Following is from Dharitri:

1. Economic Times on 3 more terminal markets in Odisha:

Orissa government will provide four terminal market yards to enable the farmers to sell their produce at market prices…. One of the terminal has already been constructed at Sambalpur with an investment

of Rs 86 crore and three others are coming up at Cuttack, Berhampur and Rourkela,…

2. Business Standrad on MOU with five IPPs for 4800 MW power:

The cumulative capacity of these projects would be 4800 Mw and the total investment is envisaged to be Rs 23203.52 crore.

With this, the total power generation projected in the state would increase to 31100 Mw from 26300 Mw earlier.The Orissa government has already inked MoUs with 21 IPPs with an aggregate generation capacity of 26,300 Mw earlier.

… Five companies who signed the MoU included BGR Energy System, JR Powergen Private Ltd, Adhunik Power and Natural Resources Ltd, Maa Durga Thermal Power Company Ltd and Vijaya Ferro and Power Private Ltd.

JR Powergen Private Ltd would set up a 1980 Mw thermal power plant at Kishorenagar near Angul at an investment of Rs 7988 crore. BGR Energy Systems Ltd also plans to set up a 1320 Mw power plant at Bhapur in Nayagarh district at an investment of Rs 6287 crore.

Similarly, Adhunik Power and Natural Resources Ltd would set up a 1320 Mw power plant at Birmaharajpur in Sonepur district entailing an investment of Rs 8079.74 crore. All these proposals were cleared by the High Level Clearance Authority (HLCA) chaired by the chief minister Naveen Patnaik.

On the other hand, Maa Durga Thermal Power would set up a 60 Mw ((2x30Mw) power plant at Tangi in Cuttack district, involving an investment of Rs 296.95 crore. Besides, Vijaya Ferro and Power Private Ltd, planning to set up a 120 Mw power plant (IPP) at an investment of Rs 550 crore at Kesinga (Turla Khamar) in Kalahandi district.

The total land requirement for these projects have been assessed at 4360 acres and about 22,325 direct and indirect employment opportunities are expected to be created when these projects would be fully commissioned. Three projects namely BGR Energy System, JR Powergen Private Ltd, Adhunik Power and Natural Resources Ltd would source water from the Mahanadi river system, Maa Durga Thermal Power would draw water from Birupa river.Vijaya Ferro and Power plans to source water from Tel river.

3. Hindu on preliminary bids for UMPP at Bedabahal:

the government was likely to invite preliminary bids for the 4,000-MW Ultra Mega Power Project (UMPP) at Bedabahal in Orissa by April 30.

The request for qualification (RSQ) for the project may be issued by April 30.

This Bedabahal project would be the sixth UMPP project. The government has already awarded four UMPPs, of which three — Sasan in Madhya Pradesh, Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand — have been bagged by Reliance Power.

4. Sify on 595 crores for waterbody upgrade:

As many as 1817 water bodies, mostly the minor irrigation projects (MIPs) in 20 districts of Orissa, would be revitalized under the Centrally sponsored scheme of Repair, Renovation and Restoration (RRR) of Water Bodies.

These water bodies would be revitalized within a period of three years at an estimated cost of Rs 595.14 crore.

The funding for these projects would be shared between the Government of India and the Orissa government in the ratio of 90:10 for the Maoist infested, drought prone and backward districts of Kalahandi, Bolangir and Koraput (KBK).

For the other districts, the share between the Centre and the state government will be 25 per cent and 75 per cent respectively.

While the design ayacut of all 1817 projects was 2, 48,545.86 hectares, the irrigation potential of an additional 89,110.02 hectares of land would be revived through these projects, sources said.

Most of these projects under the RRR scheme are being taken up in south Orissa’s Ganjam district. About 800 projects under the scheme are to be taken up in the district at a cost of Rs 250.87 crore.

… Apart from Ganjam and KBK, the other districts where the scheme will be implemented are Bargarh, Bolangir, Gajapati, Jajpur, Kalahandi, Kandhamal, Koraput, Mayurbhanaj, Nabarangapur, Nayagarh, Nuapada, Rayagada, Sambalpur, Sundargarh, Balasore, Malkanagiri, Subarnapur, Deogarh and Dhenkanal.

The pilot project for this scheme was implemented for 137 projects in Ganjam and Gajapati districts at a cost of Rs 18.84 crore during 2005-06 to 2008-09.

