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Following is an excerpt from a Reuters report.

Officials in Orissa said on Thursday they had earmarked 7,000 acres of government and private land for a steel project proposed by Arcelor Mittal.

Last December, Arcelor Mittal, the world’s biggest steel maker, signed a multi-billion deal with the state government to build the 12 million tonne plant, and is also planning a similar sized steel unit in Jharkhand.

“We have cleared 7,000 acres of land for the steel project and captive power plant so that they can start work (aquiring land),” Orissa’s Industry Secretary Ashok Dalwai told Reuters.

He said most of the land was owned by the state but Arcelor Mittal would have to purchase some from farmers, a potentially controversial process the Orissa government would facilitate.

Hundreds of families are living on the state-owned land and would have to be moved.

The company still has to tie up a mining lease.

… The Arcelor Mittal project also includes a 750 MW power plant. The company had asked for 1,000 acres (400 hectares) on which to build homes for workers, in addition to 7,000 acres for the steel plant itself.

Supporters say the project would provide jobs for 5,500 people directly and another 15,000 indirectly.

In July, Arcelor Mittal Chief Executive Lakshmi Mittal had said that a detailed project report would be ready by mid-2008 and the first phase of the plant would be commissioned within four years of the report’s completion.

State officials said on Thursday the project would only get formal clearance once that report had been submitted.

From Arcelor-Mittal’s actions I get the feeling that they are trying to bully the Orissa government. In comparison, Vedanta has been accommodative in its land requirements for the university. But may be the bullying strategy would work for them. However, they got to be careful; if local people get more mad, and the government gets fed up with their bullying then the whole thing may fall apart.

Following are excerpts from a report in domain-B.

The Larsen & Toubro Ltd (ECC division) consortium with Italy’s Paul Wurth has been awarded a Rs1,205-crore turnkey construction contract for Bhushan Steel’s 2.5 million TPA blast furnace at its Meramandali plant in Orissa. …

L&T’s share in this project is pegged at Rs760.5 crore from this order, scheduled for completion in April 2010.

Paul Wurth’s scope covers basic engineering, supply of proprietary and special equipment and technical supervisory services while L&T’s scope covers detail engineering, supply of indigenous mechanical, electrical and instrumentation works including complete site services involving civil structural and erection works.

The project is the consortium’s third successive order for the construction of large capacity blast furnaces in the last two years, which is presently executing the 2.5 million TPA (MTPA) blast furnace on turnkey basis for Tata Steel at Jamshedpur, currently nearing completion.

Recently, the consortium bagged another order from Tata Steel for the 3.2 MTPA blast furnace at its Kalinganagar Project. In addition, it also commenced work on the 2.5 MTPA blast furnace for the public sector Rashtriya Ispat Nigam Ltd, Vishakapatnam.

Following up on the report in our previous entry, another political party, albeit with a small presence in Orissa, has come out in support of POSCO. Following is an excerpt from Pioneer.

The Samajwadi Party has lent its support to the pro-Posco villagers in their bid to cooperate with the officials for land acquisition for the company’s steel project. The party’s State president Baisnab Charan Parida, in a statement, said adequate compensation to the evacuees and their proper rehabilitation, training to the local people for employment and a thorough discussion with the supporters and opponents of Posco on development of education, health and communication facilities in the peripheral area by the company official as well as the State Government should be taken up at the earliest.

In an era of globalisation, if a country hesitates to open up its economy and decry establishment of industries by multinationals, it would remain backward, he added.

POSCO has also come up with some novel opportunities for the displaced people. Following are excerpts from a Business Standard report.

Korean major considers offering locals an export market in addition to compensation.

Korean steel giant Posco is taking a novel route to persuade land-owners to sell their land in Orissa’s Jagatsinghpur district where its Rs 52,000 crore, 12 million tonne steel plant is to be located.

Apart from monetary compensation for the land, Posco is offering the 140-odd fishermen families that will be displaced by India’s largest greenfield steel plant an assured market for dried fish and mango pickle in South Korea.

The company, which has been facing stiff resistance from locals who will lose land to the project, proposes to train fishermen in the area to produce the dried fish coveted by Koreans, according to a Posco India spokesman.

“Around 160 families in the periphery have shown interest and will be included in the programme,” he said. He said some 160 families on the periphery of the project had accepted the proposal.

