Steel Secy to review big ticket projects tomorrow

The secretary will discuss with Odisha chief secretary and other officials of steel and mines dept about problems faced by the big ticket projects

Union steel secretary Rakesh Singh will discuss with officials of the Odisha government tomorrow about fate of big ticket investments in steel sector in the state such as Posco, Tata Steel and Steel Authority of India Ltd (SAIL).

His visit assumes significance after both prime minister, Narendra Modi and chief minister, Naveen Patnaik expressed their support to the proposed mega steel plant of Posco, which has remained a non-starter since signing of Mou with the state government nine years back. Poosco proposed to set up a 12 millin tonne steel plant near Paradip.

The company has not received 2,700 acre land demanded by it for start of work on first phase of the project comprising eight million tonne steel capacity, nor it has received mining rights for Khandadhar iron ore mines in Sundergarh district.

The state government has recently sent a proposal to the Center for allocation of 2,083 acre of mining area to Posco. Sources said, Posco will deposit the balance money for land required for the steel plant, only after getting the prospecting license for Khadadhar iron ore mines.

During the meet, Singh will discuss with Odisha chief secretary, Gokul Chandra Pati, and other officials of steel and mines department about problems faced by the big ticket projects, which are key to 'Make in India' campaign of the central government. Apart from Posco, issue of Tata Steel Kalinganagar plant and SAIL plant at Rourkela will also be discussed. Tata Steel will complete the first phase of its Kalinganagar plant comprising 3 million tonne steelmaking capacity sometimes next year and SAIL has already completed major part of its second phase expansion at Rourkela

Ahead of Singh's visit, the state government has taken action against Jindal Stainless Steel, by shutting down its two units - cold rolling plant and coke oven unit at Kalinganagar, citing violation of pollution control norms. These issues along with long term raw material supply problems of steel plants operating without captive mines will also be taken up during the review, sources added.