Tata Steel to start Orissa operations by June 2008

Written by Alok Sharma | New Delhi, Mar 5 | Updated: Mar 6 2008, 04:42am hrs
Tata Steel plans to start construction of its 6 million tonne (MT) steel green plant at Kalinganagar (Orissa) in June 2008 and the company is awaiting delivery of advanced equipment worth Rs 4,500 crore anytime now. Tata Steel is hopeful that the issues relating to mining leases of iron ore required for backward linkages would be resolved by the time production process starts.

The company intends to produce 3 million tonne of hot rolled steel by 2011 and would increase the capacity to 6 million tonne subsequently. We are in the process of vacating the land and are hopeful that construction should begin by June this year, vice president, corporate services at Tata Steel , Partha Sengupta told FE on the sidelines of a summit on mining to steel making jointly organized by the ministries of steel and mines and Indian Chamber of Commerce.

The state government (Orissa) has already allotted about 2,000 acres of land to the company, which has been registered in favour of Tata Steel. Meanwhile the project office at site has initiated the construction of the boundary wall and other preparatory works at Kalinganagar industrial complex. When asked about the other green field projects in the states of Chhattisgarh and Jharkhand, Sengupta said, for the plant in Chhattisgarh, the company is in the process of acquiring land and should being construction work in the next six months time.

The situation in Jharkhand is, however, different from the two states of Orissa and Chhattisgarh, he said adding that the state does not have an R&R policy and in the absence of the benchmark document it would be difficult to work on compensation package for the displaced.

The greenfield projects have already been delayed by about 12 to 16 months due to issues such as land acquisition and resettlement. The company plans to invest about Rs 90,000 crore in the three projects.