Archive for the 'INDUSTRY and INFRASTRUCTURE' Category

Orissa getting no tax from Bhushan Steel operations In Kantabania, Dhenkanal: Samaja

Bhushan Steel Ltd., Dhenkanal, Samaja (in Odia), Steel, Taxes Comments Off on Orissa getting no tax from Bhushan Steel operations In Kantabania, Dhenkanal: Samaja

There are at least two Bhushan companies. This article is about Bhushan steel Ltd.The other company is Bhushan Power and Steel.

RSB Metaltech signs MOU with Orissa

Aluminium, Bauxite, Dhenkanal, INVESTMENTS and INVESTMENT PLANS, Rayagada, Rayagada- Therubali, Statesman, Telegraph, Thermal Comments Off on RSB Metaltech signs MOU with Orissa

Following is an excerpt from a report in the Statesman.

The state government today inked an MoU with RSB Metaltech for setting up of an integrated light metal aluminum complex. The papers were signed by state industries and mines secretary Dr Ashok Dalwai and RSB Metaltech MD Mr SK Behera

In the first phase, the proposed company, with an investment of around Rs 6,800 crore, will produce about 7 lakh tonnes per of alumina. In the second phase, nearly 1.75 lakh tonnes of aluminium is expected to be produced from the plant. The produced aluminium will be used for production of finer parts in motor vehicles, aerospace, railway and construction industry.

While the mining and refinery units of the project will come up a Rayagada, the smelter unit and power plant are proposed to be set up at Kamakshyanagar in Dhenkanal.

Chief minister Mr Naveen Patnaik said that the project will generate about 11,000 direct and the equal number of indirect jobs. "This project, along with its alumina refinery at Rayagada and Gopalpur port will form an industrial corridor in southern Orissa," Mr Patnaik said adding that the corridor will help fast development, alleviation of poverty and improvement of life of the local people in that region. He suggested that provisions should be made to provide technical education to local youths. "The rehabilitation, resettlement and environment aspect should be taken proper care of," he pointed out.

The Union minister has been requited to expedite and complete the "Therubali-Gunupur railway project to enhance the connectivity in that region," he informed.

I wonder about the progress of the earlier plan of establishing an auto component manufacturing plant near Cuttack by RSB Transmission. (See  http://www.orissalinks.com/orissagrowth/archives/421.)

TCS Software development center to be inaugurated on January 5

Bhubaneswar- Cuttack- Puri, Business Standard, Khordha, Tatas, TCS, WIPRO 1 Comment »

Following is an excerpt from a report in Business Standard.

… the proposed software development centre of IT major Tata Consultancy Services (TCS) will be inaugurated on January 5 next year. The first tower of TCS which will be inaugurated in the city’s Infocity campus will have a capacity to accommodate around 1,500 employees.

“… Wipro’s second campus in the city is also scheduled to be inaugurated within a month”, said Vishal Dev, director, IT department of the Orissa government at an International Conference on IT, held at the Xavier Institute of Management.

TCS is developing its software centre in the city on a 54-acre plot in the Infocity campus. While the first tower of TCS is scheduled to be inaugurated early next month, the company is expected to add two to three towers within three months.

Land requirement of various upcoming steel companies

Anil Agarwal, Arcelor Mittal, Business Standard, Jindal, Land acquisition, POSCO, Steel, Tatas 2 Comments »

Following is an excerpt from a report in Business Standard.

The combined area required by these units has now been assessed at 33,268.5 acres, 16.48 per cent less than the 37,750 acres envisaged in the memoranda of understanding (MoUs) between these companies and the state government.

The state-owned Industrial Promotion and Investment Corporation of Orissa (Ipicol) had appointed MN Dastur & Co as consultant to prepare a report on the land requirement of various industries after receiving complains about companies demanding more land than they needed for the projects.

Ipicol, based on the report, has reassessed the land needs of the projects. The mega units that have been affected include Posco India, Jindal Steel and Power, Mittal Steel (India), Uttam Galva Steels, Sterlite Iron and Steel, and Bhushan Steel.

On the other hand, there has been no reduction in the land requirement of four mega units — Essar Steel Orissa (2,500 acres), SSL Energy (2,000 acres), Tata Steel (3,500 acres) and Welspun Power and Steel (2,200 acres). Out of the total land requirement, these steel companies have already applied for allotment of 32,034.9 acres, sources say.

Posco India, a subsidiary of South Korean steel major Posco, had sought 6,000 acres in the MoU signed with the state government in 2005 for its proposed 12-million-tonne per annum project near Paradip in Jagatsinghpur district. Ipicol, based on the Dastur & Co report, has reassessed the land requirement at 5,525 acres. The company has so far applied for 5,151 acres. While the state government has allotted 516 acres of its land to Posco, the company has already invested Rs 175.5 crore.

Jindal Steel and Power Ltd, which is setting up a six-million-tonne per annum steel project at Kerajang, needed about 5,750 acres. This has been cut to 3,843.5 acres by Ipicol. The company has applied to the Orissa government for 4,027 acres and has been allotted 1,719 acres. This includes 687.93 acres of government land and 1,031.85 acres private land. It has invested about Rs 765.46 crore in the project so far.

The land requirement of ArcelorMittal, which is planning to set up a 12-million-tonne greenfield steel project at Patna tehsil in Keonjhar district, has been reassessed at 7,750 acres. The company had sought 8,000 acres in the MoU. It has applied for 7,770 acres and has invested about Rs 50 crore for the project.

Similarly, the land requirement of Uttam Galva Steels, which is setting up a three-million-tonne steel project at Bistapal, has been reduced by 250 acres. While the MoU provided for allotment of 2,400 acres, Ipicol has reassessed this at 2,150 acres. The company applied for 2,146 acres and has been allotted 27.81 acres so far. The company has invested about Rs 35 crore for the project.

The three-million-tonne steel project planned by Sterlite Iron and Steel at Palasponga will have to manage with 1,000 acres less land than what was provided in the MoU. The company’s land requirement has been re-assessed at 2,400 acres. The company had applied for 3,378 acres, though has not been allotted any land so far.

The estimate of land needed by Bhushan Steel for its six-million-tonne per annum steel project at Meramundali in Dhenkanal district has been reduced by 600 acres. Though the company was to be provided 2,000 acres according to the MoU, Ipicol has reassessed the requirement at 1,400 acres. Bhushan Steel had applied for 1,994 acres and has been allotted 1,620 acres. It has invested Rs 5,000 crore in the project.

L & T receives order of 1372 crores for three plants in Orissa

Aluminium, Angul, Anil Agarwal, Anugul- Talcher - Saranga- Nalconagar, Birlas, Kalahandi, L & T, Steel, Vedanta 1 Comment »

Following is  from a report in Economic Times.

