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Deepikaglobal reports that Hilton plans to open a Hilton Hotel and a Homewood Suites in Bhubaneswar. Bhubaneswar already has a Trident Hilton. Following is an excerpt from that report.

Speaking to mediapersons here today, DLF Home Developers Ltd Chief Financial Officer Surojit (Babu) Basak said, ”We plan to open two hotels under Hilton brands–Hilton Garden Inn, amid market segment hotel, and Homewood Suites, which are service apartments, entailing an investment of around Rs 500 crore. The hotels would have 600 rooms altogether. … The hotels would be operational in three years, he added.

The US-based Hilton Hotels is looking at ten-fold increase in the number of hotel property in India. Hilton Hotels would also open hotels in Delhi, Mysore, Bhubaneswar, Bangalore, Hyderabad, Goa and Kolkata. Homewood Suites, the longstay brand in Hilton’s portfolio, would debut at Kolkata, Bhubaneswar and Hyderabad.

A 3 week old Business standard article talks about the mall, multiplex and real estate scenario of Bhubaneswar. Following are some excerpts from that article.

Abhijit Das, regional director at property consultants Trammell Crow Meghraj, informs that there are 4-5 malls being planned in the city, most of them in the newly developing Chandrashekharpur area. ….

Looking at the maturing consumer, Saraf is planning a 5,00,000 sq ft mall on 5.5 acres of land which in all probability will include the city’s first multiplex, a large plaza and a 100-room, three-star hotel on top. …

Another retail mall project, also on the larger side, is the 6,00,000 sq ft Junction Mall from Bengal Shrachi Housing Development (another Kolkata-based company), coming up in the Jaidev Vihar area en route to Infosys City.

The company’s MD, Rahul Todi, says this will be the city’s first organised retail destination. Set to cost around Rs 120 crore, it will launch later this year (October-November). South Africa’s Bentel will be the architects on this project, and it will boast of a two-level car parking in the basement. …

There is quite a bit of short supply in the quality residential segment in Bhubaneswar, according to Anup Mohapatra, president, Real Estate Developers Association (REDA).

He points out that over the last two years, rates in the city have increased at least four-fold. There is demand for high-end residential property in the city, most of which is coming up towards the new IT developments taking place near Chandrashekharpur. If, for instance, the demand today is for 100 homes, the supply is lagging far behind at only 10-12 at the moment, he says.

For some Kolkata-based companies, Bhubaneswar is almost like an extension of their home ground and makes an attractive investment alternative. No wonder that apart from just malls, Todi is also planning to launch a high-rise, high-end residential project with 550-600 apartments spread over 14 acres. Situated on the Cuttack-Bhubaneswar National Highway, Neo City will have a club, swimming pool, and other lifestyle amenities.

The Sureka Group, which bought a 10-acre plot in Bhubaneswar recently, is also looking at a high-end residential development. Its MD, Pradeep Surekha, informs that the company is trying to procure more land at the same place.

We are looking at a total of 20 acres for the Rs 400 crore residential project, he confirms. He is also eyeing the growing organised retail demand in the city. The Surekha Group is planning a 5,00,000-6,00,000 sq ft mall but if it gets suitable land at the right place (at least 10 acres), a mall might be developed on 1 million sq ft space. Such is the scope for retail in the city, he explains.

Many may not know that to the west of Bhubaneswar lies the Chandaka widlife sanctuary with varieties of flora and fauna. This sanctuary is considered as the lungs of Bhubaneswar. Today’s New Indian Express has an article about this. Following are some excerpts.

The sanctuary is perhaps among the few in the country which boasts of a treasure trove of flora and fauna excepting the royal Bengal tiger. The coastal range of sal forests also end here with an intimate mix of evergreen and deciduous elements.

According to divisional forest officer (DFO) Akshaya Kumar Pattanaik, though elephant is the flagship species, two types of monkeys, three deer species and three other herbivores, nine types of carnivores including the panther, two types of civets, tree shrew and pangolins are spotted.

