Bhusan Steel has gone into production, said state steel & mines secretary Ashok Mahadeo Rao Dalwai, adding, Tata Steel and Jindal Steel & Power have made satisfactory progress in project implementation.
Bhusan has set up a 3.30 (million tone per annum) mtpa steel plant with an investment of Rs 5,828 crore at Meamundali in Dhenkanal district. Tata Steel, which signed an MoU November 17, 2004, to set up a 6 mtpa steel plant with an investment of Rs 15,400 crore at Kalinganagar Industrial Complex, near Dubri in Jajpur district, is in the process of taking the possession of the land allotted to it. The company has ordered for equipment for the project and has started the fabrication work. Most of the displaced families have been settled in the rehabilitation colony.
The company expects to start work very soon. Similarly, Jindal Steel & Power, which is setting up a 6 mtpa steel project at Angul with an investment of Rs 13,135 crore, has acquired the land for the project. The company is soon going to launch project work. The review revealed that of the 49 MoU companies, 29 have gone into various stages of production. Sponge iron making capacity of 6.18 mtpa, pig iron of 1.32 mtpa, and steel of 6.18 mtpa have been created by these units. The captive generating plants of these steel units have created power generating capacity for 1,034 mw.
The 49 MoU co would invest Rs 1,98,149.40 crore to build up a total capacity of 75.16 mtpa of steel. The cos have already invested Rs 4,664.38 crore by now. The activities in the steel sector have contributed Rs 600.41 crore to the state exchequer, and Rs 1742.55 crore to Centre exchequers as taxes. The MoU companies have contributed Rs 55.74 cr for peripheraldevelopment activities.
The review has identified that several of the 10 mega steel projects including that of Posco-India and the Arcelor Mittal are facing problems of land acquisition and linkages of mines and water. Similarly, of the 39 SME projects, 20 are facing problems due to delay in land acquisition and water linkage.