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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 a report in tathya.in.

for Pramod Bhasin, the Capital city of Orissa is emerging as an important location for the outsourcing industry.

The President and CEO of the global leader in Business Services and Technology Solutions, Genpact has pinned high hopes on Bhubaneswar as there is strong infrastructure, good talent and tremendous government backing.

Mr.Bhasin was speaking on the occasion of ground breaking ceremony for the upcoming Special Economic Zone (SEZ) on 21 November.

Graduates having command over English have fair chance of getting into Genpact, said Mr.Bhasin.

Chief Minister Mr. Patnaik laid foundation stone for the SEZ.

Spread over 12.145 acres, the commissioning of this SEZ facility will provide 5,00,000 square feet office space to provide seat for over 4000 employees.

Following is an excerpt from a report in the Statesman.

Spread over an area of 12.145 acres, the commissioning of the SEZ facility will take place in three phases between 2009 and 2011. It will provide 5,00, 000 square feet for 4,000 employees of Genpact. The development of such facility in Bhubaneswar will make it the 7th city in operation for Genpact in India.

Genpact, which has been ranked No. 1 on the 2007 list of top 15 ITeS-BPO companies in the country by NASSCOM, has recently been rated among the top three BPO employers for 2007 in Dataquest-IDC E-Sat (Employee Satisfaction) survey.

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

After successful completion of first-phase land acquisition for the SEZ, preparations are on to start the second phase. In the first phase, 250 acres, including 48 acres of government land, have been acquired.

Another 250 acres would be acquired in the second phase likely to start by this year-end. M/s Saraf Agencies Pvt ltd, a Kolkota-based firm, will set up the SEZ with Russian collaboration.

The firm has been pursuing this project for the past 10 years because of the high mineral content in beach sand along the coastline.

However, the agitation against the proposed mega steel plant by Tisco delayed the decision of the firm. The firm has also started its efforts to search partners to set up its proposed titanium dioxide plant near Orissa Sands Complex (OSCOM), a unit of Indian Rare Earths Ltd near Chatrapur.

The plant will facilitate setting up of the SEZ. The company has signed an MoU with two Russian state-run agencies for the proposed SEZ that will process titanium from ilmenite ore.

The MoU was signed during the visit of Russian president Vladimir Putin to India and the project will entail an investment of $250 million (around Rs.1200 crore).

The two Russian entities that will take part in the project are Vnesheconombank or the Bank for Foreign Economic Affairs and JSC Technochim Holding, which is a St. Petersburg-based public sector undertaking.

During recent visit of Prime Minister Manmohan Singh to Russia, the Russian premier Viktor Zubkov informed that his country is ready to actively participate in development of the SEZ as part of the efforts to boost bilateral economic ties.

While the Russian firms will have a 55 percent stake in the project, there will be financial participation from them.

They will provide the technology to process titanium from ilmenite ore. The Indian government plans to use this project to set off part of the debt in the rupee-rouble account and will, therefore, invest $125 million in the SEZ.

Saraf Agencies will pump Rs 175 crore into the project and the remaining amount will be raised as loan. The company received an in-principle approval for the SEZ on August 23 last year. The ilmenite ore will be provided by OSCOM.

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 are excerpts from a report on this in Business Standard.

National Aluminium Company (Nalco), the largest producer and exporter of aluminium in the country, plans to set up an aluminium park at Angul to boost consumption of the metal within the state.

Most of the aluminium produced by the public sector blue chip company, at present, is either exported or sold outside the state for further value addition. Out of the average 30,000 tonnes of aluminium produced per month by Nalco’s smelter at Angul, 28,000 tonnes are dispatched outside the state, with only 2,000 tonnes being consumed in the state.

The proposed aluminium park is expected to increase the metal consumption within the state to at least 20,000 tonnes per month, says CR Pradhan, chairman and managing director of Nalco.

