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

GAIL India, the country’s largest transporter and marketer of gas, will diversify from its core business to invest in a fertiliser and chemical plant at Talcher in Orissa. The gas utility will form a joint venture with government-owned Rashtriya Chemicals and Fertilisers (RCF) to set up the Rs 2,400 crore plant which will have a capacity to produce 2,940 tonne per year of urea, GAIL, CMD, UD Choubey said.

An agreement between GAIL and RCF will be signed soon, Choubey said.

“The equity structure is yet to be worked out. RCF will carry out a feasibility study on the integrated fertiliser and chemical plant,” Choubey said.

The plant will be fed with 7 million cubic metres a day (mcmd) of gas produced through the surface coal gasification process for which Coal India (CIL) will supply around 5,000 tonne of coal.

“We are in constant touch with CIL. They have in-principle agreed to supply the coal,” Choubey said.

Explaining the rationale behind diversifying into fertilisers, Choubey said that the trigger for the move was that the company wanted to increase its presence in the gas business in east India. “We have always been supplying gas to fertiliser plants. This is just a move forward,” Choubey explained.

TCS has a software development center in Bhubaneswar. Following is an excerpt from a report in livemint regarding TCS’s plan to establish a training center in Bhubaneswar.

TCS has a training centre for science graduates at Chennai, where it plans to increase capacity to be able to train 3,000 at a time. Besides, it plans to open four more centres at Assam, Chandigarh, Gandhinagar and Bhubaneswar to have an additional capacity of up to 5,000 at an investment of Rs400 crore.

“Scaling up to 30,000 at 10 centres is not a problem for us,” said S. Ramadorai, chief executive officer and managing director, TCS.

TCS, which reported Rs5,640 crore in revenues in the September quarter, spends 2% of its revenue on employee training.

Rediff reports that the new SEZ policy has been announced by the Govt.

Excerpts”

The National Policy on Rehabilitation and Resettlement, 2007, which was cleared at a meeting of the Union Cabinet chaired by Prime Minister Manmohan Singh, provides for land-for-land compensation, besides preference to affected families for jobs in projects coming up on their plots.”“The new policy seeks to make those entitled for compensation stakeholders in development by allowing them to take up to 20 per cent of the amount in the form of shares if the acquiring entity is authorised to issue these instruments.

“With prior approval of the government, this proportion can be as high as 50 per cent of the rehabilitation grant and compensation amount,” the Rural Development Ministry said.

The policy discourages speculative transactions of land acquired for public purposes. As a relief for developers, 30 per cent land can be compulsorily acquired by states for the promoters while the rest has to be bought by them.”

Reliance has welcomed this policy. It remains to be seen what implications this has on POSCO which wants SEZ status for it’s project.

Following is an excerpt from a report in Economic Times:

ITC group on Tuesday expressed keen interest in making investments for setting up luxury hotels and food parks in Orissa, official sources said.

This was conveyed to the state government during a meeting ITC vice president Nazib Arif had with chief minister Naveen Patnaik here, the sources said, adding Patnaik promised necessary cooperation for the proposed ventures.

The proposed food parks would have facilities for setting up of processing units, sources said.

Ranchi express reports that TATA M.D. B. MuthuRaman claims that Orissa is the ideal destination of investment growth among mineral rich states. Excerpts:

” Pleased with the progress of the company’s Kalinganagar (Orissa) project- especially with the approach of the Navin Patnayak government towards industrial development- Tata Steel Managing Director (MD) B.Muthuraman on Wednesday declared the mine-rich State as an ideal destination for investment growth.

“Of the three states- Jharkhand, Orissa and Chattisgarh- where we have announced Geenfield projects, Orissa a doing very well in terms of industrial development. I see the State develop immensely in the next few years,” Muthuraman said at an informal gathering at Beldih Club here.

