___________

Following is an excerpt from a report in Business Standard.

Orissa, expected to manufacture 70 mtpa of the projected 124.6 mtpa of steel by 2011-12, is also poised to become the country’s ‘power house’ in the next few years, state Energy Minister S N Patro said today.

Orissa had already signed MoUs with 13 power utilities including Tata Power, Visa Power, CESC, Essar Power for generation of 11,000 mw of power. Nearly Rs 60,000 crore would be invested in the 13 projects, he said.

According to the minister, besides the 13 companies, NTPC had also planned to set up two ultra mega power stations in the state which would generate 4,000 mw of power each.

NTPC had also plans to set up another unit which would generate 3,200 mw through coalfiring, he said.

Official sources said that this would be NTPC’s third power plant in the state after 460 mw Talcher Thermal Power Station and 3,000 mw Talcher Super Thermal Power Station in Angul district.

Elaborating on the state’s potential in power generation, Patro said Orissa would generate an additional 1,000 mw of hydroelectricity in the near future through 110 small and mini hydel power units.

… The minister, however, admitted that though Orissa was projected as a power surplus state in terms of generation it faced peak deficit of 2.1 per cent from April to August, 2007.

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

Mittal Steel India Ltd, power producers Sterlite Energy Ltd, a subsidiary of Vedanta Resources; Tata Power Company Ltd, Reliance Energy Ltd and two other firms will together mine a coal block in Orissa.

Mittal Steel, a part of the group that includes the world’s largest steel maker Arcelor Mittal, and power producer GVK Power Ltd have been jointly awarded a coal block in Jharkhand.

Mittal will have rights over the reserves in the two blocks equivalent to generate 750 MW power each for its proposed steel plants in the two mineral-rich states.

A report in Hindu Business line on this allocation mentions the block allocated for the UMPP in Orissa. Following is an excerpt:

The Government has also decided to facilitate the development of ultra mega power projects of about 4,000 MW capacity each under tariff based competitive bidding route using super critical technology.

Four coal blocks, with geological reserves of 1,857 million tonnes, have been allocated to two ultra mega power projects being set up in Orissa and Jharkhand. These will have generation capacity of 8,000 MW.

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

The Orrisa Government has decided to set up more small and micro hydel projects to generate ‘Clean Power’.

“We have sanctioned at least 28 small and micro projects which will generate hydro-power by setting up units on rivers and canals,” Energy minister S N Patro said.

Patro, after chairing a meeting of the state Technical Committee here said the government had received proposals for establishing 82 more small hydel projects in the state.

The proposals were forwarded for verification by the technical committee, official sources said.

Officials from the Department of Energy, Water Resources, Grid Corporation of Orissa and Orissa Hydro Power Generation Corporation, were members of the technical committee who would recommend the small and micro projects, they said.

The minister said while government agencies identified 34 locations for setting up small and micro hydel projects, private parties were interested in 48 other places.

“All the projects will be developed on the basis of private investments,” the minister said adding the capacity of units would range from 100 KW to 25 MW.

An additional 700 MW could be generated in the state, if the project were implemented properly, he said.

… “The small and micro hydel projects will also get a concession of 14 paise per unit of power generation,” he said.

Telegraph also reports on this and summarizes the surplus power situation in Orissa as follows:

More than 1,800MW of power is available in the state as against the average demand of 1,600 to 1700MW.

While the state generates around 600MW of this total electricity from hydro power stations, it gets around 700MW from thermal plants.

The rest is part of the state’s share from the eastern grid and the Centre–owned power plants located in the state.

The state government has already signed MoUs with 13 companies, including Tata Power, Visa Power, Calcutta Electricity Supply Corporation, Essar Power, Jindal Photo, Bhusan Energy and Sterlite Energy, last September for establishment of thermal power plants with an investment of about Rs 59,000 crore to generate about 11,000MW.

Recently, the state government has cleared expansion of three thermal power projects with an additional capacity of 2,000MW.

Sambada names some of the places where this project will be.

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

JSW Energy Ltd (JSWEL), a Sajjan Jindal group company, is planning to set up three power plants in North and Eastern India. The company also plans to foray into non-renewable energy and transmission and distribution of power.

JSW Energy, which is executing over 3000 MW of power projects, is likely to set up either coal or lignite based power plants of above 1000 MW each in Orissa, Jharkhand and West Bengal. It is also in the process of conducting due diligence studies on wind and solar energy-based power projects. Investments in the new projects are expected to be over Rs 15,000 crore.