Also the sanctuary is home to 21 types of snakes, 16 lizards, one species of turtle and marsh crocodile. The avian types include 174 with 10 species of water fowl and waders, seven ground nesters, seven raptors and 17 song birds.

The elephant population (65 in 2006 census) is seen in group sizes of 18, 13, 8, 7, 5 and 4. Even joining of three or four family groups were also observed aggregating to a herd size of 38 at Bharatpur in the past.

Orissa tourism has a nice page on Chandaka. Following is a map of Chandaka from that site.

Myiris reports that the Mumbai Based company HCC has reported receiving a letter of acceptance from TISCO. Following is an excerpt from their report.

Mumbai-based Hindustan Construction Company (HCC) said Thursday that it received a letter of acceptance (LoA) from The Tata Iron & Steel company, Jamshedpur, for execution of civil works for Kalinganagar project in Orissa. The value of the contract is Rs 1,677.6 million.

• Balasore and Baripada lobbying for medical colleges
• One year P.G. Diploma in Banking and Insurance Management: From Utkal University in collaboration with ICICI bank
• Careerpoint claims that 21 out of 55 succeeded in IIT JEE
• A pre-advertisement from Sri Sri University
• Chennai Business School forays into Bhubaneswar
• Sri Sri University project: a powerpoint presentation
• Latest status of WODC related private medical college in Rourkela
• Ads for IIT JEE, AIEEE, Orissa JEE and Medical coaching classes
• Plus two options in Berhampur
• Telegraph writes about progress and obstacles in making the Capital Hospital a medical college
• PM: Each state will have a central university
• Bhubaneswar based Institute of Medical Sciences and Sum Hospital get nod for MBBS programme from 2007-08
• Tathya.in has a hard hitting article on the IIT issue that blames the Congress leaders for their ineptitude
• Cabinet approves new scholarship scheme for tribals

The Economic Times reports the allocation of coal blocks in Orissa to various power generation companies across the country. Following is an excerpt from that report.

The Damodar Valley Corporation (DVC) has been allocated Saharpur Jamarpani block having 600 MT reserves in Jharkhand and two blocks in Manoharpur with 531 MT in Orissa for the Orissa Power Generation Company (OPGENCO).

The Naini coal block in Orissa (500 MT) has been allocated to Gujarat Mineral Development Corporation and Pondicherry Industrial Promotion and Development Corporation, the official said.

Moreover, two blocks at Chandipara in Orissa (1,589 MT) has been allocated to Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd, CMDC and Maharashtra State Power Generation Company, the official said.

He said the Baitarani West block in Orissa (602 MT) has been allocated to GPCL, OHPGCL and KSEB while Mandakini B block also in Orissa (1,200 MT) has been allocated to Tamil Nadu Electricity Board, Assam Mineral Development Corporation, Meghalaya Mineral Development Corporation and Orissa Mining Corporation Ltd.

The above allocation is done by the Coal ministry in Delhi. Although the coal mining will add to Orissa’s revenue through royalty, a big concern is the low rate of royalty fixed by the center which also does not change as often as it should. Some reports on this were published in Financial Express and other papers. Following is Orissa government’s stand on this issue and the issue of compensation on thermal power generation.

Revision of rates of royalty on coal and other Major Minerals on Ad valorem basis.

Orissa is a mineral rich State, but it does not get non-tax revenue in shape of royalty from such major minerals in the State to the desired extent as the rates of royalty are not being revised in time. The 12th Finance Commission have recommended that the rate of royalty should be revised on ad valorem basis. But the Government of India has not yet done it. In the past, the rate of royalty on coal and other minerals was revised on expiry of more than 5 to 7 years though the rule stipulates that there should be revision after expiry of 3 years. The delay in the revision of the rate of royalty in coal and other major minerals has caused a loss of Rs.150.00 crore per annum. The State has suggested royalty on ad valorem basis.