Tata Steel is setting up a 6-MT Greenfield project in Orissa, besides Korean Steel Giant Psoco and Arcelor-Mittal have also signed MoUs with Patnaik government for setting up a 12-MT Greenfield project each. Among the three, the Tata Steel project may complete early as the company has made much headway in its mission in the last few months.”

” Pleased with the progress of the company’s Kalinganagar (Orissa) project- especially with the approach of the Navin Patnayak government towards industrial development- Tata Steel Managing Director (MD) B.Muthuraman on Wednesday declared the mine-rich State as an ideal destination for investment growth.

“Of the three states- Jharkhand, Orissa and Chattisgarh- where we have announced Geenfield projects, Orissa a doing very well in terms of industrial development. I see the State develop immensely in the next few years,” Muthuraman said at an informal gathering at Beldih Club here.

Tata Steel is setting up a 6-MT Greenfield project in Orissa, besides Korean Steel Giant Psoco and Arcelor-Mittal have also signed MoUs with Patnaik government for setting up a 12-MT Greenfield project each. Among the three, the Tata Steel project may complete early as the company has made much headway in its mission in the last few months.” This is in contrast to TATA local head B.D. Panda’s opinion a few days back , that Orissa is notthe frontline state for investment and Bengal is a preferable option.

This could also be construed a favourable response after the NDTV report talking about TATAs sitting on most high quality iron ore in Orissa.

Also, since the news item was in Jharkhand we should look at this news from a competitive perspective.

Following is an excerpt from  a New Indian Express report.

At a public hearing at Badmal bazaar here on Thursday, Vedanta Alumina Limited (VAL) allayed fears of villagers regarding issues like pollution and periphery development after its proposed expansion.

… The villagers were told that a report will be submitted to the Central Pollution Control Board and Ministry of Environment and Forest for their nod. Villagers also raised apprehensions on jobs for locals.

In his reply, General Manager (PR & CSR), VAL Orissa Projects, Prashant Kumar Hota made a presentation on the state-of-the-art technology being used to prevent noise, water, air and hazardous waste pollution. Even fly-ash generated will be recycled.

Later talking to this paper, Hota informed that a mobile medical unit is catering to about 4500 patients. He said plans are on to construct a 50- bed hospital in one of the villages.

Following is an excerpt from a ndtvprofit.com report.

… According to sources the company is sitting on iron ore reserves of over 500-600 mt and that could be a reason why the state may not be keen to hand over more reserves to Tata Steel.

While this could trigger a fresh round of battle between Tata Steel and the Orissa government, the later is clear that it wants investments in the state for the reserves it will hand out.

Orissa wants Tata Steel to set up the promised greenfield project of six mt steel plant in Kalinganagar in order to reach Orissa’s target of 75 mt of steel capacity by 2020.

Tata Steel in return wants iron ore mines for plans not just in Orissa but also for expansion in Jharkhand aimed at 12 mt steel plant and Jamshedpur to be expanded to 10 mt from 5 mt currently. …

Following are excerpts from a news item in Tathya.in.

… the Bharati Shipyard Limited (BSL), a major private shipyard and the Apeejay Surendra Group, an industrial conglomerate have joined hands to set up the-State-of-the-art shipbuilding yard and ship repair yard project at Dhamra in Orissa.

The mega shipyard project will entail an investment of Rs.2200 crore in 3 phases.

Employment opportunities in this labor intensive industry will be 41,000 in the third phase, reveals the proposal submitted to the State Government.

… Revealing the strength of the state over others, the promoter said that easy availability of raw material like steel, availability of large number of skilled, unskilled man power and above all the proactive government policies dotted with positive environment for investors are creating conducive atmosphere for a mega shipyard in the state.

The requirement of steel in shipbuilding and repairing has been projected as in the first phase it will be up to 75,000 MT per annum, while in second phase it will go up to 2,30,000 MT.

In the final phase the steel requirement will go up to 4, 50,000 MT said the source.

… The proposed site has been identified near the Dhamra Port, where out of 1500 acres surveyed 1050 acre of land has been provisionally selected for the mega shipyard.

