___________

Following is from a report in ibnlive.com.

The committee headed by chief secretary B K Patnaik cleared two cement projects, an iron ore pelletisation unit and a high tension cable manufacturing unit, official sources said here. The pelletisation project, with 6 mtpa capacity, is proposed to be set up by Chadalavada Pvt Ltd at a cost of Rs 680 crore near Kalinganagar in Jajpur district, they said. The project, proposed to come up in 250 acre, is expected to generate 500 jobs, they said, adding that in the first phase its capacity would be 2.5 mtpa. The cable manufacturing unit is to be set up in 40 acre near Khurda by Gupta Power Infrastructure Pvt Ltd at an investment of Rs 192 crore. It has the potential to hire about 400 people. One of the cement units is proposed to be established in 25 acre, by Jajpur Cement Ltd near Kalignanagar, at a cost of Rs 63 crore. Its capacity would be 0.5 mtpa. Similarly, Nabadurga Industries Ltd seeks to set up two units at a cost of Rs 280 crore. It would have a clinker unit at Kantabanjhi in Balangir district and a crushing project at bainchhua in Cuttack district, sources said adding the entire project would have the potential to provide employment to 400 people.

Following is an excerpt from a report in Business Standard.

Taiwan … has identified food processing, electronics, textiles, agri-business and IT hardware as the potential areas of investment in Orissa.

… Besides, the nation also intends to build educational tie-ups with KIIT and other premier universities of the state, he added.

"Our objective is to examine the investment potential of Orissa which has been quite successful in attracting investments. We believe that the areas of investment for the Taiwanese companies in the state are food processing, electronics, IT hardware, agri-business and textiles. The companies from Taiwan can explore possibilities of setting up manufacturing facilities for cell phones, refrigerators and computers in the state. Our investments would be relatively smaller compared to the likes of Posco and IBM nonetheless important because of the focus on job creation”, said Ong.

"We are keen on having tie-ups with the universities of Orissa. There is a good potential for collaboration between the universities of Orissa and Taiwan. We are also looking at the possibility of sea food imports from Orissa. Last year, Taiwan had imported $400-500 million of sea food from US, Canada and Australia”, he added.

Ong is scheduled to call on the state Chief Minister Naveen Patnaik on Wednesday and hold discussions on opportunities for the Taiwanese investors in the state.

"We are looking at job generation capacity and the we’ll see how many jobs can be created by the Taiwanese companies in Orissa. However, we are not interested in investing in steel and aluminium sectors”, he stated.

Asked on the visit of the Taiwanese business delegation to Orissa, Ong said, “I’ll go to Taiwan and persuade some Taiwanese companies to visit Orissa. However, the timing of the visit of the delegation from Taiwan would depend on the conducive atmosphere created by the state. Its going to be competition for Orissa with other states where we have already invested”.

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

If talks with the chief minister and senior officials yield positive results, a business delegation from Taiwan would soon visit Orissa with concrete investment proposals, he said. There was a lot of scope for cooperation in tourism sector.

Referring to the Buddhist circuit in Orissa, Ong said religious tourism could be tapped in a big way to increase the flow of Taiwanese tourists to the state.

Similarly, collaborations and ties in education, mainly vocational education, would also be explored, he said adding his country had already proposed scholarships for brilliant Orissa students.

Following is excerpted from a report in Business Standard.

• Overall: employment for 39104 people in the state by the end of December 2010.
• Steel sector: 31164 jobs which includes employment for 22399 people from the state and 8765 people from outside the state.
• Aluminium sector: 5474 people including 3657 from the state and the remaining 1817 outside the state. Investment worth Rs 11017 crore has been grounded in this sector.
• In the aluminium sector, Vedanta Aluminium Ltd (VAL) has been the biggest job creator, generating over 5000 jobs through its one million tonne per annum (mtpa) refinery project and 75 MW captive power plant (CPP) at Lanjigarh in Kalahandi district and aluminium smelter complex at Burkhamunda near Jharsuguda with a smelter capacity of 0.25 mtpa and a 675 MW CPP. At its refinery plant, VAL has employed 2523 people from Orissa and 1091 persons from outside the state. Similarly, 1026 people have been engaged from the state for VAL’s smelter plant while 686 others have been hired outside the state. VAL’s total investment on the refinery plant and smelter complex stands at Rs 9084 crore.
• Aditya Aluminium Ltd has invested Rs 1875 crore on its one mtpa alumina refinery at Rayagada and a 0.26 mtpa smelter plant cum 650 MW CPP at Sambalpur. The company has created jobs for 63 people from the state and 34 others outside the state.
• Cement sector: The total employment generated stands at 1502 by the end of December last year.
• OCL Cement Ltd has generated employment for 1494 people and the company has invested Rs 697.46 crore out of a total project cost of Rs 850 crore for its 1.10 mtpa cement manufacturing unit at Rajgangpur. The other two investors in the cement sector- Ultratech Cement Ltd and ACC Cement Ltd have made negligible progress on their projects in the state.
• In the power sector, the Independent Power Plants (IPPs) have generated employment for 964 people.
• Sterlite Energy Ltd has commissioned the first unit (600 MW) of its 2400 MW IPP, four other IPPs- GMR Kamalanga Energy Ltd, Monnet Power Company Ltd, Jindal India Thermal Power Ltd and Ind-Barath Energy (Utkal) Ltd have started construction.

(Thaks to a reader for the pointer.)

Following is an excerpt from a report in Business Standard.

Kumar Mangalam Birla-controlled Hindalco Industries plans to produce cans for beverages and food giants such as Coca-Cola and PepsiCo from its plant at Hirakud in Orissa. The company has begun dismantling a closed plant of Novelis in Rogerstone, Britain, and intends to ship all key equipment to Hirakud.

