally upsetting the considerations for hosting a refinery at nearby Lanjigarh. The denial of mining at Niyamgiri is setting a bad precedent for the mining sector. Redemption for Vedanta would hopefully come, with the Orissa government committed to offering alternative bauxite deposits.

There are some recent news on Vedanta’s expansion in Lanjigarh. But the news are confusing. Following is an excerpt from a September 17th report in Times of India.

Vedanta has suffered another setback in its fight-back to expand the aluminium refinery in Orissa after the Union environment ministry had struck down its environment clearance for violations.

The Cuttack bench of the Orissa High Court backed the environment ministry and ordered that Vedanta would have to apply afresh for a clearance for expansion if it wants to.

Following is an excerpt from a September 19th report in ndtv.com.

The ministry of environment and forests has cleared Vedanta Aluminium’s project in Lanjigarh, Orissa. 

The expansion of Anil Agarwal-led Vedanta Aluminium’s four million tonne Lanjigarh refinery plant in Kalahandi had been put on hold by the Union Environment Ministry  on October 21, 2010.

… Environment ministry’s expert appraisal committee (EAC) has cleared the project with 70 conditions, sources told NDTV. Major conditions among them are:  Five per cent of the total project cost would be spent on social welfare projects.The company will maintain air, water quality & develop 164 hectare of plant area as green belt.

Others conditions say that the company will also submit rehabilitation and resettlement policy covering tribals, which should be in line with government policies. The company will also be required to submit corporate environment policy approved by its board.

Read more at: http://profit.ndtv.com/news/show/vedanta-s-aluminium-project-in-orissa-gets-green-nod-178542?ch=kjjbhrkjrhplkmn&cp

Read more at: http://profit.ndtv.com/news/show/vedanta-s-aluminium-project-in-orissa-gets-green-nod-178542?ch=kjjbhrkjrhplkmn&cp

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

The single window committee (SWC) on Friday approved proposals for four industrial units, two of them power plants, with an investment of Rs 1,286.61 crore.

… The proposal of M/S Beverages Private Limited to set up a soft drink beverages unit with capacity of one lakh crates per annum at Atabira in Bargarh district with an investment of Rs 59.61 crore was approved in the meeting.
Similarly, the proposal of M/S Essar Power Orissa Limited to set up 4×30 MW captive power plant in two phases at Paradip with an investment of ` 683 crore was also given the green signal.

It is expected that the project will provide employment opportunity to 200persons.

The proposal submitted by Investa Ventures Limited for setting up a LED manufacturing plant and incubation park at Chandaka near Bhubaneswar with an estimated investment of Rs 190 crore was also approved.

The plant will produce energy saving LED electric bulbs and tubes and is expected to open employment opportunities for 470 persons.

Besides, the proposal of M/S Ultra Tech Cement Ltd for expansion of the existing cement grinding capacity from 1MTPA to 3 MTPA at Jharsuguda Cement Works and bulk terminal in Cuttack district with an investment of ` 354 crore has also got the approval of the committee.

Following is from http://www.idco.in/2009/Aluminium_Park_IEOI_Document%2026.07.11.pdf.

EOI SUBMISSION – DATE AND TIME 7.1. The Interested Parties should submit their EOIs, in the form & manner mentioned under Clause 4 hereinabove and seal it in an outer envelope and mark the envelope as “ EOI for Participating in the proposed Aluminium Park at Angul” on or before 17: 00 hours (IST) on September 20, 2011.

SITE DETAILS

1. The site of around 450 (four hundred and fifty) acres is located adjacent to the NALCO smelter plant in Banarpal Block of Angul District south of NH 42 and for the purpose of clarity it is delineated with red boundary line in the map under clause 2 herein below (the ‘Site’).

2. The Site is undulating in nature with no apparent physical encroachments and utility lines.

INFRASTRUCTURE LINKAGES

1. Approach Road: There is an access to the site from NH 42 through a single lane carriageway through Kulad village having a length of around 2.50 km. In addition, the Site is also connected by a single lane road of length 6.4 km from NH 42 running along the periphery of the NALCO smelter unit. An alternate dedicated approach road to the site from NH 42 is being planned by IDCO. In addition, the proposed Aluminium Park shall be having a connecting link road from the proposed Angul Bypass Road.

