Inaugural Issue 2010The voice of a resurgent Orissa

ORISSAAWAKENINGTO A NEW DAWN

RESPONSIBLECOMPENSATIONDr. Sudhakar Panda, Chairman, State Finance Commission,explains the success of Orissa’sdevelopmental model

REVERSINGBRAIN DRAINAbhijit Sen, Head, Infosys(Bhubaneswar), appraises thesuccess of Infosys within thecontext of a re-energised Orissa

ODISSI.COMING A FULL CIRCLE.

INSPIRINGENTREPRENEURSHIP

Murlidhar C. BhandareGOVERNOR, ORISSA

(Murlidhar C. Bhandare)

I am glad to know that the inaugural issue of "ODISHA ... The voice

of a resurgent Orissa", a magazine on Orissa is being brought out.

Orissa is a land of rich cultural heritage and tradition with a glorious

past. It is a land of art and artists where art achieves excellence and many

great artists born here have taken the art to the pinnacle with their talent

and devotion. Often called the Beauty Queen of the East, the state

possesses immense tourism potential that however needs to be tapped

and projected properly before the outer world to reap rich benefits from the

tourism sector.

Orissa is now on a defining state to script a new destiny by giving

priority on alleviation of poverty and increase in literacy as poverty and

illiteracy are the two ugly spots on the beautiful face of Orissa. The

initiative taken in bringing out a magazine showcasing the state's

magnificence as well as potential and possibilities in different sectors is

indeed commendable and I am sure the maiden venture will go a long

way in projecting the true picture of Orissa before global readers.

I wish the endeavour and publication all success.

RAJ BHAVAN, BHUBANESWAR-751008Tel: 91-674-2536111/2536222 Fax: 91-674-2536582, E-mail: govori@ori.nic.in Website: www.rajbhavanorissa.gov.in

MESSAGE

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Yet another year has brought with itnew possibilities, new challenges,

renewed vigour and greater impetus fordynamic growth reaching newhorizons.

The Vedanta Group is spreading rootsacross the globe. But Orissa has alwaysbeen close to our heart. The state isideally positioned to see phenomenalall-round growth in the next decade. Itspotential for economic growth, richnatural resources and cultural legacyand most importantly, the people,provide an ideal platform for a giantleap into a glorious future. We areproud to be a part of this trajectory andwill continue to focus our energy oninvestments in various sectors – thanksto the unstinted and continued supportof the people of Orissa.

At a more personal level, I am mostexcited at the prospect of seeing mydream project, ‘the Vedanta University’

taking a concrete shape. The passing ofthe Vedanta University Bill in the stateassembly has re-affirmed ourconviction that Orissa is on the verge ofa knowledge revolution. We are doublydetermined to build this world-classuniversity, which will nurture a globalcommunity of knowledge seekers.

I am happy to see the launch of themagazine ‘Odisha’. The attempt toshowcase the different facets of aresurgent Orissa through this magazinewill do wonders in unveiling the state’smanifold possibilities before a globalreadership.

I have absolutely no doubt that Orissais set to script one of the nation’s mostexceptional success stories.

Anil AgarwalChairman, Vedanta Group

ORISSAINFINITE POSSIBILITIES

The Vedanta Group is spreading

roots across the globe. But

Orissa has always been close to

our heart.

4

Over the last few years, aresurgent Orissa has beenincreasingly in the news. Thereis growing evidence of Orissareporting improvements acrossvarious indicators, whether it isindustrial investments,educational campuses, infantmortality, software exports, theease of doing business andlastly – the summation of allthat has transpired – real-estatevaluations.

This transformation is rapidly attracting global attention andinvestors are knocking on Orissa’s doors for capitalopportunities, which will ultimately set the growthmomentum rolling in the state. This magazine has beencreated with the singular objective of documenting andtracing Orissa’s traction towards the positive.

There is a new buzz about Orissa – a willingness ofentrepreneurs to commission fresh businesses, an ease ofliving that is better than a number of Indian equivalents, agrowing appreciation of the capital’s clean air, a wideningrespect for the governance and, remarkably, this change ispermeating right down to growing prosperity for the oneswho most need it – communities at the grassroots.

There is a necessity to evaluate and project the state’sdevelopments for the world to take note of. Hence the needto review the transformation; to recognise strengths andachievements; to give greater momentum to the state’samazing success stories by highlighting the positive foronward replication and urging the people to participate in itpro-actively.

This magazine, in chronicling positive change, will focus ondoing what most don’t. Reinforcing the positive. Enhancinghope.

With my best regards,

M. Siddiqi

CEO SPEAK

6

HOPEMr. Lalit Mansingh gets

candid about Orissa

10

OPINIONJay Panda, substantiates

Orissa’s prospects

16

ORISSA’SVISION 2030

14

Kalikesh Singh Deo shareshis vision of

DREAM ORISSA

18

ROAD MAP

ISSUE 1Executive editor: Mudar PatheryaEditorial team: Dr. Itishree Devi fromVedanta Aluminium Limited Editorial contact:communications@vedanta.co.in

54

Over the last few years, aresurgent Orissa has beenincreasingly in the news. Thereis growing evidence of Orissareporting improvements acrossvarious indicators, whether it isindustrial investments,educational campuses, infantmortality, software exports, theease of doing business andlastly – the summation of allthat has transpired – real-estatevaluations.

This transformation is rapidly attracting global attention andinvestors are knocking on Orissa’s doors for capitalopportunities, which will ultimately set the growthmomentum rolling in the state. This magazine has beencreated with the singular objective of documenting andtracing Orissa’s traction towards the positive.

There is a new buzz about Orissa – a willingness ofentrepreneurs to commission fresh businesses, an ease ofliving that is better than a number of Indian equivalents, agrowing appreciation of the capital’s clean air, a wideningrespect for the governance and, remarkably, this change ispermeating right down to growing prosperity for the oneswho most need it – communities at the grassroots.

There is a necessity to evaluate and project the state’sdevelopments for the world to take note of. Hence the needto review the transformation; to recognise strengths andachievements; to give greater momentum to the state’samazing success stories by highlighting the positive foronward replication and urging the people to participate in itpro-actively.

This magazine, in chronicling positive change, will focus ondoing what most don’t. Reinforcing the positive. Enhancinghope.

Please feel free to write to me directly atcommunications@vedanta.co.in for suggestions on how wecan improve. I hope to hear from you soon.

With my best regards,

M. Siddiqi, CEO, Vedanta Aluminium Limited

CEO speak

Mr. Pankaj Khannashares his optimism A natural wonder

Vedanta Aluminium Limited’sendeavours in Orissa

Unconventionalart in Orissa

coming a full circle

6

HOPEMr. Lalit Mansingh gets

candid about Orissa

10

OPINIONJay Panda, substantiates

Orissa’s prospects

16

ORISSA’SVISION 2030

14

Kalikesh Singh Deo shareshis vision of

DREAM ORISSA

18

ROAD MAP

22

MANAGINGEXPECTATIONS Dr Sudhakar Panda explains

the success of Orissa’sdevelopmental model

24

LARGEST

42

SANDMASTER

44

BORN AGAIN-BNR

Rediscovering the past

48

CHILIKA

52

MAKING ADIFFERENCE

54

BHUBANESHWARmeans business

56

ORISSAOPINIONS

30

INSPIRINGENTREPRENEURSHIP

34

VEDANTAUNIVERSITY

40

ODISSI

32

REVERSINGBRAIN DRAIN

Abhijit Sen, reviews Infosys’success story in Orissa

“

“

ISSUE 1Executive editor: Mudar PatheryaEditorial team: Dr. Itishree Devi fromVedanta Aluminium Limited Published by: Bibek ChattopadhyayEditorial contact:communications@vedanta.co.in

76

“TALKING, DISCUSSING AND ARRIVING AT ANAMICABLE AGREEMENT IS KEY TO USHERING IN ANEW WAVE OF DEVELOPMENT ACROSS ORISSA. THIS IS NO ROCKET SCIENCE.”

IT IS REFRESHING TO MEET MR LALIT MANSINGH, FORMER INDIAN AMBASSADOR TO THE USA,

WHO SPEAKS CANDIDLY ABOUT ORISSA, HIS BIRTHPLACE. MR MANSINGH (HE ALSO SERVED AS

THE HIGH COMMISSIONER TO THE UK) IS FORTHRIGHT ON A NUMBER OF CHALLENGES - AND

SOLUTIONS - CONFRONTING THE STATE. THE CENTRE PIECE OF HIS STRATEGY IS THE CREATION

OF AN OPEN FORUM TO PROMOTE AN HONEST DIALOGUE BETWEEN THE STATE’S THREE MOST

IMPORTANT STAKEHOLDERS – THE GOVERNMENT, INVESTORS AND LANDHOLDERS. INTERVIEW

EXCERPTS FOLLOW.

Your career has been long andillustrious. What keeps you busy afterretirement?

Good question. People do differentthings after retirement – they sit athome, listen to music, read newspapers,go for long walks and watch life go by. Ifind myself in that situation as well.However, after returning in 2004 froman assignment in Washington, I spentconsiderable time in Orissa pursuingopportunities that could perpetuatedevelopment with the maximumsocietal impact.

Relevantly, I became an INTACH(Indian National Trust for Art andCultural Heritage) convenor and lateralso took on other State-centricassignments. The result is that I am

associated with a number of NGOs andam building a broad consensus amongDelhi’s think-tank to formulateacceptable solutions for Orissa.

Why are you so passionate aboutthe state’s development?

Orissa is among the richest states interms of tangible and intangibleresources. It holds the country’s largestreserves of iron ore with a fair share ofcoal, which represent basic inputs insteel manufacture. Its art forms (Odissiand patta-chitra paintings, amongothers) are internationally renowned.However, neglect and limited resourcesundermined the preservation of thisglorious past and it was opportunewhen INTACH’s chairman requestedme to take up this cause. It was a matter

of pride to mobilise local andadministrative support.

Please elaborate on your initiativesto bring Orissa to the fore.

During my father’s time, one had towalk almost 60 miles to study, so wedonated land to build a school at theNandala village, my birthplace. Besides,

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HOPE

Orissa is among the richest

states in terms of both tangible

and intangible resources. It

holds the country’s largest

reserves of iron ore with a fair

share of coal, which represent

basic inputs in steel

manufacture.

98

we organised a Maya Sandhya dancefestival in Delhi in 2007 in the memoryof my poet father Mr. MayadharMansingh comprising Odissi, Kathakand Bharatnatyam, which was attendedby dignitaries like the former Ministerof Culture and Tourism Mrs. AmbikaSoni, Dr. Karan Singh, Dr. FarooqAbdullah and other connoisseurs. Thisevent was also held in Bhubaneshwar,where traditional costumes, saris andhand-woven shawls brightened thestage.

In addition to INTACH, you alsoworked with a number of NGOs tocatalyse Orissa’s development.

Absolutely, because statistics revealthat Orissa is among the poorest Indianstates and in some way I feltresponsible. This is what I observed: alarge number of NGOs were scatteredacross Orissa. My understanding wasthat if development was to acquire anyscale, these NGOs needed to beconsolidated around a commonplatform. I organised a meeting to shareNGO information and best practices,attended by more than 50 NGOs. Thiswas followed by more meetings tocreate a sustainable development cycleindependent of political intervention. Iwould say that we have succeeded tosome extent on this front.

What is the most visible changesweeping across Orissa today?

The most ‘visible’ change is themindset. Despite centuries of ineptitude

and insensitivity of the bureaucracy,there is growing grassroots optimism,which is spurring development. I findcommunities, neglected for years,assuming responsibility for creatingsustainable growth and forming self-help groups. This is resulting in incomegrowth, enhanced nutrition for theirchildren, better public facilities andother social infrastructure.

Will the coming decade see biggerdevelopment in Orissa than has beenseen in the last sixty years?

Yes. For one, the state is endowedwith rich wildlife, beaches and forests,which offer tremendous scope fortourism development along withagriculture and industry. In the last fewyears, Orissa’s GDP growth has almostmatched India’s economy. Roads andschools have come up, people are betterfed, consumerism is rising and anumber of knowledge-led industries arebeing commissioned, leveragingresident intellectual capital.