5. Hindu on Japan giving 150 crores for an irrigation project:

Japan will also give … over Rs 150 crore for Rengali irrigation project in Orissa.

6. Hospitalitbizindia on a mega food park at Malipada, Khurda:

Government of India is likely to set up a mega food park and a marine food park at Malipara near Khurda in Orissa with an area of 282 acres. This information was given by Subodh Kant Sahai, Union Minister for Food Processing while responding to a demand raised by Naveen Patnaik, Chief Minister, Orissa at the Orissa Investors meet 2010.

Following is from http://pib.nic.in/release/release.asp?relid=59882. The Odisha part and some other important parts are highlighted in red by me.

CCEA Decision

            The CCEA today approved a Rs.1156 crore World Bank assisted Integrated Coastal Zone Management (ICZM) Project.  This project is to be implemented over the next five years by the Ministry of Environment and Forests. The World Bank’s contribution as soft loan/IDA credit is around         Rs. 897 crore (78%).  This ICZM project assumes special significance in the context of climate change since one of the definitive findings of the IPCC relates to the increase in mean sea levels as a result of global warming.

            The ICZM project has four main components:

1.       National ICZM capacity-building at a total investment of about Rs.356 crore which will cover (i) mapping, delineation and demarcation of the hazard lines and delineation of the coastal sediment cells along the mainland coast of India; (ii) mapping, delineation and demarcation of environmentally-sensitive areas that require protection; (iii) establishment of a National Centre for Sustainable Coastal Management at Anna University, Chennai; and (iv) a nation-wide training programme for coastal zone management.

2.       ICZM activities along the Gulf of Kachchh and in Jamnagar District in Gujarat at a total investment of around Rs.298 crore.

3.       ICZM and wetland conservation activities in two stretches of the Orissa coast (i) Gopalpur-Chilika; and (ii) Paradip-Dhamra at a total investment of Rs.201 crore.

4.       ICZM activities in Sunderban, Haldia and Digha-Shankarpur regions of West Bengal at a total investment of Rs.300 crore.

The project would develop capacity and institutions to effectively implement the CRZ Notification 1991, to control pollution of coastal waters and to expand livelihood options for coastal communities. The elaborate and extensive exercise in hazard mapping along the 7500-km coastline, which is being done for the first time, by the Survey of India at cost of Rs.125 crore will greatly assist in protecting coastal communities and infrastructure located in coastal areas.

The total number of direct beneficiaries of the project is close to 15 lakhs, while the number of indirect but identifiable beneficiaries will be close to 6 crore. The initial set of three states have been selected on various grounds including pressure on coast, presence of critical ecosystems, risks of natural hazards, etc. The Asian Development Bank is supporting a less comprehensive shoreline management project in Karnataka, Maharashtra and Goa. It is envisaged that the second phase of ICZM would take up the other coastal states with project preparation in all remaining coastal states commencing immediately.

Of special focus in the project will be identification and demarcation of coastal fragile areas like mangroves, brackish water wetlands, coral reefs, etc based on which a new category of “Critically Vulnerable Coastal Areas”(CVCAs) would be designated and appropriate management plans implemented for their preservation and regeneration. These would include areas around Lakshadweep, Andaman and Nicobar Islands, Gulf of Khambat in Gujarat, Malvan, Vasasi-Manori,Achra-Ratnagiri in Maharashtra, Karwar and Coondapur in Karnataka, Vembanad in Kerala, Bhaitarkanika and Chilika in Orissa, Coringa, East Godavari and Krishna in Andhra Pradesh,Sunderban in West Bengal, Pichawaram and Gulf of Mannar in Tamil Nadu etc.

This is the second World Bank assisted project of the Ministry of Environment and Forests to be approved by the CCEA in the past two weeks. The first was a Rs. 350 crore project for initiating the process of remediation, rehabilitation and restoration of contaminated hazardous waste/municipal solid waste dumpsites in the country. There are over 120 such sites in different states and this project would be launched to clean-up 2 sites in Andhra Pradesh and 8 in West Bengal to begin with, apart from to prepare a national plan for remediation and restoration of all legacy contaminated sites which have become public health hazards.

*********

AD/LV

The Orissa State Road Project web site is at http://osrp.gov.in/index.htm. It has a nice detailed map of roads in Orissa. The following details is from its "About Us" page.