He said both national and international aluminium players would be invited to set up downstream units in the proposed park to facilitate more metal sales within the state. Nalco has approached the Industrial Infrastructure Development Corporation of Orissa (IIDCO) to acquire about 1,000 acres to be handed over to it for the purpose.

Meanwhile, Nalco’s plan to set up a second smelter plant along with a captive power plant in Orissa depends on the company being allotted additional bauxite mines and coal block for the project. …

Allaying all apprehensions regarding delay in the ongoing expansion project of Nalco, both at Angul and Damanjodi facilities, he said they would be completed within stipulated time.

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 the Business Standard.

ICICI Group’s eastern regional hub for back office operations, coming up at Chandaka industrial estate in Bhubaneswar, will be commissioned in 2009. This is one of the four regional hubs planned by the group.

“We expect the first phase to be commissioned in the next 18 to 24 months,  and, hopefully, the hub will be commissioned by the summer of  2009,” K V Kamath, managing director and chief executive officer, ICICI Bank, said.

Talking to newsmen after the bhoomi pooja (ground breaking ceremony) for the proposed hub, Kamath said the second phase is scheduled to be commissioned a year later if every thing goes right.

He said the hub will have a built-up area of 1.25-1.5 million square feet in the first phase, and will accommodate about 15,000 people.

The group had earlier signed an MoU with Utkal University and KITT for offering skill-enabling and vocational courses in the domain of banking, finance and insurance.

Kamath said about 10,000-12,500 people will be employed in the Bhubaneswar hub in phases.

Following are some excerpts from that article.

… Bhubaneswar already ranks very high on the software exports frontwith Rs 732 crore completed in 2006-07, Bhubaneswar was 9th in the pecking order among Indian cities. Says Vishal Dev, director, IT, government of Orissa, “Till last year, we were the largest city in the whole of Eastern India on software exports, before being overtaken by Kolkata.” And, now have ambitious plans to reach $1,000 mn in software exports by 2012.

t is also one of the few cities in the country that boasts of the presence of the Big Four of Indian software exports. While Infosys and Satyam have been present in the city for quite some time and have 3,000 and 1,000 people respectively, TCS, after starting last year, has recruited 300 people. Wipro, too, has started campus construction. Add to this, Genpact, IBM Daksh, and ICICI, which are starting their eastern region BPO hubs, and it becomes obvious why Bhubaneswar today commands respect as an IT/BPO destination. The picture would not be complete without mentioning the arrival of MindTree Consulting, Aricent, Contiloe Films as well as Perfectus, which plan a 5,000 seater IT/BPO unit.

The arrival of these leading players also indicates how Bhubaneswar has come of age on both infrastructure as well as manpower fronts. The city today boasts of four SEZs: the earliest one, the 350 acre Infocity is already full; the first phase of the DLF Infopark work is in progress, work is starting on an integrated IT park, known as Knowledge Park, while sanction has been given to the Mancheswara Industrial Estate (29 acres).

Manpower
Such little details prove that while the IT juggernaut is in motion, Bhubaneswar is totally conscious of the need to develop a social infrastructure conducive to fostering IT. That explains why the state ranks high in terms of providing manpower supply; that with forty-five engineering colleges and forty-three MCA colleges, it could do so, is a no-brainer. But, while earlier this supply was mainly migrating elsewhere, it is now getting populated in Bhubaneswar itself.

That fact that technical education is a major priority of the state government has definitely helped. While engineering colleges affiliated to nine of the universities in the state were earlier brought and standardized under the aegis of the Biju Patnaik University, the government is now setting up an IIIT, where it will start with an M Tech program in order to create a crop of new qualified faculty. Also on the anvil are plans to start NISER and a campus of IIT Kharagpur. The Vedanta Group and Sri Sri Ravishankara Vidya Mandir Trust are also setting up technical colleges in the city.

