Steel projects to go under scanner yet again

Steel projects proposed in the state are set to go under the scanner yet again as the state Chief Secretary will review the status of major steel projects on August 5.

The state had attracted investments to the tune of Rs 2.13 lakh crore in the sector and had inked MoUs (Memorandum of Understanding) with 50 players. Investments worth Rs 56,090.34 crore have been grounded in the steel sector as on March 31, 2011.

Earlier, the steel & mines department had taken a review of all the MoU signed steel projects on April 19.

As many as 29 steel firms have started partial production, achieving a steel capacity of 8.66 million tonne per annum(mtpa) out of the total envisaged capacity of 83.66 mtpa and Captive Power Plant (CPP) generation of 1069 MW.

The steel sector has hitherto generated an overall employment for 75,681 people which includes direct employment for 23,361 persons and indirect employment opportunities for 52,320 others. While 54841 people have been recruited from Orissa, the balance 20,840 have been hired from outside the state.

Among the companies that have made major investments are Jindal Steel & Power Ltd (Rs 11,283 crore), Bhusan Power & Steel Ltd (Rs 7,000 crore), JSL Ltd (Rs 5,367.59 crore), Essar Steel (Rs 5,077 crore), Tata Steel (Rs 1,818.12 crore), Adhunik Metaliks Ltd (Rs 1,740 crore) and Brahmani River Pellets Ltd (Rs 1,430.65 crore).

Posco India has invested Rs 329.15 crore while ArcelorMittal is yet to make any investment on its greenfield steel project. Other steel investors who are yet to invest anything are Amtek Metal and Mining Ltd and Deo Mines & Mineral Ltd.

While Bhusan Steel has been the biggest employer so far, generating 14,868 jobs, other MoU signed steel firms who have created significant number of jobs are JSPL (8,597), Bhushan Power & Steel Ltd (7,359), JSL Ltd (6,804), Visa Steel (5,070), Adhunik Metaliks (3,479), Shyam Metalic & Energy Ltd (3,236), Essar Steel (2,627), SMC Power Generation Ltd (1,484) and Action Ispat & Power Ltd (1,391) to name a few.

The steel units that have kicked off partial production are mostly the small and medium players, including Aarti Steel Ltd which has achieved a capacity of 0.25 mtpa, Adhunik Metaliks Ltd (0.26 mtpa), SMC Power Generation Ltd (0.25 mtpa), Sree Metalicks Ltd (0.28 mtpa), OCL Iron & Steel Ltd (0.08 mtpa) and MSP Metaliks Ltd (0.12 mtpa).

Orissa through its nodal agency for land acquisition, Industrial Infrastructure Development Corporation of Orissa Ltd (Idco), has alloted 20,684.06 acres of land to steel companies that have signed MoU with the state.