A similar programme is being planned for betel vine cultivators. “They have shown interest in fruit, especially mangoes. We will get pickle manufacturers to collaborate with them and export these products to South Korea,” he added.

A socio economic survey, which is still being conducted, indicates that there are around 50 betel vine owners and 1,000 cultivators for 1,200 betel vines. “Not just the owners, the cultivators will also be included in the programme,” he said.

The plan has been suggested as a solution to the vexed problem of compensating land-losers by offering them sustainable livelihood. At the same time, it will meet a growing demand for dried fish and pickle in Korea. According to reports, Korea’s imports are expected to exceed exports due to depletion of fish resources. Its pickle demand is primarily met by China.

…“The products developed by the fishermen and betel vine cultivators will be exported to Korea through Posco’s captive port. After meeting the demand in the Korean market, they can be exported to South East Asia,” the spokesman said.

Posco India is currently in the last leg of its land-acquisition programme. Of the required land of 4,004 acres, the Orissa government is to provide 3,566 acres (of which it is yet to get possession). The company will have to buy the remaining 438 acres of land directly from land-owners.

The rehabilitation & periphery development advisory committee (RPDAC) is expected to meet shortly to decide on the compensation package. The committee comprises representatives from the government, the company and the local people.

The private land covers three gram panchayats — Gada Kujanga, Muagaon and Dhinkia, the latter being the largest tract covering 200 acres and has been the most aggressive in leading an agitation against Posco’s steel plant.

However, the Posco spokesman said, things have improved and the survey indicated that around 90 per cent of the people wanted to shift to other means of livelihood.

Following is a report from Samaja on this. This is what more legislators of the area should be doing, but without fighting among themselves.

See http://tathya.in/story.asp?sno=1185.

In the following wikimapia map the location is either to the right or left of the spot labeled as "Patna."

Following are excerpts from a Telegraph report.

The Indian company, which became the sixth largest steel maker after buying Corus of the UK in January, plans to start construction work on its proposed 6-million-tonne integrated steel plant at Kalinganagar in November. …

Problems over land acquisition and mining leases have slowed progress on the Tata and Posco projects. Mittal’s Jharkhand project is facing the same predicament.

Tata Steel managing director B. Muthuraman, who met chief minister Naveen Patnaik in Bhubaneswar on Thursday evening, said the company had sought mining leases for iron ore and expected to get them soon. Corus chief executive officer Philippe Varin accompanied Muthuraman.

The challenge before Tata Steel is now to relocate the families living on the land where the plant will come up. So far 620 of 1,200 families have been shifted. Tata Steel will start construction once another 200 families are relocated.

Varin said Corus and Tata Steel would be working together to set up the Kalinganagar plant and the best technology would be used. The first phase would call for Rs 6,000-crore investment, while the total project would cost Rs 15,000 crore.

The company was allocated 2,000 acres for the plant at Kalinganagar. The Orissa government is to recommend Tata Steel’s case for a mining lease after 25 per cent of the order for the plant and machinery is placed. Sources said the company had started placing orders worth Rs 4,500 crore for a blast furnace, sinter plant and coke oven unit.

The company wants iron ore mining leases at Mankadanacha and Baliapal to be restored. They were scrapped after the company failed to set up a steel plant in Gopalpur in the nineties.

State steel and mines secretary U. P. Singh said the government would consider Tata Steel’s application for mining lease according to procedures. …

The Orissa plant is a building block for Tata Steel’s integration with Corus. It will make primary steel here which will be sent to Corus’s west European finishing mills.

Follow are excerpts from a Statesman report.

The high powered committee headed by chief secretary Mr Ajit Tripathy today cleared 16 investment proposals, entailing an investment of approximately Rs 30,000 crore.

The projects mainly in the power, steel, aluminium and cement sectors were amongst the 40 project proposals placed before the committee. There were three steel and three power projects amongst the 16 which got the nod today.

Significantly while the Ashapura mines chemicals project proposal for a aluminium refinery was approved, the aluminium project of IMFA Group headed by Dr Bansidhar Panda was held up.

