Arcelor Mittal, the largest steel maker of the world, plans to set up a captive port for its 12 million tonne steel plant in Orissa at Barunei Muhan, north of Mahanadi river near Paradip.
It is in deviation to the announcement of the company earlier that it would not go for a captive port like Posco, whose proposal to set up a captive port along with a 12 million tonne steel plant near Paradip is vehemently opposed by the project critics.
The proposed captive port of Arcelor Mittal will have 30 million tonne per annum (MTPA) raw-material handling capacity, which include 15 mtpa coking coal , 5mtpa coal for PCI, 1 mtpa anthracite and 9 mtpa limestone.
The port site will be about 270 km away from its proposed site for the 12 mtpa greenfield steel plant in Patna tehsil in Keonjhar district of the state. It will have facility to receive Cape Size Vessels.
Recently, the company made a presentation before a small committee headed by the development commissioner R N Bohidar, about its plans in the port sector.
The proposed port will have steel servicing centre, downstream processing and finishing line, ancillaries such as automotive industry, technical training institutes and fabrication workshops. The company has indicated that about 6000 acres of land will be required for setting up port and related infrastructure, official sources said.
The preliminary studies were conducted and preliminary project report for the site has been prepared by department of Ocean Engineering (DoOE), Indian Institute of Technology (IIT), Chennai.
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Further, Arcelor Mittal has appointed DHI for taking up further study on the site and prepare feasibility report. However, Arcelor Mittal has not indicated the quantum of investment required for the setting up this port.
The company signed the memorandum of understanding (MoU) with the Orissa government for setting up a 12 mtpa steel plant in December 2006.While the Orissa government has given the administrative approval for acquisition of 7750 acres of land, the company has already filed the land schedule documentation and processing fee to the state owned Industrial Infrastructure Development Corporation (IDCO).
The detailed project report (DPR) is complete and the company has obtained the Railway Transport Clearance (RTC).
It has obtained the permission from the National Highway Authority of India (NHAI) for building access road to the steel plant site. Similarly, terms of reference (ToR) for the environment impact assessment (EIA) has been obtained from the Ministry of Environment and Forests (MoEF).
Meanwhile, the company has held two Gram Sabhas in the project site successfully and has submitted the draft rehabilitation and resettlement (R & R) to the state government.