___________

Following is an excerpt from a report in Pragativadi.

The Supreme Court on Friday permitted South Korean steel major Posco to set up Rs 51,000-crore mega steel plant and captive minor port at Paradip in Jagatsinghpur district.

A special environmental bench headed by Chief Justice K G Balakrishnan allowed Posco India Pvt Ltd, a subsidiary of South Korea-based Posco, to go ahead with its plans.

With this order, the apex court has also cleared forest diversion proposal for the plant site which require 1253.225 hectares of forest land.

The court, while directing the Orissa government to dispose of all the Posco’s applications seeking prospecting licences within four weeks, also asked the state government to send its recommendations to the ministry of environment and forests that would proceed in accordance with law.

The bench also asked the state government to undertake implementation of compensatory afforestation plan under the supervision of a Supreme Court-appointed committee comprising top officials of the state government.

… Posco counsel Mukul Rohtagi contended that the state government-owned Orissa Mining Corporation had agreed to supply uninterrupted iron ore and other minerals for its steel project and had identified mines in the western part of the state, some 300 km away from its project site.

… The company can source raw materials on its own and can buy the same from the open market, he said, adding that the company is not dependent on prospecting licence.

Following is an excerpt from a report in Business Standard.

The State Level Single Window Clearance Authority (SLSWCA) of the Orissa government, headed by Chief Secretary, Ajit Kumar Tripathy, today approved projects worth Rs 42,911crore mainly pertaining to the aluminium sector. It includes the Rs 16,345 crore investment proposal of the National Aluminium Company Ltd (Nalco), Rs 19,668 crore proposal of L&T-Dubal, Rs 6800 crore proposal of RSB Metaltech and Rs 98 crore investment proposal of Kanpur based Bajaj Steels and Industries Ltd.

Following is from a report in SteelGuru.com.

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

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

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

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

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

An environment regulatory committee set up by the Supreme Court has recommended a stringent mechanism for granting mining lease to Sterlite Industries, the parent company of the London-based Vedanta Alumina Ltd, to mine bauxite from the eco-sensitive Niyamgiri hill area for its proposed Rs 4,000 crore aluminium project in Orissa.

As against the plea by the Sterlite India, the Central Empowered Committee suggested that the majority 51% share in the special purpose vehicle — ‘Lanjigarh Scheduled Area Development Foundation’ — should be with the Orissa government and 24.5% each should be with the Orissa Mining Corporation (OMC) and Sterlite.

The Sterlite had suggested that its own share should be 49%, while the Orissa government and OMC should hold 26% and 25%, respectively.

A bench of chief justice K G Balakrishnan, justices Arijit Pasayat and H S Kapadia directed Sterlite and the Orissa government to file affidavits on the formation and constitution of the special purpose vehicle.

…
Sterlite has sought direction from the court to accord clearance of the forest diversion proposal submitted by Orissa Mining Corporation for diversion of 660.749 hectare of forest land to undertake bauxite mining on Niyamgiri Hills in Lanjigarh for its Rs 4,500 crore Alumina plant in Orissa.

Sterlite has agreed to give 5% of the annual profits before tax and interest from the Lanjigarh project, consisting of bauxite mining and alumina refinery, or Rs 10 crore per year, whichever is higher, to the Foundation every year from April 1, 2007.

Sterlite also said it would make a payment of the net present value (NPV) of Rs 55 crore and Rs 50.3 crore towards wildlife management plan for conservation and management of wildlife around the Lanjigarh mine and Rs 12.2 crore towards development for the tribal people.

The committee said there has to be a balance between conservation and development. “The balance between these two would thus lie in permitting conservation not merely for private profit but in a manner that maximises the public interest component in the activity,’’ it said. …

Following is an excerpt from a report in Pragativadi.

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

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

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

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

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

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

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

Following is an excerpt from a report in Business standard.

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

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

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

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

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

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

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

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

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

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

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

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

Following is an excerpt from a news report in Pioneer.

Vedanta Aluminium Limited signed an MoU with the Apollo Health & Life Style Limited on Tuesday to open two units of The Apollo Clinics at Lanjigarh and Jharsuguda.

The MoU was signed at the Vedanta office in Bhubaneswar by M Siddiqi, Director and CEO, Aluminium Sector, Vedanta Group, and Ratan Jalan, CEO, Apollo Health & Life Style Ltd, in the presence of Vedanta Aluminium CFO Virendra Agrawal, GM and Head, PR & CSR, Prashanta Hota and other officials form both sides.