… two task forces had been constituted to further evaluate the proposals in the cement and power sectors. The Industry secretary will head the task force for cement sector projects while the development commissioner will be in charge of the task force for power projects, …

The power projects cleared by the committee today included the Bhusan Energy project which intends to establish a 2,000 MW thermal power plant at Angul with an investment of Rs 8,483 crore. The Visa Power Limited’s 1,000 mw Thermal Power plant at Brhamnabasta in Cuttack district at a cost of Rs 3,698 crore was also cleared while the third power project was of Monnet Energy at Sundergarh. It will be a 1,000 mw plant.

The Rs 4,232 crore aluminium project of Ashpura Mines Chemicals to come up in Koraput district was cleared. It aims at setting up a 5 lakh ton refinery and a 1.5 lakh ton smelter plant besides having a 300 MW captive power plant .

The Committee approved the three new steel plant projects and the expansion of existing five steel projects in the state.

Bonei Industry company’s project to set up a plant at Sundergarh at a cost of Rs 302 crore, M/s Rungta Sons Ltd’s proposal to set up a steel plant at Barmunda at a cost of Rs 930 crore and Free Grade company Ltd’s steel plant at Dhenkanal at a cost of Rs 603 crore were also cleared.

Expansion proposals of SMC Power Generation and MSP Mettalics at Jharsuguda, Braja Ispat, Rourkela and the Keonjhar Orient Ispat were given the go ahead by the committee.

ACC Cement’s proposal for investment of Rs 400 crore for its capacity development was approved while Goa Carbons Ltd’s proposal for a CPC coke plant with an investment of Rs 225 crore was also cleared.

Following are excerpts from a report in english.chosun.com.

… After a rough start, POSCO is expected to finally have a site allocated for a planned steel mill in India, while an investment in a new Vietnam steel mill is likely to move ahead in October.

According to POSCO on Wednesday, the Indian government recently made it known that they plan to determine whether to give environmental clearance for the 4,004 acre site in Paradip in the province of Orissa.

Some 3,566 acres or 89.1 percent of the site of the planned one-stop steel system belongs to the government. Of that, 3,097 acres (86.9 percent) is forest land. For now, POSCO has only secured 193 acres (4.8 percent).

A POSCO official said, "The final decision has not yet been made, but we heard that the site might be released from the forest zone soon. The state-owned land accounts for nearly 90 percent of our site. In other words, if the area is released from the forest zone, the biggest obstacle to our effort to secure the site disappears."

Following is Samaja’s report on this.

The following article from Samaja explains why people in Orissa (and India) do not believe companies’ promises. If what the article says is true it is shameful on the part of Tatas to behave that way.

Following are some excerpts from a PTI report in Economic Times.

Setting at rest speculation on the fate of its Rs 52,000 crore steel project, South Korean giant Posco has decided to begin construction work on the 12 million tonne plant in Orissa by October.

“We will begin construction work of our 12 MT project in Orissa’s Jagatsinghpur district by October on whatever land we have acquired so far,” Posco India Chairman and Managing Director Soung Sik Cho said. …

“We believe things have undergone a sea-change during the last few months. People are clearly convinced that they will benefit from the project. Now they have a better understanding of the entire situation,” he reasoned.

Posco was also enthused after the union government gave environmental approval to the project. Moreover, the Naveen Patnaik government in Orissa has been asked by the Centre to take the mega investment process forward.

“Actually things are now looking much brighter. We have also received the official nod for our captive port project at Jatadhari, which has also encouraged us,” Cho pointed out.

The Korean steel giant has decided to begin construction work initially on 400 acres of non-forest land, and then on the revenue land to be given to it by the Orissa government.

“Now the only issue remains to be resolved is granting captive iron ore mines to us. But here also I believe things are moving in the right direction,” Cho said.

Following are excerpts from an Economic Times report.

Siemens Ltd on Friday said it has bagged an order from Jindal Stainless (JSL) to carry out installation related work for latter’s greenfield plant in Orissa.

The company has bagged the order along with Siemens VAI, a division of the Siemens Group Industrial Solutions and Services (I&S), Siemens Ltd said in a communique to the BSE. However, it did not divulge any financial details.

“It (the order) was bagged on the basis of our ability to come up with a fully integrated solution and our track record in executing project in the metals sector,” Siemens Ltd Executive Vice-President (Industrial Services and Solutions Division) N Sivasubramanian said.

As per the contract, Siemens would undertake plant layout for the hot-strip mill and equip it with latest tools. Production is scheduled to start in 2009.

