MINING AND INDUSTRIALISATION UPDATE ORISSAENVIRONMENTAL INFORMATION ON INDUSTRIES AND MINING IN ORISSALIST OF CONTENTSEditorial News Items Public Hearings during Oct 06 Pending Projects with MOEF for Environmental Clearance Pending Projects with MoEF for Forest Clearance Pending Projects with State Government Approved Projects for Environmental Clearance Approved Projects for Forest Clearance Projects In-Principle Stage of Clearance Rejected Projects Clearance Letters Environmental Clearance Letters 25 31 33 35 36 37 38 40 41 1 3 24

Vol. 2, No. 2, October 2006Zones. In addition, 42 approvals and in addition to that, 354 In-principle approvals have been given for setting up of Special Economic Zones in various parts of the country. These zones are going to be spread across thousands of hectares of common lands, forest areas, coastal areas and even on fertile agricultural lands. State Governments are using the draconian Land Acquisition Act, 1984, to acquire land from farmers and pass it on to the companies setting up SEZs. SEZs have been called the biggest land grab policy in history of our nation. Regional protests have been building up against the forceful land acquisition by the State Governments for Special Economic Zone projects. The "incentives" offered to industries under the SEZ Act reveals the nexus between Government and industrialists at the cost of local marginalized people and the environment. Issues of local livelihoods, environmental destruction, revenue loss and labour exploitation have been raised from several quarters. The units inside the SEZ would be free from environmental restrictions. They would be given full exemption from electricity duty and would be exempted from State sales tax, Octroi, mandi tax or any other duty / cess. Moreover, the States must ensure that the basic inputs like water, electricity & other services would be extended to all these units inside the SEZ. Is it not paradoxical that the Government levies numerous taxes on sale of NTFPs like Kendu Leaf (by poor forest dwellers who do this for their sustenance) but exempts the mega industrial projects from all sorts of duty / taxes; is it not ironical that the Government imposes heavy cess & taxes on water and electricity to poor farmers (who are already suffering due to severe water scarcity) but directs the State Government to provide these very resources free of cost to the large industrial units in the SEZ? That SEZs will bring in prosperity and growth to the few rich Urban Indians (who are interested in amassing wealth through investment in SEZ units) and leave behind the rest of the natives of this country in penury is an open secret. As it is rightly said by George Orwell (Animal Farm) - All are born equal but some are more equal than others.. - Editor

Maliparbat Bauxite Mining Project of M/s Hindalco Industries Ltd located in Village Aligaon-Kankaramba in Pottangi Tehsil of Koraput District in Orissa. Utkal Coal Project Block C (3.37 MTPA) of M/s Utkal Coal Ltd., located in village Raijharan, Tehsil Chendipada, District Angul, OrissaEnvironmental protection Group, Orissa 49

EDITORIALThe Government of India have introduced a policy in April 2000 for setting up of Special Economic Zones (SEZ) in the country. The SEZs are specifically delineated duty-free enclaves treated as a foreign territory for the purpose of industrial, service and trade operations. SEZs are supposed to have exemption from customs duties and a more liberal regime in respect of other levies and foreign investment. For creating a hassle free environment, domestic regulations, restrictions and infrastructure inadequacies are proposed to be eliminated in the SEZs. The SEZ Policy provides for setting up of SEZ's in the public, private, joint sector or by State Governments. It was also envisaged that some of the existing Export Processing Zones would be converted into Special Economic Zones. Accordingly, the Government has converted 8 Export Processing Zones into Special Economic

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CLEARED PROJECTS IN OCTOBER 2006

PROJECTS THAT HAVE OBTAINED ENVIRONMENTAL CLEARANCE Environmental Clearance granted on 5th Oct 2006 for opening a new coal mine Utkal Block C Coal Project for captive consumption of the existing ferroalloy/captive power plant at Chowdar, Cuttak. The total mine lease is 576.55 ha. Site Clearance was obtained on 28.07.2006. Forestry clearance has not yet been obtained.

PROJECTS THAT HAVE OBTAINED FOREST CLEARANCE Data Not Available on MoEF Website

IN-PRINCIPLE FOREST CLEARANCE Coal Mining (137.02 Ha) in village Raijharan, Nandichor and Similisahi in Chhendipada Tahasil by M/S Orissa Mining Corporation Limited. In-Principle Clearance granted on 20th October 2006.

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GENERAL NEWSFDI OUTFLOW EXCEEDS INFLOW Newindpress.com, Business & Economy News Bureau New Delhi, Oct 26: Over the last few years and particularly during the last year, Indian companies seemed to have been bitten by the acquisition bug spanning nearly the whole of globe. A number of foreign acquisitions by India Inc. especially the latest of Corus Group by Indias largest corporate Tatas for over US$ 8 billion is all set to imbalance the Foreign Direct Investment (FDI) cart and may even result in FDI outflows exceeding inflows this year. The unprecedented acceleration in investment activity abroad by Indian firms has given steam to FDI outflows which have exceeded the total foreign inflows into the country this year. Overseas acquisitions by few major domestic companies this year alone amounted to over US$ 10 billion. A report by Crisil Centre for Economic Research, says that the rising tide of Indian overseas investments reflect the imperatives of operating in a globalised market place. Indian firms are now driven by the need to seek the cheapest resource mix and locate operations where these are available. The acquisitions by domestic firms abroad is part of a strategy to establish Brand India across the globe and are not limited to a few sectors but spread across a wide array of industries ranging from pharmaceuticals, telecom, automobiles, and ancillaries to IT. Tata Steels recent announcement to buyout Anglo-Dutch steel major Corus for US$ 8.04 billion and countrys largest electronics firm Videocon planning to acquire South Korean Daewoo Electronics for US$ 700 million highlight corporate Indias increasing global foothold. The Tata Group has been a front runner in other global acquisitions as well with Tata Teas acquisition of US-based Energy Brands Inc. for US$ 677 million, Tata Steels buyout of Singapores Natsteel for 486 million dollars and Tata Coffees buyout of Eight Oclock Coffee for US$ 220 million this year. Romanian pharma firm Terapia had also been acquired by Ranbaxy for US$ 324 million dollars earlier this year. Globalisation which exposed the Indian markets to foreign shores had led the domestic companies to transcend geographical barriers and find a foothold in developed markets. Changes in the international regulatory environment, particularly developments in the intellectual property rights (IPR) regimes have also been critical drivers for India Inc.s forays abroad, The report by Crisil Creating The Indian MNC stated. The acceleration in outbound investments by corporate India has not been a sudden spurt but a culmination of a long-term trend towards the creation of the Indian MNC, which has gathered momentum over the last few years. The geographic spread of these investments has also been varied, spanning the US, Europe, Africa, China and the CIS countries as well. Though, as per data available with the Department of Industrial Policy and Promotion, FDI inflows have doubled during January-July 2006 touching US$ 4.74 billion as compared to the same period in 2005, FDI outflows have also been on an upward climb and are set to overtake the inflows by the year end. The increase in the outflows from the country have gathered momentum on the back of the accommodative role played by the Government, particularly the Reserve Bank of India (RBI), in line with its strategy of internationalization of the Indian corporate sector, the Crisil report said. As foreign exchange reserves have piled up, (Forex reserves stand at over US$ 165.33 billion as of August, 2006), the RBI has progressively relaxed the controls on outbound investments, making it easier for Indian companies to acquire or invest abroad. A slew of amendments to the RBI guidelines have effectively raised permissible investment limits and streamlined processes. CALL TO PREPARE `CORROSION MAP OF INDIA' Our Bureau, The Hindu Business Line Mangalore, Oct 12: The 13th National Congress on Corrosion Control began here on Thursday with a call to prepare a `corrosion map of India' and to take up corrosion audit in major structures in the country. Inaugurating the three-day Congress, Prof K.I. Vasu, Founder Patron of the National Corrosion Council of India (NCCI), said the Government could earmark a considerable amount to prepare the corrosion map. The country does not have data on the corrosive aspects in various areas. Data on corrosion will help in understanding the period of maintenance of major structures. The preparation of the `corrosion map' has to be an all-India effort with field stations throughout the country in all major cities and industrial areas, according to Prof Vasu. The Government could set apart Rs 150 crore to Rs 200 crore to make the map, he said. Prof Vasu also stressed the need for legislation on taking up corrosion audit in major structures in the country. The boom in the building industry has necessitated such legislation. STATE TO FOLLOW W.BENGAL MODEL FOR POLLUTION CONTROL Pioneer News Service Bhubaneswar, Oct 19: With Orissa's industrialization programme set to gain momentum in the coming decade, the

