Archive for the 'RESOURCE MOBILIZATION & BUDGETS' Category

Backward regions grant fund allocations to date

BRGF: Backward districts program, KBK Plus district cluster, RESOURCE MOBILIZATION & BUDGETS Comments Off on Backward regions grant fund allocations to date

Following is from a PIB release.

The Backward Regions Grant Fund Programme(BRGF) was approved in the financial year 2006-07.  The Programme has three components, namely, Special Plan for Bihar, Special Plan for the KBK districts of Orissa and the district component covered by the Backward Districts Initiative of the Rashtriya Sam Vikas Yojana(RSVY) subsumed into the Backward Regions Grant Fund Programme from 2006-07. Special plans for Bihar and the KBK districts of Orissa are handled by the Planning Commission. The allocation under the district component of BRGF consists of two funding windows (a) funds for capacity building of Panchayati Raj Institutions and (b) an untied developmental grant.  According to the extant policy, the districts covered under the Rashtriya Vikas Yojana must complete their allocation of Rs. 45 crore per district under the earlier programme before these shift to the BRGF mode of funding. A statement showing the funds released under these three components, State wise from 2005-06 onwards is annexed.

Release of Funds under BRGF Programme

A.        Special Plans for Bihar and KBK districts of Orissa.

                                                 (Rs. in crore)

   

2005-06

2006-07

2007-08

I. Special Plan for Bihar

536.03

999.99

762.41

II. Special Plan for the KBK district of Orissa

250.00

250.00

 43.33

B.      Backward Districts Initiative- Release of Funds to RSVY districts

Sl. No.

State

Amount released in 2005-06 (Rs. in crore)

Amount  released in 2006-07 (Rs. in crore)

Amount  released in 2007-08 (Rs. in crore)

1

Andhra Pradesh

37.50

82.5

45.00

2

Arunachal Pradesh

7.50

7.5

0.00

3

Assam

7.50

52.5

15.00

4

Bihar

135.00

232.5

30.00

5

Chhatisgarh

90.00

127.5

22.50

6

Gujarat

15.00

37.50

7.50

7

Haryana

15.00

22.5

0.00

8

Himachal Pradesh

15.00

30

15.00

9

Jammu & Kashmir

22.50

22.5

0.00

10

Jharkhand

142.50

315.00

22.50

11

Karnataka

15.00

37.50

0.00

12

Kerala

15.00

15.00

0.00

13

Madhya Pradesh

150.00

135.00

0.00

14

Maharashtra

60.00

90.00

7.50

15

Manipur

15.00

15.00

0.00

16

Meghalaya

0.00

15.00

0.00

17

Mizoram

7.50

15.00

7.50

18

Nagaland

7.50

22.50

0.00

19

Orissa

45.00

45.00

22.50

20

Punjab

7.50

15.00

0.00

21

Rajasthan

37.50

15.00

0.00

22

Sikkim

7.50

22.5

7.50

23

Tamil Nadu

75.00

30.00

0.00

24

Tripura

7.50

15.00

0.00

25

Uttar Pradesh

202.50

300.00

75.00

26

Uttarakhand

22.50

37.50

7.50

27

West Bengal

45.00

60.00

22.50

28

NABARD

3.24

3.30

0.00

TOTAL

1210.74

1818.30

307.50

This information was given by Shri Mani Shankar Aiyar, Minister of Panchayati Raj, Youth Affairs & Sports and DoNER in the Lok Sabha today in a written reply to a question by Shri Arjun Sethi.

 

PPP in Orissa

PPP Comments Off on PPP in Orissa

Business Standard reports about various companies that have shown interest in PPP deal with Orissa government. Following are some excerpts from that report.

Internationally famed consultancy firm Ernst & Young and Kolkata based SREI are among a host of companies that have evinced interest to provide consultancy services for developing projects under Public-Private-Partnership (PPP) in Orissa.

These companies proposed to develop a shelf of projects to be taken up in PPP mode and have sought empanelment with the Orissa government. However, the government is yet to take a final decision on these proposals. Sources said, if it does not find any of the proposals suitable for its needs, the government may go in for an open bidding for selection of consultants.

… on the proposals of Ernst and Young and SREI.

Both the firms proposed to develop concepts to make the PPP projects attractive and investor friendly for the bidders.

Orissa had earlier entered into an arrangement with IL&FS as per which both shared the cost of developing the project up to the viability stage equally among them selves. This cost is later recovered from the successful bidders. Ernst & Young and SREI, however, have proposed not to charge anything for rendering consultancy service at the initial stage. They will only collect 1 percent of the project cost as their fee from the successful bidders of projects which actually get implemented.

This proposal is viewed favourably as the government does not have to bear any cost for failed projects as the expenditure incurred for these projects is borne by the consultants. The proposals are considered significant as in most cases, the potential investors are unwilling to take up projects in sectors like roads, ports, bridges citing their unviability as a major cause of concern.

Return on investment is the predominant factor in assessing the viability of the projects under PPP. Though there is a central scheme for viability gap funding up to 20 percent of the project cost from the Union government and the state government can also contribute some funds towards bridging the gap, in most of the cases the gap is too wide to be bridged.

Severeal IT townships possibly with IITs and IIMs are in the offing

INVESTMENTS and INVESTMENT PLANS, IT, PPP, REAL ESTATE, Satellite and Residential townships, SEZs, STPs Comments Off on Severeal IT townships possibly with IITs and IIMs are in the offing

Economics Times reports on such an effort. I hope Orissa government is aware of this and is making pitches for one of the locations in Orissa. Following are excerpts from the Economic Times report.

THE government is planning to build 6-7 new IT townships, called knowledge townships, close to major urban centres and international airports. The residential townships will be based on the walk-to-work concept. This means the professionals working there will be encouraged to live close to the workplace.

The companies setting up units in the townships may be extended tax sops under either the software technology park (STP) or special economic zone (SEZ) scheme. Each township would have a minimum 10-hectare (1 hectare = 2.471 acres) built-up area to make it compliant with FDI rules relating to investment in real estate. Each township is likely to entail an investment of Rs 500-650 crore, depending on the area.