The MoU deals with the establishment and management of the two well-equipped Apollo Clinics, which would be fully supported by Vedanta Aluminium. Funded fully by Vedanta, the two units have accepted the responsibility of recruiting doctors, providing all kinds of diagnostic facilities, specialist treatment, extending other modern healthcare facilities and running the clinics at both locations.

Involving a total investment of about Rs 5 crore, the day-to-day operations would also be fully funded by Vedanta.

Besides rendering quality healthcare services to the project-impacted people and employees of Vedanta Aluminium and their dependents, the clinics would be running a Sick Bay Unit in the plant premises and regularly conduct Outreach Programmes in the periphery villages.

Following is extracted from a report in sify.com.

Maytas Infra Ltd (MIL) is an infrastructure development, construction and project management company with more than two decades of experience in execution of complex & challenging landmark projects across the country. The company recently forayed into segments such as airports, seaports, oil and gas pipelines. MIL plans to diversify into new verticals like mining and related activities, manufacture of construction material and providing advisory & consultancy services.

… MIL’s new projects include railway siding project for Vedanta Industries in Orissa, Chennai MT Project & Hyderabad MRTS project.

… Its current projects include Vedanta Aluminium’s, Residential Township in Orissa worth Rs. 232.7 crore …

… MIL in JV with other firms is currently working on setting up 464MW Gas based Gautami Power project in AP, 100MW Sorang Hydro Power Project in Himachal Pradesh, 300MW KVK Nilachal thermal power project in Orissa and 56MW coal washery reject based SV Power project.

 

Following are some excerpts.

Business Standard:

Non-ferrous metals giant Vedanta Resources is planning to enter the Indian steel sector with a 5 million tonne plant at an investment of about Rs 24,000 crore in Keonjhar district of Orissa and envisaging its commissioning by 2012-13.

"We are impressed at the growing consumption of steel in India and are keen to enter its steel sector. We are planning to build a 5 million tonne steel plant at Keonjhar district of Orissa. If we find a suitable partner, we should be able to commission it by 2012-13 at an investment of about Rs 24,000 crore," company sources said.

Sify.com:

Vedanta Resources is planning to make an initial public offer (IPO) to raise $1 billion for Sterlite Energy, a subsidiary of its group company and Indian non-ferrous metals producer Sterlite Industries (India) Ltd.

"We are planning for a $1-billion IPO for Sterlite Energy in the next few months," Vedanta Resources Chairman Anil Agarwal told reporters here Wednesday.

… Agarwal said the London Stock Exchange-listed Vedanta Resources is also considering options to sell shares via a pre-IPO placement.

He added that the company plans to participate in coal-based power generation projects through the subsidiary, Sterlite Energy Ltd.

"We are looking at 10,000 MW commercial power generation by 2012," he said. The power plants are likely to be set up in Orissa and Jharkhand, he said.

Following is an excerpt from a report in Economic Times.

The Orissa government has given administrative sanction for acquiring land at Patana tehsil in Kenojhar district for Arcelor-Mittal’s proposed 12 million tons per annum steel plant.

The company … has already deposited Rs 4.03 crore with the Industrial Development Corporation (IDCO) as processing fee for phase-I land acquisition.

The government has also appointed a nodal officer to oversee land acquisition process and other issues concerning the company’s greenfield project, said Steel and Mines Minister Padmanabha Behera.

Arcelor-Mittal is understood to have sought nearly 8,000 acres of land for the purpose and the state is believed to have agreed to the request.

The government has, however, cleared acquisition of only 1,224 acre of land spread over three villages like Angikala, Baradangua and Bhrungaraj under Patana tehsil in the first phase of land acquisition.

The 1,224 acres demarcated for the first phase acquisition comprised 431 acres of government land and 739 acres belonging to private owners.

While the government had fixed price per acre of state land at Rs two lakh, it was yet to decide cost of private land which would be fixed according to rehabilitation and resettlement policy.

This appears in various news media. Following are excerpts from a report in Kalinga Times.

… IBM India on Wednesday announced the launch of its SMB operations in Bhubaneswar .

This expansion will enable IBM to provide better support to SME clients in and around Bhubaneswar and help IBM’s customers leverage IT for business growth.

In addition, mid-market businesses will also benefit from the new IBM Express Advantage initiative that provides SMEs with a unified end-to-end approach to help them innovate and expand.

