Tata Steel expects to resume work in Orissa

"Our greenfield project in Kalinga Nagar is in good shape and we hope to start the construction work by the end of this month. We have already placed orders for construction equipment worth Rs 6,000 crore and these equipment will be sourced from China and Germany and also from the domestic suppliers", said B Muthuraman, managing director of Tata Steel.

He was talking to reporters on the sidelines of the inauguration of the Institute of Mathematics and Applications at Andharua, on the outskirts of Bhubaneswar.

Construction work of the greenfield steel project at Kalinga Nagar was delayed due to resistance from the local tribals.

The steel major has so far shifted over 700 families out of the total 1,200 families who are to be ousted by the greenfield project.

The six million tonne per annum integrated steel plant at Kalinga Nagar will be taken up in two phases and the project cost is estimated at Rs 20,000 crore.

The Kalinga Nagar steel project would contribute Rs 2,200 crore every year to the government exchequer besides providing direct and indirect employment to about 20,000 persons.

Asked about the progress of the Special Economic Zone (SEZ) being developed by Tata Steel in Gopalpur, Muthuraman said, "For the SEZ project in Gopalpur, there are issues relating to the contiguous nature of the land but we hope to resolve them."

The multi-product SEZ in Gopalpur is being developed by Tata Steel in partnership with the Orissa government on area of 3,000 acres.