A committee comprising members from the PMO, ministry of IT & telecom, urban development, civil aviation, Dipp along with Nasscom has identified several areas for setting up the knowledge hubs.

Sources in the committee said that these proposed townships will be extension of satellite towns like Gurgaon (to be called Gurgaon Plus). Similarly the township near Mohali will be called Mohali Plus. The first of these new townships is expected to come up by 2012 and the rest by 2015.

… services like IT and BPO will be encouraged in these units.

Many domestic and foreign real estate players have expressed interest in owning land and build such townships.

“We want each township to be FDI compliant so that they can attract foreign expertise,” a senior DIPP official said. Every township would be a special purpose vehicle where states and developers would have stakes.

Urban development secretary M Ramachandran said that his ministry would advise the committee on facilities like water, electricity, drainage and other civic facilities. “We will also help in developing the structures,” he said.

“The townships may also have an IIT/IIM or such academic institutions to build an ecosystem. For tax sops, we are pushing for extension of STP scheme else the companies can also opt for SEZ status,” said Nasscom president Kiran Karnik. The townships will come complete with educational, recreational/amusement and healthcare infrastructure.

“The basic reason for proposing such townships is the existing saturation in real estate and infrastructure amongst existing IT hubs,” Mr Karnik added.

Gurgaon real estate rentals have shot up meteorically in the recent past while Bangalore doesn’t have any real estate. …

Currently, Mohali, Mysore, Noida and Gurgaon have come up as satellite townships to major state capitals, most of which have international airports.

… SEZs offer a five-year 100% tax exemption with two subsequent five-year exemptions of 70% and 50% to units.

Orissa Govt. Plans IT-enabling of Govt. services

DFID UK, E-governance, Foreign funding, Restructuring PSUs, Websites of Interest Comments Off on Orissa Govt. Plans IT-enabling of Govt. services

New Indian express reports that Orissa Govt has started The Orissa Modernising Government Initiative (OMGI) . This will be utilising IT in a more effective way. The Whole project is funded by DFID. Excerpts:

The Orissa Modernising Government Initiative (OMGI) seeks to address these and much more effectively. A State Government initiative, the project is being funded by DFID and would be completed by December 2008. It envisages rationalisation of the role of the State Government to focus on the most critical goods and services and reach out to the poor in a way that benefits them from its policies.

Besides, it aims to enhance the effectiveness, transparency and accountability with which the government performs its role.

The contours of the project was presented to Chief Secretary Ajit Kumar Tripathy by OMGI officials here on Wednesday. Its uniqueness lies in the fact that it exploits the benefits of IT to speed up delivery of public services and make them more transparent.

It also empowers the common men and gives them enough scope to ventilate their grievances to mandarins. Reengineering of the tools and procedures of the government departments would be one of its prime concerns.

Government officials can equally benefit from it. They would have access to service book, keep track of their career growth, leave sanction, transfer and posting. Each staff right down the ladder would be provided with a password.

Dissemination of government rule and procedure, citizen charter and performance data would be in vogue. Disclosure of information in a transparent manner to public on various procurements, allocations and awarding of tender would also be a reality.

Even candidates can review job posting, apply online and have access to employment news, views and service rules.

The reform measures would not be confined to the Secretariat alone. Revamping of the administration at the district-level would also be taken up. Human resource management would form a key component of the programme. Further, OMGI would intervene in other sectors like housing and urban development, health, education, industries and take up district modernisation and litigation management among others.

Centre will light up all villages by 2009: Sahu

Budget, Central, Central grants, Central programs, PMGY, Remote Village Electrification Programme, RGGVY, Rural electrification 1 Comment »

New Indian express reports that all villages in Orissa will be lighted up by 2009.

Excerpts of the report are as follows:

By 2008-end, all the villages in Orissa would be provided with electricity, said Union Minister of State for Rural Development Chandrasekhar Sahu.

He was launching the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) for Ganjam and Gajapati districts here on Thursday. He said the implementation of RGGVY in the State had been entrusted to three organisations which would supply power to every village unconditionally.

Earlier, power was supplied to the villages with more than 300 households, but the Union Government under RGGVY has decided to supply power to all the villages irrespective of number of families, he added. While the Power Grid has been entrusted with electrifying 12 districts, NTPC will electrify an equal number of districts.

The electrification of the rest six has been entrusted to NHPC, he said and added all the below poverty line families would be supplied electricity free of cost. He said the Centre is providing 90 per cent capital subsidy and the rest 10 per cent in terms of soft loan to the State Government for implementation of the programme. The Minister said 3,162 villages in Ganjam and 1,512 villages in Gajapati would get power by 2008.

D.K.Roy, Orissa in-charge of NHPC, said his organisation has been given the task of electrifying Ganjam, Gajapati, Boudh, Puri, Rayagada and Kandhamal districts. In the six districts 4,91,520 BPL families would be provided with power at an estimated cost of Rs 660.18 crore.

He said the electrification drive would be in two packages. In the first package, 55,000 BPL families in Ganjam would be supplied power at an estimated cost of Rs Rs 52.17 crore and in the second package another 57,263 BPL families would get power at an estimated cost of Rs 46.56 crores.”

DFID (UK) funding for Orissa government

DFID UK, Foreign funding, Restructuring PSUs 1 Comment »

New Indian Express reports on this. Following are some excerpts.

The Department for International Development (DFID) of UK has agreed in principle to provide Rs 228.6 crore (30.487 million pounds) to the Orissa Government for the public enterprises reform programme.

Out of this, 29.8 million pounds would be provided to the State Government in the form of financial assistance and 0.687 million pounds would be given under technical cooperation grant.

The budget provision under the State plan is meant for redundancy payment to the employees of the public sector undertakings (PSUs), 80 per cent of which is reimbursed by the DFID.

Since the start of the Orissa Public Enterprises Reform Programme (OPERP), the State Government has reimbursed Rs 240 crore from the closure of 11 enterprises and more than 32,000 workers have availed of VRS during the period. The State Government has set a target of restructuring four units and privatisation of two PSUs during the next financial year.