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State is contemplating to follow West Bengal's footsteps by putting in place a mechanism of 'cost of pollution' to deal with industry-induced hazards. "We are working out the modalities on the lines of the West Bengal model by fixing 'cost of pollution' hoping the mechanism will be in place by November-December," a source in the State Pollution Control Board informed on Tuesday. The SPCB had approved the proposal to impose 'cost of pollution' on industries in the State. Supreme Court, on more than one occasion, has established the principle that the polluter must pay. It is ideal to follow the model of the neighbouring State, West Bengal. SPCB sources said the board was also examining other suitable practices being followed in other countries. Pointing out that the geographical proximity to West Bengal and keeping in mind that has similar kinds of industries that we have. Rather, they have diversified industrial presence than us. So, it is prudent to take a cue from them" said the source. Recently, the West Bengal PCB Chairman Dr Sudip Kumar Banerjee made a presentation on the cost of pollution at the SPCB here, where top officials of the Orissa board were present. Officials said the valuation of environmental damages would cover industries such as sponge iron, steel, thermal industry or any industry, which pollutes CHINA'S SINOSTEEL PLANS INTEGRATED PLANT IN INDIA Ambarish Mukherjee, The Hindu Business Line New Delhi, Oct. 23: After Posco and Mittal Steel, Chinese state-owned Sinosteel Corporation is exploring possibilities of getting into the Indian steel arena. The company plans to set up an integrated steel plant in India with an annual capacity of 3-5 million tonnes and is currently engaged in the spadework required for a project of this scale. The company hopes to finalise the location and other ground details within the next two to three months and intends signing the initial memorandum of understanding (MoU) with the State Government concerned by February 2007. However, unlike Posco and Mittal Steel, Sinosteel is not rigid on the issue of allotment of an iron ore mine as a precondition for setting up the plant. In talks: The Managing Director of Sinosteel India Private Ltd, Mr Wang Hongsen, told Business Line that the company has already held discussions with the Jharkhand and Orissa governments and the company's President, Mr Tianwen Huang, would be visiting India in November for further deliberations. Sinosteel India is a wholly owned subsidiary of the Chinese company. The company is also in talks with Indian private sector companies for a possible joint venture. "We have received many proposals. After Mr Huang's visit, we hope to finalise our plans with regard to

our Indian partners or whether we would go on our own. After that, we hope that a MoU could be signed by February next year," he said. `No problem': On the issue of allotment of iron ore mines, Mr Wang said: "Once you have the plant, iron ore is not a problem. Either the Government would provide it or we can get it." Sinosteel is one of the largest global traders in iron ore, steel and other steel making inputs and equipment. According to mining industry sources, the company is currently buying around 8-10 million tonnes of iron ore from India annually. Investment: The amount of investments that may flow in for this plant would be finalized at a later stage after the location and scale is decided. However, going by the thumb rule of Rs 2,500 crore to Rs 3,000 crore investments per MT of greenfield steel capacity, the investment required could be to the tune of Rs 10,000 crore or more, industry sources said. Officials in the Ministry of Steel also confirmed that Sinosteel officials had met the Minister of State for Steel, Mr Akhilesh Das. "The company is a large manufacturer for steel making equipment like blast furnace, coke oven batteries etc. Initially, they wanted to participate in the expansion plans of SAIL and Rashtriya Ispat Nigam Ltd. But we have not yet got any paper or proposal from the company about its manufacturing plans," Steel Ministry sources clarified. In July 2005, Sinosteel Corporation had been permitted by the Foreign Investment Promotion Board to set up a wholly owned subsidiary in India with a foreign direct investment of Rs 4 crore to undertake cash-and-carry wholesale trading of metallurgical raw and processed materials, auxiliary materials, metallic and non-metallic and non-metallic mineral products, non- ferrous metal products and other items. TATA STEEL PLANS RS 4,500CR ORDERS FOR ORISSA UNIT Orissa Diary News Bhubaneswar, Oct 28: The Kalinganagar project of Tata Steel will be the first greenfield project to take off among the five planned across domestic and international markets. Tata Steel has lined up greenfield projects in Orissa, Jharkhand, Chhattisgarh, Bangladesh and Iran. T Mukherjee, deputy managing director of Tata Steel, said the company had decided to take up the Kalinganagar project first, and was close to placing orders for the Orissa project. The company would place orders for one million tonne, which would cost around Rs 4,500 crore, in the first phase, Mukherjee added. The Orissa plant would have a total capacity of six million tonne to be set up in two phases of three million tonne each. The company had internally prioritised its greenfield projects. Refusing to divulge the

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second project the company would take up, Mukherjee said, the mine in Orissa, which would be allotted to Tata Steel, had been prospected. Tata Steel would get the mine once it invested 20-25% of the entire project cost according to the MoU terms. GOVERNMENT SIGNS MOU FOR RS 6100 CRORE INVESTMENT Newindpress.com Bhubaneswar,Oct 12: The State Government on Wednesday signed a memorandum of understanding (MoU) with Gujarat based Welspun Power and Steel Limited (WPSL) for establishment of a three million tonne steel plant and pipe plant with an investment of Rs 6103.8 crore. The MoU was signed by Secretary in the Steel and Mines Department LN Gupta on behalf of the State Government and Vice-Chairman-cum-Managing Director BK Goenka of WPSL. Addressing the function, Chief Minister Naveen Patnaik hoped that the plans of the company would be executed expeditiously. He said that the State Government would provide all necessary assistance and cooperation to ensure that the investors would operate in a constructive and helpful environment. He underscored the need for special attention to environmental concerns and peripheral development. Welspun, having its registered office in Kutch district of Gujarat, also proposed to set up a ductile iron and spiral pipe plant along with a captive power plant of 150 MW. The State Government expects that with the signing of the MoU, Orissa will derive substantial benefits not only by way of direct taxes but also direct and indirect employment and establishment of downstream and ancillary industries. The MoU signed on Wednesday was in addition to the MoUs signed earlier which envisage steel production of 56.25 million tonnes per annum with a financial investment of Rs 1,35,000 crore. Of these, 20 companies have already commenced partial production with a financial outlay of more than 15,000 crore. Minister for Industries, Biswabhusan Harichandan, Minister for Steel and Mines Padmanabha Behera and Chief Secretary Subas Pani were present. The State Government also signed a memorandum with Welspun Anjar SEZ Limited for establishment of an integrated textile park (ITP) at Choudwar. The company will develop about 400 acres of land and set up among other facilities a modern spinning mill of 25,000 spindle capacity and a weaving mill. The company will invest either by itself or directly controlled subsidiaries, Rs 300 crore over a period of three years upto 2009-10. Welspun will conduct a techno-economic study and arrange procurement of machinery to be used in the ITP. It will also ensure that at

least the spinning mill will be commissioned within a years time from the date of transfer of encumbrance free land. The Chief Minister said that the ITP would boost industrialisation in the area around Choudwar and provide employment to the local people. It will also encourage utilisation of fine cotton grown in KBK region of the State in the plant, he said. SAIL WILL MAINTAIN ITS SHARE: ROONGTA Newindpress.com, Business & Economy News Bureau New Delhi,Oct 26: Undeterred by mega mergers and announcement of creating big capacities by foreign producers like Posco and Mittal Steel, Indias largest steel maker SAIL on Wednesday exuded confidence of retaining its leading position. Let anybody come... We shall maintain or consolidate our market share, said SK Roongta, chairman of SAIL. Asked whether SAIL was looking for acquisitions overseas or will expand through green field route, Roongta, who assumed charge of over Rs. 32,000 crore PSU recently, said There is enough potential in the domestic market to grow but we shall not close our eyes to good opportunities even overseas. On the mega deal of Tata Steel acquiring Anglo Dutch steel company Corus in UK, Roongta expressed happiness saying the deal shows the confidence of overseas market in Indian entrepreneurs. We have a very strong client-base. Despite new producers in 90s we have been able to hold on to ourselves, he said and asserted that despite being the nations biggest producer, there was no room for complacency. Saying that SAIL has set a target of producing 22 million tonne of steel in the next five years, Roongta said capacity of Bokaro, Durgapur, Rourkela, and IISCO would be increased to 14 MT, 5 MT, 5 MT and 5 MT respectively. 40 MT for SAIL may not be a distant target, he suggested. SAIL had planned to invest Rs. 37,000 crore by 2012 to become 22 million tonne steel company, Roongta said adding the plan has now been compressed to be completed by 2010. Roongta said SAIL is aware of the need for coldrolled steel from the automobile sector and has accordingly decided to build a 2.5 MT of cold-rolling mill at its Bokaro unit. The unit would exclusively cater to the auto sector, he averred. Asked whether SAIL was looking for acquisition of smaller capacities outside India, he said SAILs current priority was to retain its position as the countrys biggest steel producer but did not write off any brown field expansion. He reasoned that Mergers and Acquisitions did not happen earlier in the state-run entity as the PSUs boards were not adequately empowered to explore the same.