The Hirakud expansion for beverage can-making is scheduled to be complete by October next year. “A project is underway for transfer of equipment for flat rolled products from the Novelis plant…this will enable us to produce can body stock for local and export markets,” said the company.

…

Hindalco would be using the plant and technology of Novelis to make cans’ body stock in India for the first time. Novelis is the world’s leading maker of aluminium rolled products, used for making cans.

About 45 per cent of Novelis’ shipment is beverage cans. It produces an estimated 19 per cent of the world’s flat-rolled aluminium products and is the number one producer in Europe, South America and Asia, and the second-largest in North America. It is also the world leader in the recycling of used aluminum beverage cans.

At Hirakud, the aluminium maker has a smelter capacity of 155 kilo tonnes per annum (ktpa). It is expanding this to 213 ktpa and building a 100-Mw captive power generation capacity. Expansion to 161 ktpa will be completed by July this year and the rest will be commissioned in October 2012.

Land acquisition for the expansion has been completed and statutory clearances obtained. The technology agreement has been finalised with GAMI. Equipment has started arriving at the site and erection begun, said the company in a recent investor presentation.

See also this article in Economic Times.

This is really great news. Odisha needs and should go after more and more downstream industries.

Following is excerpted from a report in Business Standard.

Steel players pay Rs 2041 cr tax to Centre, Rs 1038 cr to state

… the steel sector in the state has recorded an investment of Rs 51940.67 crore till the end of December 2010.

…The 50 steel companies that have inked MoUs (Memorandum of Understanding) with the state government have generated direct employment for 21508 people besides creating indirect jobs for 52448 others.

Out of 21508 people engaged in the direct route, 14217 are from within the state and the remaining 7291 outside Orissa. In the indirect employment category, 38122 people from the state have got jobs and 14326 persons have been sourced from outside the state.

According to the state steel & mines minister Raghunath Mohanty, 29 out of these 50 steel firms have begun partial production, achieving a sponge iron output of 6.24 million tonne per annum (mtpa) and steel capacity of 7.79 mtpa.

These steel units have achieved a CPP (Captive Power Plant) capacity of 1062 MW and have spent Rs 61.21 crore on peripheral development till the end of December last year.

Among the steel investors who have made significant investments in the state are Bhushan Steel Ltd-Dhenkanal (Rs 12000 crore), Bhushan Power & Steel Ltd-Sambalpur ( Rs 7000 crore), Jindal Steel & Power Ltd-Angul (Rs 8470.96 crore), JSL Ltd-Kalinganagar (Rs 5367.59 crore), Essar Steel Orissa Ltd-Paradip (Rs 5077 crore), Adhunik Metalicks Ltd-Kuarnmunda (Rs 1740 crore), Visa Steel-Kalinganagar (Rs 1626.83 crore) and Tata Steel-Kalinganagar (Rs 1302.60 crore).

The units that have started partial production are Aarti Steels Ltd, Adhunik Metalicks Ltd, Visa Steel Ltd, Shyam DRI Power Ltd, Sree Metaliks Ltd, Jain Steel & Power Ltd, Eastern Steels & Power Ltd and Bhushan Steel Ltd to name a few.

…The envisaged capacity of all the steel companies, that have signed MoUs with the state government, is 83.66 mtpa and the state has attracted investments worth Rs 2.30 lakh crore in the steel sector.

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

• Of the total Rs 3,400 crore investment proposals approved by the SLSWCC, Rs 2,870 crore would be in the steel sector …
• SLWCC approved a proposal from Tata Steel to set up a re-bar mill and a hi-carbon ferrochrome unit at its Gopalpur SEZ in Ganjam district. The steel major would invest Rs 800 crore in the project … this time the company had been asked to use water through the process of desalination, Ramachandru said. While the Tata Steel was planning to manufacture 4 lakh metric ton of re-bar mill per annum from its re-bar mill unit, it would produce 55,000 metric tons of hi-carbon ferrochrome at the Gopalpur SEZ to be set up by the company.
• Other steel units included
  • a 0.6 mtpa integrated plant at an investment of Rs 925 crore by Shyam Steel Industry
  • Sri Bajrang Power & Ispat company’s 0.12 mtpa steel plant at an investment of Rs 500 crore
  • another 0.21 mtpa plant at an investment of Rs 645 crore by Rupa Ispat
• Aryan Mining and Trading Corporation Limited’s proposal for setting up an ore benefication plant at Koeda in Sundargarh district at an investment of Rs 423 crore was also okayed
• Kashivi International’s proposal to set up an iron ore pellet plant at an investment of Rs 56 crore was also cleared
• Binani Cement Limited which had initially decided to set up a cement plant at Dhamra in Bhadrak district had been allowed to shift its unit to Kalinga Nagar in Jajpur district

Update 2: The following excerpt from a report in Telegraph elaborates on the point where this may head to the courts.

Giving conditional clearance to the project, the Union environment and forests ministry had yesterday asked the state for an assurance that no one was so entitled. At stake is the final approval for the diversion of 1,253 hectares of forestland for the steel plant and its captive port.

Jagatsinghpur collector Narayan Jena today argued that no one met the criteria under which they could legitimately stake claim to any part of the forestland. This was challenged by the Posco Pratirodh Sangram Samiti, which is resisting the project.

Under the 2006 law, tribals can claim rights over forestland on which they are currently living or dependent for livelihood. According to the state government, no tribal lives in the project area.

However, the 2006 law also allows Other Traditional Forest Dwellers (OTFDs) to claim forest rights provided they satisfy three criteria. The claimants must:

• Have lived on the forestland for 75 years prior to December 13, 2005;

• Have been in occupation of the land before December 13, 2005;

• Be dependent on the forestland for their “bona fide” livelihood needs.

