Following is an excerpt from a report in Pragativadi.
Jindal Steel and Power Ltd is optimistic about commissioning the first phase of the proposed six MTPA steel mill in Orissa’s Angul district by October 2010.
… Briefing newsmen after the meeting, Jindal said that the work for the first phase of the project was progressing well.
The company had already spent Rs 4,000 crore so far for it and has placed an order for equipment for the purpose.
Of its total project cost of Rs 13,135 crore, JSPL had also spent a lot on land, construction, equipment and other activities, he said.
Jindal said JSPL has a small iron ore mine at Tensa in Keonjhar district and is hopeful of getting raw material linkage to its Angul project.
We have been allotted coal block for the requirement of our captive power plant and the steel plant, he added.
He said that the company apprised the chief minister about the progress and made a presentation before him, while seeking the state government’s help in availing new raw material linkage early.
The JSPL which signed an MoU with the state government for setting up a beneficiation plant at Deojhar in Keonjhar district and the Angul steel plant on November 11, 2005, had progressed well besides tackling local problems, he said.
Following is an excerpt from a report in Pragativadi.
The Supreme Court on Friday permitted South Korean steel major Posco to set up Rs 51,000-crore mega steel plant and captive minor port at Paradip in Jagatsinghpur district.
A special environmental bench headed by Chief Justice K G Balakrishnan allowed Posco India Pvt Ltd, a subsidiary of South Korea-based Posco, to go ahead with its plans.
With this order, the apex court has also cleared forest diversion proposal for the plant site which require 1253.225 hectares of forest land.
The court, while directing the Orissa government to dispose of all the Posco’s applications seeking prospecting licences within four weeks, also asked the state government to send its recommendations to the ministry of environment and forests that would proceed in accordance with law.
The bench also asked the state government to undertake implementation of compensatory afforestation plan under the supervision of a Supreme Court-appointed committee comprising top officials of the state government.
… Posco counsel Mukul Rohtagi contended that the state government-owned Orissa Mining Corporation had agreed to supply uninterrupted iron ore and other minerals for its steel project and had identified mines in the western part of the state, some 300 km away from its project site.
… The company can source raw materials on its own and can buy the same from the open market, he said, adding that the company is not dependent on prospecting licence.
Steel, Steel ancilarieschittaComments Off on Tharoor interested in setting up India’s first ever welded stainless steel and duplex pipe manufacturing facility in Orissa
Mr.Tharoor met the Chief Minister Naveen Patnaik and Biswa Bhusan Harichandan, Minister Industries to brief them over the proposed investment recently.
As the Chairman of the Afras Projects India Private Limited (APIPL), he has proposed to invest Rs.800 crore in the state.
Mr.Tharoor during the meeting with Ashok Kumar Meena, the Managing Director of IPICOL had presented the proposal to set up India’s first ever welded stainless steel and duplex pipe manufacturing facility.
APIPL is the Indian arm of the Dubai based multinational giant, Afras Ltd.
Mr.Tharoor has asked for a 125 acre patch of land in Choudwar, Dhamra or Gopalpur.
According to the proposal Afras will introduce the State of the Art technology from an established European technology provider.
This will be first down stream industry of the steel sector, which will be using the products of the Jindal Stainless Limited.
R Ravi, Chief Financial Officer (CFO) of Afras Ltd, presented the concept note on the proposed unique project.
At present the company has asked for 50 acres of land and in future to cater the need of the expansion plans, it will be requiring another 75 acres.
Bhusan Steels Limited’s (BSL) 6 million ton per annum (mtpa) project, which will entail investment worth more than Rs.15, 000 crore. BSL is setting up a 3.10 mtpa steel project at Meramundali in Dhenkanal district. The company wanted to expand its capacity to 9 mtpa, but HLCA allowed a 6 million ton capacity expansion. Bhusan Energy Ltd for 2000 mw thermal power plant at one go with an investment of Rs.8483 crore.
