Archive for the 'INDUSTRY and INFRASTRUCTURE' Category

“Advanced Plastic Processing Technology Centre” to be Set up at Balasore in Orissa: PIB

Balasore, Balasore- Chandipur, Plastic products cluster - Balasore Comments Off on “Advanced Plastic Processing Technology Centre” to be Set up at Balasore in Orissa: PIB

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

Source said, the centre may come up at Baliapal, nearly 30 km from Balasore, where government buildings built at the cost of Rs 4.5 crore during the late 80s are lying unutilised. Last year an experts’ team from CIPET had visited the spot and submited a report to the government. The infrastructure has been built on around 150 acres of land under the rehabilitation package during the proposed National Test Range (NTR) which was stalled in 1992 due to vehement opposition.


Following is from the PIB release http://pib.nic.in/release/release.asp?relid=66602.

Plastics have become the key drivers of innovation and application development. Plastics processing or product manufacturing industries is evincing increased competition worldwide due to globalization of the plastics trade. In the prevailing scenario of liberalization, an obvious preference goes to global supplier, who can deliver the qualitative products at any location within stipulated time frame across the globe. Due to globalization of trade and cost pressure, plastics industry in Indian context is looking forward to exploit the opportunities available in the export as well as domestic market. This would facilitate establishment of large-scale production facilities and processing plants to cater to the requirements of user industry.

Around 70% of the plastics industries of Orissa are situated in and around Balasore. It is also envisioned that during the end of XI Five Year Plan, around 100 more plastics processing industries are expected to be established. Establishment of Plastic Park and the upcoming Plastics Processing Industries in and around Balasore will boost the requirement of well trained technical manpower for the Plastics Industry. 

The raw materials availability for the plastic industries in Balasore can further be increased to ensure sustainable development as one petrochemical complex is coming up at Paradeep (to be developed by IOC). 

Balasore is also an industrially developed district, two sea ports are coming up near Dhamra and Chudamani. With the constant efforts of the local Member of Parliament and Minister of State for Chemicals & Fertilizers, Shri Srikant Kumar Jena, it has been decided to set up an Advanced Plastic Processing Technology Centre (APPTC) at Balasore to meet the increasing requirements of the trained technical manpower for the plastic industry. Establishing APPTC – a Unit of CIPET Bhubaneswar will not only result in fulfilling the requirement of additional skilled Technical Manpower in the area of Plastics Processing but also will facilitate in rendering the Technology Support Services. 

APPTC will fill up the demand & supply gap of skilled manpower of the processing industry in the Eastern region of the country by conducting long-term & short-term training programs in the areas of Plastics Processing Technologies. 

The Planning Commission has approved the establishment of APPTC in Balasore at a total project cost of Rs.1500 lacs. CIPET Corporate at Chennai would be the Apex Body directing and controlling the project activities as per the directives of Department of Chemicals & Petrochemicals, Government of India. The State Government of Odisha has also agreed to share 50% of its cost and provide land for setting up of APPTC at Balasore. 

Benefits of Establishing the APPTC at Balasore: 

• During the first year of its establishment, the centre is expected to train & develop around 150 students in the field of plastic processing through long-term academic programmes and around 100 participants through short duration training programmes in the areas of plastic processing technology. 

• Once the APPTC become full-fledged, the total intake of the students for long term courses will be 480 for three long term courses. In addition, the APPTC will also train 250 technical personnel from plastic industry every year through short term technology upgradation programmes. 

• The APPTC centre at Balasore will also play a catalytic role in providing technology support services to the plastic & allied industries in around Balasore where a Plastic Park is being planned. Further, it is expected that more than 150 plastics processing / allied industries are likely to be started. This will boost the skilled manpower requirement in the area of plastics processing. In addition, as Balasore is well connected with other parts of the State and also the neighbouring States, the industries located at these places will also utilize the services of Balasore Plastics Park. 

The dream of establishing a dedicated specialized centre on “Advanced Plastic Processing Technology Centre – (APPTC)” at Balasore, Orissa – a unit of CIPET, Bhubaneswar at Balasore has become a reality mainly on account of constant persuasion and sustained efforts made by Minister of State for Chemicals & Fertilizers. 

DNM/PKM


This is good. But the publicity is somewhat disproportional with respect to only a 15 crore project out of which the state is responsible for 50%. Other central ministers get much more for their states. Some recent examples are:

  • Mamata Banerjee’s gifts to W. Bengal with respect to Railways and metro.
  • W. Bengal minister’s support to get approval of 500+ crores for converting BESU to IIEST.
  • Recent attempts by Pranab Mukherjee to get 500 crores for IIT Kharagpur expansion.

An alternate view on Vedanta and Niyamgiri : Samaja Op-ed

Aluminium, Anil Agarwal, Bauxite, Kalahandi, Vedanta Comments Off on An alternate view on Vedanta and Niyamgiri : Samaja Op-ed

Earlier we posted the author’s article in English. This is for the benefit of Odia readers.

IOC aims to start Paradip refinery by March 2012: Economic Times

IOC, Jagatsinghpur, Paradip - Jatadhari - Kujanga, Petrochemicals, Refinery Comments Off on IOC aims to start Paradip refinery by March 2012: Economic Times

Following is an excerpt from a report in Economic Times.

State-owned Indian Oil Corp (IOC) today said its Rs 29,777-crore Paradip refinery in Orissa will be commissioned by March 2012 and will cater to domestic market rather than exports as previous thought, due to rise in fuel demand at home.

…The refinery will produce 5.97 million tons of diesel, 3.4 million tons of petrol, 1.45 million tons of kerosene/ATF, 536,000 tons of LPG, 124,000 tons of naphtha and 335,000 tons of sulphur, all of which will be for sale in domestic market.

Some of 200,000 tons of propylene to be produced by the unit may be exported, he said.

Bankapur said the refinery will start producing fuel by March 2012 when it will commission the primary units like Crude Distillation Unit. Secondary units will be commissioned by July, 2012, and operations stabilised by November, 2012.

Besides the Rs 29,777 crore cost of refinery, the Paradip project also includes a Rs 1,793 crore pipeline to Raipur and Ranchi. The 1,100 km pipeline will carry fuel produced in the unit to consumers in Orissa, Jharkhand, Chattisgarh and Madhya Pradesh. Besides, a marketing terminal at the cost of Rs 414 crore is also being built.

IOC may take companies like Saudi Aramco and Kuwait Petroleum as equity partner in the Paradip refinery if they agree to supply most of the crude oil requirement of the 15 million tons unit.

The company wants someone who can commit long-term crude supply as equity partner but so far nothing has materalised.

IOC had last year signed a loan agreement with a consortium of lenders led by State Bank of India for term loan of Rs 14,900 crore for the project.

Bankapur said the company had some time back split the refinery-cum-petrochemical complex into two, deciding to complete the refinery first and follow with the chemical unit.

The feasibility of setting up the petrochem complex will be studied in next 3-4 months, he said.

The Paradip refinery is being configured to process the toughest, heaviest and the dirtiest crudes which are cheaper than the cleaner and easier varieties.

The refinery will have a Nelson Complexity Index of 13, the highest in the world.

Update on Tata Steel projects in Kalinganagar and Gopalpur

Berhampur- Gopalpur- Chhatrapur, Ganjam, Industrial Parks, Jajpur, Jajpur Rd- Vyasanagar- Duburi- Kalinganagar, Steel, Tatas 4 Comments »

Following is from a PTI report in http://www.smartinvestor.in/market/Marketnews-45973-Marketnewsdet-Tata_Steel_project_to_come_upinOrissaby_2014.htm.

Tata Steel is optimistic about operating its proposed industrial park project at Gopalpur in Orissa’s Ganjam district and commissioning the steel plant at Kalinga Nagar in Jajpur district by 2014.

The company gave this assurance to the state government today when Tata Steel’s Managing Director H M Nerurkar met Chief Minister Naveen Patnaik at a review meeting on the proposed industrial park at Gopalpur.

"We will be able to operate the industrial park at Gopalpur by March 2013 and commission first phase (3 mtpa) of the steel plant at Kalinga Nagar by March 2014," Nerurkar told reporters after meeting the chief minister.

Stating that work on both the projects is going on smoothly, the Tata Steel MD said that a peaceful industrial environment was gradually being established at Kalinga Nagar where the company’s proposed 6mtpa steel plant was being set up.

Though the company had signed MoU to set up a 6mtpa greenfield steel factory at an investment of Rs 15,600 crore in 2004, the project could not meet the deadline of 2010 due to opposition from the local people.

However, now the new commissioning target was March 2014, Nerurkar said, adding that the company had so far invested Rs 1,500 crore in the steel plant project. Tata Steel has also placed equipment orders worth Rs 6,300 crore and some machinery had reached the project site.

