___________

Following is an excerpt from a report in Telegraph.

The Centre has cleared Tisco’s proposal for establishment of a multi-product special economic zone (SEZ) at Gopalpur, Orissa steel and mines minister Raghunath Mohanty told the Assembly today.

… Mohanty said the civil construction work for the project was currently in progress at the proposed site. The work for the boundary wall and road project has already begun.

At the proposed SEZ site, Tisco will set up an industrial park. The company will invest Rs 1,000 crore in the park and set up a 4-lakh tonne per annum steel rebar mill, a 55,000 tonne ferro chrome plant and a 1.2-million gallon per day water desalination plant.

For the infrastructure development, Rs 5,000 crore will be invested. Once the park is developed, Rs 15,000 crore will be invested for the development of downstream industries. Mohanty said: “The park will invite investment in steel, accessories of motor vehicles, apparel, gems, jewellery, speciality chemicals and other technical areas.”

Following is from a report in Pioneer.

Chief Minister Naveen Patnaik on Friday laid the foundation-stone of the second-phase expansion of the Global Software Development Centre of TCS here at Kalinga Park Phase II.  …. The State Government, along with the Central Government, is setting up of an IT investment region in the State where IT and electronics hardware industry is an important component, he informed.

Patnaik said that to achieve the objective, industry-friendly ICT Policy-2011, IT Roadmap, Special Economic Zone (SEZ) Policy and IT Hardware Policy are being prepared to attract more IT industries to the State. The State’s IT export has crossed Rs 13,000 million during the year 2010-11 with direct employment of more than 10,000 persons.

… TCS Vice-President Projects B Sharma said that the second phase expansion is expected to be completed by March 2012, which would add 3,500 seats to the operation here. After the planned third phase, the total number of seats would be 11,000. The capital expenditure on different phases of expansion is estimated to be Rs 500 crore.

In 2006 I wrote a letter to the Tata’ on their 100+ years of exploitation of Odisha in terms of taking minerals at throw away prices from Odisha and doing major CSR and development outside Odisha and contributing very little to Odisha per say, but a lot to India though. Following is are excerpts from a news item in Financial Express. If what is mentioned there really happens Odisha will half forgive the Tatas.

Tata Motors is likely to set up an automobile unit at the Gopalpur SEZ Industrial Park, which has been developed by Tata Steel.

“Talks are going on with Tata Motors to set up an automobile unit at the Gopalpur SEZ in Orissa,” said a senior executive of Tata Steel.

He said Tata Steel  … plans to manufacture finished products for the automobile industry.

“Obviously we would like to have Tata Motors set up its unit at the Gopalpur SEZ Industrial Park,” the chief resident executive of Tata Steel in Orissa, Rajesh Chintak, told FE. He said that the proposed industrial park will have a separate zone for the automobile and the auto-component industry, adding that the park is now generating a lot of interest among investors.

Chintak also said that the company is now concentrating on developing the park. Once the infrastructure is ready a clear picture of the possible investments will emerge, he added.

The Orissa government, in fact, is lobbying with the Tatas to set up an automobile unit in the Gopalpur SEZ. Even when Tata Motors withdrew the Nano project from Singur, the Orissa government tried to convince the automobile company to relocate the unit in Gopalpur.

Tata Steel, which is developing the SEZ Industrial Park over an area of 3,700 acres is proposing to set up a ferro-alloys plant with a capacity of 50,000 tonnes and a 4-lakh tonne cold roll re-bar mill with an investment of R10,000 crore to R15,000 crore as anchor tenant.

The managing director of Tata Steel HM Nerurkar … said the Gopalpur Park has received SEZ status. He said that the construction work for the project would be started once the statutory clearances like the environmental clearance are obtained.

The managing director said the first phase of the Kalinga Nagar steel plant will be operational by January or February 2014.

Following is from a report in Business Standard.

The Orissa government has decided to undertake 14 projects on the Public Private Partnership (PPP) mode involving an expenditure of Rs 6,218.02 crore.

A total of 46 projects, to be taken up on the PPP mode, are under the consideration of the state government, A U Singhdeo, minister for Planning & Coordination said in the state assembly.

… The Infocity-II project, one of the major PPP projects, being planned over 600 acres of land at Janla on the outskirts of the city, has gathered some steam after being marred by inordinate delay.