2. Rail: There exists a single track rail siding of NALCO which runs along the edge of the site till Budhapanka Railway Station with a length of about 14 km.

3. Water: Major perennial source of water for the site is river Brahmani to the north of the site on the other side of NH 42 at a distance of about 15 KM. To the extent possible, technologies and processes to be implemented by the prospective unit holders within the proposed park should aim at maximizing recirculation and reuse of water as major demand of water for envisaged processes is expected to be for cooling requirements. This would ensure in optimizing water requirements for the park on a sustainable basis.

4. Power: One of the major substations of the State is located at Meramandali (400/220/132/33 KV) which shall be approximately 7 Km from the Site. National Grid located at Chainpal near Talcher Thermal Power Station is also a likely source. Power shall be a key parameter for the Project and steps would be taken to consider sustainability.

PROJECT CONCEPT

1. Primarily, the idea is to promote aluminium based downstream and ancillary units in Orissa and to capitalize upon the inherent location based advantage for the Site. The current practice for the NALCO smelter unit is to extract aluminium having purity of about 99.97% through an electrolytic process in potlines at a temperature of around 10000c in molten form and then to utilize the same in casting standard billets, ingots, plates, wire rods, sheets etc. Aluminium in solid form as mentioned above is procured by downstream industries and utilized for different end products. Due to proximity of the Site with respect to the smelter unit, the molten metal directly may be procured by interested downstream industrial units within the proposed park and then utilized to form different end products as desired. Even considering issues like chances of oxidation, dross formation or heat loss during the transfer process for molten aluminium, advantages for prospective unit holders within the park using aluminium in molten form rather than the conventionally used solid form include:
• Savings in terms of energy costs for the downstream industrial units
• Reduction in terms of adverse environmental impact due to reduction in energy
requirement for the process and transportation needs • Better quality of the metal in terms of lesser chemical impurities
• Efficient management of inventory with minimized requirement of stock for unit holders

2. Under the Project, the Aluminium Park is being proposed to be developed as a state-ofthe- art industrial park for entrepreneurs in related business who shall set up new units within the park and utilize the molten metal as mentioned above. The existing customers of NALCO who currently buy the metal in conventionally available solid form and utilize it for various end products at locations away from the smelter unit in Angul may also relocate their plants/set up new units in the proposed Aluminium Park.

3. In addition, ancillary units may also set up units within the proposed Aluminium Park. There would be a mutually benefitting relationship between such units and NALCO.

4. The Aluminium Park would be so developed so as to fulfill comprehensively the functional requirements in terms of common facilities, physical and social infrastructure amidst a green environment. The suggested components that may come up within the the Aluminium Park include:
• Industrial Sheds / Plots
• Warehouses/Storage Facilities
• Common Facility Centers
• Material recycling and handling facilities
• Skill development centers and ITIs
• Landscaped (green) areas, Buffer Zones
• Truck Terminal and Parking facilities

5. The envisaged support infrastructure facilities for the Project to include:
• Reserved green space
• A systematic network of internal roads
• Regular supply of quality water with adequate storage facilities
• Reliable power supply to ensure maximization of production levels on a sustainable basis including renewable energy sources
• Promoting the use of solar energy to the extent possible
• Underground utility lines
• Fire fighting system for the Park
• Adequate parking space for trucks/others
• Common effluent treatment and solid waste disposal and management facilities including for hazardous and non hazardous wastes
• Sturdy storm water and Sewerage networks, Sewage Treatment Plant
• Common Rail Siding
• Banks / ATMs / STD – PCOs
• Public and Semi public facilities including Emergency Health Services, Crèche, Public Health Centers etc.
• Efficient and professional service-oriented Operations & Maintenance system
• Dedicated access controlled road corridor from NALCO smelter unit for carriage of molten aluminium

6. For the downstream industrial units, molten aluminium may be arranged to be supplied through a dedicated road corridor from the NALCO smelter unit with appropriate safety measures. Units may make payments individually to NALCO for the molten metal being used and a suitable pricing mechanism for molten metal shall be established by NALCO for the park including provisions for revision.