About 60 per cent of the land at Kalinga Nagar industrial complex had been acquired so far, Nerurkar said.

Referring to the Industrial Park, the foundation stone of which was laid by the Chief Minister on August 20 earlier, Nerurkar said that construction of the boundary wall work was going on smoothly.

The industrial park is expected to attract investment of Rs 10,000 crore to Rs 15,000 crore and generate employment for about 10,000 people, company sources said, adding Tata Steel would invest Rs 1,000 crore in the project.

The proposed Industrial Park includes a 50,000-TPA ferro chrome plant and 400,000-TPA rebar steel mill. Both the units were expected to generate employment opportunities for more than 1,000 people.

The park will primarily attract investments in steel and allied downstream industries, engineering, chemicals and other emerging sectors.

The company which had initially acquired land for setting up a steel plant in mid 90s, however, scrapped the project due to non-availability of water for the purpose.

Tata Steel would use techniques to use sea water by desaliation besides designing rainwater harvesting and 100 per cent recycling.

Tata Steel group is investing Rs 35,000 crore in the steel, ferro alloys, port, power and other sectors in Orissa.

Update on the bio-tech park near Bhubaneswar

Bhubaneswar- Cuttack- Puri, BioTech, Pharma, Business Standard, Central grants, Khordha 1 Comment »

Following is an excerpt from a Business Standard report in sify.com.

Construction work on the Rs 100-crore Konark Knowledge Park, a biotech-pharma-IT hub, being developed by Hyderabad-based Bharat Biotech International Limited on around 65 acres of land at Andharua on the outskirts of the city, is set to take off by March 2011.

"The biotech park would have all statutory clearances within four months and construction work will begin soon after that", an official source told Business Standard.

… The land leveling for this project is already over and efforts are underway to provide piped water and power supply to the park.

The park is set to be completely operational within eight years of the commencement of construction work.The park would have a Biotechnology Incubation Centre spread over 10 acres. The incubation centre to be developed within the park would cater to the needs of the researchers, entrepreneurs and students.

The Centre would provide equipment called the biotech incubator worth Rs 25 crore for the incubation centre.The biotech industry in the country is growing at a very good pace and this incubation centre is set to emerge as a Centre of Excellence.

The Konark Kowledge Park is the first of its kind venture to be developed on the public private partnership (PPP) mode in the state in the field of science and technology.

… The Industrial Infrastructure Corporation of Orissa (Idco) has been appointed as the nodal agency for the development of this integrated park would provide all external infrastructure facilities like roads, water supply and electricity for this complex.

Location for Tata power in Naraj is more apt for a Knowledge Park

Bhubaneswar- Cuttack- Puri, CENTER & ODISHA, Cuttack, ENVIRONMENT, HRD-n-EDUCATION (details at orissalinks.com), IT, New Indian Express, Indian Express, Financial express, Tatas, Thermal 2 Comments »

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

The wildlife wing of the Forest department has raised concerns over the setting up of 1,000 mw thermal power plant proposed by Tata Power Company at Naraj.

Its proximity to critical sites, impact of pollution on them as well as on the wildlife are issues the wildlife wing is worried about. The ` 4,900 cr coal-based power project is proposed at Naraj Marthapur, about 12 km from Cuttack and 20 km from Bhubaneswar.

“The Centre had referred the project site matter to me. Subsequently, I inspected the proposed power plant site and submitted a report in which I have indicated certain concerns relating to environment and wildlife,” Principal Chief Conservator of Forests (Wildlife) P N Padhi said on Monday.

One of the major issues is its location. According to Padhi’s report, the power plant is proposed amidst six critical sites.

It has Bhubaneswar and Cuttack on both sides and it is located between two major rivers __ Mahanadi and Kathjodi.

Besides, it is flanked by two wildlife habitats __ Chandaka- Dampara wildlife sanctuary on the one hand and Nandankanan Zoological Park and Zoo, also a notified sanctuary, on the other.

“With two protected areas (PAs) on its sides, a thermal power plant may have adverse impact on wildlife,” Padhi said. Chandaka, for one, is an elephant sanctuary and has witnessed growing man-animal conflict over the past 10 years.

Besides, the jumbos are known to stray out of their habitats more frequently in the last few years.

Similarly, apprehension of pollution is a major concern …

The power project, which is located in Cuttack Sadar tehsil, needs about 990 acres. It is well close to a road that connects Khurda, Chandaka, Barang and Gobindpur. …

That location (close to Sri Sri University) is apt for a knowledge park. Since the Tatas have already worked hard on the land acquisition Odisha government should tell them that instead of a power plant they should create a Knowledge Park there. It could include a large operation of TCS, a TCS training center like the Infosys center in Mysore, space and infrastructure for multiple universities, medical colleges, etc.

There the total land area is about 990 acres. Currently such an amount of contiguous land is not available so close to Bhubaneswar where one can build IT parks and knowledge parks.

So the Odisha government should consider giving the Tatas some other land for their power plant and use that land for a knowledge park, possibly even built by the Tatas.


Odisha Single Window Clearance Committee approves new investment of 6500 crores

Angul, Balasore, Bhadrakh, Cement, Chemicals, Food processing, INVESTMENTS and INVESTMENT PLANS, Jagatsinghpur, Keonjhar, Khordha, Manufacturing, Mayurbhanj, Nayagarha, Paper and newsprint, Sambalpur, Single Window Clearance (SLSWCA), Steel, Sundergarh 4 Comments »

Following is from a report in Hindu Businessline.

… Orissa government on Friday approved fresh investment of Rs 6,500 crore …

The investment proposals were approved by the Single Window Clearance Committee (SLWCC) meeting chaired by the chief secretary Mr B K Patnaik here.

“The 16 projects approved today will give direct employment to 15,000 people and provide indirect employment for another 25,000 persons,” Industries secretary Mr Sourav Garg told reporters adding that projects worth less than Rs 1,000 crore got clearance from the SLWCC.

Stating that the projects were in cement (4 units), food processing (one unit), manufacturing (one unit), power (one unit), paper (one unit) and steel (five units) sectors …

The name of the companies and additional details are given in this report from Samaja.

New investments and investment projects under implementation

Angul, Anugul- Talcher - Saranga- Nalconagar, Balasore, Balasore- Chandipur, Bhadrakh, Bouda, Business Standard, Cement, Coal to diesel, Cuttack, Dhamara- Chandbali- Bhitarakanika, Gasification (from Coal), Investment ranking, Jajpur, Jharsugurha, Keonjhar, Ore pelletisation, Sonepur, Sundergarh 2 Comments »

Following is from a Business Standard report in sify.com.

Orissa has continued its growth momentum as a favourite destination for investors attracting investments worth Rs 98,929.49 crore in the April-June period of this fiscal. The most of these new investment proposals are in sectors like power, steel, cement, food processing and downstream industries.

The single largest investment proposal of Rs 45,000 crore has come from Strategic Energy Technology Systems Pvt Ltd for a coal to liquid project at Angul on May 12, 2010.

The bulk of the investments- Rs 33,569.25 crore has been proposed in the power sector with proposals for setting up of Independent Power Plants (IPPs) with a cumulative capacity of 7740 MW.

Ferro Alloys Corporation (FACOR) Power Limited has proposed to set up a 270 MW (2×135) coal-based thermal power plant at Haridaspur in Jajpur district. Similarly, KU Projects intends to set up a 1320 MW (2×660) power plant at Thakurpur in Sonepur district at an investment of Rs 7260 crore. This project has been cleared by the High Level Clearance Authority (HLCA) of the state government.

Similarly, Shivani Thermal Power Station of Ghaziabad (Uttar Pradesh) has proposed to set up a 1320 MW (2×660) power plant at Chhotapadagan in Cuttack district at a cost of Rs 7554.54 crore.

Visa Power has submitted a revised proposal to the state government owned Industrial Promotion and Investment Corporation of Orissa Ltd (Ipicol) to set up a 1320 MW (2×660) power plant at Brahmanabasta in Cuttack district, entailing an investment of Rs 6319.48 crore.

Shri Anant Infra Energy Pvt Limited has evinced interest to set up a 210 MW coal-based power plant at Garjan Bahal in Sundergarh district.

Responsive Industries Ltd has proposed to set up a 1320 MW (2×660) power plant at Manmunda in Boud district at a cost of Rs 6487.50 crore.

CLP Power India Pvt Ltd plans to set up a 1980 (3×660) MW power plant at Majhapada in Sundergarh district at a cost of Rs 10,000 crore.