JSL already has an operating plant at Hisar in Haryana and the new plant would be set up at Kainganagar Durubi Duburi in Orissa as part of its expansion plans.

Siemens would also provide customer training, monitor installation of all the components and systems as well as commission the installation, including fine adjustment of the technological models and control systems. The plant would be designed to produce 1.6 million tons of stainless steel strips in the first phase, Siemens added.

Times of India mentioned that 

Orissa government has asked the Arcelor-Mittal group to reassess the land requirement for its proposed greenfield steel project in Keonjhar district.

A similar report was also published in Business Standard saying that

Worried over the resistance of the people to land acquisition and allegations of land grabbing by industrial houses in the name of setting up industries, the Orissa government intends to make realistic assessment of the land requirement of various industries interested in setting up manufacturing facilities in the state. In the process, the government has decided to take a re-look at Arcelor-Mittal’s land requirement for its proposed 12 million-tonne-per-annum steel plant in Keonjhar district’s Patna Tehsil. This follows a presentation by the company to the state industry department officials on the project.

The company has sought 8,000 acres for the project, which includes land for construction of a 750MW captive power plant and a civil township. However, all indications are that only a ‘reasonable’ piece of land will be given to the company.

Earlier we reported on a news item on this in an English media. Following is Samaja’s take on this.

The Hindu reports that environmental clearance has been granted to POSCO steel plant. POSCO has earmarked 1,525 crores for environmental pollution control as per the Ministry of Environment and Forests (MOEF) as well as the state government conditions. Excerpts:

“The Ministry of Environment and Forests has given the environmental clearance for Posco’s mega steel project at Kujang near Paradip in Jagatsinghpur district of Orissa,” highly-placed official sources said.The Korean steel giant had signed a Memorandum of Understanding with the Orissa government in June 2005 pledging an investment of Rs 52,000 crore for setting up the plant.

“The project authorities shall utilise Rs 1,525 crore earmarked for environmental pollution control measures judiciously to implement the conditions stipulated by the Ministry of Environment and Forests (MOEF) as well as the state government. The funds so provided shall not be diverted for any other purpose,” a source quoted the Environment and Forests Ministry as saying, while granting clearance.

The clearance has been granted to the world’s third largest steel manufacturer for installing furnaces using FINEX technology only and on the condition that gaseous emissions from its various units should strictly conform to load/mass based standards notified by the government.

Earlier in April, the MOEF had granted its approval under Coastal Regulation Zone to the Korean steel giant’s proposal to set up a captive port at Jatadhari at a cost of Rs 17,113 crore.”

Hindustan Times and others report on this. Following are some excerpts from the Hindustan Times report.

Steel baron Lakshmi Mittal’s global giant Arcelor Mittal is planning to advance the construction at its 10 million tonnes (MT) Orissa plant and hopes to begin initial construction by mid-2008, as against the earlier date of 2009. …

The first phase of Arcelor Mittal’s plant in Orissa, with a capacity of six million tonnes, is likely to be commissioned by 2011.

The company has appointed Dastur & Co to carry out a detailed project report and environment management plan for the two sites, which are currently underway. Chief Executive Officer of Mittal Steel India Ltd, Sanak Mishra, said that major construction work in the site will be taken up in 2009 and the company has finalised the product mix of the proposed plant for both long and flat products.

Economic times reports that Orissa based company Scan steel is tying up with Delhi based steel major ‘AISCO’ for production and marketing under brand name ‘AISCO TMT’.

Perhaps, Industries in Orissa should learn to develop their own brands. Excerpts:

‘Delhi based steel company, AISCO and Orissa based SCAN Steel Group have tied up to undertake production and marketing of Steel TMT Bars under the brand name of AISCO TMT.The Group will take on the process of reduction of iron ore, making of sponge iron and casting of billets at its fully integrated facility at Orissa.

TMT Production will be undertaken at its main rolling unit at Orissa and various other group-owned and conversion units located at various parts of the country.

According to Mr. Praveen Aggarwal, Managing Director of AISCO Group, this will help them move towards overall growth of the company and the group will provide quality material for use in construction Industry and educate the consumers about shortcomings of poor quality steel available in the market.’

