Mining Update - September

8/8/2019 Mining Update - September

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LIST OF CONTENTS Vol. 2, No. 1, September 200

Editorial 1

News Items 3

Public Hearings during Sept 06 21

Pending Projects with MOEF for Environmental

Clearance 22

Pending Projects with MoEF for Forest Clearance 26

Pending Projects with State Government 28

Approved Projects for Environmental Clearance 30

Approved Projects for Forest Clearance 31

Projects In-Principle Stage of Clearance 32

Rejected Projects 33

Clearance Letters 36

Forest Clearance Letters 37

Mining Lease to M/S Ghanshyam Mishra &Sons granted on 13th September 2006

In-Principle Clearance Letters 39

Diversion of 85.55ha of Forest Land inSidhamath Reserve Forest in Favour of Dr.Sarojini Pradhan for Iron and Manganese OreMining. Clearance Granted on 21st September

2006

Second Renewal of Mining Lease for133.112 Ha Area to Orissa Mining CorporationLimited in Kurmitar Iron Ore Mines underBonai Forest Division. Clearance Granted on14th September 2006

Environmental protection Group, Orissa 43

One year after the draft notification was placed onMoEF website for comments, the new EIA notificationpassed by the Ministry of Environment and Forests Governof India (MOEF, GOI) on 15th of September, 2006. Therebeen storms of protests against this notification, all of wrightly point out that this new notification ignores many crissues and has been drafted in the most undemocratic maThe Ministry restricted itself to consultations representatives of Industries and Government / regul

agencies, while the representatives of NGOs, HeadPanchayats and Municipalities, local groups and commuwere completely kept out of this process. This raises sdoubts about the role of MOEF, GOI i.e. whether it is an agfor protecting the public environmental goods or a promotefacilitator of corporate sector.

The new Notification vests the State Governments witpower of clearing CategoryB Projects. If we consider a like Orissa, where the State Government is currently "Development through Industrialization" spree and is promoting mining and industrialization, vesting such powith the State Government will imply a complete collapse oenvironmental governance.

Certain large capacity projects like Construction pro

have been completely exempted from EIA studies and alnot need to conduct Public Consultation. Similarly thernumerous large capacity projects that are completely exemfrom the EIA Notification Thermal Power Projects (less500 MW) or even Cement Plants (less than 1 MTPA). Doemean that all these projects are absolutely environmfriendly and don't damage the environment at all?

However, the new environmental guidelines providexplanation as to why these projects have been exempted this extremely important environment clearance process. Itimplies that the MoEF is not interested in ascertainingconcerns of locally affected persons while clearing projects. But ultimately, it is the people living there and

life support systems that are will be destroyed by environunfriendly projects. By introducing such a biased (pro-induand severely flawed Notification, the Ministry has only dithe objective with which it was set up. How can the publicsuch a body which has least concern for the people or foenvironment in which they live? It is from such a deep seninsecurity and mistrust that these oppressed people derivestrength to revolt. I am afraid, but incidents like the KaNagar may occur even more frequently.

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MINING AND INDUSTRIALISATION UPDATE,ORISSA

NVIRONMENTAL INFORMATION ON INDUSTRIES AND MINING IN ORIS

EDITORIAL


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PROJECTS THAT HAVE OBTAINED ENVIRONMENTAL CLEARANCE

Bauxite Mining at Maliparbat by M/s Hindalco Industries Ltd

PROJECTS THAT HAVE OBTAINED FOREST CLEARANCE

Mining Lease to M/S Ghanshyam Mishra & Sons granted on 13thSeptember2006.

IN-PRINCIPLE FOREST CLEARANCE

Diversion of 85.55ha of Forest Land in Sidhamath Reserve Forest in Favourof Dr. Sarojini Pradhan for Iron and Manganese Ore Mining.

Clearance Granted on 21st September 2006

Second Renewal of Mining Lease for 133.112 Ha Area to Orissa MiningCorporation Limited in Kurmitar Iron Ore Mines under Bonai Forest

Division. Clearance Granted on 14th September 2006

Diversion of 0.99ha of Land for Construction of All India Radio at Deogarh.Clearance Granted on 13 September 2006

CCLLEEAARREEDD PPRROOJJEECCTTSS IINN SSEEPPTTEEMMBBEERR 220000


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GGEENNEERRAALL NNEEWWSS

NGOS, MPS CALL FOR WIDER TALKS ON NEWEIA RULES

Our Bureau

New Delhi, Sept. 4: A group of non-governmentorganisations (NGOs) as well as Parliamentarians have

alleged that the Environment Ministry has not heldconsultations with civil society on the new EnvironmentalImpact Assessment (EIA) rules, which are to be notifiedsoon.

In a statement, Kalpavriksh Environmental Action Grouphas alleged that though the Environment Ministry hadinvited public comments on the draft EIA about a year ago,it has held consultations with industry associations onlysuch as Assocham, CII, FICCI and CREDAI. The NGO hasbased its statement on information obtained from theEnvironment Ministry through a Right to Informationapplication.

Mr P.G. Narayanan, Chairman of Parliamentary StandingCommittee on Science, Technology and Environment haswritten to the Prime Minister on the issue, requesting hisintervention to hold the notification till a thorough andmeaningful consultation is completed, said the release.

CPI (M) MP Mr Sitaram Yechury has urged theEnvironment Ministry to hold extensive consultations byorganising zonal workshops involving the state governmentson the issue. He has also called for a "full discussion on theissue in the Winter session of Parliament", according to thestatement.

ORISSA TO FIX COST OF POLLUTIONPress Trust of India

Bhubaneswar, Sept 26: With Orissas industrialisation setto gain momentum in the coming decade, the state iscontemplating to follow West Bengals footsteps by puttingin place a mechanism of cost of pollution to deal withindustry-induced hazards.

We are working out the modalities on the lines of the WestBengal model by fixing cost of pollution. We hope themechanism will be in place by November-December next,State Pollution Control Board chairman Dr LN Patnaik said.

Mr Patnaik said SPCB had in principle approved theproposal to impose cost of pollution on industries in thestate.

The Supreme Court on more than one occasion hadestablished the principle of polluter must pay, he saidadding that our endeavour would be to follow thatprinciple.

It is exclusively our prerogative to follow the model of ourneighbouring state, Mr Patnaik said adding that the stategovernment had given their approval to the move.

SPCB sources said the board was also examining othsuitable practices being followed in other countries.

Pointing out that geographical proximity with the WeBengal was an advantage, Mr Patnaik said Oneighbouring state has similar kind of industries that w

have. Rather, they have diversified industrial presence thus. So it is prudent to take a cue from them.

Recently, West Bengal Pollution Control Board ChairmDr Sudip Kumar Banerjee made a presentation on the coof pollution at the SPCB here where top officials of tOrissa board were present.

Pointing out that pollution was injected into air and watwhich lack ownership, Mr Banerjee said: This reflectsmarket failure because prices of the goods and servicwhose production and consumption processes caupollution, fail to reflect the true cost to society of tresource use. Market failure is translated into a spillov

effect or externity. It constitutes both misuse of unpriced (air) or open-access (water) public resource, ahas negative spillover effects on sectors and individuals wmay or may not be parties to the pollution generatiactivities. Market valuation demonstrated to what extepollution had caused a decrease in the market value of tresources or another item with market value that wimpacted by pollution, the WBPCB chief had said in hpresentation.

He said the valuation of environmental damages can play important role in establishing environmental policy aregulatory standards and can provide guidance in targettimitigation efforts.

Patnaik said the valuation of environmental damages woucover industries such as sponge iron, steel, thermal powprojects or any industry which pollutes.

Reacting to SPCBs move, Mr Jagannath Bastia, prominent environmental activist, said: The concept polluter must pay will be ineffective. When governmefails to enforce law which talks about punitive actiagainst polluters, it will be difficult to collect fine towarpollution from them. Rather, the polluters would becomfearless. If they have to pay a fee for causing pollutiothey will not hesitate to inject pollution into the air awater, he argued adding that the polluters would buy mo

time before facing any punishment.

ENVIRONMENT FUND TO BE SET UP SOON

Pioneer News Service

Bhubaneswar, Sept 26:The Orissa Government will earevenue of Rs 1,790 crore per annum if all the 10 powprojects which signed MoUs on Tuesday go on stream.

The financial benefit will accrue to the State in the shape management fund, VAT, coal royalty, water cess as well


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savings on cheaper power. Additionally, 2,475 MW ofpower will be available to the Orissa.

Speaking at the signing of the MoUs, Chief MinisterNaveen Patnaik said the State will benefit immensely fromthese projects. There would be an investment of nearly Rs45,000 crore in the power sector. About 30,000 people will

get employment of which 10,000 people will get directemployment and 20,000 indirect employment.

However, Patnaik cautioned the power producers to abideby the law in protecting the environment. "An EnvironmentManagement Fund will be created soon with thecontribution of the power producers and the money will bespent on the protection of environment," announced Patnaik.

Energy Minister Surya Naryan Patro spelt out the keyfeatures of the MoUs. As per the agreement, the annualcontribution at the rate of six paise per unit of the energywill be sold to other States and that money earned will bedeposited in the Environment Management Fund.

The power generated in excess of 80 per cent plant loadfactor (PLF) from the power plant will be made available tothe State at variable cost plus incentive. A nominatedagency authorised by the State Government will have theright to purchase upto 25 percent power sent out from theThermal Power Plant, as per the tariff determined by theRegulatory Commission.