Compensation on Thermal Power Generation.

Orissa has a vast coal deposit. Orissa is a power surplus State and it exports power to other States. Since, electricity duty can be charged on consumption only, the importing state benefits while the exporting state has to bear the negative externality such as environmental degradation due to mining etc. This tantamounts to transfer of resources from the producer state without any compensation for the huge negative externality as well as depletion of its natural resources. If 1000 MW power is generated in Orissa and evacuated, the importing State gets electricity duty to the extent of Rs.100 crores, while the State in which the power is produced does not get anything. This situation has to be altered by either allowing the State to levy duty on generation or else mandate that a percentage of power generated should be given free of cost to the State by the Central Public Sector generating companies as is the case in Hydro Power Generation.

Various newspapers (Telegraph, Financial Express) report that the Cabana group has announced a hotel and a management institute in Bhubaneswar and plans to open many hotels in various locations in Orissa. Following is an excerpt from Telegraph.

Co-chairman of Cabana Hotel Management Private Limited and venture capitalist, Prabhu Goel, said the institute will be the group’s first training venture anywhere in the world. “Since the industry demand is huge, we hope that all students will be absorbed after training,” Goel added.

The institute, for which the government has allotted a seven-acre plot near Dumduma, will have hostels for 1,500 students, classrooms, labs, kitchens, along with a an attached 200-bed hotel. The group will represent Best Western brand in India, provide hotel management services and consultancy, he said.

Over the next 10 years, the group intends to add more than 100 hotels and 10,000 rooms to the growing Indian hospitality market. “We have visited places like Chilika, Puri, Konark and Paradip. We are interested to set up hotels there. We have plans to invest around Rs 350 crores in developing properties in the state,” said Goel.

Orissawatch.org is where we started from and focused on human resource development and education. We continue to be active that site. Once in a while we will do a round-up of important postings in that site here. Following is the first such round up.

• RFPs for the AIIMS like institute in Bhubaneswar and other places
• Tenders related to NISER Bhubaneswar
• NISER Bhubaneswar brochure and application form
• List of engineering colleges in Orissa
• List of management institutions in Orissa
• List of universities in Orissa
• List of research institutions in Orissa
• Coaching Schools in Bhubaneswar
• XIM plans to roll out new courses in econometrics, financial modelling and regulatory finance.
• Post Class X ads (junior colleges; plus 2 science; plus 2 commerce)

NDTV reports that the Gopalpur SEZ has been cleared by the Central Govt.

There was a lot of hue and cry that why the Gopalpur SEZ was not moving further in Orissa. Recent events show that it was held up due to security clearances which was required. Hopefully this will ensure faster development in Orissa.

TOI reports that POSCO has become operational with it’s new FINEX technology in a steel plant in South Korea. The same FINEX technology will be used in the Orissa steel plant. This is particularly relevant for high Alumina grade Ores found in Orissa. The new steel plant in South Korea will improve the output of POSCO by 11%.

Other papers which reported the same news were Statesman,Financial Express and Reuters India. Brunei times provides a different analysis to the same story also.

Tyre and Accessories reports the Applo Tyres group plans to invest Rs 4,000 million in expanding health care venture. At present the company is looking at a number of prospective cities including locations in Jaipur, Chandigarh, Ludhiana, Vadodara, Coimbatore, and Bhubaneswar.

Economic times reported that Tata’s proposed multi-product special economic zone (SEZ) in Gopalpur is finally set to get the green signal from the government.

Samaja reports that Paradeep oil refinery would function from October 2011.

However, there were many such announcements published earlier. Every time a new date is fixed. The project is already shifted 5 years from the actual schedule.

