Archive for the 'INVESTMENTS and INVESTMENT PLANS' Category

SAIL proposes a port in Odisha

Ports and waterways, Railways, SAIL 3 Comments »

Following is an excerpt from a report in Business Standard.

With expansion of its units in eastern India in pipelines, public sector steel major, SAIL today evinced keen interest in setting up a port in Orissa, official sources said.

A delegation of Steel Authority of India’s (SAIL) top executives today met chief secretary T K Mishra and other senior officers here to seek the state government’s assistance for the proposed port by the steel giant.

We have assured the SAIL officials of all help if they are keen for a port project," Chief Secretary T K Mishra told reporters, adding that the proposed port would help the public sector to transport coal for its requirement. The proposed port having a capacity of handling 20 million tonnes of cargo would be located anywhere in the state’s 480 KM coastline, Mishra said.
    
The state government had asked SAIL to find any of the 13 places already identified by the state’s transport and commerce department for setting up a port.

The interest in ports in Odisha is due to the mining belt and the related industrial belt in Jharkhand, Chhatisgarh, Odisha and West Bengal. These ports will help the growth of the coastal parts of Odisha. Odisha should leverage these ports to develop communication channles (especially railway lines such as Talcher-Bimlagarh, Khurda Balangir, Gopalpur-Rayagada, Chakulia-Buramara) as well as some logistics hubs in appropriate places in the western parts of Odisha such as Titlagarh and Jharsuguda.

55,000 crore NTPC plans for Odisha

Angul, Dhenkanal, NTPC, Sundergarh, Thermal Comments Off on 55,000 crore NTPC plans for Odisha

Following is an excerpt from a PTI report.

the state-run power major NTPC is set to pump in over Rs 55,000 crore for additional capacity generation of 9,320mw by setting up two new plants and expanding the existing Talcher plant.

"Over Rs 55,000 crore will be invested in Orissa for new projects at Dadripali in Sundargarh district and Gajmara in the Dhenkanal-Angul belt and to expand the Talcher plant," NTPC regional executive director for East & North IB Pandey told reporters here today.

While the Dadripali plant, to be built in three phases, would have a capacity of 4,800mw with six units, the 3,200mw Gajmara plant would be set up in two stages, he said, adding land for them are likely to be available in about six months.

 

Kalinganagar shaping up: Jajpur Cluster Development Limited in operation; Tata Steel townships taking shape

Jajpur, Jajpur Rd- Vyasanagar- Duburi- Kalinganagar, Mettalurgical Cluster - Jajpur (Kalinganagar), Steel, Tatas Comments Off on Kalinganagar shaping up: Jajpur Cluster Development Limited in operation; Tata Steel townships taking shape

The website of Jajpur Cluster Development Limited is http://www.jcdl.in/. As per the page http://www.jcdl.in/about.htm Kalinganagar Industries Association (KIA), an association of industries in the Kalinganagar Industrial Complex holds 51% equity capital in JCDL whereas the equity held by IDCO is 49%. The members of the KIA are:

1

M/s. TATA Steel

2

M/s. JINDAL Stainless

3

M/s. VISA Steel

4

M/s. Maithan Ispat Limited

5

M/s. Rohit Ferrotech

6

M/s. K.J. Ispat

7

M/s. Dinabandhu Steel & Power Ltd.

8

M/s. Pradhan Industries

9

M/s. MESCO

As per http://www.jcdl.in/app_proj.htm the following projects have been approved for implementation.

Sl. No.

Component

Approved Cost
(Rs. Crore)

1. Augmentation of water supply scheme  14.00
2. Strengthening and up-gradation of Old Military road 26.00
3 . Road development in Utility corridors 30.60
4 . Setting up of Central Tool Room 3.00
5. Up-gradation of power distribution infrastructure  4.50
6. Development of common facilities centre including Information & Communication infrastructure 2.50
 

TOTAL PROJECT COST

80.60

Tathya.in has a report on the Trijanga township buil by Tata Steel in this area. Following are some excerpts

Eco-friendly atmosphere, planned township, wide concrete roads, round the clock power supply, piped water supply, permanent eco-management and drainage system with lush greenery are something, which even some of the modern townships in the country do not have.

But the new township established by Tata Steel Paribar in Trijanga in Jajpur has all these facilities and much beyond. …

The Company apart from providing 0.1 acres of homestead land and Rs 2.5 lakhs for house construction to relocated families had several round of discussions with them while planning for their new home at Trijanga Rehabilitation Colony.

While It has provided all the basic amenities like water supply, electricity supply, ration, community space, grain storage facility, children’s recreation park, toilets, welfare office, balwadis, dispensary etc, the sprawling greenery that has come up in last two years is for one to see it to believe it.

The colourful houses with dish antennas besides concrete paved roads with avenue plantation and permanent drains shows the commitment of Tata Steel to usher in a better quality of life for the rehabilitated families in Trijanga.

16 km all weather motorable roads, 32km of drainage, solid waste and garbage management through dedicated agencies has been provided.

The Company has also provided sodium vapor halogen lamps for street lighting.

Tata Steel Parivar members are also now use safe portable drinking water from running taps and consume 500 watts per family electricity.

Youths of Parivar member use Community centre for recreational purposes provided by the Company.