Among the investment proposals in the cement sector, Kolkata-based Icore Super cement Ltd has proposed to set up a cement plant at Somnathpur in Balasore district at an investment of Rs 151 crore.

While Ramco Industries Limited has evinced interest to set up a 120,000 tonnes per annum asbestos fibre cement sheet plant at Jharsuguda at a cost of Rs 35 crore, Madras Cement intends to set up a 4000 tonne per day cement plant at Nandibera in Malkangiri district at a cost of Rs 750 crore.

Reliance Cementation Ltd has submitted proposal for a 2.8 million tonne per annum cement plant at Jallangbara in Sundergarh district at a cost of Rs 970 crore.

Similarly, Binani Cement plans to set up a one million tonne per annum clinker grinding unit at Dhamara in Bhadrak district at a cost of Rs 130 crore.

In the steel sector, Rashmi Metalliks Limited has proposed to set up a three million tonne per annum pelletisation plant and 44 m captive power plant at Baliarpur in Bhadrak district at an investment of Rs 3465 crore.

The Orissa Minerals Development Company Limited has evinced interest for a two million tonne per annum beneficiation and pelletisation plant at Dalki in Keonjhar district at a cost of Rs 889 .

Following is excerpted from a report in indiainfoline.com.

The statewise breakup of investment under implementation as on June ’10 (Rs. Crores) has been Maharashtra (666065), Orissa (498190), Gujarat (487361), Andhra Pradesh (478612), Tamil Nadu (334960), UP (326356), Haryana (318488), West Bengal (288109), Karnataka (279033), Jharkhand (173008), Chhattisgarh (167557), Madhya Pradesh (165848), Kerala (126223), Punjab (115683), Rajasthan (84955), Bihar (59339), Jammu & Kashmir (44339), Himachal Pradesh (43928), Uttrakhand (38869), Assam (36124).

… The capital goods industry’s performance is mainly on account of spurt in investment activity in Haryana, UP, Kerela, Orissa and Uttarakhand in the first quarter of 2009-10.

… The rate of implementation (% share in total live investments) as per June 2010 in prominent states, has been the most in Haryana (81.5) followed by UP (70.6), Assam (65.9), Maharashtra (61.7), Punjab (60), Andhra Pradesh (58.5), Himachal Pradesh (56), Jammu & Kashmir (53.1), Kerala (51.9), Bihar (50.5), West Bengal (49.4), Tamil Nadu (47.7), Orissa (44.3), Chhattisgarh (40.6), Madhya Pradesh (40.2), whereas states like Uttrakhand (39.1), Gujarat (38.9), Rajasthan (34.7), Karnataka (32.7) and Jharkhand (28.2) are lagging behind in this aspect.

Status of Essar Steel projects in Odisha

Iron Ore, Jagatsinghpur, Ore pelletisation, Paradip - Jatadhari - Kujanga, Ruias/Essar group, Steel Comments Off on Status of Essar Steel projects in Odisha

Following is from a report in Orissadiary.

The 6-million tonne Essar Steel pellet plant here will be made operational by October this year. The `2,200-crore project includes an 8-MT ore beneficiation plant at Joda and Barbil and a 250-km slurry pipeline from Joda to Paradip. The company plans to expand the beneficiation and pellet manufacturing capacities to 12 MT in the future.

Initially, the company will source iron ore from private mines at Joda and Barbil. However, the company expects that the State and Central Governments will grant it lease for a captive mine in the long run.

The pellets to be produced at Paradip would be exported through the Paradip Port to Essar’s steelmaking unit at Hazira in Gujarat, which is undergoing a capacity expansion to 9.6 MT from 4.6 MT by 2012, said sources.

Following is excerpts from an interview in Business Standard. The investment numbers mentioned there does not quite gel with the numbers mentioned above.

Is there a time frame for realising the long-term vision?

It arises from the commitments, as well as MoUs (memorandums of understanding) with various state govts. These are linked to raw material. It’s a chicken and egg story. You need the raw material, otherwise you are not going to invest. We have our plans in Jharkhand, Chhattisgarh. In Orissa, we are already completing the first phase. In Karnataka, we have signed the MoU and the government is looking to provide land. But we also want the mines. We don’t want to create a situation where all the investments are done and then you say the mines are not available.

The Orissa government has a clause in the MoU that the state will recommend mines once you have made commitments for 25-30 per cent.

Yes, commitments have to be made, which implies it could be orders. But a 12-million tonne plant will cost anything between $12 billion and $15 billion. Thirty per cent of that will be $4.5 bn. How can anyone expend $4.5 bn in the hope that one will get the mines? It’s easier for smaller players.

Odisha plans for a state-specific SEZ policy

Aluminum ancilaries, Anil Agarwal, Birlas, Cuttack, Ganjam, IDCO, IT, IT, Back office, BPO, Jajpur, Jharsugurha, Jindal, Khordha, Sambalpur, SEZs, Steel ancilaries, Vedanta Comments Off on Odisha plans for a state-specific SEZ policy

Following is an excerpt from a report in Business Standard.

Under the proposed SEZ Policy, the state government shall not encourage SEZs based on mining and minerals like iron ore, chrome ore and bauxite. However, SEZs based on the use of intermediate products like alumina for smelting, primary metals for further processing on the value chain and rare minerals like tin, limenite, nickel, platinum and vanadium will be allowed.

Moreover, the state shall not encourage SEZs based on activities like mining that cause pollution. The Orissa State Pollution Control Board shall prepare a list of such industries and the same would be notified by the state government as a negative list.

The mineral based SEZs already approved shall undertake to develop and promote related downstream industrial complexes over a minimum area as prescribed by the Government of India. In the event of non-compliance of this condition, all state concessions shall be withdrawn.

The State Level Single Window Clearance Authority (SLSWCA) shall be the competent authority to screen and recommend SEZ proposals irrespective of the magnitude of investment.

All recommendations of SLSWCA would be placed before the High Level Clearance Authority for approval before making any recommendation to the Government of India.

The state government owned Industrial Promotion and Investment Corporation of Orissa Limited (Ipicol) would function as the state level nodal agency for receipt, scrutiny and placement of the applications before the SLSWCA.

For sector specific projects, the respective nodal agencies like the Orissa Computer Application Centre (OCAC), Industrial Infrastructure Corporation of Orissa Limited (Idco) and Agricultural Promotion and Investment Corporation of Orissa Limited (Apicol) will receive and scrutinize the applications.

As per the SEZ Policy of the state, the import of goods and services made to SEZ units located within the processing zone from the Domestic Tariff Area shall be exempted from Value Added Tax (VAT), entry tax, electricity duty and other cess payable on sales and transactions.

The SEZ Policy of the state has not envisaged any special provisions for backward districts like Kalahandi, Bolangir and Koraput and tribal dominated areas.

Till now, four SEZs have been notified in the state– the sector specific IT/ITes SEZ at Chandaka Industrial Estate in Bhubaneswar developed by Idco, sector specific SEZ for stainless steel and ancillary downstream industries at the Kalinga Nagar Industrial Complex being developed by JSL, aluminium and aluminium products SEZ at Lapanga near Sambalpur being developed by Hindalco Industries and another aluminium SEZ with Captive Power Plant being developed by Vedanta Aluminium Limited at Jharsuguda.

Some of the other Orissa related SEZs plans and approvals that are not mentioned in the above article are (see also http://www.orissalinks.com/orissagrowth/archives/1305):

Investment pouring in to Paradip: Nageshwar Patnaik in Economic Times

Jagatsinghpur, Paradip - Jatadhari - Kujanga, PCPIR, Petrochemicals, Steel Comments Off on Investment pouring in to Paradip: Nageshwar Patnaik in Economic Times

Following are extracted from his article in Economic Times.

  • The port town in Jagatsinghpur district, about 120 km from the state capital of Bhubaneswar, has already emerged as one of the country’s major investment hotspots by attracting investment in excess of Rs 3.5 lakh crore including the Rs 2, 74,134 crore Petroleum Chemicals and Petrochemical Investment Region (PCPIR) and the biggest FDI proposal by Posco to build a 12-million ton steel plant at an estimated cost of Rs 51, 000 crore.
  • The port town already boasts of major fertilizer manufacturers like IFFCO and Paradeep Phosphates Limited, a brewery along with central depot of Indian Oil and other small industries like Kargil Oil, Paradeep Carbon and a host of other units.
  • … an integrated Petroleum, Chemicals, and Petrochemical Investment Region (PCPIR), a Special Purpose Vehicle (SPV) promoted by the state government on the lines of Pudong in China, Rotterdam in Europe and Houston in North America.
  • IOC is already coming up with 15 MMTPA grassroot refinery cum petrochemical complex five kilometer to the south of Paradeep Port at an estimated cost of Rs 25,646. For this, the state government has given incentives to IOC by exempting entry tax on crude oil and sales tax deferment for 11 years. The IOC already has got the required 3344 acres of land.
  • The Railways is also committed to boost connectivity in the Paradeep region which includes the 82-km Paradeep-Haridaspur broad gauge line, being taken up at an investment of Rs 577.78 crore. East Coast Railway (ECoR) has acquired 1,146 acres of private land out of the total of 1,653 acres of land required for the project. This project being implemented by Rail Vikas Nigam Limited (RVNL) is scheduled for completion by March 2011.
  • The other projects in different stages of implementation Hydrate Pellets Ltd’s six lakh tone hydrate pelts plant at Rs 10,724 crore, Essar Steel Orissa Ltd’s six million ton steel plant at Rs 10,721 cr], Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL’s three lakh mtpa green-field complex for Nitric Acid and Ammonium Nitrate at Paradeep at a cost of Rs 400 crore NSL Sugar Ltd’s sugar plant at Rs 800 crore and other mini projects.