While there is an air of prosperity aboutBhubaneshwar, the state will do betterwhen our large rural populace isequipped with the necessary resourcesand infrastructure as well. When megaprojects are implemented and ourpeople are convinced that these are fortheir good, we will outpace every otherstate in the country.

What is the Vedanta Group’s rolein catalysing Orissa’s development?

I think Vedanta’s core message has

been misinterpreted and not reached itsintended audience. Talking, discussingand arriving at an amicable agreementis key to ushering in a new wave ofdevelopment across Orissa, which is norocket science.

At present, the dialogue is restricted toinvestors and the government and themessage has not been rightly ‘delivered’to the real beneficiaries. A tri-lateraldialogue between three interestedparties is a must for differences betweenstakeholders to be ironed out.

It is a good sign that Vedanta has takena holistic developmental viewcomprising industrial and educationalgrowth. I think the idea of aninternational university is great andbeing next to Puri, a traditional andcultural hub, it could be an addedattraction for people from all over theworld to visit the state.

What would be the triggers ofOrissa’s development?

One, a ramp-up in the state’seducation system as we are notproducing quality graduates. When Iwas a student it was an established factthat unless one went out of Orissa,there was no chance of career growth.So this improvement will not only helpretain local talent but also acceleratereverse migration.

Two, health standards need to be raisedas Orissa has one of India’s worstmaternal and infant mortality rates. Inrural areas, a lack of basic medical care

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results in primary healthcare beingdelivered largely by untrained,unlicensed and unregulated ruralmedical practitioners. It is possible touse technology to train and monitor theactivities of these rural medicalpractitioners and connect them tourban doctors through voice or video tostrengthen the state’s healthcareservices.

Three, clean water supply needs to beadequate. In pockets, where one of theNGOs I have been associated with,provided 24-hour clean water supply,disease incidence declined 80%. Theneed for education in hygienic practices

as well as round-the-clock water supplyin toilets will go a long way inimproving health and lifestylestandards.

Four, irrigation facilities have to beupgraded as the state witnessesabundant rainfall and is blessed bymany rivers. Besides, more than 60% ofOrissa goes without irrigation sincedams and bunds are monsoon-dependant. Orissa can become India’sbread basket if irrigation isstrengthened.

Five, governance improvement iswarranted as certain Orissa districts areplagued by Naxalites and rebel factions.

“The Persians talked of

Orissa’s prosperity and high

standard of living…”

Can you dwell on the historyof Orissa?

The Persians talked of Orissa’sprosperity and high standard ofliving from the 16th centuryonwards. Orissa’s peak was in the13th century when the famousKonarak Temple was built, thelast flicker of a great civilization.Since then it started to decline butthis was not visible until the 16thcentury when it was attacked bythe Afghans ruling Bengal andother northern and southernempires. Then came the Mughals,Marathas and the British, the lastrule marked by floods, droughts,epidemics and famines every fewyears. The British divided the stateinto several provinces; there wasnothing left of Orissa as a state.The movement for anindependent Orissa started in theearly 20th century and the statebecame a reality only in 1937.

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V I E W S

It is a good sign that Vedanta

has taken a holistic

developmental view

comprising industrial and

educational growth.

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O P I N I O N

JAY PANDA, MEMBER OF PARLIAMENT FROM

KENDRAPARA (ORISSA), EXPLAINS WHY HE IS

OPTIMISTIC ABOUT ORISSA’S PROSPECTS

Why are you positive about Orissatoday?

A small correction. I have always beenpositive about Orissa for a number ofreasons – captive availability of rich mineralresources, a legacy of cultural diversity, along coastline and rich bio-diversityreflected in the largest lake and forest inIndia. A close appraisal of Orissa from anyangle cannot but reaffirm this optimism.

A number of observers question why thestate could not achieve much for more than

50 years since national independence.

This answer needs a holisticunderstanding. Orissa, better known asKalinga and subsequently Utkala, was agreat part of India more than 2000 yearsago. However, the state was blighted forcenturies including 55 years of its historypost-India’s Independence, under-performing most national averages.

There was perhaps a reason for this.Although Orissa is rich in mineralresources, the central government’s freightequalisation policy encouraged downstream

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1312

sectors to be set up just abouteverywhere across the country exceptironically where they would have beenthe most suited – at the pithead. In aneconomically illogical provision, thegovernment compensated freight fromthe pithead to steel manufacturinglocations. Consequently, while certainregions started manufacturing steel,others – regions with adequateresources – were overlooked fordecades.

Orissa – one of the world’s richestmineral hubs – ended up exporting itsore to other states, boostingemployment and economicopportunities at these locations at thecost of its own well-being.

How did the scenario change?

A number of developments over thelast decade converged into an inflectionpoint in Orissa’s history.

One, the freight equalisation policy wasscrapped in the early Nineties,increasing raw material transportationcost from pitheads to manufacturinglocations.

Two, a commodity and metals boomtranspired across the world some yearslater, prompting large investments inupstream and downstream sectors.

Three, China emerged as theundisputed global commodity centre ofgravity and Orissa was recognised asthe closest sustainable supplier ofmetals or mineral resources.

Four, the government introducedregulatory changes in the power sector,rebalancing investments between theelectricity generation and transmissionsegments; the government made itpossible for generators to trade poweracross regions, enabling resource-rich

Orissa to become a supplier to the restof the country.

Fifth, Naveen Patnaik’s election as chiefminister in 2000 and re-election for twosuccessive terms laid the foundation ofa stable and pragmatic politicalenvironment.

Why is the fifth point important?

Naveen Patnaik was elected intooffice in 2000, then again in 2004 andyet again in 2009. A party being votedto office for the third successive timereflects political stability and positivechange in the fundamental grassroots

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reality across the state, paving the wayfor resurgence.

So what has changed in Orissa inthe last few years?

Governance. In the last fewdecades, public representatives inOrissa often acted with impunity; overthe last nine years, the big change hasbeen a culture of accountability. It is nolonger what the elected representativeshave done but also how they have doneso, that has made all the difference.

In what way?

Like most other Indian states,Orissa was afflicted by corruption.Public project benefits did not reachbeneficiaries, public funds often beingapportioned by private interests. Today,this scenario has drastically changedand those found guilty are not beingspared irrespective of their position,connection or clout. The result is bestshowcased in the Rs 2 per kg of riceprogramme conducted in the state. Thefood security programme came aboutwith the state government spending Rs 850 crore annually to make ithappen. I am pleased to state that therewas no leakage and mismanagement inits implementation, monitoredpersonally by the Chief Minister.

There is another aspect to thisgovernance. A strict quarterlymonitoring system makes decisionmakers accountable and responsible.While it would have been easy to over-project the number of MoUs signed, Ican state that some MoUs have actuallybeen cancelled because there was noprogress in the projects – six of theoriginal 42 MoUs signed for steel, forinstance.

Apart from governance, what have

been the other challenges of the NaveenPatnaik government?

Some of the challenges that theNaveen Patnaik government inheritedinclude: a virtually bankrupt state witha financially overdrawn positionvirtually every day of the year. A sizableinvestment going into the state’sirrigation and water managementschemes with relatively minimalbenefits reaching the public. A generalmorale that with so many leaks, thestate was not going anywhere.

Give us a few examples of thestate’s ‘resurgence’.

In the last few years, Bhubaneswarhas emerged as one of India’s fastestgrowing technical education centres,prompting comparisons with Pune. Theeducation centres are likely to enhancevalue to the local population andadditionally draw students from otherstates, many of whom are expected toseek employment within and stay back.Besides, the growth of these technicaleducation institutes will encourage anumber of IT companies to

commission facilities in Bhubaneswar.

A major aspect of the state’s sustainablesuccess is its inclusive growth, implyingthat the related benefits are reaching themasses, otherwise deprived forgenerations. Orissa reported the fastestimprovement in the reduction of childmalnourishment over the last decade at10%, as against the average nationalimprovement of 6%. Moreover, interms of infant mortality – generally aprimary health indicator – Orissaimproved its position from the bottomof the list of Indian states to fourthfrom the bottom and on the basis ofprogrammes already implemented,expects to graduate to the top quartileover the next five to seven years.

We demonstrated something far morechallenging – that we can transform ourdestinies collectively. This hashappened most visibly in the PaaniPanchayat Programme, which is apeople’s co-operative in themanagement of precious waterresources across Orissa.

So what is your overall take on thefuture of Orissa?

We are positioning Orissa as aglobal showcase in the area ofsustainable development where on theone hand, the state will emerge as aglobal hub in metals, education,information technology and tourism,and on the other, in the area ofgrassroots prosperity. We have alreadyembarked on this inclusive journey!

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O P I N I O N

The big change that we have now seen inOrissa is that those found guilty are notbeing spared irrespective of theirposition, connection or clout.

Orissa reported the fastestimprovement in reduction of childmalnourishment over the last decade at10%, as against the average nationalimprovement of 6%.

We are positioning Orissa as a

global showcase in the area of

sustainable development.

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O P I N I O N

The Naveen Patnaikgovernment’s vision ofOrissa by 2020 can bebroadly categorised intothree overarching objectives.

1. Emerging amongthe top five Indianstates

2. Achieving aconsistent 9-10%annual growth

3. Reducing thepoverty level from47% to below 10%

The vision paper ‘envisions a societywhich, by the year 2020, has a welldiversified and prosperous economythat attains rapid and sustainabledevelopment, in which all citizens haveample opportunities to realise theirpotential and enjoy a high quality oflife.’

Is this possible?

“Orissa can indeed achieve this visionby capitalising on its cultural andeconomic strengths,” states a review ofthis vision document by KalikeshNarayan Singh Deo, Member ofParliament from Bolangir, Orissa. “Ofcourse, the ability to ensure investmentin the acquisition and development ofits mineral resource base, along withdrawing in and channelising allavailable human resource, will be key torealising this vision. The stakeholdersneed to inculcate a broad vision andincreased efficiency in governance,while planning and establishing systems

to analyse progress. If Orissasuccessfully mobilises all its availablenatural and economic resources andmotivates people and organisationstowards the vision, I am confidentOrissa will emerge as a model for therest of India.”

The numbers indicate that perhaps thebeginning towards this ambitious butchallenging journey has already beenmade. A paper was formulated takinginto consideration the 7.3% growth rateduring 2002-06, agriculture growth rateof 3% in 2002-03 to 2005-06, besidesprojections by McKinsey, MorganStanley and the Centre for MonitoringIndian Economy (CMIE). For instance,in 2005, McKinsey predicted a 7%growth rate over 10-12 years, whileMorgan Stanley Global EconomicForum's 2005 report indicated thatOrissa would emerge as India’s metalbusiness hub, attracting investments upto USD30-40 billion in five years. Totop it, CMIE ranked Orissa number onein investment project value underimplementation.

“OUR OBJECTIVE

IS TO EMERGE

AMONG THE TOP

FIVE INDIAN

STATES BY 2020”

BY KALIKESH SINGH DEO, MEMBER OF PARLIAMENT

Kalikesh Narayan Singh Deocomes from the erstwhile royalfamily of Bolangir. He is aMember of Parliament fromBolangir, Orissa and was theyoungest member of the OrissaState Assembly. Was a member ofthe Public Accounts Committeeand Energy Committee. Elected tothe House in 2004 at the age of29, he won from the SaintalaAssembly Constituency.Represented India in shootingand basketball.

“I dream of an Orissawhere the main purpose of the government is not merely to govern, butwhere law, policy and strategy liberate and give purpose to individualsand institutions in their functioning… where every individual iseducated, self-sufficient and empowered… where empowerment does notend at the affluent individual but extends to the underprivileged. Therealisation of this vision does not end at attaining the specific targetswithin, rather these targets are merely the horizon of what we now see,and once attained, will reveal another more beautiful horizon beyond.Though the state may be tested by floods, cyclones and other naturalcalamities... our vision is to see the state pass through every trial,unhindered in its purpose, self-reliant, self-sustaining and outwardreaching, a perfect expression of the principles enshrined in theConstitution of India.”

Kalikesh Singh Deo

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The Government of Orissa, underthe Technology Mission, initiated a

proposal towards the formulation of adevelopment plan for its capital region.This was followed by an interactiveprocess between the Department ofArchitecture and Regional Planning,IIT Kharagpur and the Government ofOrissa.

