Bhubaneswar: Even as Odisha has signed 8 MoUs during the ongoing visit of Singapore President Tharman Shanmugaratnam to the State, two projects signed seem gamechanger as it will catapult the State to the league of developed states by the year 2036 - the year which State BJP govt has fixed as the target year..
In a significant development ahead of the Utkarsh Odisha in Jan end, the Signaporean Prez’s visit and an array of MoUs signed had catapulted the State to brand it as ‘Futuristic State’ ahead of the mega investment summit.
BIG MOUs IN CAPSULE
- IDCO MoU with Sembcorp for Industrial park
- IDCO MoU with Surbana Jurong for PCPIR (Petrochemical and petroleum investment region) complex.
- GRIDCO, IIT Bhubaneswar MoU with Singapore's Nanyang Technological University (NTU) for collaboration with R&D on Green Energy
- IDCO MoU with Sembcorp for setting up of Green Hydrogen Corridor
- BDA MoU with Surbana Jurong to incubate a new city, near State Capital City Bhubaneswar.
Among the major MoUs, signed, the signing up of MoUs with regard to setting up of Green Hyrdrogen Corridor and New City are being seen as gamechanger ones as they dealt with the ‘futuristic’ vision of Odisha government, which will make the State wing up to enter the league of developed states in the country.
WHY 2 MOUs GAME-CHANGER?
- GAME CHANGER NUMBER 1
Since Odisha is home to major industries such as steel, aluminium, cement, among others, with its industrial sector contributing a high of 43.3% of GSVA in 2023-24, much higher than the national average of 27.6%. and when it envisions becoming the ‘industrial hub of Eastern India’ and the trade and commerce gateway to South and East Asia, it will emerge as the highest contributor to nation and world carbon footprint.
THE GHG SCENARIO: As per report recently released report of iFOREST:
- The state’s greenhouse gas (GHG) emissions have increased at a compound annual growth rate (CAGR) of slightly over 5.6% over the last decade
- As per 2022-2023 estimates, the total GHG emission is 305.2 million metric tonnes of CO2 equivalent (MMT CO2 e), which is about 9.7% of India’s total.
- As per the projections made by the report, at the current rate of growth during the last 10-years, GHG emissions could reach 665 MMT CO2 e—more than double the current levels.
- However, in accordance with national climate action plan prepared by Modi govt – technically known as Nationally Determined contributions (NCS) – means using green hydrogen or renewable energy – which envisages 45% reduction in the emission level from 2005 base year, the GHG emissions will be 493MMT CO2 equivalent (CO2 e)
- With such scary numbers and projections at present, the State is in dire need of energy transition to adhere to the net zero emission goal set by PM Modi.
- In such backdrop, the MoU on Green Hydrogen Corridor is seen as gamechanger number 1.
ODISHA MAY EMERGE GREEN HYDROGEN HUB
Last year on March 15, 2024, Modi govt notified guidelines for setting up Hydrogen hubs in India under the National Green Hydrogen Mission (NGHM), with an outlay of Rs. 200 crore
- It aimed at supporting atleast two Hydrogen hubs in India by FY 2025 – 26.
- Solar Energy Corporation of India Limited (SECI) has been made the Scheme Implementing Agency for Green Hydrogen Hubs under the Mission.
A glance at the guidelines 2 GH hubs shows the following.
- Green Hydrogen production agreement signed, natural resource availability, available and planned infrastructure
- Presence of end – use industries, (Odisha has in abundance)
- Current hydrogen demand in the region and future projections,
- proximity to an export terminal and signing of firm off – take agreements of hydrogen or its derivatives
- As per the Ministry of New Renewable energy and Power, no specific locations for the Hydrogen Hubs have been identified so far under the Mission.
However, Ministry of Ports, Shipping and Waterways has separately identified three major ports for for development as Hydrogen Hubs
- Paradip (Odisha)
- Deendayal (Gujarat)
- V.O. Chidambaranar (Tuticorin)
Since the Ministry guidelines asks for signing of agreements, presence of end-user industries and proximity to port as the prerequisites for declaring Green Hydrogen (GH) hub, IDCO signing agreement with Sembcorp will propel Odisha to emerge as country’s Green Hydrogen Hub in coming days.
- GAME CHANGER NUMBER 2
The BDA signing MoU with Surbana Jurong to incubate a new city, near State Capital City Bhubaneswar has been the game changer number 2.
This incubation of new cities in India has been envisaged by 15th Finance Commission report submitted in 2021.
As per the report, “The Covid-19 pandemic has brought into sharp focus the well-known problem of inadequacy of appropriate housing and infrastructure facilities in urban areas. Given the trend in urbanisation, the country needs both rejuvenation of old cities as well as the setting up of new cities.”
And as such, the Finance Commission has provisioned aan amount of Rs8,000 crore for performance based challenge fund for incubation of 8 new cities, wherein the amount available for each proposed new city is Rs1,000 crore.
THE 15TH FC GUIDELINES ON NEW CITIES
As per the recommendations of the Commission,
- Ministry of Housing and Urban Affairs has to set up an Expert Committee and specify minimum eligibility conditions & bid parameters for the States to compete by 31 March, 2022.
- In this regard, the Ministry has constituted the Expert Committee on 27 December, 2021.
- As per MoUHD report, considering the small urban population in North-East and Hill States, Rs 1,000 crore for 2 new cities (Rs500 crore each) for two different States has been proposed.
- A State can have only one new city through this fund.
- Maximum 9 new cities in 9 States can be selected under the 15th FC scheme.
As per MoUHD report, as on the last date of Jan 20, 2023 for submitting bids to the Centre, a total 26 proposals from 21 States, including Bhubaneswar from Odisha.
The signing of agreement with Singapore Company Surbarna Jurong will clinch the deal of the State to figure among the nine new cities to up in the country, because Rs 1000cr is not suifficient to build a new city. Here Odisha siezes the initiative by signing agreement with a private foreign company.
BENEFITS OF NEW CITY:
- Bhubaneswar is one of the fastest-expanding cities in India, growing by 30% from 2011 to 2021.
- The population of the city in 1991 was over 4.1 lakh
- The City area in 1991 was 124.74sqkm
- In 2011, the population nearly doubled to over 8,38lakh
- The City area 135sq km
- As a consequence, the population density in the State capital turned simply horrible
- In 1991 – population density – 3299 per sqkm
- In 2011 – 6200 per sqkm.
- A new city by BDA, which has now a jurisdiction over 419sq km area, that includes BMC area, Khurda, Jatni and BDA rural.
- Following this skewed growth the City’s urban infra crumbles when the city comes under heavy rain for 3-4 hours.
- The new city will, therefore, a purposefully designed land areas which will become the center of urban development as it will be typically planned and constructed to accommodate population growth with a view to address metropolitan primacy.
