Panel to decide BF-sponge mix for steel making

The Orissa government has constituted a committee under the chairmanship of the Development Commissioner (DC) to determine the mix between the blast furnace and the sponge iron route for production of steel in the state.

The committee comprises of secretaries of forest and environment, industries, steel and mines departments along with representatives from the Orissa State Pollution Control Board (OSPCB). The first meeting of this committee is likely to be held soon, sources said.

The State Level Single Window Clearance Authority (SLSWCA), in its 29th sitting in August this year, had taken a decision to this effect.

The latest decision of the government assumes importance as 25 proposals including expansion of capacity are pending for approval before the Industrial Promotion and Investment Corporation of Orissa Ltd. (Ipicol), the state level nodal agency for investment promotion.

Sources said, with the total steel production in the state estimated at 7.1 million tonne, the production through the blast furnace route is about 5.37 million tonne. Some projects, for which blast furnace route was approved, are still continuing to make steel through the sponge iron route.

It may be noted, the state government has signed memorandum of understanding (MoU) with 49 steel companies envisaging combined investment of about Rs 1,98,000 crore to produce about 79 million tonne of steel, which is projected to be about 26 percent of the total projected 293 million tonne steel production in the country by 2019-20.

With 28 steel companies starting partial production in the state, the state government expects the crude steel production in Orissa to reach 45 million tonne by 2011-12. If attained, this will be about 38 million tonnes more than the present production of about 7 million tonne.

Meanwhile, efforts are on to formulate a state specific steel policy and the concerned department has asked Ipicol to appoint a consultant to assist and guide it in the matter.