Odisha recommends over Rs 10,000 cr investment in steel sector

Bhubaneswar: The Odisha government on Friday recommended investment of about Rs 10,000 crore in the state's steel sector, including Essel Mining and Industries' proposal of setting up a pellet plant at an investment of Rs 379.68 crore, official sources said.

The decision in this regard was taken at a meeting of the State Level Task Force on Steel here presided by Steel and Mines Secretary Rajesh Verma.

"The Task Force today recommended investment of above Rs 10,000 crore in steel sector. The Single Window Clearance Committee (SWLC) headed by Chief secretary will accord final clearance to investors," Verma told reporters.

The Task Force's recommendation is significant for Essel Mining and Industries Ltd as it does not have any captive use of minerals in the state despite its having iron ore mines in Joda and Koira mining circles in Keonjhar and Sundergarh districts, respectively.

Having own plant for value addition by Essel Mining would help it cope with the state government's new guideline which clearly state that the mines leases should be extended for such companies which have captive use.

The company has proposed to set up a 1.20 mtpa Pellet plant in tehsil of Koira under Bonia sub-division in the district of Sundergarh with an estimated investment of Rs 379.68 crore, Verma said.

Kalinga Steeltech (P) Ltd's proposal to set up a 1.2 mtpa integrated steel plant at Kudabaga in Sudergarh district at an investment of Rs 7,213.17 crore also got nod of the Task Force.

Other companies whose proposals were recommended by the Task Force include T S Alloys Ltd, Rungta Sons (P) Ltd, Sushant Minerals (P) Ltd, Freegrade Co (P) Ltd, Altrade Iron and Power Ltd and Jindal Steel and Power Ltd's 5 mtpa iron ore pellet plant in Keonjhar district at an investment of Rs 985.29 crore.