Phase-I of Orrisa project likely by Jan 2014: Tata

Tata Steel today said the first phase of its Orrisa plant with 3 million tonne per annum capacity might go on stream by the beginning of 2014.

"The first phase of the project is expected to be commissioned by January 2014. This phase will have a 3 million tonne per annum crude steel capacity feeding hot and cold rolling mills," the domestic steel major said in its annual report.

The second phase with an annual capacity of 3 million tonne would be completed by March 2015, it added.

Tata Steel has already embarked on setting up a 6 million tonne per annum greenfield facility at Kalinganagar in Orrisa. It would produce premium flat and value-added products and supplement the production capacities of its Jamshedpur plant.

"Demand for superior quality flat products in India is rising. The Kalinganagar project will complement Tata Steel's existing production facilities through production of premium grades like Auto-Advanced High Strength Steel, high-end galvanised coil and cold rolled coil for general engineering," it said.

Tata Steel said work on the site was already underway and the boundary wall around it had been completed.

"Construction road and site grading work is under progress. Piling and other civil work in the Sinter plant, blast furnace and steel melting shop areas has also begun," it said.

The project has received all necessary statutory clearances from the relevant regulatory authorities to set up the plant.

"The construction site at Kalinganar is being connected via rail linkages to the nearest railway station and the Dhamra Port to enable efficient transfer of raw material and finished products once the plant is operational," it said.

Tata Steel said the power requirement for the project would be met through two captive power plants to be set up by Industrial Energy, a joint venture between Tata Steel and Tata Power.

Tata Steel's Jamshedpur plant has 6.4 million tonne capacity now. The capacity is currently being expanded to 9.7 million tonne, which would be commissioned in the current fiscal.