The units to be restructured are Orissa State Seeds Corporation, Orissa State Civil Supplies Corporation and Orissa Forest Development Corporation. Besides, the OSCARD bank, Tribal Development Cooperative Corporation of Orissa, Orissa Bridge and Construction Corporation, Orissa State Cashew Development Corporation, Orissa State Housing Board and Orissa Agro Industries Corporation will be restructured in later phases.

Independent studies are also being conducted to assess the post-reform outcome for Orissa Lift Irrigation Corporation, Orissa State Finance Corporation and Orissa Construction Corporation.

Orissa’s plan regarding more prospecting

MINES and MINERALS, Mining royalty Comments Off on Orissa’s plan regarding more prospecting

Financial express reports on this. Following are some excerpts.

‘We are planning to take up further exploration of mineral resources with a view to accessing the deposits of different ores’’, says … Padmanabha Behera. …

Geologists in the state believe that estimates of proven deposits are only the tip of the iceberg. …

As per the present estimation of the state directorate of geology, Orissa has 4,177 million tonnes (mt) of iron ore, 1,530 mt of bauxite, 60,983 mt of coal, 2,224 mt of limestone and 111 mt of chrome ore. …

The state government has signed memoranda of understanding (MoU) with 44 steel companies for an investment of Rs 1.97 lakh crore for built-up steel-making capacity of 74.66 mt. As many as 25 companies have gone in for production. Besides, 13 MoUs in the power sector, four in the aluminium sector have also been signed. …

Iron ore deposits have been explored up to 25 to 30 metre depth and the government is contemplating deeper exploration, he added.

J N Das, an expert on Orissa minerals, however, cautioned the state government that mining of iron ore below 25-30 metres would not be economically viable.

‘‘Oxidisation is the ultimate cause of the precipitation of iron oxides in the upper crust. Two rules which govern the fixation and mobilisation of iron in aqueous solution are: (1)oxidising conditions promote the precipitation of iron ore, reducing conditions promote the solution; (2)acid conditions generally promote the solution of iron, alkaline conditions and promote the precipitation of iron. Thus, iron ore is accumulated towards the surface. Iron ore is not expected below banded iron silica rocks (BHQ/BH)/Quartzite in a normal deposit cycle. Even if it occurs due to structural disturbances like folding etc., it can’t be mined economically for use in steel industries”, he says.

The government is also preparing a mining policy with emphasis on maximum value addition in the state, optimum use and conservation of minerals. The policy will also encourage further exploration of existing mines and ew deposits.

‘‘Once the Centre announces its mining policy on the basis of the Hoda Committee report, the state will put in place its first-ever mining policy’’, says the steel and mines minister.

The state is at present following the policy of value addition for recommending mining lease for companies. It is in favour of a ban on export of iron ore, which has touched 17 m.t out of the total production of 61 m.t in 2006-07. 

Orissa growth rate greater than National average in 10th 5 year plan.

AGRICULTURE & FARMING, INDUSTRY and INFRASTRUCTURE, INVESTMENTS and INVESTMENT PLANS, MINES and MINERALS, RESOURCE MOBILIZATION & BUDGETS, THINGS ODISHA N ODIA 5 Comments »

Financial express reports that Orissa growth rate for the current year is better than national growth rate. National Industrial growth rate increased at 6.93% for the 11th plan period while in Orissa the growth rate was 11.34%. Simultaneously, while agricultural growth rate in the National context was 1.03% , in Orissa the growth rate was 3% across the 10th 5 year plan period. The overall growth rate was 7.3% for orissa as opposed to National growth rate of 6.5%. Excerpts from the article are as follows:

‘‘The growth rate of Orissa ws 7.3 % during the 10th plan period against the national average of 6.5%,’’ state finance minister Prafulla Ghadei said while replying to the discussion on Appropriation Bill in the state assembly.

Ghadei said the state was on growth path due to the strict fiscal discipline maintained by the government after Patnaik took over the reigns. ‘‘While the growth rate during the previous Congress regime was below the national average in 9th plan period, it increased in the 10th plan period,’’ he said.

Seeking to justify his argument, the finance minister pointed out that while national growth rate in agriculture was 1.03% during the 10th plan period, it was 3% in Orissa which was higher than many other states in the country.

While the national growth rate in industrial sector was confined to 6.96% in the 10th plan period, it was 11.34 % in Orissa, he said quoting what he claimed data obtained from the national sample survey. ‘‘Isn’t it an achievement of the Orissa government,’’ Ghadei asked the opposition, which earlier described the government as ‘non-performing’’. Referring to poverty, Ghadei said Orissa was ahead of neighbouring states like Jharkhand and Bihar in controlling poverty.”

The above reports prove a point that the state has gone beyond signing MOUs and creation of fruitful economic activity in the state, since that is reflected in the survey results.

We just need fruition of the big ticket investments which will result in even greater growth in the next 5 year plan. A note of caution though, current agricultural productivity is still below National average. A plan needs to be formulated to change the per hectare output in the state.

Mineral Concessions: approval, rejection and in process (as of 13th June 2007)

MINES and MINERALS, Mining royalty Comments Off on Mineral Concessions: approval, rejection and in process (as of 13th June 2007)

From the Ministry of Mines mineral concession web page we have the following data:

  • Currently under process
    • Shri Prabhu Dayal Agarwal ML

      Manganese Ore

      106.133 Hect.

      Query to State Govt. on 24.6.2005. Reminders issued on 3.10.2005, 27.2.2006 and 14.7.2006.

    • M/s. O.M.C. Ltd. ML

      Iron Ore and Manganese Ore

      416.835 Hect.

      Query to State Govt. on 11.9.2006.

    • M/s. Sita Cement Ltd. ML

      Lime Stone and Dolomite

      26.265 Hect.

      Query to State Govt. on 18.4.2006. Reminder on 14.7.2006.

    • M/s. SMC Power Generation Ltd. ML

      Iron Ore

      246.039 Hect.

      Query to State Govt. on 11.5.2007.