The State Govt. during January 2005 had proposed to avail loan from World Bank and JBIC (Japan Bank for International Co-operation) for improvement of the state roads. The proposals were sent to the World Bank and JBIC through the Ministry of Road Transport and Highways and Department of Economic Affairs, Govt. of India.

The proposals were approved by the SLPMC on EAP (State Level Project Monitoring Committee on External Aided Project), chaired by the Chief Secretary, Orissa, on 20.01.05. The preliminary proposals included 27 nos. of road project under World Bank Scheme and 14 road projects under JBIC scheme. The project cost proposed under JBIC was Rs. 715.34 Crores for 805 Km of state road and that under World Bank Rs. 1642.44 Crores for 2197 Km of state road.

The Department of Expenditure, Ministry of Finance, Govt. of India gave clearance to the proposed World Bank project in their letter dated 07.04.2005 addressed to the State Govt. (Finance Department). However, the proposed JBIC road project has not yet been approved / cleared by the Govt. of India.

After clearance from Govt. of India, a full identification mission from the World Bank comprising Dr.Binyam Reja (Task Team Leader), A.K. Swaminathan (Sr. Transport Specialist), Mohammad Hassan (Sr. Social Development Specialist), and Ernst Hunning (Institutional Development Consultant) visited the State from April 14-22, 2005 to initiate the preparation of the proposed Orissa State Roads Project (OSRP). The mission met with concerned officials of the Government of Orissa (GOO) and senior management of the Orissa Works Department (OWD), and carried out field visits to some of the proposed roads.

During the April 2005 World Bank Identification Mission, it was agreed that, detailed project preparation for the proposed road network shall commence in a phased manner in three phases i.e Phase-I, Phase-II & Phase-III ( Para -11 & Para-27 (b) , (e) : April 2005 Aide Memoir of World Bank).

The World Bank team had discussed with the Finance Department for Plan provisions and necessary counterpart funding. After a detail discussion, the World Bank had agreed to:

                a.         Fund a Project for improvement Road infrastructure amounting to Rs. 1200 Cr. Out of which state has to bear Rs. 200 Cr as counterpart funding. Total World Bank loan ceiling shall be US$ 225 Million.

                b.         High density road corridors having sufficient economic viability of about 1200  1400 Kms shall be included in the project.

                c.         Balance roads shall be identified after carrying out a network analysis and economic viability from the balance 3700 Kms of State Highways in other phases subsequently.

–     At the preliminary stage, identified about 825 Km of Road Stretches to be included in the

Phase-I of the Project. These roads were selected from the earlier dropped project for

which a full-scale techno-economic feasibility study was carried out.

1              Jagatpur  Salepur  Kendrapara  Chandbali  Bhadrak (SH9 & SH 9A) -152 Km

2              Bhadrak  Anandpur  Karanjia  Tongabilla (Jashipur) (SH 53 & SH 49) -142 Km

3              Khariar  Bhawanipatna  Muniguda  Rayagada  Kereda (SH 16, SH 6 & MDR 48b) -213 Km

4              Berhampur  Rayagada (SH 17 & SH 4)          -201 Km

5              Banarpal  Daspalla (MDR 18, MDR 18A & MDR 64)    -89 Km

6              Bhanjanagar -Aska (SH  7)               -38Km

–The World Bank however desired to check the viability of these roads by carrying out an updated techno-economic feasibility study.

–The project also includes identification of road stretches to be taken up in Phase  II of the project after carrying out network analysis for all State roads.

–Accordingly a domestic Consultant has been engaged from Govt of Orissa s own resources to carryout:

1              the Economic viability of Phase  I Roads;

2              the feasibility study & DPR of Phase  I Roads and

3              the network analysis of all State Highways of the State and identification of phase II roads.

   The World Bank Mission had:

–     Agreed for a Project for improvement of about 1200  1400 Km State Roads with a

Project size of Rs. 1480 Cr. (US$ 315 Million) with loan component of Rs. 1175 Cr. (US$

250 Million) and counterpart funding of Rs. 305 Cr. (US$ 65 Million);

The World Bank team again visited the state during September 2005 and inspected the roads proposed by the State Government to finalise roads for inclusion in Phase-I of the project (Para -12 & Para-14 : September 2005 Aide Memoir of World Bank) . During the said visit, some of the important roads proposed under JBIC assistance (Japan Bank for International Co-operation ) was included in the Phase-I list of World Bank roads after discussion with the World Bank, since the proposal submitted to JBIC was not cleared by the Dept. of Economic Affairs, Govt. of India.