MUMBAI: Larsen & Toubro shares edged higher Tuesday after it won orders worth Rs 1372 crore from aluminium and steel makers.

The orders were received from Vedanta Aluminium, a part of Vedanta group, Utkal Alumina International and Bhushan Steel, it said in a statement.

The Rs 516 crore order from Vedanta Aluminum was for setting up of a 3 million tonne per annum alumina refinery at its Lanjigarh plant in Orissa. Utkal Alumina’s order was worth Rs 455 crore in which the engineering and construction firm would set up a 1.5 MTPA green field alumina refinery at Doraduga in Orissa.

Furthermore, L&T has secured an order worth Rs 401 crore from Bhushan Steel for civil, structural, equipment, erecting and piping works at Angul in Orissa.

Factories will be required to hire 90% employees from Orissa: Samaja

INDUSTRY and INFRASTRUCTURE, Odisha govt. action 1 Comment »

Inflocity II plans

Genepact, Infosys, IT, IT, Back office, BPO, Khordha, Mindtree, WIPRO Comments Off on Inflocity II plans

Following are excerpts from a report in Business Standard.

The Orissa information technology department (IT) expects the construction work of the approach road for the proposed Infocity-II project to kick off by January next year. Infocity-II is being developed on an area of over 600 acres at Janla, on the outskirts of the city by January next year.

“The state government is committed to provide external infrastructure like approach road, electricity and power for the proposed Infocity-II project. This external infrastructure will be developed at an investment of about Rs 150 crore and a provision has already been made in the state government’s budget for this investment”, Pradipta K Mohapatra, the state IT secretary told Business Standard.

He said that the state IT department was now on the look-out for anchor tenants for the Infocity-II project and software major Wipro Technologies had evinced interest in taking possession of 100 acres of land at the site. Official sources, however said that the Orissa Industrial Infrastructure Development Corporation (IDCO) may delay the process of floating advertisements for the Infocity-II project in the wake of economic downturn.

“Due to the global financial meltdown, IT majors like MindTree and Genpact are likely to defer construction work of their proposed development centres in Orissa by at least three months. The state government is also unlikely to receive fresh investment proposals from the IT and ITes (information technology services) players in the remaining months of this fiscal”, sources added.

MindTree Consulting Limited, a global IT and R&D services company had announced to resume construction of its proposed software development centre, over an area of 30 acres at Infocity in Bhubaneswar by September this year.

The company, co-headquartered in Bangalore and Somerset in New Jersey (US), is investing around Rs 200 crore for the development centre. MindTree was planning to recruit about 1,000 software professionals for the centre and eventually ramp up its headcount to 5,000.

On the other hand, the proposed global delivery centre of Genpact, the BPO (business process outsourcing) arm of US-based General Electric was scheduled to be operational by the third or fourth quarter of 2009. The BPO firm had plans to hire around 500 professionals initially for this centre and later scale up its headcount to 3,000 in the long run.

… The software exports from the state stood at about Rs 850 crore in 2007-08 and the state IT department had set a target of software exports worth Rs 5,000 crore by the end of 2011-12.

…With a headcount of around 3,000 in its Bhubaneswar centre, Infosys has targeted software exports of around Rs 800 crore from the city.

While Infosys recruited 700 people from Orissa in 2007-08, Wipro Technologies added 400 to its workforce from the state in the same period.

HLCA clears more projects

Aluminium, Bhadrakh, Business Standard, Cuttack, Dhamara- Chandbali- Bhitarakanika, Dhenkanal, High Level Committee, Hydro, Solar and other renewable, Jajpur Rd- Vyasanagar- Duburi- Kalinganagar, Jharsugurha- Brajarajnagar- Belpahar, Keonjhar, NALCO, NTPC, Ore pelletisation, Puri, Sambalpur, Sambaplur- Burla- Bargarh- Chipilima, Steel, Thermal 1 Comment »

Following is from a report in Business standard:

The Orissa government today cleared projects worth Rs 1,27, 727 crore in steel, aluminium, power, downstream and ore beneficiation sectors.

The list includes 3 projects in the steel sector, 2 projects in the aluminium sector, 6 projects in the power sector, one downstream unit, and two beneficiation and pelletisation units.

… enhancement of the steel capacity of Jindal Stainless Limited (JSL) from 1.6 million tonne per annum (mtpa) to 3.2 mtpa at Kalinganagr Industrial Complex at an investment of Rs 16,266 crore and enhancement of capacity of Visa Steel in the same location from 0.35 mtpa to 1.5 mtpa at an investment of Rs 4995 crore were approved by HLCA.

The public sector aluminum major Nalco’s proposal to set up a 0.5 mtpa alumina smelter and 1260 mw power plant in two phases (840Mw + 420 Mw) at an investment of Rs 16,345.89 crore was also approved. Though the company preferred to set up the project at Brajarajnagar, the location might change. The company is seeking 275.30 hectares of land for the smelter and 575.7 hectares for the power plant.

Similarly, the proposal of the Navayuga Steels for setting up a 12 mtpa port based steel complex at Astaranga in Puri district at an investment of Rs 34,000 crore was cleared by the HLCA. The project will come up in 4 phases and the government will not commit any raw material linkage to it.

Though the company requires 4000 acres of land, the government will assess the land requirement as per the benchmarking report after the company submits the detailed project report (DPR), the minister added.

The public sector National Thermal Power Corporation (NTPC) was given the green signal to set up a 3200 Mw coal based mega power plant at an investment of Rs19,840 crore near the village Gajamara in Dhenkanal district. It requires about 3000 acres of land for the project and will source water from Mahanadi.

However, Jindal Stainless’ proposal to set up 1000 Mw Independent Power Producer (IPP) at an investment of Rs 4090 crore in the same location did not find favour with HLCA with the committee asking the company to change the site of the project.

Other projects which received the nod of HLCA are Rs 6800 crore investment proposal of RSB Metal-tech for setting up 1.4 mtpa alumina refinery, 0.35 mtpa aluminium smelter and 900 Mw CPP at an investment of Rs 6800 crore, Kalinga Energy’s 1000Mw thermal power project at an investment of Rs 4261 crore at Babuchakuli, Arati Steel’s 500Mw thermal power project at Ghantikhal in Cuttack district, Rs 4994 crore investment proposal of Chambal Infrastructures and Ventures Limited for setting up of 1200Mw thermal power plant at Siaria in Dhenkanal district.