Others in the Game
While the larger companies in the city registered an overall growth of 58% in 2006-07, SMEs like JSS witnessed 120% growth. JSS Consultancy is a domestic BPO playerit handles Citibank for the entire eastern region, as well as other major clients like Tata Indicom, HSBC, Citi Financial, HDFC Standard Life, and Centurion Bank for Orissa.

Its not only about the local SMEs; domestic IT consumption is also on the rise in the city. Reasons are not too far to locate: while Orissa today boasts of steel plants like Jindal, Bhushan, and Neelachal, very soon it will also have Posco, Arcelor-Mittal, and Tata Steel, making it probably the global steel hub. Add to this, power plants like the Jindals and aluminum plants like NALCO, Hindalco, and Sterlite. Paradip Port and the airport in Bhubaneswar are being modernized while the East Coast HQ is finally coming up next month.

Rajesh Dora, MD, Printlink, one of Bhubaneswars largest resellers and SIs, agrees to this. He also informs that other than the steel sector, even the engineering colleges and institutions like OUAT and Institute of Physics are significant consumers of IT.

The Future Sunrise

The experts, too, have endorsed a bright future for Bhubaneswar. According to McKinsey, Orissas economy is poised to grow at 7.1% over the next 10-12 years, the highest in Eastern India. Morgan Stanley comments that Orissa shall emerge as a center for metals business in India and attract investments of up to $3040 bn over the next five years. Even if these predictions are partially met, the impact of IT would be enough to create waves in the Bay of Bengal. The CMIEs forecast that Orissa accounted for 15% of total investments in hand in the country in 2006, and the World Bank ranking Bhubaneswar 5th among cities in ease of doing business within India further endorses the seal of approval. An oft-neglected, but very crucial role in this IT growth of the city has been played by the government. While on the e-Governance front, the state has won awards for two consecutive years (for the Shishu locator program and the OCAC website), a proactive government with an urbane and suave CM at the helm has created a conducive environment for IT. The stability of the political regime too has helped. A confident Naveen Patnaik proudly proclaims, “Bhubaneswar, indeed, is the future sunrise of the IT industry.”

Following is an excerpt from a report in Hindu. (Thanks to Deba Nayak for the pointer.)

… the poor people of the mineral-rich tribal population dominated district of Keonjhar are gearing up to welcome the Mittals and the tribe.

In a dramatic development, Kendujhar Nagarik Manch, the five-year-old district citizens’ forum, in its meeting on Friday resolved to host a symposium at the district headquarter on the need for industrialisation on December 2 to deliberate its benefits for the people of the district. “About 300 people including politicians, opinion makers, academicians, social activists and media persons would be attending it,” forum secretary Mr.Himansu Kuanr told The Hindu.

Industrialisation “We would welcome industrialisation with value addition,” he stated and added that the steel giants like the Mittal would be using the latest technology that would ensure minimum pollution. Sloppy land would be acquired for setting up of the plants and the packages being offered would also benefit the land losers, he said.

Some political parties are misguiding the people by spreading mis-information on the projects and thereby arresting development of the region through industrialisation, the forum’s spokesperson felt.

Mr.Kuanr further pointed out that in the past four years, minerals worth about Rs.36, 000 crore have been exported from the district without rendering any direct benefit to the people of the district. “As Haryana farmers have been amply benefited by industrialisation in and around Delhi, the farmers of the district would be similarly be benefited from industrialisation,” he reasoned.

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.

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

At the CoreNet Global Summit that met in Atlanta last week, experts identified the up-and-coming cities that are expected to be the economic hubs of the future. In a session called, “Around the World in 90 Minutes,” panelists picked dozens of cities in Asia, Europe and the Americas that offer a business climate making them ripe for development by growing companies.

When selecting European locations for manufacturing centers or Business Process Outsourcing (BPO) offices, René Buck, President of Buck Consultants International, advises companies to look for three differentiators before citing a new European facility; talent, technology and connectivity. Buck said emerging business centers like Glasgow/Edinburgh, Scotland and Istanbul, Turkey are among Europe’s brightest future development stars. But he added that Sofia, Bulgaria is, “on the rise and will attract a lot of new companies.”