Collector Jena declined comment on the Union ministry’s riders since the official order is yet to be received, but tried to clear the air on the matter of forest rights.

He said the project area had been notified as protected forest area only in 1961 — so technically, no OTFD could claim to have lived in a “forest” there for 75 years. “Had there been tribals in the area, the situation would have been different. But no OTFD can claim such benefits because its forest status does not go back 75 years,” he said.

He conceded that the area was part of Burdwan estate before 1952, when there were reserve forests in Jatadhari and Bhuyanpal, which are part of the project area. But he insisted that the area was completely uninhabited now.

However, the Union tribal ministry says that claimants under the OTFD category do not have to prove they live on the forestland but only that they depend on it for their “bona fide” livelihood needs.

Jena countered this by alleging that claimants to land in the project area were encroachers, implying their claims about dependence for livelihood would be untenable.

Update: Following is from an editorial in Economic Times. I am in agreement with the observations there.

Environment minister Jairam Ramesh has passed the Posco buck, nominally to the government of Orissa but, in reality, to the courts. His final clearance of the project depends on a categorical assertion by the government of Orissa that there are no ‘other traditional forest dwellers’ among those whose land would be diverted for the project. … Now, if the government of Orissa does provide the Centre with the categorical assertion that it has sought on the nature of the people who would be displaced, it is inevitable that the villagers would go to court.

Whether the affected villagers are indeed people whom the Forest Rights Act seeks to protect is a matter of fact that would then be left to the courts to verify, beyond final challenge in the Supreme Court. This will take time. But a lengthy pilgrimage through the shrines of graded sanctity of Indian legality is not the only future open to Posco. The company can make a fresh, larger-hearted and better funded effort to win over the villagers whose lives and livelihoods would be disrupted by the project than the current one rejected by the villagers. People need certainty about their future incomes and occupations, and these would need to be superior to what they are asked to give up. This would not take much, given how the villagers eke out a living. But it does call for imagination, empathy and a willingness to engage directly with the villagers and not just with political and bureaucratic powerbrokers.

… The state has to show its earnestness. At the same time, companies and their projects must respect, not bend, the people of India and their laws. The Posco decision sets the stage for companies to show how they are inclined.

While the news media is buzz with the conditional approval of POSCO by the environment ministry, the interview with NAC Chairperson NC Saxena elaborates on the nuance behind the approval. While I am not conversant with the detailed aspects of the law here, I hope the Odisha government follows the law of the land to the dot and makes sure that displaced as well as project affected people are adequately and properly compensated. At the same I hope people and groups who blindly oppose this focus their attention towards helping the project affected and displaced people.

Following are excerpts from a CNBC-TV18 interview of NC Saxena which spells out the nuances behind the non-approval approval.

Korean steel giant POSCO has welcomed the conditional approval, which comes three years after the plant was first envisaged. It says it will maintain 25% of the area allocated for the steel plant as green cover. As per the ministry’s conditions, POSCO says it will earmark 2% of its net India profits for its corporate social responsibility drive. It will also work on creating sustainable livelihood options for people affected by the project. POSCO adds that it plans to ensure conservation of land and marine environment at the site. However, member of the National Advisory Council or NAC, NC Saxena has said that the order should not be read as a clearance. Speaking to CNBC-TV18, Saxena said the Orissa government should recognise the rights of the people. The Orissa government’s rehabilitation package is very weak, he said. He however added that the package was not the concern of the Ministry of Environment and Forests.

…Q: Finally a clearance being given to POSCO by the ministry of environment but you and your panel had said that there were several violations of the forest rights act by the Orissa government while the land acquisition had actually taken place. Now if I look at the order that’s been put out by the ministry of environment it clearly says that the final approval for diversion of 1253 hectares of forest land for the POSCO project would be granted as soon as there is an assurance from the state government to the ministry of finance that there is indeed no violation as far as other traditional forest dweller rights are concerned, how are you reading this?

A: Infact I don’t think it can be read as a clearance because if you see the order very carefully it very clearly says that there are conditions to be satisfied. For instance it says that there are 3 conditions. People have to be living there for the last three generations, people have to be in occupation since December 2005 and also they should depend on forest lands. Orissa government’s case was that occupation is also necessary for 3 generations which is not true.

So I am very happy that the minister has clarified that it is only living which is there for 3 generations. Minister has also clarified that these people who are forest dwellers they don’t have to claim their rights, its for the state government to recognize their rights, so therefore Orissa government if it is to stick to its own records would find it very difficult to declare that none of these condition are satisfied and I am sure that people will get justice.

Q: … so then how does one actually progress from here because the riders are going to be very difficult for the Orissa government to comply with?

A: The Orissa government should first of all recognize the rights of these people and grant the rights under the forest rights act, then they can acquire the land under the land acquisition law. I do not know why Orissa government is not willing to talk to the people. The other point is Orissa governments rehabilitation package is very weak.

They recognize rehabilitation only for those who are displaced. It should also recognize those who are affected so therefore a large number of people are losing their livelihoods, their incomes are being affected and they should also be compensated. Once you do that, if my income is Rs 5000 a month and Orissa government says I will give you Rs 10000 I am sure I will be very happy so that’s how Orissa government should deal with resentment.

Q: … this doesn’t really spell out what more needs to be done to strengthen the rehabilitation package?

A: Rehabilitation package is not the concern of the Ministry of Environment and Forest and therefore the minister has rightly not dealt with that issue but that is certainly an issue which the Orissa government and also the Ministry of Tribal affairs should be concerned with.

The ministries concern, the MoEF’s concern was only with the forest conservation act and the environmental protection act and therefore they have not commented but of you read Meena Gupta’s report and also the 3 members report they have dealt with this question in great detail and they have suggested how to strengthen and augment the whole rehabilitation package.

