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Tehelka interview with Finance minister: some relevant excerpts

ADMINISTRATION & REPs, CENTER & ODISHA, EXPOSING ANTI-ODISHA-GROWTH SCHEMES, INDUSTRY and INFRASTRUCTURE, INVESTMENTS and INVESTMENT PLANS Comments Off on Tehelka interview with Finance minister: some relevant excerpts

Following is excerpted from a Tehelka interview. SC is one of the inerviewers Shoma Chaudhury.

SC: China has just six SEZs. But our Board of Control cleared more than 200 SEZs in its first sitting. I know that privately you…

It doesn’t matter what I think. We are not talking off the record, and I am reluctant to talk about it because I am bound by government policy. There is some consternation about the way the policy is operating. An empowered group of ministers has been asked to look into it. It’s taking more time than I would have liked, but hopefully some of the concerns expressed will be addressed.

SC: But our industrial projects, our growth centres, our cities have zero concern about environment, human life. Shouldn’t quality of life — a sense of well-being — be a factor in the growth story? France is revising what its GDP should mean to include the intangible but crucial idea of “well-being”.

Yes, but that’s after you reach a certain level of GDP, a certain degree of per capita.

SC: That’s the point. First we must arrive at the crisis, then we will look for the remedies.

Poverty is the worst polluter. If you are poor, you live in the most polluted world. The sanitation is poor, the drinking water is poor, the housing is poor, the air you breathe is poor. Everything is polluted. Poverty is the worst polluter. It’s our right, our duty, to first overcome poverty. In the process, yes, we will be sensitive to concerns expressed by other countries but not at the cost of our growth and our goal of eliminating poverty in our lifetime.

SC: The worrying thing is that on the ground the exact opposite of what you say is happening. Take the POSCO project or Vedanta or the sponge iron factories in Raigad. It is the poor who are suffering the most from the move towards industrialisation. Most of the unrest in the country today is over development projects that are anti-people — in terms of land takeover, resource usage, pollution of water and air. On the very things you talked about — air, water, basic health, basic living — the growth that is meant to alleviate poverty is adding to their misery. Do you call this inevitable collateral or would you admit the way we are going about things is wrong?

I think people are being deceived to believe that the existing state of life is an ideal state of life and development and industrialisation will make it worse. Here we talk about steel prices going up, but for three years we have stopped the world’s largest steel producer from producing steel in India. This could be categorised as a conspiracy of the socially-driven class to keep poor people poor. What is the quality of life we are talking about? They have no food, no jobs, no education, no drinking water. These districts of Orissa have remained poor since the world dawned. They live in abject poverty and you want me to accept the argument that if you set up a steel plant or mine the minerals there, they will become even poorer? What are we talking about?

SC: I am talking about the way it’s done. So what do we do?

We keep the minerals buried in Mother Earth? We keep the iron ore where it is, we keep the coal where it is and keep people poor? Is that what you’re suggesting? I’m telling you, we must develop those iron ore mines, we must mine that coal, we must build industries, we must give jobs to people. If this argument had prevailed there would be no Jamshedpur, and today the quality of life in Jamshedpur is better than in any other city in India. It has 24 hours water supply, electric supply, it has education for all its residents, and it has cleaner air than any other city. Had these people been around to advice Mr Jamshedji Tata in 1908, there would have been no Jamshedpur at all.

SC: There’s little evidence to go by. There was a culture of collective good and nation-building which no longer exists.

I don’t agree that the only ones with conscience and sensitivity to the environment are NGOs, and that business houses and entrepreneurs have no conscience and are totally oblivious to the larger good. I don’t agree at all. Just go to Neyveli and see. What was Neyveli? It was the poorest part of Tamil Nadu and today it is a humming, buzzing town and it has a school which has hundred percent pass results every year. The boys and girls from that school are toppers in competitive examinations. I sincerely hope you do not believe the poor enjoy a high quality of life.

SC: Our governments have been pretty derelict in regulating or nudging corporates to behave well. The Vedanta project in the Niyamgiri hills in Orissa is a good example. It earned international censure for its untenable behaviour in Orissa, a Norwegian fund even divested from it because of that. But here it took a PIL to stall the project. Would you agree that our government is failing to bat for the common good?