    • M/s. POSCO-India Pvt. Ltd. PL

      Iron Ore

      6204.352 Hect.

      Under consideration in Ministry of Mines.

    • M/s. Orissa Mining Corpn. Ltd. ML

      Iron Ore

      1011.5 Hect.

      Under process in MoM.

    • M/s. Action Ispat & Power Pvt. Ltd. PL

      Iron Ore

      235 Hect.

      Under process in MoM.

  • Approvals after 1st April 2007 (3 out of 125 are in Orissa)
    • 19.

      M/s Rungta Mines Ltd. RP

      Gold,Silver and Platinum

      1941 Sq.Km.

      ORISSA

      13/4/2007

    • 20.

      M/s. Sree Metalliks Ltd. ML

      Iron Ore

      35.774 Hect.

      ORISSA

      13/4/2

    • 21.

      M/s. Deepak Steel and Power Ltd. ML

      Iron Ore

      38.687 Hect.

      ORISSA

      13/4/2007

  • Approvals in 2006-07 (6 out of 142 are in Orissa)
    • 14.

      M/s. Neepaz Metalliks Pvt.Ltd. ML

      Iron Ore

      109.791 Hect.

      ORISSA

      1/6/2006

    • 23.

      M/s. Indian Metals & Ferro Alloys Ltd. PL

      Iron Ore and Manganese Ore

      57 Hect.

      ORISSA

      14/6/2006

    • 24.

      M/s. Balasore Alloys Ltd. PL

      Iron Ore and Manganese Ore

      284 Hect.

      ORISSA

      14/6/2006

    • 56.

      Shri Pratap Kumar Mishra PL

      Manganese Ore

      30.44 Hect.

      ORISSA

      22/8/2006

    • 119.

      M/s. Rungta Mines Ltd. RP

      Gold

      1007.612 Sq.Km.

      ORISSA

      2/2/2007

    • 121.

      M/s. Rungta Mines Ltd. RP

      Gold and Platinum

      1818.627 Sq.Km.

      ORISSA

      8/2/2007

  • Approvals in 2005-06 (6 out of 128 are in Orissa)
    • 2.

      M/s. HINDALCO Industries Ltd. ML

      Bauxite

      268.11 Hect.

      ORISSA

      20/4/2005

    • 5.

      M/s. AMIL Mining India Pvt. Ltd. RP

      Precious Stones

      2000 Sq.Km.

      ORISSA

      25/5/200

    • 9.

      M/s. AMIL Mining India Pvt. Ltd. RP

      Precious Stones

      1870 Sq.Km.

      ORISSA

      6/6/2005

    • 10.

      M/s. AMIL Mining India Pvt. Ltd. RP

      Precious Stones

      631.8 Sq.Km.

      ORISSA

      6/6/2005

    • 11.

      M/s. AMIL Mining India Pvt. Ltd. RP

      Precious Stones

      1930 Sq.Km.

      ORISSA

      6/6/2005

    • 12.

      M/s. AMIL Mining India Pvt. RP

      Precious Stones

      550 Sq.Km.

      ORISSA

      6/6/2005

    • 82.

      Shri Saligram Khirwal PL

      Iron Ore and Manganese Ore

      93.741 Hect.

      ORISSA

      26/9/2005

  • Approvals in 2004-05 ( 4 out of 119 in Orissa)
    • 11.

      M/s. AMIL Mining India Pvt. Ltd. RP

      Base Metals,Precious Stones and Associated Minerals

      2600 Sq.Km.

      ORISSA

      19/7/2004

    • 40.

      M/s. N.M.D.C. Ltd. PL

      Heavy Mineral Sand,Rutile,Siliminite and Garnet

      665.883 Hect.

      ORISSA

      3/9/2004

    • 44.

      M/s. Orissa Mining Corporation Ltd. ML

      Bauxite

      1073.389 Hect.

      ORISSA

      13/9/2004

    • 47.