1              Jagatpur  Salepur  Kendrapara  Chandbali  Bhadrak (SH9 & SH 9A) -152 Km

2              Bhadrak  Anandpur  Karanjia  Tongabilla (Jashipur) (SH 53 & SH 49) -138Km

3              Khariar  Bhawanipatna  Muniguda  Rayagada  Kereda (SH 16, SH 6 & MDR 48b) -223 Km

4              Berhampur  JK Pur _ Rayagada (SH 17 & SH 4)          -202 Km

5              Banarpal  Daspalla -Bhanjanagar -Aska (MDR 18, MDR 18A & MDR 64,SH  7)) -201Km

Approval from Hon ble Chief Minster to the roads proposed under Phase-I of World Bank scheme, covering a total length of 835 Km was obtained during October 2005, so as to proceed for detailed feasibility, economic analysis and other associated studies for Detailed Project Preparation and bidding. The major criteria used for selection of these roads were traffic volume, carriageway width, pavement conditions, economic activity in the influence area of the road, and connectivity of the roads.

Subsequently, after consideration of the Feasibility Study prepared by the DPR Consultant, the World

Bank Mission during their visit to the State in November 6-10, 2006 have decided to improve the

following roads in the Year  I of the Project.

1              Chandabali  Bhadrak  Anandapur

2              Khariar  Bhawanipatana

3              Berhampur  Taptapani

The World Bank had suggested to carryout detail economic viability and feasibility study for the 835 Km roads proposed under Phase-1 and Network Analysis of the entire State Highway Network ( covering about 3955 Km, leaving 835 Km Phase-1 roads ) for identification / prioritization of 1600 Km roads for improvement in Phase-II & Phase-III ( Para -11 & Para-27 (a), (e) : April 2005 Aide Memoir of World Bank). They had suggested to use the latest traffic and road condition survey data so as to assess which roads should fall under rehabilitation, and which roads should fall under upgrading in the detailed economic analysis.

Accordingly, economic viability and detailed feasibility study for the 835 Km roads proposed under Phase-1 and Network Analysis of the entire State Highway Network ( covering about 3955 Km, leaving 835 Km Phase-1 roads ) for identification / prioritization of 1600 Km roads for Phase-II & Phase-III were carriedout with help of a domestic consultants. M/S CEG Ltd from Rajasthan. The economic justifications of proposed road improvements under Phase-1 have been analyzed by using the life cycle costing economic tool ! Highway Development and Management Model (HDM-4) version 1.3" of World Bank. The economic evaluation has been carried out on the basis of incremental costs and benefits comparing the total net benefits with various alternatives. The economic indicators like NPV (Net Present Value) and EIRR ( Economic Internal Rate of Return) are then calculated. The final list of roads included in Phase-I alongwith summary of their techno-economic analysis with NPV, EIRR and ratio of NPV and cost etc. is shown at Annexure-I: The EIRR of each of the five corridors under Phase-1 varies from 30.53% to 17.28% with NPV of Rs 13172.8 million. It may be noted that the roads with EIRR more than 12% are considered financially viable under the World Bank loan.

 The World Bank had further intimated that the Project shall include

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

The State Government has decided to extend the targeted rural initiative for poverty termination and infrastructure (TRIPTI) scheme to all the 314 blocks.

… TRIPTI is being implemented under the Mission Shakti through the self-help groups (SHGs).

The Chief Minister directed the officials to create the required infrastructure for implementation of the scheme across the State. The scheme is being implemented in 8,369 villages of 38 blocks of the State covering 12,54,607 rural families.

The World Bank-assisted scheme aims at capacity building and employment generation for the women with the help of women SHGs.

It has agreed to provide a loan assistance for the implementation of the scheme for five years.

Naveen also reviewed the progress of Mission Shakti. So far, 46.5 lakh women have become members of 3.87 lakh SHGs. According to a release from the Chief Minister’s Office, so far a loan assistance of Rs 1,367 crore has been provided to the SHGs in the State.

Official sources maintained that during 2008-09, one lakh SHGs from all the 30 districts were provided assistance of Rs 50 crore for creation of livelihood. Similarly, 1,614 SHGs in the KBK region (undivided Kalahandi, Balangir and Koraput districts) were provided Rs 80.7 lakh for creation of job opportunities. SHGs in the urban areas were provided a loan assistance of Rs 2 crore during the year.

