Orissa in midst of sponge iron rush

The Orissa government has signed seven agreements for setting up of sponge iron projects in last three months at a combined investment of over Rs 4200 crore.

The state government has asked the Industrial Infrastructure Development Corporation of Orissa (IDCO) to assess land available for sponge iron units.

The companies which have entered into agreements included Neepaz Metallic, Aarti Steel, SCAW Industriesm, Deo Mines and Minerals, Visa Industries and SMC Power Generation Ltd. Most of these projects are proposed to be located either in western Orissa or the coastal area of the state.

More sponge iron producers have applied for permission to set up units. A review of land availability for sponge iron units has become imperative, pointed out an official of IDCO.

Buoyancy in the steel market and state government's insistence on value addition of ore as a pre-requisite for allotment of mine leases have led to the rush to set up steel and sponge iron units.

However, threat of pollution from sponge iron units has become a concern for the state. According to Orissa pollution control board sources, of the 30 sponge iron projects set up, only two had installed electrostatic precipitators (ESPs). High cost of installation of ESPs led sponge iron units to violate pollution norms, but action was being taken against the violators.