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ORISSA GOVERNMENT CANCELS MOU WITH ASIL Orissa Diary News Bhubaneswar,Oct 24: The State Government has cancelled the memorandum of understanding (MoU) with Agrim Steel Industries Ltd (ASIL) for establishment of a steel plant in the State.ASIL had proposed to set up a 36 lakh capacity per annum steel plant at Markuta in Jharsuguda district with an investment of Rs 501.73 crore. However, there has been no progress in the project work. With this, the State Government has cancelled MoUs with four companies. The other three are, Sunflag Specials Steel Ltd, AML Steels and Power Ltd and Stats Steel India (Pvt) Ltd. The State Government has also sent showcase notices to five other companies for not progressing with their project work. ORISSA SIGNS MOUS FOR PRODUCING 10,920 MW OF POWER By Sanjaya Jena, Organizer Orissa government has signed 10 memoranda of understanding (MoUs) with private companies to set up mega thermal power plants in the state, even as Reliance Energy did not join the MoU signing ceremony despite prior government announcement. The 10 projects, combined together, entail an investment of Rs 45,000 crore and are envisaged to produce 10,920 MW power. The companies that entered into the MoUs include Bhusan Energy Private Limited (2,000 MW, Rs 8,483 crore), KVK Nilachal Limited (600 MW, Rs 2,580 crore), Calcutta Electricity Supply Corporation (1000 MW, Rs 4,042 crore), Tata Power (1,000 MW, Rs 4,348 crore), Monnet Ispat and Energy Limited (600 MW, Rs 2,852 crore), Essar Power Limited (1,000 MW, Rs 4,500 crore), Visa Power (1,000 MW, Rs 3,698 crore), Jindal Photo Film Limited (1,000 MW, Rs 4,525 crore), Lanco group (1,320 MW, Rs 4,500 crore) and Sterlite Energy (2,400 MW, Rs 7,481 crore). Of these, the Tatas, Essar, Bhusan, Visa, Jindal, and Sterlite have also previously signed MoUs with the state government for setting up steel plants in the state. On September 20, a high-level committee presided over by Chief Minister Navin Patnaik had cleared 11 power projects and one cement project. Although the state government had approved the Reliance Energys proposal for 4,000-MW power plant proposed to come up at Hirma in Jharsuguda district, the company did not turn up to the MoU signing ceremony. Speaking to reporters on the non-appearance of the Reliance, state Energy Minister Suryanarayan Patra said, We have some problems with the Reliance Energy. However, we have formed a task force to sort out the issues and hope we will soon sign the agreement. Sources in the government said the government, under fear of the Opposition criticism, removed from its MoU signing agenda

the name of Reliance Energy as the company owes nearly Rs 2000 crore to the Grid Corporation of Orissa (Gridco) on bulk power purchase. The state government, under attack from the Opposition, had declared that the company would be asked to pay its arrears before signing of the MoU. However, non-payment of arrears forced the government to change its plan, the sources added. Although Reliance Energy had originally proposed to set up a 12,000-MW project, the state had given clearance for the 4000-MW first phase unit with an investment of Rs 16,236 crore. Orissa Industry Minister Biswa Bhusan Harichandan, who addressed the investors brigade, welcomed them to the new industrial atmosphere of the state. Chief Minister Navin Patnaik, who was also present on the occasion, said with the addition of 10,920 MW units of power, the state is set to emerge as the powerhouse of the country. With the signing up of the 10 MoUs, the combined generation capacity of the thermal power projects lined up in Orissa has increased to 16,000 MW. In June, the state government had signed MoUs with Naba-Bharat Power Private Limited, Mahanadi Aban Power Company Limited and GMR Energy Limited for projects envisaging a combined investment of Rs 13,402 crore and a generation capacity of 3,070 MW. TORRENT POWER TO SET UP 1,000-MW POWER PLANT IN ORISSA Orissa Diary News Bhubaneswar, Oct 18: Torrent Power Ltd. wants to set up a 1,000-megawatt coal-based power plant and invest in the distribution business in Orissa, a government official said. Torrent Power, created from the merger of Torrent Power AEC Ltd. and Torrent Power SEC Ltd. and soon to be listed on the stock exchanges, has submitted such a proposal to state authorities, a company official confirmed on Wednesday. "The talks are in a preliminary state. But yes, we are keen on Orissa," the official told to media. A team led by Chairman Sudhir Mehta met Orissa Chief Minister Naveen Patnaik on Tuesday and discussed plans for the 40billion-rupee power project. ITS CEMENT AFTER STEEL AND POWER Bhubaneswar, Oct 17: Steel and energy sectors notwithstanding, the Orissa Government seems keen on capitalising on the growth of Indian cement industry. As per the Cement Manufacturers Association (CMA), Orissa ranked 14th in India in terms of production, manufacturing 2.92 million tonne (2.29 percent of total production) in 2004-05. Going by the National Council for Applied Economic Research, under the average growth scenario, the demand for cement in Orissa is expected to rise to 9 million

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tonne by 2010-11 at an annual rate of about 13 percent. But it all depends on how well both the steel and power sectors shape up. The State is looking at the fly-ash and blast furnace slag-based cement routes to move up the growth ladder. Since profitability of the cement industry mainly depends on input, fuel and transportation costs, one of the methods to reduce manufacturing costs is to go for blended cement which requires raw materials such as fly ash and blast furnace slag (BFS). As per a recent report, production of blended cement had reached a level of 60 percent of the total cement production in 2004-05 and has made the sector the largest consumer of fly-ash to the tune of 16 million tonne. With both steel and power generation units making a beeline to Orissa, the State Government has a reason to feel elated. Orissa accounts for 11 percent of the investment happenings in India. Take a look at the investment that had already been made in the steel sector. There is infrastructure to follow. Cement industry is headed for a massive growth path and we want it to respond to fly-ash and blast furnace slag, said Industry Secretary Srinivas Injati. He was addressing a workshop on Investment opportunities in flyash and BFS plants in Orissa, organised by Team Orissa in association with CMA and Technology Information Forecasting and Assessment Council (TIFAC) here on Monday. With the energy sector, thermal power in particular, adding capacity in a massive way, fly-ash generation would witness manifold rise. This can pose a serious environment concern too, he felt and added that the alternative raw materials for manufacturing blended cement can show the way. Recently, the Government signed 13 MoUs with a proposed capacity of 19,000 MW. If 10,000 MW power is generated, it will produce 20 million tonne fly-ash in Orissa. Industry Minister Biswabhusan Harichandan and Resident Commissioner of Government of Orissa AP Padhi echoed similar views. Ipicol Managing Director Ashok Meena said sustained development of Orissa will itself create a big market for cement. The total investment proposals in the State stand at a whopping Rs 4,00,000 crore, 47 percent of which is in the mining and metals sector. This will create substantial demand for cement. But the State needs to tap the potential, feels Dr Vimal Kumar, advisor to Fly-Ash Mission of TIFAC. ORISSA ON FLY ASH MISSION MODE Braja Kishore Mishra, PNS Bhubaneswar, Oct 16: Industrialisation and environmental pollution are two inseparable twins. Nuclear waste, heavy metal waste, plastic waste, adding to the list is yet another form of pollutant - fly ash, which is a bi-product of thermo-

electric power plants. However, the cement sector holds immense promise in terms of utilising the fly ash, from the power sector and blast furnace slag from the iron and steel industry to manufacture blended cement without affecting the quality of cement. The use of these wastes also enables the cement companies to increase their profits. Consequently, about 50 per cent of the 135 million tons of cement produced in India is blended cement. Today, about 17 million tons of a total 118 million ton of fly ash generated in the country is used by the cement industry. "But the potential for utilisation is much more," feels Vimal Kumar, advisor of the Fly Ash Utilisation Programme (FAUP) of the Government of India. Speaking in a workshop on "Investment opportunities in fly ash and blast furnace slag based cement plants in Orissa" on Monday, Dr Kumar suggested that Orissa, being a major producer of fly ash, should immediately go for the Fly Ash Mission (FAM). Announcing the decision of the Government to create a high-powered FAM soon, commissioner-cum-secretary of the Industries Department Injeti Srinivas said "the State Government is very much interested in establishing a favourable policy regime to promote the use of fly ash." According to the Orissa team's latest report, the current generation of fly ash is 11 million ton per annum and slag generation is 3.08 million ton per annum. The use of fly ash in various sectors is only 3.8 million ton per annum, which is only 28 per cent of the available lot, said Ashok Kumar Meena, managing director of Industrial Promotion and Investment Corporation of Orissa (IPICOL). Meena said that with the memorandum of understanding (MoU) signed for generation of 14,000 mw of thermal power, the production of fly ash may go up to 40 million ton. The thumb rule is 500 mw thermal power generates 1 million ton per annum of fly ash, he said. Inaugurating the workshop, Industries Minister Biswa Bhusan Harichandan called for a coordinated approach to create an environment for more use of fly ash and slag.. Chairing the session, SP Ghosh, advisor Cement Manufacturers' Association (CMA), said that in 2005-06 the cement industry in India has the present capacity of 171 million ton, would be adding 90 million ton during next five years. This year cement industry utilised 16.85 million ton of fly ash. Aditya Prasad Padhi, resident commissioner said that while the current requirement of the State is 4 million ton per annum, the cement companies are producing 3 million ton per annum. , he added. H Bhattacharya, executive director, Orissa Cement Limited (OCL), said 94 per cent of cement produced in the State is blended, which is better than the ordinary portland cement. Among others, director industries Hemant Sharma, additional resident commissioner Sanjeev Mishra, chairman

