Essar Steel to build jetty at Hazira

Company's existing port facilities unable to handle expansion pressure.

Essar Steel's expansion plan in Hazira has hit an infrastructure roadblock as the company's captive port facility is unable to handle heavy engineering equipment needed for the on-going expansion project at the steel plant.

The group has sought urgent permission from the Gujarat Maritime Board (GMB) to construct a Ro-Ro jetty. In a letter dated January 19, 2008, the Essar group has sought necessary clearances on a urgent basis to build the jetty.

Essar Steel currently operates a gas-based hot briquetted iron (HBI) plant with a production capacity of 4.6 million tonnes per annum (MTPA). The plant is supported by a captive power plant of 32MW. The company is doubling the capacity to over 8 MTPA.

The state's maritime regulator had last year given the necessary clearances to the company to expand its jetty at Hazira in south Gujarat by an additional 150 metre, where the group is planning to invest Rs 450 crore for the expansion.

In the Vibrant Gujarat Global Investors' Summit held last year, Essar SEZ Hazira Ltd, a group subsidiary, had committed investments to the tune of Rs 12, 750 crore to develop a steel plant, Hazira plate mill and a deep- water port and allied facilities at Surat.

While the company officials refused to comment, a senior government official told Business Standard that the Essar was in a hurry to go ahead with the Ro-Ro jetty project.

"The company has communicated to us that they need to construct the Ro-Ro jetty very soon so that they can handle very heavy machinery required for the expansion project," said a government official.