Eventually, a memorandum ofunderstanding (MoU) was signedwhere the Housing and UrbanDevelopment Department(Government of Orissa), assigned thetask of preparing a Perspective PlanVision 2030 and ComprehensiveDevelopment Plan for the

Bhubaneswar-Cuttack Urban Complexto the Department of Architecture andRegional Planning IIT Kharagpur forthe holistic and integrated developmentof the region. The concept paper iscurrently being initiated to invite inputsfrom stakeholders as a first step towardsparticipatory planning.

Planning regionThe Bhubaneswar-Cuttack UrbanComplex comprises two major urbancentres namely Cuttack, the erstwhilestate capital, and Bhubaneswar, thepresent state capital. The former is atraditional Indian town organicallydeveloped over time, while the latterwas conceived as a modern metropolis

on neighbourhood planning concept bythe internationally acclaimed urbanplanner, Otto. H. Koenigsbargein. Thetotal planned area stretches across 720sq. km covering 1.58 million population(Census, 2001).

Cuttack, with 195 sq. km and 0.64million people, is the nerve centre oftrade and commerce for the state.Paradeep port, 70 km from Cuttack,provides an excellent opportunity as anindustrial destination based on porttranshipment functions. During the lastdecade, Cuttack’s growth has sloweddue to spatial restrictions on its futuregrowth directions as well as itsunplanned city structure.

The Bhubaneswar region on the otherhand, conceived after independence,experienced tremendous growth.Administrative and institutionalactivities contributed to the increase inthe volume of trade and commerceactivity. Bhubaneswar, well connectedwith Cuttack (30 km) through rail androad linkages (NH-5 and Howrah-Chennai Rail route), possessestremendous potential to act as acomplementary growth centre toKolkata in the eastern region for trade

and commerce.

The present and future of theBhubaneswar-Cuttack Urban Complexis intertwined with the state’s overalldevelopment. A brief look into Orissa’sdemographic and socio-economicprofile indicates it as one of the leasturbanised among India’s major states(14.7% of the state population resides inurban areas). Besides, 70% of thepopulation is engaged in agrarianactivities. However, the state has the

third lowest population growth rateamong all states. The literacy rate ismarginally lower than the nationalmark.

Development of Bhubaneswar-CuttackUrban Complex, if efficiently andequitably managed, will triggercollateral development of its adjoininghinterland, which in turn would helpraise the level of overall welfare in thispart of the region.

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ORISSA’SVISION2030

The Vision for the planning area has been perceived around the following core ideas:1. Cuttack and Bhubaneswar as twin cities.

2. Transformation of the Bhubaneswar-Cuttack Urban Complex to a world-class urban centre to serve as an important gatewayfor national and international investments.

3. Promotion of cultural, built and natural heritage in a sustainable manner.

The road map to achieve this Vision will include the following:Generate higher service facilities for attracting various developmental activities, investors and industrial houses

Generate facilities and activities to support small investors, informal sectors and slum inhabitants and rural migrants

Improve the transport network system for faster communication and high standard linkages between the growth centres andtheir rural hinterlands

Provide decent housing for all sections of people living in the region

Transform the whole region to a pollution free zone with conservation of bio-diversity and environment

Frame land policies and development proposals for eradicating bottlenecks for future development

Formulate disaster management policies to tackle natural hazards

Provide high levels of physical and social infrastructure ensuring safe drinking water, improved sanitation, well distributededucation, health, recreation and cultural facilities

Convert the region to a learning and cultural centre for the state as well as nation

Transform the region to a hub of tourism through preserving and promoting the rich cultural heritage

Design an effective development control mechanism with a high value of public serviceability

Re-energise the institutional and administrative system to manage future urban development in the region

Source: Rewritten and extracted from Vision 2030: A Concept Paper; courtesy: IIT Kharagpur

1918

resulted in a bevy of the country’s topcorporate houses including the Tatas,the Aditya Birla group, Ruias,aluminium major Vedanta, IT giants(Infosys and Satyam) as well asArcelor-Mittal making a beeline toinvest in Orissa, transforming thisneglected state into a potentialindustrial hub.

For instance, the Tata Group plans toinvest Rs. 30,000 crores in a new steelplant, port, multi-product SEZ, powerplant, hotels as well as an expansion ofits existing units. The Vedanta Grouphas planned to invest Rs. 47,000 croresin various projects like aluminaproduction as well as world-classeducation infrastructure. Besides, theIT/ITeS industry expects to create

around 20,000 jobs by 2010.

� Steel investments: About 49 MoUshave been signed for setting up aboutRs 200,000 crore of new steel plants,entailing an estimated annualproduction of about 74.66 milliontonnes – this is nearly 50% more thanthe entire production of Indiacombined. A number of thesecompanies have either startedproduction or are at the constructionstage.

� Aluminium investments: MoUs havebeen signed for setting up two aluminarefinery projects entailing aninvestment of Rs.25,000 crore. Variousunits from within Vedanta’s aluminaplant in Jharsuguda have beencompleted, while its alumina refinery at

Orissa’s new Industrial Policywas formulated to attract

large industrial investments tocatalyse industrial resurgence.This new policy promoted theimplementation of a singlewindow to facilitate andstreamline the establishment ofnew businesses in the state withassistance from the World Bank.Combining training and technicalassistance, the World BankInstitute helped build the capacityof key institutions in Orissa tofacilitate investments. The results are visible: it now takesonly 52 days to start a business inOrissa compared with the 79 daysit took to do so before the reform

process in 2004; the state attractedsome of the largest and mostrespectable names resulting inMemorandums of Understanding(MoU) of around Rs 600,000 crand the prospect of generatingsignificant employment and spin-off opportunities; per capitainvestment in Orissa was Rs. 78,569 in December 2007compared to the national averageof Rs. 22,669.

Major investmentsThe change of policy and othernecessary infrastructure development

Lanjigarh is progressing towardscommissioning. Work has also startedon the Aditya Birla Group’s aluminiumsmelter in Jharsuguda.

� IT/ITeS investments: Orissa is anemerging IT/ITeS hub comprisingbrand-enhancing names like Infosys,Satyam, Wipro, TCS, Mindtree, ICICIBank and Genpact, among others. Morethan 300 such small and mediumenterprises are present in the state. Thishas inspired the state to set an exporttarget of USD 1,000 mn by 2011-12 andrelated employment for around 200,000software professionals by 2015.

� Petrochemical investments: IOC isinvesting USD 6 bn for a 15 mtpa megapetrochemical complex. DeepakFertilisers is investing in two chemical

projects in Paradeep. The state iscreating a mega petroleum, chemicalsand petrochemicals investment regionin Paradeep.

� Energy and power investments:Around 13 thermal power projects areunder consideration with a capacity of13,500 MW entailing an USD 11 bninvestment. The private players settingup power projects include Tata Power,Reliance Energy, Sterlite Energy,Mahanadi Aban, Monnet Ispat, EssarPower, Lanco Group, NavBharatPower, CESC and GMR Energy, amongothers. The state is also consideringvarious mini-hydel projects with acombined capacity of 100 MW. SterliteIndustries is planning to invest Rs 20,000 crore towards 4,500 MW

capacity in Jharsuguda and Lanjigarh.

� Ship-building and ship repairinvestments: Bharati Shipyard and theApeejay Surrendra Group haveproposed to set up mega shipyards atthe Dhamra port.

� Infrastructure investments: Amassive investment is being undertakenfor the development of industrial,economic and social infrastructure toreinforce the steel and miningcorridors. A major expansion of theParadeep port is underway. TheGovernment of India has approved 12SEZs (including four IT SEZs). Aroundfour new ports worth USD 2 bn ininvestments are coming up at Dhamra,Gopalpur, Jatadhari Muhana andKirtania. A bio-pharma park in

Ori

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Capital: Bhubaneswar

Area: 1,55,707 square kilometres

Population 2001: 3,68,04,660

Per capita income 2005-06: Rs. 13,979

Urban population: 14.97%

Literacy rate: 63.08% (all-India 65%)

Districts: 30

Towns: 138

Villages: 51,350

Principal crops: Rice, pulses, oilseeds

Major industries: Steel, aluminium, power, cement,mineral-based and paper

FDI projects in Orissa

Sector Companies

Steel POSCO, Arcelor Mittal

Alumina/aluminium Dubai Aluminium, Alcan, Vedanta

Titanium products JSC Technochim Holding (Russia)

Lime Lhoist (Belgium)

Ports Noble Shipping (Hong Kong)

Industrial gas Air Liquide (France)

“Orissa shall emerge as acentre for metalsbusiness in India andattract investments up toUSD 30-40 billion overthe next five years.”

Morgan Stanley GlobalEconomy Forum – 2005

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Bhubaneswar through the PPP routewill widen the state’s pharmaceuticalindustry. The state is also planning tocommission an integrated textiles parkand auto complex at Choudwar alongwith extensive rural electrificationprogrammes. Besides, the AirportAuthority of India has earmarkedinvestments for Bhubaneswar airport’smodernisation.

Tourism investments: Orissa’stourist inflow has increased from 2.9million in 2000 to 5.3 million in 2006;the corresponding inflow throughtourist expenditure increased fromUSD 213 million to USD 600 million.This is likely to attract growinginvestments.

Support for industry: humanresource developmentOrissa is optimistic of meeting theneeds of the growing people andcompetence needs of industrialinvestors. The state is emerging as ahub for engineering, management andmedical education in eastern India. Itpossesses nine universities, 88engineering/MCA colleges and 18medical colleges. The result is thataround 20,000 B.Tech/MCA students,3,000 management professionals and50,000 general graduates pass outannually from Orissa. Over theforeseeable future, even this number isexpected to increase significantly;Vedanta is investing in a world-class

university with a projected annualintake of 100,000 students across 95disciplines; other national leveltechnical and health institutes are alsounder development.

Support for industry: harmoniousworker relationsOrissa comprises about 14.3 millionworkers in an atmosphere marked byindustrial harmony. This is reflected inthe fact that of the 45 strikes that tookplace in India between January 2007and April 2007, only one occurred inOrissa.

Support for industry:infrastructure Orissa has 238,000 km of roads (3,508 km national highways, 5,102 kmstate highways and 30 km stateexpressways). Over USD 5 bninvestment is expected in the state’sroad sector and around USD 1.5 bninvestment in its railways in five years.The state has four ports along its 480-km long coastline, enhancing capacityin some and commissioning new ones.

The result is that over the last five years,Orissa has seen a marked increase inincome and decline in poverty. Thestate’s economic growth has risen from4% in the 1990s to about 8.5% in the lastfive years (all-India average 7.8%). Theper capita net state domestic productincreased from Rs 10,567 to Rs 20,240between 1999-2000 and 2006-07.

A number on Orissa

Rs. 78,569Per capita investment in Orissa,December 2007

54.97%Percentage of India’s bauxitereserves located in Orissa

71%Percentage of India’s graphite orereserves located in Orissa

Rs. 22,669 Per capita investment in India,December 2007

95.26%Percentage of India’s chromitereserves located in Orissa

31%Percentage of India’s China clayreserves located in Orissa

32.54%Percentage of India’s iron orereserves located in Orissa

92.46%Percentage of India’s nickel orereserves located in Orissa

18%Percentage of India’s dolomiteore reserves located in Orissa

24.48%Percentage of India’s coalreserves located in Orissa

67%Percentage of India’s manganeseore reserves located in Orissa

65%Percentage of India’s pyrophilitereserves located in Orissa

Orissa’s Information Technology Policy Provide easy access to information Encourage transparency in governance practice Promote door step delivery of host of services Increase employment opportunities Offer a hassle-free and business friendly environment to the ICT entrepreneurs Narrow down the digital divide Attract investments into the state Achieve high export turnover and economic growth

Orissa’s State Reservoir Fishery Policy Generate gainful rural employment with special

reference to the fishing communities Introduce systematic management strategies both

for conservation and sustained fish production Attract increasing investments from private sector Stimulate entrepreneurship for fishery sector with

special reference to reservoir fishery Substitute traditional methods by the introduction

of advanced technology in reservoir fishery Develop skill among fishermen/fisherwomen in

reservoir operation and organisational strengthening Generate substantial revenue for the state

Source: http://business.gov.in /investment_incentives/investment_policies_ori.php

Orissa’s Industrial Policy Resolution, 2007 Transform Orissa into a vibrant industrialised state Enhance the share of industries in State Gross Domestic Product Promote orderly and environmentally sustainable industrial growth Promote Orissa as a major manufacturing hubMaximise employment generation opportunities Maximise linkages between micro, small, medium and large industries and

make efforts for the development of ancillary and downstream industries Promote employment intensive sectors such as handicrafts, handlooms, Khadi

and village industries, coir and salt Promote sectors such as information technology, biotechnology, agro, marine

and food processing, tourism, textiles and automotive industriesPromote revival and rehabilitation of potentially viable sick industries,

especially in the micro, small and medium enterprises (MSME) sectorMaximise industry and institution linkages in areas such as manpower

planning and research and development, among othersMake concerted efforts for balanced regional development

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M A N A G I N G E X P E C T A T I O N S

How would you describe Orissa’sinvestment scenario?