One other thing that is not elaborated in the article is that as part of the PCPIR several things will be funded by the state government and several other things will be funded by the central government.The following is excerpted from an older article in Business Standard.

  • “The Centre would provide this money in two phases. While Rs388 crore would come in the first phase of the project, the balance Rs328 crore would be provided by the Government of India in the second phase”
  • … six-laning of NH-5 (A), building a greenfield coastal corridor, construction of all-new greenfield road from Bhubaneswar to Paradip and upgradation of port infrastructure.
  • The six-laning of the NH-5 (A) will be taken up in the second phase of the PCPIR project at a cost of Rs76 crore. The greenfield coastal corridor will involve an expenditure of Rs410 crore out of which Rs 264 will be invested in the first phase while the remaining expenditure of Rs146 crore will be incurred in Phase-II.

  • The construction of all-new greenfield road from Bhubaneswar to Paradip will be taken up at a cost of Rs190 crore while Rs40 crore would be provided by the Centre for upgradation of port infrastructure.

  • Meanwhile, the Orissa government has committed an expenditure of Rs1796 crore on infrastructure development for the PCPIR hub. Out of the envisaged expenditure of Rs1796 crore, Rs 754 crore will be spent on development of arterial roads, Rs 465 crore on water supply, Rs 410 crore on power distribution and Rs136 crore on canal upgradation.


To match these industrial investments in Paradip, the Odisha government needs to make plans for a university, an engineering college and a medical college for this area. Similar plans need to made for the other upcoming industrial hubs at Angul,  Kalinganagar, Jharsuguda and Rayagada; as well as the only existing industrial area of Rourkela which neither has a medical college nor has a regular university.

Peerless plans a 4 star hotel in Bhubaneswar

Bhubaneswar- Cuttack- Puri, Hotels and resorts, Khordha Comments Off on Peerless plans a 4 star hotel in Bhubaneswar

Following is an excerpt from a report in Telegraph.

Peerless Hotels is looking for land to set up four-star facilities in Bhubaneswar, Noida and Navi Mumbai, according to a senior official of the company.

“Our negotiations with the Orissa government for the Bhubaneswar project are at an advanced stage, and if we get the land that we have chosen, the construction of the 80-room hotel will start in another one year,” Peerless Hotels chief executive officer Kunal Sen said.

… “The setting up of a four-star hotel with 80-100 rooms entails an investment of between Rs 75 crore and Rs 95 crore, including land cost that may be between Rs 15 crore and Rs 35 crore depending on location,” Sen said.

SEZ board approves IT/ITES SEZ of Suryo Infra. in Bhubaneswar

Bhubaneswar- Cuttack- Puri, IT, Khordha, SEZs 1 Comment »

Following is from the PIB http://pib.nic.in/release/release.asp?relid=65819.

The Board of Approval of the Special Economic Zones (SEZs) met here today to consider proposals for setting up of Special Economic Zones and also to approve other miscellaneous requests pertaining to SEZs.

Addressing the Board of Approval members, the Chairman informed that so far 577 formal approvals have been granted for setting up of SEZs out of which 363 have been notified. …

In this meeting, the Board recommended grant of Ten Formal Approvals and one In-Principal Approval.

· Formal Approvals:

… IT/ITES – M/s. Suryo Infra Projects Private Limited, Mouza – Tulasideipur, Chandaka, Bhubaneswar, Orissa.

JSPL plans a 5500 crore industrial park at Parang, 10 kms from Angul on the Angul-Chhendipada Road

Angul, Anugul- Talcher - Saranga- Nalconagar, Industrial Parks, Jindal, Steel, Steel ancilaries, Vocational education Comments Off on JSPL plans a 5500 crore industrial park at Parang, 10 kms from Angul on the Angul-Chhendipada Road

Following is  from a report in Telegraph.

Jindal Steel and Power Limited (JSPL), which is setting up a six million-tonne steel plant here, has proposed to the state government to set up an industrial park at Parang.

… “The park, with an investment of Rs 5,500 crore, will provide employment to about 30,000 people, directly and indirectly, and would go a long way for economic empowerment of the state,” he said, adding that the park was also likely to generate about Rs 636 crore revenue for the state.

“For our steel plant, we require a lot of finished materials such as by-products, semi-products, fabrication units, etc. These could be available from the facilities at the proposed industrial park,” he added.

According to project report, JSPL would spend Rs 500 crore while the remaining Rs 5,000 crore would be raised from the parties who would set up the park. JSPL would provide all sorts of infrastructural facilities including water and power to the units at the park. The site selection has been completed and a pre-feasibility report has been prepared and submitted to the Industrial Promotion and Investment Corporation Limited (PICOL) by the company in May. The company requires 1,381 acres of land at Parang for the park. Water will be sourced from the Mahanadi river situated at a distance of 65km from the site.

The project report also said that there would be 250 units of 42 different varieties at the park. Inside the industrial park would be a knowledge park where two colleges — National Training Institute and Industrial Training Institute — would be set up.

Update on Hindalco’s plan for Odisha

Aluminium, Bauxite, Birlas, Rayagada, Rayagada- Therubali 2 Comments »

Following is from a report in http://www.platts.com/RSSFeedDetailedNews/RSSFeed/HeadlineNews/Metals/7176480/.

India’s Hindalco Industries expects to start up its new alumina refinery in the state of Orissa in September 2011, with commercial sales to begin from December, company sources said Tuesday.

Construction on the 1.5 million mt/year refinery began in 2007, and is about 50% done. Based at Rayagada, it will be managed by wholly owned subsidiary Utkal Alumina International Ltd, which is also establishing two bauxite mines at Rayagada and Kalahandi that are also slated to start up next September. The refinery and mines are about 20 km apart and will be linked by a conveyor belt.

Hindalco will eventually use most of the refinery’s alumina for its own production of aluminum, but there will be surplus output for sale, initially 780,000 mt/year, then dropping to 60,000 mt/year around July 2012 when the second of the group’s two new smelters come online.

The firm has a 360,000 mt/year smelter in the state of Madhya Pradesh that is to be completed in July 2011, followed by another unit of a similar size in Orissa a year later.

In addition, plans are underway to double the alumina refining capacity in Orissa to 3 million mt/year by 2014, by which time Hindalco is expected to sell about 50% of the new output.

The alumina expansion will be complemented with further aluminum capacity increases although details have not been announced. The group is also planning to raise its bauxite output at Orissa by 4 million mt/year to 8.5 million mt/year along with the refinery expansion.

Nestle and other food processing units show interest in Odisha

Bhubaneswar- Cuttack- Puri, Food processing, Khordha 9 Comments »

Following is from a report in Business Standard.

The food processing sector is gradually gaining momentum in the state. After a string of investment proposals from biggies in the sector like Britannia, ITC, Parle Agro Indo Nissin and Future Foods, another behemoth in the packaged food industry-Nestle has evinced interest in setting up a state-of-the-art food processing unit in the state at an investment of around Rs 500 crore.

The food processing facility of Nestle would be spread over 50 acres and the Industrial Infrastructure Development Corporation of Orissa Ltd (Idco) has already identified land for the purpose between Bhubaneswar and Khurda, an official source told Business Standard.

Nestle India’s Orissa facility will manufacture the entire gamut of the company’s products including milk products, beverages, chocolates and confectionery.

… Among the other big players in the food processing sector- Parle Agro’s unit has been cleared by the State Level Single Window Clearance Authority while the site selection is underway for the proposed project of Indo Nissin Foods, the noodles maker.

ITC has so far remained non-responsive after initially evincing interest to invest in the food processing sector.