As part of its commitment to expedite this project, the state government has set in motion the process to prepare Request for Qualification (RFQ) for this project.

"An empowered committee of the state industries department has been asked to oversee the bidding process of the Infocity-II project. The RFQ is currently being prepared. The land acquisition for the project has been already completed and environment clearance has been obtained. The state government has also submitted an application to the Government of India for Special Economic zone (SEZ) notification for the project,” the minister said.

The other notable projects in the information technology sector taken up on the PPP mode are Mindspace IT Park involving a cost of Rs 480 crore, the DLF Infopark project entailing an investment of around Rs 1,000 crore and an IT & Corporate Tower being taken up at Chandrasekharpur at a cost of Rs 140 crore.

In the tourism sector, the Empowered Committee on Infrastructure (ECI) has approved the revised Request for Proposal (RFP) for selecting the master developer for the Shmauka beach tourism project being taken up at a cost of Rs 3,500 crore on around 3,000 acres of land at Sipasarubali near Puri.

In the road transport sector, the High Level Clearance Authority of the state government has approved a proposal to seek Viability Gap Fund (VGF) assistance for the four-laning of the Sambalpur-Rourkela road involving a cost of Rs 1,483 crore.

For the Koira-Tensa-Lahunipara road in Keonjhar district, involving an implementation cost of Rs 392.2 crore, PricewaterhouseCoopers (PwC) has submitted a draft preliminary report. This project needs 38 per cent VGF as per the toll rates of National Highways Authority of India Ltd (NHAI).

Meanwhile, feasibility study is underway for three other road projects- Shaukati-Dubuna road in Keonjhar district, Tensa-Barsuan-Lahunipara road in Sundergarh district and Chorada-Duburi road in Dhenkanal  Jajpur.

Following is an excerpt from a report in Business Standard.

Under the proposed SEZ Policy, the state government shall not encourage SEZs based on mining and minerals like iron ore, chrome ore and bauxite. However, SEZs based on the use of intermediate products like alumina for smelting, primary metals for further processing on the value chain and rare minerals like tin, limenite, nickel, platinum and vanadium will be allowed.

Moreover, the state shall not encourage SEZs based on activities like mining that cause pollution. The Orissa State Pollution Control Board shall prepare a list of such industries and the same would be notified by the state government as a negative list.

The mineral based SEZs already approved shall undertake to develop and promote related downstream industrial complexes over a minimum area as prescribed by the Government of India. In the event of non-compliance of this condition, all state concessions shall be withdrawn.

The State Level Single Window Clearance Authority (SLSWCA) shall be the competent authority to screen and recommend SEZ proposals irrespective of the magnitude of investment.

All recommendations of SLSWCA would be placed before the High Level Clearance Authority for approval before making any recommendation to the Government of India.

The state government owned Industrial Promotion and Investment Corporation of Orissa Limited (Ipicol) would function as the state level nodal agency for receipt, scrutiny and placement of the applications before the SLSWCA.

For sector specific projects, the respective nodal agencies like the Orissa Computer Application Centre (OCAC), Industrial Infrastructure Corporation of Orissa Limited (Idco) and Agricultural Promotion and Investment Corporation of Orissa Limited (Apicol) will receive and scrutinize the applications.

As per the SEZ Policy of the state, the import of goods and services made to SEZ units located within the processing zone from the Domestic Tariff Area shall be exempted from Value Added Tax (VAT), entry tax, electricity duty and other cess payable on sales and transactions.

The SEZ Policy of the state has not envisaged any special provisions for backward districts like Kalahandi, Bolangir and Koraput and tribal dominated areas.

Till now, four SEZs have been notified in the state– the sector specific IT/ITes SEZ at Chandaka Industrial Estate in Bhubaneswar developed by Idco, sector specific SEZ for stainless steel and ancillary downstream industries at the Kalinga Nagar Industrial Complex being developed by JSL, aluminium and aluminium products SEZ at Lapanga near Sambalpur being developed by Hindalco Industries and another aluminium SEZ with Captive Power Plant being developed by Vedanta Aluminium Limited at Jharsuguda.