Besides, Hyderabad based Lanco Solar’s 250 Mw fully integrated plant to manufacture crystalline silicon solar cells at an investment of Rs 2800 crore in Dhenkanal district, Bhushan Power and Steel Limited (BPSL)’s downstream and ancillary complex in Sambalpur district at an investment of Rs 1953.87 crore, JSW Steel’s proposal to set up 7 mtpa iron ore beneficiation plant and 5 mtpa pelletisation plant at Kamalang in Sundergarh district at an investment of Rs 1450 crore were through in today’s meeting.

Besides, the proposal of Welspun Orissa Steel to set up a 4.5 mtpa beneficiation plant at Nayagarh in Keonjhar district and 4.4 mtpa pellet plant at Dhamra in Bhadrakh district with an envisaged investment of Rs 1963 crore, the proposal of Astaranga Power Company to set up a 2460 Mw power plant at Astaranga at an estimated cost of Rs 11,200 crore were approved by the HLCA.

However, the decision on the 700 mw (Rs 1007crore) power plant proposal of Ind Bharat Energy, 1320 mw (Rs 5604 crore) power plant proposal of Sahara India Power Corporation and the 1100 Mw (Rs 4810 crore ) power plant proposal of Visaka Thermal were deferred.

Oxford book shop in Jayadev Vihar Bhubaneswar

Bhubaneswar- Cuttack- Puri, Book store, INDUSTRY and INFRASTRUCTURE, Khordha 1 Comment »

Following is an excerpt from a repot in expressbuzz.com.

Oxford Bookstore opened its first outlet in Bhubaneswar here on Friday. Chief Minister Naveen Patnaik unveiled the bookstore located at Pal Heights.

He signed books penned by his sister Gita Mehta and interacted with the children. Naveen also said he would return to browse the books at the store soon.The premium bookstore chain’s first outlet in State Capital is located over 1500 sqft and would share space with Cha Bar which offers select brews from all significant tea growing regions of the world.Priti Paul, Director Apeejay Surrendra Group of which Oxford is a retail arm said the store will offer a vast range of books for all ages and interests including a large selection from Orissa and Oriya writers. An entire section will be dedicated to books connected to Orissa and the best in India as well as international publishing. Among others, Law Minister Biswabhusan Harichandan was also present.

The Pal Heights location is 500 mts north of the Jayadev Vihar – NH 5 crossing and 500 mts from many other hotels (Mayfair Lagoon, Swosti plaza and Ginger.)

IMRS plans boutique hotel in Orissa

Hotels and resorts 1 Comment »

Following is an excerpt from a report in Business Standard.

IMRS Hospitality Private Limited will spend approximately Rs 100 crore as a part of its expansion strategy to consolidate its position in the eastern region.

The company will set up five ’boutique hotels’ in the eastern region, with 40 rooms, offering facilities equivalent to a four star hotel.

Arindam Chokroborty, director of IMRS said, "We are looking at coming up with boutique hotels with 40 rooms in the eastern region with similar facilities that match the four star hotels. We have already started acquiring land in Rajarhat."

The projects have been lined up for West Bengal, Jharkhand and Orissa and the approximate investment incurred will be around Rs 20- Rs 25 crore each, and is expected to be operational by the second quarter of 2009-10.

Orissa govt. should not violate its own policies in granting mining leases to Arcelor Mittal (or any one for that matter) in advance

Arcelor Mittal, Giving industries a bad name, Keonjhar, Odisha govt. action, State Bureaucrats (IAS, OAS, etc.) 1 Comment »

It is often mentioned that the Orissa government has a policy of not recommending mine prospective licenses to companies until they have invested certain percentage of their whole budget in ground. It seems both POSCO and Arcelor Mittal are pushing the Orissa government to overlook this policy. Orissa government should not do that. In particular, after reading the following, from expressbuzz.com I have a bad feeling towards Arcelor Mittal.  

BHUBANESWAR: In a bid to put pressure on the State Government for mines, Arcelor-Mittal, the largest steel maker of the world, Monday said the company will submit a detailed project report (DPR) for 12 million tonnes greenfield steel project in Keonjhar district only after it gets recommendation for prospecting licence.

‘We will submit the DPR if the Government recommends our name for mines,’ chief executive officer of the company’s greenfield projects Sanak Mishra told mediapersons after meeting Chief Minister Naveen Patnaik. Official sources, however, said the company is yet to fulfil the procedural prerequisites for getting mines for the steel project.

A two-member delgation of the company comprising Mishra and Vijay Nagar CEO (India) Vijay Bhatnagar was explained the procedure to be followed before requesting for mines.

… Bhatnagar said raising finance for new projects has become difficult in view of the meltdown. On land acquisition, he said it depends on the cooperation of the people. Gram Sabha (village committee meeting) has been completed in three out of 15 revenue villages. A meeting with the people of the remaining villages will be held soon.

Sources said the company is facing opposition from the villagers who want land price to be decided before convening the gram sabha. The price quoted by the affected villagers is reportedly not acceptable to the company.

As per the MoU, the company requires 7,750 acres of land for the project. About 1,400 acres of the proposed site are forest land which requires conversion. Construction work for the project will start as and when a substantial protion of land is acquired, Bhatnagar said.

Dhamara shipyard promoters meet CM

Bhadrakh, Bhubaneswar- Cuttack- Puri, Dhamara- Chandbali- Bhitarakanika, IT, Khordha, Shipyard 1 Comment »

Following is from a report in Pioneer.

The State is all set to have a shipbuilding factory at Charidiha near Dhamara in Bhadrak. It will be the first such private sector venture in eastern India.

The Apeejay Surrendra Group and Bharati Shipyard Limited would set up the ultra-modern ship-manufacturing factory jointly with an investment of Rs 2,200 crore. In the first phase, Rs 900 crore will be invested in the project.

Chairman and Managing Director of Surrendra Group Karan Paul and Managing Director of Bharati Shipyard Limited Bijaya Kumar on Friday called on Chief Minister Naveen Patnaik at the State Secretariat and discussed about the implementation of the project. Discussions were mainly held on the land acquisition process and other necessary clearance needed for the project. As per the provision, the work for the shipyard project will commence from January 2009 and would be completed by 2011.

The factory will have both ship-manufacturing as well as repairing facilities. The project would create job opportunity for 41,000 people directly and indirectly. 7,000 people would directly avail job opportunities in the shipbuilding factory. The State Government would get revenue to the tune of Rs 20 crore per annum from the project.

The oil rig factory would come up with the help of Oceanic Shipyard Limited, a joint venture of both Apeejay Surrendra Group and Bharati Shipyard Limited. It would be completed in three phases. The growth taking place in the steel sector in State would be of great helping for the shipbuilding factory, Government officials said.