I would describe the investmentclimate in Orissa in one word – robust.If one goes by the Economic Survey of2008-09, Orissa signed MoUs with alarge corresponding investmentpotential. But MoUs need to betranslated into solid investments andwe are doing just that.

How would investments affectliving standards?

A: One should not expect a dramatictransformation in living standards onlybecause the state’s investment climate isrobust. The road ahead is long: first,investing companies will need to investin housing, healthcare and education inthe areas of their influence; next, theywill need to invest in their businesses,generate a surplus and reinvest in their

businesses. If businesses expand, theywill need to recruit and remunerate,and it is only across the medium andlong-term that one expects to see asignificant improvement in livingstandards. The state machinery isresponsible for managing expectations,ensuring that no short-term hypeovertakes long-term optimism as anyperceived mismatch can transformbelievers into cynics.

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There is a greater focus now on howcompanies acquire lands fromneighbouring communities.

Along with the appetite forindustrial land increasing significantlydue to business scale, the urgency withwhich land is needed (now!) has alsogrown. Displacement in itself is nothingnew; it is the scale of displacement withassociated social implications that hasturned into a sensitive issue. Orissa hasreconciled these divergent realities –increasing land demand for industryvis-à-vis rising expectations of landlosers – with sensitivity andresponsibility.

There is another perception. Ifcompanies are paying land losers a fairprice – often in excess of prevailingrates – why should they be expected tostay continuously engaged?

Corporate engagement extendsbeyond a superficial land transactionfor a number of reasons.

One, poverty in most parts of the stateis so stark that even after the companieshave paid a fair price for the land, theprevailing difference – between landlosers and a new emerging community– could trigger adverse societal andcorporate implications.

Two, it has been observed that thebenefits derived from land proceedsoften do not translate into a collectiverise in living standards, becauserecipients are many and propensity tosave low. Companies can make asubstantial difference if they can trainand employ the local populace. Besides,they can create educational supports(subsidised schools and colleges) forpeople empowerment. This willtransform cynics and fence-sitters intopositive votaries for industrialregeneration. The operative word hereis ‘hope’.

What is the state’s advice on howinvesting companies go about it?

The term ‘corporate social

responsibility’ is much talked aboutthese days. While surplus generation isthe prime impetus behind anycorporate endeavour (in Orissa orelsewhere), there is a growingrecognition that for businesses to besustainable, companies will need toextend prosperity to their peripheralcommunities, respect locationalrealities rather than implant any foreignapproach and earn the widestconfidence in the shortest possible time.Besides, what is needed is proactivecommunity support as againstsomething reactive (like respondingonly when things go wrong). So webelieve that good community relationsmean good business.

Is this transpiring in Orissa today?

There are some companies –Vedanta Group, Jindal Steel and Poweras well as Tata Steel – who are engagedin responsible community support.There is a fresh inclusive approach asopposed to the legacy approach (‘throwmoney, buy land, build factory’). Iwould say the big leap from the hithertotransactional to the emotional approachhas happened in Orissa, barring a fewexceptions. However, if there is amistake, we can always learn and moveahead.

What is the government’s role inthis regard?

The government has created anoverarching guideline (R&R Policy2006), which spells out modalities forland acquisition with adequatesafeguards for interested parties. The

policy also extends beyond thetransactional aspect to the emotional;the government has recommendedinstitutional interventions at the stateand district level to ensure that mutualinterests are protected.

For instance, the government’srecommended computation ofcompensation for land losers takes intoaccount all visible (farm, trees, pondsand fish) income multiplied by thenumber of annual crop or incomecycles plus non-land incomesmultiplied by a factor. It is alsoaccounted if the compensation amountdeposited in a bank can generate areturn that is attractively higher thanthe prevailing income of the land loser.I am happy that we now have a modelto fall back upon.

What has been the urban fallout ofa resurgent Orissa?

Rising real estate values! Urbanland in Orissa is costlier than gold. Forexample, I bought a 4,500 sq. ft plot inBhubaneswar in the mid-Eighties for Rs 6000; its value has appreciated nearlya thousand times since! Real estatevalues in Bhubaneswar are rising fasterthan most places in India today, and thecity is extending its periphery fasterthan it has ever done in living memory.This is happening owing to acumulative land demand generated byIT companies, educational institutesand visible improvement in incomes.Should this sustain over the next five toseven years, Bhubaneswar will soonemerge as a Tier-1 city in India.

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I bought a 4,500 sq. ft plot in Bhubaneswar in the mid-Eighties for

Rs 6,000; its value has appreciated nearly a thousand times since!

Real estate values in Bhubaneswar are rising faster than most places

in India today.

The government has created an overarching guideline (R&R Policy

2006), which spells out modalities for land acquisition with adequate

safeguards for interested parties.RESPONSIBLECOMPENSATION

DR SUDHAKAR PANDA,

CHAIRMAN, STATE FINANCE

COMMISSION, EXPLAINS THE

SUCCESS OF ORISSA’S

DEVELOPMENTAL MODEL.

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Vedanta Aluminium Limited will commission theworld’s largest aluminium smelter in Jharsuguda by2012. With the objective of spreading the largest goodto the widest number in the shortest time.

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The Vedanta Group is fusing theresident advantages of its Orissalocation with a number of strategicadvantages.

Unprecedented scale: VedantaAluminium is commissioning theworld’s largest single locationsmelter at Jharsuguda in Orissa (1.8MTPA). This scale is strategicallyaligned with the availability of theworld’s fourth largest reserves ofquality bauxite in Orissa plusabundant coal availability.

The Vedanta vision

The Orissa factorThe one region that is accelerating thisshift towards Asia is Orissa.

For some sound reasons.

One, Orissa is one of the world’s fewregions to enjoy the availability of largereserves of bauxite, coal, ports andintellectual capital, significant in abusiness where one tonne ofaluminium consumes six tonnes ofbauxite, two-and-a-half tonnes ofalumina and 10 tonnes of coal. Besides,manpower accounts for around 4% ofthe total smelting operating costs inIndia compared with 9% across theworld; over 50% of India’s workforce isbelow 25 years of age.

Two, there is an abundance of quality

reserves; India possesses 10% of theworld’s bauxite reserves; Orissa alonepossesses more than half of India’smineral bounty with low-reactive silicacontent, adaptability to lowtemperature and low pressuredigestion, enabling low-costproduction of high-quality alumina.

Consequently, Orissa possesses thecapability to not just emerge as anotherlarge global aluminium manufacturinglocation but to emerge as a world-leader with probably the world’s lowestproduction cost. When this residentcompetitive edge is fused with dynamicrisk-taking capacity (as in the VedantaGroup), the result is capacity growththat is faster than any other comparableglobal aluminium company.

The message is clear: Orissa is likely toemerge as the new deciding force in theglobal aluminium industry.

Vedanta Aluminium Limited Vedanta Aluminium Ltd (VAL), a subsidiary of VedantaResources Plc. incorporated in 2001, is a leading producer ofmetallurgical grade alumina and other aluminium productswhich cater to a wide spectrum of industries.

VAL’s superior product quality backed by state-of-the-arttechnology helped it carve out a niche in the aluminiumindustry. In line with VAL’s strategy to promote Lanjigarh,Orissa, as a self sustained manufacturing unit in terms ofcost advantage and resource availability, it operates agreenfield 1.4-MTPA alumina refinery plant and anassociated 90-MW captive power plant there.

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Foreseeing enormous potential andopportunity in the state, Vedanta

Aluminium Limited set its sights onJharsuguda in western Orissa on theState Highway 10, 335 km fromBhubaneswar and 310 km from Raipur.

A number of projects wereconceptualised and initiated:

A 0.5 MTPA aluminium smelter

A 9 x135 MW captive power plant

Rail infrastructure for coal,aluminium and finished product

A modern township

The first phase of the smelter (0.25MTPA) is on the verge of completionwhile work on the second phase issteadily progressing. A future 1.25MTPA capacity expansion is expectedto scale up the total smelter capacity to1.75 MTPA, the largest in the world.

VAL’s continuous pursuit of excellenceensures the maintenance of high qualitystandards across all operations and thegreenfield 0.5 mtpa aluminium

smelting plant at Jharsuguda, Orissa isno exception. VAL’s mission is toestablish the smelter as an industrybenchmark for technology, operationsand process management. The smeltersources power from the 1215-MWcaptive power plant, which facilitatessmooth operations. Its high qualitystandards and advanced technicalspecifications of British StandardInstitute (BSI) earned it the ISO 9001and ISO 14001 certifications.

The plant offers a dynamic productportfolio of ingots, billets, wire rods, slabsand functions under the brand name“Vedantal", which is registered with theLondon Metal Exchange (LME).

Captive power plant, Jharsuguda,OrissaTo ensure reasonably priced anduninterrupted power supply at thealuminium smelter at Jharsuguda,Vedanta Aluminium established the135x9 MW, coal-based thermal captivepower plant (CPP) – India’s largest

captive power plant – 5 km from theJharsuguda town. It is proximate to oneof India’s largest coal deposits at IBValley and the Hirakud Reservoir,Asia’s largest non-brackish reservoir.

The plant uses state-of-the-art digitalcontrol system, high concentrationslurry disposal (HCSD) of fly andbottom ash, counter-flow forced draftcooling towers and multi-flue stacks.

Currently, seven out of nine units of theplant are operational while theremaining two units are scheduled to becompleted shortly, further augmentingpower generation and enhancingfunctional superiority of the aluminiumsmelter.

Independent power plantPower is one the most critical inputs inalmost every aspect of life. Vedanta,determined to play an important role inIndia’s advancement towards becomingone of the world’s more developednations, decided to develop an

independent power plant that wouldsupport the country’s infrastructuraldevelopment.

Sterlite Energy Ltd initiated theestablishment of 4x600 MW coal-basedindependent power plant (IPP) inJharsuguda district, Orissa, whichenvisages a Rs. 8,200-crores capitaloutlay. While the first 600-MW unit isscheduled to commence operations byFY 2009-10 third quarter, the plant isexpected to be fully commissioned bymid-2010.

The power plant entails a number ofpioneering achievements in the Indianpower sector

Its four 600-MW units make it thelargest commissioned unit in India tilldate

The Hybrid ESP with fabric filter isbeing deployed for the first time in anIndian power plant

The plant also has a dual LP-flowsteam turbine and four 150-m high

natural draft cooling towers.

Other important features of the plantinclude two 275-m high multi-fluestacks and a high concentration slurrydisposal (HCSD) system for dry ashand highly concentrated slurry.

Raw materials for the plant are sourcedfrom the Hirakud Reservoir (water)and the IB Valley coalfield (coal). Thegenerated power would be supplied toconsumers through the Power GridCorporation of India Ltd (PGCIL) andOrissa Power TransmissionCorporation Ltd (OPTCL).

As a prime advocate of sustainabledevelopment, Sterlite Energy Ltd puts apremium on environmentally friendlyconstruction technology. The plant willemploy HCSD system for ash disposal,which would result in very low waterconsumption compared to wet slurrysystem. The Jharsuguda IPP wouldtherefore be a zero effluent dischargeplant with stack emission </=50mg/Nm3.

Why is aluminium themost commonly usedmetal after steel?

It is lightweight

It possesses excellentcorrosion-resistant properties

It can be alloyed to enhancestrength

It is strong at lowtemperatures

It is easy to work with

It is a good conductor ofheat

It has high reflectivity

It is a good electricalconductor

It possesses easy surfacetreatment

It is non-magnetic

It is non-toxic

JHARSUGUDA, ORISSAWORLD’S LARGEST ALUMINIUM SMELTER

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The most exciting feature ofVedanta Aluminium is not what it

represents in itself but what couldimply for the future of the state. TheCompany is expected to transform theindustrial landscape of Orissa in anumber of ways.