Q: … hence the uncertainty continues?

A: Infact yes I would say that uncertainty does not continue. Orissa government has been given a very clear order and they should comply with it …

So Orissa government should go ahead recognize their forest rights and then only think of further action. So therefore I think a very clear order has been given and it can be complied with. The project can also be completed provided Orissa government has a good rehabilitation package and observes all the laws specially the Forest Rights Act.

Thanks to reader Jitu for the pointers.

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

Nikon India, the 100% subsidiary of Nikon Corporation the leaders in imaging technology has started Nikon Collection Centre (NCC), an initiative taken by Nikon India to cater to the wider base of Nikon customers by floating Camera Collection Points across locations, especially the non metro areas.

… The collection centres would act as main contact point for collection of any Nikon Imaging Products ( D-SLR’s, COOLPIX Compact cameras, NIKKOR lenses and accessories) that shall be sent for repair to the nearest Service Facility Centre for necessary correction by NCC. Once repaired, the product will be sent back to NCC from where customer can collect his product. 

 

Under the plan for the business year 2010-2011, Nikon has already started the services in Bhopal, Noida & Mangalore. Going forward Nikon plans to start the services in Siliguri, Dehradun, Kanpur, Nagpur, Mysore and Tiruanantpuram within this month and Dhampur, Sambalpur, Udaipur, Varanasi, Shimla, Aitsar, Jammu, Agra, Coimbatore, Vishakapatnam and Rajkot taking the total to 20 by the end of this financial year.

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

IBM has chalked out plans to expand its business development processes to smaller cities in the country over the next couple of years. The company plans to spread its footprint to 45 cities of India. At present, a large part of the company’s business comes from the metropolitan cities such as Mumbai, Delhi and Bangalore.

“Business activities of small and medium business enterprises are increasing at a fast pace in smaller cities of the country and it is logical for us to expand our footprint across the country,” said Nipun Mehrotra, vice president, general business, IBM India and South Asia. He said with the growth of Indian economy, the small and medium enterprises would flourish and opportunities would increasingly come up in cities such as Ranchi, Ludhiana, Tirupur and Jharsuguda, among others.

Following is from http://eylex.co.in/Pages/Sambalpur.aspx. The mall in Sambalpur is promoted by K.K. Homes (a local Developer of Sambalpur) and will have a three screen multiplex with 800 seats. Its target Operational date is March 2011.

Following is the picture from http://eylex.co.in/Pages/Jharsugda.aspx.

Update: A DNA report the next day has this to say:

The favourable stand taken by the expert appraisal committee (EAC) on the POSCO steel plant in Orissa does not ensure an automatic green signal to the project, environment minister Jairam Ramesh has said.

… EAC’s positive recommendations are seen as a precursor to the ministry’s clearance for a project. Set up under the environment impact assessment notification of 2006, the committee assesses a range of issues related to a proposed project and recommends whether or not to grant approval to it. The ministry generally goes by its recommendation.

Ramesh clarified that a final decision on POSCO would be taken only after two weeks. The response has again put the fate of India’s biggest foreign direct investment project in doubt.

Following is from a report in DNA.

After running into several hurdles, the Rs51,000-crore POSCO steel plant project in Orissa has finally received the green signal from environment minister Jairam Ramesh. The decision comes as a big relief for the Indian industry which has been under tremendous pressure due to objections raised by the ministry over environment issues.

The steel project, being promoted by South Korean steel major POSCO in Jagatsinghpur district of Orissa, is the biggest foreign investment in the country. It was put on hold after the ministry cited violations of environment and forest laws by the company. The decision of the expert appraisal committee (EAC) of the ministry followed several public hearings and meetings with officials of POSCO India limited and the state government.

The EAC, however, has imposed tough conditions — running into 80 clauses — on the promoters. The most important of these is that at least 5% of the total cost of the project should be earmarked for corporate social responsibility. This means, POSCO will need to set aside at least Rs2,000 crore for this purpose only.

The committee also announced the resettlement and rehabilitation policy for tribals and fishermen to be affected by the project. Of 4,004 acres of the project area, 3,566 acres is revenue forest land. The company has acquired nearly 100 acres for resettlement of 418 families. The compensation for betel vine growers has been doubled and fishermen would get Rs2,00,000 per acre of prawn pond. Earlier, there was no compensation norm for fishermen.

The committee agreed that the plant area of 4,000 acres is compact for a 12 MTPA integrated steel plant with a captive power generation capacity and a port. It said construction of the port and development of greenery within the plant on 1,000 acres (25% of plant area) should commence simultaneously with the plant’s construction and be completed within eight years.

The project proposes establishing an integrated steel plant which will have an initial capacity of four MTPA and final capacity of 12 MTPA. It will have a captive port and a power plant of 400 MW. The EAC agreed with the seasonal basis on which the clearance was recommended in 2007 but insisted that on the basis of comprehensive environment impact assessment (EIA) report placed before it, aspects set out in subsequent paragraphs of these minutes must be revisited during the implementation of the project and conformity to norms verified and reported to the ministry.

The promoters have been asked to take steps to check vehicular pollution during transportation of raw material and finished products as well as dust emission during loading and unloading.

Raw material shall be stacked at earmarked sites in sheds/stockyards with wind breakers/shields and secure of fire hazard.

Following is an excerpt from a report in Hospitality Biz India.

… All the resorts are expected to be operational within the next 30 months. Swosti Group currently operates Hotel Swosti and Swosti Premium in Bhubaneswar and Swosti Palm Resort in Gopalpur-on–sea (Ganjam district).

