JSW Utkal Steel gets green nod for 13.2 mt new steel plant in Odisha

The firm said capex for the integrated steel plant is likely to be about Rs 65,000 cr including associated facilities

The country’s largest steelmaker, JSW Steel, moved a step closer to realising its greenfield steel plant, with its wholly-owned subsidiary, JSW Utkal Steel (JUSL), receiving environmental clearance (EC) for setting up a 13.2 million tonnes (mt) steel plant in Odisha. 

The company said the capital expenditure for the modern, green and environment-friendly ISP project is expected to be approximately Rs 65,000 crore, including associated facilities. The phase-wise work for the project will start once the land is handed over to the company by the government of Odisha. 

The proposed steel plant would come up on the land where South Korean steel major, POSCO, was to set up its project earlier. Protests against land acquisition and a change in mining law had derailed POSCO’s proposed steel plant. Despite protests against JUSL, the Odisha High Court disposed of three PILs, which were seeking judicial intervention against alleged “high-handedness” of police against the protesters.   

The court said in its order that the purpose of the Court entertaining the present petitions has been somewhat served with the complete details emerging and persons who were apprehensive that their voices may not be heard having been afforded an adequate opportunity either in the form of oral hearing at the site itself or by way of affidavits.

The mega project, according to JSW, would generate huge employment opportunities in the region, which in turn would boost the economy of Odisha. The project is one of the largest in the manufacturing sector in the country and MoEF&CC accorded the EC after successful public hearings, the company said.

JUSL has earmarked budgets for social interventions under public health, education, skill development, social infrastructure, waste management, environment, drinking water, women empowerment, among others. Additionally, based on the environment impact assessment (EIA), the company has plans to incur expenditure for the environment protection and mitigation measures.

JSW has chalked out plans to achieve a capacity of 37.5 mt by FY25. The greenfield project is over and above the planned capacity of 37.5 mt. At present, JSW has a capacity of 28 mt.   

The proposed plant in Odisha would be “green and environment-friendly” indicated JSW. The company has set a CO2 emission reduction target of 42 per cent over the base year of 2005 by 2030 (to a level of 1.95tCO2/tcs).