In the first phase, 75,000 tonne of steel will be used for establishing the ship making factory. In the second phase, the project will require 2,30,000 tonne of steel, and 4,50,000 tonne in the third phase.

The company is planning to set up an industrial training centre at Dhamara area to train its prospective employees. The Apeejay Surrendra Group has also expressed its willingness to set up a research and design centre and a Knowledge Park at Bhubaneswar.

Sttel plants may trigger SME/MSE possibilities in Orissa

Jajpur, MSE - medium and small enterprises, Steel, Tatas Comments Off on Sttel plants may trigger SME/MSE possibilities in Orissa

Following is excerpted from a report in Business Standard.

With Orissa witnessing a rush of investment proposals in the iron and steel sector, the domestic and overseas steel majors are exploring the possibilities of developing small and medium enterprises (SMEs) around the large units proposed by them.

Tata Steel is developing a six-million tonne greenfield steel project at Kalinga Nagar, the emerging steel hub of the country. The firm has identified business opportunities worth Rs 12,000 crore in the ancillary and downstream units.

“The opportunities for ancillary and downstream units exist in the areas of operations and maintenance, core specialised services, support specialised services, processing and township management, to name a few. There can be different working models for development of local SMEs as ancillaries and downstream units. One such model includes Tata Steel and other steel majors working together with their ancillary partners in Orissa,” said K Shankar Marar, assistant general manager, (steel technology, at Tata Steel’s Kalinga Nagar project.

…  Another steel major, JSL, (formerly Jindal Stainless Limited), is keen on developing an industrial park based on downstream stainless steel industries, spread over an area of 300 acres as a part of its SEZ (special economic zone) in Orissa’s Jajpur district.

The SEZ is being developed at an investment of around Rs 700 crore. JSL has engaged US-based consultant CB Richard Ellis for developing a business plan for the project wherein opportunities for downstream industries will be explored.

The SEZ is set to provide direct employment to 3,800 workers besides generating indirect employment for 1,200 others.

Posco which has announced an investment of about Rs 52,000 crore for a 12 million tonne steel plant near Paradeep is also committed to development of ancillary and downstream units and the steel giant has engaged IIT-Kharagpur for a study on the opportunities that exist in this area.

According to a study conducted by IIT-Kharagpur for Posco India, opportunities for SME entrepreneurs exist in the areas of structural steel, ready mixed concrete, refractory, steel and concrete piles, pipes, propeller shafts and furnace building to name a few.

According to the study, opportunities also exist in other operational areas like steel probes, mould flux, thermos materials, manufacture and fabrication of structures, conveyor belts and electrical equipment repairs.

The study adds that business opportunities worth Rs 320 crore exist in the area of refractory, Rs 44 crore for cement, Rs 2.5 crore in hydraulic hoses and Rs 4 crore in wire rods. The first phase of Posco India’s project would generate 35,728 labour intensive jobs and another 30,420 technology intensive jobs.

… Aarti Steel has already started its efforts for developing SMEs as ancillaries for its steel plant in the state.

“We have sourced items and spare parts worth Rs 37 crore from 47 local partners till March 2008. Aarti Steel plans to develop two forging units adjacent to its steel plant for the benefit of the local entrepreneurs and we have approached IDCO to provide land for these units”, said a senior official of Aarti Steel.

On its part, the Orissa government plans to incorporate a clause at the MoU (memorandum of understanding) level with the private steel players to ensure that the mother industries will make necessary efforts for development of ancillary and downstream units.

The efforts made by the steel units to develop the ancillary units will be monitored by officials like district collectors and revenue district commissioners.

Steelguru.com gives some specifics of the SME/MSE impact with respect to Tata Steel’s Kalinganagar plant.

BS reported that the 6million tonne per annum greenfield steel project proposed by TATA Steel in Kalinganagar will require maintenance support services worth INR 1,200 crore when fully commissioned. These services will be outsourced by the company and are expected to create huge opportunities for the small and medium enterprises in Orissa.

The services to be outsourced include warehousing, machine shop, electrical repairing shop, fabrication shops, electrodes and lubricant suppliers, waste management, mechanized material handling and hospitality among others. Since the maintenance cost is about 4% of the total investment in steel industry, this is expected to create huge opportunities for the small and medium enterprises.

Mr B K Singh VP Orissa project of TATA Steel said that "We will invest about INR 30,000 crore in the Kalinganagar project in phases and will require maintenance support services worth INR 1,200 crore.”

He added that the group will work towards developing the local entrepreneurs and will provide assistance to anyone who wants to be a partner in TATA Steel’s business. He added that TATA Steel will give the first right of refusal to local industries in the maintenance support services.

Vedanta’s 300 crore township project near Jharsuguda to be comparable to RIL’s at Jamnagar

Aluminium, Business Standard, Industrial Township, Jharsugurha, Jharsugurha- Brajarajnagar- Belpahar, Vedanta 8 Comments »

Following is from a report in Business Standard.

In the midst of implementing a $4 billion aluminium project in Orissa, NRI Anil Agarwal-led Vedanta group, has started a Rs 300-crore township project with the support of a Chinese firm to accommodate its over a 1,000 engineers and technical workforce.

Claiming that the project would be comparable if not better than what Mukesh Ambani-led RIL developed at Jamnagar in Gujarat, group company Vedanta Aluminium is importing services of China’s leading architect firm ECADI at a time when reality majors are reeling under a slump.

"We at Vedanta feel it is our duty not only to provide a conducive working atmosphere, but also best living comforts," company’s Director and CEO M Siddiqi said, adding, the township project would be completed by end of next year.

The township project, a concept popularised by PSUs in India, is crucial for the overall aluminium unit, first stage of which has already been commissioned and the second stage is targeted for completion next year, to attract and retain talent in the backward area of Jharsuguda in Orissa.

The Vedanta project envisages providing sophisticated and urban living accommodations and amenities to over 1,400 employees, who are already stationed at Jharsuguda aluminium plant.

The metals and mining major plans to pump in a whopping $4 billion to ramp up the capacity of its aluminium smelter to 1.8 million tonne by 2010.

At present, its operational capacity is 2,50,000 tonne, which would go up to 5,00,000 tonne by March 2009.

For meeting its power requirement, the company has set up a 675 MW power plant, the capacity of which will go up to 1,215 MW post-commissioning of the smelter’s first phase expansion.

Update on IOC’s Paradip project

IOC, Jagatsinghpur, Paradip - Jatadhari - Kujanga, Refinery Comments Off on Update on IOC’s Paradip project

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

Thinning refining margin and a global crisis notwithstanding, Indian Oil will stick to its plans to set up the proposed 15-million-tonnes Paradip refinery. The company is optimistic about completing the project at a cost lower than the estimated Rs 30,000 crore.