For one, the scale of primaryaluminium could potentially inspire anumber of downstream fabricationcompanies to commission largecapacities proximate to the availabilityof raw material. Additionally, morethan 1,500 industries are expected to becommissioned over five years.

Besides, the Company has the potentialto offer 15,000 jobs once the alumina,aluminium and power plants achievefull-scale capacity, leading to an inflowof intellectual capital on the one handand profitable employment forthousands of the state’s youngsters onthe other.

What are the prospects of theglobal and Indian aluminium industry?

The correction in aluminium priceson the LME from the second half of2008 was good for the industry becauseit made the metal more cost-effectivefor end-users. The correction willencourage applications in the growinguse of aluminium and widen themarket. So, while from a short-termperspective, industry players may bedisappointed by the sharp correction,from a long-term view, this is the bestthing that could have happened to theindustry. Our estimate is that globalaluminium demand will report a CAGRof 5.7% between 2007 and 2020. Indiawill surpass the global average; weexpect demand from India to grow at acompounded 8.2% to 3,300 kt withinthe same period even as global demandtouches 78,472 kt.

Why is India expected to report agrowth sharper vis-à-vis the globalaverage?

For a number of reasons. One,India is the world’s second mostpopulous country (1.15 billion) with thelowest global per capita aluminiumconsumption (around 1 kg comparedwith US per capita consumption ofaround 30 kg), which is bound tocorrect. Two, India is a story of under-penetration; India’s car penetration is amere seven per 1,000 people as opposedto around 430 cars per 1,000 in the US,which will also correct, going ahead.Three, India suffers a peak power deficitof 12-15%; the government hasproposed an ambitious 78,000 MWcapacity of enhancement in theEleventh Plan and ‘power for all’ by2012, which will boost aluminiumconsumption. Four, innovativeapplications will drive the non-conventional market for aluminium

products comprising extrusions andcasings, among others. In view of thesefactors, we see India at the point of aninflection point concerning aluminiumdemand.

How is Vedanta capitalising on thistransition?

Vedanta is in fact respondingconcurrently to two trends – the trendof moving manufacturing plants closerto resource pitheads as opposed to theconventional practice of being located

close to markets and the trend of settingup a large capacity in India, a countrythat is going to be one of the fastestgrowing aluminium markets in theworld from this point onwards.

What is the strategy going forward?

Vedanta Aluminium is not the onlyone to be commissioning greenfieldaluminium capacity. However, what

makes the company different from itspeers is its vision which converges scale,integration and logistical advantageinto a powerful business model.

The integration will start from captivepower generation and bauxiteprocessing for the manufacture ofalumina, which will again be usedcaptively in aluminium manufacture.Through our extensive integration, weexpect to remain largely independent ofexternal cost swings.

The scale will be daunting. Our 0.5 MTPA alumina refinery atLanjigarh (Orissa) will be scaled to 5 MTPA by 2012, making it one of theworld’s largest alumina plants.

How will this translate into acompetitive cost structure?

During the 2008-09 meltdown,number of companies with capacities inexcess of 100,000 TPA started reportingcash losses when the per tonne LMEprice declined to USD 1200–1300 atonne. For greenfield plants, it would bereasonable to expect an increase in thebreakeven point on account ofinflation. However, Vedanta will reduceits breakeven to around USD 900 atonne. I can safely say that such a coststructure will keep us competitiveacross all foreseeable market cycles.

One last question. How will theglobal market be able to absorb such alarge capacity addition?

Good question. At Vedanta, wehave taken a decided call: one, globalmarket growth will account for theincreased capacity; two, faster marketgrowth in India will enable us to sellquicker than others; three, ourrelatively lower cost structure willenable us to capture a large marketshare, justifying the speed of ourinvestments.

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O P I N I O N

INSPIRINGENTREPRENEURSHIP

“What makes the company

different from its peers is its

vision which converges scale,

integration and logistical

advantage into a powerful

business model.”

Mr Pankaj Khanna, Executive Director,Vedanta Aluminium Limited, shares hisoptimism on the Indian aluminiumindustry and Vedanta’s positioningwithin it.

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O P I N I O N

When Infosys commissioned itsfirst software development

centre in eastern India inBhubaneshwar in 1997, brows arched.

Bhubaneshwar? A number of naysayerscrept out of the woodwork. TheCompany will not be able to attract andretain talent in a place likeBhubaneshwar. The city will haveconnectivity issues with other Infosyscentres across the country. The statewill not be able to generate an adequatethroughput of professionals to sustainInfosys’ interest.

It is more than a decade since Infosys

put down its roots in Orissa’s capital.And the verdict is out. Infosys is sohappy with its experience in the statethat it has embarked on an expansion inspace and seats. Clearly, Orissa’s largestIT company intends to take itsleadership ahead – for the benefit of thecompany, employees, state and country.

Defying expectationsInfosys’ decision to create a softwaredevelopment facility in Bhubaneswarwas based on some credible nitty-gritty.Consider them:

Low pollution

Low commuting time

Organised traffic flow

Infrastructure development fasterthan population growth

Positive governmental stance onindustry

One would assume that Infosys saw thevision clearly, set up shop, profited,scaled and went laughing all the way tothe bank. However, at the time thecompany stepped into Orissa, obstacleswere aplenty. “For one, the pipeline ofIT professionals appeared bleak withonly a handful of engineering colleges inBhubaneswar,” says Abhijit Sen, who

heads Infosys’ Bhubaneshwar facility.“Besides, senior experiencedprofessionals were not keen to settle inBhubaneswar. Consequently, wedeveloped amenities to attract talentand in due time, aroused interest amongsenior professionals. Our managerialbandwidth widened and the vision withwhich the Bhubaneswar centre wascommissioned was finally vindicated.”

Gradually, the picture changed. Within adecade, Infosys emerged as the largest ITemployer in Orissa with a campus size of50 acres (50% green), the largest facility inBhubaneswar. Employee strength grewfrom a modest 90 in 1997 to 700 in 2002and 3,000 in 2009. While 60% of thecompany’s professionals at the centre aredrawn from eastern India (30% fromOrissa), the rest are drawn from otherparts of India. “We go to campuses acrossall Indian regions, recruit centrally, takethose selected to our Mysore facility fortraining, post them across India and afterthe first few years our employees have theoption of returning to their hometown,”says Mr Sen.

The Bhubaneswar centre’s success hasspelt good news for not just Infosys, butthe city as well. Abhijit Sen serves as afine motif. He worked with VisaInternational in the Bay Area, SanFrancisco, USA. When scouting for anopportunity to return to India, heentertained two options - Pune orBhubaneswar. Bhubaneswar’s lowpollution levels, sound infrastructure,

low living cost, low commute time towork and the proximity to Kolkata,made the city an obvious choice. “It is adecision that I have not regretted,” hesays. “When I came to the city, theoffice was a seven-minute drive fromhome. A number of years have passedand despite the ten-fold increase intraffic, commute is still seven minutes,thanks to proactive road developmentcarried out by the Bhubaneswarmunicipal authority.”

Infosys’ success did something else forBhubaneswar. It created a neweconomic layer – the youngengineering graduate who could afforda car and an apartment. This inspiredmore engineering aspirants, in turntriggering a demand for engineeringcolleges, resulting in some 40engineering colleges beingcommissioned in Bhubaneswar in onlythe last seven years, more than thenumber created in the preceding 50years!

Infosys Bhubaneswar has a lot to showfor itself. The centre’s revenue grew everysingle year to Rs. 850 cr in 2008-09. Thecentre is preparing for the next league.Says Sen: “We are looking to expandfacility space in anticipation of growingour manpower from 3,000 to 4,000.”

Not bad for a centre that dared to fightthe odds with just 50 softwareprofessionals and someone asked why.

Support: the fuel for growth, says Abhijit Sen, Infosys

“Throughout Infosys’ presence in Bhubaneswar, the Orissa governmentsupported our company in every possible way. Whenever major roads neededto be widened, the government would immediately invest towards suchprojects, expanding roads before any traffic problems actually occurred.Problems related to infrastructure development or electricity connectivitywould merely require a call in the morning to have the problem solved by thevery same evening. Government sanctions were hassle-free and grantedwithout any unnecessary delays. Bhubaneswar set an example for the rest of thecountry with proactive government initiatives!”

Infosys (Bhubaneswar) and

community social responsibility

A responsible corporate citizen,Infosys looks to constantly deepen itscommitment to social and communitybetterment. Recognising the youth asdrivers of tomorrow’s India, weendeavour to enrich their lives. We areengaged in a number of programmesto encourage students to pursue acareer in information technology.

Rural reach program: We reach villagesto ascertain if they need any computeror support facility; we train teachers inIT so that they can teach students.

Pratibha Poshan: We sponsorunderprivileged students for highereducation and English trainingbecause most bright rural students findit difficult to seek employment owingto their poor English-speaking skills.We have employed one person to go todifferent schools and reach suchchildren. Our engineers volunteer andin 2009 we expect to reach around 200students.

Sparks: Through this program weinvite school children (eighth andninth standards) and students ofengineering colleges to our campus fora day, exposing them to our work, so asto inspire them to seek a career in IT.

Campus connect: This is an annualprogram wherein teachers ofregistered colleges are trained intechnology and soft skills(communication/ articulation/etiquette) and paid hourly to conductsuch training in different colleges.Four teachers are selected from everycollege. We have created a websitefrom where the students can downloadand complete simulated projects sothat they get a feel of how industryprojects are conducted. They cancomplete the projects and can uploadthem for us to check with the objectiveof making them industry-ready.

REVERSINGBRAIN DRAIN!

ABHIJIT SEN, HEAD, INFOSYS (BHUBANESHWAR), APPRAISES THE SUCCESS OF INFOSYS WITHIN

THE CONTEXT OF A RE-ENERGISED ORISSA

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100,000 STUDENTS.

10,000 TEACHERS.ONE UNIVERSITY.

“A great researchuniversity is not builtfrom the bricks andmortar of its campus,but of the studentsand scholars whoinhabit it, and thediscourse and ideasthey share.” Prof. Richard C. Levin, President, Yale University,USA at FICCI 2009, Higher Education Summit

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world – MIT or Stanford – are preciselythis. They provide students withadequate bandwidth in which to studyand apply their learning. VedantaUniversity’s research park will makethis possible as well.

Big challengeHowever, the big challenge will be: theability to draw the right teaching talentin the right numbers to achieveexcellence across varied disciplines. TheUniversity recognised that some of thebest teachers of the world seek anenvironment that can continue to

enrich them intellectually. If they areprovided with an environment whichcan rejuvenate intellectually, whilecontinuing to teach them, they will findthe environment far more satisfying.Besides, the University’s research parkwill engage the expertise of professors,enabling them to work with students inthe commercialisation of emergingideas. The business incubator will giverise to pioneering enterprises that couldspawn entirely new economies.

The big momentThe Vedanta University Bill was passed

by the Orissa legislature on 30th July2009. Around 4,000 acres have beenacquired and the designs of the firstfour academic blocks and the hospitalare ready. Authorities say, “We want toset up the hospital immediately so thatit can start catering to the medicalrequirements of the region. The firstphase will include colleges of sciences,management, engineering, mathematicsand the multi-specialty hospital afterthe completion of which the Universitywill be ready to take in its first batch ofstudents. The entire University projectwill be phased. We target 2024 for fullcompletion.”

What happens when you extendthe boundaries of a university

and instil a dynamic learning culture?

The result is a knowledge city whereglobal academic excellence converges tocreate an academic diaspora with fewglobal parallels.

Mr Anil Agarwal, the Vedanta GroupChairman, clearly perceived the dearthof affordable and holistic educationalinstitutions in India. He embarked onthe task of setting up the world-classVedanta University with a personalgrant of USD 1 billion from the AnilAgarwal Foundation, a not-for-profitorganisation. The University that he hasproposed will be spread across 6,000acres on the beautifully serene coastaltract of the Puri-Konark marine drive

in Orissa.