Besides, the SHGs have also dug 7,000 water bodies under the livelihood support programme for pisci-culture. The release claimed that 63 SHGs distributed LPGs under the Shakti Gaon Programme. The SHGs also implemented mid-day meal scheme in 34,000 schools and members of 7,000 SHGs worked as public distribution system (PDS) agents.

The State Government has signed an agreement with Reliance Fresh and ITC for marketing products from the SHGs. …

Following is an excerpt from a report in Times of India.

The road, transport and highways ministry (MoRTH), which has sought a $3 billion loan from the World Bank for this project, has already finalized 3,769 km to be taken up for double laning. The ministry has also identified another 2,600 km for this purpose.

Seven stretches covering 807 km of single-lane highways would be doubled in Bihar while nearly 638 km of single-lane NH falling in Himachal Pradesh would be upgraded. Orissa and Uttarakhand will see 558 km and 448 km of similar stretches being upgraded.

Sources said the preliminary report prepared by the ministry for other stretches shows that HP would get a good share in the list of states to be covered under the plan. Similarly, Uttarakhand, Bihar and Orissa will see large stretches being double-laned.

I could not find out which highways in Orissa are part of this. Some of the sites to watch for are:

• What’s New
• World bank funded highways

Following is a map of the National Highways in Orissa obtained from the Ministry of Road and Transport’s website.

Following is from a web site of world bank about doing business in various cities of India. This site has the main findings. The full report is at http://www.doingbusiness.org/Documents/Subnational/DB09_Subnational_Report_India.pdf.

The overall ranking of the 17 cities are:

1. Ludhiana
2. Hyderabad
3. Bhubaneswar
4. Gurgaon
5. Ahmedabad
6. New Delhi
7. Jaipur
8. Guwahati
9. Ranchi
10. Mumbai
11. Indore
12. Noida
13. Bangalore
14. Patna
15. Chennai
16. Kochi
17. Kolkata

Why is Pune not in the list?

I think the fact that the debt has doubled in 10 years is not necessarily a concern. My guess is that the annual budget of Orissa has probably quadrapled during that time. (As a related data point, the planning commission outlay for Orissa was Rs 5105 crores in 2007-08 and is Rs 9500 crores in 2009-10.) That plus the recent debt swap they did to reduce the intetrest rates means the percentage of annual budget going towards debt servicing has reduced. Nevertheless, the government should be concerned about the size of the debt.

Following is from a report in Business Standard.

In order to bring about a more inclusive growth in Orissa through improved transport and irrigation facilities, the World Bank has earmarked $444 million (around Rs 2,200 crore) assistance package for the state.

The package comprises three projects that will aim to improve the state’s road network (with an allocation of $250 million or Rs 1,225 crore), its agricultural tank systems ($112 or Rs 548 crore) and increase livelihood opportunities for its rural poor ($ 82.4 million or Rs 404 crore).

“The emphasis is not only to build on what has been achieved so far, but also target inclusion of the poorest of the poor,” said Roberto Zagha, World Bank country director for India, in a statement.

“These projects will bring in lessons learned from roads, tanks and livelihood projects across India and help Orissa provide its poor better access to finance, improve the efficiency of the transport systems and increase the availability of water for its farmers,” he added.

Despite doing well on economic front, especially in the mining, agriculture and services sectors, Orissa remains one of India’s poorest states with nearly half of its 38 million people living under the official poverty line, most of them in rural areas.

Under the $250 million Orissa state road project, efforts would be made to remove bottlenecks in transport corridors. The project will also increase the role of private sector in road infrastructure, and assist the state government in establishing an institutional framework in the sector.

Only 22 per cent of the state’s roads are paved, even as most village and district roads remain unconnected to the national highway system. “An efficient road transport system is critical for improving the state’s investment climate and promoting a private-sector-led economic growth,” said Binyam Reja, World Bank senior transport economist and task leader for this project.

The Orissa community tanks management project, which is worth $112 million will rehabilitate about 900 tanks covering a cultivable area of about 120,000 hectares spread across 29 districts of the state. This is expected to increase productivity in agriculture, livestock and fisheries, and promote more effective and sustainable management of tank systems.

The project will support improvements in production technologies and management practices, and better market linkages. It will also strengthen community-based institutions, enabling them to assume greater responsibility for tank management.