Economic times reports that Some Punjab based industries plan to invest in Orissa.
The reports state that Arti Steel has already invested 450 crore out of a total investment of 900 crores. The first step in Auto parts investment is being planned with GNA Axle.

Even Hero Honda , bicycle manufacturer plans to invest in Orissa. Hopefully, this will be the start of a trend. Excerpts:

“Orissa’s rich natural resources are now luring the industries in Punjab, with the an auto parts maker and steel manufacturer committing separate investments to the tune of Rs 960 crore to the state.

While Ludhiana-based Aarti Steels had committed an investment of Rs 900 crore for setting up a half-a-million capacity steel unit in the state, Goraya-based auto parts manufacturer GNA Axle Group will invest Rs 60 crore for manufacturing axle shafts, gears for heavy vehicles.

Leading bicyle maker Hero Cycles is also quite keen on exploring the possibility of making an investment in Orissa.

“We have proposed to invest Rs 60 crore within the next four years in order to set up an auto component manufacturing unit which will cater to export as well as domestic markets,” GNA Axle Group Director Randeep Singh said.

The Orissa government has promised to make available 100 acres of freehold land to the company at a token amount of Rs 2 lakh per acre. In addition to it, the government has also offered power at a rate of Rs 2.90 per unit without excise duty.

“We set up our unit in March 2003 in Orissa after carrying out a survey. The state can offer many benefits in the shape of availability of raw material for steel producing unit like us. So far, we have invested Rs 450 crore in this project while balance will be invested soon,” said Aarti Steels Director Rajeev Mittal.

The unit is is expected to be completed next year, he added.

“In Orissa, besides getting cheap power, we will also be in a position to get raw material at a much cheaper rate as we will be nearer to the source of raw material,” reasoned Singh while adding that with this new unit, our freight cost would also get reduced significantly for supplying our finished products to domestic as export markets.

Leading bicycle company Hero Cycles is also quite keen on exploring the possibility of making an investment in Orissa. “We will certainly explore the possibility of investing in that state which is full of natural resources,” Hero Cycles, Director Vijay Munjal said.

Recently, a high powered delegation including Commissioner-cum-secretary, Department of Industries, Orissa, was in Punjab for inviting industrialists to tap the investment opportunities here.“

Business standard reports that some of the betel cultivators have accepted POSCO’s compensation for these Betel farms.

Also, It must be noted, that these Betel cultivation was being done in Govt. enroached land. Currently out of 4004 acres required by POSCO, 3567 acres is Govt. land and 438 acres is pvt. land.

Excerpts:

In a major breakthrough in the imbroglio over land acquisition for Posco’s 12-million-tonne steel project near Paradip in Orissa, betel cultivators at Nuagaon village, within the project site, have dismantled their vineyards in lieu of compensation.

According to sources, four betel farm owners have accepted compensation to the tune of Rs 4.8 lakh, while 20 more who had surrendered their claim on betel vineyards are expected to be paid around Rs 15 lakh in a couple of days.

The farmers are being paid according to the rate fixed by the state government. Company sources said they had received about 200 applications from local farmers for payment of compensation for the surrender of their claim.

These were being verified and would be cleared in a phased manner, they added.

It may be noted that betel leaves are mostly cultivated over encroached government land in the proposed Posco plant area. There are about 1,600 betel farms in Nuagaon alone.

Posco required for its plant 4004 acres of land in three grampanchayats, namely Dhinkia, Nuagaon and Gada Kujanga. Of this, 3567 acres is government land and 437 acres is private land. Most of the government land, however, is encroached upon by betel cultivators.

It may be noted that about 3,000 people working at the betel farms in Gadakujanga, Dhinkia and Nuagaon are among the most vocal opponents of the project as they fear loss of employment.

They have become soft targets for anti-Posco agitators. Keeping this in mind, the state government is framing a separate package for these workers, in addition to the existing rehabilitation and resettlement (R&R) policy formulated last year.

According to state Chief Secretary Ajit Tripathy, the stalemate over land acquisition is gradually giving way and people in the site area are coming out in support of the project.

Economic times reports that Mittal is more postive of the progress in Orissa for it’s steel plant.