Some of the other Orissa related SEZs plans and approvals that are not mentioned in the above article are (see also http://www.orissalinks.com/orissagrowth/archives/1305):

• Recent approval of IT/ITES SEZ of Suryo Infra. in Bhubaneswar.
• Approval of Solar SEZ by Lanco Solar in Ramdaspur Cuttack.
• Proposal by Geetanjali gems and minerals.
• Work has started for theTATA SEZ in Gopalpur.
• POSCO SEZ in Paradip (Dec 2009: asked to file fresh proposal).
• Saraf Agencies SEZ for Titanium in Chhatrapur (Saraf pulls out; Odisha asks Russian company to speed-up; perhaps no longer an SEZ.)
• Wellspun garments SEZ in Choudwar: 200 acres (??)

Following is from the PIB http://pib.nic.in/release/release.asp?relid=65819.

The Board of Approval of the Special Economic Zones (SEZs) met here today to consider proposals for setting up of Special Economic Zones and also to approve other miscellaneous requests pertaining to SEZs.

Addressing the Board of Approval members, the Chairman informed that so far 577 formal approvals have been granted for setting up of SEZs out of which 363 have been notified. …

In this meeting, the Board recommended grant of Ten Formal Approvals and one In-Principal Approval.

· Formal Approvals:

… IT/ITES – M/s. Suryo Infra Projects Private Limited, Mouza – Tulasideipur, Chandaka, Bhubaneswar, Orissa.

(Thanks to Future Berhampur for the pointer.)

Following is an excerpt from a report in Business Standard.

… The SEZ will come up on 3585 acres of land acquired by Tata Steel. The company had acquired the land in mid 90s for setting up a steel plant. But with the project being shelved later, it had decided to use the land for setting up of a SEZ.

“Tata Steel has kicked off work on boundary wall construction and land leveling work in the first phase. The company has engaged 400 labourers for the SEZ work”, industries minister Raghunath Mohanty said in a written reply in the state legislative assembly.

About four km of boundary wall has been constructed and the work on remaining six km of boundary wall is underway.

“The company has taken possession of 2792.65 acres of private land and 792.64 acres of government land for the SEZ. It expects to complete boundary wall construction and land leveling work on the Gopalpur SEZ project by December 2010”, the minister added.

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.

Following is an excerpt from the PIB release http://pib.nic.in/release/release.asp?relid=51774.

The Board of Approval of the Special Economic Zones (SEZs) met today consider proposals for setting up of Special Economic Zones and also to approve other miscellaneous requests pertaining to SEZs.

            Addressing the Board of Approval members, the Chairman informed that so far 577 formal approvals have been granted for setting up of SEZs out of which 325 have been notified. He further informed that over Rs.1,16,879 crore have been invested in the Special Economic Zones during this short span of time and direct employment of the order of 4,27,908 persons has been generated in the Special Economic Zones.  During the first quarter of current financial year, total export of Rs.39,411 crore approx. has been made from SEZs.

            In this meeting, 7 proposals for setting up of SEZ were considered.  The Board recommended grant of two formal approvals and one In-Principle Approvals.

·                     Formal Approvals:

Ø                   IT/ITES/BPO/EH – M/s. Brooke Bond Real Estates Private Limited SEZ at Bangalore, Karnataka.

Ø                   EH/ITES – M/s. Karnataka State Electronics Development Corporation Ltd. at Shimoga, Karnataka.

·                     In-Principle Approval:

Ø                   Solar SEZ – M/s. Lanco Solar Pvt. Ltd. at village Ramdaspur, Cuttak District, Orissa.

 

…

Following is an excerpt from a report in http://www.mydigitalfc.com/companies/tatas-hire-singapore-firm-sez-273.

Tata Realty & Infrastr-ucture (TRIL), Tata Group’s real estate and infrastructure development arm, has hired Singapore-based Jurong International as the master planner for its special economic zone (SEZ) project in Gopalpur (Orissa).

“We have shortlisted Jurong for this important project,” said a Tata group official. Jurong offers design and build, consultancy, construction, and facilities management services and its India office is located in Hyderabad.
The multi-product SEZ, with all infrastructure facilities and required amenities, will cost the group nearly $ 1billion.
So far, Jurong has done master plans for 380,000 hectares, 10 million square meters of industrial land and 5.8 million square meters of residential space.