Round the clock health care facility is being provided in Trijanga Rehabilitation Colony through a dispensary and 24 hours standby ambulance services.

All of this hard work of rehabilitated tribals in a better atmosphere has blossomed into emerging township where rural and Urban Odisha co-exist. …

Central government on the right track to give tribals their fair share

Central govt. schemes, Corporate Social Responsibility (CSR), INVESTMENTS and INVESTMENT PLANS, Mine royalty and cess, MINES and MINERALS, Mining royalty, Thermal, TRIBAL WELFARE Comments Off on Central government on the right track to give tribals their fair share

Following is an excerpt from a report in Telegraph.

… According to the draft bill, a mining company has to “allot free shares equal to twenty six per cent in the company… in case the holder of the lease (the land being taken over) is a company”. If the holder of the lease is a person, “an annuity equal to 26% of the profit after tax” has to be given as “annual compensation”.

The draft Mines and Minerals (Development & Regulation) Act, 2010, also proposes that the mining company has to provide employment and/or other assistance in accordance with the rehabilitation and resettlement policy of the state government concerned.

Government sources said they hoped the draft bill would address these issues through the “partnership” plan. “Their (tribals’) home is being taken away so how will they feel. The point is being driven home,” said an official with the mines ministry.

… The sources said the bill could come up before the cabinet for clearance in a few weeks.

The bill envisages the involvement of gram sabhas or district councils or panchayats — as the case may be — who would identify the families to be affected by mining projects, directly or indirectly, before the commencement of operations to “ensure appropriate benefits”.

“A mining welfare fund will be set up, funds from which will be only for tribal land,” sources in the government said. The plan is to create “model villages”, added an official.

The bill also proposes a mandatory Corporate Social Responsibility document to be attached to the mining plan. The document envisages a scheme for annual expenditure by the mining company on socio-economic activities in and around the mine area to facilitate self-employment opportunities.

P. Chidambaram’s home ministry, too, has come up with a plan to assuage tribal sentiments. It has proposed free power for villages within a certain radius of power plants. “People should not feel that the power generated from their land is benefiting only the rich in cities,” said a home ministry official.

…  Home ministry officials said the focus was now on “micro-management” to understand the problems of tribals. On April 30, MPs from 34 districts most affected by Maoist violence will be briefed by home ministry officials. “We can put things right in the bureaucracy, but it is the duty of MPs to go and talk to affected people,” said a source.

On policing, the ministry wants to deploy police personnel “sympathetic” to tribals.  …

Sister state relation between the state of Washington and Odisha is being pursued

INVESTMENTS and INVESTMENT PLANS Comments Off on Sister state relation between the state of Washington and Odisha is being pursued

Following is an from the site http://www.wasitrac.org/bm/about-us/index.shtml.

Our Mission

To facilitate in building bridges for Washington State and its citizens, with their counterparts in India; beginning with establishing a sister state relationship between Washington State and the State of Orissa in India.  Primary focus being, but not limited to, infrastructure development, renewable and clean energy, education and social services. We will engage by respecting the diversity in both cultures with the ultimate goal of delivering true value of bilateral relationship.

WASITRAC is registered in the State of Washington as a Non-Profit organization.

Following is from the site http://www.wasitrac.org/bm/about-us/india-trade-grows-fast-despite-global-recession.shtml.

WASITRAC, Orissa and Washington State

WASITRAC has been a strong advocate for the promotion of the Indian state of Orissa as a trade partner to the State of Washington. Besides having a second tier city as its capital, the State of Orissa has lots of advantages for the State of Washington for establishing a Sister-State  relationship with. Its geographical presence, its unexplored natural resources, very low cost of living, vast growth opportunities, a coastal line of 480 Kilometers and the deepest sea port in the nation at Dhamra, it is strategically located closest to the sea ports in the East Asian Countries (like China, South Korea, Vietnam and Japan) the Washington State have the sea trade with. It will also be a great opportunity for the Port of Seattle to explore the possibilities of establishing a sister port relationship with Dhamra or any other Ports. A joint collaboration for the Infrastructure developments along with the development of maritime activities and tourism along the Orissa Coast is also among the endless opportunities to be explored by the Washington State businesses.

Take for example the state of Orissa

Orissa is about to embark on an ambitious state-wide economic development program under the dynamic leadership of its Chief Minister Naveen Patnaik, one of the most progressive chief ministers in the nation. The State is perfectly positioned to benefit from a variety of on going and future infrastructure developments. Having one of the world’s deepest natural sea ports, 480 km of coastal line and being located roughly in the middle of the Indian Eastern seaboard and close to the East Asian nations of China, Japan and Korea whom the State of Washington already has a sea trade with, Orissa is poised to offer the best return on investment (ROI) of any industry or entity currently open to foreign investment.

Some of the investment opportunities include:

    * Architectural services
    * Infrastructure Developments (sea ports and air port development, Container Depots)
    * Telecommunications
    * Power supply and management
    * Sewer, water and garbage mgmt
    * Clean Energy technologies
    * Tourism & maritime activities
    * Chemicals & Fertilizers
    * Manufacturing: Food Processing; Packaging; Irrigation
    * Health care services: Hospitals, Pharmaceuticals
    * Educational Institutions Development

The WASITRAC team has two Odias who most likely are driving this initiative. Their bios are given in the page http://www.wasitrac.org/bm/bios/index.shtml.