The Orissa rural livelihoods project aims to empower the rural poor, especially women and disadvantaged groups, through their inclusion in self-help groups (SHGs). These groups are the primary mechanism for channeling microfinance to the poor in the state. The project will also support creating new SHGs and strengthening existing groups.

The following is from http://go.worldbank.org/F6WBERON80. See  also this Telegraph report.

Following is from a report in Pragativadi.

The Asian Development Bank (ADB) has agreed to give 188 US million dollar as loan for the improvement in the irrigation sector of Orissa. The funds would be spent under the Orissa Irrigated Agriculture and Water Management programme. Under this project, Budhabalanga, Baitarani, Subarnarekeha and Chitrotpala basin will be inter-linked.  Besides, six major irrigation projects, nine medium and 1,400 lift irrigation points would be set up that would facilitate irrigation in 2.24 lakh hectare of lands. A tripartite agreement was signed in New Delhi by the Centre, the ADB and the Orissa government. As per the agreement, ADB will provide 47 US million dollar in the first phase. The state government will repay the money at a five per cent interest in a period of 25 years.

Following is an excerpt from a report in Telegraph.

The $250 million World Bank loan will go a long way for the development of roads, said state works minister A.U. Singhdeo. The government would share 20 per cent of the total cost of the World Bank-funded Orissa state road project, added the minister.

With the loan amount, 461km of roads would be upgraded to two-lane. A damaged high-level bridge over the Banshadahra near Gumuda would be renovated, too.

Out of the 461km of the road, construction of 204km would be taken up in the phase-I package, while the rest of 257km would developed in phase-II of the project.

The phase-I package would include Bhawanipatna-Khariar road (68km), Chandbali-Bhadrak-Anandpur road (95km) and Berhampur-Taptapani road (41km).

Taptapani-Raipanka road (68km), Raipanka-JK Pur road (83km) and Jagatpur-Chandbali road (106km) would come under the second package.

Besides the above six roads, feasibility reports and bid documents for widening of Sambalpur-Rourkela road (165km), Joda-Bambry road (18km) and Koira-Tensa-Lahunipara road (46 km) under public-private participation mode is under preparation.

The World Bank is also financing the cost of consultancy services, revealed a senior official of the state works department.

Following is an excerpt from a report in Pragativadi.

Laying the foundation stone for the Integrated Sewerage System for Bhubaneswar city at a grand function on Tuesday, chief minister Naveen Patnaik said that all measures were taken by the state government to improve infrastructure of the city in an effort to provide basic amenities to people.

Speaking on the occasion, housing and urban development minister KV Singhdeo said that the detailed project report (DPR) of the project was presented to the ministry of urban development, Government of India, Japan Bank for International Cooperation and 12th Finance Commission of Government of India for funding.

Finally, after due approval by the H&UD Department, the project got the financial assistance from different sources, he said, adding, the sewerage system would be developed with the technical assistance from IIT, Roorkee at an estimated cost of Rs 754.23 crore.

… The sewerage system of Bhubaneswar envisages laying of 412 km underground gravity sewer for collection of sewage of each household and establishment throughout the city in uncovered area, replacement and renovation of all existing old sewers, construction of main, intermediate and lift pumping stations, construction of sewage treatment plants and construction of low cost sanitation units in the city area.

The new sewerage system has been planned by diving the city are into six sewerage districts that shall be provided with an independent sewerage network, pumping system, sewage treatment and disposal system.

The sewerage system has been designed for a projected city population of 22 lakh upto 2041.

The project area of 145 sq km includes all wards of Bhubaneswar Municipal Corporation (except wards beyond river Kuakhai) and fringe areas covered under city master plan.

The project will ensure proper treatment of generated sewage in the city area with provision of modern treatment technology like Standard Activates Sludge Process.

The project will provide good and effective sewerage services to the urban population and will reduce non-point sources of pollution. Overall sanitation condition of the city will be improved.

The project has been planned to be implemented by 2011.

The sewer laying work of three districts via sewerage district- I, II and III has been awarded to the East Coast Construction and Industries Ltd, Engineers and Contractors, Chennai through a transparent system.

Following is from http://go.worldbank.org/ZZSH9LSD60.

