Steel makers invest Rs 91,656 cr in Odisha

Rs 27,439 crore investment grounded in power sector

Steel makers that have signed memorandum of understanding (MoU) with the Odisha government have so far invested Rs 91,655.86 crore, nearly 46 per cent of the total investment of Rs 1.98 lakh crore envisaged in the sector.

In a written reply to the state assembly, industries minister Niranjan Pujari said, Bhushan Power & Steel Ltd has invested the highest amount of Rs 25,000 crore in Odisha. The company has built a 2.4 million tonne per annum (mtpa) steel mill and 248 Mw captive power plant (CPP) at Sambalpur.

Another Bhushan Group firm- Bhushan Steel Ltd has invested Rs 21,817 crore . The company’s three mtpa integrated steel plant is in operations at Meramundali near Dhenkanal. The company’s MoU which expired on December 31, 2008, has been recommended for extension by Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol).

The other major MoU signed steel player to have commenced operation is Jindal Stainless Ltd (JSL). It has invested Rs 6,771 crore in its Odisha project which comprises of a 1.6 mtpa stainless steel plant, 1.6 mtpa hot rolled coil unit and 253 Mw CPP at Kalinganagar. Similarly, Visa Steel has operationalised a 0.55 mtpa steel plant, also within the Kalinganagar complex and 75 Mw CPP at a cost of Rs 3,088.55 crore.

In all, 49 steel players had signed MoUs with the state government of which 30 have started production on a partial scale. A large chunk of investments have flown from small and medium scale firms with steel making capacity of below one mtpa. In total, these companies have achieved a combined steel output of 12.66 mtpa.

The small scale steel players to have started operations  are Adhunik Metaliks Ltd, Narbheram Power & Steel Ltd, SMC Power Generation Ltd, Maheswary ispat and Aryan Ispat & Power Ltd to name a few.

Other MoU signed companies with substantial investments include Tata Steel (Rs 6,240 crore), Essar Steel Odisha Ltd (Rs 4,283 crore), Jindal Steel & Power Ltd (Rs 2,646.87 crore), Visa Steel (Rs 3,088.55 crore) and Adhunik Metaliks Ltd (Rs 2,100 crore). Separately, independent power producers (IPPs) have invested Rs 27,438.81 crore on their proposed power projects in the state, according to the minister's written reply. Of the 29 IPPs that have inked MoUs with the state government, only three- Sterlite Energy Ltd, Aarti Steel Ltd and GMR Kamalanga Energy Ltd have commissioned their units. Land acquisition is pending for most of the power project developers.