The Sajjan Jindal-led JSW Steel has formed a wholly owned subsidiary- JSW Utkal Steel Ltd- to fast-track the implementation of its 12-million-tonne crude steel plant and other inter-linked projects in Odisha.
The steelmaker has committed an investment of Rs 55,000 crore on a number of projects, including the integrated steel mill, the 900-megawatt (Mw) captive power plant, the 32-million-tonne pellet unit, a captive port and a slurry pipeline to transport iron ore concentrates from Joda to the project site proposed near Paradip.
A source close to the development said JSW steel, in its board meeting, resolved to carry out the implementation of projects in Odisha through the subsidiary company. JSW Utkal Steel Ltd has been incorporated with the Registrar of Companies (RoC).
While the port-based steel plant was initially proposed to be developed by JSW Steel, another group company JSW Infrastructure got the clearance to build the slurry pipeline.
“JSW Steel has requested the state government to transfer all clearances and approvals to JSW Utkal Steel Ltd. They have submitted the annual reports, annual returns, Articles of Association and board resolution of both the companies,” said an Odisha government official.
The state government said that it is currently examining the submitted papers.
JSW Steel had originally proposed to set up a 10-mtpa shore-based steel plant in Odisha. It had asked for 4,500 acres of land for the steel mill. Later, the company submitted a revised project plan, seeking a higher capacity steel project.
With the reconfiguration of its proposed project expected to see the use latest technology, JSW Steel is likely to settle for a smaller land parcel measuring 2,700 acres.
The Odisha government is set to hand over the land that was initially acquired by Posco for a 12-mtpa steel project.
JSW Steel had requested to be allotted the same land that was procured from betel vine growers and other farmers by the state-owned firm Odisha Industrial Infrastructure Development Corporation (Idco). The steel firm had asked for the transfer of all land parcels at the rate of Rs 4 lakh per acre.
For optimising raw material costs, JSW Steel has committed an investment of Rs 3,700 crore on a slurry pipeline for transporting 30 million tonnes of iron ore each year from Joda to Paradip. Both the projects have been approved by the high-level clearance authority (HLCA), the highest body to clear investments.
To secure iron ore supplies for its integrated steel project, the company has pitched for a long-term agreement for 50 years with the state-owned Odisha Mining Corporation (OMC) to supply 30 million tonne per annum (mtpa) of iron ore fines at prices declared by the Indian Bureau of Mines (IBM).