Mesco Steel plans Rs 10,500cr to expand capacity
Bhubaneswar: Close on the heels of ArcelorMittal scrapping its proposed Rs 50,000 crore steel plant in Odisha and JSW Steel evincing interest to set up a port-based plant in Kendrapara district, Mesco Steel on Wednesday said it would expand the company’s Kalinganagar plant by investing Rs 10,500 crore.
“The plant capacity would be ramped up to 3.5 million tonne per annum (MTPA) from the existing 1.2 MTPA in two phases with an investment of Rs 10,500 crore,” Mesco Group president JK Singh said after meeting chief minister Naveen Patnaik here at the secretariat.
Singh informed media that the company has received environment clearance for the first phase expansion work, which it aims to complete within five years.
The company official however expressed his worry about allotment of mines for smooth functioning of the plant.
“We have no mine except Roida which we purchased. Other than that though we have locations (mining sites), there is no lease deed with us,” he stated.
Singh’s Wednesday meeting with the Odisha CM assumes significance as the inter-ministerial group (IMG) of the State government, which was formed in November last year to give its view regarding long-term supply of raw materials to local metal industries, submitted its report a fort night ago to the chief minister for further discussion in the State cabinet.
It is mentionable here that Vedanta Alumina Ltd (VAL) COO Mukesh Kumar was also optimistic of getting bauxite for the company’s Lanjigarh refinery after meeting the CM on July 22.
Notably, two days back JSW Chairman and Managing director Sajjan Jindal proposed to invest Rs 15,000 cr to set up a steel project in Kendrapara district.
All these recent developments regarding steel projects in the State are coming at a time when South Korean steel-maker Posco is on the verge of receiving the required land from the State Government to start first phase of its mega steel plant at an investment of Rs 52,000 crore.