Following are excerpts from an Economic Times report on this.

Monnet Ispat and Energy Limited on Friday said it plans to enhance capacity of its proposed steel unit from 0.3 MTPA to 2.5 MTPA and apprised the state government of the same.

The company’s managing director Sandeep Jajodia, who met Chief Minister Naveen Patnaik here, told reporters an integrated power project and a small steel unit in Orissa would be set up with an investment of Rs 4,200 crore.

The company had already acquired 450 acre out of its total requirement of nearly 1200 acre at Mangalapur, nearly 30 km from Cuttack, Jajodia said.

He said that the company’s proposed 1,000 MW thermal power plant was expected to be commissioned within three years.

“We have already acquired land for the purpose. Construction work for the project would start within 12 months after getting some more land,” Jajodia said, adding that the company would sign another MoU with the state government relating to capacity enhancement of its steel unit.

He said the company would first go for the power unit before starting the steel project. …

Following is an excerpt from a report in Telegraph.

Orissa, one of the major coal producing states in India, would get a second ultra mega thermal power project to be set up at an estimated cost of Rs 16,000 crore.

The Union power minister, Sushil Kumar Shinde, made this announcement …

Shinde said he had discussed the proposal with chief minister Naveen Patnaik today and he had agreed to it.

The Union minister did not specify the location of the proposed ultra mega power project.

However, he said it would be set up somewhere along the coastal belt.

This would be the second ultra mega power project in the state. Earlier, a 4,000MW ultra mega power project to be set up in Sundargarh district was cleared by the Centre.

Shinde said the entire coal required for the second ultra mega power project would be exported from abroad, while captive coal block had been allotted for the first plant.

Land and other inputs like water would be provided by the state government, said the state energy minister, Surya Narayan Patro.

The Centre has proposed to have 10 ultra mega power projects across the country with a capacity of 4,000MW each to bridge the gap in meeting 11th plan capacity addition target.

… “We will achieve the 78,579MW power addition target in the current Five Year Plan. The government would invest Rs 10,00,000 crore to achieve the capacity addition target and we would try to cross this target in this plan period,” he said.

Following is from Team Orissa‘s September 2007 newsletter.

Following are excerpts from a report in Statesman.

… Mr Bijay Kumar Panda, head of Essar Steel Orissa highlighted the advantages of his proposed project yesterday.

Mr Panda said that the people of Nuagada, Udayabata and Bijaychandpur are keen on an early establishment of the proposed steel plant.

Barring a couple of organizations, the people at large are interested in the project and they have accepted the RR policy adopted by the company, he claimed.

Mr Panda informed that Essar Steel Orissa Ltd (ESOL), which is fully owned by Essar Steel Ltd, is going to set up a 6 million tone per annum integrated steel plant at the cost of Rs 15,000 corers.

The project would require 1900 acres of land out of which 270 acres would be government land and the rest, private. He informed that the number of displaced families have not yet been ascertained because the land survey has not been completed.

He said that the company, the government and the people had all agreed to a rate of Rs 9.50 lakh per acre as compensation and that some people had already provided their land at the said rate.

Balram Parida of Nuagada village who had given his 70 decimals land for the project said he had also requested the Essar authority to emply his son. Speaking of the project, Mr Panda informed that the technology selected will be eco –friendly and increase the iron ore reserves. He said that a beneficiation plant is located at Joda and Barbil so beneficiated ore will be transported through a slurry pipe line to Joda. Supply of iron ore through the pipe line will be cheaper too, he added.

He also informed 5500 people will be employed. The company will set up a 200 mega watt captive thermal power plant.

Meanwhile, the Paradip Krushak Manch has threatened to agitate if Essar failed to increase the compensation to Rs 25 lakh per acre.

Following is an excerpt from a Reuters report.

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

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

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

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

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

The company still has to tie up a mining lease.

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

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

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

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

Their web site is www.oredaorissa.com.

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

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

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

Follow are excerpts from a Statesman report.

The high powered committee headed by chief secretary Mr Ajit Tripathy today cleared 16 investment proposals, entailing an investment of approximately Rs 30,000 crore.

The projects mainly in the power, steel, aluminium and cement sectors were amongst the 40 project proposals placed before the committee. There were three steel and three power projects amongst the 16 which got the nod today.

