Odisha to renew MoUs with 11 steel cos and 6 IPPs soon

Bhubaneswar: With above 90 different industries in queue to renew their MoUs, the Odisha government on Saturday agreed to extend timeline of the pacts by two more years for at least 11 steel companies and six independent power producers (IPPs), official sources said.

The decision to renew MoUs with different steel and power industries was taken at separate State Level Task Force (STF) meetings, the official said.

"The STF on steel has recommended the state government to renew MoUs with 11 steel companies including Tata Steel's Kalinga Nagar plant," said Verma, adding, the companies have agreed to accept certain new proposals like setting up industrial training centres (ITCs), employment to local youths and others of the state government.

While the STF on steel headed by steel and mines secretary Rajesh Verma gave its nod to 11 steel units including Tata Steel's Kalinga Nagar plant to renew MoUs, the STF on energy decided to do so for 6 IPPs.

Tata Steel had signed a MoU with the state government to set up a 6 million tonnes per annum (mtpa) greenfield steel mill at Kalinga Nagar at an investment of Rs 15,000 crore on November 17, 2004. The five-year tenure of the MoU has meanwhile lapsed as the plant is yet to be operational.

Other steel units whose MoUs would be renewed are Action Ispat and Power Limited, BRG Steel Co Limited, Jai Balaji Jyoti Steel, MGM Steels, MSP Metalics, OCL Iron and Steel, Rungta Mines, Shyam Metalicks and Energy, SMC Power Generation, Surendra Mining and Tata Steel, Verma said.

Asked about the fate of the Posco-India's MoU with the state government which lapsed two years ago, Verma said: "The issue relating to Posco's MoU would be taken up in second phase. Today, we discussed on the MoUs of 15 companies of which 11 got clearance of the STF."

Similarly, in another STF meeting headed by energy secretary P K Jena, the decision was taken to extend timeline of the MoUs of GMR Kamalanga Energy, Jindal India Thermal Power Limited, Monnet Power Company, Ind Bharat Energy, Lanco Babandh Power and Maa Durga Termal Power Company.

"These IPPs are likely to generate thermal power of 3540 MW by the end of the current year," said Jena.

Jena said though seven proposals on renewal of MoUs were taken up for discussion, the case of KVK Nilanchals MoU was set aside due to a litigation in the High Court.

A team of officials of Industrial Investment Promotion Corporation of Odisha Limited (IPICOL) had recently inspected the physical progress of the seven IPPs. The team had recommended extension of MoUs of the seven IPPs based on their performances.

While Jindal India Thermal Power is expected to generate 600 MW by the end of this year, GMR Energy is likely to go on-stream and produce 1005 MW at Kamalanga in Dhenkanal district, Lanco Babandh Power (660 MW), Monnet Ispat & Energy (525 MW); Ind Barath Power Energy (Utkal) 750 MW, and Maa Durga is likely to generate 60 MW electricity this year, Jena said.