Rehabilitation of the land oustees will be in accordance withthe new rehabilitation policy approved by the Governmentof Orissa.

GOVT. MUST INVOLVE LOCALS IN THE PROCESS

OF INDUSTRIAL DEVELOPMENTOrissa Diary News

New Delhi, Sept 12: The NSUI unit of JNU organised asummit on Displacement and Development in Orissa.Speaking on the occasion former Chief MinisterHemananda Biswal demanded a just and reasonablepackage for the displaced.

Coming heavily upon the Naveen Pattnaik Govt., heremarked that the State Govt. went ahead on signing theMOUs with private companies without evolving a properrehabilitation measure for the displaced. Forwarding hisviews former union minister of state, Bhakta Charan Das

emphasised the need to develop the agro based industries inthe KBK region of the state. He said,the Naveen Patnaik ledGovernment in the state instead of surrendering to thenefarious designs of the MNCs should strive for the creationof basic infrastructure in the sphere of irrigation andindustry. Moreover, he highlighted the need for thedevelopment of human resourses as well as creation jobavenues for the oustees. Another speaker Jena, sought abalance between development and displacement. Though acommon phenomenon in the entire world, the authoritiesshould involve the Local people in the process of

development Mr Jena remarked. Prof. Ajit Mohanpresided over the seminar. The Seminar was well attendby number students of the university.

PM WANTS CENTRE-STATE ROW IN MININISSUES RESOLVED

Our Bureau, The Hindu Business Line

New Delhi, Sept 30: The Prime Minister, Dr ManmohSingh, has asked the Minister for Mines to urgently sort othe differences between the Centre and the mineral-riStates with regard to value addition of minerals within tState boundaries and delays in the grant of concessions the States governments, according to an official release.

The Minister of Mines, Mr Sis Ram Ola, would consult tChief Ministers of the dissenting States on these issues.

Hoda Report

At a review meeting on the proposed National Mini

Policy, based on the Hoda Committee report, the PrimMinister said the new policy should be brought before tCabinet at the earliest, after a thorough examination of the contentious issues.

The requisite statutory amendments should be targeted fthe winter session of Parliament, the release added.

In the meeting, the Mines Ministry pointed out that tpolicy was being drafted on the recommendations of tHoda Committee and the mining concession dispensationattract investment and technology was proposed to reoriented.

Study Group

The new policy would be based on unbundling aseamlessness in the grant of concessions and hope to attrainvestors of risk funds and mining juniors specialising prospecting with modern technologies.

As a revenue source for the mineral-rich States, the poliproposes to introduce an ad valorem-based royalty regimmoving away from the tonnage regime currently operation.

On the environment front, a special study group wdevelop a sustainable development framework based on tinternationally accepted model.

The main feature of this model would be the regeneration

bio-diversity disturbed by mining interventions in additito honouring the stakeholder interest of host populatiolike the tribals, the release said.

COAL SHARE EQUAL

Statesman News Service

Bhubaneswar, Sept 25: The Ministry of Coal has approvin principle the sharing of Nuagaon-Telisahi Coal blockowned jointly by OMC Ltd and Andhra Pradesh Miner


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Development Corporation ~ on 50:50 by both thecompanies.

The Nuagaon-Telisahi block is spread over 15 squarekilometres with an estimated reserve of 733 million tons ofE&F grade Coal. The OMC proposes to use the coal to meetthe requirement of small-end users of the state, who are

unable to meet their requirement from MCL, and theupcoming steel and aluminium industries in the state. TheMinistry of Coal has been requested to allot eastern side ofthe Nuagaon-Telisahi block for the purpose, said officialshere today. The OMC, one of the few profit making state-run corporations, has achieved record production and saleduring the first five months of the current year. Productionof iron ore has reached 14.91 MT by August, 2006; whilethe production of chrome and chrome concentrate has been3015 and 610 MT respectively.

During the corresponding period, 13071 MT of iron ore hasbeen sold, 74,800 MT of chrome ore exported and 1,53,663

MT chrome ore and chrome concentrate have been sold inthe domestic market. The board of the corporation hasconstituted two sub-committees to examine and recommendsteps for the disposal of manganese stock and for enhancingproduction of sponge grade iron ore to meet the demandfrom the steel plants. There have been no accidents in themines during March-July, 2006 and safety norms are beingenforced strictly. New mobile light towers have beenprovided to improve the lighting in plots and working sites.Illumination survey is also being made regularly in themines. A release issued by the OMC also highlighted thesocial and peripheral development work undertaken by thecorporation.

OMC has given grants for roads, buildings, sports,education and hospital. It has planned to go for digging oftube wells and dug wells on a massive scale in theperipheral areas of mines with a budget of more than Rs onecrore.

OMC has also contributed Rs 4.23 crore for the BijuPattanaik Sports Academy, Rs 2.57 crore for theconstruction of Tomka-Mangalpur road, Rs 1.00 crore forimproving the Palaspanga-Bamebari road through KeonjharInfrastructure Development Company and Rs 10.45 lakh forthe construction of four nursing homes at the CapitalHospital, Bhubaneswar. The corporation has declared a

bonus which will be 20 per cent of salary or wages and giftof Rs 10, 000 to all its employees to be paid before Pujaholidays. Those who are not entitled to bonus have beenpaid Rs 7,000 as incentive, said the release.

MINING SECTOR AGAINST GIVING CAPTIVEIRON ORE MINES TO STEEL COS

Ambarish Mukherjee, The Hindu Business Line

New Delhi, Sept 12: The steel and mining industry'srespective lobbying capacities are being put to test over the

issue of iron ore exports and grant of captive mines to stemanufacturers.

Responding to the demand of curbing iron ore export aallocation of captive mines to steel manufacturers made the Indian Steel Alliance (ISA), the Federation of IndiMineral Industries (FIMI) has sought assured buyers

domestic market as that would gradually bring dowexports.

To achieve this, FIMI has demanded a ban on granticaptive iron ore mines to steel manufacturing companies.

Preservation of resources

The ISA as well as a few political parties have bedemanding the prevention of export and preservation of tcountry's iron ore resources. They instead argue for expoof value added finished products such as steel.

In a letter to the Prime Minister, the Secretary General FIMI, Mr R.K. Sharma, has said that, "At the prese juncture when steel plants (existing and prospective) assured of captive mines either by the Hoda Committee MoUs signed with State Governments, it is not understohow the ISA clamours for banning exports."

Roadmap

The FIMI, in its letter, also tried to present a roadmap thwould bring down iron ore exports.

"Most of the exports is from the stand alone non-captimines and is in the form of fines. The only way to regulaor reduce exports is to stop giving captive leases to tcurrent as well as prospective steel companies till tdemand and supply match in India," FIMI said.

Explaining the rationale, FIMI officials said that if thewere takers in the domestic market, exports would naturalcome down.

"If no captive mines are granted, the exports will themselvgradually taper off," the FIMI letter said.

Existing mines

Interestingly, FIMI not only wants a ban on granting captimines to steel makers, it wants the Government to taaway the existing mines of Tata Steel and Steel Authority India Ltd (SAIL).

Stating that companies without captive mines are efficiencompeting with companies having captive mines such

Tata Steel and SAIL, the miners' body has urged the PrimMinister that "effort should be to take away excess captimines from the existing steel plants at the time of renewal their mining leases."

ELECTRICITY, MINING PROPEL JULINDUSTRIAL GROWTH 12.4%

Our Bureau, The Hindu Business Line

New Delhi, Sept 12: July saw the country's industrgrowth surging by 12.4 per cent against a 4.7 per ce


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growth in the same month last year. The spurt came aboutmainly because of strong pick-up in the electricity andmining sectors.

A smart increase in consumer goods output also helpedcatapult industrial growth in that month. Electricity andmining sectors clocked growth rates of 8.6 per cent and 6

per cent, respectively, in July this year. In the same monthlast year, mining output had declined by 1.9 per cent andelectricity generation dipped by 0.9 per cent.

The manufacturing sector, which had a weightage of over79 per cent in the index of industrial production (IIP),recorded growth of 13.3 per cent as against 6 per cent inJuly 2005.

In terms of use-based classification, consumer goods outputrecorded a sharp increase of 17.9 per cent (4.5 per cent).Output of basic goods registered a smart growth of 10 percent (3.4 per cent).

For the April-July period, industrial growth increased by

10.6 per cent as compared to growth level of 8.9 per cent inthe same period last year.

No pressure on rates seen

Reacting to the industrial growth performance, the FinanceMinister, Mr P. Chidambaram, told presspersons that the"happy part" was that the mining and electricity sectors,which were laggards last year, had picked up strongly.

The Finance Minister also said that he did not see the rapidexpansion in industrial output exerting pressure on interestrates. Citing the Reserve Bank of India data, MrChidambaram said that non-food credit has grown by 33 percent.

"Credit growth is very good. There is ample liquidity. Callrates are moderate. While credit growth is high, I don't seethat (high industrial growth) necessarily exerting anypressure on the interest rates", he said.

On the manufacturing sector, he said that segments such astextiles, man-made fibre, paper, basic chemicals, andtransport have all recorded good growth. Mr Chidambaramalso said that high manufacturing growth would continue ifcommodity prices were to come down.

`SAFETY NORMS BEING IGNORED AT MINES'

Badal Sanyal, The Hindu BusinesslineKolkata, Sept 12: The mining mishap that occurred insidethe Nagda colliery at Bhatdih in Jharkhand on Wednesdayhas once again raised the question of safety in domesticmines. Safety experts say that the accident, which is fearedto have caused the death of 54 miners trapped inside, couldhave been avoided if the statutory safety rules forunderground mines were strictly followed.