7. The suggested indicative products for the proposed Aluminum Park would include:

Downstream Industries of Aluminium
• Conductors
• Extrusions
• Castings
• Foil
• Others including powder

Ancillary Industries
• Raw materials like caustic soda, coal tar pitch, alum etc.
• Dross recovery unit
• Mechanical Items: Chisel Poker, LDPE sheets, Ingot skimming tool, etc
• Instrumentation Electronic Items: Alarm card, Pressure Switch, T/C sockets, photocell etc
• Refractory Items- like LCC lid cover, flue wall bricks etc.
• Miscellaneous Items- Hand gloves, casting wheel nozzle, cotton dust mask etc.

8. Products to be considered for commercial production within the proposed Park shall be decided based on mutual consent of the prospective Entrepreneurs/Manufacturers and AAPPL –the project SPV taking into account current and planned production facilities and commercial plans of the existing NALCO Smelter Unit adjacent to the proposed project site.

9 The aspect of current pollution level at the Angul Talcher Area shall be critically considered while assessing investment proposals and arriving at the final Project contours

Following is an excerpt from a report in Telegraph.

The Centre has cleared Tisco’s proposal for establishment of a multi-product special economic zone (SEZ) at Gopalpur, Orissa steel and mines minister Raghunath Mohanty told the Assembly today.

… Mohanty said the civil construction work for the project was currently in progress at the proposed site. The work for the boundary wall and road project has already begun.

At the proposed SEZ site, Tisco will set up an industrial park. The company will invest Rs 1,000 crore in the park and set up a 4-lakh tonne per annum steel rebar mill, a 55,000 tonne ferro chrome plant and a 1.2-million gallon per day water desalination plant.

For the infrastructure development, Rs 5,000 crore will be invested. Once the park is developed, Rs 15,000 crore will be invested for the development of downstream industries. Mohanty said: “The park will invite investment in steel, accessories of motor vehicles, apparel, gems, jewellery, speciality chemicals and other technical areas.”

Following is from a report in Pioneer.

Chief Minister Naveen Patnaik on Friday laid the foundation-stone of the second-phase expansion of the Global Software Development Centre of TCS here at Kalinga Park Phase II.  …. The State Government, along with the Central Government, is setting up of an IT investment region in the State where IT and electronics hardware industry is an important component, he informed.

Patnaik said that to achieve the objective, industry-friendly ICT Policy-2011, IT Roadmap, Special Economic Zone (SEZ) Policy and IT Hardware Policy are being prepared to attract more IT industries to the State. The State’s IT export has crossed Rs 13,000 million during the year 2010-11 with direct employment of more than 10,000 persons.

… TCS Vice-President Projects B Sharma said that the second phase expansion is expected to be completed by March 2012, which would add 3,500 seats to the operation here. After the planned third phase, the total number of seats would be 11,000. The capital expenditure on different phases of expansion is estimated to be Rs 500 crore.

Following is an excerpt from a report in Financial Express.

New infrastructure projects in Gujarat, Andhra Pradesh, West Bengal, Tamil Nadu and Orissa are set to get a major push in the five years starting 2012 as various government agencies will be prioritising building of roads, rail networks, airports and sea ports in these states that are setting up mega petroleum and petrochemical investment regions.

Five massive regions meant to attract investments in the petrochemical and allied sectors are now at various stages of implementation at Dahej in Gujarat, Visakhapatnam-Kakinada in Andhra Pradesh, Haldia in West Bengal, Paradeep in Orissa and Cuddalore and Nagapattinam in Tamil Nadu. These investment zones, each of which is not less than 250 square kilometres, are expected to attract a collective investment of R8,63,664 crore and create more than 40 lakh jobs during the 12th Five-Year Plan.

… “We will get infrastructure build for these projects using various existing schemes through appropriate prioritization,” K Jose Cyriac, department of chemicals and petrochemicals secretary, said. Government entities like the National Highways Authority of India, shipping ministry and the railways ministry would emphasise on fresh projects in these regions while allocating resources in the coming years. In the case of small connecting roads wherever required, the state governments concerned would include them in their own development plans.