We have enough laws to take care of the issue. Apply those laws. If the Central or state government does not enforce environmental laws then blame that government. If the laws are inadequate, strengthen them, but in the name of the environment, for heaven’s sake, please don’t say that the poor should remain poor for the next five thousand years.

SC: Take Vedanta again. I’m asking what is the view from the other side, what is the government’s thinking on them? Even after they were stalled by the Supreme Court, the government asked it to reapply for the project under its Indian company. You argued as a lawyer for them when you weren’t Finance Minister.

In one of their excise cases. What has that got to do with this? Are you insinuating that my answers are coloured by the fact that I appeared for them? If a lawyer is pleading for a client in a murder case, does that imply that he has complicity in the murder? What is the relevance of your statement?

SC: Alright, I’ll withdraw it. I am asking, given their dismal track record in Orissa, why is the government defending their position instead of disqualifying them or pushing them towards better practices?

So do it. Who is preventing you? Apply the laws. But don’t stop the project. That’s the only way of rescuing those people from the clutches of abject poverty.

… SC: It sounds like a pipedream, because the experience on the ground is very different. Look at Gurgaon — emblem of India Shining, coming up on virgin land. It could have been a kind of urban utopia. Instead, there is no water, no electricity, no public transport, huge pollution, and absolutely no space or planning for the poor. Take any other B-town. Moradabad. Siliguri. Patna. Take the megalopolises — imploding under the weight of growth. The poor definitely don’t seem to be benefiting in these places.

So shall we leave people to live in these villages?

SC: I am asking is there a slower, deeper, more varied way of doing things that might not mean instant and insane wealth for a few of us, and yet ensure overall growth?

Apply the laws. Apply town-planning laws. The laws do not allow you to build without providing water and open spaces. You are passing off our collective failure to apply laws upon the model of development itself. I don’t think there is anything wrong with the model of development. It is just the unwillingness of the authorities to enforce rules and regulations. The answer is not to go back to the past and say, if we cannot apply the laws, let’s continue to live in our original state of poverty, neglect and despair.

SC: Let’s go back to national resources, like minerals. When you hand over natio – nal wealth to private corporations driven purely by the profit motive, what is the logic of usage? What’s to stop them cynically destituting a place before moving on?

Don’t hand it over to a private corporation. Set up an efficient PSU if you want.

SC: But you are against PSUs.

We are not, who said we are? We are putting more money in NTPC, SAIL, NMDC. We have revived 29 sick PSUs and put aside 13,000 crores in the last four years for this. So create a PSU. But why this old mental block that private is greed and therefore bad, and public is good.

SC: There are bad examples. Union Carbide, Enron.

If you want to continue with those traditional images of public and private sector you are welcome. The point I’m making is coal and iron ore is not meant to be kept buried under Mother Earth. They have to be put to use. As for your fears about environment and overuse, when we found that mining Kudremukh iron ore is highly polluting, we stopped mining it. But the argument that resources should not be used is an argument that must be rejected. Those who say that have a vested interest in perpetuating poverty.

I am with the finance minister on this.

Aditya Birla group confronted for lack of progress in Kashipur

Aluminium, Birlas, Rayagada Comments Off on Aditya Birla group confronted for lack of progress in Kashipur

See details at http://tathya.in/story.asp?sno=1866. Following is an excerpt.

The meeting with the Chief Minister of Orissa on Thursday turned sour, when his company Utkal Alumina International Limited (UAIL) was blamed for the delay.

A senior mandarin in charge of a crucial regulatory department charged Mr.Birla of creating hurdle for him self.

“I take strong exception to it”, retorted Mr.Kumar Mmangalam.

But the no nonsense officer was clearly in no mood to relent.

He said that "the fact is fact and some body should call spade a spade".

The senior mandarin charged UAIL of turning pro-industry people as anti-industry in the area.

He said after 2004, UAIL take over by A V Birla Group, it has only erected a boundary wall and now asking for moon without doing any thing.

