Nine projects worth Rs 1.36 lakh cr cleared

Continuing the investor friendly momentum in Orissa, the High Level Clearance Authority (HLCA) of the state government chaired by Chief Minister Naveen Patnaik on Wednesday cleared nine projects worth Rs 1.36 lakh crore.

Two ambitious Coal-to-Liquid (CTL) projects promoted by Jindal Synfuels Ltd, a subsidiary of Jindal Steel & Power Ltd (JSPL) and Strategic Energy Technology Systems Ltd, a joint venture of Tata Group and South African firm Sasol got the nod of the HLCA. Orissa is the first state where these two CTL projects will be implemented. Both the CTL projects have been allocated coal blocks by the Government of India.

Similarly, L&T Dubal's Rs 30,000-crore alumina refinery cum aluminium smelter plant also got the green signal of HLCA. L&T Dubal, a joint venture of L&T and Dubai Aluminium received a rather belated approval for its project after waiting for over six years. The three million tonne per annum alumina refinery project was to come up in Rayagada district on about 4,000 acres of land.

"The HLCA has also approved policy guidelines on increasing efficiency of sponge iron units and blast furnace based steel plants as well as the state's share of power from coal washery based power plants", state Chief Secretary B K Patnaik after the high-level meeting.

Commenting on impact of these projects on the environment, he said, "We have conducted carrying capacity studies for the Ib-valley and Talcher industrial belts. The environment carrying capacity study for the Kalinga Nagar industrial cluster is in the offing".

Elaborating on the policy guidelines, T Ramachandru, principal secretary (industries) said, "The HLCA has decided that no new standalone project of a sponge iron unit will be allowed. For steel capacity of 0.6 million tonne per annum (mtpa) to 1.5 mtpa, both blast furnace and DRI (direct reduced iron) routes will be allowed whereas for steel capacity of three mtpa and beyond, higher technologies have to be employed".

"It has also been decided that power plants based on coal washery rejects have to provide 33 per cent free power to the state. Besides, the government will set a higher water tariff for firms setting up coal washeries in the state", he added.