Incidentally, leaders of all Central trade unions operating inthe state-owned coal companies said that this sort ofaccidents are bound to occur again if the mining authorities

do not follow stipulated safety guidelines. Almost all uniohave repeatedly lamented the fact that "in some of tmines, managers have not gone down inside the mine fmore than a year."

An official note incorporating the union leaders' commenon the safety aspects in coal mining has quoted trade uni

leaders saying that some of the managers, project officegeneral managers and even higher officials were in the habof falsely recording their attendance in the requisite Form(the register meant for recording attendance of those wmake underground visits).

They alleged that chief general managers, projeofficers/managers do not visit the pit tops, in case underground and open cast mines (OCP), at the beginniof shifts, which is generally 8 a.m. in the undergroumines and 6 a.m. in OCPs.

The union leaders alleged that instead of giving exemplapunishment in case of mine accidents where mine officia

are directly responsible, officials are let off. As consequence, negligence and complacency get compoundand result in disasters. They also cited many cases accidents where no action was taken against officiaresponsible.

GOVTS MINING POLICY COMES UNDEATTACK


Berhampur, Sept 10: Orissa government prefers to leaout its mines for a pittance to various companies rather thgetting the proper market price for the mineral resources

the state, alleged the social and environmental activist, MPrafulla Samantra, who also heads the Orissa unit of tLokshakti Abhiyan.

Mr Samantra alleged that the Orissa government did not tto bring in changes in the recommendations of the specHuda committee formed by the Centre to suggest changesthe mining policy.

Mr Samantra said, initially suggestions came up before tHuda committee that the mines should not be leased out bshould be auctioned to the highest bidder so that states liOrissa, Jharkhand and Chattisgarh, can get better revenfrom their mines.

He alleged that this proposal was not supported by tstates.

Bureaucrats run the show in Orissa and they have developvested interest in favour of MNCs. Not many bureaucrabother for the poor or the environment, he remarked. MSamantra said that at present the state government is gettia pittance as revenue from the tons of precious iron ore usby TISCO. Similarly he alleged that the Vedanta Compahas been leased out to mine bauxite in the state and is provide Rs 60 to the state government for each ton of omined as against a very high market price.


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According the Mr Samantra, the industries were wellrepresented and their interests were protected at the Hudacommittee but the same cannot be said for states withmineral resources like Orissa, who did not press on to getmore revenue from their ores for some mysterious reason.

He also pointed a finger at the chief minister hinting that a

kickback may be the reason behind it. He urged the Orissaunit of the Congress in Opposition, to oppose the Hudacommittee recommendations as due to it the ores of the statewould be sold in a throw-away basis to the industrial houseson lease.

Mr Samantra and Orissa unit of the Lokshakti Abhiyan areopposed to Tisco using the land it acquired for the steelplant near Gopalpur for establishing a Sez.

He said as per the law, over 3,400 acres of land that wasacquired by Tisco, should not remain with Tisco as thecompany has failed to utilise the land for the purpose it wasacquired.

PANEL TO LOOK INTO IRON ORE MINEALLOTMENT TO STEEL COS


New Delhi, Aug 28: The high-level inter-Ministerialcommittee set up by the Prime Minister's Office (PMO) tolook into the issue of banning ion ore exports may also tolook into the issue of allotment of captive iron ore mines tosteel manufacturers.

At the first meeting of the committee held late last week, theMinistry of Steel has suggested that since there wasdiversity of opinion on the issue of allotment of captivemines to steel-making companies, the high-level committeeshould decide on the issue.

The suggestion has been made by the Ministry in the lightof reservations expressed by existing investors in this sectoron the controversial recommendation made by the AnwarulHoda panel report on mining policy.

Sources, however, told Business Line, "Though the SteelMinistry suggested that the committee look into the captivemining issue, no decision has been taken so far."

They added: "It was the first meeting and there were generaldiscussions. The second meeting would be held shortly,possibly in a week or two, depending on the availability ofall concerned."

The Hoda panel had suggested that existing steel companiesshould be allotted mines without the need for going throughthe auction procedure as a one-time measure in the State.

"This is creating problems because of the peculiar phrase `inthe State' in the Hoda committee report. For instance,Rashtriya Ispat Nigam Ltd (RINL) in Andhra Pradesh doesnot have captive mines. Nor does Andhra Pradesh have anyiron ore reserves.

The situation is similar for Essar in Gujarat and Ispat Maharashtra. Therefore, there is a need to work out tcourse of action and there should also be clarity in tpolicy for new brownfield and Greenfield capaciadditions," the sources said.

The PMO had constituted the inter-Ministerial gro

following a letter to the Prime Minister, Dr ManmohSingh, by Mr Naveen Jindal, Vice-Chairman and ManagiDirector of Jindal Steel & Power and member of the LSabha, seeking a ban on iron ore exports.

The committee has representation from the Ministry Steel, Department of Industrial Policy & Promotion, tDepartment of Economic Affairs and the Ministry Commerce, with the Secretary (Mining) as its convenor.

GOVT PLANS NEW COAL ROYALTY SYSTEM


New Delhi, Sept 4: The Government is planning a neroyalty structure for coal that would have a fixed as well a variable component to replace the existing system offixed rate per tonne of coal extracted. If the new systemput in place, revenues from coal royalties could go up by 10 per cent, sources said.

That may eventually lead to an equivalent increase in coprices if the producing companies decide to pass on tincreased costs to the consumers.

The current formula being put forward by the Coal Ministwas originally suggested by the Prime Minister's AdvisoCouncil headed by Dr C. Rangarajan, the sources said.

The Hoda committee set up by the Planning Commissihad also recommended a transition to the ad valorem systefrom the current fixed sum system.

New formula

In the latest formula, State Governments receive predetermined fixed amount per tonne of coal mined. Seven if coal prices go up, the State Governments do not ga share of it, and the mining companies book all the profit

As per the new formula, the new royalty amount would determined by the summation of a fixed amount per tonthat would be decided by the Government plus a fixpercentage of the selling price of the coal.

Six ratesAs of now, there are six rates of royalty applicable to sgrades of coal produced in India. For Grade I coking coalis Rs 250 a tonne; for Grade II, Rs 165; for Grade III, R115; for Grade IV non-coking coal, Rs 85; and for Gradenon-coking coal, Rs 65. For coal produced in AndhPradesh, the applicable rate is Rs 90.

Sources said that the new formula is a middle way accommodate the interests of both coal-producing and coconsuming States, as coal royalty goes to the respecti


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State's exchequer and offers a stable source of revenue tothem.

The coal-producing States had been demanding theintroduction of an ad valorem royalty system since it wouldadd to their revenues with the dynamics of coal prices.

On the other hand, States without coal reserves, but with

some of the major consuming sectors such as cement, steeland power, had been demanding continuation of the existingsystem and status quo be maintained.

INVESTMENT PANEL BACKS VALUE-BASEDMINING POLICY

Pragativadi

Bhubaneswar, Sept 8: Chairman of the InvestmentCommission and chief of the Tata Group Ratan N Tata hasfavoured the value-based mining policy of the Orissagovernment.

Supporting the policy, he said that the decision of the stategovernment not to allow export of minerals was correct.

The Commission chairman accompanied by anothermember of the Commission and chairman of HousingDevelopment Finance Corporation (HDFC) Dipak Parikh,as part of their state visit, had a meeting with senior stategovernment officials that was presided over by chiefminister Navin Patnaik at the State Secretariat inBhubaneswar on Wednesday.

The meeting reviewed investments in energy, steel,aluminum and other sectors.

Besides, the state government also submitted a report

relating to ongoing investments in the state.This apart, the state government also apprised theCommission of the infrastructure development that is beingtaken up with the investments made by the private concerns.

Among other issues figured at the meeting were, rawmaterial support for mega investments through the valueaddition principle in the grant of mining leases, preferentialallocation of coal blocks to industries coming up in thestate, royalty on ad valorem basis, adequate compensation tohost state for generation of thermal power and specialindustrial incentive package for KBK region on the lines ofthe policy dispensation given to Himachal Pradesh and

Uttaranchal that include income tax and excise dutyexemption for a period of 10 years from commencement ofcommercial production.

While making a specific mention about the single windowmechanism to be set up under the Orissa Investment(Facilitation) Act, 2004 for speedy investment approval, thechief minister also highlighted the pioneering policydispensation put in place by the state government on theRehabilitation and Resettlement (R&R) front.

He sought support from the Commission in facilitatingcreation of an appropriate policy framework to enable the

state to go ahead with the infrastructure development.

Besides, chief secretary Subas Pani made a presentatiunderlining the advantages of Orissa in terms of minewealth, energy potential, metal industry base, competitimanpower and strategic location.

The Investment Commission specifically discussed abo

the process of five investment proposals, namely Posco's million tonne steel project at Paradip, Tata Steel's smillion tonne project at Kalinga Nagar, L&T's aluminu(Rayagada) and smelter project, AES proposal for capaciexpansion in OPGC and Reliance Power Project at Hirma.

Briefing newsmen after the meeting, Tata said that tmeeting discussed in detail about the problems faced by tOrissa government on the investment sector.

He said that the Commission would take up the issues of tstate with the ministry of finance and other concernministries to sort out these bottlenecks.

Hailing the mining policy of the state government that hdecided to set up a value-based industry in the state insteof exporting iron ore from the state, Tata said that Oriswould play a major role in the realisation of national growtargets and assured all possible support on the policy issuraised by the state government.