Speaking with Hospitality Biz, J K Mohanty, Chairman, Swosti Group said, “Rural Tourism is a big source of employment for the rural youth. Looking at the potential of Rural Tourism, Swosti Group plans to open resorts in rural areas around Chilka Lake, Satapada and Puri in Orissa. Targeted to corporates as well as high-end Indian and foreign tourists, these projects will have villas, spas, entertainment activities, cruising service along with convention facilities. Eminent consultants and architects are involved in planning and designing of these projects, which are likely to come up in next two years.”

Swosti Chandan Spa Retreat, which is likely to come up in Puri, will have 106-rooms (including eight suites). “However, we are awaiting an approval from the Coastal Regulatory Zone authorities for the Puri property,” informed Mohanty. The resort near Chilka Lake, which is Asia’s largest brackish water lake famous for migratory birds and dolphins, will have 72 cottages. The resort will have spa, health club, gymnasium, restaurants, conference facilities and a landscape spread across nine acres of land. The luxury resort in Satapada will have 43 rooms. …

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

Taiwan-based NuLight Corporation plans to invest $200 million (around Rs 900 crore) on setting up a light emitting diode (LED) manufacturing unit in the state. The unit will manufacture LED street lamps and household bulbs.

“Initially, we will invest $10 million and later scale it up to $900 million on the LED manufacturing unit in the state. Orissa as well as India has a vast market for LED street lamps and household bulbs. It will be cost-effective and energy-efficient”, S S Lin, chairman of NuLight Corporation said at a press meet held on the occasion of ‘Invest Bhubaneswar-Orissa Symposium’.

The company also intends to set up an R&D (Research and Development) centre in the state on LED systems. Lin claimed that LED lighting systems can bring down power consumption by 70-80 per cent.

Daniel Lin, director, NuLight Corporation said, “We also have plans to build a green township in the state but details have not been finalized.”

Following is a excerpt from a report in Orissadiary.

Another senior functionary from Nulight Corporation said that his company is exploring the possibilities to invest and transfer technology to make Bhubaneswar a green city. “We are talking with Indian players to work together on this project.” he said.

This is wonderful news for several reasons. The Odisha government should help in speedy establishment of this and not make any hype about it. The reason this is wonderful is:

• Taiwan is a country of business owners.
• Taiwan invests a huge amount in China and other asian countries.
• Taiwan is a leader in electronics manufacturing and is earning names in semiconductor manufacturing.
• While there are IT hubs, auto hubs, etc. in India, India still does not have an electronic hub. So if Odisha plays it right it could go from one Taiwaneese electronics company to many and distinguish itself. It needs to be vigilant on the environmental aspects from day 1.

To read more about Taiwan check out this article in moneyweek. Following is an excerpt.

Taiwanese companies such as semiconductor foundry TSMC design and make many of the most advanced components that go into modern electronics. And increasingly, firms such as HTC, Acer and Asus are taking the next step up the value chain and establishing themselves as consumer brands in their own right.

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

Rushab Ship International Consultant is in talks with the Odisha government to introduce a passenger-cum-cargo cruise from Puri to Kolkatta in next three to six months with an investment of Rs 100 crore.

Addressing on the second day of the Invest Bhubaneswar, Rashmikant Kamdar, president, Rushab Ship International Consultant said, “We are having one or two vessels for this purpose. We are in talks with the state government and expect to finalise the deal soon.”

The  cruise can be used for multi purpose for ferrying passengers and cargo. There will be entertainment facility also for the passenger, he said.

Kamdar said that we are also planning  to have ship breaking place in Odisha. Odia labourers are working as ship breakers in Alang in Gujarat. “They can be employed in the ship breaking place in Odisha”, he said.

The web page of this company is http://www.rushabship.com/index.php. Its current address is given as Edison, NJ.

Address
Rushab Ship Consultant, Inc.
43 Jonathan Drive
Edison, New Jersey 08820
USA

Following is an excerpt from a report in Economic Times.

After stopping bauxite mining in Orissa the government now finds itself in a bind on the issue of rehabilitation in Lanjigarh. Corporate-backed developmental activities in the tribal region, one of the most backward places in the country, have come to a standstill following the environment ministry’s ban on mining.

The Anil Agarwal-controlled Sterlite Industries had been ordered by the Supreme Court in August 2008 to spend about 5% of its profit for development activity at Lanjigarh.

Since the environment ministry in August 2010 had barred mining, the rehabilitation package which includes about Rs 10 crore of annual development activity including the building of roads, schools and hospitals, has now been stopped.

"If disbursement from the development fund were to continue, it would imply approval of mining which would be contrary to the ministry’s order," said one person directly involved in the developmental work. On August 30, 2010, the ministry of environment and forests issued a notice barring bauxite mining in Niyamgiri on grounds of violation of environmental norms.

According to the same person quoted earlier, if the government asks Sterlite to stop developmental activity it would amount to contempt of court as it would go against the Supreme Court directive.

"Under our order we suggested rehabilitation package under which Sterlite Industries is required to deposit 5% of annual profits before tax and interest from Lanjigarh project or Rs 10 crore per annum whichever is higher," said the Supreme Court order. "The said project covers both mining and refining. The amount is required to be deposited by Sterlite Industries every year commencing from April 1, 2007. For the above reasons, we hereby grant clearance to the forest diversion proposal," read the order dated August 8, 2008.

… Among the projects which have been left uncertain include a Rs 3 crore hospital and a Rs 1.8 crore tribal school upgradation in the Lanjigarh block.

I hope the central government will consider paying this lost amount of 10 crores/year for developmental activities in that area.

Following is from http://pib.nic.in/release/release.asp?relid=68211.

The Cabinet Committee on Economic Affairs has approved the proposal of the Government of Orissa to set up a Petroleum Chemicals and Petrochemicals Investment Region (PCPIR) in Paradeep. This is the fourth PCPIR which has been approved after PCPIRs in Andhra Pradesh, Gujarat and West Bengal.