      M/s. FAC0R Ltd. ML

      Platinum

      187.03 Hect.

      ORISSA

      28/9/2004

  • Approvals in 2003-04 ( 17 out of 121 in Orissa)
    • 14. M/s. Phelps Dodge Exploration India Pvt. Ltd. RP Copper, lead, zinc, gold, silver, cobalt nickel and associated minerals 3409.80 Sq. Kms. Orissa 30.5.2003
    • 15. M/s. A.C.C. Rio Tinto Exploration Ltd. RP Diamond & associated minerals 1760 Sq. Kms. Orissa 30.5.2003
    • 16. M/s. BHP Minerals India Pvt. Ltd. RP Nickel, copper, lead, zinc, gold & associated minerals 2605 Sq. Kms. Orissa 30.5.2003
    • 17. M/s. BHP Minerals India Pvt. Ltd. RP Nickel, copper, lead, zinc, gold & associated minerals 2435 Sq. Kms. Orissa 30.5.2003
    • 52. M/s. ACC Rio Tinto Exploration Ltd. RP Diamond and associated minerals 798 Sq. Kms. Orissa 30.7.2003
    • 68. M/s. Mangalam Carbide Ltd. PL Bauxite 93.767 hects. Orissa 27.8.2003
    • 71. M/s. ACC Rio Tinto Exploration Ltd. RP Diamond & associated minerals 1360 Sq. Kms. Orissa 28.8.2003
    • 72. M/s. ACC Rio Tinto Exploration Ltd. RP Diamond & associated minerals 265 Sq. Kms. Orissa 28.8.2003
    • 77. Shri Dhiranirod Paida PL Iron and manganese 7.31 hects. Orissa 10.9.2003
    • 85. Sri Santi Bardhan Mishra PL Iron & manganese ore 18.240 hects. Orissa 24.10.2003
    • 86. Shri Jitendranath Patnaik ML Iron Ore 57.50 hects. Orissa 24.10.2003
    • 104. Shri K.C. Pradhan ML Iron ore 27.794 hects. Orissa 5.12.2003
    • 105. Shri Miter Sen ML Manganese ore 21.347 hects. Orissa 5.12.2003
    • 106. M/s. Saraf Aencies Ltd. of Chariat Cement Co. ML/relaxation Limestone and dolomite 33.104 hects. Orissa 5.12.2003
    • 119. M/s. Hindalco Industries Ltd. PL Bauxite 239.053 hects. Orissa 6.1.2004
    • 120. M/s. BHP Minerals India Pvt. Ltd. RP Nickel, copper, lead, zinc, gold & associated minerals 2249.071 Sq. Kms. Orissa 6.1.2004
    • 121 M/s. BHP Minerals India Pvt. Ltd. RP Nickel, copper, lead, zinc, gold & associated minerals 1278.160 Sq. Kms. Orissa 6.1.2004
  • Approvals during 2002-03 ( 24 out of 135 are in Orissa)
    • 2. Shri Bimal Prasad Patnaik PL Iron and manganese ore 68.00 hects. Oissa 3.4.2002
    • 3. M/s. Usha (India) Ltd. PL Iron and manganese ore 60.00 hects. Orissa 3.4.2002
    • 4. Shri Prabodh Mohanty PL Iron and manganese ore 61.00 hects. Orissa 3.4.2002
    • 5. Shri Jitendranah Patnaik PL Iron and manganese ore 52.00 hects. Orissa 3.4.2002
    • 6. M/s. Utkal Mining & Sales (P) Ltd. PL Iron and manganese ore 65.00 hects. Orissa 3.4.2002
    • 7. M/s. Sun Alloys & Mining Ltd. PL Iron ore 77.00 hects. Orissa 3.4.2002
    • 8. M/s. Sun Alloys & Mining Ltd. PL Iron Ore 25.00 hects. Orissa 3.4.2002
    • 17. M/s. De Beers India Minerals Pvt. Ltd. RP Diamond & associated minerals 2000 Sq. Kms. Orissa 19.4.2002
    • 18. M/s. De Beers India Pospecting Pvt. Ltd. RP Diamond & associated minerals 2000 Sq. Kms. Orissa 19.4.2002
    • 19. M/s. De Bees India Minerals Pvt. Ltd. RP Diamond & associated minerals 2000 Sq. Kms. Orissa 19.4.2002
    • 20. M/s. De Beers India Prospecting Pvt. Ltd. RP Diamond & associated mineals 1880 Sq. Kms Orissa 19.4.2002
    • 21. M/s. De Beers India Prospecting Pvt. Ltd RP Diamond & associated mineals 1733 Sq. Kms. Orissa 19.4.2002
    • 22. M/s. Prakash Industries Ltd. PL Iron & manganese ore 95.00 hects. Orissa 19.4.2002
    • 29. M/s. Indian Rare Earths Ltd. RML/condition Ilmenite & associated minerals 2618.49 hects. Orissa 20.5.2002
    • 38. Shri Naresh Kumar Agrawal PL Iron & manganese ore 32.045 hects. Orissa 12.6.2002
    • 42. Smt. Meenati Mohanty PL Iron ore 38.22 hects. Orissa 26.6.2002
    • 48. M/s. Orissa Sponge Iron Ltd. ML Iron ore 459.00 hects. Orissa 17.7.2002
    • 74. M/s. Mangilal Rungta ML/inclusion Iron Ore 715.637 hects. Orissa 13.9.2002
    • 85. M/s. AMIL Mining India Pvt. Ltd. RP Copper, lead, zinc (basemetals), precious stones & associated minerals 128.06 Sq. Kms. Orissa 1.10.2002
    • 87 Shri Tarini Prasad Mohanty ML Iron & manganese ore 48.117 hects. Orissa 9.10.2002
    • 102. Shri Vijaya Kumar Ojha PL Iron & manganese ore 14.00 hects. Orissa 3.12.2002
    • 103. Shri Banwari Lal Newatia PL Iron & manganese ore 20.00 hects. Orissa 3.12.2002
    • 104. M/s. Mayur Electro Cermics Pvt. Ltd. PL Iron & manganese ore 46.00 hects. Orissa 3.12.2002
    • 112. Shri K.C. Pradhan ML Manganese Ore 16.791 hects. Orissa 8.1.2003
  • Approvals during 2001-02 (8 out of 114 are in Orissa)
    • 26. M/s. Nava Bharat Ferro Alloys Ltd. ML Chromite 84.881 hects. Orissa 9.7.2001
    • 40. M/s. M.G. Mohanty ML Iron Ore 14.00 hects. Orissa 26.9.01
    • 41. M/s. M.G.M. Mohanty ML Iron Ore 28.397 hects. Orissa 26.9.01
    • 62 M/s. OMDC Ltd. 2nd RML/ relaxation Iron and manganese ore 1276.79 hects. Orissa 26.11.2001
    • 64. Shri Jitendranath Patnaik ML Iron Ore 4.916 hects. Orissa 19.12.2001
    • 111. M/s. Neelachal Minerals Ltd. PL Iron & Manganese Ore 27.98 hects. Orissa 27.3.2002
    • 112. Shri K.B. Pahi PL Iron, Manganese & Bauxite 205.50 hects. Orissa 27.3.2002
    • 113. Shri K.B. Pahi PL Iron, Manganese & Bauxite 226.26 hects. Orissa 27.3.2002
  • Approvals during 2000-01 (19 out of 176 are in Orissa)
  • Approvals during 1999-2000 ( 19 out of 219 are in Orissa)
  • Approvals during 1998-99 ( 35 out of 339 are in Orissa)
  • Rejections
  • Approval for aerial prospection of large areas

Orissa’s objections to the Hoda committee recommendations on national mines policy

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Following are some of the objections raised by CM Naveen Patnaik on the Hoda committee recommendations on national mines policy. These are excerpts from a Statesman article.