A V Birla Group is asking for more bauxite mines and coal linkage for their group.

… UAIL’s Managing Director Debu Bhattacharya was seen fuming over the allegations hurled against them in front of the Chief Minister.

But they were undone and agreed to go for value addition by setting up a smelter plant to use the alumina.

Ruia’s Essar group’s proposed investment in Orissa

INVESTMENTS and INVESTMENT PLANS, Ore pelletisation, Ruias/Essar group, Steel Comments Off on Ruia’s Essar group’s proposed investment in Orissa

Following is an excerpt from a report in Financial Express.

Essar Group has acquired 1300 acres, out of the required 1960 acres, for its six million tonne steel project in Orissa. The company had signed a memorandum of understanding in 2005 with the state government to set up a steel plant along with facilities for making iron ore pellet and transporting iron ore slurry through dedicated pipeline from Barbil sector to Paradip.

Essar is investing Rs 15000 crore for the project. It includes an iron ore pellet plant and setting up of a slurry pipeline. The company’s Bailadilla-Vizag slurry pipleline also passes through the state.

Essar Group chairman SK Ruia expressed his satisfaction over the progress of the project.

… Mehera told reporters the work for the slurry pipeline and the pellet project has been started. Equipment supply orders for the projects have been placed with South Korean and German Companies. 

 

This project does not seem to be much beneficial to Orissa as making pellets, transporting them and selling them is almost like exporting ores.

Aditya Birla group’s plan for Orissa

Aluminium, Bauxite, Birlas, Business Standard, Cement, Chudamani, Bhadrakh (Birlas interested), Ports and waterways, Rayagada, Rayagada- Therubali, Rourkela- Kansbahal, Sambalpur, Sambaplur- Burla- Bargarh- Chipilima, Sundergarh, Thermal 47 Comments »

Following is an excerpt from a report in Business Standard.

Aditya Birla Group, one of the largest business houses of the country having interests in sectors like aluminium, telecom, cement, textiles, fertiliser, mining, retail, finance and insurance plans to invest about Rs 75,000 – 80,000 crore in Orissa.

The proposed amount will be invested in sectors like aluminium,cement, telecom and retail sectors in the state over next few years.

… Birla, who was here to discuss some project related issues with the Orissa Chief Minister Naveen Patnaik said, the company also intends to launch its retail business in Orissa as part of its national roll out plan. It will be launched within the next 6 months.

… Stating that the projects are proceeding well, he said, the company is committed to a lot of social work like setting up ITIs and health centres at the project sites.

… Regarding the resistance of the local people to the alumina refinery project Utkal Alumina at Raygada, the group chairman said, a lot of projects are facing the same problem. The company has sought the state government’s intervention in resolving the issue.

He said, ABG took over the company four years ago from Alcan Inc and the company has complied with the rehabilitation and resettlemnet (R& R) package given to it. He, however, was non-commital about any additional package for the project affected people.

" We can not commit on the new package. As long as there is reasonable settlement we will be happy", he pointed out.

Regarding the possibility of investing in the port sector of the state, Birla said, the company is persuing the matter with the Orissa government and is expecting a positive outcome.

It may be noted, Essel Mining, a group company of the ABG had earlier proposed the state government to set up a port at Chudamani. However, the state government had not accepted its proposal.

The major projects of the group in Orissa include Utkal Alumina refinery at Raygada, Hindalco’s alumina smelter and power plant at Sambalpur and 3.5 million tonne per annum cement plant in Sundergarh district.

Vedanta’s steel plan for Orissa

Keonjhar, Steel, Vedanta Comments Off on Vedanta’s steel plan for Orissa

Following is from a report in SteelGuru.com.

It is reported that Vedanta has started land acquisition for its first ever steel venture at Keonjhar in Orissa. It also hopes to start its third aluminum smelter in India by the end of June 2008. Once in place, the group’s smelter capacity would go up to almost 1 million tonne.

Vedanta has already floated an outfit called Sterlite Iron & Steel Company for undertaking the INR 12,500 crore project in Orissa and has identified 3,000 acres for the proposed 5.1 million tonne venture.