A total investment of about ` 277,734 crore is expected in the Orissa Petroleum Chemicals and Petrochemicals Investment Region (OPCPIR), which includes a committed investment of ` 29,777 crore. The proposal envisages development of physical infrastructure such as roads, rail, air links, ports, water supply, power etc. at a cost of ` 13,634 crore. The PCPIR policy prescribes that infrastructure will be created/upgraded through Public Private Partnerships to the extent possible and Central Government will provide the necessary Viability Gap Funding (VGF). Accordingly, Government of Orissa (GoO) has sought support from Government of India involving a commitment  of 716 crore on account of VGF funding for one port and three road-related projects.

The total employment generation from the OPCPIR is expected to be about 6.48 lakh persons comprising direct employment to 2.27 lakh persons.

The PCPIR policy is a window to ensure the adoption of a holistic approach to the development of global scale industrial clusters in the petroleum, chemical and petrochemical sectors in an integrated and environment friendly manner. The idea is to ensure the setting up of industrial estates in a planned manner with a view to achieve synergies and for value added manufacturing, research and development.

The Government of Orissa proposes to set up a PCPIR at Paradeep extending over parts of Kujang and Ersama blocks of Jagatsinghpur district and Mahakalpada and Marsaghai blocks of Kendrapara district.

The State Government proposes to implement the Orissa Petroleum Chemicals and Petrochemical Investment Region (OPCPIR) under the Orissa Development Authorities Act, 1982, which is an existing State law. The State Government proposes to constitute the Greater Orissa Paradeep Development Authority as the authority in charge of the development of the Paradeep PCPIR.

The delineated region has a strong industrial base with major processing activities at present including Paradeep Phosphates Ltd., IFFCO’s Fertiliser Plant, Essar Steel Plant, Goa Carbons (Paradeep Carbons Ltd), Paradeep Port etc.

Indian Oil Corporation Ltd. (IOCL) has been identified as the Anchor Tenant for the Orissa PCPIR. IOCL signed a MoU with GoO in 2004 for setting up a 15 MMTPA grassroot refinery at Paradeep in the first phase at a cost of ` 29,777 crore. The Refinery is likely to be commissioned by March 2012 and should be fully stabilized by November 2012. The Refinery will have a Crude and vacuum Distillation Unit, a Hydrocracking Unit, a Delayed Coker Unit and other secondary processing facilities. It will also have an Integrated Gassification Combined Cycle Plant for production of steam, power and hydrogen from petroleum coke for captive use in the refinery at the cost of about ` 935 crores. A petrochemical complex will be set up at a later date depending on the market conditions.

A Preliminary Environment Assessment Report (EIA) has been conducted. The State Government will carry out a detailed EIA as per the EIA notification.

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VBA/SH/LV

Earlier some news papers had reported that with the Cairn’s deal and the upcoming IPO of Sterlite Anil Agarwal may become the richest Indian and among the 5 richest in the world. Considering his interest in Odisha (for now in Kalahandi, Jharsuguda and Puri) it is important to know about what he has in mind. An interview is a better medium than articles and propaganda pieces. So here is an excerpt from his interview to CNBC as given in moneycontrol.com.

Q: Let me talk about the other controversy that you are currently dealing with and that is with your Lanjigarh refinery where the ministry of environment or the center has said that you violated environmental norms, you did not have appropriate clearances before you went ahead and actually began construction and your expansion there. You have of course refuted all of these allegations, you have responded to the government showcause notice to you. There was a committee that actually setup, and the committee also said that you flouted the environment norms. is it the end of the road as far as your Lanjigarh expansion plans are concerns? Are you feeling more confident? Have you spoken with Jairam Ramesh? Do you intend speaking with Jairam Ramesh to present your case?

A: Let’s look at the overall picture. This is a story of aluminium. We are in a natural position to produce aluminum which is green metal which is required for human development on a day to day basis. China produces 22 million tonne of aluminium against the 1.5 million tonne that we produce.

In seeing that Rs 45,000 crore has already been invested in the aluminium sector and we are producing aluminium and we are running this plant very well. Now to produce aluminium we need bauxite. That’s a fundamental (requirement) to have bauxite. India has one of the finest and huge reserves of bauxite, of which Orissa has largest bauxite and Lanjigarh area has the largest bauxite and that’s why we setup the plant there.

The intention is that we have already invested the money. At the moment we are buying the bauxite from outside and running the plant which is not natural. We have complied with all the rules. Why would somebody go to Kalahandi and invest USD 2 billion. It’s the most backward area of India. We have gone there and invested on the presumption because here is the bauxite and here development will take place. Lanjigarh and Kalahandi have a different face today.

Q: But the tribal community that is currently based there in the Niyamgiri Hills believes that they don’t want Vedanta, they don’t want your refinery, they don’t want you to mine there. And you’ve had NGO after NGO, you’ve had the Church of England, you have had Bianca Jagger, you have had the Center for Science and Environment, you have had of course the government appointed committee saying that you are in violation of environmental norms. The Center for Science and Environment has gone as far as to say that Vedanta and Anil Agarwal are history sheeters when it comes to environmental violation?

A: You must know that I have used this word not a blade of grass has been moved. What are you talking about violating the norms? Not a blade of grass has been moved on that and that mine isn’t on our name. We were supposed to get the clearance, with the joint venture or the Orissa government was supposed to do and before that this came up. Sometimes I believe that there are vested interests.

Q: You believe this is because of vested interest?

A: I’m just saying because how long India will stop? We have to produce aluminium which is required for our day to day development because thousands of industries are to be developed on the basis of aluminium.

Q: But at the cost of destroying the environment, at the cost of displacing the tribal community that is based there because that’s the allegation?