In 2006 I wrote a letter to the Tata’ on their 100+ years of exploitation of Odisha in terms of taking minerals at throw away prices from Odisha and doing major CSR and development outside Odisha and contributing very little to Odisha per say, but a lot to India though. Following is are excerpts from a news item in Financial Express. If what is mentioned there really happens Odisha will half forgive the Tatas.

Tata Motors is likely to set up an automobile unit at the Gopalpur SEZ Industrial Park, which has been developed by Tata Steel.

“Talks are going on with Tata Motors to set up an automobile unit at the Gopalpur SEZ in Orissa,” said a senior executive of Tata Steel.

He said Tata Steel  … plans to manufacture finished products for the automobile industry.

“Obviously we would like to have Tata Motors set up its unit at the Gopalpur SEZ Industrial Park,” the chief resident executive of Tata Steel in Orissa, Rajesh Chintak, told FE. He said that the proposed industrial park will have a separate zone for the automobile and the auto-component industry, adding that the park is now generating a lot of interest among investors.

Chintak also said that the company is now concentrating on developing the park. Once the infrastructure is ready a clear picture of the possible investments will emerge, he added.

The Orissa government, in fact, is lobbying with the Tatas to set up an automobile unit in the Gopalpur SEZ. Even when Tata Motors withdrew the Nano project from Singur, the Orissa government tried to convince the automobile company to relocate the unit in Gopalpur.

Tata Steel, which is developing the SEZ Industrial Park over an area of 3,700 acres is proposing to set up a ferro-alloys plant with a capacity of 50,000 tonnes and a 4-lakh tonne cold roll re-bar mill with an investment of R10,000 crore to R15,000 crore as anchor tenant.

The managing director of Tata Steel HM Nerurkar … said the Gopalpur Park has received SEZ status. He said that the construction work for the project would be started once the statutory clearances like the environmental clearance are obtained.

The managing director said the first phase of the Kalinga Nagar steel plant will be operational by January or February 2014.

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

… Orissa Govt has gone  ahead to make budgetary provisions for providing basic infrastructure to attract the investors to this region. The expenditure requirement was discussed today in a high level meeting held under the Chairmanship of Chief Secretary Bijaya Kumar Patnaik in the Secretariat conference hall.

It has been decided in the meeting that the Project is to  covering 284.15 Sq.Kms. in Jagatsingpur and Kendrapara Districts will be developed in two phases viz. phase-1 covering 195 Sq.kms and phase-11 covering 89 sq. kms. The Project Proposal has been approved by Govt of India. IDCO has been selected as the Nodal Agency and IOCL selected as Anchor Tenant for development of PCPIR. The estimated budget for external infrastructure has been tentatively calculated at Rs.13634 Cr. The entire expenditure has been proposed to be borne jointly by Govt of Odisha, Government of India and Public Private Partnership.

The external infrastructure includes Green Field Coastal Corridor from Astarang to Dhamara via Paradeep ( 140Kms identified under Odisha and Andhra Pradesh PCPIR), Bhubaneswar- Paradeep Corridor(73 Kms.) , other Arterial roads, Port upgradation with new facilities, water supply, Taladanda  & Kendrapara canal lining, Captive Power Plant( 2x500MW) , New sub-stations and feeder lines, rail freight stations along with additional rail sidings, Logistic hubs near Bhutmundei, proposed air port , waste water treatment system and solid waste management. Up gradation of NH-5A ( 78 kms) to 4 lane  and expansion of Cuttack –Paradeep State High Way other important proposed  road projects. The total power requirement has been estimated at 2000 MW.

The demand of water for new projects in region will be 620 MLD  in different phases. Different water treatment systems like CETP & STP have been proposed at each of the chemical parks with estimate of 431 cr. Solid waste management system has been proposed  for disposal  industrial and domestic waste at the estimated cost of 200 Cr. Concerned departments have been directed to take up feasibility assessment and prepare detail project
reports for inclusion in state budget and recommendation to Govt of India for inclusion in 12th  Five Year Plan.