The completion of the (a) Kurdha Rd – Balangir new line, (b) Lanjigarh Rd – Junagarh new line, (c) broad gauge conversion of Naupada Rd and Gunupur and (d) the completion of the Gunupur-Theruvali line will have the following benefits. [Among these, with the current funding level (b) and (c) will be completed in a couple of years. What is needed is a big push to complete (a) and (d) in the next 3-4 years.]

1. Parlakhemundi, the district headquarter of Gajapati will be on Broad gauge rail and will be 305 kms from Bhubaneswar (the state capital). [c]
2. Sonepur, the district HQ of Sonepur district will be on Broad gauge rail and will be 259 kms from Bhubaneswar (the state capital). [a]
3. Boudh, the district HQ of Boudha district will be on Broad gauge and will be 217 kms from Bhubaneswar (the state capital).[a]
4. Nayagarha, the district HQ of Nayagarha district will be on Broad gauge and will be 84 kms from Bhubaneswar (the state capital). [a]
5. Bhawanipatna, the district HQ of Kalahandi district will be on Broad gauge and will be 450 kms from Bhubaneswar via Balangir [a,b] and 504 kms from Bhubaneswar (the state capital) via Gunupur. [b,c,d]
6. Balangir, the district HQ of Balangir district will now be 309 kms from Bhubaneswar instead of the earlier 397 kms. [a]
7. Nawapara Rd, near the district HQ of Nawapara district will now be 459 kms from Bhubaneswar instead of the earlier 547 kms. [a]
8. Rayagada, the district HQ of Rayagada district will now be 419 kms from Bhubaneswar instead of the earlier 502 kms. [c,d]
9. Koraput, the district HQ of Koraput district will now be 573 kms from Bhubaneswar instead of the earlier 676 kms. [c,d]
10. Titlagarh, a major junction will now be 373 kms from Bhubaneswar instead of the earlier 461 kms. [a]

Thus these four lines will connect 5 new district HQs to the broad gauge railways and will significantly reduce the distance between 4 other district HQs and the state capital. That is 8 district HQs would be within half-a-day intercity distance away from the state capital and the 9th one (Koraput) will be within a overnight ride from the state capital. Thus intercity trains between (i) Bhuabneswar and Nawapara Rd (ii) Bhubaneswar and Bhawanipatna and (iii) Bhubaneswar and Rayagada will completely change the psychology of people in districts such as Kalahandi, Rayagada and Nawapara and feel them more connected with the rest of the state. (Currently 2893 leaves Bhubaneswar at 5:45 AM and reaches Balangir at 1:20 PM. Within the same time, with the shortened route it can easily go up to Titlagarh junction and with a little speed up this train will be able to go up to Bhawanipatna or Nawapara Rd.) Similarly a shorter overnight train between Jeypore and Bhubaneswar will make people in Koraput district feel much closer to the rest of the state. (Currently 8448 leaves Koraput at 6:25 PM and reaches Bhubaneswar at 8:30 AM next morning. With a shorter route a train can leave Koraput at 8:30 PM and make it to Bhubaneswar by 8:30 AM next morning.)

Two further extensions of Junagarh-Nawarangpur and Jeypore-Malkangiri will bring two other KBK district HQs to be connected to the broad gauge railways.

Following explains the calculations [orissalinks] :