Kudos to them for making this attempt. Lets help them in any way possible and hope that they are successful.

Proposed Gopalpur SEZ in Odisha – progress and hurdles

Berhampur- Gopalpur- Chhatrapur, Ganjam, SEZs, Tatas Comments Off on Proposed Gopalpur SEZ in Odisha – progress and hurdles

Following is an excerpt from a report in Business Standard. (Thanks to Future Berhampur for the pointer.)

… Though Tata Steel’s SEZ project was cleared by the Board of Approvals (BoA) under the Union commerce ministry, it is yet to be notified due to problems in possession of land.

“The land possession problems in Chamakahandi and Basanaputi villages will be sorted out very soon. Company authorities have agreed to undertake a fresh survey on the lands being left out in these villages, for the payment of compensation and taking physical possession”, said an official of Tata Steel.

Tata Steel had initially planned for establishment of a shore-based mega steel plant near Gopalpur and applied for about 3,700 acres of land . …

Meanwhile, the company expects to take physical possession of land for the Gopalpur SEZ very soon. “We have already deposited the amount for the land acquisition and hope to get physical possession very soon for construction of the boundary walls”, said S S Routray, senior manager (administration), Gopalpur SEZ project ofTata Steel.

A tripartite meeting was held between the villagers, company officials and the district administration for physical acquisition of around 51.502 acres of land in Chamakhandi village and around 25 acres in Basanaputi village.

This meeting had a very positive response, said Routray.

… Tata Steel, on the other hand intends to withdraw from the 206.685 acres of land at Kalipalli village and 691 acres of land at Paikapada. According to official sources, though the land at Paikapada was acquired, it was not handed over to the company.

Once the implementation of the SEZ project starts, Tata Steel will have 2792.659 acres in nine villages including Chamakhandi and Basanaputi villages in its possession, sources said.

More details on the proposed Kalinga port by Adani; How Odisha can leverage it?

Industrial houses, Jagatsinghpur, Khurda Rd - Balangir (under constr.), Paradeep port, Paradip - Jatadhari - Kujanga 1 Comment »

Following is an excerpt from dnaindia.com.

… The port may be called the Adani-Kalinga Port.

The group has been nurturing a desire to have a port on the eastern coast in addition to the existing one on the western coast. It will help consolidate this group’s position in the port and shipping business in India.

Moreover, any group that owns major ports on both the western and eastern coasts of India could be expected to play a major role in coastal shipping as well, for ferrying goods from one coast to another, thus reducing costs, time and the incidence of pilferage that plagues road transportation.

… The proposed outlay is around Rs 10,000 crore. According to current plans, this port is to have 16 berths, and will have a capacity of 100 million tonnes —- almost similar to the capacity planned for Mundra.

… The interest of the Adani group has been confirmed by Satyabrat Sahu, transport and commerce secretary of Orissa, who is on record stating, “The Adani Group has given this proposal to set up a port. The state government is examining the proposal.”

… According to senior people in both the Adani group as well as the Orissa government, the process of examination is almost complete, and two of three approvals required have been obtained.

The last one should be in hand in a few days.

Adani officials said the port could be developed in two phases near Paradip in Jagatsinghpur district, barely three km from Jatadhari Muhan, where Posco India plans to set up its own captive port.

The group plans to invest Rs 5,000 crore in each of the two phases. If all goes well, 12 of the 16 berths should be up and running by 2015-16.

According to current plans, the port will handle coal, iron ore, liquid and containerised cargo. It may be mentioned that the Adani group owns several coal mines in Indonesia. Some of this coal is already being imported into India through the Mundra port.

Similarly, the Adani-Kalinga port could be the entry point for coal imports on the eastern coast as well, to feed many of the power plans that are expected to come up south of the proposed Adani-Kalinga port.

Similarly, since the Adani group has already become India’s largest player in the edible oil market through Adani-Wilmar Ltd, and owns oil plantations in Malaysia, this port could also play a significant part in edible oil imports.

The Adanis have also shown an interest in mining projects.

What is not known at this stage is the amount of land that will be available to the port, since a successful port must have good draft (depth), lots of land for storing goods meant to be shipped, and for evacuation of cargo that arrives at the port and transportation linkages to the hinterland.

… Since the Adani group has offered to the state government that it will be willing to invest in road and railways networks in and around the port, such a move could help in the overall economic growth of the state itself.

Such efforts could be further buttressed by hectic lobbying by both the Posco management and the owners of Dhamra Port (jointly owned by Larsen & Toubro and the Tata Group) for improving rail and road linkages on the eastern coast in India.

As was the case with the Mundra Port, the Adani group also plans to invest in power projects near this port as well.

The Odisha government should propose that Adani fund a new railway line along the proposed highway between Bhubaneswa/Khurda to Paradip and also part of the Khurda-Balangir line. The advantage for Adani will be:

  • They will have a shorter path for their oil and other imports to be distributed in south India.
  • Similarly through the Khurda-Balangir route and with another short-cut from Balangir to Nawapara Rd (need to be constructed) they will have another quick access path to western and central India. 