Essar Steel Orissa Limited (ESOL)’s 6 million ton steel complex at Paradeep and 8 million ton iron ore beneficiation plant at Joda will entail an investment of Rs.10, 724 crore
Welspun Power and Steel Ltd‘s proposal for setting up a 5 million tonne per annum iron ore beneficiation plant and 3 million tonne per annum pelletisation plant at Dhamra was also cleared.
While the company had received approval for setting up of a 3 million tonne per annum (MTPA) steel plant at Tangi at an investment of Rs 6103.80 crore earlier, it proposed to set up a iron ore benificiation and 3 MTPA palletisation plant at Dhamra.
SMC Power Generation Limited (SMCPGL) to expand capacity from 0.5mtpa to 1mtpa with an investment of Rs. 1366.18 crore was cleared.
Increasing the capacity of MSP Metaliks from 0.26 mtpa to 1 mtpa with an investment of Rs.1205.80 crore received clearance from HLCA.
1000 mw thermal power plant by Monnet Ispat and Energy Limited (MIEL) entailing an investment of Rs.4107.04 crore.
Jindal Photo Limited (JPL)’s proposal to set up 1000 mw in Angul district with an investment of Rs.4525 crore.
Visa Power Limited (VPL) proposal for a 1000 mw power plant with an investment of Rs.3698 crore at one go.
Essar Group has acquired 1300 acres, out of the required 1960 acres, for its six million tonne steel project in Orissa. The company had signed a memorandum of understanding in 2005 with the state government to set up a steel plant along with facilities for making iron ore pellet and transporting iron ore slurry through dedicated pipeline from Barbil sector to Paradip.
Essar is investing Rs 15000 crore for the project. It includes an iron ore pellet plant and setting up of a slurry pipeline. The company’s Bailadilla-Vizag slurry pipleline also passes through the state.
Essar Group chairman SK Ruia expressed his satisfaction over the progress of the project.
… Mehera told reporters the work for the slurry pipeline and the pellet project has been started. Equipment supply orders for the projects have been placed with South Korean and German Companies.
This project does not seem to be much beneficial to Orissa as making pellets, transporting them and selling them is almost like exporting ores.
It is reported that Vedanta has started land acquisition for its first ever steel venture at Keonjhar in Orissa. It also hopes to start its third aluminum smelter in India by the end of June 2008. Once in place, the group’s smelter capacity would go up to almost 1 million tonne.
Vedanta has already floated an outfit called Sterlite Iron & Steel Company for undertaking the INR 12,500 crore project in Orissa and has identified 3,000 acres for the proposed 5.1 million tonne venture.
Official sources said that "This project will be like a forward integration for the group in Orissa as Sesa Goa has iron ore mines in the state which could be utilized for the project. The preliminary planning is on for an integrated environment management program and production requirements."
The source added that "Vedanta is investing INR 8,400 crore in phases in this project. The smelter will have a capacity of 50,000 tonne per year In the first phase, 25,000 tonne and a portion of 1215 MW captive power plant will be operational. The total employment in the project will be around 6,000 people."
providing employment to the affected and the displaced persons,
promotion of local employment to the extent possible,
initiative for protection of environment,
enthusing and engaging the people and
empathising with the local people.
… Tripathy said, the steel units have been advised to take up various entry point activities to fill the infrastructural gap in their area of operation.
Similarly, they also need to take care of employment of the project affected and the displaced persons either through setting up Industrial Training Institutes (ITIs) or through adoption of the existing ITIs in the state.
It will help those units to meet their requirement of skilled man power in the trades they require. The industries have further been advised to promote local employment to the maximum extent possible.
He said, the industries have been told to take up afforestation and ensure protection of social and economic environment. Efforts will have to be made for enthusing and involving the people in the industrialisation process to attain the objective of inclusive development.
Besides, the industrial units will have to empathise with the local people considering them as stakeholders in the industrialisation process. To further supplement these efforts the industries need to educate and empower the local people so that they can get jobs on merit.
Global steel major ArcelorMittal, who is proposing to set up a 12 million tonne greenfield steel plant at Patna tehsil in Keonjhar district of Orissa, plans to spend about $300 million (about Rs 1,200 crore) on rehabilitation and resettlement (R&R). …
ArcelorMittal has presented its R&R plan to the Keonjhar district administration. It plans to spend the earmarked amount over a period of more than five years.