Official sources said that "This project will be like a forward integration for the group in Orissa as Sesa Goa has iron ore mines in the state which could be utilized for the project. The preliminary planning is on for an integrated environment management program and production requirements."

The source added that "Vedanta is investing INR 8,400 crore in phases in this project. The smelter will have a capacity of 50,000 tonne per year In the first phase, 25,000 tonne and a portion of 1215 MW captive power plant will be operational. The total employment in the project will be around 6,000 people."

NALCO’s CSR activities

Aluminium, Bauxite, Corporate Social Responsibility (CSR), NALCO 2 Comments »

Following is from a report in Pioneer (Note: It may be in response to http://www.orissalinks.com/?p=1134.):

National Aluminium Company (Nalco) has so far spent more than Rs 100 crore towards various social sector development activities. Creation of infrastructure in the surrounding villages for communication, education, healthcare and drinking water gets priority in the periphery development plans of the company.

Nalco sources said community participation in innovative farming, pisciulture, social forestry and sanitation programmes apart, encouragement to sports, art, culture and literature are all a part of Nalco’s involvement with the life of the community. Successful operations of the company have led to employment and income generation for the local people in many significant ways.

These apart, during natural calamities, Nalco has been donating to the Chief Minister’s Relief Fund and Prime Minister’s National Relief Fund. Soon after Super Cyclone in Orissa in 1999, Nalco created 197 primary school-cum-cyclone shelters in the coastal districts. Besides, illuminating Lord Lingaraj Temple, Nalco has set up Mahatma Gandhi Park and Biju Patnaik Park in Bhubaneswar and Gandhi Ghat Park at Puri. The company has also committed Rs 2 crore for renovation of Ananda Bazar in the premises of the Jagannath Temple.

"In education, our focus is on primary education, for which we have been extending financial assistance in remote tribals-dominated places of Orissa. But, despite our best of intentions, it is not possible to fund all such projects. As a result, at times, some aggrieved persons do turn to media to tarnish the image of Nalco," a senior officer of the company remarked.

As for the rehabilitation of the 635 families displaced due to the Nalco project in the Damanjodi and Angul sectors, the company sources said employment has been provided to 629 nominees. The nomination status of balance six families has been taken up at appropriate level. Besides, 1,530 families were substantially affected (parting with one-third or more of their lands) in Angul. Even from these, jobs have been provided to 1,160 persons. Nalco has also been sponsoring ITI training to such persons, with 543 having been technically trained so far.

Nalco CMD CR Pradhan said, "As a corporate policy, Nalco has been allocating 1 per cent of its net profit of the year for social sector activities in the succeeding year. During the 2006-07 fiscal, Nalco made a net profit of Rs 2,381 crore and, accordingly, for the 2007-08, the company allotted Rs 23.81 crore for various developmental activities. "Today, in any investment plans in Orissa, the interested companies are cited Nalco’s role as a responsible corporate citizen."

Orissa proposes three sites in Ganjam for an international shipyard: Dharitri

Bahuda Muhana, Ganjam (many interested), Ganjam, Gopalpur port (under constr.), Palur, Ganjam (Future metals interested), Shipyard 2 Comments »

POSCO mentions downstream anciliary units

Jagatsinghpur, Paradip - Jatadhari - Kujanga, POSCO, Steel ancilaries Comments Off on POSCO mentions downstream anciliary units

Following is an excerpt from a report in Pragativadi.

… the new Director of Posco-India, Yong Keun Kim, is however, optimistic about his plans for downstream industries.

… His recent meeting with IPICOL managing director, Ashok K Meena, has unfolded the road map of Posco on downstream and ancillary industries.

Talking to reporters here on Tuesday, he said that Posco’s greenfield project near Paradip would create enormous opportunities for developing ancillary and downstream units close to the steel plant.

Some of the units that are likely to come up, include automobiles, shipbuilding, fishing vessel, heavy fabrication and downstream heat and coil processing, reveals the document.