(The above mentioned three segments are shown in brown below.)

This will be a win-win situation in that it will allow both Adani and Odisha government to industrialize the Khurda-Balangir corridor and the interior areas such as Nayagarh, Phulbani and Bouda. Unlike the Railway line via Talcher and Angul and the one via Paradip-Haridaspur-Jakhapura-Keonjhar, the Paradip-Khurda-Balangir path will have less traffic from other entities, including very little passenger traffic, making it faster for Adani to send goods that way. Since the Khurda-Balangir corridor lacks industries the government may find it easier to find land and local support for industries in that corridor. In that case, it can encourage Adani and others to set up some of their planned industries in that corridor.

All of the above assume that the above dnaindia.com report is correct in that Adani aims to import coal and oil through this port and not focus on exporting minerals from Odisha.

CIL, GAIL and RCF to come together to produce urea and ammonium nitrate at Tachler, Odisha reviving the FCI plant there

Angul, Anugul- Talcher - Saranga- Nalconagar, Business Standard, CIL, Coal, Fertilizers, RCF Comments Off on CIL, GAIL and RCF to come together to produce urea and ammonium nitrate at Tachler, Odisha reviving the FCI plant there

Following is an excerpt from a report in Business Standard.

Mining major Coal India (CIL), Gas Authority of India (GAIL) and Rashtriya Chemicals and Fertilizers (RCF) will come together to establish a project for producing urea and ammonium nitrate at Tachler, Orissa.

CIL has earmarked about 5.5 million tonnes of raw coal for the scheme, which once washed will come down to approximately 3.7 million tonnes of coal with less than 30 per cent ash content. Subsequently, GAIL is to gasify the fuel to produce urea and ammonium nitrate.

“The exact investment figures have not been fixed as the technology that will be utilised to produce urea and ammonium nitrate is still being studied. But an estimated few thousand crores are likely to be spent,” CIL chairman Partha S. Bhattacharyya said.

…“The joint venture (JV) has been mandated to produce a sizable amount of urea as well as 20-30 per cent of the annual ammonium nitrate requirement of CIL,” he added.

…  Moreover, the JV is expected to revive the Talcher unit of the Fertilizer Corporation of India (FCI), as the project is expected to undertaken there.

Apart from easy access to coal, the Talcher unit has other infrastructural advantages including a coal-gasification plant, a heavy water plant and an urea plant already in place.

 

NTPC plans 500MW wind and solar energy projects in Odisha

Angul, Hydro, Solar and other renewable, NTPC Comments Off on NTPC plans 500MW wind and solar energy projects in Odisha

Following is an excerpt from a cleantechnica.com report.

NTPC Ltd., formerly known as National Thermal Power Corporation, is planning to develop 500MW wind and solar energy projects in the Indian state of Orissa. NTPC is India’s largest power generation company and generates a big majority of power from coal-fired power plants. However, the company is now foraying into renewable energy and low carbon intensive generation technologies like hydro, nuclear and renewables.

The company recently signed a Memorandum of Understanding with the Orissa government in order to obtain approva for setting up the power plant. Orissa is a coastal state located in the south-eastern part of India. In addition to significant offshore wind resources, Orissa also blessed with substantial solar energy resource. The company has signed similar MoUs with the government agencies in Karnataka, Rajasthan, Gujarat and Andaman and Nicobar Islands, all highly potential areas on India’s energy map.

Jindal’s $10 billion plan for Odisha includes Coal to liquid plant and power plant

Angul, Anugul- Talcher - Saranga- Nalconagar, Coal, Coal to diesel, Jindal, Steel, Thermal, TOI, Economic Times 1 Comment »

Following is an excerpt from a report in Economic Times.

… "The state has received an investment proposal of Rs.101,100 crore (Rs.1 trillion/$22 billion) from Jindal Steel and Power. About $10 billion has been proposed for the new coal-to-liquid project," a senior official of the state steel and mines department said.

The project includes the coal-to-liquid plant, the thermal plant and a coal washery.

A coal block has already been allocated to the company in Angul district, over 160 km from here, by the central government. And the steel producer and power utility is now looking for about 2,000 hectares of land for the project, Naveen Jindal said.

"About three sites were being explored and the company prefers a location near the coal block," a senior company official said.

Also, Jindal is building a 12.5 million tonne steel plant, a 1,320 MW capacity power plant and an industrial complex in the same district. The company requires about 4,500 acres land for the steel and the power plant. "About 4,000 acres has already been acquired," the official said.

"The work on the steel and the power plant is going on and we hope to commission one part of the power plant and the steel plant by the end of this year," he said.

Amtek Metal & Mining Ltd (AMML) to set up a mega auto park with an associated two million tonne per annum (mtpa) integrated steel plant and 500 Mw power plant at Tangi in Cuttack district with an investment of 15820 crores

Auto, Bhubaneswar- Cuttack- Puri, Business Standard, Cuttack, MOUs, Steel, Steel ancilaries, Thermal Comments Off on Amtek Metal & Mining Ltd (AMML) to set up a mega auto park with an associated two million tonne per annum (mtpa) integrated steel plant and 500 Mw power plant at Tangi in Cuttack district with an investment of 15820 crores

Following is an excerpt from a report in Business Standard.