Vision Kalinganagar : To be developed for a population of 10 lakhs by 2025

Ferro-chrome, Industrial Parks, Jajpur, Jajpur Rd- Vyasanagar- Duburi- Kalinganagar, Kalinganagar corridors, Steel, Tatas Comments Off on Vision Kalinganagar : To be developed for a population of 10 lakhs by 2025

Following is from the page http://kalinganagar.tatasteel.com/kalinganagar/vision-kalinganagar.asp.

Kalinganagar Industrial Area is projected to be developed for a population of over 10 lakh by 2025 and it will be extended to 177 square kilometers as envisaged by the State Government. In this connection, Lea Associates of South Asia in association with the School of Planning and Architect, New Delhi and the Centre for Environment and Planning (CEPT) presented a vision document to the Chief Minister for the development of Kalinganagar Industrial Area.

The Kalinganagar Industrial complex in Odisha has been a true realisation of the socio-economic dream that would lead the State into a new era of prosperity. Made possible through dedicated efforts of the State Government over several years, the complex is slated to contribute to the net GDP of Odisha and provide its people with sustained employment and other forms of gainful engagement in the upcoming projects and their ancillaries.



After the success of Asia’s first integrated steel plant set up by Tata Steel in the undivided Orissa-Bihar-Bengal in 1907, or the employment potential revealed by the Rourkela Steel Plant (operated by the state-owned Steel Authority of India), the demand for another mega steel plant in Odisha was strongly felt. This led Biju Patnaik, the then Chief Minister of Odisha to plan the Kalinganagar industrial complex, once 13000 acres of land was acquired in the Sukinda constituency of Jajpur district in 1992.



Today, the Government is stepping up the presence of industry as co-incidentally, the infrastructural boom in the global markets has generated high demands for steel. To strengthen the century old relationship between Odisha and Tata Steel, the Company signed the MoU for its most ambitious steel project in Odisha on November 17, 2004. As per this MoU, the Company will set up a six million ton green-field integrated Steel Plant at Kalinganagar in Jajpur District of Odisha. 



The other industrial projects in various stages of completion at the Kalinganagar Industrial Complex are M/s Nilachal Ispat Nigam Ltd., M/s Mid-East, M/s Jindal Stainless Steel Limited, M/s VISA Steel Ltd., M/s KJ Industries, M/s Maithon Alloys Ltd., M/s Rohit Ferro Tech, M/s Dinabandhu Steel, M/s Uttam Galva Ltd., etc.

Team Odisha presentations during their June-July visit to USA

HRD-n-EDUCATION (details at orissalinks.com), INDUSTRY and INFRASTRUCTURE, Odisha Culture, Odisha govt. action, Ports and waterways, Team Odisha Comments Off on Team Odisha presentations during their June-July visit to USA

Following are presentations given by the Odisha delegation that visited US during June-July 2010.

Brittania wants 10-12 acres for a 45 crores new factory

Bhubaneswar- Cuttack- Puri, Cuttack, Food processing, Khordha 8 Comments »

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

Britannia Industries Ltd, India’s leading biscuit company, expects to start work on its second unit in Orissa soon.

"We have applied to the Orissa government for 10-12 acres of land near the twin city of Cuttack and Bhubaneswar and expect to get a final nod on it within weeks", said Vinita Bali, Managing Director, Britannia Industries.

Bali, …, said the proposed unit will produce different varieties of biscuits mainly for the Orissa market.

The unit, to be built at cost of Rs 40 to 45 crore, will have an installed capacity to produce about 2,500 tonnes of biscuit per month.

It being a labour intensive industry, the unit will employ about 500 to 700 persons. This will be the second unit of the company in Orissa. It presently has a 1,000 tonnes per month capacity biscuit unit in Mayurbhanj, boardering West Bengal.

… The company, at present, has manufacturing facilities in Uttaranchal, Delhi, Chennai and Kolkata.

Should the Odisha government give them 10-12 acres of land in Bhubaneswar-Cuttack for an investment of only 45 acres and employment of 700 people, most of which will be perhaps unskilled workers? Also, why do they need to establish it in Bhubaneswar-Cuttack. Why not in a rural area where 700 unskilled jobs will be appreciated more and where land is less of a concern.

Professor Sumit Ganguly on the Vedanta decision by Ramesh

Aluminium, Anil Agarwal, Bauxite, ENVIRONMENT, EXPOSING ANTI-ODISHA-GROWTH SCHEMES, Kalahandi, Vedanta 6 Comments »

Following is from http://the-diplomat.com/indian-decade/2010/08/29/orissa’s-pyrrhic-victory/.

… Some commentators in the Indian press with a strong anti-corporate orientation, meanwhile, are also gleeful that the project has come to a halt.

Ostensibly, this delight stems from having stopped a greedy multinational corporation from ruthlessly exploiting the natural resources of a remote part of the country and the traditional homelands of some of India’s adivasi (original), tribal population.

Yet despite the delight of these disparate groups with the decision, a more sober and dispassionate analysis suggests that the ultimate losers may well be the hapless tribal population who are the inhabitants of this region.

Generations of governments, despite loud promises, have done woefully little to improve their lot. The region lacks adequate roads, has few public clinics, limited educational facilities and an appalling lack of employment opportunities. Consequently, the locals remain mired in harsh and abject poverty.

The mining investment might not have been a panacea for their many woes. However, it did offer the promise of new schools, better roads, the opening of hospitals and above all the prospects of better-paid work. With the seemingly sagacious decision, none of those possibilities will materialize despite the rather facile promise from a popular Congress member of parliament, Rahul Gandhi, that he would act as the ‘sipahi’ (guard) of their interests in New Delhi.

What is being portrayed as a great victory of environmentalism is sadly little more than a crass effort to win the votes of the tribal population in a desperately underdeveloped state. The Indian state that has long failed to protect and improve the plight of the country’s tribal population needs to do far better than what transpired this week. More to the point, romantic environmentalists and their cheerleaders in the press should think about how they are becoming unwittingly complicit in the Congress’ Party’s feckless quest for votes.

His short bio from the same page:

Ganguly is the Rabindranath Tagore Chair in Indian Cultures and Civilizations and a Professor of Political Science at Indiana University, Bloomington. Ganguly is the author, co-author, editor or co-editor of twenty books on South Asia and serves on the editorial boards of Asian Affairs, Asian Survey and Current History among others.

Varied coverage on Vedanta and Jairam Ramesh’s high-handedness

Aluminium, Anil Agarwal, Bauxite, CENTER & ODISHA, ENVIRONMENT, EXPOSING ANTI-ODISHA-GROWTH SCHEMES, Kalahandi, Vedanta Comments Off on Varied coverage on Vedanta and Jairam Ramesh’s high-handedness

Earlier the media thought that the underdogs were the locals and tribal and the valiant NGOs fighting for them against the big monster Vedanta. So all the stories (except direct publishing of Vedanta press releases which they had to do once in while to keep getting Vedanta’s ads) were from the angle of how mining in Niyamgiri would destroy the way of life of the tribals. How Vedanta did this mistake or that mistake which was magnified and circulated by the NGOs. No body outside of the government and Vedanta dared to defend the mining aspects as they were afraid of being labeled as bought outs, being bribed, or just monsters who do not care about poor people and tribals.

But now it seems Jairam Ramesh has behaved in such a high handed and partisan manner that slowly the media is discovering the other side of the story; which they mostly ignored earlier.

Here are some of the coverages.

1. From http://ibnlive.in.com/news/volteface-vedantas-opposer-turns-soft/129818-3.html.

In a shocking volte-face, the most vocal tribal voice against the Vedanta project in Niyamgiri hills of Orissa, is now its brand ambassador – Jitu Jakesika is now trying to convince tribals on the benefits of the mining project. Twenty-two-year-old Jitu Jakesika belonging to the Dongoria tribe of Orissa had come out in fierce opposition against the Vedanta mining project in 2008, when Rahul Gandhi had first visited Langigarh. He’s now crossed the line and is espousing the Vedanta cause.

"The NGOs and the political parties used to come to us and tell us that Vedanta would blast at Niyamgiri hills to extract bauxite and thus our livelihood and culture would be destroyed. I was convinced by their theory though I was educated. Later, I realised that this mining project will not have a detrimental effect on our livelihood and culture in any way. It would rather usher in development in our area." In 2009 Jitu was sponsored by Vedanta to study business administration in Bhubaneswar. His views have changed since. Jitu’s critics allege bribery and corruption. But he is unfazed.

"Our tribal people worship at the Niyamdanga hills not at the adjoining Niyamgiri hills as is being propagated by the NGOs. So where is the question of our worship place being destroyed coming from? We tribals worship mostly in our houses," insists Jitu.