There is a vast scope of indirect employment opportunity once the ancillary industries are set up in the area, the document says.

Posco has requested the state government for a piece of land near Paradip to set up the facilities.

A detailed project report (DPR) is being prepared by the company, in which investors from South Korea would join for setting up downstream and ancillary projects.

Orissa government’s sensible advise to upcoming industries in Orissa

Business Standard, R & R, Steel Comments Off on Orissa government’s sensible advise to upcoming industries in Orissa

Following is an excerpt from a report in Business Standard. The six suggestions are:

  • taking up entry point activity,
  • providing employment to the affected and the displaced persons,
  • promotion of local employment to the extent possible,
  • initiative for protection of environment,
  • enthusing and engaging the people and
  • empathising with the local people.

… Tripathy said, the steel units have been advised to take up various entry point activities to fill the infrastructural gap in their area of operation.

Similarly, they also need to take care of employment of the project affected and the displaced persons either through setting up Industrial Training Institutes (ITIs) or through adoption of the existing ITIs in the state.

It will help those units to meet their requirement of skilled man power in the trades they require. The industries have further been advised to promote local employment to the maximum extent possible.

He said, the industries have been told to take up afforestation and ensure protection of social and economic environment. Efforts will have to be made for enthusing and involving the people in the industrialisation process to attain the objective of inclusive development.

Besides, the industrial units will have to empathise with the local people considering them as stakeholders in the industrialisation process. To further supplement these efforts the industries need to educate and empower the local people so that they can get jobs on merit.

NALCO’s plan for Jharsuguda

Aluminium, Business Standard, Jharsugurha, Jharsugurha- Brajarajnagar- Belpahar, NALCO Comments Off on NALCO’s plan for Jharsuguda

Following is an excerpt from a report in Business Standard.

National Aluminium Company (Nalco) is exploring the possibility of setting up a greenfield aluminium smelter and captive power plant near Jharsuguda, western Orissa at an investment of more than Rs 14,000 crore.

The capacity of the proposed smelter is pegged at 5 lakh tonnes per annum with a captive generation facility of 1,250 mw. The alumina required for the project is likely to be sourced from Nalco’s existing refinery at Damanjodi.

Engineer’s India (EIL), which has been appointed the consultant, has found the project technically feasible.

Jharsuguda is being chosen as the possible site for the plant as it is in the vicinity of the IB valley coal reserves. While the company has the required technology, land acquisition is expected to be trouble-free as most part of the identified patch is government land and barren.

… "Yes, we have plans to set up a smelter and captive power plant in Jharsuguda to add about 9 lakh tonne alumina capacity which is exported annually now. The project’s fate does not hinge on the availability of water," B L Bagra, director (finance), Nalco, told Business Standard.

Meanwhile, the state-owned Industrial Promotion and Investment Corporation of Orissa (Ipicol) has forwarded the company’s application for water from IB river to the water resources department.

Arcelor Mittal’s plan of Rs 1200 crores for R & R

Arcelor Mittal, Keonjhar, R & R, Steel 1 Comment »

Following is an excerpt from a report in Business standard.

Global steel major ArcelorMittal, who is proposing to set up a 12 million tonne greenfield steel plant at Patna tehsil in Keonjhar district of Orissa, plans to spend about $300 million (about Rs 1,200 crore) on rehabilitation and resettlement (R&R). …

ArcelorMittal has presented its R&R plan to the Keonjhar district administration. It plans to spend the earmarked amount over a period of more than five years.

"We plan to spend about $300 million for the R&R plan over a period of more than five years. The R&R plan has already been submitted to the Orissa government," ArcelorMittal India chief executive officer (CEO) Sanak Misra said.

After meeting Orissa chief minister Naveen Patnaik along with Sudhir Maheshwari and Vijay Bhattanagar, the members of ArcelorMittal’s group management board, in the state secretariat today, Misra told the media that their steel plant will come up in two phases of 6 million tonne each. He said the R&R plan of the company was in conformity with the R&R policy of the Orissa government.

The plan envisages dwelling units for each of the displaced family with common facilities. The rehabilitation colonies will have water supply, educational institutions and primary health centres (PHCs).