A: One thing I can tell you as Anil Agarwal, I will never flout. I am more sensitive about our people, our Adivasi people than anybody else. I am more sensitive. Orissa is only bauxite – bauxite – bauxite. We all are working together; we are looking forward to get the bauxite to run our plant.

Q: Is this politics at play? Let me ask you directly do you feel that this is politics at play, that you have gotten caught between the politics of the BJP, the BJD and the Congress party. Rahul Gandhi visited the Niyamgiri region, visited Lanjigarh and said that I am your sipahi in Delhi, I am the tribal community’s sipahi in Delhi. Do you believe that you have gotten caught between the politics of the Congress, the BJP and the BJD?

A: I can tell you that Rahul Gandhi was very clear that he is not against development. He was definitely and we all are with him as far as tribals are concerned. We will make sure that whatever the government policy is and whatever the government wants for the tribal, as far as we are concerned we are not going to touch anything unless it has been completely settled down. But Orissa has huge Bauxite. What you are talking about is may be quarter percent of what they have.

Q: You can shift the location you are saying. That if indeed you were not get clearance as far as mining in this region is concerned you would look at other regions?

A: Because there is only Bauxite. Huge employment will be created; we need aluminium and the 25 years can you believe after Nalco there is no mining which has opened.

Q: Are you going to talk to the Congress, have you reached out to the Congress party? There seems to be a perception that there is some sort of trouble when it comes to the Congress and its relationship with Anil Agarwal, is that a true perception?

A: I don’t have to believe because everything has been done. What you are seeing what has not happened. What you are not seeing is what has happened. We have invested almost USD 20 billion in India, created huge employment, paying huge income tax. There is no reason to believe that government is not with us. Otherwise they will never do it.

But when the question comes of tribals we are with them. When it comes to Cairn Energy I am giving them enough, if there is anything which we can do to take the country into the next level. So if you look at our credentials, we have worked with the government all the time and we have got all our clearances for our power plant, for our aluminum plant.

Q: Jairam Ramesh doesn’t seem to think so?

A: He has given 50 clearances to us, except these two clearances. I am just thinking 40–50 clearance must have come through him.

Q: So what is the problem with these two clearances you think because you continue to believe that you have done everything as far as getting the environmental clearances are concerned, that you have not flouted any norms, why do you believe that we have reached this point where you have been asked not to construct further, not to expand further, there is a status quo as far as your plans for Lanjigarh are concerned?

A: We are in democratic country, we are not in China. When something is there somebody has to address and we all are addressing jointly because my agenda is not different than the government’s. We live in a democratic country and we have to take our society with us.

If you look at it, aluminium is very important metal and we have to make sure that a couple of million tonne of aluminium is added to our country.

Following is an excerpt from a report in Telegraph.

… the single-window clearance committee of the state government, cleared five proposals worth Rs 1,340 crore. Industries secretary T. Ramchandru said that Orissa-based Konark Kranti Energy would set up a petroleum complex at Paradip and a petroleum storage facility at Dhamra port. “The company will invest Rs 300 crore,” he said.

Britania Industries Limited would also set up a plant at Khurda with an investment of Rs 51 crore.

Around 700 people will be employed by the firm. Everest Industry would set up a corrugated asbestos plant at Somanthpur in Balasore with an investment of Rs 69 crore, Chariot Steel and Power would expand its cement plant at Sundergarh and invest Rs 320 crore while Nababharat Ventures Limited would set up a power plant with an investment of Rs 600 crore, he added.

Thanks to Kalahandia.blogspot.com for the pointers. Following is an excerpt from a report in sify.com.

Railway Minister Mamata Banerjee Tuesday said the railways will usher in an industrial boom in the country as her ministry is to set up 20 new industries in the next one year.

‘We will set up 20 more heavy industries like wagon factories in underdeveloped areas of the country like Kalahandi in Orrisa, in Telangana (in Andhra Pradesh) and in Junglemahal (Maoists affected area),’ said Banerjee, while addressing a function to commence the work for the Dedicated Eastern freight Corridor at Dankuni.

Following is an excerpt from a blog entry in kalahandia.

To a local proposal through Vision Kalahandi 2020, Sri Sri Ravishankar ji has also agreed for a branch of his University in Kalahandi …

Following is an excerpt from a report in Business Standard.

…  A high level delegation of the state government which was recently on a visit to Pune, the hub of the country’s automotive industry, has got some positive signals from the auto majors.

"Tata Motors, Fiat and John Deere have evinced interest in setting up their manufacturing bases in Orissa. These auto majors have assured us that the would definitely keep Orissa on their investment radar while pursuing their expansion plans and this is a positive development”, C J Venugopal, chairman and managing director of Industrial Promotion and Investment Corporation of Orissa Ltd (Ipicol) told Business Standard.

Apart from Venugopal, the state industries secretary Saurabh Garg; chairman and managing director of Industrial Infrastructure Development Corporation of Orissa (Idco) Priyabrata Pattnaik and veteran business leaders of the state who were part of the delegation, made a detailed presentation to the prospective investors.

We have asked the prospective investors in the auto sector not to be carried away by the negative publicity surrounding the projects of Posco and Vedanta. Our objective was to sensitize these investors who had never considered Orissa as an ideal investment destination for auto manufacturing. Once, we convince the big auto manufacturers to set up their manufacture ring bases in the state, the auto ancillaries will automatically follow”, he added.

The high profile delegation highlighted the strengths of Orissa including the state’s stable political climate, enabling infrastructure, consistently healthy GDP growth for the past few years, availability of cheap and productive labour and low incidence of labour unrest.

It is our earnest endeavour to diversify the state’s investment base and getting the auto majors to invest is the first step in this direction, Venugopal said, adding, “we are making efforts to get investors in sectors like automobiles, chemicals and food processing as the state has already attracted large number of investors in sectors like steel, aluminium, power and .”