"We plan to spend about $300 million for the R&R plan over a period of more than five years. The R&R plan has already been submitted to the Orissa government," ArcelorMittal India chief executive officer (CEO) Sanak Misra said.
After meeting Orissa chief minister Naveen Patnaik along with Sudhir Maheshwari and Vijay Bhattanagar, the members of ArcelorMittal’s group management board, in the state secretariat today, Misra told the media that their steel plant will come up in two phases of 6 million tonne each. He said the R&R plan of the company was in conformity with the R&R policy of the Orissa government.
The plan envisages dwelling units for each of the displaced family with common facilities. The rehabilitation colonies will have water supply, educational institutions and primary health centres (PHCs).
As per the R&R plan, the company will set up a state-of-the-art industrial training institute (ITI) beside the steel plant. It is in discussion with three leading institutes of the country having previous experience in handling ITIs.
The model, including student strength and the cost of setting up of the ITI, is being worked out. Misra, however, made it clear that the ITI would come up before the commissioning of the plant. The company was in discussion with the state government for the required land, he said.
Official sources said, the company planned to apply the highest standards of corporate social responsibility (CSR) for the Orissa project and intended to make the R&R policy the backbone of the CSR strategy.
Misra said a detail project report (DPR), prepared by M N Dastur & Company (P) Ltd (Dasturco), was being finalised. It would be submitted in June, 2008, he added.
The DPR includes captive mining facilities, captive power supply, water supply infrastructure and other required facilities. It also includes setting up of townships for the company’s employees.
The ArcelorMittal CEO also expressed his satisfaction over the land acquisition, saying that it was making good progress.
The company had signed an MoU with the Orissa government in December 2006 for setting up a steel plant at an investment of about Rs 40,000 crore.
An 11-member team comprising industrialists from Haryana, Gujarat, Madhya Pradesh and Uttar Pradesh is on a three-day visit to Orissa to explore possibilities of investments in ancillary industries. The team on Wednesday visited the Kalinga Nagar Industrial Complex at Dubri in Jajpur district.
Orissa is now focusing on ancillary units of mega projects that are coming up in the state with a view to further value addition and employment generation.
While the proposed Jindal Stainless Steel Downstream Park (SEZ) at Kalinga Nagar is the focus, the government is also promoting the Choudwar Industrial estate to the visitors. Orissa is keen to have ancillary industries in Rourkela, Sambalpur, Paradip and Dhamra regions in addition to the Somnathpur Industrial Estate in Balasore.
The steel SEZ (JSSL) is to come up on 300 acres near the 1.6 mtpa steel plant project of Jindal Stainless, and will house industries to move up the value chain by churning out specific products for different sectors. Investment in the SEZ is envisaged to be to the tune of Rs 1,500 crore.
A study conducted by JSSL and international consultancy firm CB Richard Elis has pointed out that the precision cold rolling, pipes and tubes, auto components, engineering products, kitchenware and lifestyle products hold much promise.
"Advantages of setting up projects in Orissa are manifold as it is at the core of emerging Markets in eastern India comprising West Bengal, Jharkhand, Chhattisgarh and north east", the director industries, Hemanta Sharma, told the visiting industries. It is also the gateway to the Southeast Asian countries in terms of exports, he added.
The state government had lined up a comprehensive package including incentives and concessions to promote ancillary enterprises, Sharma said.
Asserting profitability of the ventures here, CEO of Jindal Stainless SS Virdi said applications of steel are growing faster compared with any metals as per capita consumption (PCC) is on the rise. In India, the PCC is only 1.1 kg compared with 15-20 kg in developed countries.
Following is excerpted from a report in tathya.in. The various projects that were cleared are:
A 12 MTPA Greenfield steel mill at Astaranga in Puri district by Navayug Steels Limited with an investment of Rs.34,000 crore. Linkage for iron ore has not been covered in the proposed mega project. The Navayug Group is setting up a port in Astaranga with an investment of Rs.6000 crore and a 2640 mw mega thermal power plant with an investment of Rs.11200 crore in Astaranga.