According to implementation schedule the promoters have decided to go for Memorandum of Understanding (MOU) with Government of Orissa in the month of October.

Once MOU in place than other activities will follow, said the source.

Rehabilitation Plan will be taken up in accordance with the present Rehabilitation and Resettlement Policy of the State Government.

… Milestones set up for the project envisages that Master Plan will be ready in the next year and construction of the shipyard will begin in mid of 2008.

The Joint venture promoters feel that the project will complete its first phase construction in early 2009 to begin commercial production by middle of the year.

Following is an excerpt from a report in Asian Age.

National Aluminium Company Ltd (Nalco) on Friday notched up the highest ever net profit of Rs 2,381 crores in 2006-07 compared to Rs 1,562 crores in the previous year, thus registering a growth of 52 per cent in the net profit.

The company at its 26th annual general meeting (AGM) held here to approve the accounts for 2006-07 said it also achieved the highest-ever sales turnover of Rs 6,515 crores as against the sales turnover of Rs 5,324 crores during the previous year registering a growth of 24 per cent in turnover. It also made an impressive record export earning of Rs 2,585 crores in the last fiscal.

The gross margin jumped by 40 per cent to Rs 3,942 crores in 2006-07 from Rs 2,811 crores in the previous year. Return on capital employed increased to 32 per cent against 25 per cent in the previous year. The earning per share increased to Rs 37 from Rs 24 in the previous year.

Following is an excerpt from an Economic Times report on this topic.

“The latest proposal came today from Kolkata-based Shyam-Century Group of Industries,” said Transport Secretary Priyabrata Patnaik here.

He said the company had proposed to develop a 14 million tonne cargo handling capacity all-weather port at Bali-Harichandi near Puri town and close to Chilika Lake.

The sources said, the company which presented its proposal before Chief Minister Naveen Patnaik and other senior officials, pointed out that it would develop the port with an investment of Rs 1900 crore.

In first phase, the company planned to start with 3 mt capacity and two berths for the purpose.

Orissa government, the sources said, asked the company to submit a detailed project report (DPR) on the proposed port.

Prior to this, a Hyderabad-based company has shown interest in setting up a port at Astarang near Konark in Puri district.

“The firm also submitted its preliminary report with the state government. Both the proposals will be processed before the government finally accepts their proposal,” said Transport Department Special Secretary P K Mishra.

In an editorial page article in Indian Express, Ila Patnaik says the following about Orissa.

We examine data on projects under implementation in various states in the CMIE Capex data base. We compare data for June 2007 with June 2002 to assess how a state has fared on investment compared to its previous performance. … Orissa is also a major gainer, particularly over the last five years. It went from rank 8 to rank 2 over the last five years. While the Indian average for projects under implementation on a per capita basis grew by 93 per cent, Orissa gained by 381 per cent over the last five years to reach Rs 61,811 of investment per capita.

The article also has the following table.

Update: The PIB http://pib.nic.in/release/release.asp?relid=33543 is a Rajya Sabha answer on this topic.

Following are excerpts from a Times of India report.

The Steel Authority of India (SAIL) on Wednesday unveiled plans to expand and modernise the Rourkela Steel Plant (RSP) with an investment of Rs 7,800 crore. RSP, which presently has a capacity of 2.2 million tonnes per annum, would be converted into a four MTPA facility by June, 2010. Its production would be further enhanced to eight MTPA by 2019-20, said company’s director (personnel and raw materials) G Ojha here. According to Ojha, RSP’s expansion is part of SAIL’s plan to invest Rs 49,000 crore in its different units and mines within the next three to three-and-half years. … Ojha said that post-expansion, SAIL’s production capacity would touch 26 MTPA of hot metal compared to its existing capacity of 14.6 MTPA. This would mean 23 MTPA of saleable steel," he informed. The company also intends to spend a substantial sum of money to improve its mining operations, including over Rs 1,100 crore in Orissa, he added. Regarding SAIL’s recent MoU with South Korean company Posco, the director said, "We want to indulge in exchange of technology and people. "We also plan collaboration in research and development activities and accordingly, an eight-member team, comprising four from each company, has been formed. This is just the beginning," he said. He allayed fears that the MoU could lead to SAIL’s privatisation and clarified that the pact was not legally enforceable and just an understanding for collaboration. … The SAIL director also reiterated the company’s interest to takeover the Neelachal Ispat Nigam Limited (NINL) in Orissa’s Jajpur district and said, IDBI, as an independent valuer, has already assessed the company’s worth. "In case the stakeholders (MMTC and Orissa government) have any reservations, then we are ready for further parleys. But, ideally, the valuers version should be honoured," he said.