“The sharp meltdown in commodity prices as well as the depression should bring down the project cost net of a devalued rupee. Thankfully enough, we are rightly poised to grab the opportunity,” a source said.

IOC is currently in the process of awarding the PMC (project management contractor) contract. “We have started receiving quotes lower than our expectation. The trend may only get stronger six to nine months later when the actual project tendering will begin,” a source said.

“This project was planned on a long-term perspective and I see no reason to rework on it,” the IOC Chairman, Sarthak Behuria, told Business Line. He, however, did not clarify whether the project would achieve financial closure by next month as was scheduled previously.

IOC has finalised the loan and equity components for the project. Initial agreement was reached with the identified lending agencies on cost of borrowings. The loan agreements are slated to be firmed up in November.

Latest news on Oceanic shipyard near Dhamara

Bhadrakh, Dhamara- Chandbali- Bhitarakanika, Shipyard Comments Off on Latest news on Oceanic shipyard near Dhamara

Following is from a report in Steelguru.com.

BS reported that Oceanic Shipyard Limited, a 50:50 JV company formed by the Kolkata based Apeejay Shipping Limited and Mumbai based Bharti Shipyard Limited, expects to commission its ship building yard and oil rig manufacturing unit in Orissa by early 2011.

As per report, OSL is investing INR 3,100 crore in the two projects to be developed in three phases over a period of five years and INR 2,000 crore will be invested in the first phase. The company has selected two sites for these two projects which will be developed simultaneously and had sought around 1,000 acres of land for these projects from the Orissa government.

While construction of a large shipyard has been planned for Chardia in Bhadrak district, the manufacturing and repair facility for oil rigs, off shore structures and support vessels would be set up at another site, north of the upcoming Dhamra port, close to the shipyard site. The project site for the shipyard has received administrative approval as well as clearances from the State Level Single Window Clearance Authority and the High Level Clearance Authority. The site selected for the manufacturing and repair of oil rigs and support vessels has also been cleared by SLSWCA.

Mr Sourav Das Patnaik CEO of OSL said that “The land acquisition process for both these sites has been initiated by the Orissa government and the company expects the process to be completed by November this year. While the site selected for the ship building yard is mostly private land, the site for oil rig manufacturing unit is essentially government land and is expected to be handed over to the company shortly.”

The shipyard project will have a final steel throughput of 350,000 tonnes of steel per year once it is fully operational after the end of five years. In the first phase, ships up to a capacity of 75,000 dead weight tonnage have been planned which will be scaled up to 150,000 DWT in the second phase and finally reach 300,000 DWT in the third phase.

Bharat Biotech of Hyderabad selected to develop the Biotech-Pharma-IT Park in Bhubaneswar under PPP

Bhubaneswar- Cuttack- Puri, BioTech, Pharma, IDCO, Investment Regions, IT, IT, Back office, BPO, Khordha, Odisha govt. action, Others, PPP 1 Comment »

Following is from a report in livemint.

… Bharat Biotech International Ltd, a producer of vaccines and biotherapeutics announced that the Orissa government has selected the company as the developer for its ‘Biotech-Pharma-IT Park’ project under public-private-partnership (PPP) mode.

The proposed industrial park is coming up on a 54.86 acre land located at Mouza-Andharua in Bhubaneswar.
BBIL will promote a Special Purpose Vehicle (SPV) to undertake the integrated industrial park. The project is estimated to cost Rs100 crore and is slated to be complete in eight years, a press release issued here stated.

“Our task is to focus on rapid development of this park by developing core infrastructure and technology to enable establishment of new companies whereby new local entrepreneurs in the biotechnology field will be created,” BBIL Chairman and Managing Director Krishna Ella said in the release.

About 10 acre land, within the park, is earmarked for development of biotechnology incubation centre, which will be funded by Department of Biotechnology, Government of India, for the equipment or instrumentation.

A formal lease-cum-development agreement will be signed between the SPV and Orissa Industrial Infrastructure Development Corporation (IDCO).

The Orissa government and IDCO, in principle, have agreed to provide all the external infrastructure facilities like power supply, water supply among others, the release added.

Swosti Hotel group’s plan for Puri and Chilika

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

Swosti Group is redesigning two of its upcoming resorts according to chartered tourist requirements, since both properties were initially designed for individual and MICE segments. Puri’s Swosti Chandan Spa Resort and the company’s upcoming resort at Chilka, Orissa will undergo a number of redesigning and renovation processes as they target chartered segments (in large numbers), instead of regular tourists.

About this sudden change in plans, S Patnaik, General Manager, Swosti Group, told Hospitalitybiz, “We have experienced a sudden influx of MICE travellers in Bhubaneswar; this has resulted in many hospitality giants commissioning projects in the state capital. Similarly, other places in the state, especially Puri and Chilka, will be ideal to host chartered segments. Moreover, the segment’s favourite Indian destinations like Goa and Kerala are exceeding their carrying capacity; therefore, chartered operators are now looking for other options.”

The number of chartered flights to Puri is increasing from 180 to 250. Hence, Swosti Group is already in talks with leading chartered tour operators in India, who have exhibited an interest in the suggested places and upcoming properties. “Our Puri property was earlier designed with 70 rooms, but the inventory has been hiked to 100 rooms in favour of hosting chartered groups. The Chilka property, which has not been named as yet, will offer 50 cottages to start with, while it will be somewhat experimental with chartered tourists. The Chilka property will upgrade rapidly if it did well with the mentioned segment,” informed Patnaik. Slated to start operations in October 2008, both properties will take another few months to start. “The season for this segment (to visit India) is from October – March 2008,” added Patnaik. He added that even though the company will lose out on most of the season, it wishes to atleast begin catering to some chartered tourists.

On the other changes in terms of architect and design, Patnaik said that both properties will highlight their swimming pool as it is the biggest attraction for the chartered segment. The resorts will be equipped with bigger lawns and additional private areas as the segment does not appreciate external disturbance from other guests. “We are working on the properties’ sloping structures and the proximity of the pools and beaches from the resorts,” informed Patnaik.

…  We are inclining our properties towards chartered tourists as we will be able to provide them with the peace and serenity that they seek.” Swosti Group is also interested in presenting Buddhist tourism to this segment, in a new light.

Thirteen projects cleared by Single Window Committee

Bhadrakh, Cement, Hydro, Solar and other renewable, Jharsugurha, Keonjhar, Ore pelletisation, POWER: generation, distribution, and management, Puri, Sambalpur, Single Window Clearance (SLSWCA), Steel, Sundergarh, Thermal Comments Off on Thirteen projects cleared by Single Window Committee

Following is an excerpt from a report in Financial Express.

