Govt extends MoU term for Surendra Mining steel plant

The state government on Thursday extended the validity period of the Memorandum of Understanding (MoU) with Surendra Mining Industries (P) Ltd up to 2012. The company proposes to set up a 0.25 million tonne per year (MTPA) integrated steel plant at Bonai, in Sundergarh district.

The validity period of MoU is extended for a further period of 2 years with effect from 21 Dec 2010, said a government order regarding Surendra Mining's steel plant.

The company had signed the MoU with the state government in 2006 and the term of the contract had expired last year.

The extension of MoU is part of the Odisha government's review of MoU signed steel projects, which has been taken up twice this year after many companies failed to start their projects due to delay in land acquisition and other problems.

Out of 50 MoUs signed in the steel sector, as many as 29 companies have started partial production so far, producing 8.66 MTPA steel per annum. The government is also in the process of renewing MoU with the Korean steel major Posco, the MoU of which had expired last year.

In a separate order, the department of steel and mines has cleared Surendra Mining's proposal to acquire 51.3 acre of private land for its plant site. The company requires about 200 acre land to set up the steel plant.

The company currently has 200 tonne per day sponge iron plant at Barhamusa village in Sudergarh district and has plans to convert it into an integrated steel plant by adding mini blast furnace, steel melting shop and rolling mills. It had proposed to build the plant with Rs 221.62 crore investment in 2006.

Surendra Mining has a captive coal mine at Talcher.