The Adhunik steel plant in Kandra is set to witness further investments. Picture by Bhola Prasad

Jamshedpur, Feb. 21: Adhunik Group will pump in Rs 350 crore for setting up an integrated steel plant on its existing sponge iron unit premises at Kandra in Seraikela-Kharsawan district.

The managing director of the Calcutta-based Adhunik Group, Manoj Kumar Agarwal, confirmed that the board of the company has cleared the proposal for the fresh investment and the work is expected to be over in the next 16 months.

The group is also investing Rs 2,500 crore in the state in setting up a 500 MW thermal power plant (in two phases). Chief minister Madhu Koda laid its foundation stone early this month.

The projected annual production capacity of the proposed integrated steel plant would be to the tune of Rs 2 lakh tonne per annum and a turnover of more than Rs 450 crore.

The new plant, said Agarwal, would manufacture structural steel and other high quality value-added products using sponge iron that is produced in the existing units.

“We have received the necessary clearance from the government and acquired the land for setting up the new unit. The basic ground work has also been started and if things move according to plans it will not be surprising if the plant is commissioned much before time,” said Agarwal.

On the employment generation aspect of the new unit, Agarwal said at least 1,000 people would be absorbed.

“Going by global standards, we expect to employ about 1,000 people in various capacities. This would include indirect employment, too,” said Agarwal.

Under corporate social responsibility, the company would carry out a wide range of activities from developing health awareness to setting up cottage industries and facilitating self-employment, he added.

Sources in the group revealed that the company would soon start work for construction of railway tracks connecting the nearest track and ore washery.

“Apart from this the company will also construct a water reservoir on the banks of Kharkai to provide round the year supply to all its units, including the upcoming power plant,” said a source.