  • The recommendations of the committee treat the nation as a unit instead of the state, as far as value-addition is concerned. This means that ore from Orissa can go to any other part of the country to feed the industries of that particular state.
    If this is the case, what would happen to the jobs and the revenue that ought to have developed in Orissa, and why would a Posco or a Mittal come to Orissa to set up industries, the CM remarked.
  • The Hoda Committee has also recommended that the export of ore should be freely allowed, at least for the next 10 years. This is again contrary to the principle that the export of ore should be phased out. Moreover, the export duty goes to the coffers of the centre and the royalty earned by the state is a pittance, Mr Patnaik observed.
  • It seeks to abolish the provision, which empowers the state to recommend the cases of applicants who want to set up industries, without sticking to the first come first serve principle. The Centre has to be vested with powers to allot the mines to anybody, without value additional within the state as is the policy in Orissa now. The state governments are the custodians of the minerals located within their boundary and therefore any attempt to take away this right by the centre is unconstitutional, the CM charged.
  • Another objectionable recommendation is that there should be seamless transition from reconnaissance permit to prospecting licence and further to the grant of mining lease.

Mine reserves; mining leases; revenue from mines: from Pratisruti Plus May 1-15 issue

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Following are some tables from Pratisruti Plus May 1-15th issue.

mineral-reserve.JPGmining.JPG

Orissa’s road masterplan

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Financial Express has a nice comprehensive report on Orissa’s road master plan. Following are excerpts from that report.

The plan will require an investment of over Rs 5,000 crore in the next five years.

We have decided to develop road infrastructure required for facilitating investments in mineral-based industries, IT and tourism, state works minister, AU Singhdeo, said. Roads are essential for efficient and cost-effective movement of commodities… and the government is working towards development of road sectors with specific focus on certain roads, he added.

The government has given top priority to three roads in the state. It proposes to upgrade the 91-km Naranpur-Brahmanipal-Dubri single lane into double lane with an investment of Rs.302 crore. This road is important as it will connect the mineral-rich Keonjhar district with the biggest industrial hub at Dubri in Jajpur district.

Then improvement of the 82-km Cuttack-Paradeep road will be undertaken with an investment of Rs 218 crore. This road will provide round ribbon transport network to the Posco India’s 12 million tonne mega steel project.

The 165-km Rourkela-Sambalpur road will be upscaled to four-lane under public-private- partnership (PPP).

The government has almost finalised a Rs 2,121 crore loan negotiation with the World Bank to undertake the Orissa State Road Project in the next five years from this fiscal. A total of 906 km of important corridors with high-density traffic have been identified under the Project. For development of road connectivity to places of tourism importance, the government has taken up seven projects with an investment of Rs 46 crore this fiscal. The Puri bypass road, Dhenkanal-Kapilash, and Padampur-Paikmal are been included in the list.

Finding some of the high-density traffic carrying important roads in industrial belt commercially viable for development under PPP, the government has lined up at least seven projects for development under BOT (built, operate and transfer) scheme. It has also floated the idea of connecting the industrially-active port town of Paradip with the state capital Bhubaneswar by laying a direct road of 93.5 km with an investment of Rs 562 crore.

The Ring Road will provide an alternative corridor to Natioanal Highway 60 for unhindered movement of vehicular traffic and decongest the township of Cuttack, Bhubaneswar and Khurda. Also in the list of BOT scheme are Joda-Bamebari, Koira-Rajamunda, Suakati- Dubuna in Keonjhar district and Sambalpur-Rourkela road projects.

From Samaja: Reactions from Orissa on the mining policy recommended by GOM

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Following is from Samaja epaper. It gives the reaction of Orissa on the mining policy recommended by the GOM.

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20070708a_011101002-ironore2.jpg

Miner’s view on iron ore export duty

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Livemint reports the view of miner’s on the iron ore export duty levied by many states. Following are excerpts of that report.

Miners on 8 July demanded the duty on iron ore exports be rolled back, saying it could result in revenue loss of Rs4,554 crore if exports slumped by 30%.
“Iron ore export duty has since been reduced to Rs50 a tonne on fines of 62% and below only. In this context, we feel export duty has achieved none of its objectives,” …

… said there could be a revenue loss of Rs4,554 crore in case of a 30% reduction in exports and a loss of Rs2,642 crore in case exports dipped 20%.

“We also feel imposition of export duty will roll back and throttle all initiatives taken by the mining industry. In fact, ore exporters are losing between Rs200 to Rs300 a tonne owing to rupee appreciation,” …

… argued that the current system of computing the mineral royalty ad valorem is unreasonable. He sought its abolition and suggested the government instead introduce a ‘fixed price’ method to calculate royalty.

Besides the royalty, mineral-rich states have imposed an additional burden on mining industry by levying land tax and peripheral development tax, Sahni said and pointed out that the Jharkhand government has levied land tax at 5% of the commercial value whereas Orissa government has asked the miners to pay 5% of their annual profits for the peripheral development fund.

Similarly the Rajasthan government also has levied mineral-wise land tax at rates varying from Rs10 to Rs100 per sq m, Sharma said. “We feel prima facie, such taxes are not legally in line with the provisions of MMDR Act and may deserve reconsideration,” he pointed out.

Low spending on exploration, delays in clearing applications and difference in fiscal policies pursued by the Centre and states were key impediments to foreign investment in the mining sector. Baldota said the government would have to expeditiously clear applications for prospecting licences and reconnaissance permits.
“The emphasis should be to increase the mineral production rather than enhancing the rates of royalty as being advocated by the states. While computing royalty on ad valorem basis, states add 20% of benchmarked value in royalty to be paid by the miners,” Sahni said.

“This practice is not reasonable and has no basis,” he said. “FIMI would like to request the Mines Ministry for deletion of 20% of the benchmark value in the royalty payable by the mine owners,” he said.

Baldota said no mining lease should be granted without first granting prospecting licence and ensuring prospecting operations within the granted area are duly carried out.

The FIMI is of the opinion that leases which are due for renewal and have total surface area of up to 50 hectares should not attract the provision of public hearing that environmental clearance should not be insisted upon for prospecting licence as the forest degradation at this stage is nil or minimal, he added.

The miner’s demands as stated above is completely against the interest of states.

Salient points of the recommended new mineral policy

Coal, Iron Ore, MINES and MINERALS, Mining royalty, R & R, Steel, Value Addition Comments Off on Salient points of the recommended new mineral policy

The economic times reports that the new mineral policy has been announced. Excerpts are mentioned in another post. Here, we list it’s salient features.