1. Parlakhemundi-Naupada Rd is 40 kms and Naupada Rd to Bhubaneswar is 265 kms.
2. Sonepur to Khurda Rd is 240 kms and Khurda Rd to Bhubaneswar is 19 kms.
3. Boudha to Khurda Rd is 198 kms and Khurda Rd to Bhubaneswar is 19 kms.
4. Nayagarh to Khurda Rd is 65 kms and Khurda Rd to Bhubaneswar is 19 kms.
5. Bhawanipatna to Lanjiharh Rd is 30 kms, Lanjigarh Rd to Titlagarh is 47 kms, Titlagarh to Balangir is 64 kms, Balangir to Khurda Rd is 290 kms and Khurda Rd to Bhubaneswar is 19 kms. Lanjigarh Rd to Theruvali is 74 kms, Theruvali to Gunupur is estimated to be 45 kms, Gunupur to Naupada rd is 90 kms, and Naupada Rd to Bhubaneswar is 265 kms.
6. Balangir to Khurda Rd is 290 kms and Khurda Rd to Bhubaneswar is 19 kms. Balangir to Sambalpur is 118 kms, Sambalpur to Talcher Rd is 169 kms, Talcher Thermal to Barang is 94 kms and Barang to Bhubaneswar is 16 kms.
7. Nawapara Rd to Titlagarh is 86 kms and Titlagarh to Balangir is 64 kms.
8. Rayagada to Theruvali is 19 kms, Theruvali to Naupada Rd is estimated to be 135 kms and Naupada Rd to Bhubaneswar is 265 kms. Rayagad to Vijainagaram is 124 kms and Vijainagaram to Bhubaneswar is 378 kms.
9. Koraput to Rayagada is 174 kms.
10. Titlagarh to Balangir is 64 kms.

Pioneer mentions that the National Highway Authority of India has given final notification for 4-6 laning of Panikoili-Rajamunda. Following is an excerpt on the same topic from Pragativadi.

 Keonjhar: The National Highways Authority of India (NHAI) has notified the four-six laning of the Panikoili-Rajamunda section of the NH-215, under the (National Highway Development Project) NHDP-III.

The notification has asked the district headquarter to undertake the land acquisition along the section of Panikoili in Jajpur district to Rajamunda in Sundergarh except for the section of Rimuli to Guali in Keonjhar district. The land acquisition will be made for a distance totalling 230 km of the total length of 263 km of NH-215 under the National Highways Act, 1956.

The project will be taken up under the BOT (Build -Operate-Transfer) scheme encompassing three revenue districts Keonjhar, Jajpur and Sundargarh. The proposed project was sanctioned by the NHAI in 2004-05 to mainly to cater to the needs of Paradip Port Trust (PPT) and due to persistent demands from the state government, especially Lok Sabha member from Keonjhar, Anant Naik.

Samaja has a beautiful editorial page article by Ramachandra Pattanayak. In it the the author explains that if we continue opposing Posco, Tisco and Mittal what will happen is that steel plants will be made in other states, our mines will be assigned by the central government to these steel plants in other states and we will lose out on many fronts including infrastructure development that comes with steel plants, ancillaries, etc. Similarly, he says it does not make sense that we are so vocal about IIT etc. and yet we oppose Vedanta University.

I agree with the author. The assignment of mines is not fully under state govt. control. We can not sit on requests and delay assigning mines. If we do that currently the central govt. has the right to assign the mines to others. Losing out on the mines, we lose out on the related infrastructure developments such as townships, railways, roads, and to some degree ports. We also lose out on the ancillaries. In this regard one may note cities with big steel plants such as Rourkela or Jamshedpur. They all have lots of ancillary units around that area. So even if the main steel plant does not employ as many people as in the past, there are more opportunities for ancillaries these days as the state is keen on going after auto factories, bicycle factories etc. These ancillaries will hire a lot of people. But, of course, we should not force people out of their land; they should be enticed with good compensation (R&R). On the other hand we need to be very careful and wary of some of the neighboring states who are trying to spread their ideology to our state and in the process trying to steal some of these upcoming developments in Orissa. In this regard it is amazing that politicians and MPs from a neighboring state are able to come to Orissa and say that their party opposes such and such project in Orissa. At the same time the party of these politicians support industry in their state so much that they or their allies have sent in cadres dressed up as policemen to kill and rape people opposed to industrialization in their state. What gull these politicians from the neighboring state have and how stupid we Oriyas are to invite them, give them a platform and listen to them.

Slowly more news about this is coming out. [Financial Express, Kalinga Times, Tathya.in 1,2,3 ]. Following are some salient points culled from various news articles. (More will be added as more news report come in.)