Bhusan Steels Limited (BSL), which is setting up a 3.10 MTPA steel mill in Meramundali in Dhenkanal was allowed to expand it’s capacity to produce 9 mtpa with an additional investment of Rs.20,804 crore.
Reliable Sponge’s proposal to set up a 0.25 MTPA steel plant along with a 24 mw captive power plant having a total investment of Rs.227.13 crore was cleared by the Authority.
Emami Paper Mills Limited (EPML) proposal for a 1.32 lakh ton per annum Newsprint unit along with a co-generation power plant for an investment of Rs.500 crore was cleared. EPML has established a paper mill at Balasore in 1982 and the new plant will come up in the same area.
Purvi Bharat Paper & Power (PBPP) has proposed for a 33,000 TPA writing & printing paper mill at Choudwar in Cuttack district with an investment of Rs.90.50 crore.
The proposal to set up 5 mw solar park near Bhubaneswar with an investment of Rs.125 crore by Reliance Industries Limited (RIL) received clearance of the Authority.
In total, the State Level Single Window Clearance Authority (SLSWCA) on 17 March cleared the proposed investment of Rs.55,650 crore in 6 projects.
The bulk of this investment will be made in the phase-II development of its stainless steel plant in Jajpur, Orissa.
"We will spend about Rs 5,600 crore for setting up capacity of 8 lakh tonnes (0.8 million tonnes) per annum of steel in Jajpur. The plant will be commissioned by 2012," Vice-Chairman and Managing Director Ratan Jindal told journalists.
The company will borrow Rs 3,200 crore from Indian and foreign banks for the project, while Rs 1,000 crore would be raised through external commercial borrowings. Another Rs 1,200 crore would be invested through internal accruals. "The promoters will infuse equity of the balance amount of Rs 200 crore," Jindal said.
The company has already spent Rs 2,250 crore for 0.8 million tonnes capacity in phase-I at Jajpur.
JCDL is a unique public-private partnership between IDCO and Industries supported by Government of India & Government of Orissa. JCDL has been formed with the objective of undertaking infrastructure development of Steel & Metallurgical Cluster, Jajpur under Industrial Infrastructure Up-gradation Scheme of the Department of Industrial Policy & Promotion, Government of India.
JCDL was incorporated on 9.3.2004 as 100% IDCO owned. Pursuant to the restructuring proposal approved by the Industries Department, Government of Orissa vide their letter vide No. 22474 dated 24.12.2004, Kalinganagar Industries Association (KIA), an Association of industries in the Kalinganagar Industrial Complex. Jajpur has subscribed to the equity capital of JCDL. Now, KIA holds 51% equity capital in JCDL whereas the equity held by IDCO is 49%.
Department of Industrial Policy & Promotion, Government of India had approved Steel & Metallurgical Cluster development project with outlay of Rs.62.50 crores vide their letter No. 5/23/2004/DBA-1 dated 4.8.2004, which was further revised to Rs.80.60 crores vide their letter No. 5/23/1/2004/DBA-I dated 3.4.2006.
The source of funding includes GOI grant of Rs. 47 crores, Rs. 15.50 crores to be contributed by the stakeholders, and Rs.18.10 crores by IDCO.
The sub-projects sanctioned for implementation with;
Sl. No.
Project
Project Cost (Rs. in crores)
1.
Augmentation of water supply scheme
14.00
2.
Strengthening and up-gradation of Old Military road
26.00
3 .
Road development in Utility corridors
30.60
4 .
Setting up of Central Tool Room
3.00
5.
Up-gradation of power distribution infrastructure
4.50
6.
Development of common facilities centre including Information & Communication infrastructure
Kalinganagar: MESCO Steel Group plans to invest $2.8 billion (over Rs 1,000 crore) to expand its existing steel making capacity and set up a greenfield project that would together take its total capacity to 6.5 million tonnes per annum. MESCO, which owns Mideast Integrated Steel Ltd (MISL), would enhance its existing pig iron plant here into a 3.5 million tonnes steel plant with an investment of $1.2 billion, company’s Managing Director Rita Singh told reporters here.