…Earlier this year, IBM had announced a plan to extend its presence to 14 cities outside of the key metros, and has successfully launched operations in Bhopal , Chandigarh , Coimbatore , Cochin , Goa, Jaipur, Jamshedpur , Lucknow , Nagpur , Nashik, Surat , and Vizag. It will look to expand into Ludhiana and Madurai as well.

… IBM’s SME offerings have already been accepted in various industries and organisations. Some existing customers in Bhubaneswar include, Government of Orissa IT Department – OCAC, Dept of Treasury Orissa, Paradeep Phosphates Ltd, Vedanta Alumina Ltd, Kalinga Institute of Industrial Technology, Biju Patnaik University of Technology, and Utkal University to name a few.

Following are extracted from a report in the Pioneer.

• the State Commerce and Transport Department, in its sanction order-29753, dated May 30, 1970, had allotted 3, 793.21 acres in the first phase and 2285.23 acres in the second phase to the Paradip Port Project. Most of the lands were obtained from Sandhakuda, Bijayachandrapur, Balijhari and Bhitaragara villages, under Kujang Tehsil. According to the official sources, about 6,889 acres of land were supplied to the Paradip Port Trust.
• The State Government had provided 62.19 acres of land to the Paradeep Phosphate Ltd, which is a fertiliser plant that started its project in 1982. The PPL had acquired 405 acres of private lands from Bhitaragada village on its own.
• … in Paradeep-Cuttack railway line 137 acres of land were acquired from the Bhitaragada village.
• Kujang Tehsil had about 1,500 acres of Government land in the Musadiha area that was provided to the Oswal Fertiliser Plant in the year 1995-96. The plant had also purchased about 500 acres of private land from the local people.
• … in 2000 Indian Oil Corporation had purchased 3,300 acres of private land from the local people of 17 villages for its refinery project, which was to be set up on the outskirts of Paradip but the project is yet to come.
• for much-hyped Haridaspur-Paradip Railway Project, widening of the NH-5 and recent expansion of Cuttack-Paradip State Highway, thousands of acres of both Government and private lands have been acquired from Kujang Tehsil.
• Essar, the 6 million tonnes steel plant project, moves for the land acquisition in Paradip and the project needs about 1,950 acres of land. The State Government has already given 350 acres of land to the plant. It will procure the remaining required land from private land.
• Posco has shown a demand of about 4,004 acres of land in Dhinkia, Gadakujang and Nuagaon villages for its steel plant and port project. The State Government has given assurance and has provided Posco most of the encroached Government and forestlands. The rest of the required land would be purchased from private landowners.

Following is an excerpt from http://www.hemscott.com/news/latest-news/item.do?newsId=53878217759003. 

… India’s Supreme Court set new conditions for the project.

Vedanta’s battle to mine bauxite to feed the refinery in forests considered sacred by indigenous people has been seen as a test case in India, pitting industrial development against the interests of local inhabitants and the environment.

The Supreme Court refused to let the project in the eastern state of Orissa go ahead in its present form on the grounds that it could affect ‘sustainable development’ and asked Vedanta to come back with a new plan.

The court said Vedanta would have to give money for forest destruction, wildlife management and tribal development totalling around 180 mln usd.

Other conditions would include handing over 5 pct of pretax profits annually from its mining projects across India to the Orissa government.

Vedanta would also have to set up a ‘special purpose vehicle’ to ensure that environmental regulations were met, the court said.

Vedanta must file an interim application within eight weeks saying if it agreed to the conditions and the Supreme Court would reconsider the project, the court bench ruled.

Vedanta has been fighting for three years to obtain clearance for open cast mining of vast deposits of bauxite in the densely forested Niyamgiri hills to feed the 900 mln usd alumina refinery it has built nearby.

There was no immediate comment from Vedanta on the court ruling but it has in the past denied any wrongdoing and argued its projects would be welcomed by residents of the desperately poor region.

Following is an excerpt from Pioneer that gives the first reaction from Vedanta officials in Orissa on the supreme court judgment.

Reacting to the judgment, vice-president of Vedanta Alumina Ltd AK Samal said the Supreme Court had reiterated its emphasis on sustainable development but has no objections in principle to mining at Niyamgiri. However, the court has stipulated certain conditions to be complied by the project proponent.

He said the apex court had desired that Sterlite Industries, the flagship company of Vedanta Resources PLC in India, duly enlisted on the Indian Stock Market be a part of the Special Project Vehicle (SPV) for mining at Niyamgiri and Scheduled area development at Lajigarh, where the company’s alumina refinery is located. "We will take all steps to immediately abide by the directions and conditions set out by the SC," he said, adding that the company was still waiting for a copy of the judgment.

