According to state steel & mines minister Haldhar Karji, Orissa received proposals from 16 firms to set up steel plants. Nine projects were proposed at Dubri in Jajpur district, while two were planned at Gopalpur in Ganjam district. Three plants were supposed to be located at Nayagarh-Belaipada in Keonjhar district and one each at Bamra in Deogarh and Angul. The minister said the promoters of five projects had signed MoUs with the state government for the projects.

Karji said the Tatas and L&T, who are proposing to set up port-based steel plants at Gopalpur have kept on hold their projects on the plea that the infrastructure is not ready. Both Tata and L&T are waiting for the Gopalpur Port, railway projects and the water reservoirs to come up for going ahead with their projects. L&T has not taken steps torevive its MoU which expired on December 19, 1998. It has requested the state government to stop land acquisition for the time being.

The Mesco-Kalinga Steel Ltd, which took advance possession of 1747 acres of land near Dubri and took the lease of the iron ore mines, has kept in hold its project till the completion of its Mideast Intergated Pig Iron project at the same site. The company has expressed its inability to finance the project at this stage.

Ganapati Exports Ltd, which had signed an MoU with the state government on September 5, 1995 has withdrawn from the project. Similarly, Uttam Steels Ltd is not showing any interest in promoting the steel project for which it signed the MoU on July 15, 1997.

However, the Nilachal Ispat Nigam's steel project is coming up fast at Dubri, the minister said. According to him, the MMTC-Ipicol promoted project has tied up the loans. He said the pig iron project of Mideast Integrated Steels Ltd. is almost completed with 90 per cent of the project workexecuted.

Stating that the promoters require Rs 7.5-crore to start production in the plant, Karji said the state government has arranged the funds for the project.