Orissa government’s Single Window Committee on Thursday cleared 13 industrial projects involving a total investment of Rs 27,193 crore. It includes three power projects, one steel, two cement, five iron ore beneficiation and pelletisation, on photo cell and one brewery projects.

… The big-ticket projects recommended to HLCC are Visakha Thermal Power Plant, Hind Bharat Energy, Lanco Solar, JSW Steel, Bhusan Power & Steel Ltd, Astarang Power Company Ltd and Welspun Steel Ltd.

While Astarang Power Company Ltd is planning to set up a 2640 mw plant in Puri district with an investment of Rs 11,200 crore, Visakha is proposing to set up an 1100 mw plant in Bhadrak district entailing an investment of Rs 4800 crore. The Hind Bharat Energy is proposing to enhance the capacity of its power project at Jharsuguda to 700 mw from 250 mw investing Rs 3150 crore. Bhusan Power & Steel, on the other hand, is setting up steel facilities for cold rolling steel, wire, rod, galvanised steel besides cement at Sambalpur, with an investment of Rs 2000 crore.

Welspun has plans to set up a 4.5m tonne per annum (mtpa) iron ore beneficiation and pelletisation plant in Bhadrak district with an investment of Rs 1900 crore. Simultaneously, JSWA is proposing to set up a 7 mtpa iron ore beneficiation plants and a 5 mtpa pelletisation plant in Sundergarh district investing Rs 1450 crore.

Among the projects cleared by the panel, Bhusan Steel Ltd is going to put up facilities for 4 mtpa iron ore beneficiation and pelletisation in Keonjhar district with an investment of Rs 850 crore.

 

Integrated Titanium Complex in Chhatrapur

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Following is an excerpt from a news report in Business Standard.

The Orissa government today signed a memorandum of understanding (MoU) with the Titanium Products Private Limited (TPPL), an Indo-Russian joint venture, for setting up of a Rs 2000 crore integrated titanium complex and sector specific special economic zone (SEZ) at Chhatrapur in Ganjam district.

SM Shroff , chairman of TPPL and the state industry secretary, A P Padhi signed the documents in the presence of chief minister, Naveen Patnaik in the state secretariat.

The company will invest about Rs 2000 crore in two phases. While the first phase will cost about Rs 1200 crore, another Rs 800 crore will be invested in the second phase. The first phase will be completed within a period of 24 months and is likely to be commissioned by October 2010. It will produce 1,08,000 tonnes of titanium slag, 68,000 tonnes of high purity pig iron, 40,000 tonnes of di-oxide pigment and 10,000 tonnes of titanium sponge.

TPPL has already entered into an agreement with the Indian Rare Earth Limited (IREL) for the supply of the raw material Ilminite. The company will require about 2 lakh tonnes of Ilminite annually for its project. India will be the fourth country in the world to have smelting technology required for production of titanium. The products will have applications in the field of aircraft engine, power plants, chemical plants, automobile industry as titanium is light and corrosion resistant.

TPPL will develop a sector specific special economic zone (SEZ) at its plant site for which it has received the in-principle approval from the Centre. However, it will require additional land beyond 250 acres acquired for the titanium complex.

The Orissa government has agreed to supply 65 Mw of power and 3 million gallon per day water for the project.

Speaking on the occasion chief minister Naveen Patnaik  … He said, the project is the anchor industry for a sector specific SEZ for establishment of downstream industries in sectors like high quality paint manufacturing, automotive casting, ductile iron casting, sillicon and zircon based products.

Patnaik said, the upcoming port at Gopalpur and the integrated titanium complex are the foundations for an industrial corridor in southern Orissa. These will further be integrated with the aluminium hinterland in Kalahandi, Koraput anfd Raygada. For the purpose, he has requested the railway ministry to take up the Therubali-Gunupur railway connectivity at the earliest.

Stating that establishment of a quality vocational educational institution offering the most modern trades relevant for the industry will be an important initiative in the skill upgradation of the local youth, Patnaik said, TPPL should explore such possibility. Besides, it should develop partnership with the local technical institutions.

Food park proposed in Malipada near Bhubaneswar

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Following is an excerpt from a report in Business Standard.

The Infrastructure Leasing and Financial Services (IL&FS) will prepare a project report for setting up of a mega food park at Malipada near Khurda, about 30 km from Bhubaneswar. It will study the feasibility, plan for infrastructure within the park, formulate promotional and marketing strategies among others. …

The latest initiative of the state government assumes importance as the Union government is encouraging establishment of food processing parks and has already announced a grant of Rs 1500 crore for 30 mega food processing parks in the country by the end of 2008.

Though none of the proposed mega food parks in the country has been notified yet, the state government will send a proposal to the Union ministry on setting up of a food processing in Orissa, said the sources. In case the Union government does not approve the state’s proposal, the state government intends to go on its own to set up a mega food park at Malipada, sources added.

The state government has already identified 80 acres of land at Malipada for this purpose. It will be handed over to the state owned Industrial Infrastructure Development Corporation (Idcol) by the district collector of Khurda and the process will be completed within 45 days.

The Union minister for food processing will be invited by the state government to visit the identified location towards the end of November. Besides, steps will be taken to develop a chain of cold storage between Cuttack and Bhubaneswar.

This was decided at a review meeting on the food processing industries in Orissa chaired by the Development Commissioner (DC) R N Bohidar recently.

As per the Government of India (GoI) scheme, the mega food park need to be built on a minimum area of 100 acres and maximum area of 100 hectares and the grant can be availed in two installments.

Khurda will be a preferred location as it will be closer to the bio-technology park being set up at Andharua near Bhubaneswar which will add synergy to the project.

Sources said, the plans for the development of terminal market or distribution centres at key locations like Choudwar, Berhampur and Sambalpur along with the supply chain of horticulture products in the catchment areas are being worked out by the department of horticulture.

That apart, multi-product cold chain network and the Inland Container Depos (ICDs) at Kalinganagar and Jharsuguda by CONCOR and similar facilities proposed at other places like Rourkela, Bhadrakh and Angul are likely to give a fillip to the sector.

In view of the potential in the food and the agro-processing sector, some sub-sectors have been identified by the state government for development. This includes rice, cashew, spices, mango, marine and fishery, diary and maize.

… According to the official figures, there were 92,417 micro and small enterprises (MSEs) in the state by the end of 2006-07 with an investment of about Rs 2825.16 crore. Out of it, 21,298 units were in the food and allied sector with an investment of Rs 803.78 crore. While the MSE sector accounted for about 5,56,908 employment, out of it the food processing sector engaged 1,10,329 persons.