• Financial Express: The hub, which will come up on a built-up area of 1.5 million sqft n the Chandaka Industrial Estate of the city, will act as a centre or convergence of the bank’s activities, like call centre, ack-office operations for banking & insurance as well as sales and administration.
• Financial Express: The proposed hub would accommodate approximately 10,000 people in a phased manner and have the capacity to scale up the operations in future to a potential of 15,000 manpower.
• Fiancial Express: “ICICI Bank selected Bhubaneswar for its eastern regioanal hub after choosing Hyderabad and Ahmedabad for the southern and western hubs, respectively, because of the initiative taken by the Orissa government,” said Kamath. He said the first phase of the hub would be fully operational in two years and the second phase will be completed in the next three years.
• Kalinga Times: In order to ensure availability of skilled local manpower, the bank has already started working in a partnership model with two universities in Orissa. In this regard, a separate MoU was signed between the bank and Utkal niversity on the occasion for offering various skill enabling and vocational courses in the domains of banking, finance and insurance. … Later in the day, the bank signed another MoU with KIIT University for running of an e-Learning Centre like the one to be run by Utkal University.
• Tathya.in: Naveen also asked Kamath to facilitate the Institute of Entrepreneurship Development (IED) into a national level Centre of Excellence.ICICI has played a crucial role in developing EDI at Ahemadabad to a national level institute.Kamath promised to look into the matter, said sources.

Tathya reports that ICICI Bank will collaborate with Utkal University to start courses in banking and insurance. I guess this will be mutually beneficial to both Utkal University and ICICI Bank. The later will get a good pool to hire its employees.

Tathya reports that ICICI Bank will sign an MOU with Orissa government to set up a call center and back office operation for banking and insurance. This center to be located in Infocity will eventually hire 15,000 graduates from normal colleges. In terms of the number of people they will hire, this is a big deal; much bigger than the overhyped POSCO or Mittal deals. ICICI Bank will not use our mines; will not pollute our atmosphere; will not displace people; and will only need 12 acres and yet will hire 15,000 people. Orissa should be going after more such companies and less of the metal and mining kind.

Notes:

• Earlier in April this year ICICI Bank made a similar announcement with respect to Hyderabad.
• In 2005 ICICI Bank had planned for the eastern hub to be in Kolkata.
• ICICI Bank is different from the BPO company ICICI Onsesource which is now renamed as First Source.
• ICICI bank recently launched the ICICI Knowledge Park in Hyderabad.

Telegraph reports that there is a plan to establish a Rs 3 crore observatory with latest equipment such as  cassagerial optical telescope, Schimidt Cassergain, IR and UV sensors and a well-furnished chemical laboratory in or near Bhubaneswar. The possible spots are Sikharchandi Hill near Infocity or a hill near Naraj Barrage. Since NISER plans to eventually have a course in astronomy this observatory may come in handy for its students and faculty.

Tathya reports that an IT SEZ has been approved that covers major part of Infocity. Following is an excerpt from that article.

The IT nerve center of Orissa is centered at Infocity, a sprawling 300 acres of Export Promotion Industrial Park developed by IDCO north of Bhubaneswar.

Infosys and ESSPL have set up their development centers.

TCS, Wipro and MindTree have signed memorandum of understanding (MoU) and have taken land in Infocity.

Other prominent IT companies including Genpact, Hexaware Technologies, Ramtech Software Solutions and Contiloe Films have also applied for land.

News reports (New Indian Express) mention that POSCO‘s proposed port in Jatadhari, 12 km from Paradeep, has received environmental clearance from the center. POSCO’s MOU with Orissa government has mention of a port.

Various news reports (New Indian Express, Sambada, Dharitri) mention that an integrated Titanium plant will be established in Chhatrapur at the cost of 2200 crores. This plant will be established by Sharaf agencies with the help of the Russian government.