Among others, steel and mines minister Padmanav Beheand energy minister Surya Naryan Patro were also present

HIRMA POWER UNIT PUT ON HOLD

Newindpress.com

Bhubaneswar, Sept 27: The State Government on Tuesd

deferred the scheduled signing of the memorandum understanding (MoU) with the Reliance Energy Limit(REL) for establishment of a 4000 MW power plant Hirma in Jharsuguda district until all the disputes betwethe distribution companies controlled by it and Gridco aresolved.

The project, with an estimated investment of over Rs 16,0crore, was cleared by the High Power Clearance Committheaded by Chief Minister Naveen Patnaik on September 2

The signing of the MoU was also scheduled for TuesdaHowever, the State Government deferred it in the face criticism from the Opposition parties and green groups.

The three distribution companies, which were controlled REL - Southco, Nesco and Wesco had an outstanding Rs 2,100 crore payable to the Gridco.

The Orissa Electricity Regulatory Commission (OERC) hdirected the Reliance ADAG to pay Rs 1,200 crore Gridco in 20 instalments in 10 years.

Besides, it has also revoked the licences of the thrdistribution companies acting on a complaint from GridcThe REL approached the Appellate Authority against tOERC order. The Appellate Authority has appointed twofficials to run the three distribution companies.


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Energy Minister Surya Narayan Patro said the MoUbetween the State Government and the REL would besigned soon for establishment of the power plant after theproblems were sorted out. Patro said a joint task force hadbeen constituted to resolve the outstanding issues.

Patro said besides the issue of outstanding dues, several

other problems were needed to be sorted out. Reliance hasnot renewed the shareholders agreement since March 2003.

The other problem is the servicing of the Rs 400-crorebonds pledged to Gridco for payment of dues of NationalThermal Power Corporation (NTPC).

Sources said though the State Government was trying toiron out a settlement with the company, Reliance is notprepared to commit anything as its appeal is pending beforethe Appellate Authority.

MOUS FOR POWER PLANTS SIGNED

Statesman News ServiceBhubaneswar, Sept 26: Orissa powered itself in its marchtowards becoming the power house of the nation today with10 independent power producers signing MoUs with thegovernment entailing an investment of over Rs 45,000 croreand generation of 10,920 MW in the first phase.

The companies which signed MoUs today were Tata PowerCompany Ltd (1,000 MW plant in Cuttack district), CalcuttaElectricity Supply Corporation (1000 MW plant inDhenkanal district), Sterlite Energy (2,400 MW plant inDhenkanal district), Essar Power (1,000 MW in Anguldistrict), Jindal Photo Ltd (1,000 MW plant in Angul), KVKNilachal Power (600 MW in Cuttack district), Monnet IspatEnergy Ltd (600 MW in Angul district), Lanco Group(1,320 MW plant in Dhenkanal district), Visa Power (1,000MW either in Cuttack or Angul district) and Bhusan Energy(1,000 MW in Angul district).

Significantly, Reliance Energy was missing from the list.The company was expected to sign an MoU for its proposedmega power plant the first phase of which will generate4,000 MW.

Though efforts were on till the last minute, contentiousissues relating to clearance of arrears of the RelianceEnergy-run distribution companies remained unresolvedleading to the deferment of the MoU signing. It is reliably

learnt that the government raised several queries and thecompany was yet to meet them to the satisfaction of thestate.

After the spate of MoUs in the steel and alumina sector,Orissa with its huge coal reserves had been able to attractprominent power generators. Today, 10 of them turned up toestablish thermal plants and most of them have preferred theDhenkanal- Angul hot bed.

Though chief minister Mr Naveen Patnaik emphasised thecreation of an Environment Management Fund with

contributions from generators to ameliorate the effect of tproposed thermal plants, the issues relating to water and fash use are yet to be studied.

The focus of the speeches were on the revenue generatiand projection of electricity demand pushing even the laand coal requirement to the backdrop. Energy minister M

SN Patra, however, claimed that Orissa had coal reserves produce 1 lakh MW for 100 years. In fact, the total larequired by these projects is said to be over 13,000 acres.

As for revenue and energy advantages, the state governmeclaimed that it would get at least Rs 1,700 crore per annuThe companies have agreed to contribute 6 paise per unit energy which will be sold outside the state and authoriover 25 percent of the power sent out from the plant as weas access to power generated in excess of 80 percent of tplant load factor. The government said the 2,475 MW power will be available to the state.

The chief minister stressed adherence to pollution norm

and to the RR policy. He also pointed out that direemployment to 10,000 people and indirect engagement another 20,000 will be created by the power plants.

ULTRA POWER PLANT: CENTRAL TEAFINISHES SITE-SEEING

Newindpress.com

Bhubaneswar, Sept 14:A joint team of Central ElectriciAuthority (CEA) and Power Finance Corporation (PFC) halready visited Jharsuguda and Sundargah districts to locaa suitable area for installation of the proposed 4,000 Multra power plant. The Centre has decided in principle to s

up a mega power project in the State following demanfrom Orissa having a huge coal reserve.

Earlier, the Centre had announced setting up of five ultpower project of 4,000 MW generating capacity each undtariff based competitive bidding route in Madhya PradesChandigarh, Gujarat, Karnataka and Maharashtra.

Apart from site selection, the joint team discussed tsource of water to meet the requirement. Since Hirakreservoir is meeting the irrigation and hydro power need the State, the only alternative source for water is Ib river.

The team explored whether Ib could meet the water demanof the proposed thermal plant, Energy Minister SN Pat

said.The State Government has proposed the Centre that onthird of the power to be generated from the ultra powproject should to be dedicated to the State. However, final decision has been taken so far.

Asked if American power major AES Corporation will bfor the proposed ultra mega power project in the State, tMinister said that the State Government would object toas was done in case of the Chhattisgarh project.


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SPAIN PLANS NUKE PLANT IN STATE


Bhubaneswar, Sept 8: Spanish nuclear power developerCala Casa Sl has evinced interest to set up a 20 MWmultipurpose-generation IV nuclear power plant on Build-Own and Operate basis, in Orissa.

An Expression of Interest (EoI), submitted to the energydepartment by city-based trading firm, Global Link Pvt Ltd,on behalf of the Spanish company said, CCS would invest80 per cent of the project cost and the state government willhave to invest the remaining 20 per cent The capacity is tobe increased at a later stage in the range of 40 MW, 60 MW,80 MW and 100 MW basis, the letter addressed to energysecretary Mr A K Tripathy said: While CCS was interestedto provide fuel for a minimum contract period of 20 to 25years, the company had sought minimum ten acres of landon long lease at a reasonable price by the government.The nuclear power plant, generation IV, the simplified gas-

cooled reactor is a developed compact nuclear plant andlayout concept maximises the benefits, the letter said.

5 MORE STEEL COMPANIES STARTPRODUCTION

Newindpress.com

Bhubaneswar, Sept 26: Five more companies have startedproduction of steel. Earlier, 15 companies had startedcommercial production.

The Orissa Government had signed memoranda ofunderstanding (MoU) with 43 companies for establishmentof steel plants in the State.

According to Steel and Mines Secretary L.N. Gupta, the fivecompanies which started production are, Bhusan Steel andStrips Limited, Action Ispat Steel and Power PrivateLimited, Eastern Steel and Power Limited, Maithan IspatLimited and Shyam DRI Power Limited.

Gupta said 20 companies which have started productionhave invested Rs 10,000 crore. While 6,764 persons fromwithin the State have been employed in these plants, 2,340from outside have been appointed.

The progress of six big plants was also reviewed by Gupta.The six companies have already invested Rs 6,000 crore intheir plants and employed 661 persons (390 from the Stateand 271 from outside).

The big projects include the 12 million-tonne plant to be setup at Paradip by Korean major Posco. In the face ofopposition from local people during land acquisition, theKorean company has already scaled down its requirementfor land by 20 percent as a result of which the number offamilies to be displaced by its plant has come down to 450.

The proposed six million-tonne plant by the Tata Iron andSteel Company Limited (Tisco) at Kalinga Nagar has also

progressed after the January 2 police firing in which tribals were killed.

The State Government has offered the Tatas 550 acres land which it had provided to Maharashtra Seamless fstarting the project work.

Work on the four million-tonne plant to be established b

the Essar Group at Paradip has also not started as the StaGovernment is yet to locate the land required for the proje

The Essar Group had signed an MoU with the StaGovernment to set up the plant at an estimated investmeof Rs 10,721 crore. The land requirement for the project westimated to be 2,500 acres.

The other big projects include the one by Bhusan Steel aStrips Limited to be established at Meramundali Dhenkanal district.

The company had signed an MoU with the StaGovernment for establishment of a three million-tonne plawith an investment of Rs 5828.15 crore.

Sterlite Iron and Steel Limited had signed an MoU with tState Government for establishment of 5.1 million-tonsteel plant at Palasponga in Keonjhar district with investment of Rs 12,502 crore.

The land requirement was projected at 3,400 acres.

Jindal Steel and Power Limited had also signed an Mowith the State Government for establishment of a smillion-tonne steel plant at Deojhar in Keonjhar district wan investment of Rs 13,135 crore.

However, chances of the company setting up the plareceded after it signed an MoU with Jharkhand Governme

to set up a five million-tonne steel plant.GOVERNMENT TO SIGN MOUS FOR 4 MINSTEEL PLANTS

Newindpress.com

Bhubaneswar, Sept 20: The State Government will sosign Memoranda of Understanding (MoUs) with foprivate companies for establishment of mini-steel planwith a total investment of Rs 1,720 crore.