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of the State Pollution Control Board Lalit Narayan Patnaik, chief engineer, Roads, Nalini K Pradhan and general manager, Grasim Industries, Satyaki Sarkar addressed the workshop. Further Meena said the recommendations of the workshop would be considered for inclusion in the Industrial Policy Resolution (IPR) 2006, which is on the anvil. IPR-2006 would facilitate the various industries, including the fly ash-based enterprises, he added. ICCL MERGES WITH IMFA Statesman News Service Bhubaneswar, Oct 24: The merger of Indian Charge Chrome Ltd with Indian Metals and Ferro Alloys Ltd was formally announced today by Mr Subhrakant Panda, the MD of IMFA Group, who claimed that it was done to fully capture operational and financial synergies and position the company to aggressively move forward with future plans and investment. The fact remains that both had a common management and there was a lot of interplay between the two in terms of sharing ore and power. ICCL was riddled with debt, while IMFA was a debt-free company. The debt of the new merged entity, which is to be known as IMFA, is now around Rs 560 crore, entirely that of ICCL. Mr Panda said the net worth of the merged company is Rs 124 crore and the projected turnover in financial year 2007 would be Rs 500 crore. The promoter shareholding is 57 per cent with the rest being held by the financial institutions and the public. The merger is in fact the culmination of the restructuring package of ICCL and part of the stipulation by term lenders of the company. An integral part of the merger scheme was the formation of an independent trust which will hold four per cent of the post-merger equity of IMFA to be distributed to small shareholders at a minimum discount of 50 per cent to the market price, said Mr Panda, while insisting that interest of small shareholders stand protected. In fact, the merger was a unanimous decision of the Board of IMFA, while it was supported by more than 99 per cent of the Board of ICCL, he said. Talking of his future plans, Mr Panda said the focus would be to become an independent power generator, besides expanding ferro chrome production. We plan to invest Rs 700 crore over the next three years to increase our ferro alloys capacity from the present 2,35,000 tons to 3,50,000 tons per annum. The company is also looking at the power generation side with a 30 MW duel fuel power plant and a 120 MW coal-based power plant by 2010, he said. The 30 MW power plant will be commissioned by 2008 and the 120 MW by 2010, he informed. He was confident of doubling the turnover of the company in three to four years. Asked

about the swap ratio, he said it was 1 :14 in favour of IMFA and ICCL. Mr Panda said the expanded capacity would require ore linkages for which the company would move the state government. Answering a question on whether the mining lease held by the companies will automatically get transferred to the new entity, Mr.Panda said requirement had always been calculated by taking both companies together. He was, however, evasive when questioned about the benefits extended to ICCL by the government. Mr Panda was also reluctant to elaborate on the companys plans of setting up an alumina plant. SPV FOR RS 523 CR ANGUL-DUBURI-SUKINDA RAIL LINE SOON Orissa Diary News Bhubaneswar, Oct 23: Nine steel companies have shown interest in participating in the construction of the 98-km Angul-Duburi-Sukinda rail line in Orissa under the leadership of the Rashtriya Rail Vikash Nigam (RVNL), a fully owned subsidiary of the Indian Railways. A special purpose vehicle will be formed soon to implement the project, which is estimated to cost Rs 523 crore. A shareholders' agreement will be signed in this regard in the last week of November. Work on the project is expected to start early next year and be completed by 2010. This will be the second rail project in the state to follow the public-private partnership model after the Rs 598-crore Haridaspur-Paradip rail link. Nine public and private sector companies, including Posco, SAIL, RVNL and Paradip Port Trust, recently signed a shareholders agreement for the 82km rail link. The Angul-Duburi-Sukinda line will be a vital link between the coal mines in the Talcher area and the iron ore mines at Banspani. With a number of steel projects coming up in the Angul and Duburi areas, the proposed line will not only secure the requisite traffic guarantee but will also be remunerative. According to a study, the rate of return for the project is pegged at 20 per cent. Of the total project cost of Rs 523 crore, the equity portion is estimated at about Rs 250 crore. RVNL will be the lead promoter with an equity investment of 30-35 per cent, while the rest will be subscribed by other partner companies. The steel companies that have shown interest in the project include Tata Steel, Essar Steel, Arati Steel, Visa Steel, Monnet Ispat, Jindal Stainless Steel, Jindal Steel and Strips, Bhusan Power and Steel and Bhusan Steel and Strips Ltd. All the interested parties have been asked to specify their equity participation and traffic projection within the next ten days for finalisation of the shareholders' agreement. The land required for construction of the rail line is estimated at 1,530 acres.

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14 SUGAR MILLS TO BE SET UP IN STATE: CM Newindpress.com Bhubaneswar, Oct 13: Chief minister Navin Patnaik on Thursday announced that the Orissa government is preparing a master plan for setting up 14 sugar factories in the state as part of the economic development in rural sectors. He said that the state government has already identified sites for these proposed sugar factories. Patnaik, during his three-day tour to New Delhi, met Union agriculture minister Sharad Pawar on Thursday. During the discussion, Patnaik informed that the state had identified 12 new areas for cane cultivation and very soon, a master plan would be prepared for the purpose of encouraging sugar mills. The Union minister agreed to help the state in its endeavor to promote sugar industries. The entire eastern region is sugar deficit and Orissa can be ideal place for sugar mills to come up, he added. Besides, the chief minister also urged Pawar to provide financial assistance to enable the farm lending at the interest rate of seven per cent. He also asked for the relaxation of the paddy quality norm during procurement operations in view of the recent floods.On the farm loan issue, Patnaik told the Union minister that the state had funded cooperative lending to farmers at seven percent interest that has cost the state exchequer Rs 33 crore. He said that it can only be a short term measure unless and until the Centre assists the state to sustain such cooperative funding to farm sector. Pawar highly commended the performance of the Orissa government in food grain production and procurement during the last financial year with no distress sale. Patnaik also met the Union Minister for Science and Technology Minister Kapil Sibal and asked him to take necessary measures to set up a modern weather centre in Paradip. In his reply, Sibal said that a Doppler radar station would be established by the Earth Science department in Paradip for weather monitoring. Besides, three other sitesBalasore, Gopalpur and Sambalpur-have also been identified for similar stations, he added. The radar station can give warning about the possible natural calamities in advance. The chief minister also requested the Union minister to sanction PG courses in Marine Bio-technology and General Bio-technology in Berhampur and North Orissa universities. He also urged Sibal to expedite sanction for the proposed bio-technology incubator at the proposed BioTechnology Park in Bhubaneswar. GOOD NEWS FOR SSI UNITS Pioneer News Service Bhubaneswar, Oct 5: To be boost the small scale and medium scale industries of the State, the State Government is going to acquire lands in a huge way to facilitate the

establishment of the small-scale industries in the nearby mega projects. Announcing this, Infrastructure Development Corporation of Orissa (IDCO) Managing Director Ashok Meena said the State Government's prime focus would to encourage small-scale industries. The State Government has begun an exercise in the regard. At a press conference of Confederation of Indian Industry (CII), Eastern Region, Orissa chapter, he said the State Government had already acquired 350 acres of land in Kalinga Nagar for the establishment of small-scale industries.It has also acquired 250 acres of land near Jharsuguda for the ancillary and down stream industries and is going to acquire lands in Paradip where Posco is going to set up its project. Chairman of the Orissa Chapter, Subhrakanata Panda said in association with the Government of Orissa, it would hold the 11th Industrial Exhibition Enterprise Orissa 2006 from November 9 to November 13. It will showcase a wide range of industrial and consumer products, handlooms and handicrafts, marine, agro and other important sectors. The major theme of this year's event is the "Renaissance of Manufacturing in Orissa" wherein industries, which have signed MoUs will showcase their respective action plan for Orissa. Besides, it is also proposed to hold concurrent on Logistic and Agro-Business to provide a platform for sharing information and defining future industries. He further said that A CEO's conclave is being organised on November 11 and its aim is to provide a platform for industries and Government officials to discuss the need of interested industries to set up their respective units in Orissa. To encourage School students and inter-school dance competition being organised on October 10 and 11. Chairman of the Eastern Region of CII, Bhusan Raina spoke on the role of the CII in forming the economy of country. Among others HM Nerukar and Suparna Nanda were present. MINING POLICY: IRON OUT THE LEASING ISSUES S. K. Gupta, The Hindu Business Line Bhubaneswar, Oct 20: Iron ore mining has become a contentious issue. The cost of producing a tonne of iron ore in India is around Rs 300, while its price in the international market is around Rs 1,800. In the last 30 years, the labyrinthine policy ensured that no one got a large mining lease no public sector unit, Indian company, or international corporate. Yet, the very same policy granted hundreds of small mining leases over the years. What is wrong? Mines with capacity less than 5 million tonnes per annum can, and do, use the state infrastructure roads, power, ports and water systems keeping for

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themselves large margins. If the scale of mining had been in the 5-15 million tonnes per annum category, as in major iron ore producing countries, the sheer volume of transportation (more than 1,000 trucks per day) would have ensured investment in infrastructure development, besides beneficiation and up gradation of low-grade ore. This has been the case in Australia, Brazil and Chile. So, the government should think of a policy shift to large leases, though it may face opposition. Such enterprises would have to invest in effective exploration using the latest technology, adopt scientific mine-planning, develop infrastructure and take measures to protect the environment. One obvious way to ensure consolidation of the small mining leases could be by making them tradable. Second, India's per capita consumption is less than a tenth of many of its competitors. With progress, the country must go for higher levels of value addition and export. But at every stage, the policy framework must take into account the competitiveness aspect. One myth that needs to be busted is that mineral resources have enormous value. Japan and South Korea are among the most competitive steel producers but have no indigenous mineral resources. Yet, both nations have systematically leveraged the growth in steel production and global marketing. This has been possible by an effective leveraging of technology, quality systems and a liberal government policy framework that allowed takeover of mines globally, particularly in Australia, which has a large exportable surplus of coal and iron ore. As part of this strategy is POSCO's move to set up a large steel plant in Orissa. Its main aim is to source iron ore at close to actual cost rather than at international prices. Indeed, be it UK, US, Germany, or France, all have become developed countries by effectively exploiting their national mineral resources. Another myth: Steel is an intermediate product an input for cars and ships. But that would be ignoring steel's primary role in infrastructure bridges, railways, ports, power plants, and construction. Only after the per capita consumption of steel exceeds, say, 250 kg, as has happened in China, will the nation enter the auto-catalytic stage. This means the economy is on a high-growth path that will catapult it into a developed society. The iron ore reserve issue. Indian iron ore reserves have not been explored effectively so far; below 150 meters there is no data. How to ensure effective exploration? By fostering large world-class mining complexes, besides providing more financial resources to domestic units. Large mining leases: The track record of captive mining by steel companies has not so far been exemplary in any country Russia, Ukraine, Kazakhstan, China or India. Mining has been a back-room function for many large steel enterprises. These enterprises have made no pioneering