Following is an excerpt from a report in Pioneer.

… Balasore, which has around 70 per cent of the State’s plastic units, would soon turn into a plastic industry hub with this training centre while a plastic park is also in the offing and the work under the Industrial Up-gradation Scheme is in progress. Jena informed that Balasore is very strategically located between two upcoming Petrochemical Investment Regions at Nayachar, Haldia, and Paradip. There is potential for Balasore to be the hub of Plastics Industrial Corridor stretching on the East Coast of India.

Establishment of the APPTC at Balasore would act as a catalyst to stimulate growth of plastic industries in general and plastics processing industries in particular, he said. He said cooperation between the Centre and State is required for development.

State’s Minister of Industries and Steel and Mines Raghunath Mohanty said the APPTC’s intake for this year would be 150 and 100, respectively, for skilled and short-term courses while the full-fledged intake would be 480. The APPTC is being established by the Central Institute of Plastics Engineering and Technology (CIPET) on an area of 8 acres of land allotted by the State Government at a cost of `15 crore, which is being shared equally by the Central and State Governments.

Union Secretary of Chemicals & Petrochemicals M Raman informed that a proposal of the State Government to set up a PCPIR at Paradip has been recommended by the high-powered committee and its final approval is expected shortly. The total employment generation from the OPCPIR is expected to be about 6,48,000 persons, comprising of direct employment to 2.27 lakh and indirect employment to 4.21 lakh.

Balasore should also try to take advantage of its proximity to IIT Kharagpur.

Following is from a Business Standard report.

The state has attracted investments worth Rs51963.54 crore in the July-September quarter of 2010-11, reinforcing its image as an investor friendly destination.

… Of the 22 proposals that the state has received in the July-September period of this fiscal, seven have been in the energy sector followed by six in the steel and mines sector and three in the cement sector.

Investment proposals in the energy sector have been to the tune of Rs32024.76 crore with a cumulative capacity of 5175 Mw. Hecate Power Company Ltd has proposed to set up a 1080 Mw (4×270) thermal power plant in Bolangir district at a cost of Rs5350 crore.

Samvijaya Power and Allied Industries Ltd has proposed to set up a 1320 Mw (2×660) thermal power plant at Rampela in Jharsuguda district at an investment of Rs6828.38 crore.

Another power firm- Arissan Energy Ltd has also proposed to set up 1320 Mw (2×660) thermal power plant at the same location, entailing an investment of Rs6828.38 crore.

Similarly, Action Ispat and Power Ltd has evinced interest in setting up a 1320 Mw (2×660) thermal power plant at Puruna Pani in Boudh district at a cost of Rs8079.74 crore.

Embassy Nirman Pvt Ltd has proposed to set up a 135 Mw coal based power plant at Ghantikhal in Cuttack district at an investment of Rs618 crore.

Moser Baer Power and Infrastructures Ltd has proposed to put up a 1320 Mw (2×660) power plant in Bolangir district at a cost of Rs7400 crore.

Sonepur Energy and Oil City Pvt Ltd has lined up an investment of Rs5000 crore in setting up a gas processing plant and petrochemical complex at Sonepur in Ganjam district.

In the steel sector, ARSS Steel & Power Ltd has proposed to set up a three million tonne per annum (mtpa) steel plant at Boinda in Angul district, involving an investment of Rs10900 crore.

Similarly, Neepaz B C Dagara Steels Pvt Ltd, has planned to set up a 0.4 mtpa integrated steel plant and a 45 Mw captive power plant (CPP) at Rairangpur in Mayurbhanj district at a cost of Rs1152 crore.

International Minerals Trading Company Pvt Ltd has proposed to set up an iron ore fines beneficiation plant at Barbil in Keonjhar district at a cost of Rs150 crore.

In the cement sector, Visa Cement Ltd intends to set up a portland cement plant at Bargarh at a cost of Rs1840 crore. Jaipur Cements Pvt Ltd has proposed to set u a 0.5 mtpa cement grinding plant at Kalinganagar in Jajpur district at a cost of Rs63.50 crore.

Bhushan Infrastructure Ltd has planned an integrated township at Mangalpur in Dhenkanal district at an investment of Rs425 crore. J K Paper Ltd plans to set up a paper board plant at Jaykaypur in Rayagada district at a cost of Rs1475 crore.

Following is an excerpt from a report in mainichi.jp.

Toyota Tsusho Corp. will set up a refining plant in India for rare earth minerals used in hybrid car motors in a bid to diversify supply sources, company officials said Friday.

The Nagoya-based trading house will start building the plant in India’s eastern state of Orissa possibly by the end of this year.

The refinery is expected to go on line next autumn with an annual capacity of 3,000 to 4,000 tons of mineral ores, including neodymium, for export to Japan, they said.

… Rare earths consist of 17 elements such as neodymium, dysprosium and cerium, and are used in the production of high-tech products such as cellphones, digital cameras, flat-panel televisions and hybrid vehicles.

Following is an excerpt from http://www.hospitalitybizindia.com/detailNews.aspx?aid=9394&sid=1.

Bhubaneswar-based BRM Group plans to open more boutique hotels in Orissa including Bhubaneswar and Puri. The Group will spend Rs 100 crore for both the properties, which are scheduled to open by the end of this year. The hotel in Bhubaneswar will have 35 rooms, while the Puri hotel will have 40 rooms. Recently, the Group has launched their first hotel in Cuttack named as Hotel Triple C.

According to Dr Biswajit Mohanty, Chairman, BRM Group, the Group will become a 120-key hotel chain by the end of 2011. … The Group also plans to go out of Orissa to destinations like Darjeeling, Goa, in future.