The Government had so far signed 43 MoUs with privacompanies for setting up steel plants with a total investmeof more than Rs 2 lakh crore.

Of these 43 MoUs, the Government had issued show-caunotices to at least 10 companies for not taking any interein setting up the plants. It has already cancelled the MoUwith three companies for this reason.

Official sources said the four companies, which haevinced keen interest, to set up the mini steel plants are ScSteel, Bhaskar Steel and Ferro Alloys, Sri Mahabir FerAlloys Limited and Maa Samleswari Industries Limited.

While Scan Steel has proposed to set up 0.568 mtpa steplant at Bajbahal in Sundargarh district at an estimated co


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of Rs 590 crore, the Bhaskar Steel and Ferro Alloys hasproposed to have a 0.27 mtpa steel plant at Tumkela nearBonai in the same district with an investment of Rs 312crore.

Similarly, Sri Mahabir Ferro Alloys would set up 0.38-mtpasteel plant in two phases at Kulugaon near Rourkela at an

estimated cost of Rs 435 crore and the Maa SamleswariIndustries Limited would invest Rs 284 crore to set up a0.257 mtpa steel plant at Lapanga in Jharsuguda district.

Official sources said MoUs with these companies would besigned before theDurga Puja festival.

SINOSTEEL'S FIRST EVER PLANT IN ORISSASOON


Bhubaneswar, Sept 13: China's second biggest iron oretrader Sinosteel Corp is likely to set up its first-ever steel

plant in India to tap the country's deposit of the steelmakingingredient as demand for the alloy rises.

Sinosteel may build a 3-million-tonne-a-year plant inOrissa, competing with ventures planned in the east IndianStates by Mittal Steel and Posco, Hong Sen Wang,managing director of the company's Indian unit, is reportedto have said. The plan is expected to be finalised by theyear-end.

Sinosteel may initially invest $500 million on the ventureand is seeking rights to mine 5 million tonnes a year of ironore for up to two decades. The company will decide on thelocation after the study is completed, said Wang, who metofficials from Orissa's steel ministry on Tuesday.

GOVT ZEROES IN ON KEONJHAR, BHADRAKSITES FOR MITTAL'S PLANT


Bhubaneswar, Sept 13: The Orissa Government hasfinalised two sites for the 12-MTA steel plant proposed tobe set up by Arcelor- Mittal Steel, official sources said onWednesday.

"They will be finally offered two sites, in Keonjhar andBhadrak districts," on September 16, when the StateGovernment and Mittal Steel Team will have a meeting to

finalise the site, said the sources, adding that the Mittals'preference is open as they may go for either a mine- orshore-based location for their project.

The Mittal's were offered sites in the iron ore-rich Patnaarea in Keonjhar district and Basudebpur-Dhamra inBhadrak district as possible locations. This is the latestdevelopment after Chief Minister Naveen Patnaik held ameeting with Mittal Steel Chairman Lakshmi Niwas Mittalin Mumbai a few days back. Mittal had said they wanted tofinalise the sites as soon as possible.

A place close to the mines, railway tacks, roads and, moimportantly, port would be preferred, Dr Sanak Mishrchief of Indian Operations of Mittal Group, had said durihis recent visit here.

According to sources, the proposed site at Patna tehsil Keonjhar is a landlocked area having 7,584 acres of land,

which private land is 4,312 acres and Government land 3,272 acres. The number of families to be affected is 1,2with a population of 4,864.

In the wake of the January 2 Kalinga Nagar police firinthe State Government is looking for places for industrprojects where there would be the least displacement of tlocals. And Patna suits the bill, if the Mittals opt for a minbased site, said an official.

For a port-based site, they will be offered the BasudebpuDhamra area, where the Dhamra Port Company, a joiventure of L&T and Tata Steel, is setting up a major port handle 12 to 23 million tonnes of cargo per annum. Earli

Mittal Steel Team, led by Dr Sanak Mishra, has alreavisited the place. In the mean time, the Mittal technical teawill visit the Basudebpur-Dhamra area by September 1The team has already covered all the seven spots offered the Government, including Patna.

STEEL PROJECT: ORISSA UPBEAT, MITTACAUTIOUS

Pragativadi,

Bhubaneswar, Sept 13: As Orissa exuded confidence than agreement with Mittal Steel on a 7-billion dollar steplant could be reached by November, the world's large

steel maker has become more circumspective as it seemore commitment from the Centre and the stagovernments toward its project.

Mittal Steel, which has announced two identical 12 millitonne projects in Orissa as well as Jharkhand, said that Indshould make it easier for investors to invest here.

Delivering a lecture at the Diamond Jubilee function of tIndian Institute of Metals in New Delhi on Monday, CEOMittal Steel (India) Sanak Mishra said that the desire of hcompany to be in India is considerable.

It will take a lot of hard work from both the government New Delhi and the states on our project, he added.

Earlier in the day, Orissa minister for steel and minPadmanabha Behara said that the MoU would be throuonce Mittal Steel acquires 3,000 acres of land it has sougfrom the state government.

He said that the global Memorandum of Understandi(MoU) with Mittal Steel was likely to be signed within tnext two months.

Indicating that the steel major might not use the Bhambport as was being reported, he said Mittal is likely to use tupcoming port in Gopalpur being built by the Oris


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government. After acquiring French steel major Arcelor, LN Mittal had in July said Mittal Steel would set up a 12million tonne steel plant in Orissa. He had announcedsimilar plans for Jharkhand in October last.

The Orissa government had shown seven possible sites to anArcelor Mittal expert team. To speed up things, the steel

giant has appointed MECON as consultant to select a sitefor the project.

However, Mishra said that the state governments should befirm on their commitment to enable the company fructify itsinvestment in the country.

He also noted that the Centre understood the company'spriorities -- evident from the fact that prime ministerManmohan Singh was heading the InfrastructureCommittee.

Behara said Mittal was likely to use either the Paradip Portor the upcoming port in Gopalpur being built by the Orissagovernment for its steel project.

The possible sites for Mittal's Steel plant are Khallikot inGanjam, Basudevpur in Bhadrak, Balgopalpur in Balasoreand Patna in Keonjhar.

MITTAL TEAM ON KEONJHAR VISIT


Keonjhar, Sept 10: Mittal-Arcelor's consultant for OrissaMecon visited the proposed project site at Patna here onSaturday.

Orissa's 12 million ton project site at Patna, which ranksnumber one (as per Mittal- Arcelor's Indian director, Sanak

Mishra) was visited by Mittal's GM (project) S Venkateshand Mecon Ltd's GM AK Sinha along with a seven-memberteam. The team also comprised IDCO's Land AcquisitionOfficer KK Mohanty, and the sub-collector Bibhuti BhusanDas.

The team had a long meeting with the District Collector SKLohani and other officers. In an informal chat with localscribes Venkatesh told this is first and unique of Mittal'sIndian projects and is to be in the Green Valley Area(simultaneously in Orissa and Jharkhand). According to theteam, the State and District Administration's co-operationand presentation is tech-savvy and highly encouraging andhe hoped for the same in other two proposed sites in theState.

Answering to a query by The Pioneer, the team head stated,"We are with this project considering all the pros and consin the local market and there will be development with ahuman face strengthening the commitment of the Mittal'sfor their respect for respective laws and customs." Severaleminent citizens met the team and presented local demandsto have this plant with justification keeping in view the localconcerns.

JINDAL LAND ACQUISITION

Newindpress.com

Bhubaneswar, Sept 27: Land acquisition for the propossteel plant to be set up by the Jindal Steel and PowLimited at Angul has gathered momentum. Larequirement for the six million tonne per annum capaci

plant has been projected at 5,750 acres. The project entaan investment of Rs 13,135 crore. Sources said the compasigning an MoU with the Jharkhand Government will in nway affect its project in Orissa. The site of the plant hbeen shifted from Deojhar in Keonjhar district to Angul ftechno-economic reasons.

POSCO, 30 OTHER SEZ PROPOSALS GET BONOD

PTI

Bhubaneswar, Sept 29: South Korean steel giant Posco

proposal to set up a mega Special Economic Zone in Oriswith an investment of Rs 53,000 crore was among the proposals cleared by the Board of Approvals.

While the mega multi-product SEZ of Posco in OrissJagatsinghpur district was given in-principle nod along wi12 others, the board also gave final approval to 18 casPosco's SEZ would be spread over an area of 1,6hectares. With today's decision, the number of SEZs thhave got final approval has gone up to 181, according to official release issued here.

Aware of the storm that land acquisition for SEZs hcreated, the release mentioned that state governmerepresentatives present at the BoA meeting confirmed all tzones cleared today would come up either on waste lanbarren land or single crop land. Besides, six more SEZwhich have already got government approvals, were notifitoday taking the total number of zones that have benotified to 32.

The biggest SEZ that was notified today belonged to EssGroup at Hazira in Gujarat. The SEZ would be dedicated engineering products and would be spread over an area 247.5 hectares. Zydus's 48.83 hectare pharma SEZ Ahmedabad was also notified along with four IT SEZs.

This was the fifth meeting of the BoA since the SEZ Acame into force in February this year. The Board will ho

three more meetings over the next ten days to clear pendiapplications for setting up SEZs.

