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Sajjan Jindal-owned JSW Steel is set to redraw its project design for the mega steel plant proposed in Odisha near Paradip. The company is now keen on 12 million tonnes per annum (mtpa) instead of 10 mtpa mill proposed initially.
"JSW Steel has of late evinced interest to set up a higher capacity steel plant. They have not elaborated on the reasons to go for 12 mtpa project or the technology they are going to introduce," said a senior government official with direct knowledge of the matter.
An e-mail questionnaire sent to the JSW Steel went unanswered.
Sources close to the development said: JSW Steel has initiated talks with some overseas companies for some technology collaboration for the Odisha project. The top steelmaker is likely to opt for Corex technology for its proposed Odisha steel plant.
The reconfigured project plan with the use of upgraded technology means JSW Steel would settle for a smaller patch of land for the steel mill. Even the Odisha government is not prepared to allot more than 2,700 acres of land- the same patch of land acquired earlier for the now-shelved Posco project, to JSW Steel. In its project proposal submitted to the state government, JSW Steel had asked for 4,500 acres of land for the steel project and associated facilities. It sought the same land which the state-owned Odisha Industrial Infrastructure Development Corporation (Idco) procured from betel vine growers and other farmers. JSW Steel had asked for the transfer of all land parcels at the rate of Rs four lakh per acre.
"The state government cannot provide more than 2,700 acres of land for the JSW project. We don't think the land would be insufficient for the company as they would make use of the latest technology," said the official quoted earlier.
JSW Steel has pledged an investment of Rs 50,000 crore on the steel project and associated facilities. The steel plant is expected to go on stream in four years from zero date and when fully operational, it will create jobs for around 50,000 people. To optimise raw material costs, JSW Steel has committed an investment of Rs 3,700 crore on a slurry pipeline for transporting 30 million tonnes of iron ore each year from Joda to Paradip. Both the projects have been approved by the High-Level Clearance Authority (HLCA), the highest body to clear investments.
To secure iron ore supplies for its integrated steel project, the company has pitched for a long-term agreement for 50 years with state-owned Odisha Mining Corporation (OMC) to supply 30 million tonnes per annum of iron ore fines at IBM (Indian Bureau of Mines) declared price.