As per the R&R plan, the company will set up a state-of-the-art industrial training institute (ITI) beside the steel plant. It is in discussion with three leading institutes of the country having previous experience in handling ITIs.

The model, including student strength and the cost of setting up of the ITI, is being worked out. Misra, however, made it clear that the ITI would come up before the commissioning of the plant. The company was in discussion with the state government for the required land, he said.

Official sources said, the company planned to apply the highest standards of corporate social responsibility (CSR) for the Orissa project and intended to make the R&R policy the backbone of the CSR strategy.

Misra said a detail project report (DPR), prepared by M N Dastur & Company (P) Ltd (Dasturco), was being finalised. It would be submitted in June, 2008, he added.

The DPR includes captive mining facilities, captive power supply, water supply infrastructure and other required facilities. It also includes setting up of townships for the company’s employees.

The ArcelorMittal CEO also expressed his satisfaction over the land acquisition, saying that it was making good progress.

The company had signed an MoU with the Orissa government in December 2006 for setting up a steel plant at an investment of about Rs 40,000 crore.

Nalco gets Navratna status

Aluminium, Angul, Khordha, Koraput, NALCO Comments Off on Nalco gets Navratna status

Following is an excerpt from a report in Kalinga Times.

National Aluminium Company Limited (NALCO), the flagship PSU of the Ministry of Mines and India ‘s largest manufacturer and exporter of alumina and aluminium, has been granted the Navratna status.

Navratna status is conferred on select Central Public Sector Enterprises (CPSE),on becoming significant players in the economic development of the country.

On achieving the status, certain powers are delegated to those CPSEs that had comparative advantages and capacity to become global giants.

As per the wikipedia entry on Navratna:

The ‘Navaratna’ status offers a company enhanced financial and operational autonomy and empowers it to invest up to Rs. 1000 cr or 15% of their net worth on a single project without seeking government approval. In a year, these companies can spend up to 30% of their net worth not exceeding Rs. 1000 cr. They will also have the freedom to enter joint ventures, form alliances and float subsidiaries abroad.

 

 

Land acqusition for Shipyard

Bhadrakh, Dhamara- Chandbali- Bhitarakanika, Shipyard Comments Off on Land acqusition for Shipyard

Following is an excerpt from a report in Pioneer.

The District administration on Sunday formally issued a notification for the proposed Rs 45,000-crore ship building plant at Chardia on the banks of the Baitarani river mouth. Surendra Kumar Group of Companies (Ocean Sea port Company, Kolkota) is the promoter of the plant.

Sources said the company has deposited Rs 1 crore with the district administration for land acquisition to be done by IDCO. More than 939.36 acre of land is to be acquired. The Government has issued a notification under Section 4(1). Fiver villages of Chardia, Harispur, Rajendrapali, Kanakpali and Rajrajeshwarpali are going to be affected by the land acquisition said district land acquisition officer Suryakanta Padhi.

Proposal for a 350 crore food park: Samaja

Food processing, Samaja (in Odia) Comments Off on Proposal for a 350 crore food park: Samaja

See also http://tathya.in/story.asp?sno=1800.

Orissa govt. plans to rehabilitate Hirakud, Rengali and Samal oustees. Will this really happen?

Land acquisition, R & R, Sambalpur Comments Off on Orissa govt. plans to rehabilitate Hirakud, Rengali and Samal oustees. Will this really happen?

Following is from Dharitri.

Five Japanese conglomerates sign agreements with industries in Orissa: Sambada

INDUSTRY and INFRASTRUCTURE, Japan Comments Off on Five Japanese conglomerates sign agreements with industries in Orissa: Sambada

Lemontree hotel to open in Bhubaneswar: Samaja

Bhubaneswar- Cuttack- Puri, Hotels and resorts, Khordha, Samaja (in Odia) 1 Comment »

Orissa shooting for another IT SEZ and an ITIR

Bhubaneswar- Cuttack- Puri, IT, ITIR, Khordha, SEZs Comments Off on Orissa shooting for another IT SEZ and an ITIR

Following is an excerpt from a report in Pioneer.