The orissa.gov.in site has a page on PPP (private-public partnership) which contains the Orissa draft PPP policy and a list of projects in Orissa planned to be funded through PPP. Following are excerpts from a recent report in Telegraph.

The Orissa government is planning to invest Rs 125,000 crore in 36 infrastructure projects to be taken up under the private-public-partnership programme.

…Under the programme, the state government will leverage its financial resources with that of the Centre, to prepare a shelf of projects. These will be taken forward through a transparent selection process. There will also be viability gap funding, if the projects are initially loss-making.

The policy will also create Orissa Infrastructure Development Fund with a corpus of Rs 1,000 crore. Projects that are part of the programme include roads, bridges, ports and harbours, airports, airstrips, inland container depots, industrial parks, special economic zones and townships.

“We have already entered into agreements with IL&FS and PricewaterhouseCoopers, who will be the consultants for these projects. A few more will be empanelled soon,” said Parag Gupta, special secretary of the state secretariat’s public-private-partnership cell. …

Sources said IL&FS was picked as a consultant because of its joint venture with state-run Industrial Infrastructure Development Corporation for the Bhubaneswar Integrated Road Network project. PwC is also a consultant for several road projects. The state has also signed an agreement with the Infrastructure Development Finance Corporation (IDFC) in this regard. IDFC is funding some projects in association with Nabard.

“Two more consultants, including Ernst and Young and another Calcutta-based firm, will be enrolled soon,” the sources said.

The empanelled agencies will help identify projects that need to be taken up, prepare pre-feasibility and detailed project reports. They will then hand the reports over to respective departments.

Some of the projects being taken up are the Capital Region Ring Road, to span 98km, and the Bhubaneswar-Paradip Road, a 90km stretch. Each of the projects will cost around Rs 700 crore. They will be executed by the state public works department.

Other projects include sector-specific infotech SEZs, which will cost around Rs 352 crore and an IT & corporate tower in Bhubaneswar to be set up for Rs 146 crore.

Following is an excerpt from a Reuters report.

Officials in Orissa said on Thursday they had earmarked 7,000 acres of government and private land for a steel project proposed by Arcelor Mittal.

Last December, Arcelor Mittal, the world’s biggest steel maker, signed a multi-billion deal with the state government to build the 12 million tonne plant, and is also planning a similar sized steel unit in Jharkhand.

“We have cleared 7,000 acres of land for the steel project and captive power plant so that they can start work (aquiring land),” Orissa’s Industry Secretary Ashok Dalwai told Reuters.

He said most of the land was owned by the state but Arcelor Mittal would have to purchase some from farmers, a potentially controversial process the Orissa government would facilitate.

Hundreds of families are living on the state-owned land and would have to be moved.

The company still has to tie up a mining lease.

… The Arcelor Mittal project also includes a 750 MW power plant. The company had asked for 1,000 acres (400 hectares) on which to build homes for workers, in addition to 7,000 acres for the steel plant itself.

Supporters say the project would provide jobs for 5,500 people directly and another 15,000 indirectly.

In July, Arcelor Mittal Chief Executive Lakshmi Mittal had said that a detailed project report would be ready by mid-2008 and the first phase of the plant would be commissioned within four years of the report’s completion.

State officials said on Thursday the project would only get formal clearance once that report had been submitted.

