JSW plans to set up Rs 35k-cr steel plant in Orissa
Jindal group company JSW Steel is all set to invest Rs 35,000 crore to set up a 10 million tonne steel plant in Orissa. The new plant would be in addition to the company’s proposed 10 mt greenfield project in Jharkhand and a 4mt plant in West Bengal.
By Subhash Narayan, TNN |
NEW DELHI: OP Jindal group company JSW Steel is all set to invest Rs 35,000 crore to set up a 10 million tonne steel plant in Orissa. The new plant would be in addition to the company’s proposed 10 mt greenfield project in Jharkhand and a 4mt plant in West Bengal.
Together with the brown-field expansion at Vijaynagar from 3.8 mt to 10 mt by ’10, the proposed projects in Orissa, Jharkhand and West Bengal would enhance the company’s production capacity to 34mt by ’12.
When contacted, a senior company official confirmed its Orissa investment plans. “We are currently at the final stages of preparing a detailed project report (DPR) for our proposed investment in Orissa. Once this is through, we hope to sign an MoU with the Orissa government. This may be done soon,” the company official said.
JSW has already sent an application seeking views of the Orissa government over its proposed investment in the state. Orissa government officials said that the same was being evaluated, but no decision has been taken yet.
Sources in the company said that JSW is focusing on the Orissa project as proposed 10 mt Jharkhand project is not moving at the desired pace. Even though an MoU for the Rs 35,000 crore investment project was signed last year, the state government has not given any commitment to the company for release of iron ore resources, they said.
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The company needs about 500 mt iron ore reserve on a 30-year lease to provide assured raw material supplies for its proposed 10mt steel plant. “The company is looking at Orissa in the hope that faster clearance would be given for release of iron ore mines for captive use by the Orissa government,” sources said. It may be noted that similar delays also forced Mittal Steel to move out of Jharkhand and sign an MoU with Orissa government for its proposed 12 mt steel plant. Apart from steel plant, the investment may also include a large power plant of the size (900 MW) proposed in Jharkhand.
The steel industry in the country is on a roll with investment proposals of over Rs 2,70,000 crore coming in to add over 100 mt of steel capacity. JSW Steel that currently has a crude steel capacity of about 3.5 m is expanding its Vijaynagar facility to 7 mt by ’08 and further to 10 mt by ’10.
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