Dennis J. Meseroll, director of Tractus Asia Ltd., a location consulting firm, said companies should look to second and third tier cities that he calls “sleepers,” which include Chengdu, China, Orissa, India as well as Ho Chi Minh City/Hanoi, Vietnam.

Despite the attractiveness of exotic new Asian and Eastern European markets, Dennis Donovan, principal of Wadley-Donovan-Gutshaw Consulting, said North, Central and South America, “continues to be very strong,” for outsourced call centers and manufacturing centers. Donovan calls places ranging from Dickinson, North Dakota, to Hermosillo, Mexico to Santiago, Chile, among the hottest future investment hotspots in the Western Hemisphere. …

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

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

Tata Steel is likely to start the construction work of its greenfield steel project in Orissa within two months.

“We have got necessary clearances. Work to rehabilitate more than 1,200 families have been completed and now we are going to start the construction by the end of this year,” Tata Steel Kalinganagar project General Manager N A Ansari told PTI.

Tata Steel is seeking to increase the production of steel from 27 MT to 45 MT by 2015 and it will be achieved through greenfield projects, he said and pointed out, “Kalinganagar is the first such greenfield project undertaken by the company outside Jamshedpur.” Tata Steel is setting up a greenfield steel project in Kalinganagar, Orissa, to produce 6 MT of steel per annum and is investing Rs 18,000 crore in the project. The project is scheduled to be commissioned by mid-2009.

When asked whether there has been any delay in the project, he said, “We intend to go little faster, but there has been not much delay and these are usual things happens in any big project.

“We have already placed the order for more than Rs 5,800 crore worth of equipment and materials and all other things related to planning layout and estimates have already been done,” he said.

Speaking about the company’s investments in Orissa, he said, Orissa is one state where it has planned to invest more Rs 35,000 crore in various projects.

Pioneer reports that Ersama MLA and former Minister Damodar Rout on Sunday has initiated a joint political move in favour of the Posco project proposed near Paradip in his constituency.

Excerpts

“Under no particular party’s banner, political leaders met in Jagatsinghpur to chart out a strategy for a show of strength with a slogan Aage maati pare party, literally meaning land first, party later. Presiding over the meeting, Rout harped on the fact that 85 per cent people in Kujang tehsil, where the South Korean steel major wants to set up its greenfield project, were supporting the 12-million-tonne per annum plant. As they are not united, their voice is cowed down by a handful of agitators. Rout sought to prove the point that the anti-Posco brigade was a minority group making tall claims. It was decided to organise a mass meeting on Tuesday at Balitutha, which leaders cutting across party lines would address. Rout’s move follows Chief Minister Naveen Patnaik’s instructions to him to extend his support for the Posco project in his constituency.

Rout, in his turn, has asked the Jagatsinghpur district authorities to help in smooth conduct of the Tuesday meeting, to which Collector Pramod Kumar Mehrada and SP RP Singh have reportedly agreed.

More than 60 representatives from various political parties participated in the deliberations on Sunday. A few of them suggested to organise the mass meeting at a later stage, but Rout said, “Strike the iron when it is hot.”

A section of political observers, however, feels that there may be a scuffle between the anti- and pro-Posco supporters on the day”

Following is an excerpt from a report on this in Asian Age. Economic Times also reports on this.

India is set to become a potential goldmine as investment announcements surged to Rs 1,75,629 crores for the months of August and September 2007. The bulk of this will go to the petroleum sector, especially in states of Orissa and West Bengal, says the Assocham Eco Pulse Study.

The study on ‘Investment Announcements’ for August and September 2007 found that of the total investments announced, the petroleum sector attracted the maximum number of investment announcements, totaling to Rs 53,300 crores with Indian Oil Corporation (IOC) and the Reliance Group, planning to mop up Rs 43,500 crores and Rs 8,000 crores, respectively.