Excerpts”

BHUBANESWAR: Arcelor-Mittal group CEO L N Mittal expressed his preference for the company’s proposed mega steel plant in Orissa over the one planned in Jharkhand, even as the Orissa government committed itself to provide requisite land and raw material for the greenfield project.If things go as planned, Mittal even indicated to CM Naveen Patnaik and senior government functionaries that the world’s largest steel company is keen to start leg work in January 2008.

“We are very happy with the pace of progress in Orissa. We would certainly prefer Orissa to Jharkhand considering the progress,” Mittal said, emerging from a 150-minute meeting with the CM and his team.

“We are all working hard towards starting the project as fast as possible,” he told reporters, without mentioning any deadline. The steel moghul said he was “very happy” with the way things have moved ever since the company signed an MoU with the state government in December 2006 for a 12 million tonne per annum steel plant in Keonjhar district.

“The Dastur co is preparing the detailed project report and it should be ready by mid-2008,” he said.

On the mines linkage, Mittal, who was accompanied by his son Aditya and Mittal-India CEO Sanak Mishra, said after the “very detailed discussions” with the CM, he was “very confident” about getting required access to mines. He added that he was “very optimistic” about effectively tackling rehabilitation and resettlement issues.

According to official sources, the steel monarch requested the state government to acquire at least a part of the 8,000-acre land earmarked for the project, especially the encroachment-free government land, so that the company could begin some “work on the ground early next year”. Mittal, the sources said, sought to know about the mining linkage and the government assured him full support without committing any specific mines.

In the last two days couple of press releases have come out from the Minister of Steel, Chemicals and Fertilizers, Mr. Ram Vilas Paswan. The first one assures POSCO of all help and the second one assures Laxmi Mittal about his support for ore linkages for his proposed steel plants in Jharkhand and Orissa.

Kalingatimes reports that Posco is definitely interested in the Orissa project.
Excerpts of the Article below

… The latest statement from the authorities of POSCO-India makes it clear that they were here to stay – to pursue their 12 million tonne per annum capacity steel mill project in Jagatsinghpur district.

…, the company has said in a statement that it was `confident, determined and committed’ to make its Orissa steel project happen. …

But the company has said that as per its human resource plan, overseas staff deployment in POSCO-India project was purely need based.

“Staff deployment is in relation to specific assignments and the employee moves with the changes in assignment. Accordingly, when the construction phase begins, there would be reallocation of staff from overseas in large number,” a statement from the company said.

Although there had been undue delay in the implementation of the project due to non-acquisition of land for the proposed steel plant, the company has announced it was hopeful of starting ground leveling work by December this year.

“The company is further encouraged by the support extended by Government of Orissa as well as Government of India for expediting the project,’ the statement said.

“Going by the recent developments, the company is happy to note that there is a greater understanding and wider consensus in favor of the project building up at all levels, notably among people in the project site.” …

If official sources are to be believed, … POSCO authorities were ready to wait for several more years to implement the project.

“The main worry of POSCO-India authorities would be over the day they were granted prospecting licence for the Khandadhar iron ore mines by the Central government.

As regards the people’s opposition to displacement by the proposed steel plant in Jagatsinghpur as well as the move to grant of prospecting licence to the company for Khandadhar mines, sources said that POSCO was used to such resistance.

“They are hopeful that things will slowly start changing and the opposition will lose strength in due course,” a senior government official observed.

Rehabilitation process begins

Meanwhile, the company, in association with the district administration, has started the process for rehabilitating 48 families that had left Patna village under Dhinkia panchayat of Jagatsinghpur following their differences with those who were against the setting up of the steel plant in their locality.

The company was hopeful that a transit camp for the 48 families would come up within four weeks. Simultaneously, efforts were being made to select a site for constructing a full-fledged rehabilitation colony for these families.

A company official said that once the habilitation colony was set up it would attract people from the camp that was opposed to the project.

The families which had come out of their villages on their own and were supporting the project would be given rehabilitation benefits under the provisions of the existing Resettlement and Rehabilitation Policy of the State.

Going by the company’s stand, it appears clear that they might start thinking in terms of packing their bags only if the both the Central Government and the State Government expressed their unwillingness to extend help. But going by the eagerness on the part of both the governments to help POSCO-India, such a situation was unlikely to emerge in the next few years. After all, POSCO-India’s steel project still continues to carry the tag of biggest ever foreign direct investment in the country.

This sounds like a good reinforcement of it’s commitment to the Orissa project.