NORMS FOR SEZ LAND SOON

Newindpress.com, Business & Economy News Bureau

New Delhi, Sept 20: The Board of Approvals (BoAs) fSpecial Economic Zones (SEZs) will shortly lay down neguidelines governing the development of such zones, saGopal K Pillai, special secretary, Ministry of Commerce a


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Industry, at the India SEZ Summit 2006, organised by theConfederation of Indian Industry (CII) here on Wednesday.

Though SEZs have been around only for a few months now,some interesting successes have been achieved, forexample, in developing Indias electronic hardware sector.

The government's move to lay norms for land acquisition

comes in the wake of severe criticism from several quarterswho allege that farmers were being pushed out of their landto benefit a few big companies.

"We are meeting the representatives of state governmentstomorrow to advise them on land acquisition for SEZs. TheBoAs will lay down some general guidelines on this," Pillaiadded.

The meeting is also likely to consider norms for putting upsocial infrastructure such as schools, roads, parks, andhospitals in the zones. Though no new cases would be takenup, the BoA would discuss the cases that have already beengiven in-principle approval.

Pillai elaborated and said that the proposed guidelines willcover the percentage of processing and non-processing areasin SEZs, development of infrastructure within SEZs and theapprovals process. The guidelines will not tie developersdown as they have other statutory compliances such asapproval of their Environment Impact Assessment, approvalof the master plan by the state authority and have to followtown planning guidelines.

Pillai said some companies such as Bharat Forge haveadopted innovative models to take along displaced peopleby offering them equity shares, provide training and jobs inthe SEZs besides monetary compensation for the land.

Pillai spoke on the controversies that have come up in thewake of the SEZ Policy, announced last year. One pertainsto the projected loss of tax of around Rs 90,000 crore overthe next few years. The ministry has analysed this and feelsthat the net benefit to the government through indirect taxeswill be Rs 45,000 crore.

The other controversy has to do with land acquisition. Todate, 150 SEZs have been set up covering 26,800 hectare(Ha), and no farmers have been displaced, claimed Pillai.Another 225 applications are pending that will require75,000 Ha. This is a tiny fraction of Indias cultivable areaand we need to keep a sense of proportion, he added.

Anil G Mukim, joint secretary, ministry of commerce andindustry, said that SEZ-based industries are expected toemploy half a million people by December 2007 and investRs. 100,000 crore, including Rs 25,000 crore of FDI. In2005-2006, the 18 operational SEZs exported Rs 22,500crore worth of products and employed 1.23 lakh people.

It maybe recalled that under the SEZ Act 2005, the centralor state government, or any individual can set up an SEZ.

Individuals can either apply to the state governmentauthority or directly to the BoAs. Fiscal provisions to SEZ

units and developers include duty free import of goodexemption from Service Tax and Central Sales Tax.

FDI up to 100 percent under the automatic route is alallowed for setting up SEZs. The next meeting of BoAs September 28 would take up all the proposals froChandigarh, Dadra and Nagar Haveli, Goa, Himach

Pradesh, Jharkhand, Maharashtra, Orissa, and PunjaWhereas, The October 4 meeting would consider proposfrom Bihar, Haryana, Gujarat, and Uttar Pradesh, while tnext meeting two days later would take up proposals froMadhya Pradesh, Rajasthan, Tamil Nadu, and West Benga

Though, the government is focusing on SEZs at the expenof rejuvenating existing urban industrial clusters. But texisting domestic industry should not be orphaned.

NALCO TO SET UP RS 15000CR ALUMINIUCOMPLEX IN ORISSA

PTI

Bhubaneswar, Sept 29: Aluminium major Nalco will sup a second Greenfield integrated aluminium complex Orissa at an investment of Rs 15,000 crore. The complwill comprise a 1.5 million tonne alumina refinery,smelter with installed capacity of 2.5-3 lakh tonne andcaptive power plant. For this purpose, Nalco has moved tOrissa government for allotment of bauxite deposit in tGandhamardan hills in Sambalpur district. These mines aestimated to have 220 million tonne bauxite reserve. "Tapplication is now pending with the government and onwe get the green signal, we will go for the detailfeasibility study of the project, said CR Pradhan, chairm

and managing director, Nalco. The public sector unit htried to mine bauxite in the Gandhamardan hills about twdecades back. But it withdrew from the taks followingprotracted

GREEN GROUP SEES THREAT TO NIYAMGIRI

Newindpress.com

Bhubaneswar, Sept 26: Green Kalahandi, an organisatiopposing the Vedanta Alumina Refinery project Lanjigarh in Kalahandi district, announced that it wouintensify its stir from October 2. Addressing mediapersohere on Monday, Green Kalahandi chairman Bhakta Char

Das said that people in all the villages of the district woutake a pledge on October 2 to throw Vedanta out Kalahandi and protect the environment.

He said that activists of the organisation would move frovillage to village in the district making people aware of tthreat posed by the project to water sources and forest in tarea. Kalahandi, which had recently emerged as the granaof Orissa making people self-reliant in agriculture sectowould turn into a desert if the Niyamgiri Hills is allowed be exploited by the company for mining of bauxite.


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He maintained that Kalahandis agriculture economy wouldbe severely affected if the project is allowed to run. Experts,academicians, wildlife experts and the common people havebeen opposing the project for long, he said and added thatseminars on the negative impact of the project wereorganised even in New Delhi to mould public opinion.

Das said that people of the district would observe twominutes silence and resort to slogan shouting against theproject for five minutes on October 2, on Dussehra.

Describing Vedanta as a demon, Das said that thecompanys effigies would be burnt on the evening ofDussehra in all the villages of the district.

He said units of the organisation would be set up in eachpanchayat in Lanjigarh block to spearhead the agitation.

Das, a former Union minister, said the gram sabha meetingheld at Lanjigarh on May 16 had resolved not to allowVedanta to explore even a single tonne of bauxite from theNiyamgiri Hills.

We will also not allow Vedanta to import bauxite fromoutside and run the plant here, he said, adding that under nocircumstances, the company would be allowed to go forcommercial production in the area destroying its agriculturalproduce.

Eminent sociologist TK Omen, who was also present at themedia conference, questioned the approval given to theproject on a schedule area without clearance from thecompetent authority.

The way the State Government has shown interest inpromoting the project, ignoring its possible impact, clearlyindicates that there was something fishy about it, he added.

IMFA PLANS TO SET UP ALUMINA PLANT, CHIEFMEETS CM


Bhubaneswar, Sept 16:Indian Metal Ferro Alloys (IMFA)chairman Bansidhar Panda met the Chief Minister NaveenPatnaik on Friday at the State Secretariat and submitted aproposal to set up an alumina plant in the State. Dr Pandatermed the discussion with the Chief Minister as positive.

Panda is the only industrialist from the State who hasreached the pinnacle of glory in the mineral sector. He is the

father of leading young MP of Rajya Sabha from Orissa,Baijaynta Panda.

Dr Panda said his existing plant at Therubali and Choudwarwould undertake an expansion and diversificationprogramme and that IMFA will set up an alumina plant atits Theurbali unit. Therubali is situated close to bauxitedeposits, the basic requisite for alumina.

The Group requires mining lease before it sets up itsprojects, Dr Panda added.

He further said as per the mineral policy of the StateGovernment, his company would go only for value addition

and not a single gramme of ore would be exported ra"Being a son of the soil, I want the State to prosper," saidvisibly excited Dr Panda, adding, "The moment we get tnecessary clearance from the State Government, we ahead with the projects, said Dr Panda.

Sources said the IMFA would invest around Rs 3,300 cro

in this one MTPA alumina project. It is also panning expand its existing power plant at Choudwar. At tmoment, the plant produces 108 MW power. The IMFgroup wants to enhance production to 120 MW in future Choudwar.

FM CLEARS TWO FDI PROPOSALS WORTH R192.5 CR

Orissa Diary News

New Delhi, Sept 18:Finance Minister P Chidambaram Monday cleared 26 foreign direct investment proposaamounting to Rs 992.84 crore.

This includes an investment of Rs 342 crore by Japanecompany Mitsubishi Chemicals Corporation (MCC) for PTA plant in West Bengal, Rs 192.5 crore by Russicompany JSC Technochim Holding in a titanium project Orissa, and Rs 405 crore by UK-based British Gas for gdistribution in three other projects.

These relate to ministries/ departments of chemicals apetrochemicals, commerce, information and broadcastinindustrial policy and promotion, petroleum and natural gtelecommunications, urban development, economic affaand tourism.

However, the major investment proposals pertain chemicals and petrochemicals, petroleum and natural gas.

MCC will be investing Rs 342 crore in its polyestintermediate (purified terephthalic acid) plant at Haldia West Bengal. JSC will invest Rs 192.5 crore in tmanufacture of titanium products, titanium sponge atitanium dioxide pigment in Chhatrapur, Orissa. BG Enerholdings will invest Rs 135 crore each in Andhra PradesKarnataka and Tamil Nadu to set up a wholly ownsubsidiary to transmit and distribute gas.

CONSORTIUM TO BOOST GOPALPUR PORT

Newindpress.comBhubaneswar, Sept 15: The State Government Thursday signed a concession agreement with GopalpPorts Limited for development of the Gopalpur port BOOST (build, operate, own, share and transfer) basis f30 years.

The firm is a consortium of Orissa Stevedores Limit(OSL), Sara International Limited and Noble GroLimited. Principal Secretary in the Commerce and TranspoDepartment Priyabrata Patnaik and cc Mishra signed tagreement in the presence of Chief Minister Nave


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Patnaik. The consortium would invest Rs 1,700 crore in thenext five years for the development of a multi-berth, state-of-the-art port. The equity share of the consortium in theproject would be Rs 450 crore while the rest would beraised from financial institutions.