The Orissa government today signed a memorandum of understanding (MoU) with Amtek Metal & Mining Ltd (AMML), for setting up a mega auto park with an associated two million tonne per annum (mtpa) integrated steel plant and 500 Mw power plant at Tangi in Cuttack district.

The project envisaging an investment of Rs 15,820 crore, is expected to generate direct and indirect employment for 33,000 persons. Out of the total projected investment, Rs 2050 crore is proposed to be invested for mega auto park in phases.

While the total land requirement for the projects is estimated at 2500 acres, about 550 acres will be required for the mega auto park. … AMML’s project consists of ferrous foundry, steel forging plants, steel fabrication plant, open die forging plant, special fastener, aluminium die casting plant, alloy steel plant and ring gear blank plant among others. It would transfer the hot metal from blast furnace to auto park for production of auto components.

… “With the signing of the MoU, we expect greater interest from the national auto industry which will help create an auto hub in the state”, Patnaik remarked. Taori said, the company would adopt ITIs and the polytechnics in the state to impart skill training to the unemployed youth in Orissa.

Samaja’s Shilpayana Supplement: Getting approvals to set up industry in Odisha; SLSWC and HLC

High Level Committee, INDUSTRY and INFRASTRUCTURE, INVESTMENTS and INVESTMENT PLANS, Single Window Clearance (SLSWCA) Comments Off on Samaja’s Shilpayana Supplement: Getting approvals to set up industry in Odisha; SLSWC and HLC

Samaja’s Shilpayana Supplement: 146 proposals cleared by state level single window clearance (SLSWC)

INDUSTRY and INFRASTRUCTURE, INVESTMENTS and INVESTMENT PLANS, Single Window Clearance (SLSWCA) Comments Off on Samaja’s Shilpayana Supplement: 146 proposals cleared by state level single window clearance (SLSWC)

Zensar plans to make its proposed center in Bhubaneswar the second largest in the country; progress report on other IT companies coming to Bhubaneswar

Bhubaneswar- Cuttack- Puri, Genepact, ICICI, IT, Back office, BPO, Khordha, Mindtree 2 Comments »

Following is an excerpt from a report in Business Standard.

“Zensar has communicated that it is keen to start construction work on its development centre soon. The Orissa Industrial Infrastructure Development Corporation (Idco) has already given its in-principle approval to allot three acres of land to the software firm in the Infocity region of the city”, a top IT official told Business Standard.

Zensar Technologies plans to invest Rs 30-40 crore on its proposed software development centre. Initially, the centre would be run by a pool of 1,500 professionals but Zensar plans to make its Bhubaneswar centre the second biggest in the country after Pune where its centre is spread over 10 acres.

… Zensar has more than 4,000 employees in India and abroad. The company is rated among the top 25 software firms of the country by National Association of Software and Services Companies (Nasscom).

Meanwhile, other major IT investors have also renewed their commitment on their proposed projects in the city.

MindTree expects to kick off construction work on its Rs 200-crore development centre in the city by June this year. … its centre which would come up over 30 acres of land.

…  MindTree would initially recruit about 1,000 software professionals and eventually ramp up its headcount to 6000. Its development centre in Bhubaneswar will focus on R&D, consultancy and software development.

ICICI Bank, which had sought an extension of two years for its Rs 600-crore eastern regional hub, has been asked by the state IT department to start construction work by April.

ICICI bank’s eastern regional hub would have a built-up area of 1.5 million sq ft and it will have a pool of 15,000 employees in the long-run. The project is to be developed in phases over a period of six to seven years. Similarly, Genpact, which had announced a Global Delivery Centre in the city, has submitted a fresh building plan to the Bhubanewar Development Authority (BDA).

Genpact’s centre in the city will have a total built-up area of 7 lakh sq ft. Initially, Genpact would hire 500 people for running its operations and eventually, the headcount will be scaled up to 3,000.

Indocopter plans its 4th maintenance, repair and overhaul (MRO) centre in Bhubaneswar

Bhubaneswar- Cuttack- Puri, Hindu, Business line, INDUSTRY and INFRASTRUCTURE, INVESTMENTS and INVESTMENT PLANS, Khordha Comments Off on Indocopter plans its 4th maintenance, repair and overhaul (MRO) centre in Bhubaneswar

Following is an excerpt from a report in Hindu.

Indocopters, a Vectra Group company and distributor of Eurocopter in India, is planning to invest close to Rs. 150 crore in expanding its three maintenance, repair and overhaul centres located in New Delhi, Mumbai and Bangalore.

The company will set up another MRO centre at Bhubaneswar in Orissa during the second half of the current year …

Till September 2009, 32.6 per cent of investment proposals worth Rs 3.06 lakh crore have already been implemented in Odisha; this is better than other states: ASSOCHAM

Central public sector, Demanding equitable treatment, Investment ranking, TOI, Economic Times Comments Off on Till September 2009, 32.6 per cent of investment proposals worth Rs 3.06 lakh crore have already been implemented in Odisha; this is better than other states: ASSOCHAM

The above headlines is partly an excerpt from a Telegraph report. Following are excerpts from an Economic Times report by Nageswar Patnaik.