Ms Singh said that the company would pump in $1.5-1.6 billion through joint venture route in setting up a greenfield steel plant here. The project is likely to be finalised within 2-3 months.
"We have already acquired 800 acres of land for this greenfield steel plant,” she said, adding that this project would be set up by MESCO Kalinga Steel. Both these projects would be completed by 2010-11, she said. The funds for these projects would be arranged through suppliers credit and cash equity.
… MESCO, which has become debt free recently, is also planning to ramp up its pig iron production from the current 4 lakh tonnes to 7 lakh tonnes by 2008-09. The products would be utilised by its steel plants, she said. – PTI
… the state government signing three fresh MoUs for setting up units, taking the total proposed capacity of output to 75.66 mtpa, involving a total investment of nearly Rs 2,00,000 crore, official sources said.
With this, the number of MoUs for establishment of steel units touched 49, including 11 for mega projects. Besides MoUs with the largest steel maker in the world Arcelor-Mittal and South Korean gaint Posco, the government had signed agreements with domestic firms such as Jindal, Tata Steel and others for mega projects.
All the MoUs were signed during the last six years, they said, adding 26 steel projects had already become partially operational while the mega ones were facing land acquisition problem.
The production capacity so far achieved by these companies was 3.96 mtpa in sponge iron, 0.45 mtpa of pig iron and 3.32 mtpa of steel, besides 308 mw captive power plant.
said the three companies would produce one million tonne of steel per annum.
The companies which signed MoUs are Pradhan Steel and Power Private Limited, Atha Mines Private Limited and Tecton Ispat Private Limited.
While Pradhan Steel proposes to set up a 0.50 mtpa steel plant in over 460 acre land with an investment of Rs 606 crore at Dhurusia in Cuttack district, Atha Mines would set up a 0.25 mtpa capacity unit at an investment of Rs 291.60 crore at Tarkabeda in Dhenkanal district. Tecton Ispat would set up a 0.25 mtpa steel unit over 150 acre of land at an investment of Rs 227.13 crore at Tarkebeda in Dhenkanal district.
The meeting …accepted two out of the eight project proposals.
The meeting decided that the state government would seek necessary environmental clearance from the Indian Bureau of Mines (IBM) before giving the nod to any proposal for new thermal plants in the Angul-Talcher belt.
Briefing newsmen after the meeting, industry secretary Ashok Dalwai said that state government had asked the IBM to make a detailed study on the environmental sustainability of the Angul-Talcher areas.
He said that the meeting, while discussing about the setting up of a number of thermal plants in the state also took note of the searing heat in this industrial belt during summer.
The Committee gave its nod to Jindal Photo Ltd’s proposal to enhance its power production capacity from 1,000 MT to 1,200 MT in its proposed plant at Angul.
The SLSWCC also approved the Well Spun Power and Steel Ltd’s proposal to set up its ore beneficiation and pelletisation plant at Dhamra.
The company aims to produce ductile iron and spiral iron from this plant, for which Rs 1,830 crore would be invested.
The company has asked the state government to arrange 2,000 acres of land.
The state government will scrutinise the land requirement proposal. The company had earlier inked an MoU with the state government to set up a 3-MT plant at Angul.
Non-ferrous metals giant Vedanta Resources is planning to enter the Indian steel sector with a 5 million tonne plant at an investment of about Rs 24,000 crore in Keonjhar district of Orissa and envisaging its commissioning by 2012-13.
"We are impressed at the growing consumption of steel in India and are keen to enter its steel sector. We are planning to build a 5 million tonne steel plant at Keonjhar district of Orissa. If we find a suitable partner, we should be able to commission it by 2012-13 at an investment of about Rs 24,000 crore," company sources said.
Vedanta Resources is planning to make an initial public offer (IPO) to raise $1 billion for Sterlite Energy, a subsidiary of its group company and Indian non-ferrous metals producer Sterlite Industries (India) Ltd.