Orissa has transformed itself from a seriously lagging state to a state in transition

A fiscal correction program based on a consultative approach has helped spur this change

Contacts: In Delhi: Nandita Roy 91-11-24617241 nroy@worldbank.org New Delhi, May 20, 2008: From being the poorest and the most fiscally-stressed state of India in the mid 1990s, Orissa today has made remarkable progress, lifting some 3 million people out of poverty and marking the strongest fiscal turnaround of all Indian states over 2000-06. This recovery means that the state now has freed much more resources to invest in better healthcare, education and basic infrastructure and services for its people.   Significantly, over the past seven years, the state’s primary fiscal balance has been converted from a deficit of 5.9 percent of Gross State Domestic Product (GSDP) to a surplus of 2.8 percent – a correction by 8.7 percentage points.     The forthcoming World Bank study, Orissa in Transition: From Fiscal Turnaround to Rapid and Inclusive Growth, whose main findings werereleased today, highlights that the poverty headcount ratio, after rising during 1993-99, has declined significantly during 2000-2005 by more than 8 percentage points in rural areas and 2.5 percentage points in urban Orissa, compared with 5 and 2 percentage points respectively in India as a whole.   “What is most heartening about Orissa’s economic transition is that growth has been most rapid in the southern region, which was one of the poorest parts of India,” says V. J. Ravishankar, Lead Economist and principal author of the study .  “Compared to just five years ago, rural families in these areas are now spending up to 25 percent more on basic necessities like adequate food, clothing, and schooling for their children. This turnaround carries important lessons for the rest of India as it seeks to ensure inclusive growth for all. We at the World Bank look forward to continuing our support to Orissa in facing its remaining challenges.”   Indeed, Orissa, with over 45 percent of its people still living in poverty, faces several challenges. It is the second poorest state in the country and its large population of scheduled tribes live in isolated areas, with minimal access to basic infrastructure and services. Although, according to latest available National Sample Survey data on household consumption expenditures, large portions of the state’s population, including scheduled castes, have improved their incomes since 2000, the poorest 40 percent of the population has gained much less than the better-off 60 percent. Most of the state’s scheduled tribes are part of this poorest 40 percent and continue to lag behind. However, according to the Study, if the state can consolidate the gains of its fiscal turnaround, and devote more public resources to development, it may be able to address these challenges effectively.   The World Bank study points out that the state’s accelerated growth since 2000 has been across sectors and can hence be potentially more robust and sustainable. According to official data on GSDP with 1999/00 as base year, most of Orissa’s economic sectors have grown faster than all-India since 2003-04, with industry (mining, manufacturing, electricity and construction) growing at around 20 percent annually and services at close to 10 percent. Even, agriculture, which was beset by recent drought, has now recovered and is keeping pace with the rest of India, growing at an average of 2 percent.    The State today has a US$ 125 billion portfolio of 470 ongoing investment projects that are projected to generate an additional GSDP of US$ 35 billion; this alone is twice the size of Orissa’s GSDP in 2006. This level of investments suggests that Orissa may experience a period of even more rapid growth in the future.    Among the factors that have helped the turnaround, the Study highlights the importance of adopting a consultative approach to fiscal correction, and of a strong government resolve to accelerate project completion in the face of a resource crunch. These, coupled with policy reforms at the Centre have helped Orissa achieve accelerated economic growth. The Study points out that the state government’s Zero-Based Investment Review which focused on outcomes, the completion of long-pending infrastructure projects (especially roads and bridges) and the government’s focus on anticorruption and transparency have also had a positive impact on the program.   “The most important lesson from Orissa’s fiscal reform success is the need to take the public into confidence,” says V. J. Ravishankar. “Today, such an open and consultative approach is needed on the question of industrialization and modernization of Orissa,” he adds.       The Challenges Ahead                                         Orissa’s Challenges ahead   ·        Forty percent of Orissa’s poor belong to the scheduled tribe;   ·        Severe infrastructural gaps is hindering progress;   ·        Needs to unleash the potential of agriculture, fishery and forestry to make growth more inclusive;   ·        The health and education sectors are lagging behind  Despite this phenomenal fiscal turnaround and economic acceleration, challenges remain. While some inequalities have narrowed, the scheduled tribes continue to lag behind. Geographical seclusion with negligible out-migration has limited their access to new income earning opportunities, the Study says.   Severe infrastructural gaps, unless addressed, will hinder Orissa’s progress. Capacity constraints in the railways have diverted goods traffic to roads and similarly constraints in port capacity have diverted cargo to ports in other states.   In order to sustain such rapid growth and to make it more inclusive, especially for the geographically secluded tribal communities, the study suggests unleashing the potential of agriculture, fishery and forestry, on which most of the poor depend. This requires policy reforms to address problems of excessive trade intermediaries in agriculture and forest produce, lack of connectivity, and a ban on land leasing that has resulted in informal and illegal share-cropping arrangements, which are harmful for the cultivators.   Much also needs to be done in education and health service delivery. At existing learning levels in elementary schools, a large section of youth will grow up without the skills necessary for employment or higher education. Recent studies show that students in Grade Nine have only mastered the learning skills required at Grade Four. Innovative and flexible approaches to healthcare delivery will be also required in order to deliver critical health services to geographically isolated villages.   Orissa has entered the second phase of reforms. Addressing infrastructure gaps should be its most urgent priority for sustaining rapid growth. Addressing human development needs require institutional changes as a prior condition for allocating additional public resources. An 11th Five-Year Plan focused on infrastructure, followed by one devoted to human development, could take Orissa to its ambitious vision of becoming a better-than-average Indian state by 2020 with poverty at or below 10%, the study points out.   The study, Orissa in Transition: From Fiscal Turnaround to Rapid and Inclusive Growth, was conducted over 2007.   The World Bank has been supporting the reforms and development program of the Government of Orissa since 2001, through technical assistance, policy based loans and credits (US$ 350m during 2004-08), and investment projects in energy, health, and water resources management (US$ 360m during 2002-07).  New projects under preparation include investments in state roads, tank irrigation and rural livelihood support through women’s self-help groups (totaling US$ 430m).

