Allot iron ore mine: JSPL to Orissa

Written by Dilip Bisoi | Bhubaneswar | Updated: May 27 2011, 01:44am hrs
The Jindal Steel & Power Ltd (JSPL), which is all set to commission its 2 million tonne steel plant next month, is desperately looking for iron ore linkage.

JSPL vice-president and managing director Naveen Jindal urged Orissa chief minister Naveen Patnaik for allotment of a captive iron ore mine for the plant.

Jindal met the Orissa CM on Tuesday and discussed the steel project and the captive power plant.

Sources in the government told FE that the JSPL managing director has requested the chief minister Naveen Patnaik to ensure raw material security for the plant through suitable iron ore concession.

JSPL, which signed an memorandum of understanding (MoU) with the state government in November 2005 to set up a 6 million tonne steel plant and a 810 mw captive generating plant (CGP) with an investment of Rs 22,742 crore, is all set to commission the first phase of 2 million tonne steel plant and the second unit of the CGP in June. The CGPs first unit of 135 mw has already been synchronised in March 2011.

Jindal said the 6 mtpa capacity of the plant is going to be achieved by 2013. He said the financial closure for the project had been achieved on September 21, 2009.

According to him, the steel plant which is coming up at Nisa in Angul district is going to be Indias biggest steel plant with the capacity expansion to 20 million tonne over the next few years.

Navin Jindal also thanked the CM for according Grant Order for the allocated Utkal B1 coal mines and recommending the coal to liquid (CTL) project of the JSPL to the Centre.

JSPL is setting up the steel project and the CGP on an area of 4,328 acres at Nisa and an iron ore beneficiation plant at Deojhar in Keonjhar district. The company to generate 1,004 jobs directly and 14,000 indirectly in these projects. Besides, the company is also proposing to set up a CTL project with an investment of Rs 40,000 crore in Angul district.