Jindal Steel & Power seeks mining lease for Angul steel project

The Jindal Steel and Power (JSPL),setting up a 6 million tonne per annum steel plant at Angul at an investment of Rs 15,000 crore, has sought the support of the Orissa government for the project by way of recommendation of iron ore mining lease (ML) in its favour.

The company claimed it has fulfilled all the conditions required for recommendation of the ML.

Naveen Jindal, the executive vice chairman and managing director, JSPL, today called on the industry secretary, Ashok Dalwai in the state secretariat and discussed the progress of the project.

During the discussion, Jindal urged the state government to recommend its case for the mining lease to the Centre since the company has fulfilled all the stipulation required for initiation of the process. While the company has placed orders for equipments and machineries worth Rs 4617 crore, it has achieved the financial closure for the project.

“JSPL has achieved the financial closure for its steel project and urged the government to recommend its case for issue of the ML”, Ashok Dalwai, secretary, industries, Orissa government said.

Sources said, the company is not facing any problem in the acquisition of land for the project as the proposed site mostly consisted of barren land.

While JSPL has already acquired 2346 acres of land out of the required 5500 acres, it has deposited Rs 198 crore with the state owned Industrial Infrastructure Development Corporation (Idco) for acquisition of the remaining land.

Talking to the media after meeting with Dalwai and other senior officials of the Orissa government, Jindal said, the company hopes to commission the first phase (3 million tonne) capacity at Angul by December 2010. “The company is getting excellent co-operation from the public and there is no problem for land acquisition”, he said.

On the possible impact of the global slowdown, Jindal said, it will not have any impact on its investment plans in Orissa. “ The slowdown will not have any impact on our industries, rather we will take advantage of the situation as equipments and materials are now cheaper and contractors are readily available”, he added.

The company is investing about Rs 15,000 crore in the facility and additional Rs 5000 crore is proposed to be invested for setting up of a 1500 Mw power plant. The company had earlier proposed to set up a two million tonne steel plant in the state, but later ramped up the capacity of the project to 6 million tonne.