Mr. Agarwal hopes to create somethingthat will, over time, stand in line withsome of the best institutions in theworld. Besides, as a successful globalentrepreneur, he always felt that thiswas the best way of giving back tosociety, setting in motion an effectivecycle of socio-economic developmentin a country of 300 million illiterates.

When fully operational, VedantaGroup’s knowledge city in Puri, Orissa,will offer 95 academic disciplines toaround 100,000 students. This will besupported by cross-disciplinary centresof excellence, covering undergraduateand postgraduate programmes, alongwith high-end research. The Universitywill be fully residential for its 100,000students, 10,000 faculty members,support staff and their families. Theresult will be the gradual creation of aneducation hub of around half a millionpeople.

Vedanta University will offer 95academic disciplines to the brightestminds from India and the world. Thisrange will help achieve a number ofthings: the University will not betypecast as an engineering or a medicaluniversity; it will graduate to a holisticcentre of excellence.

Currently, India has IITs and IIMs ormedical colleges focused on specificdisciplines only. Vedanta Universitywill conduct programmes on a muchbroader range – humanities, sciences(social, behavioural, biological andenvironmental), education, publicadministration and policies, along withengineering, architecture, media andcommunications, law and evenperforming arts.

The proposed university will not just bedifferent in its academic range, but itsproposed de-compartmentalisation willmake it possible for students to pursue

any academic combination. The resultwill be an unconventional institutionwhere it will be possible for anengineering student to take up, forexample, performing arts or literatureas one of the other subjects. This cross-disciplinary exposure – enunciated as‘porosity’ by Prof. Yashpal in theYashpal Committee Report – willenrich learning and lead to well-rounded individuals.

An academic institution, to be trulyeffective, needs to reconcile educationwith experiment. Some of the mostrespected educational institutions in the

Mr. Agarwal hopes to create

something that will, over

time, stand in line with some

of the best institutions in

the world.

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A not-for-profit institution at par with majoruniversities of the world

Established with a USD 1 billion philanthropic grantfrom Mr. Anil Agarwal

Access to world-class education standards

Focus on cutting-edge research and the development oftomorrow’s leaders

The campus development will be phased to nurture avibrant university township of a projected population ofmore than 500,000.

The Vedanta University master plan is being developedby a specialised US-based firm and global leader in campusplanning called Ayers Saint Gross. ASG has several

decades of experience focused solely on higher educationfacilities, including some of the world's most respectedcampuses.

The development of the University and township willengage local and international architects in creating world-class infrastructure.

The township will give rise to schools, recreationalfacilities, residential areas, commercial activities, parks,cultural institutions and a research park.

The interaction between the University, the researchpark and a business incubator will lead to aninterdependent and economically generative research andeducation complex.

Vedanta University in a nutshell

SALI

ENT

FEA

TUR

ES

World-class. Multi-disciplinaryuniversity, withstudents fromacross the world.

1 A ‘not-for-profit’institution.5

Integratingteaching, learningand research into aholistic learningenvironment thatencouragesscholarship.

3Producerrather thanconsumer ofknowledge,innovatorrather thanimitator.

6Home toaround 100.000talentedstudents fromaround theworld.

Academiclifeharnessedto increasesocialwell-being.

7Nurturinggenerations of globalleaders who willmake significantcontributions tosociety in theirchosen field of study.

4 Floor arearatio of 1:18

The universitycampus wouldspan across6,000 acres onthe Puri-Konark marinedrive in Orissa.

9 13Commitment topassionate pursuit ofexcellence and openingdoors to the very bestand brightest byfollowing need-blindadmission policy.

2 All studentswould live oncampus1210

The universityand town willgrow at thesame rate toaccommodateuniversitygrowth.

14

11An estimatedRs.15, 000 croresinvested in athriving eco-system ofknowledge foraround 40,000students persquare mile

Includesstudent lifespaces suchas unions,recreationcentres andfields

Understanding India’s higher education

What percentage of (18-25 years)Indian youth, goes to college?

7%How much do Indian students spend in

forex on foreign education?

USD 10 billion

How many applicants compete for the1,350 IIM seats?

300,000How many Indian Universities have

made it to the world’s top 500?

3

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Bigger victoryBut beneath the surface, Odissi hasscored a bigger victory in its socialimplication. For centuries, Odissi waslargely performed by dedicated templedancers (maharis or devadasis).Gradually, as royal patronage declinedbut the institution of temple dancerscontinued, the dancers were compelledto seek their sustenance through lessdignified means.

This represented a critical socialchallenge in the 20th century: on theone hand, the art form exhibited thatwomen could showcase the purity ofreligious thought; on the other, itenslaved them in the world’s oldestprofession. On the one hand, the dancewas considered essential for personalitydevelopment; on the other, it was usedto exploit.

The big test: would it continue to bedismissed as a ‘lowly’ art form by therespectable or would it be able to shedits skin?

And that is where Odissi has scored itsbiggest victory in the last few decades,far bigger than the international acclaim,far more than the growing number ofinternational students, far beyond therigour of students coming from acrossthe continents to study the art form inOrissa today. And it happened becausepioneers like Sanjukta Panigrahi,Priyambada Hejmadi, Minati Mishra,Sonal Mansingh and Kumkum Mohanty

dared to defy social barriers byperforming Odissi among therespectable in public. The result is that inthe short span of these few decades,Odissi has regained the shine of thecenturies.

RespectThere is a respect for this art form thatextends from its patronage by therichest of the rich and its acceptance bythe most respectable of the respectable.

Odissi can now proudly rank among theforemost of India’s classical dance forms.

But challenges persist. The invasion ofthe visual media, television andcontemporary music and dancethreatens classical art forms that aredemanding to execute on the one handand require a sense of aestheticrefinement to appreciate on the other.“In spite of this vulgar onslaught, I amthankful that there is still a discerningpublic large enough to be interested inthe pursuance of classical dance,” saysrenowned dancer Aruna Mohanty.“Interestingly, much of the interest inOdissi appears to be coming from theWest, especially second and thirdgeneration Oriya expatriates. Thisinterest is being sustained by patronagefrom the government-run departmentsof Culture & Tourism as well as CentralSangeet Natak Academy, ICCR (IndianCouncil for Cultural Relations) andbusiness houses willing to sponsordance performances.”

Padma Vibhushan Guru Kelucharan Mohapatra

ODISSI.CIRCLECOMING A FULL

In Orissa, it is more than a shape. Itrepresents the heart of the state’s

socio-cultural ethos: the strikingvermillion on a newly married woman’sforehead, the circular vernacular, therounded figurines on Orissan temples,the hypnotic, circular gaze of theresident deity Lord Jagannath and theconspicuously circular, lyricalmovements of the Odissi dance form.

ConnectorThere are few motifs of Orissa thatconnect the last two millennia in thestate more visibly than this art form.The evidence is in the texts of old, theage-old sculptures, the templearchitecture, the traditions of thegenerations, the narrative paintings, thedesigned mud walls, the different alliedart forms, the rhythmic percussionsounds, the lilting music and thedelicate graceful movements of thepeople. Odissi reflects all of these andmore.

And never in recent times has this artform played a more strategic role thanwhen Orissa became a separate state in1936. There was an expressed need ofthe community to redefine itself arounda separate – owned – identity. The statejourneyed inwards to rediscover itself;Odissi dance and music, a relevantmotif for the regeneration, was

gracefully retrieved from buried historyleading to its rightful renaissance.

ChallengingThis ‘renaissance’ was not easy. Whatwas required was the finesse to gleanthe essence from all available sourcesand harmonise them into a refinedform that would not only embodyOrissa’s rich cultural heritage but alsograduate it to its rightful place as one ofthe most beautiful classical dance formsin India.

And it happened, gradually. In the 50s, aCuttack-based group called Jayantika,comprising dance scholars, researchersand eminent gurus like Pankaj CharanDas, Kelucharan Mohapatra, DebaPrasad Das and others, showcased thetraditions of excellence, gave it adistinctive grammar and developed arepertoire to facilitate the transition ofOdissi from the temple to the stagewithout compromising its spiritualessence. The result is that Odissi todayhas established itself as a distinctivelyrical style; within 60 years, thecenturies-old art form has extended fromstate confines to national interest andinternational acclaim; the last 30 yearshave been marked by extraordinarychoreographies, the most prolific amongthe choreographers being the legendaryGuru Kelucharan Mohapatra.

The circle.Meansdifferentthings todifferentpeople.

BY DR. ITISHREE DEVIScholar and Odissi dancer

T H E A R T S

Mangalacharan (comprises invocation to Ganesh,Saraswati or other Gods and Goddessesand culminating in prayer to MotherEarth, guru and audience).

Batu(dance number of antiquity; introducesthe full gamut of the nritta techniques)

Swara Pallavi(based on a raga – slow to fast – themood of the raga illustrated throughdance movements)

Abhinaya(dance expressing the theme of a songthrough body movements, handgestures and facial expressions).Requires skill and maturity

Mokshya (liberation, ending with abstract designgenerally followed by a sanskrit shlokadescribing equanimity)

TypicalOdissirepertoire

Odissi may well claim to be theearliest Indian dance style based onarchaeological evidence, the mostoutstanding being the Rani GumphaCaves of Udaygiri near Bhubaneswardated 2nd century BC.

Legend has it that two KeshariKings, whose Keshari Dynasty lastedfor 300 years from the 9th centuryonwards, were called Nritya Keshariand Gandharva Keshari.

The great ruler Chodaganga Dev ofthe Ganga Dynasty (1077-1147) wasresponsible for building themagnificent temple dedicated to LordJagannath at Puri and initiating thetradition of having dance as part oftemple ritual. In 1194, KingAnangabhima Dev added the Hall ofDance (Nata Mandira) to the temple.

The custom of having Odissiperformed by boys dressed as girls,known as Gotipuas, enabled thedevotional poetry of the Gita Govindato reach the general public outside thetemple precincts.

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United Kingdom: Exhibited during theWorld Travel Market's 1998 at Earls Court,London with support of Government ofIndia Tourist Office, London

United Kingdom: Exhibited during theWorld Cup Cricket 1999, held atEdgbaston, United Kingdom

France: World Sand SculpturingChampionship at France 2000,representing India

China: International Sand SculpturingChampionship 2000 at China,representing India

United Kingdom: International SandSculpturing Championship 2000 atGlasgow, representing India

Singapore: Participated in Santosa SandStation, Splendours of Golden Asia atSingapore, on June 3, 2001, representingIndia

Denmark: International Sand SculptureFestival, Blokhus on June 25, 2001,representing India

Italy: Third Prize in World's Master SandSculpture's Championship, on July 16,2001, at Italy

Netherlands: Singles International SandSculpting Competition at Scheveningen,Holland, representing India on May 6,2001 and May 6, 2002

Japan: Champion Medal in "29thInternational Snow Statue Contest, 2002"at Sapporo, Japan

Belgium: Sand Sculpture Festival,Blankenberge, 2002, at Belgium in June

Netherlands: The Dutch Sand SculptureFestival, Thorn, 2002 -2003, at Holland inJuly

China: The first China Ningxia Sand LakeInternational Sand Sculpture Events,August 3 to August 10, 2002, representingIndia

China: The Third Luilang Colour SandFestival Demonstration Prize at China,2003

Spain: Second Prize in International SandSculpture Championship at Valadoli,Spain, 2003

Germany: Third Prize at BerlinInternational Sand SculptureChampionship at Germany, 2003

China: Fourth Prize at China InternationalSand Sculpture Competition 2003

UAE: Sand Sculpture Demonstration atMuscat Festival 2004 at Oman

Germany: Participated at Sand WorldFestival at Travemunda at Germany, 2003-04

Germany: Public Prize at Second BerlinSand Station Competition 2004

Australia: Participated at Sand SculpturingAustralia 2004 at Melbourne

USA: Participated in HoustonInternational Festival 2005 at Houston,Texas. Recreated the Taj Mahal in sand

Germany: First Prize at the Third BerlinInternational Sand Sculpture Competition2005

Germany: First Prize at Berlin WorldSand Art Competition 2008

INTERNATIONAL AWARDS AND ACHIEVEMENTS

Sudarshan Patnaik was born in Puri. From hischildhood, he was always drawn to the beach. He

used to visit the beach everyday and carve faces of godsand goddesses in the sand. Patnaik defied conventionand started exhibiting sand art at various places inIndia, determined to earn it the recognition it deserved.