Significantly while the Ashapura mines chemicals project proposal for a aluminium refinery was approved, the aluminium project of IMFA Group headed by Dr Bansidhar Panda was held up.

… two task forces had been constituted to further evaluate the proposals in the cement and power sectors. The Industry secretary will head the task force for cement sector projects while the development commissioner will be in charge of the task force for power projects, …

The power projects cleared by the committee today included the Bhusan Energy project which intends to establish a 2,000 MW thermal power plant at Angul with an investment of Rs 8,483 crore. The Visa Power Limited’s 1,000 mw Thermal Power plant at Brhamnabasta in Cuttack district at a cost of Rs 3,698 crore was also cleared while the third power project was of Monnet Energy at Sundergarh. It will be a 1,000 mw plant.

The Rs 4,232 crore aluminium project of Ashpura Mines Chemicals to come up in Koraput district was cleared. It aims at setting up a 5 lakh ton refinery and a 1.5 lakh ton smelter plant besides having a 300 MW captive power plant .

The Committee approved the three new steel plant projects and the expansion of existing five steel projects in the state.

Bonei Industry company’s project to set up a plant at Sundergarh at a cost of Rs 302 crore, M/s Rungta Sons Ltd’s proposal to set up a steel plant at Barmunda at a cost of Rs 930 crore and Free Grade company Ltd’s steel plant at Dhenkanal at a cost of Rs 603 crore were also cleared.

Expansion proposals of SMC Power Generation and MSP Mettalics at Jharsuguda, Braja Ispat, Rourkela and the Keonjhar Orient Ispat were given the go ahead by the committee.

ACC Cement’s proposal for investment of Rs 400 crore for its capacity development was approved while Goa Carbons Ltd’s proposal for a CPC coke plant with an investment of Rs 225 crore was also cleared.

Following are excerpts from a Telegraph report.

Chambal Infrastructure Ventures Limited — of the KK Birla group — today expressed interest in setting up a 2,000MW thermal power plant at an estimated cost of Rs 9,000 crore.

H.S. Bawa, the managing director of Zuari Industries and senior vice-president of Chambal Fertiliser and Chemicals Limited, made a presentation before chief minister Naveen Patnaik this evening regarding the matter. Bawa expressed the multinational’s interest in the project.

In fact, the firm has already applied for 2,000 acre near Siaria in Dhenkanal.

… It had also offered to set up a thermal power plant in a joint venture with PSUs.

The proposal’s appraisal would be made by the state-run Industrial Promotion and Investment Limited, which is a nodal agency for industrial projects.

In turn the agency examines projects before they are referred to a single window clearance committee, which is headed by the chief minister himself.

Meanwhile, the company has applied to the coal ministry for blocks. It has also applied to the water resources department to seek permission to use river water for plants.

If the proposal is cleared by the government, Chambal Infrastructure Venture Limited will be the 14th company to sign an MoU with Orissa government to set up a thermal power plant in Orissa.

Already 13 power companies have signed MoUs for setting up plants with a total capacity of 16,000MW and for am investment of Rs 70,000 crore.

Many have already acquired land and obtained environment clearance, as well as, permission for industrial water use.

Two to three firms have also been allotted coal blocks, Patro added.

Construction of power plants proposed to be set up by Vedanta Power Limited has already started in Jharsuguda.

From a PIB. (In general, the more the power consumption, the more developed a state/country is and the more industrialized the state/country is. With the conservation movement, this may change though. )

STATEWISE GROSS ANNUAL PER CAPITA CONSUMPTION OF ELECTRICITY DURING THE YEAR 2005-06 (UTILITIES & NON-UTILITIES)

Name of the	Per Capita Consumption*
State /U.T.s	of  Electricity  (kWh)
Haryana	1090.39
Himachal Pradesh	765.86
Jammu & Kashmir	711.01
Punjab	1436.79
Rajasthan	572.20
Uttar Pradesh	311.82
Uttarakhand	654.84
Chandigarh	1553.96
Delhi	1766.94
Sub-Total(NR)	602.56
Gujarat	1283.77
Madhya Pradesh	580.34
Chhattisgarh	685.81
Maharashtra	934.43
Goa	1970.08
Daman & Diu	8300.12
D. & N Haveli	11567.67
Sub-Total(WR)	916.28
Andhra Pradesh	723.10
Karnataka	720.43
Kerala	424.13
Tamil Nadu	976.81
Lakshadweep	368.29
Pondicherry	2509.25
Sub-Total(SR)	757.79
Bihar	85.86
Jharkhand	548.74
Orissa	633.93
West Bengal	380.61
A.& N. Islands	407.77
Sikkim	429.81
Sub-Total(ER)	332.21
Assam	170.65
Manipur	215.21
Meghalaya	517.54
Nagaland	179.34
Tripura	190.62
Arunachal Pradesh	297.66
Mizoram	250.15
Sub-Total(NER)	201.44
Total (All India)	631.41
Note :  * As per UN methodology :Per Capita Consumption equal to gross