Vedanta had also sponsored a visit of the tribals to NALCO’s bauxite mining site in Koraput, gaining some supporters for the mining project in the process. Now, Jitu has intentions of visiting Delhi soon to meet Rahul Gandhi and the prime minister and convey to them that all tribals in his community are not against the Vedanta project. However, whether Jitu’s contrarian voice would be heard or not isn’t clear yet.

We earlier mentioned Jitu in our article http://www.orissalinks.com/orissagrowth/archives/3762.

2. From a rediff article by Nilmadhab Mohanty.

 

First, the manner and time-line followed in the decision-making. The Orissa state government seems to have applied for final clearance in August 2009.

The Forest Advisory Committee (FAC) has been deliberating the proposal at least since November 2009. In addition to the information submitted by the State and the central government’s own agencies, it had the benefit of the recommendations made by a three-member expert group which submitted its report in February 2010.

FAC then asks for yet another committee under the Ministry of Tribal Affairs, which is the nodal agency in the central government for tribal rights. The environment minister, however, appoints his own committee (the Saxena Committee) in the last week of June 2010.

Then the pace quickens: The environment minister writes to the law ministry on July 19 to obtain the Attorney General’s opinion if the ministry of environment and forests (MoEF) apply its mind and decide in the light of the Supreme Court’s earlier decision giving forest clearance.

 

The AG replies promptly on the following day; Saxena submits report on August 16, FAC deliberates without much loss of time and submits recommendations on August 23, and the minister announces his decision with a 20-page reasoned order on August 24, 2010!

The must be a record in governmental working! The affected party, namely the Orissa government, is hardly given any chance to given an explanation to the MoEF.

In fact, the hapless Orissa officials seem to have met the minister on August 24 when he was in a tearing hurry to announce his decision!

 

The highhandedness I refer to is that fact that Ranesh did not give much of a chance to hear the Odisha government’s response to the Saxena committee report. He seems to have already made up his mind. So much so that Rahul Gandhi’s trip to Kalahandi was already announced on August 21st, while CM Naveen Patnaik met PM Manmohan Singh and Jairam ramesh on August  23rd and Jairam Ramesh met the Odisha government officials on August 24th. 

No one will believe that Rahul Gandhi made the decision to visit Kalahandi without knowing what Ramesh’s decision would be. Ramesh’s scant regard for what Odisha has to say on the issue shows his highhandedness. His informing Rahul Gandhi about the decision before even the report was submitted by FAC on August 23 shows that the government in Delhi is not a democratic government but a fiefdom of the Gandhi’s.

There are many more disturbing questions raised by the rediff article by Nilmadhab Mohanty.

3. The article by Saubhik Chakrabarti in Indian Express raises many other questions.

4. The blog entry at http://www.hindustantimes.com/7-questions-on-Vedanta-Niyamgiri-and-economic-development/Article1-593564.aspx

5. Tavleen Singh in Indian Express: http://www.indianexpress.com/news/politics-pollutes-the-environment/673939/0

6. Indian Express Editorial: http://www.indianexpress.com/news/whose-agitation/673470/0

7. B G Verghese in Business Standard: http://business.rediff.com/slide-show/2010/sep/06/slide-show-1-was-it-right-to-stop-vedanta.htm

http://www.business-standard.com/india/news/b-g-verghese-stop-vedanta-stop-india/406911/

See also his op-ed in Expressbuzz.com.

Saubhik Chakrabarti gives a nuanced picture of Lanjigarh in Indian Express

Aluminium, Anil Agarwal, Bauxite, CENTER & ODISHA, ENVIRONMENT, EXPOSING ANTI-ODISHA-GROWTH SCHEMES, Kalahandi, New Indian Express, Indian Express, Financial express, Vedanta 2 Comments »

Following is from his article in http://www.indianexpress.com/news/orissas-unobtainium/673845/0

…Niyamgiri, or Niyamgiri hill range—more than 100 hills; 250 square km approximate area—justifies the use of a few cliches. Lush. Verdant. Breathtakingly beautiful in clear, early morning light. The abundance of flora is easily evident (fauna, of course, is not easily spotted, but there are indisputable authoritative declarations on its abundance). Dense clusters of fruit-bearing trees on the slopes can pleasingly unnerve a typical city type. Niyamgiri mangoes are going for Rs 5 a kg or even less at small local markets. Medicinal plants that grow on the hill slopes, say locals, can cure severe wounds. A long trip to the indifferent care of the public heath centre is not required. So, yes, you can think ‘unspoilt’. Many members of the local tribal population—Dongria Kondh, who live on the upper slopes of Niyamgiri and the Kutia Khond, who live near the foothills—were bussed in for Rahul Gandhi’s rally on Thursday, and many of them were clearly happy that mining in Niyamgiri is now stalled.  …

There are plot twists. Seven twists, in fact.

1. A question on local tribal custom.

2. The nuanced answer to the question, what do tribal groups want?

3. How the private investor in Niyamgiri is a bad advertisement for private investment.

4. Where’s the ruling party in Niyamgiri politics?

5. Can we assume a tribal arcadia?

6. Could Niyamgiri have become a laboratory of intelligent mining?

7. Can Orissa afford the Niyamgiri decision?

First twist: That the tribes are protected groups, under Schedule V of the Constitution, that wildlife protection rules apply to much of the area, that the ecosystem is something special are all undisputed facts. That tribal groups have always associated their deity with the hilltop is also supposed to be undisputed. But if you ask around persistently, you don’t get a clear answer. Some locals, otherwise unimpressed with Vedanta’s development efforts, say the hilltop becoming ‘sacred’ is a recent change. Many others dispute this. And this lack of local consensus on what should be widely known local tribal tradition is important because bauxite in Niyamgiri resides on the hilltop—that’s where the mining was to happen before the Central environment ministry denied Orissa Mining Corporation a clearance. This part of the story is more complicated than the usual anti-mining narrative suggests.

Second twist: What are the tribal groups opposing? They are opposing mining on the hilltop. But are they opposing the building of social and physical infrastructure in an area that’s staggeringly underdeveloped even by Indian standards? The answer’s no, and that might seem obvious. But its implications are not obvious. No one denies that successive state governments, Congress or BJD, have been worse than negligent in terms of building social/physical infrastructure. Niyamgiri is in Kalahandi, which is part of the infamous KBK (Koraput-Bolangir-Kalahandi) group of districts: extreme underdevelopment is the KBK signature. KBK districts account for 72 per cent of Orissa’s below the poverty line population. Of the 82 very backward blocks in Orissa, 53 are in KBK. KBK literacy rate is an abysmal 43.3 per cent, while Orissa’s state-wise average is 63.08 per cent. These are all figures (source: 2002 Orissa BPL Census) that tell a dreadfully grim story. And everyone in the Niyamgiri battle, whichever side they are on, agrees.

Siddharth Nayak, leader of Green Kalahandi, a local activist group that counts among its supporters Vandana Shiva, Medha Patkar and Arundhati Roy, said lack of minimum and halfway reasonable quality infrastructure is a big problem. He also said Vedanta Aluminum Ltd (VAL) hasn’t developed as much infrastructure as promised. This is a complaint made by many locals, tribal or otherwise. But if there’s no Vedanta, or no mining, no trigger effect from private investment, who will develop infrastructure, build schools, hospitals, roads? To say that the state administration should do it seems a bit of a cruel joke given decades of history. And especially because local infrastructure is linked to local economic vitality.

There’s no convenient railhead for Kalahandi, a brutal reminder of the district’s lack of minimum economic heft. Apart from agriculture in tiny holdings and forest produce, the latter, consumed and sold locally, and therefore offering no multiplier effects, Kalahandi has little to offer, except a king’s ransom in minerals. Eco-tourism on hills like Niyamgiri is the local activists’ favourite solution to act as a development trigger. But will eco-tourism concentrating on the lush hill ranges bring in the kind of investment that large-scale industrial activity can? And minus the large-scale investment, can enough jobs and enough infrastructure be created? Locals loudly complain that Vedanta doesn’t employ enough of them, that its school—DAV Vedanta School, an impressively well-appointed facility—doesn’t enroll enough tribal/non-tribal children. Vedanta officials deny this. But the fact of these complaints says something: that there was and is a strong expectation, from tribal and non-tribal locals, that big private investment can have beneficial effects. If we assume Vedanta’s corporate social responsibility hasn’t been up to the mark, then the question, from locals’ point of view, is one of more locally engaged private investors, not solely of the absolute villainy of private investors. But the villainy is what the simple narrative of Niyamgiri highlights.