The SEZ in Gopalpur will focus on minerals, mining and associated industries. At present, Tata Steel possesses the land slotted for SEZ. In 1995, Tata Steel acquired the land for Rs 150 crore to set up a 2.5 million tonne per annum port-based steel plant in Orissa and spent. This plan had to be abandoned due to lack of amenities such as adequate water and iron ore linkages at the site. Now, Tata Steel is putting up a multi-million tonnes per annum steel plant at Kalinganagar in Orissa.

We plan to focus on industries that are downstream value-added in the metals and minerals space and allied industries such as gem and jewellery for the SEZ, which is planned to come up in 2,900 acres. The land is already in our possession and the necessary approvals are in place. So we expect that this development will not face any land acquisition related problems,” a TRIL official told Financial Chro-nicle.
“The positioning of the SEZ has been made keeping in mind the advantages of the local area and infrastructure such as a functioning port that’s capable of deep draught, an air strip and railway slidings that could be utilised by the industrial units in the zone,” added the official.

I hope this is for real and not because TATAs are due for some mining lease renewal. They have been accused of using such strategy with Orissa during mining lease renewal times.

Following is a one year old report from Steelguru on Gopalplur SEZ which I had missed.

TATA Steel has announced setting up of up a galvanizing and color coating line with a capacity of 150,000 tonnes at an investment of INR 250 crore at the special economic zone proposed by TATA Steel and notified by the Union government at Gopalpur.

Mr B Muthuraman MD of TATA Steel told media that “It would be a multi product SEZ and as a first step, TATA Steel had decided to set up the galvanizing line. TATA Steel was looking to rope in partners to develop the infrastructure for the project.”

He said “We are looking for partners who will promote infrastructure within the SEZ. It will be a multi product SEZ, and the project should take about 24 months to be implemented.”

Following is from a report in Steelguru.

BS reported that cargo handling capacity is projected to be 14 million tonne per annum from the 0.55 million tonne envisaged for the first phase. It will have 5 berths including one exclusive berth for aluminium by 2011 and 10 berths by 2016. Similarly, the number of ship calls per day is projected to increase to 1,451 by 2016 from about 333 likely to be achieved by 2011.

According to official sources, the company submitted the detailed project report for developing an all weather port at Gopalpur having direct berthing facility to the Orissa government recently. Though INR 20 crore was proposed to be invested by GPL in the first phase, it has already spent about INR 78 crore on making the port functional.

During the second phase, the port will have facilities to handle export cargo of ilmenite sand, iron ore, thermal coal, bauxite, granite, steel coil, aluminium ingots and import cargo of fertilisers, aluminium powder, coal, coke, rock phosphate and foodgrain.

As per report, cargo handling capacity is projected to be 5.6 million tonne in the first year of operations and increase to 8.9 million tonne in the second year. Similarly, it is projected to have a cargo handling capacity of 9.3 million tonne in the third year and 13.5 million tonne in the fourth year. The final cargo handling capacity of 14 million tonne is likely to be achieved by the fifth year of the commissioning of the port.

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

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

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

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

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

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

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

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

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

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

Following is an excerpt from a report in Pioneer.

The Gitanjali Group, one of the oldest leading names in gems and jewellery, has proposed to set up a Special Economic Zone (SEZ) in the State. The group’s infrastructure arm, Gitanjali Infratech Limited (GIL), has approached Chief Minister Naveen Patnaik to set up its eighth SEZ for gems and jewellery.

The company’s chief executive officer Ajit A Vaidya has requested the State Government to allocate land for the purpose. If allowed, it will be the first of its kind in the State, said an officer of the Industries Department. The Gitanjali Group is known for its jewellery brands, Nakshatra, Gili, Desire, Asmi, Sangini and D’dmas in both domestic and international markets. GIL’s existing seven SEZs are spread over Maharashtra, Andhra Pradesh and West Bengal.

While the gross size of the Indian gem and jewellery industry is 20,889.21 million dollars, the country’s jewellery manufacturing is currently only a fraction thereof.

This is predominantly due to lack of availability of organised infrastructure, structured manufacturing and exporting environment, said Vaidya.

Therefore, setting up of more SEZs for this sector would promote export of the Indian products, he said.

The gems and jewellery sector, which is labour-intensive, currently generates more than 3 million jobs with the setting up of SEZs.

