The first phase of the 6 million tonne integrated steel complex of Essar Steel at Paradeep in Orissa is likely to be commissioned by March 2010.
The first phase envisages an investment of Rs 2249 crore and comprises of the construction of 8 million tonne beneficiation plant at Joda, 6 million tonne pellet plant at Paradeep and construction of 253 km of slurry pipeline from Joda to Paradeep.
While 30 percent construction work of the 6 million tonne Pellet plant at Paradeep has been completed, the company intends to start the construction work of the beneficiation plant at Dabuna (Joda) in next couple of days. The group company Essar Construction is the EPC contractor for the project.
The company requires about 85 acres for the beneficiation plant while the requirement for the tailing pond is about 215 acres. Out of this, Essar has already acquired 80 acres of private land through direct purchase. Essar Steel has submitted forest diversion proposal for 206.85 acres to the Union government.
On the other hand, the company has acquired 103 acres required for the pellet plant at Paradeep. It has also completed the work of 60 kms of slurry pipeline from Joda to Paradeep. It has already invested more than Rs 1000 crore in the project.
“ We have completed 30 percent construction work of the 6 million tonne Pellet plant at Paradeep and the construction of the beneficiation plant at Dabuna will start soon. We hope to commission the first phase of the project by March 2010”, H S Sethi, director (project), Essar Steel Orissa Ltd. (ESOL) told Business Standard.
Meanwhile, the company has obtained all the statutory clearances required for the project. The sanction of 40 Mw for pellet plant at Paradeep and 30 Mw for beneficiation plant has been obtained. Besides, the company has received the in-principle approval for water from the state government.
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Out of the first phase investment of Rs 2249 crore (unrevised), the equity component is Rs 818 crore and the remaining Rs 1431 crore is being mobilised as debt. A syndication led by the State Bank of India (SBI) has approved the project for providing loans, he added.
The company has achieved the benchmarks set by the state government for recommendation of prospecting license (Pl) or mining lease (ML) of iron ore mines. It has already applied for 7 mines in different locations in the state. The locations where the company has applied for mines are Mankadanacha, Badamgarh Pahad, Baliaparbat, Thakurani, Malangatoli and Khandadhar. It requires about 10 million tonne iron ore per annum for the integrated steel complex at Paradeep.