Orissa attracted investment plans of Rs 55,800 crores, especially in steel and oil refinery capacity reflecting the high investment spree by the companies in the core infrastructure sector.

… The AEP tracked investment announcements made by 70 companies in the Indian private sector during August-September 2007 with investments plans ranging between two to ten years across various sectors like petroleum, steel, hospitality, real estate.

With major public private partnership projects in line, West Bengal is ranked second by AEP as the Indian companies made investment announcements worth Rs 31,200 crores in last two months. The major investors in the state would be Jai Balaji Industries, a Kolkata based steel company that announced capital expenditure of Rs 16,000 crores followed by IOC with Rs 14,500 crores and DLF Rs 700 crores.

Mumbai continues to remain the most favoured location by the services-based companies, which announced Rs 8,500 crore capex plans in areas of hospitality, entertainment and IT. Pune attracted Rs 1,334 crores investments making Maharashtra rank third with Rs 9,834 crores after Orissa and West Bengal.

Update: Livemint has a more succinct report.

The court suggested that VAL’s holding company, Sterlite Industries (India) Ltd, file an affidavit with three undertakings:

• commit to pay Rs50 crore as a security deposit to the court;
• agree to pay 5% of the net profit accruing from all its mining activities or Rs10 crore, whichever was greater, towards tribal development and environmental safeguards; and
• present a report on employment opportunities that the project would generate.

Following is an excerpt from a Reuter’s report on this.

The Supreme Court set new conditions on Britain’s Vedanta Resources Plc and its Indian unit on Friday before allowing it to mine bauxite in sacred, forested hills in the east of the country.

Vedanta wants to dig open-cast mines in the Niyamgiri hills in Orissa to feed an alumina refinery it has already built in the area, as part of an $800 million project expected initially to produce 1 million tonnes of alumina per year.

At an earlier hearing, Vedanta had promised to invest 1.12 billion rupees ($28.4 million) to develop the poor region, but a three-judge bench said it wanted this commitment to be made by the firm’s Indian unit, Sterlite Industries Ltd.

“What is Vedanta?,” the bench said. “Vedanta is not listed in India. So let Sterlite give an undertaking.”

Thousands of tribal people say the mine will destroy hills they consider sacred, force them from their homes and destroy their livelihoods, which are based on farming millet, hunting and collecting fruits and spices from the forests.

Environmentalists say the open-cast mine would also wreck the rich biodiversity of the remote hills and disrupt key water sources that supply springs and streams in the area and feed two rivers that irrigate large areas of farmland.

The court asked Sterlite to pay five percent of its annual profits from mining throughout India to the state government to be ploughed into developing the region.

It also asked the company to deposit 500 million rupees ($12.7 million) with the state government, and specify how many local people would be employed in the project.

When Sterlite objected to the conditions, the court adjourned the case until the company made a formal response.

The state and central government both back the plan, as part of efforts to industrialise and exploit the mineral resources of underdeveloped eastern India.

The Environment Ministry told the Supreme Court earlier this month that the mining would only affect a marginal amount of forest land.

It also promised “special efforts” would be made to manage and conserve wildlife in the area, which is part of an elephant corridor, shelters leopards and is the only known home in Orissa of the rare golden gecko.

If the state government and central government back this plan then they should require this from all mining companies in India not just Sterlite. It would be an excellent move.

Daily Pioneer reporter Kahnu Nanda reports that situation is turning in favour of POSCO in the Kujang Block. The Article is reproduced below:

“Days after Chief Minister Naveen Patnaik asserted that the mega greenfield steel plant by South Korean steel major Posco will be established at Kujang and that construction work would start from April 1, 2008, Posco has reiterated its commitment to the project.

An overwhelming section of people living in the proposed project site areas, including representatives of several political parties, social activists and local senior citizens, are moving fast to garner support for the project’s implementation.