contribution to any key mining function: Exploration, mine planning, infrastructure development, environment management or restoration. Yet, such a significant and basic industry as steel, with very large investment and fluctuating returns and crucial to the economic development of a developing nation, cannot but have `input' security. So the answer must be either a combination of partial input security through captive facilities or through combinations of joint ventures and alliances. Prudent pre-qualifications followed by auctions for large mining leases within a reasonable time-frame could be the appropriate route to triggering higher growth in the steel sector, and thence in the infrastructure and manufacturing sectors a pre-requisite for a developed and balanced society. SURPLUS SEEN IN STEEL OUTPUT; EXPORTS LIKELY G. Chandrashekhar, The Hindu Business Line Mumbai, Oct 17: Indian steel industry is in the spotlight these days with Tata Steel making a takeover bid for Corus. Well-known steel majors Mittal Steel and Posco have already trained their attention on India. Will Indian steel sector go the China way is a question everyone is asking. China, as is well known, is the world's largest producer and consumer of steel, an industrial metal that is integral to economic growth, especially for infrastructure development. The strong positive correlation between economic growth and metals consumption is common knowledge. Key areas: Last three years, India has emerged as one of world's fastest growing significant economies with GDP growth rate of eight per cent a year. Housing and infrastructure are key areas of future development. Huge investments are being committed. Naturally, steel would be a critical input. What's the emerging Indian steel scenario? About India, a new study from GFMS Metals Consulting says the country may become steel surplus and forced to look for export options. "Significant proportion of announced green-field capacity will not actually be developed in the next five years. Very simply, the capital requirements of over $75 billion cannot be raised internally. However, brown-field expansion at existing steelmakers, the backward integration of re-rollers and the forward integration of smaller DRI or pig iron producers into steelmaking coupled with the emergence of 2-3 green-field sites will push up steel output sharply." Mismatch: A mismatch between domestic steel output and consumption demand may develop forcing India to enter the export market. "While domestic demand will grow in excess of forecast GDP rates, it will not be able to absorb all the additional steel and an increasing proportion (particularly for flat products) will be exported," the report points out.

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Crude steel output should increase to 72.7 million tonnes by 2011, an average annual increase of 9.2 per cent, while finished steel demand will rise by a slightly more constrained, but still very strong, 8.6 per cent per annum, with the balance going to semis exports, GFMS observed adding that by 2011, total slab exports from India will be in excess of 2.5 ml.t. per year. Rise in Ore output: Suggesting that raw material base was critical to India's competitive position, the report forecast Indian iron ore production will increase to170 ml.t. by 2011, of which 65ml.t. would be exported. Indias Iron ore exports have hit a controversy. As much as 50 per cent of current output is shipped out of the country. The National Steel Policy has set a domestic steel production target of 100ml.t. by 2019-20 to meet projected internal demand of 90 ml.t AMEND MINING LAWS, FIGHT POVERTY Newindpress.com Bhubaneswar, Oct 24: Suitable amendments should be made to the mining laws to help fight poverty in the State, said former Andhra Pradesh-cadre IAS officer Jatish Chandra Mohanty. Mohanty took voluntary retirement recently to work for poverty eradication in his home State Orissa. With the current level of production, he reckoned, if mine lease holders are mandated to share 50 percent of their profit with the State Government, Orissa would get an additional revenue of about Rs 4,400 crore per annum. The fund can be utilised in building rural infrastructure and providing livelihood avenues for the poor. Addressing media persons here on Monday Mohanty said, Mo samruddha Odisha campaign would be launched in the State soon and aims at complete eradication of poverty and improving the financial condition of its people. Stating that the interests of local people are being overlooked by the Government while granting mining leases, he sought formulation of a mechanism where tribals can get five percent of the net profit of the company. To this effect, he called for constitution of a mineral board and an expert committee to decide the cost and profit as per global market mechanism. The Government, he said, should have overriding control over all kinds of minerals, excluding the strategic ones.On raising the socio-economic status of the poor, Mohanty advocated an integral approach that would touch on all aspects of development and ensuring optimum utilisation of the available resources. Retired IG of police B K Tripathy, former vice-chancellor of OUAT Iswar Mohapatra and former managing director of Orissa Mining Corporation B K Mohanty among others have pledged support to Mohanty.

MINISTRY TO SET UP PANEL TO LOOK INTO STEEL ISSUES Ambarish Mukherjee, The Hindu Business Line New Delhi, Oct 20: The Ministry of Steel will be setting up a steering committee that would be looking into the issues related to import and export of steel, development of domestic market, demand assessment for steel and the overall implementation of the National Steel Policy. At a meeting between the Ministry, steel manufacturers and steel consumers, it has been decided that committee would comprise major steel manufacturers, secondary steel produces' associations and Ministry officials. According to sources, the task of assessment of future steel demand is likely to be outsourced once the steering committee is in place. The names of two organizations, namely the Mckinsey and the National Council for Applied Economic Research, have already been discussed and the steering committee would be deciding on the issue, sources said. The steering committee would also be taking a view on a proposal for compulsory ISI certification in all steel products and would also be looking into the issues of export and import and related duty structures and incentives. ISI Certification: The Ministry of Consumer Affairs, which is the administrative Ministry for the Bureau of Indian Standards that gives the ISI certification, has proposed that all manufactured steel products must undergo quality test standards set by the BIS and obtain the ISI mark. While the Ministry's views would be decided only after the steering committee gives its report, the secondary steel industry is opposed to such a move on ground that all steel applications do not require tested steel. According to the industry, steel used for further value addition may require tested steel but those used by the masses for use in fencing, window bars, sheets used for roofing etc does not require tested steel and compulsory ISI marking would result in increased cost. Official sources said that the Ministry would be officially setting up the panel before the end of this month. STEEL MINISTRY SEEKS FEE ON IRON ORE USAGE Prabhakar Sinha, Times News Network New Delhi, Oct 27: The rules of doing business for steel companies could soon change. In a move that could affect the plans of a host of steelmakers, the steel ministry is sticking to its guns and is pushing for levying a fee for use of iron ore from captive mines. Besides, it wants a phasing out of iron ore exports. The move comes even as the government appears divided on the issue with the mines and commerce ministries opposing any curbs, while the finance ministry is in favour of restricting ore exports, though it does not support a ban. But the steel ministry is of the

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opinion that unlike petroleum or telecom, where firms pay for using scarce resources read oil, gas and spectrum steel firms and miners are making a killing on iron ore. At present, steel manufacturers and miners pay Rs 16 per tonne as cess and Re 1 per tonne as royalty for using iron ore from captive mines. As against this, iron ore is available at $6070 per tonne in the global market, depending upon the quality and costs around Rs 2,000 per tonne in the domestic market. With the cost of mining iron ore is estimated at around Rs 250 per tonne, captive mine owners are making huge profits, a high-ranking source said. Sources said government was considering recommendations of Hooda Committee on captive mines, which has suggested levying charges on an ad-valorem basis. A committee of secretaries which is looking into the matter involving ore exports, is exploring the possibility of canalising ore exports through designated agencies besides putting caps on ore exports. REFRAIN FROM SEZS, BIJAY TELLS GOVT Newindpress.com Bhubaneswar, Oct 31: Orissa Gana Parishad (OGP) president Bijay Mohapatra on Monday asked the Government to refrain from notifying the Special Economic Zones (SEZs) in the State, agreed to by the Centre in principle, as these would cause immense loss to the exchequer. Addressing a media conference here, Mohapatra said that the 12 SEZ proposals would cause a loss of Rs 37,000 crore to the State. He alleged that though the Government would provide land at a cheaper rate for these projects, it would not get anything in return through taxes. SEZ status for South Korean major Poscos steel plant at Paradip would alone cause a loss of Rs 20,315 crore over next 30 years; he said and questioned the Governments eagerness to promote some select companies. He alleged that land on both sides of the Express Highway had been proposed to be notified for SEZs keeping an eye on future expansion of the Posco project. Stating that the State Government had provided land to Posco at a throwaway price, the OGP leader said that land has been acquired in Erasama block of Jagatsinghpur district at a price of Rs 50,000 per acre. The proposal to accord SEZ status to Jindal Stainless at Kalinga Nagar would also cause a loss of Rs 6,954 crore. Besides, it would also render other projects in the area, including the Nilachal Ispat Nigam Limited (NINL), uncompetitive, he said. The State Government has also proposed SEZ status to alumina projects of Hindalco and Vedanta, for which it would have to incur a loss of Rs 10,000 crore during the next 15 years, he said. Mohapatra criticised the Centre and the State Governments for their keenness to give SEZ status to projects of private companies when no such facility was

