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Orissa steel companies pay Rs 3000 crore taxes to state, Centre

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BS Reporter Kolkata/ Bhubaneswar
Last Updated : Jan 21 2013 | 6:57 AM IST

Create 74163 jobs in direct and indirect category over last six years

The Orissa government has earned revenue of Rs 1031.21 crore (as on March 31, 2010) through different taxes and levies from the steel companies that have signed Memorandum of Understanding (MoUs) with it over the last six years.

Besides, these steel companies have paid taxes of Rs 1976.01 crore to the Government of India.

This is despite the fact some of the big ticket investments like that of Posco, ArcelorMittal and Sterlite Iron and Steel, which are embroiled in problems like protests over land acquisition and mining lease allotment, are yet to make any headway in the state.

As many as 50 steel players have entered into MoUs with the state government and 29 of them have started partial production. Together, the steel companies have generated direct employment for 21617 people and created indirect employment for 52546 others.

Out of the people engaged directly in the steel projects, 14544 are from within Orissa with the remaining 7073 from outside the state. In the indirect category, 37942 people are from Orissa while 14604 are from outside the state.

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This was informed by minister for steel & mines Raghunath Mohanty in the state assembly today.

Combined these steel players have invested Rs 50325.77 crore, achieving a steel production capacity of 7.79 million tonnes per annum (mtpa) and Captive Power Plant (CPP) production of 1062 MW.

The companies that have gone into production are Bhushan Power & Steel Ltd (1.5 mtpa), Shyam DRI Power (0.20 mtpa), Rathi Udyog (0.15 mtpa), Viraj Steel & Energy Ltd (0.15 mtpa), Adhunik Metaliks Ltd (0.26 mtpa), SMC Power Generation Ltd (0,25 mtpa), SPS Sponge Iron Ltd (0.29 mtpa), Aarti Steels Ltd (0.25 mtpa), Bhushan Steel Ltd (3 mtpa), Sree Metaliks Ltd (0,28 mtpa) and Deepak Steel & Power (0.2 mtpa) to name a few.

They have spent Rs 59.55 crore on peripheral development.

Among the steel players that have made substantial investments are Bhushan Steel Ltd (Rs 12,000 crore), Jindal Steel & Power Ltd (Rs 8470.96 crore), Bhushan Power & Steel Ltd (Rs 7000 crore), Essar Steel Orissa Ltd (Rs 5077 crore), JSL Ltd (Rs 3972 crore), Visa Steel Ltd (Rs 1626.83 crore), Tata Steel Ltd (Rs 1302 crore) and Brahmani River Pellets Ltd (Rs 1169.42 crore).

Bhushan Steel Ltd has achieved sponge iron capacity of 0.5 mtpa, steel output of three mtpa and commissioned a CPP of 260 Mw.

The company had signed MoU with the state government on November 3, 2005 to set up a three mtpa steel plant and a 155 MW CPP at Meramundali in Dhenkanal district. The company has generated direct and indirect employment for 14867 people.

Bhushan Power & Steel Ltd has achieved a sponge iron production capacity of 1.5 mtpa, steel production of 1.5 mtpa and CPP of 116 Mw. It has created a total of 6859 jobs, both direct and indirect.

The company had signed MoU with the state government on May 15, 2002 for setting up a 2.8 mtpa steel plant and 405 MwCPP in two phases at a total investment of Rs 3500 crore.

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First Published: Dec 09 2010 | 12:09 AM IST

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