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| Vedanta plans steel plant in state with L&T |
| BS Reporter / Kolkata/ Bhubaneswar Jan 23, 2010, 00:51 IST |
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After committing an investment of Rs 60,000 crore on various projects in Orissa including an aluminium smelter plant, an alumina refinery unit and a mega university project, London-based Vedanta Resources Plc has now evinced interest in setting up a steel plant in the state.
Vedanta plans to set up the steel plant in collaboration with engineering and construction major Larsen and Toubro (L&T).
“We are in advanced stage of negotiations with L&T for building a steel plant in Orissa. Vedanta, L&T and the Orissa government will enter into a tripartite agreement for this steel plant”, Anil Agarwal, chairman Vedanta resources told reporters after emerging out of a meeting with the state chief minister Naveen Patnaik at the state secretariat.
However, he did not provide details like capacity of the proposed steel plant, location and investment. It may be noted that in October 2004, Sterlite Iron and Steel Company, a subsidiary of Vedanta Resources, had inked an MoU (Memorandum of Understanding) with the state government for setting up a five million tonne per annum steel plant. The steel plant was to set up at Palasponga in the state's Keonjhar district at an investment of Rs 12,502 crore. However, the project is yet to take off.
On bauxite supplies, Agarwal said, he has informed the state chief minister that Vedanta's alumina refinery plant at Lanjigarh in Kalahandi district is operational and the company is sourcing bauxite from other states to run this refinery.
The chief minister has assured that us that bauxite supplies would not be a problem in Orissa which has the fourth largest deposits of the mineral ore in the country, Agarwal informed.
He further said the company is adhering to the environmental norms in running the Lanjigarh refinery, adding, “Our refinery at Lanjigarh is a world class refinery and it is a zero discharge and zero waste unit. The Supreme Court has cleared this refinery plant and the Union ministry of environment and forests is also in favour of the project.”
He pointed out that the company would commence mining operations at Niyamgiri hills in Kalahandi district after getting the environmental clearance.
Agarwal said, Vedanta has already invested Rs 39,000 crore on various projects in Orissa and these projects have generated direct and indirect employment for about two lakh people.
Vedanta Aluminium has also decided to set aside five per cent of its net profit or Rs 10 crore every year on welfare activities of the tribals of Lanjigarh. The amount will be spent on meeting the needs of the tribals in areas like education, livelihood and health.
The company will also build the hostel for the proposed engineering college of the state government at Bhawanipatna.
On the 2400 MW (6x400) power plant at Jharsuguda, Agarwal said, the first unit of the independent power project (600 MW) will be operational from the ensuing summer.
Talking on the company's proposed university project, he said, “We have huge local support for our university project and at first we will set up a 1000 bed state-of-the-art hospital as a part of the project.” Apart from the 1000 bed hospital, Vedanta has also firmed up plans to set up a 100-bed burn and trauma care centre at Gangapada on the outskirts of the city. Construction work on this centre wold take off very soon, Agarwal stated.
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