ARSS plans 3 Mt steel plant near Angul

ARSS Ltd, a leading infrastructure company, plans to set up a three million tonne steel plant near Boinda, about 45 Km from Angul at an estimated cost of Rs12,000 crore.

The project, to come up under the banner of ARSS Steel and Power Ltd, will use the coal gasification and DRI route to produce steel.

“Using coal gasification technology, we will produce gas based DRI which will then be fed into electric arc furnaces to make steel”, said Sunil Agarwal, chief executive officer of ARSS Ltd.

The company requires 1200 to 1800 acres of land at the identified location for the project.

The company has recently submitted a proposal in this regard to the state government and this is being vetted by the Industrial Promotion and Investment Corporation of Orissa (Ipicol). The company hopes to sign a MoU with the government for the project soon.

The project will initially produce long products, TMT bars and other structural steel. ARSS being an infrastructure company will use a part of the product in-house and sell the rest in the open market.

The company intends to fund the project on a debt equity ratio of 80: 20. Once the MoU is signed, steps will be initiated to tie up the funds, Agarwal said. Simultaneously, the company will start the process of applying for iron ore mines and coal block, he added.