Orissa is currently implementing project proposals worth of Rs.3,06,575 crore, about 32.6% of total investment proposals received by the state government, which is higher compared to other states, according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Releasing a Paper titled ASSOCHAM Strategy : “Creating and Sustaining Growth Momentum in Orissa” here on Wednesday at a press conference here by Assocham President, Swati Piramal and Secretary General, D S Rawat, however, said at the end of September 2009, the state had 486 live investment projects worth Rs 9.4 lakh crore.

“This is 27% higher than the live investment reported as on September 2008”, Dr Piramal said adding that the respective shares of electricity, manufacturing, mining and services sector in total live investment are respectively 42.8%, 34.7, 56.6% and 6.3%.

… Explaining the reason for the state having more than 65% of investment proposals at announcement stages, the Paper clarifies that lower implementation rate of projects, of late, has become a phenomenon across states in India. “ …

According to the Paper, more than 10% of total investments

announced by both government and private sectors in India as on March 2009 have gone into Orissa. The state has attracted Rs 9,28,834 crore out of a total of Rs 88,71,867 crore announced in India. The state’s share was mere 0.87% in the total investment undertaken by different government sources. “In contrast, the share of Orissa was 13.29% in total investment made by the private sector in India. All most all of the investment that Orissa has seen has come from the private sector while government sources accounted for insignificant amount (Rs 500 crores out of Rs 9.28 lakh crores)”, it adds. .

The Assocham has emphasized on the need for infrastructure development in the state for faster pace of economic growth. “Good infrastructure facilities would not only reduce the transaction costs of the established economic agents but also make the State an attractive destination for new investments. The critical elements of infrastructure development in India are leveraging public resources to access a large pool of private resources and providing an environment that help take advantage of liberalized policies”, the Paper argues.

I have not been able to locate the report from the ASSOCHAM site. If anyone finds it please leave an URL in the comment. Besides the positive news in the above paragraphs, one issue to note is that Odisha is only getting 0.87% of the government investments. I wonder what the number would be if it is narrowed to central government investment. My guess is that the number would be similar. Odisha must make efforts to get its fair share with respect to central government investment, and not just in mining and metal sector. In that regard in http://www.orissalinks.com/orissagrowth/archives/3298 we listed the central PSUs in Odisha and India.

 


Business Standard focuses on a different aspect in the ASSOCHAM report. Following is an excerpt from the Business standard report.

 

Citing lack of new age industries in Orissa, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) today called upon the Orissa government to focus on the development of IT, real estate and service sectors.

It also laid emphasis on the development of human resources to bridge the skill gap and improve the employability of manpower in the state.

it strongly pitched for the development of infrastructure, focus on sunrise industries like pharmaceuticals, small and medium industries, adequate importance on climate change and global warming, removal of regional inequalities particularly in KBK districts and connecting the ports with the industrial corridors. Similarly, promotion of employment through cluster development, setting up of ancillary industries, linking industries to supply chain and creation of opportunities for self-employment need to be given priority. …

ASSOCHAM has suggested that the land acquisition need to be left to the buyers and sellers of land and the role of the state should be that of a facilitator only. The project proponents have a role to rehabilitate all those families being uprooted for a project.

On Orissa specific initiative, Rawat said, an Orissa Desk has been set up in Delhi to focus on the human resources development and the development of food processing industries. Berhampur University has been roped in as the partner for the purpose.

The desk is working on the growth of agriculture and food processing industries in the state and drafting Orissa Vision-2020 to provide a road map for the development of the state. An investment seminar called “Orissa Calling Investment”, is proposed to be held in Delhi in October this year to promote investment in the state, he pointed out.

 

State needs to contribute infrastructure for the proposed PCPIR in Paradip

CENTER & ODISHA, Chemicals, Jagatsinghpur, Paradip - Jatadhari - Kujanga, PCPIR, Petrochemicals Comments Off on State needs to contribute infrastructure for the proposed PCPIR in Paradip

Following is an excerpt from a report in Financial Express.

The state-owned Industrial Infrastructrue Development Corporation (IDCO) chairman-cum-managing director, Priyabrata Patnaik, told reporters that the Union secretary urged the state government to provide land, water linkage and power supply besides other required infrastructrue for the project.

The PCPIR project, which is going to spread over an area of 250 square kilometers at Paradip with the Indian Oil Corporation’s (IOC) oil refinery as anchor tenant, is expected to attract investment to the tune of Rs 2,75,000 crore.

The major chunk of investment, about Rs 23,000 crore, will come in petroleum and petro-chemical sector.

The project will generate employment opportunity for more than 2 lakh people when it is fully commissioned.

Following are some pointers on PCPIRs.

On Vedanta, Lanjigarh, Dongria Kondh and the international NGOs

Kalahandi, Vedanta Comments Off on On Vedanta, Lanjigarh, Dongria Kondh and the international NGOs

Following strong campaign by the NGOs the mainstream media is all over Vedanta on these issues. Some of their articles and points are available at the following web sites.

Following is Vedanta’s side of the story obtained from http://www.bignews.biz/?id=843650&keys=Vedanta-Amnesty-Lanjigarh-Dongaria.

