Steel & mines dept seeks Ipicol's views on Posco's revised plan

With Posco India seeking to rework its project configuration and intending to build its proposed 12 million tonne per annum (mtpa) steel plant in three phases instead of four, the state steel & mines department has sought the views of Industrial Promotion & Investment Corporation of Orissa (Ipicol) on the matter.

“I am directed to say that Posco India has proposed to implement the steel plant project in three phases instead of four phases. You are therefore requested to furnish your considered views in the matter to this department immediately”, A K Rath, additional secretary (steel & mines) has written to Ipicol CMD in a letter last week.

Posco India has already submitted its revised project plan in writing to the steel & mines department.

“We are glad that the state of Orissa has finally decided in favour of the renewal of the Memorandum of Understanding (MoU). In the aforesaid context, we would like to inform you that we have reworked the schedule for implementation of the 12 mtpa integrated mega steel plant. Now, we propose to implement the project in three phases as against the earlier proposal for implementation in four phases. We request you to take note of the above change for the renewal of the MoU”, Gee Woong Sung, managing director, Posco India said in a letter to secretary (steel & mines).

Each phase would now comprise of four million tonne of steel output. In Phase-I, Posco intends to build two Finex plants, one caster and one mini flat mill at a cost of Rs 13,000 crore.

Phase-I is expected to be commissioned within 36 months from the date of starting of plant construction or grant of first mining lease, whichever is later. In this phase, the steel maker would produce slabs (1.5 million tonne) and hot rolled coils (2.5 million tonnes).

In the second phase, Posco India aims to develop two Finex plants, one mini flat mill and one plate mill entailing an investment of Rs 13,500 crore. This phase is expected to be commissioned in 36 months from commissioning of Phase-I or grant of second mining lease, whichever is later. In the second phase, the company will roll out finished products like slabs (one million tonne), hot rolled coils (five million tonnes) and plates (two million tonnes).

In Phase-III, Posco India would build two Finex plants, one caster, one hot rolling mill and a cold rolling mill at a cost of Rs 16,800 crore. The third phase is set to be commissioned within 36 months from the commissioning of Phase-II or grant of third mining lease, whichever is later. In the third phase, Posco India will produce slabs (one million tonne), hot rolled coils (seven million tonnes), plate (two million tonnes) and cold rolled coil (two million tonnes).