Reports indicate that several meetings and campaigning has been held in project site at village level in the past week in a bid to woo the locals in the project’s favour.

Different project sympathisers have been organising these pro-Posco meetings and Ersama MLA and former Minister Damodar Rout has proposed to organise a mass public meeting in Balitutha Hat on October 27 just at a stone’s throw distance from the project opponents’ road block over Balitutha Bridge since September 24.

Sources said that a pro- Posco meeting was organised under the leadership of former PS member Jiban Lal Behera and the meeting was attended by most of habitants and discussed the Posco issues at length.

The senior villagers, attending the meeting too opined setting up of the project and unanimously resolve requesting the Posco authorities to reopen its closed Kujang office immediately.

Meanwhile, Ranjan Das a social activist and native of Polang, an affected village for the project, arranged a meeting in village on Tuesday in a move to garner support for Posco.

The Chief Minister’s endeavours to have a dialogue with project opposition groups had described a salutary effort while the villagers emphasised that the Posco authorities need to directly interact with the affected people for land acquisitions, Askhya Das, a villager revealed.

The political atmosphere in the project sites of Gadakujang, Dhinkia, Nuagaon, Chatua, Balitutha and Bamadeipur villages saw a startling incident on Tuesday when one Dhruba Charana Muduli, a social activist had called an all party meeting in Gadakujanga to discuss the Posco stalemate.

The meeting was attended by most of the members of different political parties of the locality excluding Leftists.

In the meeting a decision was taken to form an all party co ordination committee taking members from different political parties to hold dialogue with the State Government, the district administration and the Posco authorities to sort out the project obstacles, informed a member of a major political party.

Meanwhile, sources said that a similar type of meeting had been organised in Govindpur village under the leadership of Nirvay Samantray and project sympathiser Tamil Pradhan had conducted a meting in his Nuagaon village on Wednesday.

However, reports said that most of Posco supported leaders at the proposed project site villages have been organising meetings and campaigning to bring a pro attitude since the Chief Minister and Posco agreed for the project inception last week.

Ersama legislator Damodar Rout ,who was keeping distance from Posco related issues earlier has started organising mass contact campaigning with a message against anti -Posco sentiments in project site villages.

However, Posco Pratirodh Sangram Samiti (PPSS) who is spearheading the anti-Posco movement since one year vowed to oppose the project tooth to nail and refused to act on the Chief Minister’s desire of a dialogue.

According to them the project would wipe out 11 villages and affect around 20,000 habitants therefore no industry should not be set up at the cost of agricultural lands that threatens to take away the livelihood of people.

Abhaya Sahoo, PPSS chairman slammed the State Government for being insensible towards the affected locals, and also threatened of not giving one inch of land for the Posco project. He blamed the local leaders for organising pro Posco meetings in their areas under the influence and getting financial supports from Posco.”

The following is extracted from an ndtvprofit.com report.

• The state government, Posco agreed to April 1 deadline as the date was significant for both Orissa and the steel major. It is observed as ‘Utkal Divas’ and also the anniversary of Posco, Lee said.
• During the discussion, Patnaik pointed out that 512 acres of government land had already been sanctioned to Posco, while 3,000 acres of forest land was cleared by the Forest Advisory Committee (FAC), official sources said.

  Posco required 4,004 acres near Paradip to set up its proposed 12 mtpa capacity steel mill which had been facing opposition from the local people. “Though land was ready for handover to Posco, this could not be done in the face of stiff opposition from the local people,” they said.

• Patnaik said the state government would complete hearing of all applications for Khandadhar mines in Sundargarh district by November, sources said.

  Orissa government had already recommended the name of the South Korean company for the Prospecting Licence (PL), they said.

• Patnaik urged Lee to immediately commence construction of transit accommodation for the displaced people and a training center for imparting technical education to local youths so that they could be provided with jobs in future.