Vedanta Alumina Refinery at Lanjigarh has been built with the state of the art technology and the first Alumina refinery in the country and among few in the world having successfully implemented Zero Discharge System. The environmental measures adopted in the plant with respect to Air and Water Pollution is among the best and performance of the same is being regularly monitored by State pollution Control Board (SPCB). Based on Vedanta’s commitment towards Environmental Protection and Socio-Economic Development of the area, SPCB has renewed its Consent to Operate for 2 years instead of normal 1 year i.e valid upto March 2011. Vedanta’s initiatives for Zero Discharge, Zero Waste and Zero Harm is appreciated at all level and Vedanta’s is committed to become the first Alumina Refinery in the world to achieve this goal very soon.

Today, water and energy consumption at VAL refinery is the lowest in the country and is a proof of Vedanta’s commitment towards environmental protection .The allegation made by Action Aid has already been checked by top world recognized institutions like Indian Institute of Science, Bangalore, National Geophysical Research Institute, Hyderabad, Indian Institute of Technology, Kharagpur and find no substance in to it.
Regarding leakage- during initial trial runs only in 2007-08, we would like to clarify that no caustic effluent was ever discharged in to the river. On investigation by SPCB and expert team mentioned above, it was established that there was small seepage from the joint between earthen dyke wall and overflow pipes in Red Mud Pond which was collected and recycled back within the bounded area of Red Mud Pond for which provision has been kept in the design of Red Mud Pond by Indian Institute of Science from the beginning.

Vedanta strongly denies any allegations of pollution of the environment in Lanjigarh and of violation of human rights. Vedanta remains fully committed to pursuing all its investments in a responsible manner, respecting the environment and human rights and adopting the best corporate social responsibility standards practices.

Vedanta sustainable development strategy, known as the ‘Vedanta Way’ is all encompassing and comprises the following four principal elements:
• Environmental Stewardship: Respect for nature, enhanced resource conservation and use of environment friendly technology are embodied in our working,
• Nurturing People: People are our key assets. We are committed to build a flexible, flat and learning organization with an engaged and high performing work force. We believe in nurturing and mentoring leaders from within and providing opportunities for growth based on meritocracy, performance and integrity,
• Health and Safety: We are committed to providing a safe, secure and healthy workplace for all employees by using the best technology and practices, and
• Empowering Communities: Communities are integral to our business. We are committed to enhancing the quality of life of the communities near our operations and creating self sustaining communities. We work to gain and nurture our social license to operate in the host communities.

It is only because of support from local community, Vedanta could establish an Alumina refinery after 25 years ( last Alumina Refinery was built and commissioned by NALCO in 1986) in a record time of less than 3 years. With the successful commissioning of proposed expansion of Alumina Refinery and Aluminium Smelter at various location , Vedanta will be the third largest Aluminium Producer in the world.,
Background:

Indian Constitution has made enough safeguard in terms of Act Like PESA, special provision in constitution under Schedule V to protect and ensure development of tribal community. The issues raised by Action Aid regarding Dongaria Kondh and Mining Project were brought before the Hon’ble Supreme Court of India in IA Nos 1324 and 1474 in W P (C) 202 of 1995 and IA Nos 2081-2082 @ W.P (c) No 549/2007 and a judgement in favour of the project was given.

Kalahandi is one of the most backward and underdeveloped area in the country and known worldwide for years for ill things like Poverty, Hunger, Malnutrition, Drought, Malarial deaths, Cholera and diarrhea ‘s death, low literacy, lack of education and medical facilities even though it is one of richest resource district of Orissa having precious stones, granite, bauxite, limestone etc. Since, implement any large-scale mining operation presents wider environmental and public administrative challenges, this project was initiated by the Indian authorities themselves, having identified this most backward area of India as in need of significant economic investment and social development, as well as the most suitable location for such activities. By way of background, India’s national planning authorities had identified a number of least developed districts of the country, of which Kalahandi is one, which were in need of substantial socio-economic investment. It must be appreciated that a majority of the population in the area where the project is situated lives below the poverty line.

OMC’s increasing profit and its contribution to Odisha’s coffer

MINES and MINERALS, Mining royalty, OMC Comments Off on OMC’s increasing profit and its contribution to Odisha’s coffer

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

The state owned Orissa Mining Corporation (OMC) today paid a dividend of Rs 250 crore to the Orissa government for the year 2008-09. …

OMC has been paying dividend continuously for last five years with the dividend increasing from Rs 60 crore in 2004-05 to Rs 200 crore in 2007-08.

…  OMC was able to prove its resilience with the highest turnover of Rs 2085 crore during the year.

The profit before tax (PBT) of OMC increased from Rs 528.04 crore to Rs 1890.22 crore in 2008-09.

Adani group’s port and industrial zone plan for Jagatsinghpur district

Business Standard, Coal, INVESTMENTS and INVESTMENT PLANS, Jagatsinghpur, Jatadhari port (POSCO), Paradeep port, Paradip - Jatadhari - Kujanga 3 Comments »

Update: Following are excerpts from another report in Business Standard which has some extra information.

The port project called Adani Kalinga Port is to be developed in two phases at a distance of three km from Jatadhari Muhan, the proposed site of Posco India’s captive port in the state’s Jagatsinghpur district.

… The proposed port which would have 12 berths in all will handle coal, iron ore, liquid and containerized cargo.

… Besides the port, the Group plans to invest in other sectors in the state like power plant, edible oils and mining.