Following is from Dharitri.

Following is from a report in Economic Times by Nageshwar Patnaik.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) on Wednesday proposed setting up of 16 new clusters on public-private partnership [PPP] in Orissa each accommodating about 1000 units and providing direct and indirect employment close to 4 lakh people.

Releasing the ASSOCHAM study on "Cluster Development for Inclusive Growth in Orissa" National Secretary General, D. S. Rawat said, "The total funds required for basic and essential infrastructure to these clusters will be about Rs. 480 crores. Once functional, it will contribute additional 10% revenues per annum to the exchequer, help in inclusive growth and simultaneously lead to upgradation of existing clusters.

…  In the state, there are only 26 clusters in the state recognized by the Central government as against 6500 clusters in the country out of which 450 are assisted by the government. The 16 new clusters suggested by ASSOCHAM are: Palasa (Cashew), Buditi (Brass & Bell Metal), Baripada (Sabai Grass), Dhenkanal (Powerloom), Puri (Rice Mills), Bhadrak (Rice Mill Cluster), Dhamara (Ice Plant), Basudevpur (Ice Plant), Chandbali (Chuda Cluster), Tihdi (Chuda Cluster), Basudevpur (Chuda Cluster), Bhandaripokhari (Honey), Dhamara (Honey), Betaligaon (Wood Carving), Olaga (Wood Carving) and Dhusuri (Wood Carving).

The MSME sector contributes around 40% to GDP with an estimated value of goods and services around Rs. 20 lakh crore in 2009-10. The sector is estimated to employ about 5.9 crore people in over 2.6 crore units in the country and has consistently registered a higher growth rate than the rest of the industrial sector. There are over 6000 products ranging from traditional to high-tech items, which are being manufactured by the MSMEs in India.

Following is from Sambada.

The various news reports that initially came after Mr. Jindal met the CM, such as the above, did not mention anything regarding Mr. Jindal wanting iron ore linkage for his steel plants. But reports on the next day mentioned that. Following is an excerpt from a report in Financial Express.

The Jindal Steel & Power Ltd (JSPL), which is all set to commission its 2 million tonne steel plant next month, is desperately looking for iron ore linkage.

JSPL vice-president and managing director Naveen Jindal urged Orissa chief minister Naveen Patnaik for allotment of a captive iron ore mine for the plant.

Jindal met the Orissa CM on Tuesday and discussed the steel project and the captive power plant.

Sources in the government told FE that the JSPL managing director has requested the chief minister Naveen Patnaik to ensure raw material security for the plant through suitable iron ore concession.

Following is from a report in Economic Times.

What’s in it for the locals?

Asit Swain, who lives in Nawagaam, one of the affected panchayats, told ET that the compensation package has been finalised. Farmers will get Rs 11,500 for every decimal (one-tenth of an acre) of betel vine plantations and Rs 18 lakh for every acre where two crops can be grown in a year.

Those growing cashew or farming prawns on government land (without land titles) will get Rs 2 lakh per acre. As for the landless,they will get Rs 2,250 per month till they find employment. They will also get a sum, added Swain, equal to a fifth of what the betel vine cultivators and farmers get.

In addition, two months ago, Industrial Promotion and Investment Corporation of Orissa (Ipicol) recommended a new clause be added to the MoU stipulating that 90% of the unskilled and semiskilled workers, 60% of the skilled workers and 30% of the managerial posts in the project be hired from the local community.

What’s in it for Posco?

Clearly, the project continues to be hugely lucrative for Posco, which is why the company is staying on despite all these delays. The company will get a guaranteed supply of iron ore for at least 30 years, a commodity, whose prices have soared 43% since the beginning of last year.

From recent news that are coming out (see for example,  http://www.business-standard.com/india/news/anti-posco-brigade-hit-hard-by-defectionvillagers/434888/ ) it seems like the POSCO project will now sail through.

With that assumption, I suggest that the government take better care of the people that are being displaced and keeps it focus on the "From mineral resources to Human resources" theme.