The more nuanced telling of this story comes from the likes of Raju Sahu who came from Bihar to Kalahandi 10 years ago and runs four tea/food stalls on the state highway that links Lanjigarh—where Niyamgiri and the Vedanta factory are situated—to Bhawanipatna, the district HQ. Sahu says his business has more than trebled since Vedanta started operating from here about four years ago. But he complains: what will happen if operations shut down, and why isn’t the state highway in a better condition; his business would be even better then. All along the road and right up to the site of Rahul Gandhi’s rally, tiny businesses run by locals talk of a quantum jump in sales and brood about it all ending. They, too, are locals, and the Niyamgiri story and the Kalahandi story can’t be delinked from what they represent: the possibility of local economy regeneration.

Third twist: Vedanta hasn’t made it easy for themselves or for the cause of private investment. This is apparent even if one sets aside questions about how Vedanta set up its bauxite refinery, how it increased the capacity and the sources of its current bauxite.

Vedanta officials offer you stacks of folders on CSR activities. But local complaints on Vedanta’s less-than-stellar efforts are universal. Lanjigarh or the wider area surrounding it doesn’t even look like a company town, as habitations surrounding big industrial projects often do. The bauxite to aluminum business gives very high returns. Those kind of margins sharpen the question of effective spending for local development.

Also, the company faces several allegations of what activists call its “reliance” on strong-arm methods. A recent case, much mentioned by activists and Congress leaders, is that of the police picking up Lado Sikaka, a Dongria Kondh, and later releasing him. Sikaka says he was brutally roughed up and was almost “kidnapped” because, as he alleges, he’s a prominent anti-mine activist. The local police say picking him up was an error. Vedanta says it doesn’t support any strong-arm methods. But perceptionally, the company seems to have lost this battle.

The state highway mentioned earlier is a good example of bad optics. Vedanta’s 16 tonne carriers, which weigh 33 tonnes when packed with aluminum oxide produced in the plant, trundle down this road every day, 30 trips a day on average. The road shows the toll of this traffic. Local administration officials admit the state highway, never top quality in the first place, is in increasing state of disrepair. They talk about charging more toll from the carriers and rebuilding the road. But, strangely, Vedanta hasn’t helped in making this road better. The company’s response to this highlights the local administration’s responsibility, while adding that it has built roads elsewhere. But this is literally the road to the project. It was entirely appropriate therefore to see, on this road, a shabbily painted Vedanta signboard, hanging askew, with a Rahul Gandhi poster pasted smack in the middle of the board. That pretty much tells you the story of Vedanta’s big PR problem in Lanjigarh.

Another aspect of the same problem is how Niyamgiri was planned to be mined. The Orissa Mining Corporation and Sterlite (Vedanta’s sister concern) formed a joint venture, the Southwest Orissa Bauxite Mining. Sterlite has 74 per cent shareholding. This JV was supposed to act for OMC in choosing and monitoring mining on the Niyamgiri hilltop. But given that the controversy on Niyamgiri mining was brewing for two years, was this arrangement—essentially Sterlite in charge of ensuring good mining practices for bauxite that’s needed by its sister concern Vedanta —the smartest? Vedanta officials say Sterlite’s experience makes it ideal for the purpose. But they don’t have a good answer to the question whether this is credible in a charged atmosphere. Knowledgeable local activists keep making this point, with some justice.

Fourth twist: The absence of enough competition in local politics. The Congress is front and square in the Niyamgiri agitation, delighted now by its ‘victory’. But where is the BJD, Orissa’s ruling party? The line between activists and the Congress is muddled enough for the local Congress MP, Bhakt Charan Das, to have been a past head of Green Kalahandi. But the BJD is so politically ineffective here that bandh calls on Wednesday and Thursday were comprehensively ignored. The BJD’s local weakness may seem surprising for a party that has won three state elections, and whose chief minister, Navin Patnaik, has made a determined effort to appear tribal-friendly. The explanation lies in the vagaries of alliance politics. When the BJD and the BJP became allies, Kalahandi was given to the BJP to build a base. The alliance broke up on the eve of the 2009 assembly elections. So, the BJD essentially had a late start in Kalahandi. That political weakness has resulted in giving the local Congress, which was always strong in Kalahandi, a headstart in political mobilisation on Niyamgiri. Had the BJD been stronger, had it been in a position to work among local tribal groups, the contest would have been more even. Local BJD officials admit this privately.

The Niyamgiri story is not just about activists and tribal groups, it’s also about the Congress getting an unusually clear political field. There are no credible local politicians to speak for the mining project. The sharp irony here is that Patnaik is also the forest minister, who has publicly led the campaign for tribal land rights, but the Niyamgiri mining proposal has been deemed dramatically violative of forest rights. There’s no local BJD counter-point to this.

Fifth twist: Tribal arcadia? Yes, Niyamgiri provides plenty of natural resources. Yes, the hill inhabitants don’t get affected by the droughts that are so common to Kalahandi. Yes, rank starvation is not a feature in Niyamgiri. But the tribal groups still operate in what is a subsistence economy, and they don’t have access to basic facilities in education or health. Tribal groups seems more aware of this than those romanticising the Niyamgiri way of life. Which is why local tribals complain about not getting jobs or education for their children. Which is also why Sitaram Raju, an 18-year-old security guard at the under-construction Vedanta co-funded mid-day meal cooking centre in Lanjigarh, has these stories about several inquiries from local tribal people on when the centre will start operating?

Our children will get eggs and good rice, local tribal people said when asked about the mid-day meal centre. There’s desperation for wanting something more than what they have in that wish. Raju, from Sambalpur in Orissa, earns Rs 4,200 a month. That’s a handsome salary in comparison to local average incomes. And Raju got the job because private security agencies have come in numbers since Vedanta started building sites. A local young tribal—he said he’s “eight class pass”—when asked whether he would like a job that pays what Raju gets, looked at his interlocutor as if the latter was an idiot. Of course, he said. But there are no jobs.

The hazards of romanticising tribal ways of life are colourfully exemplified by Kalahandi’s self-proclaimed “most important communist”. …

Sixth twist: Could Niyamgiri have become an ideal laboratory for good mining? Some Niyamgiri stats bear mention. There are around 8,500 tribal people in the 250 sq. km. hill area. That low population density makes industrial activity easier to handle in terms of fallout. The proposed mining area was four square km: a very small part of the hills. There’s seemingly irreconcilable debate about whether the bauxite-rich hilltop is green-friendly or not. The pro-mining view says trees don’t grow on bauxite-rich hilltops because the mineral doesn’t retain water. Post-mining, when the bauxite reserve is exhausted, the hilltop can, this view says, be made green-friendly. The example given is Nalco’s greening of the hilltop in the Koraput mine; Koraput is a neighbouring district. The anti-mining view says bauxite is porous and it therefore allows water to filter down and that keeps the hills lush. Establishing the real position objectively seems a lost cause in Niyamgiri. The talk is only about Vedanta’s violations and keeping mining away forever. Vedanta may well have violated legal norms, as the environment ministry says. And definitely, the Vedanta-OMC arrangement on mining Niyamgiri, as explained earlier, doesn’t pass muster in terms of a conflict of interest test. But sustained talk of huge ecological devastation, as the Saxena report for example talks about, has killed intelligent discussion on whether Niyamgiri could have been intelligently mined, under proper supervision. Also, bauxite mining, because the hilltop deposits are shallow, rarely needs blasting, the most disruptive of mining activities.

There’s something odd about the Central approach to ecological impact of the proposed Niyamgiri mining. Niyamgiri had received environmental clearance in October 2007. This okay comes after impact assessment studies under the Environment Protection Act. The Saxena report, which was submitted with a speed rare in government—formed in late June this year, the report was submitted on August 16—spends pages on ecological impact. But what does this mean? That the Centre was unaware since 2007, when the EPA clearance was given, that Niyamgiri mining would be environmentally harmful, and that the dangers were discovered only after a two-month study by the Saxena committee?

The seventh and the biggest twist: Can bauxite be mined in Kalahandhi, which has a huge reserve of the mineral? The Central environment ministry says the denial of mining rights is based on rules violation, in particular violation of forest rights under Forest Rights Act. This seems to imply that had Vedanta played by the book as per the ministry’s assessment, clearance would have come. But the Saxena report also puts emphasis on tribal groups’ livelihood traditions and on potential ecological damages. On the ground in Kalahandhi, it’s these two that are being highlighted. Local Congress leaders and activists talk of attempts at stealing away tribal land. If the Centre reckons that subsequent applications for mining hilltop bauxite can be measured only against legal benchmarks, it is probably making a mistake.