Following are excerpts from a sify.com report.

State-owned Indian Oil Corporation (IOC) is setting up an oil refinery-cum-petrochemical complex at Paradip in Orissa, with an installed capacity of 15 million metric tonnes per annum (MMTPA) at an estimated cost of Rs 25,646 crore.

”The project is expected to be completed by October 2011,” Minister of State for Petroleum and Natural Gas Dinsha Patel said in a written reply to the Lok Sabha.

He said the land acquisition was carried out by Orissa Government by consent agreement under section 11(2) of the Land Acquisition Act, based on the compensation package for private land fixed by Orissa Government in October, 1999.

IOC has already acquired 3,347 acres of land for Paradip Refinery Project.

The progress made on the various phases of the project includes the construction of bridges over Santra Creek, approach road including railway over-bridge for the refinery connecting NH-5A to refinery site have been completed.

Tecnological selection for all major units has been completed.

Residential accommodation for construction phase, CISF colony, coastal approach road and green belt development are under various stages of construction.

Project Management Consultant (PMC) has been selected for Front End Engineering and Design (FEED) phase of the project on December 1, 2006.

Patel said the environmental clearance for the project has been received on July 6, 2007.

He added an amount of Rs 2281.87 crore has been sanctioned for Paradip Refinery project for carrying out pre-project activities, out of which, Rs 778.32 crore has been spent as on July 31, this year.

From Arcelor-Mittal’s actions I get the feeling that they are trying to bully the Orissa government. In comparison, Vedanta has been accommodative in its land requirements for the university. But may be the bullying strategy would work for them. However, they got to be careful; if local people get more mad, and the government gets fed up with their bullying then the whole thing may fall apart.

Following are excerpts from a report in domain-B.

The Larsen & Toubro Ltd (ECC division) consortium with Italy’s Paul Wurth has been awarded a Rs1,205-crore turnkey construction contract for Bhushan Steel’s 2.5 million TPA blast furnace at its Meramandali plant in Orissa. …

L&T’s share in this project is pegged at Rs760.5 crore from this order, scheduled for completion in April 2010.

Paul Wurth’s scope covers basic engineering, supply of proprietary and special equipment and technical supervisory services while L&T’s scope covers detail engineering, supply of indigenous mechanical, electrical and instrumentation works including complete site services involving civil structural and erection works.

The project is the consortium’s third successive order for the construction of large capacity blast furnaces in the last two years, which is presently executing the 2.5 million TPA (MTPA) blast furnace on turnkey basis for Tata Steel at Jamshedpur, currently nearing completion.

Recently, the consortium bagged another order from Tata Steel for the 3.2 MTPA blast furnace at its Kalinganagar Project. In addition, it also commenced work on the 2.5 MTPA blast furnace for the public sector Rashtriya Ispat Nigam Ltd, Vishakapatnam.

Following up on the report in our previous entry, another political party, albeit with a small presence in Orissa, has come out in support of POSCO. Following is an excerpt from Pioneer.

The Samajwadi Party has lent its support to the pro-Posco villagers in their bid to cooperate with the officials for land acquisition for the company’s steel project. The party’s State president Baisnab Charan Parida, in a statement, said adequate compensation to the evacuees and their proper rehabilitation, training to the local people for employment and a thorough discussion with the supporters and opponents of Posco on development of education, health and communication facilities in the peripheral area by the company official as well as the State Government should be taken up at the earliest.

In an era of globalisation, if a country hesitates to open up its economy and decry establishment of industries by multinationals, it would remain backward, he added.

POSCO has also come up with some novel opportunities for the displaced people. Following are excerpts from a Business Standard report.

Korean major considers offering locals an export market in addition to compensation.

Korean steel giant Posco is taking a novel route to persuade land-owners to sell their land in Orissa’s Jagatsinghpur district where its Rs 52,000 crore, 12 million tonne steel plant is to be located.