The per capita consumption of electricity in some  developed countries as calculated by the International Energy Agency for the year 2004 is as  given below:

Source: International Energy Agency publication “ Key word Energy Statistics, 2006”.                             

Following are excerpts from a PIB.

The bidding process has been completed in respect of the Ultra Mega Power Projects (UMPPs) in Mundra and Sasan. In the case of Mundra, M/s. Tata Power Ltd. and in the case of Sasan, M/s. Reliance Power Ltd. have been selected as the project developers.

In addition to the above, the bidding process has been initiated in respect of the UMPPs at Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand). Commencement of the bidding process in respect of the remaining five locations is contingent upon the requisite clearances from the State Governments. The Ministry of Power has taken up with the concerned State Governments to provide the requisite clearances/examine the feasibility of alternate sites for development of the Ultra Mega Power Projects in their respective States.

This information was given by Union Power Minister Shri Sushilkumar Shinde in the Rajya Sabha today.

The Ministry of Power had launched an initiative for the development of coal based UMPPs, each of about 4000 MW capacity. These projects are being developed on a Build, Own and Operate basis, and the project developer is selected through a tariff based competitive bidding process. The Central Electricity Authority (CEA) in consultation with the States had identified the following nine locations for these UMPPs:

(i) Sasan in Madhya Pradesh ; (ii) Mundra in Gujarat (iii) Krishnapatnam in Andhra Pradesh (iv) Akaltara in Chhattisgarh (v) Tadri in Karnataka (vi) Girye in Maharashtra (vii) Cheyyur in Tamil Nadu (viii) Sundergarh District in Orissa; and (ix) Tilaiya in Jharkhand.

Following are excerpts from a New Kerala report on this.

Three power distribution companies have made a project outlay of Rs 50 crore to upgrade their infrastructure to supply quality power … to their customers.

The companies– Wesco, Nesco and Southco had submitted a detail plan of expenditure to the Electricity Regulatory Commission in this regard.

According to sources, the companies have geared up their machinery to supply uninterrupted power to high tension and extra high tension consumers.

A team comprising members from Grid Corporation of Orissa, the three distribution companies and OPTCL had been chalking out plans to provide power to upcoming industries and new consumers on demand.

A plan to reduce the transmission and distribution loss by 15 per cent was being finalised and would soon be submitted to the GRIDCO, sources said.

The companies also urged the power ministry to complete the existing projects under the Accelerated Power Development and Reforms Programme.

A Statesman report, gives additional context to this. Following are some excerpts.

… three private distribution companies run by Reliance Energy has finally detailed its proposed funding and achievements.

In a situation where tariff has remained stagnant over 7 years , the company has maintained the system infrastructure with minimum spending. It has provided uninterrupted power and electricity to 1500 villages. The three distribution companies- Wesco, Southco and Nesco have also been regular in paying bulk supply bills to Gridco, salaries to employees etc noted Reliance Energy.

It is important to note that the energy minister, … had expressed his dissatisfaction with the company due to their lack of investment and the litigation over payment of dues. The chief minister had directed the energy department to prepare a detailed note and call the top brass of Reliance Energy for discussions.

Apparently jolted to action, the Reliance Energy has circulated a release stating that it has taken up up-rating and upgradation of the distribution infrastructure with an immediate outlay of Rs 50 crore.

It also claimed that in view of the growing ancillary, medium and large industries that were coming up in the state, a multidisciplinary team with members from Gridco, the three distribution companies and the power trading corporation has been formed to work out a strategy for quality power supply to such units. The distribution companies are also persuading the Ministry of Power to complete the existing APDRP works while the state government has also initiated a process to obtain a sanction of Rs 800 crore for the second phase, under APDRP, for the companies.