Kalahandi is a scheduled area, with heavy tribal presence. Tribal habitations are typically in the area’s hills. The hilltops have bauxite. The ‘victory’ in Niyamgiri has fired up activists and the Congress. Not all tribes who live in other bauxite-rich hills have the heavily protected legal status enjoyed by the Kondhs of Niyamgiri. But, as Nayak said, every mining application will now be met with movements about tribal rights. He reckons Niyamgiri has created a precedent that’s too strong to be ignored. This is good from the activists’ point of view, or for Orissa Congress’s political calculations, but it’s hardly good news for Kalahandi and Orissa.

This is the real big potential fallout of Niyamgiri: it can create more Niyamgiris. 

Following are some of my comments: 

  •  Earlier, we also made the point regarding how sacred the hill-top was. In India, both tribals as well as Hindus have many things that they pray. Often many people make temples to usurp government land.  So the lack of consensus regarding the hilltop being sacred and even people who are unimpressed with Vedanta suggesting that the "hilltop being sacred" is a recent change points finger at the activists being behind hyping up the sacred aspect of the hill top.
  • On Vedanta not having developed infrastructure: The various reports say that with importing bauxite from outside the company was not making profit, so based on short-term economics it did not spend enough in developing infrastructure. But that was short-sighted action from the company.
  • The author makes a nice point that the local and tribals do want jobs, schools etc.  and  were not opposed to development per se.
  • Vedanta’s trucks are directly responsible for the deterioration of those roads. They should have spent money on those roads and made them better.
  • BJD has a unique opportunity now to counter congress and shore up its base. It should immediately announce and start a state university in Kalahandi; it should take over the half-constructed medical college and make it a government medical college; and it should augment the agricultural college. Being in power in the state, it can do that. It can then go to the people and say: "See Congress is against development. But we are not going to let their anti-development stance hurt the people of Kalahandi. We will do our best to bring development to Kalhandi." (Hopefully Congress will then counter this with some kind of a central institution there.)

My final thought is why did not Saubhik Chakrabarti write such an article before. In the past the only views on Lanjigarh mining that would come out is that of the activists and the press releases by Vedanta. Both were one-sided. So the Indian media is partly responsible for the negative effects of Ramesh’s activism. If only they had given nuanced views like the above before Ramesh made the decision then Ramesh may have made a more nuanced decision.

Politics behind Lanjigarh becoming clearer?

Aluminium, Anil Agarwal, Bauxite, CENTER & ODISHA, ENVIRONMENT, Kalahandi, Mine related pollution, Vedanta 1 Comment »

1. MP of Kalahandi, Bhakta Das, who in recent years has been vociferous against mining by Vedanta once was desperate to have an alumina plant in Lanjigarh. Following is from a report in Hindu.

Today, he is known as a champion of tribal rights and a leader in the fight against Vedanta’s proposal to mine bauxite in Niyamgiri. But 14 years ago, Bhakta Charan Das, Congress MP from Kalahandi sang a different tune. “The Government of India and the Orissa government should take keen interest to set up at least a large alumina plant because we have got a heavy deposit of bauxite in Niyamgiri and Sijimalli of the Kalahandi district,” he had said during a November 1996 debate in the Lok Sabha on the drought situation in Orissa. “If there is an alumina plant, then a minimum of 40,000 people can sustain out of the different kinds of earnings from that.”

When asked about his statements on Thursday, Mr. Das initially insisted that he had only recommended mining in Sijimalli and not Niyamgiri. When faced with the Lok Sabha record, the MP, also the founder of the Green Kalahandi movement, admitted that he had learnt a lot since that day one-and-a-half decades ago.

“I had not visited Niyamgiri then. I did not know of the Dongria Kondh links to that place then. At that point, I did not know it was a densely forested area,” he said, speaking to The-Hindu over telephone immediately after the mass rally was held by Congress leader Rahul Gandhi in the Niyamgiri area.

“Of course, the Kalahandi district needs more industries, but it should not be development at the cost of the people, at the cost of the forests,” Mr. Das said, adding that the Vedanta project had failed to generate sufficient local jobs, or provide health and education facilities. “I will still be happy to support an industry that takes into account the views of the local people, that will ensure the future of all stakeholders, that follows all the laws…There can be other mines, but why don’t they go and find an abandoned mountain, instead of Niyamgiri?”

Note that the government of Odisha (a Congress government led by Janaki Patnaik) signed the first MOU with Vedanta for mining in Lanjigarh in 1997, exactly 13 years ago, a year after the above statement by Bhakta Das.

2. Bhakta Das as well as the Youth Congress Chief of Odisha, Pradeep Majhi (MP Nabarangpur) are not against mining for bauxite. They just don’t want it now in Lanjigarh. Following is from a report in Orissadiary.

Orissa Pradesh Youth Congress chief, Nabrangpur MP Pradeep Majhi on Thursday said Vedanta can look for alternative sites except Niyamgiri from where it can mine bauxite to feed its one- million- tonne alumina refinery at Lanjigarh in Kalahandi district.

He suggests alternative sites—Kuturmali, Bijimali and Sabarmali hills which are in the periphery of Niyamgiri and there are no habitation of tribals in this region. He said The Congress party is not against industrialization. There are many other hills where there are no tribals and that can be used by Vedanta which are only 8 kms from Niyamgiri. But it is clear that no mining would be allowed at Niyamgiri.

3. Not wanting in Lanjigarh and some other place is fine depending on how sacred that mountain is to the local adivasis. But did the activists hyped up the sacredness to stop the project? I have no idea. But the following excerpt from a report in Telegraph seems to suggest that way.

Regarding industrialisation and its effects on Niyamgiri, Jakesia said: “I realised that for bauxite excavation, only the surface level of the rock is used.

This is unlike iron ore and coal mining, where one has to go below the surface. Thus, the process is fairly smooth. You will be surprised to know that puja offered to Niyam Raja was never performed there. Now, after the spread of awareness, the puja is performed on top of the hill.”

4. In http://www.orissalinks.com/orissagrowth/archives/3944 we mentioned several disturbing questions raised by Nilmadhab Mohanty (a senior Fellow, Institute for Studies in Industrial Development, New Delhi) on how the government went about this. The following excerpt from an article in Economic Times raises additional disturbing questions.

On August 24, the Central government said that Vedanta Aluminium had not sought prior approval for expanding the refinery capacity to 6 million tonnes from 1 million tonnes. Another government decision that day, announced by the minister of state for environment and forests Jairam Ramesh, stopping plans to mine bauxite at Nyamgiri near Lanjigarh, attracted much more attention but the brake on the refinery expansion could have a longer term impact on the fortunes of Vedanta. The bauxite was to be supplied to the refinery.

The chief operating officer of the Anil Agarwal-controlled company, Mukesh Kumar, expressed his doubts on Thursday over the “intention” behind these announcements in view of an earlier notification.

The ministry of environment and forests had said on August 19 that for all projects which were increasing capacity and where terms of references—the guidelines and scope for any expansion—have been mentioned and where construction activities have been started, the terms of references may be suspended or withdrawn.

"Instances have come to the notice of this ministry where project proponents have undertaken construction activities without obtaining requisite environmental clearance…No activity relating to any project covered under this notification, including civil construction, can be undertaken at site without obtaining prior environmental clearance," the notification added.

The notification relates to environment impact assessment (EIA)— a crucial part of the project approval process under the Environment Protection Act. The EPA is the umbrella legislation that regulates the impact of all industrial and commercial activities on environment.

The Vedanta official said that no prior approval for expansion was needed according to the rules in place—the Environment Impact Assessment notification of 2006—before the changes announced on August 19.

"There is no threshold limit given in the EIA notification for such a project," Mr Kumar told ET. "Hence prior environment clearance, as per the notification for our proposed expansion, is not mandatory before undertaking any construction activities."

Mr Kumar also referred to a section in the 2006 notification which stipulates that approval to the terms of reference for any project has to be announced within 60 days from the date of submission. "If the decision is not conveyed within 60 days, then the terms of references suggested by the applicant, "shall be deemed as final terms for the EIA study."

Vedanta had submitted its proposal for expanding the capacity to the ministry of environment and forests for approval on October 3, 2007. The company didn’t get approval within 60 days, which is the mandatory period as per the notification.

Mr Ramesh did not respond to calls and text messages sent to his mobile.

We will add more things as they come out. 


Regardless of all of the above, my current view is that stopping Vedanta mining in Lanjigarh, although done in a very partisan and high handed way, was a high profile example to make the point that environment and forest rights need to be taken seriously, to send a message to the maoists that the UPA-2 government (mainly Congress) will protect tribals, and to send a message to the tribals that they can rely on the government.

While a government should treat everyone equally and follow the law and not make one-time examples, the motivation here makes some sense on the ground of greater good of the country that currently faces the maoist menace who reportedly use mining and miners in their recruiting plays.

As I finish writing this, I read an article in Indian Express, that points out many additional interesting issues.