 

Progress on Jindal Steel and power projects

Angul, Anugul- Talcher - Saranga- Nalconagar, Coal, Iron Ore, Jindal, Keonjhar, Pragativadi, Steel, Thermal 3 Comments »

Following is an excerpt from a report in Pragativadi.

Jindal Steel and Power Ltd is optimistic about commissioning the first phase of the proposed six MTPA steel mill in Orissa’s Angul district by October 2010.

… Briefing newsmen after the meeting, Jindal said that the work for the first phase of the project was progressing well.

The company had already spent Rs 4,000 crore so far for it and has placed an order for equipment for the purpose.

Of its total project cost of Rs 13,135 crore, JSPL had also spent a lot on land, construction, equipment and other activities, he said.

Jindal said JSPL has a small iron ore mine at Tensa in Keonjhar district and is hopeful of getting raw material linkage to its Angul project. 

We have been allotted coal block for the requirement of our captive power plant and the steel plant, he added.

He said that the company apprised the chief minister about the progress and made a presentation before him, while seeking the state government’s help in availing new raw material linkage early.

The JSPL which signed an MoU with the state government for setting up a beneficiation plant at Deojhar in Keonjhar district and the Angul steel plant on November 11, 2005, had progressed well besides tackling local problems, he said.

Orissa in Transition: From Fiscal Turnaround to Rapid and Inclusive Growth (Forthcoming World Bank Study)

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The following is from http://go.worldbank.org/F6WBERON80. See  also this Telegraph report.

Orissa in Transition

From Fiscal Turnaround to Rapid and Inclusive Growth 

Forthcoming World Bank Study

 

Overview: Orissa has transformed from a seriously lagging state to a state on the move

 

From being the poorest state of India in the mid 1990s, Orissa has become a state on the move.  The state’s economy has shifted gear and is on a higher growth trajectory.  Gross state domestic product (GSDP) has grown at 8.5 percent on average during the Tenth Plan period (2002-07), compared to 5.5 percent during the previous plan (1997-2002) and even slower in the past. 

 

Public investments in infrastructure have begun to rise, and private industrial investment is booming. The finances of the state have improved remarkably, creating fiscal space for expanding public investments. 

 

Private investment is booming: Indian and foreign mega investments in the steel and power sectors and aluminum and chrome products are dominating the private investment boom. Industry has grown at 20 percent annually in 2002-07, compared to only 6 percent in 1997-2002.  This is fuelled, in part, by the rise in world metal prices. Since 2004, Orissa has ranked as the country’s premier investment destination, according to the Center for Monitoring the Indian Economy (CMIE).

 

Private investments under implementation in Orissa now total about US$125 billion – which is about seven times the state’s annual gross domestic product (GSDP).  Many of these investments are at an advanced stage and expected to start production before 2012/13. This makes it likely that Orissa will enjoy high double digit growth, faster than the rest of India, for several years to come.

 

Early signs of economic diversification: There are also some, albeit early signs of economic diversification. In the services sector for instance, Indian IT companies are entering Orissa as traditionally favored destinations become increasingly saturated. The services sector is now growing at a rapid clip, almost touching 10 percent. Even agriculture, traditionally beset by drought and floods, grew at 3 percent per year during 2002-07, which is better than the rest of India.

 

As a result, Orissa’s per-capita income, which progressively fell behind the rest of the country during the past five decades, has begun to catch up. Inequalities within Orissa have also narrowed.   The latest National Sample Survey data show that rural families in the southern region of the state – one of the poorest parts of the country without the mineral deposits of the north – are now spending up to 25 percent more on basic necessities like food, clothing, and schooling for their children, compared to just five years ago.  Although average spending in rural Orissa is still low, it is moving up more rapidly than ever before.

 

A great deal still remains to be done

 

Second poorest state in the country: Despite recent progress, however, Orissa is still the second poorest state in the country with one of the lowest levels of urbanization. Over 45 percent of its people live in poverty with the scheduled tribes (STs) – who make up a sizeable 22 percent of the state’s population – lagging far behind the rest of the population. Most STs live in tiny villages or remote habitations in the hills where their geographical isolation underlies much of their poverty. Rural electrification is among the lowest in the country; some 18,000 villages and 5 million households have yet to get electricity. Learning levels in schools are low, and the burden of ill health too high.

 

Capacity constraints in infrastructure: Capacity constraints in rail are increasing congestion on roads, and limited port capacity is diverting cargo from Paradip in Orissa to Haldia in West Bengal, and Vishakhapatnam in Andhra Pradesh. The state has yet to capitalize on its large coastline facing South East Asia.

 

Undoubtedly, much remains to be done. Given the state’s recent growth, the time is now ripe to consolidate the gains of the past and devote public resources to building infrastructure, and reducing the gaps between the people – between rural and urban, between the interior and the coast, and between the scheduled tribes and the rest of the population.



Policies will need to unleash the full potential of agriculture, fisheries and forestry on which an overwhelming 85 percent of the state’s people depend. Education and health will need urgent attention if the people are to benefit from the growing opportunities provided by the new economy. Roads, railways and ports will need major upgrades if the benefits of growth are to be spread more equitably and the state’s natural resources effectively utilized. And, for all this to happen, the accountability of the government in the delivery of basic services must be increased.

 

While Orissa seeks to industrialize on the strength of its rich mineral wealth, it is important to ensure that those who live on mineral-rich land benefit adequately from the advent of large mineral-based industries. While the Orissa government has adopted a progressive rehabilitation and resettlement policy for the displaced, and legislated to ensure that a share of company profits are earmarked for development, the challenge ahead lies in   the effective implementation of these promising policies.

 

As Orissa strives to build for the future and surpass average Indian living standards by 2020, it can take productive lessons from its recent successes. The open and consultative process that has served it well in the past will be necessary to deal effectively with the complex issues that lie ahead on the road to modernization.

 

Reforms Spur Faster Economic Growth

 

Since 2001,Orissa has achieved a remarkable fiscal turnaround. The ratio of the state’s debt burden to annual GDP has fallen significantly, helping it transform from being one of the most fiscally-stressed states of the country in the late 1990s, with a primary (non-interest) fiscal deficit of 6 percent of GSDP, to a surplus of 3.4 percent.

 

The turnaround has been triggered by a number of factors. Policy reforms at the central and state level have spurred the arrival of industry, the state government’s strong resolve has helped to complete long pending infrastructure projects despite a resource crunch, and its consultative approach has enabled it to reduce expenditures:

National level reforms: The central government’s elimination of the freight equalization subsidy – that prevented Orissa from becoming an attractive location for mineral based manufacturing in the past – paved the way for arrival of the metal industry in the state.