Another SEZ (Special Economic Zone) is coming up in the State in the IT sector. Currently, the State has four SEZs in this sector.

It would be set up in 25 acres of land in Bhubaneswar on a Public -Private Partnership (PPP) mode. Electronic and Computer Software Export Promotion Council (ECS) and Larsen and Turbo (L&T) would provide the necessary support for establishment of the SEZ. Government will provide the land for this purpose. IT Minister Surjya Naryan Patro said … 1074 acres of land has earmarked for the development of IT services.

Till date Orissa has applied for 14 SEZs, of which 3 have been cleared, six given in principle clearance and five have received formal clearance from the Centre.

Meanwhile, the State Government has urged the Centre to sanction an Information Technology Investment Region (ITIR) to boost growth of IT and IT enabled services. The ITIR is being planned in the State will house space for hardware manufacturing units other than having provisions for new integrated townships, special economic zone and industrial parks.

Rail budget hotels in Puri and Bhubaneswar

Bhubaneswar- Cuttack- Puri, Hotels and resorts, Khordha, Puri, Railways Comments Off on Rail budget hotels in Puri and Bhubaneswar

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

The ambitious plan of railways to set up about 100 budget hotels across the country, popularly known as Rail Ratna, has finally got a nod from the Railway Board. Twenty-two of these budget hotels are to be built in the first phase of work which is likely to be taken up soon.

… According to Indian Railway Catering and Tourism Corporation (IRCTC) director Vinod Asthana, it has been decided to commercially exploit the vacant land of railways across the country. The ambitious budget hotel plan will yield good revenue to railways. IRCTC will go ahead with the plan as approved for the first phase of work, he said.

IRCTC MD Nalin Singhale said the proposed budget hotels will be built and developed on public-private partnership basis with a view to promoting tourism and providing full comfort to tourists.

IRCTC has already selected important places where these budget hotels are to be built. These places are Delhi, Varanasi, Ajmer, Jaipur, Bhubaneswar, Allahabad, Darjeeling, Sealdah, Lucknow, Mysore, Mumbai, Ooty, Puri, Amritsar, Shimla, Ujjain, Udaipur, Chandigarh, Kanyakumari, Pune, Nagpur and Agra, he said …

… According to sources, the budget hotel project is likely to yield about Rs 4,000 crore annually to railways on its completion. These hotels will be built on thousands of hectares of the vacant land leased out by the Railway Land Development Authority (RLDA). Railways have roped in reputed companies of the country to invest in such an ambitious project. Tenders have been finalised and awarded to successful bidders at 20 locations at the country level, sources said.

As per the approved plan, each budget hotel is to be developed on the pattern of plush hotels equipped with all modern facilities. IRCTC has already formulated policies with regard to budget hotels, a Railway Board official said.

… Sources said Railway Board is yet to approve the tariff for each room of the proposed budget hotels. Railways are likely to fix Rs 1,000 and Rs 2,000 for each plush room of such hotels per night. IRCTC proposes to provide its own quality catering services in these budget hotels.

OSL’s hotel plans for Bhubaneswar and Puri

Bhubaneswar- Cuttack- Puri, Hotels and resorts, Khordha, Puri 2 Comments »

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

Orissa Stevedores Limited (OSL), Hospitality Division plans to update its Bhubaneswar property, The Triumph Residency, to keep pace with the growing competition. Triumph Residency will go through a complete makeover in terms of interiors, rooms and public areas (lobby, bar and restaurants) as well as in terms of the power backup. The renovation process, which will last for a period of seven to eight months, is due to take off in mid-April 2008.

Speaking to Hospitality Biz, Dinesh Kumar, General Manager, OSL, Hospitality Division, said, “Over the past couple of years, the influx of business travellers to Bhubaneswar has gone up to 100 per cent due to various reasons like industrial congestion and high Average Rooms Rates (ARR) in the metros”.

