Essar Steel to commission pellet unit in Odisha

Buoyed by its Hazira complex becoming the country's largest single location flat steel maker with 10 mtpa capacity, Essar Steel is set to commission a pellet unit in a week in Odisha to pave the way for setting up of its proposed 6 mtpa integrated steel plant.

"Our proposed 12 mtpa pellet plant is likely to start production in about a week in Odisha's Paradip where we want to replicate ths success story of Hazira complex," Essar Steel India's MD and CEO Dilip Oommen told visiting journalists from Odisha here.

After doubling of the capacity of Hazira complex to 10 mtpa making it the largest single location flat steel producer in the country, Essar is keen to give momentum to its Odisha project including commissioning of the pellet plant at Paradip with an initial capacity of 6 mtpa, he said.

Charging operation for the pellet plant had already been completed and the unit's capacity would be raised up to 12 mtpa within a year, Oommen said.

The next on the agenda is the setting up of a six mtpa integrated steel plant (ISP) at the same site in Paradip for which an MoU already existed, the Essar Steel MD said expressing hope that government would ensure a level playing field for both domestic and international players.

"Establishing an ISP will be the most logical move after putting the pellet plant in full steam and we hope the government would give equal treatment to both domestic and international investors while offering opportunities like mining lease and other facilities," he said.

Stating that about 1500 acres of land would be required for the purpose, Oommen said over 250 acres had already been acquired and the acquisition process was on.

The company has already spent about Rs 250 crore in Odisha.

Along with the pellet unit, Essar is also working on a corresponding 12 mtpa beneficiation plant at Dabuna and slurry pipe line in close proximity of major mining sites, he said.

During construction of the plant at Paradip and Dabuna, about 5,000 people were engaged of which 80 per cent people were from Odisha.