Following is an excerpt from a news report in New Indian Express.

Three major roads will be taken up for development in the first year of the phase-1 programme under Orissa State Road Project (OSRP) with World Bank assistance.

The World Bank has agreed to provide funds for improvement of road infrastructure of about 1,400 km with an estimated cost of Rs 1,480 crore.

While the loan component is Rs 1,175 crore, matching fund from the State will be Rs 305 crore. The project will be implemented in five years.

In the first year, 204-km stretch of road will be taken up for improvement. The three road projects which will be developed include the 99-km Chandbali- Bhadrak-Anandpur road, 70-km stretch of Khariar-Bhawanipatna road and 41-km road from Berhampur to Taptapani.

The State has identified five major roads having a length of 835 km for development in the first phase. Detailed project report (DPR) and economic viability and feasibility study of the projects have been completed.

The 152-km road stretch of Jagatpur-Kendrapara- Chandbali-Bhadrak, 138-km Bhadrak-Anandpur- Karanjia-Tongabilla, 213-km Khariar-Bhawanipatna- Muniguda-Rayagada-Kereda, 202-km stretch Berhampur-JK Puri- Rayagada and 127-km Banarpal-Daspalla- Bhanjanagar-Aska road have been finalised for the first phase.

… The 204-km road stretch, that will be developed in the first year, is passing through 160 villages.

The Revenue Department informed the meeting that notification had been issued to the district collectors for land acquisition. Works Department, the nodal agency for the State Road Project, has planned to develop 294 km of roads in the second year.

The Department will submit the first three road projects to the World Bank for approval and sanction of loan, official sources said.

Following is an excerpt from an IANS report that appears in many places including in Earth Times.

The Asian Development Bank (ADB) has agreed in principle to provide loan assistance of Rs.1.2 billion for the Orissa Integrated Agriculture and Water Management project.

Monich Yakoyama, ADB’s senior water management specialist for South Asian countries, …

Yakoyama, who held discussions with senior state officials here today, said that the expert team was studying different small irrigation projects, watershed projects, canal systems and water panchayats and people’s participation in water management.The project plans to involve the maximum number of self-help groups to partner water management for increasing agricultural production.The ADB will release $180 million in the first phase and would supervise implementation of the water management projects on a regular basis. Special care would be taken to rehabilitate families who would be displaced during execution of the irrigation projects.

Pioneer reports the inauguration of Goudia Setu in Brahmagir in remote part of Puri district. Following is a quote from that report.

Brahmagiri Congress MLA Laletendu Bidyadhar Mahapatra on Wednesday inaugurated the Goudia Setu under Rahadmalla panchayat. Built at a cost of about Rs 3 crore with NABARD assistance, the bridge is expected to improve the communication network in this remote part of Puri district.