As there are more than 2 lakh workers from Orissa engaged in the diamond cutting and polishing industry in Surat, this will help them find jobs in their homeland, feels a senior official.

The list from the article below are: (See also this and this.)

• POSCO SEZ in Paradeep: 4004 acres
• TATA SEZ in Gopalpur: 1173 acres
• Hindalco SEZ in Sambalpur: 855 acres
• Saraf Agencies SEZ for Titanium in Chhatrapur: 131.5 acres
• Wellspun garments SEZ in Choudwar: 200 acres
• Jindal SEZ in Choudwar: 400 acres
• Vedanta SEZ in Jharsuguda: 185.62 acres
• IDCO Knoweldge Park near Bhubaneswar: 600 acres
• Infocity in Bhubaneswar: 202 acres
• IDCO Mahakalpada area in Kendrapada district: 2700 acres

Following is an excerpt from a report in Pioneer.

Another SEZ (Special Economic Zone) is coming up in the State in the IT sector. Currently, the State has four SEZs in this sector.

It would be set up in 25 acres of land in Bhubaneswar on a Public -Private Partnership (PPP) mode. Electronic and Computer Software Export Promotion Council (ECS) and Larsen and Turbo (L&T) would provide the necessary support for establishment of the SEZ. Government will provide the land for this purpose. IT Minister Surjya Naryan Patro said … 1074 acres of land has earmarked for the development of IT services.

Till date Orissa has applied for 14 SEZs, of which 3 have been cleared, six given in principle clearance and five have received formal clearance from the Centre.

Meanwhile, the State Government has urged the Centre to sanction an Information Technology Investment Region (ITIR) to boost growth of IT and IT enabled services. The ITIR is being planned in the State will house space for hardware manufacturing units other than having provisions for new integrated townships, special economic zone and industrial parks.

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

Stainless steel could shine brighter in India as in their scramble for market share the steel makers want to locate users of steel next to their factories in special economic zones.

Jindal Stainless and Steel Authority of India have plans to capture customers right next to their stainless steel plants.

"We are setting up an SEZ next to our Orissa plant on a 300 acre land which will have shops, which use our steel for making products," pointed out Ratan Jindal, VC & MD, Jindal Stainless.

Following is from a report in New Indian Express.

The Rs 2,000-crore titanium plant to be established jointly by the Russian Federation and Kolkata-based Saraf Group at Chatrapur in Ganjam district would lay the base for development of the Special Economic Zone (SEZ).

The SEZ spanning over 600 acres would house beach sand mineral-based industries.

It would be spearheaded by the Russian and Indian partners and developed into an industrial hub as the flagship titanium project gets executed, said General Director of Technochim Holdings L N Bobkov here on Tuesday.

Plans are to pump in around 3 billion USD for development of the SEZ and the concept paper would be submitted to the Governments of India and Russia for consideration and approval.

The high-value applications of titanium as raw material would open a floodgate of opportunities for value-addition by downstream industries.

Units in the sectors of casting, titanium metal, magnesium, automotive and machine parts, electronics , computers and other manufacturing sectors, etc., can come up. The SEZ would also be open to other private players, the developers have said.

Following is an excerpt from a report in Economic Times.

… According to sources, the Haryana and Orissa governments have decided to put in place a policy making it mandatory for developers to employ a member from every family in a village affected by a SEZ project.

The Cabinet, in October, approved the National Policy on Rehabilitation & Resettlement, 2007, to replace the National Policy on Resettlement & Rehabilitation for Project-Affected Families, 2003. “The policy can incorporate minor changes, if needed, for the welfare of rural folk,” an official in the rural development ministry said.

A National Rehabilitation Commission would be set up by the Centre, which will be empowered to exercise independent oversight over the rehabilitation and resettlement of affected families.

To ensure transparency, there would be a provision for mandatory dissemination of information on displacement, rehabilitation and resettlement, with names of the affected persons and details of the rehabilitation packages. Such information would also be placed in the public domain by the gram panchayats.

People would, however, be given jobs according to their qualifications. The government is of the view that salaries should at least match what an individual was earning before being displaced.

“We are also in the process of setting up a mechanism through which the affected communities would be duly informed and consulted at each stage, including public hearings in the affected areas for social impact assessment,” the official said.

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 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.”

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”

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.