  • The GoM has accepted the views of the mining industry while recommending no changes in the guidelines for exports.[This decision supports POSCO’s case for captive mines]
  • More powers provided to state government. The state governments will be able to give preference to companies undertaking value addition within the state while allotting iron ore mines. This will reduce standalone mines.
  • The policy will provide captive mines to all steel units in operation up to July 2006.[I’m not sure about it’s implications for POSCO]
  • The policy will now aim towards procedural simplification for attracting investments in the sector.
  • It will also benefit the states as under the new policy, the present system of specific rate royalty will shift to ad valorem rate of 7.5%.[This will have great benefits for Orissa and other mineral rich states]. Once notified, the proposal will increase royalty earnings by almost six times.
  • The states sitting over mining applications of companies will be penalised as delays will transfer their powers to the Centre.
  • Another important aspect of the new policy is that a process of competitive bidding can be initiated for allocation of captive coal blocks. This is presently done by a screening committee within the coal ministry. The bidding process will also be started for all other major minerals.
  • Besides, the government will auction mining areas where full prospecting has to be done.
  • Companies will have to earmark 3% of turnover for undertaking rehabilitation and resettlement of displaced people under a sustainable development model. However, the ministry of environment and forests will work out fresh guidelines separately to introduce environment-friendly mining practices in the industry.

The economic times states that mining areas will be auctioned for prospecting but the Telegraph says that Auctions mean global giants such as Posco and ArcelorMittal will not be allowed to negotiate for leases with Jharkhand and Orissa on the basis of plans for units in these states. Of course, this statement is speculative. But the states need to be careful before agreeing to this proposal.

Perhaps, We will have to wait and watch for the final notification on the policy.

GOM’s receommendation on the National Mineral Policy

Coal, INDUSTRY and INFRASTRUCTURE, Iron Ore, MINES and MINERALS, Mining royalty, POSCO, Steel Comments Off on GOM’s receommendation on the National Mineral Policy

Following are excerpts from the Economic Times report on this:

A GROUP of ministers (GoM) on Friday cleared the National Mineral Policy that retains the freedom of mining companies to export iron ore without restrictions on quantity or quality. …

The decision also clears the cloud over Posco’s proposed steel project in Orissa that has proposed to export some portion of ore from its captive mines. The company has proposed the exports to enable it to import high-grade ore required for mixing.

However, in order to facilitate value addition within the country and boost steel production, the new policy has given more powers to the state. The state governments will be able to give preference to companies undertaking value addition within the state while allotting iron ore mines. This will mean standalone mining activities will be disincentivised. However, the entire country will be treated as one economic region and states will have to permit transfer of ore outside the state if no one is willing to put up a plant there.

Moreover, the GoM has decided that a balanced policy will be followed while granting captive iron ore mines to steel companies. The policy will, therefore, provide captive mines to all steel units in operation up to July 2006 . It will also benefit the states as under the new policy, the present system of specific rate royalty will shift to ad valorem rate of 7.5%. Once notified, the proposal will increase royalty earnings by almost six times. For example, royalty earnings from iron ore of five ore producing states work out to Rs 250 crore. This will increase to Rs 1,250 crore under the new regime.

However, the new policy will also clip some of the powers of the states. The states sitting over mining applications of companies will be penalised as delays will transfer their powers to the Centre.

Another important aspect of the new policy is that a process of competitive bidding can be initiated for allocation of captive coal blocks. This is presently done by a screening committee within the coal ministry. The bidding process will also be started for all other major minerals.

Besides, the government will auction mining areas where full prospecting has to be done. This will require amendments to the Mines and Mineral (Development & Regulation) Act, 1957, that is likely to be introduced during the monsoon session of Parliament.

Under the new policy, companies will have to earmark 3% of turnover for undertaking rehabilitation and resettlement of displaced people under a sustainable development model. However, the ministry of environment and forests will work out fresh guidelines separately to introduce environment-friendly mining practices in the industry.

PPP pages in the orissa.gov.in site

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The orissa.gov.in site is revamped and now has a lot of information. It has a page on PPP (private-public partnership) which contains the Orissa draft PPP policy and a list of projects in Orissa planned to be funded through PPP.

Centre releases Rs 1346 crore to Orissa under various programmes

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Following is from a Zee News report.

With the aim to accelerate development in rural areas, the Centre has released Rs 1346 crore to Orissa under various programmes in 2006-07, out of which Rs 762 crore has been allocated under the National Rural Employment Guarantee Act covering 19 districts.

During the current fiscal, the Government has so far released Rs 445 crore to Orissa against the central allocation of Rs 614 crore under major allocation based schemes, official sources said.

Under the NREGA, a total 799.34 lakh person days employment were generated, of which 198.06 lakh person days were for SCs, 393.87 for STs, 284.58 for women and 216.41 lakh persons days for others.

A total of 51,521 works were taken up in the state under the programmes, out of which 18,803 works have been completed and 32,718 are ongoing.

During 2007-08, five additional districts have been included under NREGA. Central release is Rs 94.20 crore and total available funds as on April 1, was Rs 263.28 crore, out of which expenditure of Rs 16.52 crore has been reported.

Under Pradhan Mantri Gram Sadak Yojana (PMGSY), the entitlement of Orissa from 2000-01 till 2006-07 was Rs 1,411 crore against which Rs 1804 crore has already been released and Rs 1638.29 crore has been spent by the state government.

Under Bharat Nirman programme, 2312 habitations of 1000 plus population and 2135 habitations of 500 plus population are proposed to be covered and 9993.36 km road is proposed to be constructed under it in Orissa, they said.

Orissa Road Master Plan

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New Indian express reports that a road master plan with focus on backward regions is in being finalized for Orissa.

Some projects which are worth mentioning are Motu- Jeypore road in the Viayawada-Ranchi corridor which will connect to the Vijayawada Ranchi corridor. Another project is the 82- km Cuttack-Paradip road estimated to cost Rs 218 crore.