Investment will be Rs 720 crore in the first two phases and

go up subsequently. Naveen said the port would bedeveloped into an all-weather facility in four years and havethe capacity to handle cargo of 10 million tonnes perannum. The project will generate direct and indirectemployment for a large number of youths. A titaniumdioxide plant and a Special Economic Zone (SEZ) would beset up at Gopalpur soon to facilitate new industries.

The State Government is also exploring the possibility offormation of a Special Purpose Vehicle (SPV) for extendingNuapada-Gunupur railway line to Theruvali. This will linkthe alumina industries in the KBK districts with Gopalpurport, he said.

The Government is also building 1,000-km road on par withnational highway to link KBK with Gopalpur and otherparts of the State. Gopalpur port has the advantage of closeproximity to Golden Quadrilateral NH-5 and Kolkata-Chennai railway line and can be developed into a full-fledged port in a very short time, Naveen claimed.

Mahimananda Mishra, MD of OSL told the media that theport has facilities for anchorage and the consortium wouldinvest Rs 100 crore for upgrading the facility to load thefirst vessel in January-February, 2007.

In the first year of Phase-I, the port will handle over 2.5 lakhtonnes of cargo. This will increase to 7.5 lakh tonnes by the

third year. In the stage-1 of Phase-II, an all-weather port,with break-water provision and 660-metre berth facility toaccommodate vessels up to 12-metre draft, will beconstructed.

Four international-standard berths are expected to be readyto load cape-size vessels in the stage-II of Phase-II. Theconsortium has plans for construction of a containerterminal and an oil jetty in 2012-13.

The port will also handle discharge and the facility will beconstructed as an LNG receiver to cater to the needs ofindustries in the Eastern sector, he said. D P Singh, MD ofSara International, said the port is strategically located toboost trade in the entire country.

Minister of State for Commerce and Transport JaynarayanMishra and Chief Secretary Subas Pani were present

TRIBALS SAY NO TO FURTHER DISPLACEMENT

Pradeep Baisakh

Bhubaneswar, Sept 7: Tribal leaders of various tribalorganisations from 15 districts of Orissa got together in aconsultation workshop on Draft National Tribal Policy 2006at the Pantha Nivas, Bhubaneswar and came up with a

memorandum, which was sent to the Prime Minister, tTribal Affairs Minister, the Orissa Governor and the OrisChief Minister. The leaders agreed upon a total no-no further displacement in the tribal areas. When askeSukhdev Munda of Orissa Adivasi Adhikar Abhijan sai"The tribals are never the beneficiaries of the so-call

development initiatives of the State, which the nationpolicy itself recognises. Ultimately we are displaced froour jungle and jamin, our livelihood is lost; at our coothers develop." "We welcome the small industries, whicause no displacement, no harm to ecology and are meafor the development of tribals," said Biranchi Nayak Sakti and Mukti Sangathan.

The leaders expressed their strong protest against tattempt of the Orissa Government to amend the OSATRegulation of 1956 (which was amended in 2002) facilitate the alienation of patta lands of the tribals to tnon-tribals. Kaira Singh of the Ho Munda Bhasa VikParisad alleged that the Government by bringing in suamendment was trying to give our land to the big industrieLamenting on the regressive attempts made by tGovernment Singh said, "On one hand the Centre considering providing rights to tribals on their land aforest, the State is promoting the menace of land alienatiocoming under the pressure of some vested interest groups the other." "It seems the Government has not learnt anlesson from the Kalinga Nagar incident," added MiltToppo, a leader from Sponge iron area of Sundergadistrict.

The leaders expressed dissatisfaction over the way tGovernment published the draft (only on website) to se

public opinion that too in a very limited time period. Tpolicy would affect the life and livelihood of more than million Adivasis. It, therefore, needs very thoroudiscussion among all the Adivasi communities apart froothers, they said.

The leaders also said the policy surprisingly did not mentiany welfare measure for the Adivasi children. A separasection exclusively dealing with the welfare adevelopment of tribal children should be included in tpolicy, they said.

The memorandum written to the PM, the CM and tGovernor stated that there should at least be two resident

schools, one for boys, another for girls and the teacheappointed should be from same Adivasi communities.

Provisions should be made for proper training to Adivateachers, providing adequate facilities for learning ateaching, considering the option of using local dialects medium of education in at least lower primary level, makiadequate budget allocation and placing strict monitorimechanism it said.

One of the tribal leaders said the Orissa Government hdecided to privatise some hydropower projects. Tproposed water policy explicitly speaks about wa


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privatisation. These have potential toward direct andindirect displacement of Adivasis.

Special provision in the policy toward banning direct andindirect privatisation of water and water bodies should bemade, he added.

Saying that there is no religious code Bill for tribal religions

and a tribal child is enrolled in school their name ismentioned under some or the other recognised religion likeHinduism, Christianity etc, a leader said, "We thereforedemand another code Bill by some title that may emergeafter consultations with various Adivasi communities shouldbe added to the existing ones recognising all the Adivasireligions.

The memorandum said provisions should be made to keepAdivasi languages as one subject in primary level in allAdivasi areas; the history, culture, festivals etc of therespective Adivasi community or communities should betaught in that and a local Adivasi person be appointed as a

teacher to teach that subject.Promotional measures should be taken and concretised todevelop the Adivasi dialects into full-fledged languages itdemanded.

LAND ACQUISITION DECRIED


Bhubaneswar, Sept 26: Timing their protests with plethoraof MoUs signed today, the Jibika Banchao Andolan activistsdecried the mindless vesting of thousands of acres ofvaluable land to MNCs and adding to the already existing 5lakh landless in the state by uprooting people.

Led by president of the Andolan Mr Kedar Ray, severalsocial activists, including Mr Rabi Behera, Mr Pratap Sahu,Mr Alok Mohanty, Mr Direndra and Mr Haladhar Sethy,delivered fiery speeches condemning the government'sMoU madness. It is blindly signing one MoU after anotherthrowing open its natural resources to the mercy of MNC'swithout any assessment of land requirement or theimplications of all these industries.

The health, education and other social sectors are ignored,lakh of people do not get a small piece of homestead landand yet the government is hell bent to uproot and displacepeople, they alleged. The one who controls land and water

resources will rule the world and these MNCs are out tograb it, they said. They demanded consent of villagesthrough gram sabha before signing of MoU with anycompany and constitution of an independent expertcommittee to assess the land requirement of each industry.

Each and every displaced family should have a job in theproject, land for land and means of livelihood, homesteadland for all landless people within three months, wereamongst the other demands voiced by the organisation.

POSCO UPDATE

MINING LEASE STILL ELUDES POSCO


Bhubaneswar, Sept 19:Can South Korean steel compaPosco meet its deadline for commissioning the first phase

its production by 2010? Looking at various aspects, it unlikely to achieve the target. This is because the companis facing problems, both at ground as well as top levels.

While the people at the project site in Jagatsinghpur distrhave been resisting the land acquisition process, the Staadministration is yet to clear the company's mining lease.

The company needs at least 600 million tonnes of iron oto feed its proposed 12-mtpa steel project. This came to tfore on Monday when the State's Steel and Mines MinisPadmanav Behera admitted that the State is yet to forwathe mining lease proposal for the Central Governmeapproval. Posco had applied for the prospecting licence acaptive mining lease in Thakurani, Outer Malangtoli aKhandadhar mines in Keonjhar district on September 22005.

The issue was raised at a meeting here when Chief MinistNaveen Patnaik reviewed the project a day ahead of tPrime Minister's Office (PMO) taking stock of the projeon Monday. "We are giving the first priority to lanacquisition. Then we may go for recommending mine leafor Posco," Behera told reporters here on Monday.

Though Posco has applied for the Thakurani mines neBarbil in Keonjhar district, it may not easily get the leabecause the Jindals have already gone to court opposing tState Government's move to hand over the mines to Posc

This may cause further delay in Posco getting mines, said insider.

This apart, though 14 months have already passed sinPosco entered into an MoU with the Government, it has far got only 1,138 acres of Government land. The companrequires 4,004 acres of land, of which 3,566 acres aGovernment land. Out of 454 acres of private land needfor the project, not an inch has been acquired," said a Posofficial.

In order to expedite implementation of the project involvithe country's biggest-ever foreign direct investment (FDthe Prime Minister's Office held a review meeting in De

on Monday. Principal Secretary in PMO TKA Nair inquirabout the infrastructure development for the project.

"The meeting with the PMO was successful," said OrissSteel and Mines Secretary LN Gupta.

Posco-India CMD Soung-Sik Cho remarked, "We are veglad that the Central Government carried out a thorouevaluation of the current status of the project. This initiatiwould further help expedite the project."

Meanwhile, coinciding with the PMO's review the RegionPeripheral Development Area Committee (RPDAC), head


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by Central Revenue Divisional Commissioner SureshChandra Mahapatra, held its first meeting at Jagatsinghpurfor facilitating the land acquisition process. The meetingdiscussed the Orissa Resettlement and Rehabilitation Policyin context of the Posco project.

Leaders cutting across the party lines favoured raising the

level of financial assistance to land oustees and adequatecompensation for the betel vine owners.

There are at least 2,000 betel vines in the area. DistrictCollector Satyabrat Sahu informed that a special package isbeing worked out for the betel vine and prawn farmers.