given to profit-making projects of public sector undertakings (PSUs). Nalco which contributed a revenue of Rs 400 crore during the last financial year enjoys no such facility. The OGP leader also criticised the State Government for its inability to handle the deteriorating law and order situation.Referring to the gunning down of DIG Jaswinder Singh by his personal security officer, Mohapatra said that the State Government made itself a laughing stock before the country by announcing that he was killed by Left wing ultras. Stating that the Crime Branch probe would fail to unravel the truth, he said the investigation should be handed over to the CBI. NO ACQUISITION OF AGRICULTURE LAND UNDER SEZ: NAVEEN Orissa Diary News Bhubaneswar, Oct 31: Chief minister Naveen Patnaik on Monday made it clear that the state will not be in a losing proposition by according special economic zone (SEZ) status to major industrial units for more investment. The state government has decided in principle not to go for acquisition of agricultural land in SEZ limits, he pointed out. Briefing newsmen at Naveen Nivas soon after his return from New Delhi, he said that every state has SEZ to create investment opportunity among the major industries to set up their base. Since Orissa is no exception this, the state government, therefore, has taken adequate steps to set up SEZ not only to woo the industrial magnates, but also to generate huge employment opportunities, he said while maintaining that the state will neither have any revenue losses and nor any of its agriculture land would be affected. STATES MUST CERTIFY SEZS ARE NOT ON FARM LAND: NATH PTI New Delhi, Oct 20: Putting all uncertainties to rest over the farmers land being snatched away for setting up special economic zones the Commerce Ministry has decided that the land will have to be certified by the State Governments. State governments will have to certify that Special Economic Zones are not being set up on agricultural land, Commerce Minister Kamal Nath said. Addressing the concerns of farmers at the Agriculture Summit, the Commerce Minister said he has already written to all Chief Ministers to ensure that prime agricultural land was not acquired for setting up SEZs. "States will have to give certificate that SEZs are not on well-irrigated farm land," he said. Nath argued that the concerns raised over the past few weeks regarding the acquisition of farm land was not limited to SEZs only.

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"The question is not of SEZs, but of industrialisation. Industries should come up on wasteland and not on good farm land so that it does not affect our agriculture," he said. Nath also said that Indian farmers should adopt modern technology to increase productivity and tap the export market. The minister reiterated that developed countries such as the US must reduce the huge subsidies to their farmers so as to remove the distortions in world agriculture trade. "Agriculture for us is not commerce, but livelihood. There will be no compromise on food security," the Minister said. SOUTHERN TRIBALS AGITATE AGAINST SEZ PROJECT Santanu Barad Berhampur, Oct 16: More than 500 tribals from the southern districts gathered here on Friday in front of the Revenue Divisional Commissioner to agitate against the proposed SEZ. Under the banner of the Lok Sangram Manch affiliated to AIKMS, the tribals from four districts Ganjam, Gajapati, Kandhamal and Rayagada started the agitation from the morning till 4 pm. The leaders of AIKMS and Lok Sangram Manch, including Bhala Chandra Sarangi, Raghunath Padhy and Santosh Mallik were present to submit the memoranda to the RDC (southern) in the name of the President of India. Some were carrying their tribal traditional weapons. Berhampur Sub-collector Ranjit Mohanty and tehsildar Sangram Panda met the people and discussed their grievances. Women expressed concern over the irrigation project in Gajapati district. They alleged the people would lose their land and source of livelihood if the irrigation project was completed. They appraised the authority that their land would be submerged with this ongoing project and requested for alternate measures to be taken for their welfare. The leaders in the memoranda demanded stopping transfer of land to the SEZ project, giving rights to the tribal and landless people over the forest land, stopping rectifying of Regulation-2/56 Act, stopping land acquisition in the tribal areas and stopping the police atrocities and false litigation against the people of this movement. Bhala Sarangi said the RDC assured them of considering the matter within a month's time. SOPS TO MNCS: MEDHA SEEKS NATIONWIDE STIR Newindpress.com Bhubaneswar, Oct 15: Narmada Bachao Andolan leader and social activist Medha Patkar on Saturday called for a nationwide movement against provision of special concessions like SEZs to the multinational companies out

to plunder the vast natural resources of the country. Patkar took a dig at Prime Minister Manmohan Singh, Finance Minister P Chidambaram and Chief Minister Naveen Patnaik for playing into the hands of the capitalist forces and sacrificing the interests of the aam admi. She was expressing solidarity with the indefinite hunger strike being staged by activists of the Rastriya Yuva Sangathan and Navanirman Samiti here protesting the Posco steel project at Paradip. Allowing Posco an SEZ, a captive port and hundreds of acres of fertile land would displace hundreds of families and rob them of their source of livelihood. The Government has done grave injustice to the people, she alleged. Meanwhile, as the strike enters its 28th day on Saturday, political parties like Congress have thrown their weight behind the protest. Former minister and Congressman Jagannath Patnaik visited the camp and pledged the partys support to the movement. Congress is not against industrialisation but the manner in which it is being carried forward by the present Government, he said. In the name of industrialisation, the poor and the downtrodden are being victimised. A mass uprising is in the making against the anti-people policies of the Government, he said CPM EXPRESSES CONCERN OVER PROPOSED SEZ IN ORISSA zeenews.com Bhubaneswar, Oct 06: The CPI-M on Friday expressed serious concern over a proposal to set up a special economic zone (SEZ) in Orissa, saying the project would jeopardise agriculture, cast a shadow on food security and put a question mark on the country's sovereignty. "The farmers will be the worst victims while both the Central and state governments will suffer losses," the party's state secretary Janardan Pati told a news conference here. Pati said the Left parties, while debating the issue in Parliament, had demanded the implementation of similar labour laws in all SEZs and this had been accepted by the Centre. "But now it appears more amendments and changes are required in the law concerning the rules and sub-rules. It is now clear that industries having SEZ status will use barely 25 per cent of the allotted land for setting up their plants," he said. "It means the rest of the land will be used by them for other purposes including real estate and they will make enormous profit which will not be taxed." Pointing out that projections had said the Central and state governments would receive tax amounting to Rs 79,000 crore and Rs 22,500 crore if the mega steel project of South Korean company Posco was set up, Pati said it needs to be clarified if the project was given SEZ status. Restrictions need to be imposed on the allotment of land and industries

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RDCs letter written to the district collector of Rayagada. In the letter, RDC S.P.Thakur has raised doubts over leasing of land to Utkal Alumina International Limited (UAIL) for its refinery project in Kashipur. Was it a secret affair? It appears transparency was a casualty here are among the questions that the IAS officer has raised pointing fingers at the very intention of the Government of the day. The letter (1465/Rev) dated 18.09.2006 says that the RDC wants all files relating to industrialization in Orissa should be sent to him by name. What does this mean? It means letters relating to industry affairs should be sent to S.P.Thakur, not to the office of RDC, Southern Division. What does this mean? This, according to a senior official, means when something is communicated by name, the NO SEZ AT THE COST OF FARMLANDS officer concerned has the discretion either to put it on office Statesman News Service record or simply tear it off if he or she does not find it NewDelhi,Oct5: The chairman of the National Commission suitable. And, what suitability means, is only the domain on Farmers, Mr M.S.Swaminathan, has said that prime farm of the officer who wants communications by his or her land should not be diverted for setting up SEZs. Agricultural name. It is not the Naveen Patnaik Governments intentions, land must be conserved for farming and should not be Thakur has also questioned the intentions of Government of diverted for non -agricultural purpose, he pleaded and said India, which has the authority to grant approval for that expert committees should be formed at the state level to diversion of forestland to industry and give environmental identify waste and non-fertile land which can be used for clearance. The State Government allots land only after industrial purposes. He was briefing the media on the fifth getting clearance from the Centre. Thakur was no where in and final report of the commission after submitting it to the picture when everything took place. He just took over as Union agriculture minister, Mr Sharad Pawar. The RDC in July last. All procedures have been duly followed commission also recommended that food grains should not before leasing out land for the project, said a senior official be procured at the minimum support price but at the market of the Forest and Environment Department dismissing the rate. He said food security of the country should be based on RDCs observations. home grown food, rather than depending on imports. Contrarily, Thakur, in his letter, has indicated that the State Government has blindly Okayed UAILs land lease LAND TO INDUSTRY: SOUTHERN RDC QUESTIONS proposal and diluted conditions put by Government of India. GOVTS INTENTION It also says that no-objection certificate has not been obtained from panchayati raj institutions. We contacted the Insightorissa.com, Prakash Rao Bhubaneswar, Oct 17: Who decides allotment of land to RDC for his comments, and look, how he reacted: You are industries? The State Government, or for that matter, Chief a pro-industry journalist. We asked him, Are you then an Minister Naveen Patnaik. At a time when the Chief Minister anti-industry IAS? At this, Thakur fumed, and said, I am is trying hard to put Orissa on the trajectory of economic S.P.Thakur, I do not care anyone. growth, here is an IAS officer who surprisingly has questioned the Governments intention of leasing out land to NEW PROJECTS NEED 1,31,000 ACRES IN ORISSA industry. This official thinks that land allotments are secret PTI deals between Government and the industry. Not only this. Bhubaneswar, Oct 23: Even as the influx of new projects The IAS officer also aims to dismiss Chief Ministers claim continues in Orissa, the state is facing a herculean task to of transparency, which the BJD-BJP coalition has been allot promised land which almost compares with the area basking upon in the last six years. The official in question is that was envisaged for residential purpose in the masterplan Revenue Divisional Commissioner (RDC), Southern for 67 towns. The estimated land sought by different Division, S.P.Thakur. Until now, it is the NGOs who have industries inlcuding Reliance Energy Limited (REL), Poscobeen shouting slogans and mouthing anti-industry India private limited and Vedanta Resources Plc (VLC), platitudes. But, this is for the first time that a serving would exceed 1,31,000 acres of land. The land earmarked bureaucrat, a government servant, has joined the antifor residential area in the masterplan of 67 towns including industry bandwagon. InsightOrissa.com has obtained from Bhubaneswar, Cuttack, Sambalpur, Paradip and Jharsuguda, the Forest and Environment Department a copy of the should use at least 50 per cent of such land for setting up their facility. There should not be any exemption of tax, he said. The SEZs should not be allowed in fertile agricultural land and those losing their land should be compensated at double the market price of the land. Care should also be taken to ensure that people are not displaced, he said. "We, however, don't oppose the SEZs being set up for it industries," the CPI-M leader said. Pati said the land being provided to industries for setting up SEZs should not be sold to them but allotted for the period of the licence given to them. After this, the land should be retained by the government.