Tender has been floated for the Khurda-Balangir road for which the Centre has provided Rs 76 crore.

Excerpts:

The Works Department will prepare the master plan jointly with the Rural Development and the Panchayati Raj departments, Works Minister AU Singhdeo informed the Assembly while replying to discussion on his department’s budget on Tuesday.More projects will be taken up under the public-private partnership (PPP) mode as huge investment is required for developing road connectivity and the State Government is unable to generate funds for all the projects. A PPP policy has been formulated which will placed before Cabinet for approval, he added.

Since economic growth of a State largely depends on the road infrastructure, the Government has to reach beyond budgetary support and go for alternative funding of road projects. The PPP mode is the best possible model to arrange private funds for investment in road sector, he said.

Finally center decides to revise coal royalty rates

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Coal royalty rates had not been revised in India since 2002. Financial Express in one of its earlier news item mentions that it is expected to be revised every three years. The delay in its revision resulted in big losses for states like Orissa and Jharkhand. Today’s news of the revised coal royalty rates is a big relief, albeit temporarily. Following are some excerpts from a report in Telegraph.

The cabinet committee on economic affairs today approved an average increase of 14 per cent in the coal royalty paid to state governments. …

“The producing states were demanding an increase in the rates as royalty on coal had not been revised since 2002,”Chidambaram said.

He added that the increase in revenues for the states, barring Bengal, would be 24 per cent for coal and 27 per cent for lignite. “The revenues of the coal-producing states will increase to Rs 3,718 crore from Rs 3,000 crore,” he said.

Following are excerpts from a Hindu report which mentions how much more states like Orissa and Kharkhand will get and the rationale behind the increase.

In a further explanation of the rationale for revision, Mr. Chidambaram said: “It is contended [by States] that while coal companies have been revising the prices frequently and since the royalty rates are fixed on tonnage basis, the benefit of higher prices has not been shared with the producing States. Consequently, the share of royalty as a percentage of coal prices has declined.” …

As for the increase in revenue for the coal producing States, it would be Rs. 152 crore for Jharkhand, Rs. 133 crore for Madhya Pradesh, Rs. 105 crore for Andhra Pradesh, Rs. 98 crore for Chhattisgarh and Rs. 90 crore for Orissa, Rs. 89 crore for Maharashtra and about Rs. 43 crore for Uttar Pradesh. In the case of Tamil Nadu which produces lignite, the State Government could expect the revenue from higher royalty to go up by Rs. 28 crore to Rs. 130 crore.

Although, this overdue increase is a welcome step, to address this for the long term the royalty calculation must change to ad valorem basis which automatically reflects the change in the market price and thus minimizes the need to depend on the center for an increase in the rates. In particular, ad valorem royalty rate of coal means that the royalty rates will move with world coal prices. Hindu Business line has an article related to this.

Agricultural export zone in Orissa

AEZ: Agricultural export zone, AGRICULTURE & FARMING, Coffee development, Cold storage, Exports, Ginger, Kandhamala, Koraput, Marine products, Mayurbhanj, Organic turmeric, Sal 3 Comments »

New Indian Express reports that the central govt. has suggested that Orissa apply for an agricultural export zone. Following are excerpts from that article.

Union Minister of State for Commerce Jairam Ramesh on Tuesday hinted that an Agriculture Export Zone (AEZ) in Orissa could be considered once the proposal for the same was received by the Centre.

Ramesh, who met Chief Minister Naveen Patnaik at the Secretariat, told reporters that the AEZ would be established in Kandhmal for organic turmeric. …

The State Government has already identified land for establishment of the AEZ in Kandhmal where a majority of the tribals cultivate organic turmeric.

Ramesh said that he requested the Chief Minister to concentrate more on export of organic coffee from Koraput, ginger and turmeric from Kandhmal and Sal from Mayurbhanj which could generate more employment opportunities.

The Union Minister said that Orissa exported goods worth Rs 10,400 crore last year, 90 per cent of which accounted for minerals only while the handicraft and other non-traditional products had a very negligible share.

Though Orissa is known for its famous handicraft, the export of such products stood only at 3 to 4 per cent of the total export of the country. Ramesh said the State had exported marine products to the tune of Rs 350 crore last year adding that this has to cross Rs 1000 crore in the next five years.

The Centre, he said, would sanction a cold storage for perishable products in Bhubaneswar and another for marine products in Paradip soon.

BHP Bilton eyes orissa

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Various Interational journals( forbes,Hemscott,Abcmoney,Reuters UK) have reported that BHP Bilton is buying a stake in a mining unit Ashapura Minechem Ltd.The stake will be 51%. This provides a backdoor entry for BHP Bilton into Orissa. Earliar it tried toi bid in Sesa Goa. BUt that stake was taken by Vedanta group.

BHP Billiton Ltd./Plc. (BHP.AX: Quote, Profile , Research) (BLT.L: Quote, Profile , Research), the world’s biggest mining group, is in talks to buy a 51 percent stake in an Indian alumina project, the Business Standard newspaper said on Monday.Indian mining and mineral firm Ashapura Minechem Ltd. (ASHM.BO: Quote, Profile , Research) will hold the remaining 49 percent in the 25-billion-rupee ($614 million) project in the eastern state of Orissa, the paper said, quoting unnamed sources.The two partners will invest 8 billion rupees towards equity and the remaining 17 billion will be raised through debt, it said.The spokesman for Mumbai-based Ashapura could not immediately comment on the report.In May, an official at Ashapura had said it was bidding for a bauxite mining lease in Orissa.

The Business Standard reported quoted Managing Director Chetan Shah as saying that it would take three months for government approval, and the project would be commissioned by next year.

But he declined to identify a likely partner, the paper said.

Ashapura has a tie-up with China’s Qingtongxia Aluminium Group for a 25-billion-rupee alumina refinery project in the western state of Gujarat. Construction work is scheduled to start in November. ($1 = 40.7 rupees)

There are currently no plans for a Aluminium plant at this stage though.

Goudia Setu inaugurated in Brahmagiri in a remote part of Puri district

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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.