The distribution companies are also implementing the Biju Gramin Jyoti Yojana , while also finalizing their performance targets and Action Plan that will help reduce the transmission and distribution loss to the extent of 15 per cent as envisaged earlier.

Following are excerpts on this from a report in Pioneer.

The Centre has allocated coal blocks to three companies of the State. These three companies include Orissa Power Generation Corporation (OPGC), Orissa Hydo Power Corporation (OHPC) and Orissa Mining Corporation (OMC). …

In Baitarani West Coal block, Centre has given the rights of exploration to OHPC, State Electricity Board of Kerala and Power Corporation of Gujurat. All of them have been allotted coal blocks to the tune of 200 million tonne. OPGC has got two coal blocks. It has got the Manoharpur and Manoharpur deep side coal block. It has got 532 million tonne of coals.

In the Utkal D- Coal block site, OMC has got 120 million tonne. It has also got 350 million tonne of coal blocks in the Telisahi coal block of Nuagaon.

Andhra Pradesh has also got the 350 million tonne of coal from this site. Mandakini Coal block has been distributed among the four States. Meghalaya and Assam are the important beneficiaries.

Following is Samaja’s report on this plan and what Orissa is asking in return.

Following are excerpts from a moneycontrol report on this.

CNBC-TV18 has learnt that Suryachakra Power is in talks with the Orissa government for a 1,200 MW thermal power project.

The company may set up the Orissa plant in four phases, added sources. The first phase of the Orissa plant will cost USD 300 million.

The company will buy coal from Tata Power Trading Company and sell power to Tata Power. They are likely to form special purpose vehicle, or SPV, to fund the Orissa project. …

Business standard reports on this. Following are some excerpts.

 The Thapar-owned Ballarpur Industries Ltd (Bilt) power outfit BILT Power proposes to set up a 1,200-Mw independent power plant (IPP) in Orissa at an investment of around Rs 6,000 crore.

… BILT Power is expected to sign a Memorandum of Understanding (MoU) with the state government soon.

Funds for the project would be sourced through loans from banks and financial institutions (FIs), of which 70 per cent would be debt and 30 per cent would come in as promoters’ equity.

BILT Power Chief Executive Officer (CEO) Anil Bhargava told Business Standard, “The detailed project report and feasibility study reports have already been submitted to the government. We are just awaiting the government nod to go ahead with the project.”

Bilt Power has already cleared the screening committee process for setting up the plant. Requirements for setting up the IPP has been forwarded to the state government.

The IPP is proposed to be set up in Choudwar on 950 acres. The Thapars already have paper production facilities in the state. They also have a captive power plant (CPP) at Sewa in Koraput district of the state.

Currently, BILT Power aggregates 100 Mw of CPP capacity at Sewa, Yamunanagar in Haryana and two plants each at Pune and Ballarshah in Maharashtra.

These plants have capacities between 25 Mw and 30 Mw each. Bilt Power has applied for allotment of coal blocks at Mandakini in the Talcher Coalfields of Orissa.

S Jagdev, head, corporate affairs, (eastern region), Bilt, said, “About 6 million tonne (MT) of coal would be required annually to feed the power plant.”

Moneycontrol reports on Money Ispat’s performance and its interest in Orissa. Following are some excerpts.

Net profit of Monnet Ispat & Energy Limited jumped by 82% at Rs. 48.55 crores in its 1st quarter of 2007-2008, vis-?-vis Rs. 26.64 crores in the corresponding quarter of last financial year. The company recorded total turnover at Rs. 234.53 crores as compared to Rs. 137.12 crores achieved in the corresponding quarter of last fiscal ?an increase of 71%. …

Emphasising its shift to energy from steel making, Delhi based Monnet Ispat & Energy Ltd. (MIEL) has signed an MoU with the Government of Orissa for setting up a 1,000 MW power plant at an estimated cost of Rs.4200 Crores. The pithead power plant will come up in the Angul district of Orissa. MIEL plans to put up the 1000 MW power project in two phases of 600 MW and 400 MW. The 1st phase will be set up at an estimated cost of Rs.2850 Crores and the 2nd Phase at a cost of Rs.1350 Crores.

“In the coming years, the company will be focused more on the energy business rather than steel. Within a year, 55% of the revenues will come from the energy business and the rest from steel.,” said Mr. Sandeep Jajodia, Managing Director, Monnet Ispat & Energy Ltd.