Orissa signs 3 MoUs to set up new steel units

Bhubaneswar, Jan 29 | Updated: Jan 30 2008, 04:29am hrs
The steel sector in Orissa got one more boost on Tuesday with the state government signing three fresh MoUs for setting up new units, taking the total proposed production capacity to 75.66 mega ton per annum involving a total investment of nearly Rs 2 lakh crore, official sources said.

With this, the number of MoUs for establishment of steel units touched 49, including 11 for mega projects. Besides, Arcelor-Mittal and Posco, government had signed agreements with Jindal, Tata Steel and others for mega projects. All the MoUs for steel production were signed during last six years. Sources also said 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 mega tonne per annum in sponge iron, 0.45 mega tonne per annum of pig iron and 3.32 mega tonne per annum of steel, besides 308 mega watt captive power plant.

Chief secretary Ajit Tripathy who presided over the MoU signing function, said the three companies would produce 1million tonne of steel per annum. The companies, which signed MoUs were Pradhan Steel and Power Private Limited, Atha Mines Private Limited and Tecton Ispat Private Limited.

While Pradhan Steel and Power Pvt Ltd proposes to set up a 0.50 mega tonne per annum steel plant in over 460 acre land with an investment of Rs 606 crore at Dhurusia in Cuttack district, Atha Mines Pvt Ltd would set up a 0.25 mega tonne per annum capacity unit at an investment of Rs 291.60 crore at Tarkabeda in Dhenkanal district.

Tecton Ispat would set up a 0.25 mega tonne per annum steel unit over 150 acre of land at an investment of Rs 227.13 crore at Tarkebeda in Dhenkanal district.

All the three companies would have separate captive power plants to meet their power requirements Tripathy said. He also said while Atha mines had proposed to set up 27 mega watt capacity CPP, Pradhan and Tecton would produce 24 mega watt each. All the three firms committed to complete their projects within 3 years of signing the MoUs, sources said.