Samal said his company was committed to the cause of the social uplift through reasonable industrialisation.

…. Secretary of the Orissa Wildlife Society Biswajit Mohanty, who had filed the petition against the Centre’s decision to allow Vedanta to set up its aluminum refinery and undertake mining activities, said the SC had taken note of their concern. On behalf of the Lok Abhiyan, noted activist Prafulla Samantray had also filed a petition before the Central Empowered Committee (CEC) of the SC.

The social activists filed the petition alleging that if Vedanta was allowed to undertake mining activities, the whole biosphere of Niyamgiri would be affected. The two major rivers, Bansadhara and Nagabali, which originate from the hill, would disappear. Thus it would affect the whole tribal population of the southern parts of the State, they argued.

Taking note of the serious allegation, the CEC had sent a two-member expert team (SK Chadda and SC Shrama) to make a spot inquiry. The team visited Niyamgiri in December 2004. It submitted its report in January 2005. Later, the CEC started the hearing of the petitions. The CEC visited Lanjigarh, where the plant is coming up. It submitted its report to the SC in September 2005, reportedly suggesting that Vedanta should not be allowed to take up mining activities.

The Ministry of Environment and Forests (MoEF) granted environmental clearance for the project on September 22, 2004, and in its letter clearly specified that the source of bauxite for the refinery would be the Niyamgiri mine near Lanjigarh. This led to a furore among environmentalists, who argued that as it came under the Schedule V area of the Constitution, the environment clearance granted by MoEF and forest clearance should be reviewed.

Following is an excerpt from a report on Pioneer on this.

Leader of the opposition JB Patnaik on Thursday came out with an alternative proposal on how to provide water to Posco’s proposed steel plant at Paradip without compromising the interest of farmers.

Addressing a Press conference, Patnaik said a dam could be built on the lower Mahanadi basin near Ersama to provide water to Posco’s plant at Paradip. Ersama is only 30 to 35 km from Ersama and it would not be difficult for Posco to take water from this place.

Patnaik has also come out with another proposal on how to meet the demands of the water requirement of the other industries. As per Patnaik, a barrage should be built on the IB River, on the upper basin of Mahanadi. He further said that a proper assessment should be made on the water requirements of the industries.

Following is an excerpt from Pioneer on this.

The Forum stated that the land requirement of South-Korean steel maker Posco India Ltd has 4,004 acres, including around 3,566 acres of Government land, for their proposed 12 million ton steel plant at Paradip; based on all weather port, SEZ status as well as Finex process for production process. On the other hand, MSIL had shown a total requirement of 8,750 acres, including 4, 469.79 acres of Government land, for their 12 million ton proposed steel complex at Patna in Keonjhar district. Dastur and Co is yet to submit the post- DPR.

Former Wing Commander Kiran Sankar Behera and Sudershan Pattnaik of KCF pointed out the contrast between the land requirements shown by Essar, JSPL, Sterlite (Vedanta Group) and Uttam Galva for their proposed steel complexes at Paradip, Angul and Sadar Sub-division of Keonjhar district and that of Posco.

For instance, Uttam Galva Steel Limited (UGSL) had shown a land requirement of 2,130 acres for their 3-million-tonne projects like Vedanta, Essar and Jindal whose complexes are to come up at Keonjhar, Paradip and Angul.

Meanwhile, Chief Secretary Ajit Tripathy asked the MSIL Group to release their land requirement.

Meanwhile, unconfirmed sources informed that Dastur and Co had submitted a detailed tech-economic feasibility study, in which the exact requirements of land for steel, sponge and pig iron per metric tonne were clearly mentioned, in accordance with the standards fixed by the State Government, a few months back.

Observers maintained that in the present day production process employs high technology, mostly latest Chinese technology. For cost-effective and qualitative management, the best option is to have very less amount of land for keeping daily inventory and for waste disposal at the proposed site. This will prove time friendly for both the State and the companies.

Following is an excerpt from a report in Economic Times.

Global steel leader Arcelor-Mittal, which proposes to set up a 12 mtpa plant in Orissa, on Friday said it will harvest rain water and use technology that consumes least quantity of ‘H2O’ to reduce pressure on the natural resource.

"We are consulting international experts in the field on how to meet the challenges ahead", member of Arcelor-Mittal’s group management board Malay Mukherjee told reporters, admitting water was a major problem for industries in Orissa.

