Odisha rapped for steel projects delay

Says projects proposed by Posco, Tata Steel delayed

The Union steel ministry has vented its displeasure over the sluggish pace of execution of steel projects in Odisha, hinting that slow pace of progress of such projects in the state, which has an abundance of raw materials, can derail growth of the sector.

Coming to the rescue of steel investors who have been battling a host of hurdles to push ahead their projects in the state, the ministry held the projects are delayed due to pending statutory approvals, non-availability of raw material linkages, issues related to land acquisition and law and order problems.

“It is imperative that the steel sector continues to grow at a pace in the country as a whole and more particularly in your state which has been blessed with an abundance of raw materials required by this industry. I shall be grateful if you could please look into the matter personally and give suitable instructions to the concerned for expediting resolution of the issues involved for early execution of the projects,” DRS Chaudhuri, Union steel secretary wrote to Odisha chief secretary B K Patnaik.

Chaudhuri pointed out that steel production in the country has been unable to keep pace with consumption and consequently, the country from a position of net exporter of steel, has become a net importer.

The steel ministry has identified eight steel projects in Odisha suffering from delay- Posco India, Tata Steel, Essar Steel, Visa Steel, Jindal Steel & Power Ltd (JSPL), Uttam Galva Steel Ltd, Monnet Ispat & Energy Ltd and Amtek Metal & Mining Ltd.

Posco India has proposed a 12 million tonne per annum (mtpa) greenfield steel project near Paradeep on 4,004 acres of land. Out of this, the proponent needed 2,700 acres of land in the first phase to build an eight mtpa capacity plant. Though the government has acquired the land, it is yet to hand over the full land to the company. Also, the extension of memorandum of understanding (MoU), which lapsed in June 2010, is pending.

For Tata Steel’s six mtpa steel plant coming up at Kalinganagar, renewal of existing mining leases and grant of fresh leases is pending at the state government level.

JSPL, too, is awaiting allocation of captive iron ore mines for its six mtpa integrated steel plant coming up near Angul. The state government is yet to grant permission to execute mining lease to Utkal B-1 coal block to the company. JSPL which intends to invest Rs 29,285 crore on the steel project, has already commissioned two mtpa capacity and work for setting up of balance four mtpa capacity is going on a fast pace.

Uttam Galva is also awaiting allotment of land for its three mtpa steel project at Keonjhar. Of the total land requirement of 2,200 acres, only 600 acres has been allotted and the rest 1,600 acres is still pending for allotment.