 


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

Ahmadabad-based Adani Group is keen on setting up a large port in Orissa coast and developing an industrial zone, including a power plant, at mammoth investment of Rs 98,000 crore.

A company delegation led by its Managing Director Rajesh S Adani met Chief Minister Naveen Patnaik here and made a presentation in this regard.

The company informed the state that it was interested in setting up a 100 million tonne capacity port in Jagatsinghpur district, near Paradip Port and a proposed captive port by Posco.

With an initial investment of Rs 5,000 crore, the company has proposed to start the first phase of the Rs 10,000-crore port project in 2013-14 and complete it by 2015-16.

It also has plans to set up an industrial zone close to its proposed port in Jagatsinghpur an investment of Rs 88,000.

…The company plans to send coal after mining at Talcher area, to Gujarat and Maharashtra from the proposed port.

"The coal will be sent after washing. The washery reject coal will be utilised for the proposed power plant," a company official said. The proposed power plant would be a part of the industrial zone.

Update on progress on the IT front in Bhubaneswar; Mindtree to start construction in June; ICICI asked to start in April

Bhubaneswar- Cuttack- Puri, Business Standard, Genepact, ICICI, Khordha, Mindtree, Private Parks, State Bureaucrats (IAS, OAS, etc.) 2 Comments »

Following are excerpts from a report in Business Standard.

While MindTree expects to kick off construction work on its Rs 200-crore development centre in the city by June this year, ICICI Bank, which had sought an extension of two years for its Rs 600-crore eastern regional hub, has been asked by the state IT department to start construction work by April.

… MindTree, a global IT and R&D services company, co-headquartered in Bangalore and Somerset in New Jersey (US), had entered into an MoU with the Orissa government in March 2006 for setting up its software development centre spread over 30 acres.

…  MindTree would initially recruit about 1,000 software professionals and eventually ramp up its headcount to 6000. Its development centre in Bhubaneswar will focus on R&D, consultancy and software development.

ICICI bank’s eastern regional hub would have a built-up area of 1.5 million sq ft and it will have a pool of 15,000 employees in the long-run. The project is to be developed in phases over a period of six to seven years.

Genpact Limited, the BPO (business process outsourcing) arm of the US-based General Electric which had announced a Global Delivery Centre in the city has submitted a fresh building plan to the Bhubanewar Development Authority (BDA).

“We are pursuing Genpact’s case with the BDA to expedite the company’s project”, the official said.

Genpact’s centre in the city will have a total built-up area of 7 lakh sq ft. Initially, Genpact would hire 500 people for running its operations and eventually, the headcount will be scaled up to 3,000.

On Raheja Corporation’s IT park, he said, land has been alloted but the company is yet to take physical possession of it. Mumbai-based K Raheja Corporation proposed to set up an IT park in the city over an area of 30 acres at an investment of about Rs 250 crore. This IT park would have a total built-up area of 10 lakh sq ft and it was scheduled to be commissioned within three years. The project would generate employment for nearly 20,000 people.

K Raheja Corporation had signed a MoU (memorandum of understanding) with the Orissa government in May 2008 and the IT park was scheduled to be commissioned within three years.

 

Update on Aditya Birla group’s projects in Odisha

Aluminium, Bauxite, Birlas, Koraput, Koraput- Jeypore- Sunabedha- Damanjodi, Sambalpur, Sambaplur- Burla- Bargarh- Chipilima, TOI, Economic Times 2 Comments »

Following is an excerpt from a report in Economic Times.

Aditya Birla Group chairman, Mr Kumar Mangalam Birla is very hopeful of completion of the Rs 4,500-crore alumina refinery plant coming up at Kashipur in Koraput district and expansion of Hindalco aluminium smelter project at Hirakud in Sambalpur district

… In June last year, the Orissa government had recommended the union mining ministry to allot mining lease of Lakharis bauxite deposit in Koraput district in favour of Hindalco Industries Limited, the flagship company of Aditya Birla Group.

This is the second bauxite deposit to be allotted to the Group, which entered into a memorandum of understanding (MoU) with Orissa government in April, 2005 is to set up a world-class aluminium complex in the state.

Officials said the Lakharis mine is estimated to have about 45 million bauxite deposits.

Earlier, the Hindalco was allotted Kodingamali bauxite deposit in the district for its proposed aluminium complex at Kansari.

Aditya Aluminium (another unit of Hindalco) had signed a MoU with the Orissa government on April 8, 2005 to set up an integrated aluminium complex in the state. The project involves a total investment of Rs 11,500 crores for production of 1.5 lakh tones of alumina and 3.25 lakh tonnes of aluminium per annum.

Aditya Aluminium has already signed a joint venture umbrella agreement with the Orissa Mining Corporation for bauxite mining in Koraput district.

The company has sought 2012 acres of land for its refinery and 3331 acres for the smelter, sources said.

The state government is in the process of acquiring land for the project, but faces problem in some villages, the sources added resulting in the delay in grounding of the project.

Odisha signs MOUs for investment of 200846 Crores in 2009; Second behind Gujarat: Samaja

Investment ranking Comments Off on Odisha signs MOUs for investment of 200846 Crores in 2009; Second behind Gujarat: Samaja