"We are planning for a $1-billion IPO for Sterlite Energy in the next few months," Vedanta Resources Chairman Anil Agarwal told reporters here Wednesday.
… Agarwal said the London Stock Exchange-listed Vedanta Resources is also considering options to sell shares via a pre-IPO placement.
He added that the company plans to participate in coal-based power generation projects through the subsidiary, Sterlite Energy Ltd.
"We are looking at 10,000 MW commercial power generation by 2012," he said. The power plants are likely to be set up in Orissa and Jharkhand, he said.
The Orissa government has given administrative sanction for acquiring land at Patana tehsil in Kenojhar district for Arcelor-Mittal’s proposed 12 million tons per annum steel plant.
The company … has already deposited Rs 4.03 crore with the Industrial Development Corporation (IDCO) as processing fee for phase-I land acquisition.
The government has also appointed a nodal officer to oversee land acquisition process and other issues concerning the company’s greenfield project, said Steel and Mines Minister Padmanabha Behera.
Arcelor-Mittal is understood to have sought nearly 8,000 acres of land for the purpose and the state is believed to have agreed to the request.
The government has, however, cleared acquisition of only 1,224 acre of land spread over three villages like Angikala, Baradangua and Bhrungaraj under Patana tehsil in the first phase of land acquisition.
The 1,224 acres demarcated for the first phase acquisition comprised 431 acres of government land and 739 acres belonging to private owners.
While the government had fixed price per acre of state land at Rs two lakh, it was yet to decide cost of private land which would be fixed according to rehabilitation and resettlement policy.
Orissa Sponge Iron was incorporated in 1979. The company is promoted and managed by Industrial Promotion and Investment Corporation of Orissa Ltd and Torsteel Research Foundation India. The main Business Profile of Orissa Sponge Iron is sponge iron and steel billet.The company`s plant is located in Palaspanga in Orissa.
Orissa Sponge Iron and Steel firmed its plan for setting up of a one million ton integrated steel plant, reports Business Line.
The company is also believed to have received environmental clearance for its iron ore mines. The estimated reserves of iron ore mine is 130 million tons said to be worth on a conservative basis over Rs 750 billion.
The company has also obtained coal mining lease in the Orissa worth over Rs 100 billion.
Following are extracted from a report in the Pioneer.
the State Commerce and Transport Department, in its sanction order-29753, dated May 30, 1970, had allotted 3, 793.21 acres in the first phase and 2285.23 acres in the second phase to the Paradip Port Project. Most of the lands were obtained from Sandhakuda, Bijayachandrapur, Balijhari and Bhitaragara villages, under Kujang Tehsil. According to the official sources, about 6,889 acres of land were supplied to the Paradip Port Trust.
The State Government had provided 62.19 acres of land to the Paradeep Phosphate Ltd, which is a fertiliser plant that started its project in 1982. The PPL had acquired 405 acres of private lands from Bhitaragada village on its own.
… in Paradeep-Cuttack railway line 137 acres of land were acquired from the Bhitaragada village.
Kujang Tehsil had about 1,500 acres of Government land in the Musadiha area that was provided to the Oswal Fertiliser Plant in the year 1995-96. The plant had also purchased about 500 acres of private land from the local people.
… in 2000 Indian Oil Corporation had purchased 3,300 acres of private land from the local people of 17 villages for its refinery project, which was to be set up on the outskirts of Paradip but the project is yet to come.
for much-hyped Haridaspur-Paradip Railway Project, widening of the NH-5 and recent expansion of Cuttack-Paradip State Highway, thousands of acres of both Government and private lands have been acquired from Kujang Tehsil.
Essar, the 6 million tonnes steel plant project, moves for the land acquisition in Paradip and the project needs about 1,950 acres of land. The State Government has already given 350 acres of land to the plant. It will procure the remaining required land from private land.
Posco has shown a demand of about 4,004 acres of land in Dhinkia, Gadakujang and Nuagaon villages for its steel plant and port project. The State Government has given assurance and has provided Posco most of the encroached Government and forestlands. The rest of the required land would be purchased from private landowners.
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