… Replying to queries, Mukherjee said the steel major was aware of the recent development where farmers in western Orissa had strongly opposed the government’s decision to supply water from Hirakud reservoir to industries.

"We too do not want to take a farmer’s share of water. Therefore, the company has planned to make its own arrangement in the plant premises", he said, adding that water harvesting was one of the key options the company would like to exercise.

However, a permanent solution would be using technology that requires least water for steel making and research was on for recycling the water in order to minimise the requirement.

Following is an excerpt from a report in New Indian Express.

Expressing satisfaction over the project’s progress, Mukherjee said the detailed project report (DPR) will be completed by June 2008. Though the rehabilitation and resettlement (R&R) package of the company has been finalised, it will be made public after transfer of land.

A high-level team from the company had finalised Patna tehsil as the site of the plant. Out of the 16, land acquisition is going ahead in 15 villages.

The company will soon open district office at Keonjhar. An ITI will be set up to train the youth of the area. Mobile health vans will also be pressed into service, he added.

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

Arcelor-Mittal’s proposed Rs 40,000 crore, 12 million tonne per annum greenfield steel project in Orissa has made headway with the start of the land survey at the proposed site in Patna tehsil in the Keonjher district.

While the company has launched the survey in 16 villages in the area, it has completed the process in four villages. The company has also submitted a land acquisition plan to the state government.

Meanwhile, though the company has finalised a rehabilitation and resettlement (R&R) plan for the project-affected people, it is waiting for the land clearance from the state authorities to submit it to the government.

“We have our R & R proposal ready. Once the state government gives clearance of land, we will submit the proposal”, said Malay Mukherjee, member, group management board, Arcelor-Mittal.

Talking to mediapersons after a meeting on the progress of the project chaired by Chief Secretary Ajit Kumar Tripathy, Mukherjee said about 70% of the detailed project report (DPR) work for the Keonjhar plant is complete. The report is expected to be finalised by June 2008, he added.

M N Dastur & Company is preparing the DPR. The scope of the DPR, among other things, includes captive mining facilities, captive power supply, water supply and other infrastructure facilities like effluent disposal, environment and township for the company�s employees. …

While the company has got a coal block along with five other companies in Rampia and dipside Rampia, it is exploring the possibility of forging partnership with a mining company to source iron ore till it is allotted captive mines. It has recently applied for a joint partnership with the state- owned Orissa Mining Corporation (OMC) in this regard. …

While the total reserves in Rampia and dipside Rampia is estimated at about 600 million tonne, Arcelor-Mittal is expected to get about 85 million tonne.

Mukherjee said a 10-member team of Arcelor-Mittal is now finalising the technical specifications of the steel plant.

Following is an excerpt from a report in Business Standard.

Mittal Steel India, which is in the process of readying its rehabilitation and resettlement (R&R) package for its 12 million tonne Orissa project, will consider issue of shares and land-for-land as part of its compensation to land-losers.

Sanak Mishra, chief executive officer, Mittal Steel India said, “The Orissa government’s R&R policy includes issue of shares as a means of compensation and if the people want it, we will do it. But that will happen at the implementation stage and we have to see the legal standpoint and the mechanism.”

Mittal Steel hopes to finalise the draft R&R package and make presentations to the Orissa government by month end. “If the Orissa government wants to incorporate something, we will look into it.”

The state government’s policy mentions convertible preference share as a compensation option. It says that at the option of the displaced family and subject to the provisions of relevant laws in force, the project authority could issue convertible preference shares or secured bonds up to a maximum of 50 per cent out of one-time cash assistance.

“There were also other physical issues being considered like alternative land for the displaced people. We will, however, have to assess how much land is required,” said Mishra.

… After finalising the scheme in consultation with the state government, Mittal Steel plans to embark on a communication programme with the land-losers.

The project site is a mix of government and private land. The 12 million steel plant at
Keonjhar would require around 8,000 acres, which includes 1,000 acres for the captive power plant and 1,000 acres for the township.

Mittal Steel is also in dialogue with the Orissa for iron ore mines. Various options are being explored, including arrangement with the Orissa Mining Corporation (OMC), a state-owned mining corporation.

“Talks are at an exploratory stage and it was too premature to talk about it. An arrangement with OMC could enable Mittal Steel to go through captive iron ore mine allocation process, which was one of the stumbling blocks for the company’s Jharkhand project,” Mishra added. Mittal Steel requires around 600 million tonnes of iron ore over a 30-year period for its steel plant.