Bhubaneswar has become well connected lately, which has led to an increase in the meetings and conferences held in the city. “The competition has also shot high, as the existing properties like Swosti Plaza and Mayfair are in the process of adding their room inventories. Alongside this, hospitality majors like Radisson, Sarovar Group of Hotels and Best Western Group of Hotels are coming up with their properties,” Kumar said. Ginger Hotels and Hotel Hindustan International are also coming up with hotels in the city with an inventory of 100 rooms.

Triumph Residency plans to add seven more rooms. The hotel will be operational during the renovation period. “With this revamp, we plan to target the high-end business travellers. We foresee ourselves to be at par with properties like Mayfair and Trident. Occupancy is expected to shoot up by at least 30-40 per cent, along with a doubling of ARR,” Kumar added.

Also under consideration at OSL is the possibility to create its own hospitality brand or to rope in any international hospitality major to brand all of its properties. The group is coming up with a 40-room property in Puri. … The property, which is under construction currently, is slated to be operational by the end of 2008.

OSL also plans to build a high-end flagship property at Chandaka, a place in the outskirts of Bhubaneswar. “We have already bought the land. We intend to make this 150-key five star property the best in eastern India,” informs Kumar.

Status of IOL refinery at Paradeep

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Following is an excerpt from a report in Pioneer.

Indian Oil Corporation (IOL)’s Chairman S. Beuria called on Chief Minister Naveen Patnaik on Saturday at Orissa Bhawan in New Delhi and appraised him about the progress on 15 MMTPA Paradip- refinery -cum- aromatic complex.

He indicated that approximately Rs 1,254 crore had already been spent on the project.

“Due to cost and time overruns, the project cost is likely to go up to Rs 46,000 crore and the project will take 42 months to get completed,” he said.

He further indicated that they have already received environmental clearance from the Union Ministry of Environment and Forest. Construction of water and power supply system has also been completed. The work of dredging and reclamation of land is under progress.

Beuria informed Patnaik that the seven year- holiday available under Section 51-B will be withdrawn effective from April 1, 2009 It would affect the viability of the project.

… Patnaik asked the Beuria to take up the peripheral development works for the benefit of the project affected people of Jagatsinghpur district.

Land acquisition status of the proposed shipyard near Dhamara

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Orissa’s efforts to attract ancillary industries

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Following is an excerpt from a report in Financial Express.

An 11-member team comprising industrialists from Haryana, Gujarat, Madhya Pradesh and Uttar Pradesh is on a three-day visit to Orissa to explore possibilities of investments in ancillary industries. The team on Wednesday visited the Kalinga Nagar Industrial Complex at Dubri in Jajpur district.

Orissa is now focusing on ancillary units of mega projects that are coming up in the state with a view to further value addition and employment generation.

While the proposed Jindal Stainless Steel Downstream Park (SEZ) at Kalinga Nagar is the focus, the government is also promoting the Choudwar Industrial estate to the visitors. Orissa is keen to have ancillary industries in Rourkela, Sambalpur, Paradip and Dhamra regions in addition to the Somnathpur Industrial Estate in Balasore.

The steel SEZ (JSSL) is to come up on 300 acres near the 1.6 mtpa steel plant project of Jindal Stainless, and will house industries to move up the value chain by churning out specific products for different sectors. Investment in the SEZ is envisaged to be to the tune of Rs 1,500 crore.

A study conducted by JSSL and international consultancy firm CB Richard Elis has pointed out that the precision cold rolling, pipes and tubes, auto components, engineering products, kitchenware and lifestyle products hold much promise.

"Advantages of setting up projects in Orissa are manifold as it is at the core of emerging Markets in eastern India comprising West Bengal, Jharkhand, Chhattisgarh and north east", the director industries, Hemanta Sharma, told the visiting industries. It is also the gateway to the Southeast Asian countries in terms of exports, he added.

The state government had lined up a comprehensive package including incentives and concessions to promote ancillary enterprises, Sharma said.

Asserting profitability of the ventures here, CEO of Jindal Stainless SS Virdi said applications of steel are growing faster compared with any metals as per capita consumption (PCC) is on the rise. In India, the PCC is only 1.1 kg compared with 15-20 kg in developed countries.