Tata Steel to start work on Orissa project soon

Tata Steel today said work on its Rs 21,000-crore Kalinganagar project in Orissa, which is already delayed by four years due to stiff resistance from locals over the issues of displacement and rehabilitation, is likely start next month.

The country's largest private sector steel maker has been planning to build a six-million tonne per annum steel plant at the Kalinganagar Industrial Complex in Jajpur district of the East Cost state since 2004. But due to land acquisition problems, the project could not get off so far.

"We have received 80 per cent of the required land from the state and the balance will be received soon. We will start construction work next month," Tata Steel corporate affairs and communications head Sanjay Chowdhary told PTI over phone.

"The company has already placed orders worth Rs 6,373 crore for equipment and civil structures for the project. The first consignment of equipment for the steel melting shop has already reached Kalinganagar from Germany recently," Chowdhary informed.

"More equipment will arrive in the next three-four days," he said, adding over Rs 500 crore of equipment will reach the site before the end of this fiscal. At least 11 consignments of equipment and machinery worth Rs 200 crore for the project have already arrived," he said.

On rehabilitation and land acquisition, Chowdhary said, "We have already shifted around 807 out of the 1,195 families and are in talks with the locals to rehabilitate the remaining families."

The world's sixth largest steel producer had signed a memorandum of understanding with Orissa way back in November 2004 for setting up an integrated steel plant at Kalinganagar.

The steel project ran into rough weather after 14 people were killed in police firing on January 2, 2006 while opposing the construction of the plant's boundary wall.