To take better care of the displaced people:

(a) the government must have a mechanism to ensure that the compensation paid to the people is not blown away in a year or 2 and the displaced people have nothing to fall back on. Some approaches such as annuity payments for part of the compensation and making the people a shareholder of the plant with specialized shares, which can not be sold immediately, need to be considered. In addition the R & R must include the education of all kids (of displaced people) in decent schools (DAV type), similar to what Vedanta University Project was/is(?) doing in Puri.

To address the "mineral resources to Human resources" goal:

(b) the government must insist that POSCO establish in Odisha a significant branch (or a similar institute) of its top ranked (in research) university POSTECH of S. Korea. This is the least they can and should do for being assured of raw minerals at a low low price.

(c) the government must insist that POSCO establish more of its ancillaries in Odisha itself rather than in other states.

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 Business Standard.

The State Level Single Window Clearance Authority (SLSWCA) on Monday cleared two projects in the energy sector involving a total investment of Rs 1,045 crore.

The projects which got the nod of the Single Window authority are those proposed by Hyderabad-based Primo Power & Infra Ltd and Konark Kanti Energy Ltd.

Primo Power & Infra Ltd has proposed to set up a 60 MW coal-fired thermal power plant at Gania village in Nayagarh district at a cost of Rs 300 crore. The power plant will create direct employment for 80 people.

"Konark Kanti Energy Ltd will set up 110 MW coal-based power plant at Baghiapara in Boudh district at an investment of Rs 435 crore. This project will generate direct employment for 70 persons. Besides, the company has also proposed to set up a petroleum based downstream industry at Paradip at a cost of Rs 200 crore and a petroleum storage tank at Dhamara at Rs 110 crore", T Ramachandru, principal secretary (industries), Orissa government told reporters after the meeting of SLSWCA chaired by the state Chief Secretary B K Patnaik.

Following are excerpts from a report in netindian.com.

The Planning Commission has made a case before Prime Minister Manmohan Singh to give special attention to certain industry sectors, which will help fulfill key objectives of the 12th Plan (2012-17), including employment, deepening technological capabilities, those with global competitive advantage and aimed at providing strategic security.

… For instance, the sectors which will create large employment include textiles and garments, leather and footwear, gems and jewellery and food processing industries.

There are sectors which deepen technological capabilities. These are machine tools, IT hardware and and electronics.

The sectors listed by the Commission which provide strategic security include telecom equipment, aerospace, shipping and defence equipment.

The sectors which relate to capital equipment for infrastructure growth are heavy electrical equipment, heavy transport and earth-moving equipment.

The sectors with global competitive advantage include automotive, pharmaceuticals and medical equipment.

… The presentation says land and infrastructure constraints are a major problem. The States should develop "Special Industrial Zones" with good connectivity and infrastructure.

It argues that clusters need to be supported to enhance productivity of MSMEs.

The industry sectors mentioned above seem to be among the ones that will generate large job opportunities. The Odisha government should be proactive in going after players in these sectors and creating clusters on some of these sectors. It needs to broaden the industry sector in Odisha beyond mining and mineral processing.

Following is from http://www.everestind.com/news-detail.asp?descid=298&CatID=711.

Everest Industries said it would set up a Greenfield project in Orissa with an investment of INR 50 crore, which will help it to achieve a total turnover of INR 1,300 crore in the next two years.

Spread over 20 acres of land, the new plant, which will be the company’s sixth facility, would have a total capacity of 180,000 tonne of fiber cement and steel fabrication.

Mr Manish Garg president told reporters that “The new plant will involve an investment of INR 50 crore and it will come up at Balasore in Orissa and will be commissioned in next 15 to 16 months time.’

Everest Industries is now eyeing pre-engineered buildings segments in a big way in the field of automobile and warehousing sectors. He said that “We are aiming to generate a business of INR 200 crore from pre engineered buildings segment after focusing on warehousing and industrial segment.’

The company, which clocked sales of INR 650 crore in last fiscal, is aiming to grow to INR 1,300 crore by 2012—13 after the new plant starts at Orissa.
Mr Garg said that “By the end of next fiscal, our sales will reach INR 1,000 crore and thereafter it will move to INR 1300 crore.”