Vedanta to ink pact with Orissa for steel plant today

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Non-ferrous metals giant Vedanta Resources would enter into an agreement with the Orissa government on Friday for the setting up of 5 million tonne steel plant near Palaspanga in the Keonjhar district. Orissa chief minister Navin Patnaik and the Vedanta chief Anil Agarwal would be present on this occasion.

Vedanta, which is the holding company of Sterlite Industries, has proposed to form a company, Sterlite Iron & Steel Company for the project, which is estimated to cost Rs 12,500 crore. Apart from the steel plant, the project would involve developing iron ore mines.

Orissa government sources told FE that Sterlite Iron & Steel would be a joint venture between the Vedanta group and Volcan Investments, Vedanta’s holding company. The project is estimated to generate 8,000 jobs.

Mr Agarwal during his meeting with the Orissa chief minister in August had expressed his group’s desire to set up steel plant in Orissa.

The project would be fully integrated and the final output would range from hot rolled and cold rolled coils to long products. MN Dastur & Co had prepared the feasibility study of the project.

For five million tonne capacity, the company would need about 500 million tonne of iron re reserve for which it is expected to apply for the necessary mining lease