State government efforts to improve the investment climate: This was followed by a wave of well-sequenced state level reforms. In the first instance, from 2000 to 2003, the government mainly concentrated on raising its revenues through tax reforms and improving the investment climate by simplifying the regulations.

 

Between 2004 and 2006, it undertook significant measures to contain unproductive public expenditures. Through a consultative and transparent process, the state government took the people on board in its efforts to rightsize the civil service, retrench employees of loss making public enterprises, and rationalize grants to non-government high schools and colleges. The growing private sector presence that had already begun to open up new job opportunities for the people, helped gain their acceptance for the government’s efforts to downsize the public sector.

Improved connectivity: Strong resolve and a focus on outcomes rather than outlays helped the government to complete long-pending construction projects – roads, bridges and irrigation canals – despite constrained budgets. As a result, the number of bridges completed rose from 19 in 2004 to over 100 in 2006.

 

CHALLENGES AHEAD:

Over 45 percent of Orissa’s people still live in poverty with almost half of them belonging to the Scheduled Tribes, most of whom live in remote villages with little migration to the cities. There are large gaps in the delivery of basic services. The state still has large untapped potential for economic growth.

 

Improved transport and power connectivity: Almost half the villages in Orissa are small and isolated – with less than 500 residents. As geographical isolation poses a big challenge for connectivity, adequate road, rail, and port infrastructure is essential for inclusive growth as well as to benefit from the state’s mineral endowments.

 

Urban infrastructure: Although Orissa has one of India‘s lowest levels of urbanization – 15% – its urban centers are growing rapidly. With the growing advent of industry, tourism and IT services, the demand for urban housing, water and power services is likely to increase many times over. Massive upgrading of urban infrastructure is therefore needed to attract and retain the skilled labor force demanded by modern industry and services.

 

Agricultural and forestry growth: While some 85% of the state’s population remains dependent on agriculture, fisheries and forestry, these sectors are beset by low yields, excessive middlemen, poor connectivity, and lack of storage facilities. The ban on land leasing has resulted in informal and illegal share-cropping arrangements that are harmful to cultivators. To improve the rates of return from farming, the state has amended the agricultural products marketing act to permit privately run mandis and contract farming. The computerization of land records is ongoing. Yet, reforms in land tenure and land administration are needed so that small farmers can access bank credit and make productive investments in the land. For the mostly tribal populations that are dependent on forest produce, joint forest management practices can be a promising route to higher incomes.

 

Education: While school enrollment has risen, learning levels remain very low. While the state government has launched bold measures to improve teacher accountability, strong educational fundamentals from the earliest years, supplemented by some public and mostly private efforts in training and skill development are needed.

 

Health: Despite dramatic improvements in overall infant mortality rates in the past 5–10 years, the predominantly tribal districts lag behind. They have the poorest immunization rates and least access to antenatal care. While the state government’s health sector plan for 2005 envisages a decentralized and participatory approach to service delivery, innovative and flexible approaches will be required to reach geographically isolated villages. Importantly, systems of accountability will need to be strengthened before budget allocations to education, healthcare, and anti-poverty programs are increased.

 

Small and Medium Enterprises: With the arrival of new mega projects, the demand for a wide range of goods and services will rise, generating opportunities for small investors as well as new avenues for employment. To capitalize on these opportunities, an improved regulatory climate for SMEs is called for.  

Environmental considerations while tapping mineral rich areas: Given that mineral-based industries impact the environment, there is need to strengthen environmental institutions. Ongoing plans and current efforts of the government toward strengthening public consultation mechanisms will play a crucial role in determining the sustainability of mineral sector investments in Orissa.

 

QUESTIONS & ANSWERS

 

 

1. How many people have been brought out of poverty in recent years?

 

Between 1999/00 and 2004/05, based on NSS data estimates using ‘mixed reference period’, the proportion of people in poverty in rural Orissa declined by 8 percentage points compared to 5 percentage points in rural India as a whole. Despite this progress, however, the level of poverty in Orissa remains significantly higher than the rest of India.

 

According to the latest calculation based on official figures released recently by the Planning Commission, the number of poor in Orissa has come down by about 1.5 million between 1999/00 and 2004/05.  This figure will feature in the final Bank report.

 

 

2. By how much has Orissa’s economy grown in recent years?

 

The rate of economic growth depends on the period one considers. According to the latest data released by the Directorate of Economics and Statistics, Government of Orissa, the state GDP grew at 10.5 percent annually on average during the most recent five years, that is 2003/04 to 2007/08.  During the Tenth Five-Year Plan period, that is 2002/03 to 2006/07, the average growth rate was 8.5 percent.  Clearly, Orissa, which grew much slower than the rest of India during the 1990s, has now caught up.  From about 2004 onwards, it has begun to overtake the national average.

 

3. What is the state’s current debt burden?

 

How the debt burden has moved can be appreciated by comparing not rupee figures but the ratio of the debt burden to annual GDP or annual revenue. As a proportion of revenue, Orissa’s debt has fallen from 343 percent in 2001/02 to 201 percent in 2007/08. As a proportion of GSDP, it has declined from 63 percent to 50 percent.  This is a major correction, and reflects responsible fiscal management to lift the state out of a crisis situation.

 

 

4. Has the government achieved a revenue surplus by curtailing capital expenditure and squeezing development expenditure?

 

The revenue surplus has been achieved as a result of 3 factors:  improved performance of the state’s own taxes, enhanced central transfers and external donor support, and curtailing of expenditure.  The capital budget was constrained during 2002-05, but still outcomes improved due to emphasis on project completion. As explained in the report, there was undoubtedly a lot of flab in the administrative machinery, and Orissa was more over-staffed than other states. The government undertook major surgery to trim the fat, and in the process some muscle also got cut, which needs to be rebuilt now.   The Government of Orissa has been hiring a large number of para-teachers, and the teacher-pupil ratio is 40 on average, ranging from 31 in the best served district to 60 in the worst.  This is far better than the situation in Bihar, Jharkhand, Karnataka Madhya Pradesh, Uttar Pradesh and West Bengal.

 

 

5. Has the signing of MOUs been interpreted as industrial growth?

 

The reported industrial growth in recent years is based on actual and officially estimated GSDP figures, not on MOUs.  Assessment of future prospects has been informed by CMIE’s projections using detailed information on the status of each investment project under implementation, and its likely date of completion based on historical experience and informed judgment in exceptional cases.

 

 

6. What is the evidence of crop diversification?

 

The report cites some signs of crop diversification.   For instance, the output of maize and cotton has increased in some areas; this is reflected in official agricultural crop statistics.