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has been estimated to be around 1,34,000 acres. A few projects are expected to spawn towns near existing urban bodies which could change the landscape of the state's urban skyline. Different companies have so far signed 42 Memoranda of Understanding (MoU) for setting up steel projects, 13 MoU for thermal power plants and four for alumina complexes. The land required for steel projects alone will make a whopping figure with 40,300 acre land. It is followed by power projects with 17,593 acres and alumina complexes with 12,062 acres of lnad. Even though a single large project is yet to go on stream, various brownfield expansions have been proposed as well. Bhushan Steel and Strips Limited (BSSL) officials recently met chief minister Naveen Patnaik and expressed their interest to add six million tonne steel capacity to their proposed 3.1 million tonne. The company had sought additional 3,500 acre of land adjacent to its 2,000 acre land in Dhenkanal district. The mother of all projects, a 12,000 mw thermal power plant, had been proposed by Anil Ambani-led REL at Hirma near Jharsuguda town. The REL is looking for a patch of 15,000 acre land to put up the world's largest coal-fired power project at a single location. If the proposal of 12,000 power project materialised, it would create another town of the size of Jharsuguda, for which the Directorate of Town Planning (DTP), Orissa, had earmarked 17,767 acres of land.However, a high-level clearance committee headed by the chief minister had given green signal for only 4,500 acre for 4,000 mw project in the first phase. Similarly, Posco is requiring 4,004 acre land near Paradip town for setting up India's largest steel project. However, the residential area for this port town was envisaged at around 5,500 acre. Kalinga Nagar, dubbed as the next steel manufacturing hub of the country where six steel projects are coming up, would overshadow the nearest Jajpur Road town in the coming days. The DTP had earmarked 1,082 acres land for residential purpose while 5,527 acres for commercial, industrial, transport, park and open spaces and other land use for the town. However, the project area would alone require 7,565 acres of land. If the townships of all the projects come up, the proposed land use would touch an astronomical figure. Vedanta resources plc has also proposed to set up a 'world class' university along the Puri-Konark marine drive, for which government has already promised 8,000 acres of land. As many as 56 companies, which have not signed MoU with the state government, have also informed the state-run Infrastructure Development Corporation of Orissa (IDCO) that they would require 24,616 acres. Altogether, the IDCO has so far allotted 25,151 acre of land to various industries. The districts which are likely to witness pressure on land are Jagatsinghpur, Jajpur, Jharsuguda, Sundargarh,

Dhenkanal, Keonjhar and Angul. Apart from the land required for the projects, the demand is likely to rise further when mining work starts in Keonjhar, Sundargarh, Jharsuguda and Angul districts. The land stress is also apprehended to get more critical when all infrastructures would be erected to support the 'unexpected' industrialization that will take place in next six to seven years. In the meantime, industries as well as government have proposed to set up 12 Special Economic Zones in the state for which 15,310 acre land would be needed but part of it has already been included in the requirement shown by some major projects. Moreover, the state government on its own has started reserving land for downstream industries. The IDCO had already identified land under names like industrial estate, integrated industrial development centres and growth centres. Incidents of social tensions has already caused headache for the state government. In January last year, the problem related to acquisition of land for an indusrial project took a violent turn in Kalinga Nagar. As many as 13 tribals had been killed in police firing then. VILLAGERS PROTEST AGAINST ESSARS FENCING WORKS Statesman News Service Jagatsinghpur, Oct. 11: People of Bijayachandpur, Nugagada, Udayabat, Biswali and other villages were the latest to protest against the displacement caused by industrialisation. Agitated villagers led by Paradip Krushak Manch launched a protest against the proposed Essar steel plant near Paradip yesterday and stopped fencing activities at the site. The villagers said they would be adversely affected by the proposed plant and they would be robbed of their agricultural income. Some of them charged that they had not been included in the list of displaced families and hence, would not be entitled to any rehabilitation benefit. Officials, however, said Paradip Port Trust had acquired the land initially and returned it to the revenue department in 1987. Of the 1,500 acres returned by the PPT, the government had given 1,100 acres for the Oswal fertilizer unit which sold the plant to the Indian Farmers Fertilizers Cooperative last year. The state government provided another 100 acres of land to this company for its expansion proposal. About 177 acres of land continued to be under cultivation by people of Bijayachandpur village and they were not evicted although they were technically encorachers for a long time. Now, Essar has acquired the land for its proposed steel plant and has started fencing work triggering protests by the villagers. Villagers said some of them had moved the courts against the eviction. They want ownership of the land saying that they had been cultivating it for

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land from the tribals in the name of industrialisation. Addressing thousands of tribals gathered in front of the tehsildars office, the leaders condemned the ban imposed on Chasi Muliya Sangh by the state government and also demanded to lift the ban with immediate effect. Paidamma, demanded withdrawal of cases filed against Nachika Linga and Wadeka Sam, along with those against scores of other members of the Sangh. These people were arrested recently for their involvement with the banned organisation and for allegedly having connections with the Maoists. Linga and Sam were arrested by Koraput police three months ago. But KALINGA NAGAR BOILS AGAINST TATA PROJECT Ms Paidamma, claiming their innocence, demanded withdrawal of all the cases levied against them. The tribals Statesman News Service were being trapped by goons who are trying to suppress the Jajpur, Oct.11: Another confrontation seems imminent in tribal masses, she added. Kalinga Nagar, the steel hub of Orissa, with the Vistapan Highlighting the achievement of the Sangh, she said that the Virodhi Janmanch, the umbrella outfit of the agitators, daily wage earners were getting their basic minimum wages deciding to lay siege to site where the proposed construction in the locality because of the intervention of the Sangh. of Tata Steel to be taken up and daring the Naveen Patnaik Targeting the big companies trying to take away the government to come forward to lift the 10-month-old road precious mines of bauxite, coal, iron-ore, chromite and other blockade in Ambagadia on the Paradip-Daitari Express valuable minerals, she urged the tribal masses to be aware Highway. To counter the Vijaya Yatra of the ruling BJD of the ill intentions of these companies and to fight against here, the Janmanch organised a show of strength here it. She alleged that efforts were on to suppress the voice of yesterday. the tribal masses. Speaking on the occasion, the secretary of The rally started from the ground at Ambagadia, where the CPI (ML) state unit, Mr Gananath Patro demanded the Kalinga Nagar victims were cremated, and moved to restoration of land to the tribals and issue of land pattas to Champa Koila, Gobarghati, Chandia, Masadia, Mirigichara, the tribals, recognising their rights on the land, water and Belahuri and Nilachal Colony villages, a stretch of about forest. While there was a clear swing on the demands made eight km before reaching Ambagadia for the protest meet. by the tribals and their supporters, a local Mr Jugal Bidika The meeting was held under the leadership of Vistapan asked Mr Patro to look into the illegal occupation of the Virodhi Janamanch conveyor and imprisoned tribal leader land belonging to non-tribals by the tribals amounting to Mr Rabindra Jarika. Among others, Janamanch president about 45 acres in Podapsdar, Baliaput and Basanaput Mr Chakradhar Hibru (senior), Mr Rajendra Kalundia, Mr villages recently and demanded restoration of land to the Dobar Kalundia, Mr Mathura Hunhaga, Turampurty and Ms real owners. Mr Patro did assure to look into the matter and Sini Soi addressed the gathering. They said: The do justice to the non-tribals too in such cases. The Sangh government is doing nothing for the tribals, especially those handed over their memorandum to the additional tahsildar losing their land. The tribals facing displacement because of and informed that it would also stage a demonstration in industrialisation in Kalinga Nagar are ready for a final front of the office of the district collector on the 12th, of this showdown. Vistapan Virodhi Janamanch president Mr month to press their demands. Chakradhar Hibru (senior) said they would block the Tata Steel project which was against tribals PEOPLE WARN OF AGITATION AGAINST NTPC PLANT TRIBALS FIGHT FOR RIGHT TO LAND Statesman News Service Statesman News Service Angul, Oct 6: The affected people of NTPC Kaniha power Koraput, Oct 10: Tribal leaders from Chasi Muliya plant have warned the authorities of agitation against any Adivasi Sangh demanded the immediate cancellation of further displacement. No job in lieu of land, insufficient leasing land for mining activities in undivided district of peripheral developmental grant on one hand and on the Koraput. The show of strength by the tribals was emphatic other hand, people are subjected to water pollution and other as the rally turned out to be one of the largest ever in the hazards, alleged Mahila Sangram and Sanskrit Manch, rural pocket of Narayanpatna with equal participation from leaders of the movement. In a notice to the authorities they women folk. The president of the Sangh, Ms Pondagori put forth a 12-point demands. The villagers will stage a Paidamma, raised slogans against the move to take away decades and were paying water cess and revenue as well. The protesters said the land valuation in Paradip area would be Rs 10 to 12 lakh per acre but government sold land at Rs 3 lakh per acre. The farmers of Bijyachandpur, Udyabat, Biswali, Paradipgarh, Bhutmundai, Nuagarh and other villagers have formed Paradip Krushak Manch under the leadership of Mr Kapil Chandra Samantray. The Manch held protest meetings in Paradip and threatened to stop the steel project if their demands were not met. They have stopped the fencing work at the site.