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

… “We have received a proposal from Arcelor-Mittal, requesting for an arrangement with OMC,” confirmed a senior officer. “The government is exploring the possibilities and details remain to be worked out. It could mean a long term agreement or a joint venture between the two parties,” the officer told TOI. The government, sources said, has set up a four-member committee headed by chief secretary to examine the proposal’s feasibility and chalk out the draft terms and conditions.

Sources said Arcelor-Mittal is yet to submit any application for prospecting lease or mining lease for any iron ore deposits, but evidently does not want to take chances. Hence, it has proposed a tie-up with the state-owned body to serve as a back-up. “The company would no doubt go for captive mines. The pact with OMC would ensure an alternative raw material arrangement for the company’s project,” sources pointed out. Orissa has so far inked pacts for 46 steel facilities, sparking doubts over iron ore scarcity in future.

Arcelor-Mittal, which has signed an MoU with the state government to set up a 12 MTPA steel plant at an investment of Rs 40,000 crore, is the first major player to make this kind of a proposal. Some small steel units had earlier sought to enter into raw material supply agreements with OMC, apparently to ensure a steady flow of iron ore and offset price fluctuations. Some steel plants, which have reached production stage, are buying ore from the market at higher prices, sources disclosed.

Business standard reports that Posco near Paradip in Orissa has received a major boost with people of two grampachayats, out of three panchayats affected by the project, writing to the district collector pledging their support to the project. Excerpts:

“For its steel project, Posco had sought 4,004 acres of land spreading over three panchayats — Nuagoan, Gada Kujanga and Dhinkia. Of the total land, 3,566 acres are government land while the remaining 438 acres are privately owned.

However, the company was unable to acquire land due to stiff opposition by the local people to the project even after lapse of two years of signing of a memorandum of understanding (MoU) with the Orissa government in June 2005 and issue of 4/1 notification for land acquisition in May 2006.

The recent submission by the village committees of Nuagaon and Gada Kujanga to the Jagatsinghpur district collector, pledging their support to the project, has brightened up the prospect of its establishment, pointed out an official of the district administration.

The two panchayats account for 238 acres, out of 438 acres of private land slated to be acquired for the project. Similarly, of the 471 families likely to be displaced by the project, 275 families belong to these panchayats.

Further boosting up the company’s moral 40 betel vine owners, who are among the most affected villagers, have recently surrendered their betel vines and accepted compensation while 250-300 others are waiting to surrender their vines.

In their letters, the respective village committees have expressed their willingness to part with land for the project and offered their participation in the peripheral development work to be undertaken by the government, the sources added.

However, the Dhinkia panchayat, which is the nerve centre of anti-Posco movement, is yet to reconcile though fissures have appeared in stitching up a united front by the people of this panchayat against the company. Seventy-two families from Patna village under Dhinkia gram panchayat have offered their land to the project.

Similarly, the people of Gobindpur village under this gram panchayat pledged their support to the project in September 2007, and invited the district collector to visit them to discussion on land acquisition and compensation packages.

The growing support for the Posco plant was further demonstrated when over 5,000 people attended a rally and public meeting under the leadership of local MLA and senior BJD leader Damodar Rout at Balitutha, the entry point to the troubled site on November 1.

This was the first show of strength by the pro-project groups whose support to the project was often muted by the vocal and often violent opposition mounted the anti-project brigade in the area. To counter the pro-Posco rally, the project opponents had organised a demonstration just across the Balitutha bridge. However, they were hugely outnumbered with about 1,000 people participating in it.

But the leaders of the Posco Pratirodh Sangram Samiti (PPSS), spearheading the agitation against the proposed plant, are willing to accept defeat just on the basis of this headcount.

Most of the people who participated in the pro-Posco rally were outsiders who were transported to the venue by the ruling party, says Abhaya Sahoo, the president of PPSS.

“We will continue our fight and not allow the company to set up its plant here,” he added.“

This looks positive.
Just to summarize

• GadaKujang and Nuagaon are supporting the project.
• Some villages in Dhinkia Panchayat seem to be favouring POSCO like Patna village and Gobindpur village.
• 5000 people supported POSCO in the rally, but , 1000 went against it.
• 72 families from Patna village have already offered land.
• This was the first show of strength by the pro-project groups whose support to the project was often muted by the vocal and often violent opposition mounted the anti-project brigade in the area