Tata Steel plant in Jamshedpur: Waiting for Orissa debut

Bhubaneswar, May 16: The Centre hopes that construction of proposed mega steel plants by Posco and Tata Steel would start by the end of next month.

Land acquisition for the steel plant proposed by ArcelorMittal is also expected to be over by October-end.

“I did notice seriousness at all levels,” said Union steel secretary R.S. Pandey, who reviewed the progress of the steel plants proposed to be set up in Orissa.

“Orissa, endowed with rich mineral resources, has the potential to produce 75 to 80 million tonnes of steel per annum. A lot of businessmen are trying to invest in steel sector in Orissa. I have a feeling that by 2011-12, capacity of producing 40 to 45 million tonnes of steel per annum should be created in the state,” he added.

The major hindrances to the proposed plants are matters related to land acquisition, infrastructure and mining, he said.

Stating that the land acquisition for Posco’s 12 MTPA steel plant near Paradip port is in final stage, he said construction of the plant was expected to start by June-end. Asked as to how he was so much optimistic when not a single acre of land had been acquired, he said bulk of the required land — all of forest category — was under consideration of the Supreme Court for forest diversion clearance and he was hopeful that the apex court would grant the permission.

Construction of the 6 MTPA steel plant of Tata Steel at Kalinga Nagar is also expected to begin by June-end, he said, adding that the company was trying its best to set up a transit camp. Similarly, land acquisition process for the 12 MTPA steel plant of ArcelorMittal in Patna tehsil of Keonjhar district has begun and is expected to be completed by October, said Pandey.

He said problems relating to land acquisition could be sorted out with the cooperation of the state government, people and the industry.

Stressing on the need to step up steel production in the country, Pandey said there was a significant rise in demand for steel in India, outpacing the growth in steel production. India had been a net importer of steel to meet the growing demand. During 2007-08, India’s steel import had gone up by 45 per cent, while the export had declined by 6 per cent, he said.

Stating that both the Union and Orissa governments are keen on quick execution of the proposed steel projects, Pandey said: “It’s a national priority.”