Sudarshan travels the country, training and conductingwork shops. Recently, he made a four-feet sculpture ofMichael Jackson in Puri. Sudarshan has alsoestablished the Golden Sand Art Institute, the first ofits kind in India.“The shoreline is the

most expansive canvasin the universe.” Sudarshan Patnaik, world-renowned sand artist

SANDMASTER

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BORN-AGAINBNRBNR WAS MORE THAN A HOTEL. IT WAS A

MOMENT FROZEN IN COLONIAL INDIA.

T O U R I S M

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You gazed from a distance andwondered about the rarefied air

within … the turbaned steward inwhite clothes and canvas shoes,knocking lightly on the door with awhispered ‘Chhota hazree, saheb’ atseven in the morning; the boredhousewife knitting in the corner andcomplaining that this year it just hasn’tbeen cold enough; the boxwallah fixinghis pipe and waiting for his trunk callto Calcutta at the reception counter;the eighteen year-old heiress of atycoon’s empire fussing over herconsommé at the dinner table; thepatriarch of the family looking at themounted giant deer head with a smug‘Dhenkanal variety from the Twenties’.

When we went to Puri in the days ofold, the one structure that towered overall others was the BNR Hotel. Either youcould afford it, or you simply couldn’t.

And if you couldn’t afford to get a drinkwith the sahibs in the evening, youcould at least sniff the air outside, walkon the sand and intone ‘Some day…’

And then the sepia of the BNR turnedan extra shade of brown.

The paint peeled. The gentry thinned.BNR became nothing more thanmemory; the well-heeled stayed at thenewer names on the beach andremembered that when they came acouple of decades ago as children theystayed at a venerable abbreviation witharches but no swimming pool; withlatticed windows but no television.BNR gradually became a relicenunciated in the past tense.

Until 2007. When the Indian Railways– owners of the property – invited bidsfrom the public for the rejuvenation ofits heritage and landmark showpiece.The Chanakya Group won the bid andentered into a public-privatepartnership with Indian Railway

Catering and Tourism CorporationLimited. The new management did notwaste time in spelling out its agenda:position BNR as a railway boutiquehotel and return the showpiece to itsformer glory.

The BNR hotel was established in 1922by the Bengal Nagpur Railway followingthe acquisition of the picturesqueAshworth Villa from a Dr. Elmes. This 34-room hotel,converted from an Englishman’s villa,remained an exclusive preserve ofEuropeans till Independence, the onlydeviation from the rule being theaccommodation of the members of theIndian Civil Service. Consequently, fewIndians had an opportunity to beacquainted with the property beforeIndependence. And thereafter, few couldafford to stay there. By the time BNRbecame affordable, the magic was gone.

And it is precisely this magic that thepresent owners wanted recaptured.“When I visited BNR Puri for the firsttime, I felt it had the potential toemerge as a wonderful boutiqueproperty,” says Akhil Kochhar. Theyoung man, with a Master’s degree inhotel investment and revenuemanagement from New YorkUniversity is the project manager ofChanakya BNR (as it has beenrenamed). “We have kept the externalfaçade untouched, refurbishing onlythe internals. One of the things that Iwanted to retain and enrich was theromance of the Indian Railways. Andthis led me to an extensive research ofthe railways, its infrastructure,historians and books like Bridges,Buildings and Black Beauties ofNorthern Railways by Vinoo Mathur.”

Akhil’s extensive railway researchconvinced him of one fundamentalreality: that the illustrious history ofIndian Railways could be better

How to get there?Sprawling over 2.94 acres, BNR inPuri is half a kilometre from thePuri railway station and around 62km from the Bhubaneswar airport.Re-launched in December 2009,the hotel’s facilities include 37luxury guest rooms, a multi-cuisine restaurant, a swimmingpool, extensive gardens and an airconditioned conferencebanqueting facility for 300 people.

“If you can appreciate the diversity and immensityof this 156-year old institution called IndianRailways, you can bond better with the Indianpeople. Because Indian Railways is practicallyIndia-in-motion and BNR represents a milestonein the century-old journey of Indian Railways.” Akhil Kochhar, Project Manager, BNR Puri

showcased for appreciation andarchiving through the re-invention ofBNR. The Chanakya Groupmanagement also tied up with theNational Rail Museum, New Delhi, andconsulted railway historians to knowexactly how BNR Puri could berepositioned as a ‘railway theme hotel’where every room would celebrate theachievements of the railways throughrare photographs and relatedinformation. Akhil adds: “We arefortunate to be associated with theRailway National Museum and haveaccess to those previously undisplayedphotographs.”

One surprise chanced upon duringresearch was BNR’s celebrity guests:“We researched our guest logs since1955 and discovered patrons likeSatyajit Ray, members of the royaltyand foreign dignitaries. It was apowerfully emotional foundation towork on and it is our intention to takeit to the next level.”

So when relaunced, this is whatChanakya BNR Puri has combined –history, heritage, romance, nostalgia,cuisine, leisure and entertainment. Addto that the sun, the surf and the serenenatural environment. The magic andglory of the past restored!

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TestChilika is now being showcased as anenvironmental turnaround story the world over.A couple of decades ago, most observersdismissed the lake’s prospects on account ofaccumulating silt at the lagoon’s sea mouth. Theconsequence: fewer migratory birds, lower fishpopulation and an unprecedented reduction inthe Irawaddy dolphin population. The verdict:the lake would soon die. This fear was reflectedin the lake’s inclusion in the Montreux Record

(threatened list of Ramsar sites) in 1993 due tochanges in its ecological character.

“The Chilika Development Authority seized thesituation,” says Dr. Ajit Kumar Pattnaik. “TheCentral Water Power Research Station suggestedopening an artificial mouth. The implementationwas tough owing to several dissenters withalternative ideas. Eventually, the governmentpermitted the opening of an artificial mouth on23rd September 2000, reducing the length of theoutflow channel by 18 km.”

Waders, Waterfowls, gulls and Tern flock toChilika as do big squadrons of Spot-billed

Pelicans, Asian Openbills, Greater and LesserFlamingoes. The hard-to-see Asian Dowitcher isa regular here, and rarities include the majesticGoliath Heron, the quaint Spoon-billedSandpiper and the Baer’s Pochard.

Gulls from southern Russia and Mongolia. Ternsfrom Africa and North America. Asian Openbillsfrom Southeast Asia. Flamingoes (Greater andLesser) from Northwest India. Goliath Heronfrom Africa. Spoon-billed Sandpiper from NorthEastern Russia. Baer’s Pochard from SoutheastRussia and Northeast China. The largestinternational Olympics for birds in the Orient.

The big news is that the conference of birds justgot bigger. “The water bird count increased by50,000 in 2008,” says Dr. Ajit Kumar Pattnaik,Chief Conservator of Forests, Chief Executive,Chilika Development Authority (see interview).“More birds, means more fish. More fish meansricher bio-diversity.”

Chilika is one of the 19 wetlands of internationalimportance, designated by India under RamsarConvention and Asia’s second largest naturalbrackish water lake. One, because of its sheerscale. Two, because of the migratory incidence ofArctic and Central Asian waterfowl. The result isthat Nalabana Island (15.53 square km) is nownotified as a sanctuary, considering its uniquefeatures as a habitat for avifauna.

Mellow sun. Water’s glitter. Oar swish on water. Fisherman’s hum. Carpet of wings.

Just another late afternoon on the Chilika lake, the largest coastal water lagoon in

India and perhaps the second largest in the world.

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The gamble paid off. The environmentimpact assessment and lagoonecosystem monitoring, carried out bythe National Institute of Oceanography(Goa), indicated that lagoon waterquality had improved remarkably. Theresult: fish landing rebounded in 2001-02 and thereafter peaked at 14,000tons, strengthening fishery resourcesand boosting per capita fishingincomes.

In response to a formal request, aRamsar Advisory Mission (RAM)visited Chilika to review CDA’s effortsto preserve the lake’s uniquebiodiversity. They were satisfied andconsequently, Chilika was removed

from the threatened list of Ramsar siteswith effect from 11th November 2002,leading to the Ramsar WetlandsAwards for 2002.“I think a comprehensive regenerationis gradually unfolding,” says Dr Pattnaik. “There is a substantialincrease in crab production,reappearance of threatened species,expansion of sea grass meadows,increase in avian diversity, habitatexpansion of the Irrawaddy dolphin(now the highest lagoonal population ofsuch dolphins in the world), efficientsediment flushing into the sea and adecline in fresh water invasive species.Suddenly, Chilika is being showcased asa model for environmentalregeneration.”

More relevantly, Chilika is now asymbol of hope. For Orissademonstrating that eco-diversitycannot be the price for economicresurgence. For conservationistsstruggling to safeguard the world’s lastremaining wetlands. For ornithologistsstudying the rare migratory bird speciespopulating the lagoon. For marinebiologists studying flagship species ofthe lagoon and the Irawaddy dolphin(the highest population in the world).For over 200,000 villagers sustainedeconomically by proceeds from thelake. And for national and internationaltourists and nature lovers who can nowsoak in the lagoon’s ethereal charm bystaying in houseboats recentlyintroduced by the government.

Across the vast brackish lagoonlegends crisscross reality. Butsometimes, legends could be moreengaging and more enduring thanreality. Think about a girl (Jai)coming to marry in Parikud, herboat capsizes in the waters and shedies with all her young aspirationslocked in her heart. Later she isdeified as goddess Kali, who savesfishermen, lost in the vast stretchesof water where life is constantly atperil. Experts are sceptical: theyopine Kalijai is a poet’s muse, aproduct of his imagination. But thatdoes not prevent lakhs of devoteesfrom flocking to her shrine. MakarSankranti, is one occasion, whenKalijai’s shrine bustles withfollowers. Faith, as they say, has itsown reason.

1. Watershed management: CDAevolved a catchment treatment planusing the latest IRS, IC and ID satellitedata as a part of its integratedwatershed management. Appropriateland use and soil moisture conservationwere emphasised.

2. Habitat evaluation of Chilikalagoon with special reference to birdsas bio-indicators: The CDAcommissioned the Bombay NaturalHistory Society:

To assess the species-wise populationof Waterfowl and Waders in differentsectors of Chilika Lagoon and theirrelationship with habitat factors

To study the population dynamics ofmigratory species using bird bandingtechniques

To document the endangered,endemic and vulnerable species andtheir conservation needs

To evaluate the impact of therestoration measures, especiallyopening of the new mouth

To suggest habitat improvementmeasures for Nalabana Island

To enumerate the status of breedingbirds and their conservation needs

3. Management of plant resources:Aquatic plants represent an importantcomponent of the wetland ecosystem,providing food, shelter and a spawningground for a number of species. Theywere monitored by image processingmethods to know their dynamics. Theresult: it was found that rare plants(Cassipourea ceylanica, Colubrinaasiatica, Capparis roxburghii, Maeruaoblongifolia and Heliotropiumcurassavicum, among others) neededimmediate conservation.

4. Communication infrastructure: Anumber of thickly-populated fishingvillages around Chilika do not haveproper road network, makingmarketing fish and fish productsdifficult and resulting in distress sales.The CDA introduced a ferry servicebetween Satapada and Krushna Prasadisland, benefiting over 70,000 people.

5. Fishery resource: To regulatefishing activities and to remove theunauthorised encroachments andenclosure for prawn culture, a taskforce was created under theadministrative jurisdiction of thedistrict collector of Puri and Khurda.The fish landing and fish stock

assessment was carried out by the CDAin collaboration with the State FisheriesDepartment. Central Inland CaptureFishery Research Institute (CIFRI),Barrackpore carried out the lagoon’scapacity study in order to determine themaximum sustainable yield.

6. Socio-economic activities: TheCDA conducted a socio-economicsurvey in the peripheral villages thatsuffered from drinking water andhealth-related problems to identify thekey socio-economic issues, relieving thepressure put by these communities onthe water body.

7. Wetland Research Centre: TheCentre facilitated studies and researchon limnology, hydrology, flora, faunaand the coastal influence on the lagoon,to facilitate an ecological andmathematical modelling with adecision-support system.

8. Visitor Centre: The Centre atSatapada showcases Chilika’s biodiversitythrough multimedia presentations, touchscreens, exhibits, diorama, aquarium,observatory and a discovery room for thechildren. More than 100,000 tourists visitSatapada a year.

