Altrade Iron & Power to set up 1.2 mtpa pellet project in Odisha

Pellet plant with 20 Mw CPP to cost Rs 670 cr

Altrade Iron & Power Ltd, a firm owned by the Altrade Group with interests in mining, logistics and real estate, has proposed to set up 1.2 million tonne per annum (mtpa) pellet plant along with 20 Mw captive power plant (CPP) at Baliarpur in Bhadrak district.

The company has lined up an investment of Rs 670.56 crore for the project and is awaiting the nod of the State Single Window Clearance Authority (SLSWCA).

The Altrade Group has four mining leases in Odisha controlled by its three group firms- Indrani Pattnaik, D R Pattnaik and Tarini Minerals. While Indrani Pattnaik and D R Pattnaik own the Unchabali iron ore and manganese ore mines respectively, Tarini Minerals is the leaseholder of Deojhar iron ore mines and Joruri iron ore and manganese ore mines. The four mine leases put together have a combined production capacity of 12 mtpa.

As iron ore fines in the state are getting stacked up due to tepid demand from the local end-use units and also restriction imposed on miners to supply at least 50 per cent of their mined iron ore to such units, the mine owners are increasingly looking at pelletisation. By the end of August this year, 46.52 million tonne of iron ore fines had piled up at the mine lease pitheads.

In the past couple of years, the state has attracted a host of proposals from standalone miners to set up pellet projects.

Recently, the SLSWCA had cleared a proposal by Aditya Birla Group owned Essel Mining & Industries to set up 1.2 mtpa pellet plant at Nuagaon under Koira mining circle in Sundargarh district. The project is to be set up at an investment of Rs  379.68 crore.

The SLSWCA had also approved in principle a proposal of SSAB Energy & Minerals Ltd to set up five mtpa iron ore benefication plant, three mtpa pellet plant and 0.42 mtpa at Dhanurjaypur under Haromoto block in Keonjhar district at a cost of Rs 134 crore.

In addition to this, Sushant Minerals Pvt Ltd has evinced interest in putting up a 1.2 mtpa iron ore pelletisation plant at Sana Indupur and Bada Indupur in Koira circle at an investment of Rs 220 crore. Though the amount of conversion of fines into pellets lower in Odisha compared to its production, it has picked up recently as many firms have shown interest to produce pellets. Currently, Jindal Steel and Power Ltd (JSPL), Brahmani River Pellets Ltd (BRPL), Essar Steel and Bhushan Steel and Power Ltd are engaged in production of pellets with a combined annual capacity of 18 million tonne.