PMO CONCERNED ABOUT DELAY, TARDY PACEOF POSCO

Bhubaneswar, Sept 18: The Prime Ministers Office todayconducted a detailed review of the current status of Poscosproposed $12 billion steel plant project in Orissa and is saidto have urged the state government to see to it that thecompany meets its schedule date of commencing work onthe project - that is - April 2007.

Reliable sources said the PMO was concerned about thedelay and the tardy pace of progress as almost one-and-a-half year had passed since the signing of the MoU whichentails the biggest FDI in the country till date.

Top officers of the state government and the company hadbeen summoned by the PMO for a meeting in New Delhitoday. Various aspects of the project - the progress andbottlenecks - were discussed at length, said these sources.

It was crystal clear that the PMO was pushing hard for theexpeditious work on the project and was worried over thecontinued resistance and opposition to displacement.Speculations are that the PMOs intervention had beensought to try and speed up the work which was gettingbogged down due to the resistance put up by a section of thevillagers at the proposed site.

The state government officials had gone prepared to face abarrage of questions in New Delhi on the slow progress ofwork at the ground level, the inability to provide requiredland as well as access to the area etc. As such, there hasalready been a delay of at least four months to the originalschedule for the starting of work.

Mr Soung-Sik Cho, the CMD of Posco-India, who attended

todays meeting, hoped that the initiative by the Centralgovernment would help expedite the project work. Heexpressed his gratitude to the Central government forevaluating the status of the project.

Significantly, it is for the first time that the PMOsinvolvement has become public. The Congress party in thestate had objected to various clauses in the MoU and theLeft parties submitted a memorandum to the Prime Ministerquestioning the provisions of the MoU.

POSCO PORT NO THREAT TO PARADIP

Newindpress.com

Bhubaneswar, Sept 17: Under fire for seeking to establia port a few kilometres from Paradip for its captive uKorean steel major Posco received the much-requirsupport from experts here on Saturday.

Stating that Orissa needs more ports, the top port manageof India observed that the port proposed at Jatadhari wounot pose any threat to the existing one at Paradip.

Paradip Port does not have to worry about Posco porsaid Dr Jose Paul, Acting Chairman of Jawaharlal NehPort Trust (JNPT), Mumbai.

Orissa, which is blessed by the nature, badly needs minports for its development, he added.

He was speaking at a seminar on Is Posco port a threatParadip port, organised by Nagarika committee.

Paul said it was impossible to establish a port witho

causing disturbance to the local region. What is needed is keep the disturbance within limits, he said adding, at tsame time, and locals concerns must be taken care of.

Addressing the issue of proximity between Paradip aJatadhari, the JNPT Acting Chairman said Tamil Nadu htwo major ports within a distance of 30 km. SimilarGujarat has quite a few ports but benefited immensely froport-led growth. He said Poscos demand for a captive poborders on economics. If it utilises the facility at PPT, vessels, when made to wait for berthing, will lose Rs 1.5 2 lakh a day.

The reason why the steel major wants a complete contr

over the operations is it could save Rs 148 crore during project period, Paul said. On the other hand, if it is givencaptive berth at PPT and seeks changes in tariff, the procewill be lengthy. Tariff fixation takes a year and a half ovthree or four sittings, he added.

Moreover, a captive port is not a privately-run show. It totally under surveillance of the Government, he said.

Former PPT chairman PK Mishra too supported Poscoport saying if there is an economic justification for a neport let it come up. Allaying fears that a new port in thclose proximity would cause harm to Paradip, he said tlittoral drift and sand traps would ensure that both the pocould co-exist without adversely affecting each other.

Mishra, however, felt that the zones declared quarantined each side of Dhamra and Gopalpur is a dangerophenomenon since it would create problems for neprojects. Former chairman of Cochin Port Pravat Mohantoo supported the project but felt that the port should comup in two to three years. P V Iyre, another port expehowever, felt that PPT is capable of handling the traffrequirement and there is no need for another one Jatadhari.


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BERHAMPUR

TISCOS SEZ PROPOSAL FACES STORM OFPROTESTS


Berhampur, Sept 21: The plan by Tisco to set up an SEZ

near Gopalpur port has run into rough weather as questionson whether the area acquired for a particular purpose can beused for another are being raised in several quarters.

The Tiscos proposed SEZ will come up on the land it hadacquired in the nineties for establishing a steel plant. But thesteel plant project never took off. The big question beingasked now is whether the land acquired for steel plantproject be reused for the SEZ. The environmentalists andthe traditional fishermen also stand in the way of Tiscoproject. A case filed by Gana Sangram Samity, whichspearheaded the anti-Tisco agitation in Ganjam district, isstill pending in the court of law where the Samity hadprayed for the return of land to the displaced families.

Mr Prafulla Samantra, the convener of Lokshakti Abhiyan,according to law, over 3,400 acres of land the Tisco hadacquired shall not remain with the company as Tisco hadfailed to utilise the land for the purpose it was acquired asmentioned in the MoU. His organisation also mulls overapproaching the court to restrict the Tisco from using theland acquired by it for establishing steel plant for any otherpurpose. He alleged that there were 87 oustee families fromvillages such as Chamakhandi, Kalipalli, Paikapada andBadaputi who had not yet got their compensation for the losthomestead land. He admitted that the state government hasthe power to let Tisco utilise the land for any purpose other

than the one for which it was acquired. When contacted, theformer BJP MP of Berhampur, Mr Anadi Sahu, said legallyspeaking, the state government can allow the Tisco to usethe land for setting up SEZ as the government is theultimate owner of the land. According to him, the stategovernment will have to begin a process to bring in achange in the purpose of utilisation of the acquired land.The process will involve a fresh notification invitingobjections, if there are any from the people affected by it,have to be. Mr Samantra and members of the OrissaTraditional Fish Workers Union (OTFWU), however, feelthat establishment of any SEZ by diluting CRZ normswould hamper the interests of traditional fishermen and

environment. According to him, the CRZ notification of1991 had undergone 20 amendments diluting the restrictionsmeant to protect the coastal environment. He also added thatSwaminathan Committee recommendations had furtherdiluted the CRZ regulations. Thes committee never took theopinion of traditional fishermen into account. According tohim, if SEZ is established on Ganjam coast it will lead tothe displacement of fishermen colonies as the companyowning the SEZ will not allow them to park their boats anddry their nets and fish products on the coast.

JAGATSINGHPUR

GOVERNMENT ANNOUNCES REHAB PACKAGFOR POSCO OUSTEES


Jagatsinghpur, Sept 21: For the first time Rehabilitati

Periphery Development Advisory Committee convenedmeeting on Monday to review progress on the proposPosco project and announced compensation packages fthe people who are going to be displaced in Kujanga area.

The Committee chairman and Revenue DivisionCommissioner Suresh Chandra Mohapatra chaired tmeeting held at Sadbhabana Gruha here and School aMass Education Minister Bishnu Das, Jagatsinghpur MBrahmananda Panda, Erasama MLA Dr Damodar RouKissannagar legislator Pratap Jena, representatives villagers from Posco site areas, senior Government officiaand many people representatives participated.

All reaffirmed the commitment to the proposed 12 MPosco steel plant in Paradip, which aims at a steproduction of 100 MT steel by 2020.

The meeting took up the issue of the rehabilitation aresettlement package for the displaced people for the Posproject and discussed the new R and R policy of the StaGovernment to be implemented.

According to district administration, each member offamily would be treated separately for the compensation fsacrificing land for the plant. People having 40 per cedisability, orphan and widows would be enlisted in specifamily status with regard to availing rehabilitation benefits

After the land accusation notification is issued a programmto address the immediate needs of the displaced people wbe considered and a socio-economic study will stensuring the actual condition of the affected people and identity card will be issued to each affected person.

Moreover, a decision has been taken to provide job for oof the selected member of the displaced family or one timlucrative financial assistance in exchange of their land.

However, homestead land, agricultural land, and temporahouses, financial assistance up to Rs 1.50 lakh fconstruction of new house and basic amenities would provided for the colonies after the displacement.

"Apparently there is nothing wrong with Orissa ChiMinister Naveen Patnaik trying to attract investment awoo big companies like Posco, who wants to set up the steplant at Kujanga, so we need to work together for this meproject or it will slip from Jagatsinghpur district," saSchool and Mass Education Minister Bishnu Das.

Former Minister and Erasama legislator Damodar Rout sathat direct interaction with the displaced people is necessato win hearts of the people for the project.


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KORAPUT

ADITYA REACHES OUT TO PEOPLE


Koraput, Sept 27: Aditya Aluminium Company moved onemore step towards establishing a 10,000 crore mining

project by explaining about the pros of the project to thepeople and addressing their grievances at a public hearingheld close to the mines site today.

The project entails mining of bauxite from the Kalingamalireserve near Laxmipur. The company officials asserted thatthe project would not adversely affect the water sources ofthe area and that they would provide 5 per cent of the profitearned from the mining towards peripheral development.Besides the officials from the company, the ADM and sub-collector of Koraput also attended the meeting. Talking toreporters, Mr SM Arshad, deputy general manager of thecompany, informed that the project was a joint venturebetween OMC and Aditya Aluminium Company. The entire

project will be divided into three parts: mining, refineryplant near Kansariguda and the smelter and power plant atJharsuguda, he added.

He said 300 families would be displaced by the project andthe company would adhere to the Rehabilitation andResettlement policy of the state government. Dispellingapprehensions over the impact of mining activities on theenvironment, he said since water resources originated wellbelow the bauxite reserve on the mountains the miningwould have little effect on them. Mr Manoranjan Nayak, theenv

Mining Update - September

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