 "Lack of state govt approvals hurt Balasore Alloys' Rs 4,700 cr expansion")
BAL is investing Rs 4,700 crore on its capacity ramp up of ferro chrome and mines that promises creation of direct and indirect employment opportunities for about 5000 people and revenue gain of Rs 660 crore annually to the state exchequer.
The mid-cap company is awaiting government nod to feed iron ore from its captive chromite mines at Kaliapani, Sukinda valley in Jajpur district to Rohit Ferrotech at Kalinganagar and Jabamoyee Ferro Alloys at Sukinda in the vicinity of its mines site.
BAL has acquired both the loss making ferro chrome units and needs government approvals to revive their operations. It acquired Rohit Ferrotech's 0.2 (mtpa) plant at a cost of Rs 1,108 crore in February this year. The Jabamoyee ferro chrome unit of much lesser capacity (21,000 tonne) was taken over at an investment of Rs 40 crore.
"Our ore linkage permission from Kaliapani mine to the Rohit Ferrotech plant is pending with the state steel and mines department since February this year. We have applied for the similar permission to feed ore to the Jabamoyee plant at Sukinda in December last year", said a BAL executive.
Government officials could not be reached for their comments.
BAL has also sought permission from the state owned land acquisition agency- Odisha Industrial Infrastructure Development Corporation (Idco) for transfer of leased land of Rohit Ferrotech unit at Kalinganagar.
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Even though BAL initiated the process of acquisition of Rohit Ferrotech's facility in February this year, the absence of government approval has constrained its efforts to restart the unit that has turned sick and is under shutdown.
The indecisiveness in government circles has jeopardised the fate of 1500 workmen and around 5000 families dependent on the plant, directly or indirectly. On being denied wages for the past two months, the workers have launched a stir.
"If the government approval does not come through swiftly, we will be forced to retrench employees who were employed for reviving the operations of Rohi Ferrotech", said a BAL source.
BAL expects to commission the Rohit Ferrotech facility in phases from January 2016. The plant when operated at full capacity, can generate annual revenue of about Rs 170 crore for the state exchequer.
The company's original mining lease at Kaliapani spread over 100.06 hectares (ha) is split into two parts- 64.46 ha non-forest area and 35.6 ha forest area. Presently, BAL is unable to carry out mining operations over 35.6 ha due to want of grant order by the government.
"We have received forest clearance and environment clearance for the patch of 35.6 ha. But, permission to start mining is pending with the government since 2010", said the BAL source.
BAL has lined up an investment of Rs 600 crore for development of 35.6 ha of the lease area with an estimated capacity of 0.4 mtpa.
It is also developing its existing chromite mine covering an area of 64.46 ha at Kaliapani by latest underground mining technology with a capacity of 1.4 mtpa. The project is to be implemented during 2016-20 at an investment of Rs 2000 crore.