Apart from monetary compensation for the land, Posco is offering the 140-odd fishermen families that will be displaced by India’s largest greenfield steel plant an assured market for dried fish and mango pickle in South Korea.

The company, which has been facing stiff resistance from locals who will lose land to the project, proposes to train fishermen in the area to produce the dried fish coveted by Koreans, according to a Posco India spokesman.

“Around 160 families in the periphery have shown interest and will be included in the programme,” he said. He said some 160 families on the periphery of the project had accepted the proposal.

A similar programme is being planned for betel vine cultivators. “They have shown interest in fruit, especially mangoes. We will get pickle manufacturers to collaborate with them and export these products to South Korea,” he added.

A socio economic survey, which is still being conducted, indicates that there are around 50 betel vine owners and 1,000 cultivators for 1,200 betel vines. “Not just the owners, the cultivators will also be included in the programme,” he said.

The plan has been suggested as a solution to the vexed problem of compensating land-losers by offering them sustainable livelihood. At the same time, it will meet a growing demand for dried fish and pickle in Korea. According to reports, Korea’s imports are expected to exceed exports due to depletion of fish resources. Its pickle demand is primarily met by China.

…“The products developed by the fishermen and betel vine cultivators will be exported to Korea through Posco’s captive port. After meeting the demand in the Korean market, they can be exported to South East Asia,” the spokesman said.

Posco India is currently in the last leg of its land-acquisition programme. Of the required land of 4,004 acres, the Orissa government is to provide 3,566 acres (of which it is yet to get possession). The company will have to buy the remaining 438 acres of land directly from land-owners.

The rehabilitation & periphery development advisory committee (RPDAC) is expected to meet shortly to decide on the compensation package. The committee comprises representatives from the government, the company and the local people.

The private land covers three gram panchayats — Gada Kujanga, Muagaon and Dhinkia, the latter being the largest tract covering 200 acres and has been the most aggressive in leading an agitation against Posco’s steel plant.

However, the Posco spokesman said, things have improved and the survey indicated that around 90 per cent of the people wanted to shift to other means of livelihood.

Following is a report from Samaja on this. This is what more legislators of the area should be doing, but without fighting among themselves.

See http://tathya.in/story.asp?sno=1185.

In the following wikimapia map the location is either to the right or left of the spot labeled as "Patna."

Following are excerpts from a Telegraph report.

The Indian company, which became the sixth largest steel maker after buying Corus of the UK in January, plans to start construction work on its proposed 6-million-tonne integrated steel plant at Kalinganagar in November. …

Problems over land acquisition and mining leases have slowed progress on the Tata and Posco projects. Mittal’s Jharkhand project is facing the same predicament.

Tata Steel managing director B. Muthuraman, who met chief minister Naveen Patnaik in Bhubaneswar on Thursday evening, said the company had sought mining leases for iron ore and expected to get them soon. Corus chief executive officer Philippe Varin accompanied Muthuraman.

The challenge before Tata Steel is now to relocate the families living on the land where the plant will come up. So far 620 of 1,200 families have been shifted. Tata Steel will start construction once another 200 families are relocated.

Varin said Corus and Tata Steel would be working together to set up the Kalinganagar plant and the best technology would be used. The first phase would call for Rs 6,000-crore investment, while the total project would cost Rs 15,000 crore.

The company was allocated 2,000 acres for the plant at Kalinganagar. The Orissa government is to recommend Tata Steel’s case for a mining lease after 25 per cent of the order for the plant and machinery is placed. Sources said the company had started placing orders worth Rs 4,500 crore for a blast furnace, sinter plant and coke oven unit.

The company wants iron ore mining leases at Mankadanacha and Baliapal to be restored. They were scrapped after the company failed to set up a steel plant in Gopalpur in the nineties.

State steel and mines secretary U. P. Singh said the government would consider Tata Steel’s application for mining lease according to procedures. …

The Orissa plant is a building block for Tata Steel’s integration with Corus. It will make primary steel here which will be sent to Corus’s west European finishing mills.