8Eight ways in which Chilika Lake was turned around

Vignettes of a backwater

The population of Irrawaddy dolphins in the Chilika lagoon has increased by eight(2009 population census, as reported by Chilika Development Authority). Now thelake houses 146 Irrawaddy dolphins (111 adults, 18 sub-adults and 17 calves), thehighest lagoon population of such dolphins in the world. The census was carried outby three teams (69 members) equipped with binoculars, GPS set, VHF sets,rangefinders and data recording sheets.

“I think acomprehensiveregeneration is

graduallyunfolding,”

Like fish, legends abound in Chilika’sbackwaters. According to one of them,the pirate King Raktabahu camestealthily to ransack Puri by sea.Anchored out of sight, the ship’s refusewas washed into land, residents fledand Raktabahu entered a deserted city.Furious at being let down by the ebb

and flow, his army attacked the sea; thelatter surged back to drown his army.The result was the creation of theChilika lagoon.

Nevertheless, geological studiesindicate that the coastline extendedalong the western shores of Chilika in

the Pleistocene era and that the entirenorth-eastern region above Chilikawas under the sea. Much has movedsince; the coastline has movedeastward and even the sea-borne SunTemple of Konark is now over 3 kminward.

The legend of Kalijai

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Pioneering strawberriesStrawberry? That was Kataru Majhi’sreaction when he first heard this wordtwo years ago. A tribal from theRengopali village (LanjigarhPanchayat), all he cultivated wasbrinjals, tomatoes and chillies. Barelyenough to provide two meals a day forhis six-member family.

“Vedanta approached me with aproposal to cultivate strawberries. Thecompany provided me with training,runners, bio-fertilisers and a market. I

only had to focus on growing them onmy land,” he says.

And so, in December 2008, KataruMajhi became Orissa’s first strawberrygrower. While the cultivation of regularcrops brought in about Rs 12,000-15,000 an acre annually, strawberrycultivation raked in six times as much.Kataru’s immediate response: hedoubled the acreage under strawberry.

Empowering others Sulochana Majhi (62) offered her land

for the alumina project undertaken byVedanta Aluminium Limited (VAL)and was compensated with cash andaccommodation in the NiyamgiriVedanta Nagar rehabilitation colonybuilt by Vedanta Aluminium. Insteadof simply living off the compensationfor the rest of her life, Sulochana, withthe support of Vedanta, started the MaaBudhima Self Help Group with 10members. Vedanta trained them inphenyl production and contributed theraw material for the same.

Today, these women are self reliant andcontribute to the livelihood of theirfamilies. Each SHG member earns Rs.1,500 monthly. Sulochana’s MaaBudhima Self Help Group wasrecognised as the Best SHG Action bythe Development Task Force, a civilsociety group in Orissa. She wasawarded by the Chief Minister, NavinPatnaik. Sulochana’s success inspiredthe creation of another eight SHGs.

No longer handicappedHandicapped husband. Three youngchildren.

Life seemed hopeless for Sabita Mirij, apoultry farmer in Banjari.

Until a livelihood finance project calledVedanta Integrated Jana Jeevika Yojana(VIJJY) was initiated in her village.VIJJY trained Sabita in advancedpoultry farming and provided rawmaterial linkages. Her defunct poultryshed was renovated. Aroud a 100 chickswere provided every month.

Today, she earns Rs 3,500 a month.More importantly, she has emerged as afigure of hope.

Investing in a better futureBasanti of Brundamal. Landless.Couldn’t get work as agriculturallabourer. Husband generally drunk. Nohelp feeding their three children.

VIJJY helped Basanti become a memberof the Subhalaxmi Mahila SamabayaLtd for credit and savings support.Helped her set up shop with Rs 5,000.;

Gradually, her daily sales doubled to Rs.800-1,000. Today, Basanti can providefor her children and has earned therespect of the village.

MAKING ADIFFERENCE

Towards a better tomorrow

On KalahandiOrissa’s Kalahandi district is largelypopulated by indigenous tribalcommunities who till date, continuewith their time-defying rich culturalheritage. However, it remains aneconomically backward area and hashigh incidences of malaria, cholera anddiarrhea deaths as well as prolongeddrought. Another major problem in thearea is its dismal literacy rate (29%overall and 6% in Lanjigarh against thenational average of 68%). After muchdebate in the parliament, a specialregion (KBK) was formed by thegovernment, comprising the districts ofKalahandi, Bolangir and Koraput tofacilitate and precipitate the all rounddevelopment of the area.

On the road linkagePoor road conditions in this hilly areamake accessibility difficult. To reachBhawanipatna (65 km from Lanjigarh)it takes around 3.5 hours and to reachRayagada (95 km.) it takes around 5hours.

On generating public supportInitially, we collated information aboutthe basic needs of people and createdour CSR philosophy around it. Ourprimary objective: communityempowerment in an area that is neither

agrarian nor industrial; low literacymeant that jobs could not be generatedand we needed to developentrepreneurial opportunities reflectingthe will to earn a living through work.

On the catchment area We concentrated on a 10 km radiusarea (core) with a total population ofaround 20,000.

We employed locals as coordinators tovisit around 100 villages. We identifiedmore than 200 individuals interested inbuying vehicles from the proceeds oftheir land sale and renting them to ourcompany in return for an attractivemonthly income. We also provided civiland local construction opportunities fora fixed sum (as opposed to daily wages).This was rewarded with speed andingenuity. Those who started by earningRs 500-1,000 a month have nowgraduated to Rs 5,000–10,000 a month.The best part is that our interaction wasdirect, no intermediaries.

On the bottomlineThe success of our community relationswas that we commissioned ouraluminium refinery in a record 32months against a prevailing benchmarkof 60 months.

Our education effortThere are only a handful of schools inBhubaneswar that can be compared toours in standard. We first worked on thepre-primary level by opening 40 childcare centres that we set up withgovernment help; we providednutritional benefits for children(between 3 to 5 years), starting from 400anganwadis and going up to 1,100. Wealso incentivised punctual teacherattendance. We sponsored some schoolsand in villages where none existed, weestablished some. We also supportedsome 35 students by providingscholarships if they stood first. Westarted coaching centres with schemes totrain the teachers. We arranged mid-daymeals for around 14,000 children in theLanjigarh area through NaandiFoundation. We created a school withan investment of Rs 4 cr to trainstudents in English, mathematics,computers and creativity completely freeof cost and today, we have 253 students(220 from the local community). Wedon’t charge the students.

Dr. Mukesh, COO, VAL, Lanjigarh

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So instead of asking which cities will grow in the future, the more pertinent point could be: inwhich cities is business likely to get easier.

In a recent World Bank survey that sought to identify the most business-friendly destinations, thetop five contained two relatively unexpected names. Ludhiana headed the list; the city that camethird out of 17 surprised most people. Bhubaneswar.

The survey indicates that it is easier, less-stressful and more functional to do business in the capitalof Orissa. Bhubaneswar has performed better than even India’s capital (which figures at six) orIndia’s financial capital Mumbai (which figures at ten). Among regional peers, Ranchi finished atnine, Patna at 14 and Kolkata at a lowly 17. Not for no reason are an increasing number of businesspeople wanting to enter eastern India, finding it relatively easier to do business in Bhubaneswar.

This survey was conducted across factors as diverse as the ease in starting a business, dealing withconstruction permits, registering property, paying taxes, trading across borders, enforcingcontracts and closing a business.

Some of the initiatives that contributed to Bhubaneswar’s high rating: The BhubaneswarDevelopment Authority adopted a Geo-Information System to provide information on eachrevenue plot along with master-plan provisions such as land-use zones, roads, drains and openspaces, which made it easier to start a business. Besides, the implementation of computerised landrecords has made it easier for entrepreneurs to detect land encumbrances.

BHUBANESWAR MEANS

BUSINESS!Two simple truisms: Cities grow where business is easy; functional cities enhance competitive edge

Doing business in India: Where is it easier?

1 Ludhiana, Punjab (easiest) 10 Mumbai, Maharashtra

2 Hyderabad, Andhra Pradesh 11 Indore, Madhya Pradesh

3 Bhubaneshwar, Orissa 12 Noida, Uttar Pradesh

4 Gurgaon, Haryana 13 Bengaluru, Karnataka

5 Ahmedabad, Gujrat 14 Patna, Bihar

6 New Delhi, Delhi 15 Chennai, Tamil Nadu

7 Jaipur, Rajasthan 16 Kochi, Kerala

8 Guwahati, Assam 17 Kolkata, West Bengal

9 Ranchi, Jharkhand

Upcoming projects

Corporate & IT Tower, Bhubaneswar

IT Towers at Rourkela and Berhampur

Urban Haat at Puri

Petrochemical and Chemical InvestmentRegion (PCPIR) at Paradeep

International Convention Centre,Bhubaneswar

Handicraft & Handloom Cluster

TSDF

Industrial Estate for Auto and Autocomponent

Bio-IT Park

Aluminium Park at Angul

New Industrial Estates

Note: The ease of doing business is calculated as the ranking of the simple average of city percentile ranking oneach of the 7 topics covered. The ranking on each topic is the simple average of the percentile on its componentindicators.

Source: Doing Business Database

PIONEERING ORISSA’S INDUSTRIAL GROWTH

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“Orissa accounts for 15% of total investmentin hand in the country. It tops in terms ofindustrial investment (USD 133 bn) andproject implementation, ahead of Maharashtraand Gujarat.” Centre for Monitoring Indian Economy (CMIE)

From its unspoilt pristine beaches toadventurous jungle retreats, not to mentionthe colourful life of indigenous tribes, Orissanaturally offers its riches to the curioustraveller. No wonder that, despite the globalrecession, tourist footfall in Orissa hasincreased.

Mr. T. Ao, Director Tourism & Additional Secy., Govt. Of Orissa

“The steel plant and power project, along withinvestment planned by TCS and Taj Hotels isa concerted effort by the Tata Group toincrease its presence in Orissa. Theseinvestments, combined with able and efficientadministration in the state, would provide theright impetus to the speedier industrialdevelopment of the state and bring prosperityto the people.” Ratan Tata, Chairman, Tata Sons

“Orissa provides assured long-term reserves ofhigh quality iron ore, surplus and cheapelectricity and easy access to major steelconsuming markets and raw materialsources.” B Muthuraman, former Managing Director, Tata Steel

"Relative to building the 10th new retail mallin a suburb of Mumbai ... I'd much ratherbuild the first distribution park in the steelindustry of Orissa, where you've got greatdemand." Alastair King, CEO of UK-based India investor Eredene Capital(Reuters)

“Orissa is the fastest progressing state inmacro economic performance in India”. India Today in its State of the States Survey 2007

“The state recorded almost twice the nationalgrowth rate which was 21% last fiscal. Keralaand Gujarat are the only two other states inthe Rs.1,000 crore- plus software exportcategory, which have shown a higher growththan Orissa in the last fiscal.” PK Mohapatra, IT Secretary

“Orissa’s economy is poised to grow at 7.1%over the next 10-12 years, the highest ineastern India.” McKinsey

“Our project in Orissa will play a pioneeringand catalytic role by attracting other autoOEMs and auto components manufacturingbusiness houses to set up units in Orissa andthus replicate the story of agglomeration effectin Orissa.” RK Behera, Chairman, RSB Group

ORISSA OPINIONS

O-Disha' has been published by Bibek Chattopadhyay on behalf of the Vedanta Aluminium Limited (VAL).The opinions / views expressed in the magazine are those of the respective authors and do not reflect orimply those of the editor, VAL or their agents. This magazine is meant for private circulation only.

Readers are most welcome to mail feedback on magazine to communications@vedanta.co.in

Inaugural Issue 2010The voice of a resurgent Orissa

ORISSAAWAKENINGTO A NEW DAWN

RESPONSIBLECOMPENSATIONDr. Sudhakar Panda, Chairman, State Finance Commission,explains the success of Orissa’sdevelopmental model

REVERSINGBRAIN DRAINAbhijit Sen, Head, Infosys(Bhubaneswar), appraises thesuccess of Infosys within thecontext of a re-energised Orissa

ODISSI.COMING A FULL CIRCLE.

INSPIRINGENTREPRENEURSHIP