Sree Metaliks Limited (SML), which runs two integrated steel complexes at Barbil and Angul in Orissa, has firmed up plans to set up a 540 MW (2x270 MW) coal-based power plant near the upcoming Dhamara port in the state at an investment of around Rs 2,000 crore.
The power plant would be set up on 750 acres of land at Chardia village, about six km from the upcoming Dhamara port in Bhadrak district. The 750 acres of land identified for the project would house the power plant, a township and a desalination plant.
Initially, the project was to be set up in Deogarh district, but the company had to select an alternative site because of issues pertaining to availability of water.
“We have already submitted a revised proposal to the Industrial Promotion and Investment Corporation of Orissa Limited (Ipicol) for setting up the power plant. We expect land acquisition for the project to be completed within six months”, Pradip Sen, executive director, Sree Metaliks told Business Standard. Sree Metaliks submitted the revised proposal to Ipicol for its power plant in September 2009. Construction work on the power plant is set to begin in the last quarter of 2010-11 and the first unit is set to be operational within two years.
The company will use a mix of imported and indigenous coal for the power project.
“We will use 50 per cent imported coal and the remaining 50 per cent of indigenous coal for our power project. The company is scouting for coal mines in Mozambique. We may either pick up stake in a coal mine or opt for joint operation of the mine”, he said.
Besides the power plant, Sree Metaliks has lined up an investment of Rs 965 crore to set up a 0.7 million tonne per annum (mtpa) integrated steel plant, a 1.2 (2X0.6) mtpa pelletisation plant, a one mtpa iron ore beneficiation plant and a 50 MW captive power project at Anra in Keonjhar district.
“These projects have already got the nod of the State Level Single Window Clearance Authority of the state government. The first unit of the pelletisation plant is expected to be operational by June 2010”, said Sen said. The total land requirement for the steel plant, pelletisation plant and the iron ore beneficiation plant is 480 acres. The company has already acquired 225 acres of land at Anra through direct purchase and we expect to commence construction work in January 2010, said Manoranjan Sahoo, Vice-president (commercial) of the company.
The remaining land is being acquired by the Orissa Industrial Infrastructure Development Corporation (Idco) and we expect the land acquisition process to be completed within six months.
All these projects are expected to be operational within four years. “Sree Metaliks has got the mining lease for the Khandabandh iron ore mines located 35 km from Anra. We have also achieved financial closure for our proposed steel plant”, said Sahoo.
Presently, Sree Metaliks has a steel making capacity of 0.28 mtpa which is the combined capacity of its existing plants at Barbil and Angul. The company has invested Rs 307 crore (till September 30 this year) on these two units.