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protest if they remains unfulfilled. Mahila Sangathan leaders company, the CM said it would be taken up after the alleged that the village roads were damaged due to the company reached the benchmark as enshrined in the policy. transportation of fly-ashes by the overloaded heavy vehicles. The DGM of NTPC Mr Hari Kumar said BASIC FACILITIES BEFORE MINE WORK: VILLAGERS peripheral works will be undertaken in consultation with the Newindpress.com authorities and the trucks will be allowed to ply only at Koraput, Oct 5: Mixed responses came to the fore during night. the public hearing camp organised by Orissa Mining Corporation (OMC) and Aditya Aluminium Company at JINDAL NEARS MARK Bhalujodi recently. The majority of villagers from Bhalujodi, Birijodi, Rajanpanasguda and Singaram under Statesman News Service Bhubaneswar, Oct. 4: Jindal Steel and Power is confident Laxmipur block agreed to support the environmental of completing land acquisition for its proposed project in clearance exercise for Kodinga Mali bauxite mine at the Angul by the end of the current year and commencing meeting. construction work by next year to keep with the scheduled As per the project proposal of Aditya Aluminium, the start of the first phase production of its 6 MT steel plant by company would be acquiring 2,000 acres of government and 2009. Expressing his satisfaction with the pace of progress, private land in Koraput and Rayagada districts. While Mr Navin Jindal, the managing director and executive vice- Kodinga Mali hill is in Laxmipur block of the district, the president of Jindal Steel & Power, told reporters here today refinery has been planned at Kangsariguda village in that the company had already placed orders worth Rs 2,000 Rayagada district. However, some villagers demanded that crore and issued letter of credit for over Rs 577 crore for the both the projects be set up in Laxmipur block to prevent project. We have letters of comfort from banks, financial displacement. Others demanded basic facilities like health, institutions, including some foreign banks, he said, while education, communication and electricity prior to operating asserting that the work on the project was on schedule to the mine. They also sought a training school for youths, employment in the company and consolidated pension for meet various deadlines. Jindal Steel & Power proposes to set up a 6 MT steel plant the old. The company should also organise a door-to-door and a 100 MW captive power plant in Angul. Mr Navin campaign to understand the problems of the locals, said a Jindal met chief minister Mr Naveen Patnaik here today and villager. the latter was appraised of the progress of the project. He Aditya Aluminium Chief Executive Officer Suryanaryan explained to the chief minister that he had come to take Bounta said the refinery project cost is estimated at Rs stock of the progress achieved so far. The State Pollution 3,700 crore and would be commissioned by 2010. Kodinga Control Board has already given environment clearance for Mali is a joint venture of OMC and Aditya Aluminium. the project and permission to draw water from the Brahmani Stating that there is zero displacement in Kodinga Mali has also been given, informed the industrialist. Highlighting mines, he said compensation would be given within six the peripheral development work undertaken by his months according to the new rehabilitation and recompany, he said mobile hospitals and electrification of settlement policy of the government. The company is also villages had already been taken up. He also informed that planning a 650-mw smelter plant at Lapang village in the company planned to establish a school, besides taking Sambalpur district to produce final aluminium. On measures up 15 water supply projects in the area. With regards to being taken by the company for periphery development, mining lease, he said the company had already applied for a Bounta said parallel plantation would be taken up by the lease but had no immediate plans for a Special Economic company at Kodinga Mali to protect the environment. Among others, Additional District Magistrate H.K. Behera, Zone. Asked about the land acquisition which is considered as a Zilla Parishad president Chandrama Saunta, OMS official S. major problem, Mr Jindal felt it would not be a hindrance to Sahu and scientist L. Alhi from Environment and Forest the project since local people were extremely helpful. Department were present. Eighty per cent of the 5,750 acres of land required for the project belong to private parties. Mr Jindal said the project POSCO ADAMANT ON STEEL PLANT would provide direct employment to 10,000 people and Statesman News Service indirect jobs to another 20,000. Chief minister Mr Naveen Patnaik told reporters after his meeting with Mr Jindal that Jagatsinghpur, 0ct 19: Continuing with its efforts to he was satisfied with the progress of the project. Asked convince people about the project, Posco-India officials told about grant/recommendation of mining lease for the the media here today that they had redrawn the layout for their mega steel plant project 60 times to minimise

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displacement of people. Responding to speculations over shifting the present site, vice president (environment) Mr KW Sung said the alternate patch being considered was not a suitable one as it was completely waterlogged. He reaffirmed the companys unwavering commitment to establish the project in the state and said the site selection for the plant as well as the port had been done after conducting a careful study of the all aspects. The alternate patch of land was being considered to avoid displacing people from Dhinkia, Nuagaon and Gadakujang where a strong resistance from the inhabitants has been impeding the project. In fact some of those connected with the project said that once the question of shifting the site was raised, the company could as well look at other states which would welcome such invetment. Speculations over shifting the site had cropped up after some of those leading the resistance movement had suggested an area of Gadaharishpur panchyat under Kujang tahsil which does not have any betel vine or habitation for the project. Allaying fears over the possible adverse effects of setting up the proposed port, Mr Sung said the location at Jatadhari mouth had been selected after detailed study by experts. The survey of Posco port has been completed by the consultants of National Institute of Oceanography, Danish Hydraulic Institute and Consultant Engineering services. The reports have shown that there will be no adverse impact on the sea tide. Mr Ho Chan Riu of the company said a comprehensive R&R plan and periphery development programme had been drawn up. He said 48,000 jobs would be created. GOVT READY TO TALK TO POSCO-HIT: NAVEEN Pioneer News Service Bhubaneswar, Oct 16: Chief Minister Naveen Patnaik on Sunday agreed to personally accept a memorandum from activist Medha Patkar and said his Government was ready for talks with the people to be affected by the Posco steel project. Reacting to the protest demonstration, led by Patkar in front of his residence, Patnaik told newspersons that he had no problem for talks with the affected people as well as with Patkar, but there were some legal procedures for talks. The State Government is well aware about the fate of displaced people of Jagatsinghpur district and it has already chalked out a comprehensive Resettlement and Rehabilitation Policy for them, he said, while referring to the statistics given by Patkar that 40,000 people were likely to lose their homes if the Posco project came up. "I personally invited both BD Sharma (president of Bharat Jan Andolan) and Patkar, but they did not turn up for talks," Patnaik said. The local administration has been in close touch with the affected people and proper justice would be given to all those

displaced," he made it clear. Meanwhile, the police arrested about 100 protesters, while they were trying to march towards the Chief Minister's residence, Naveen Nivas. Two protesters were injured due to a scuffle with the police and admitted at Capital Hospital where their conditions are stated to be stable. Earlier, about 150 people, a majority of them women, led by Narmada Bachao Andolan leader Patkar, staged a demonstration outside the residence of the Chief Minister, protesting the proposed establishment of the Posco project near Paradip. Shouting slogans against the Chief Minister and his Government, they vowed not to allow the 12million-tonne project to come up. The anti-Posco demonstrators, who have been sitting on a dharna on the Mahatma Gandhi Marg here for over three weeks, suddenly took out a procession and marched towards the Chief Minister's residence. The police, apparently not prepared for such an eventuality, were caught napping as the protestors virtually ran towards their destination near the airport. The few police personnel present could not stop the demonstrators, who reached the main gate of Naveen Nivas. Later, there was a scuffle between them and the protestors. The police soon took away over 50 people in a truck, even as the other protesters continued to shout slogans demanding an audience with the Chief Minister. Talking to reporters on the spot, Patkar said she had fixed a deadline of 18 hours on Saturday for the Government to respond to the demand of the protestors for an open discussion with them on the controversial project. "When the deadline expired, we decided to come to the Chief Minister's residence to talk to him," she said. Bhubaneswar Range DIG YB Khurania and Khurda SP Amitabh Thakur, who were present there, held discussions with Patkar and the Bharat Jan Andolan leader BD Sharma, who were also among the protesters. The police officers invited the leaders to present their memorandum to the Chief Minister, but the latter insisted that they would agree to go inside only after the arrested persons were released. BETEL LEAF MAY WIN BATTLE AGAINST STEEL Pioneer News Service Bhubaneswar, Oct 10: The battle of betel leaf and steel which has been going on in Orissa's Jagatsinghpur district for the last 15 months may end soon. The dispute began after the State Government inked a Memorandum of Understanding (MoU) with South Korean steel major Posco on June 22, 2005 for a US $ 12bn Foreign Direct Investment (FDI) steel plant. While Posco wants to acquire 4,004 acres for its proposed 12-mtpa integrated steel project, the locals are opposed to it on the ground that they grow betel vines on the land