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Shyam Group to invest Rs 6,000 cr in Orissa projects

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Dillip Satapathy Bhubaneswar
Last Updated : Feb 05 2013 | 2:21 AM IST
Kolkata-based Shyam Group of Industries has lined up an investment of Rs 6,000 crore in Orissa for a number of projects in the cement, steel, power, ferro alloys and port sectors.
 
The company currently operates a 0.27 million tonnes steel plant equipped with a 25 mw captive power generation facility at Sambalpur in Orissa. It proposes to expand the steel capacity to 0.77 million tonnes and power capacity to 60 mw at an investment of Rs 400 crore.
 
The company is holding high-level talks with the Orissa government for setting up a 1000 mw Independent Power Project at Jharsuguda at an estimated investment of Rs 3,500 crore.
 
"Talks are on with the state government. We will sign a MoU for the project and also apply for coal blocks after these issues are tied up," a senior official of the company told Business Standard.
 
The company is keen to set up a 2.5 to 3 million tonnes cement plant in Orissa subject to the allotment of lime stone mines. Shyam Group, currently, operates a cement plant in Himachal Pradesh and sells its products under "Star Cement," which is the largest selling brand in the North-East.
 
The company recently made a presentation to the Orissa chief minister evincing interest to set up a greenfield port at Baliharchandi in Puri district. The port project will cost about Rs 1,900 crore.
 
Both the cement and port projects would be joint ventures with Century Ply, an associate company, said Milan Agarwal, senior executive project coordinator, Shyam Group.
 
Among other expansion plans, the group plans to ramp up the capacity of ferro alloys production at its Sambalpur facility. The company intends to set up a 300 MVA furnace to produce 4,50,000 tonnes of ferro-chrome, ferro-manganese, ferro-silicon and silico-manganese per annum.
 
"This expansion is expected to go on stream in the next 24 months, which will catapult us to the position of the second-largest manufacturer of ferro alloys in the country after Indian Metals and Ferro Alloys (IMFA), a Orissa-based company," Agarwal said.
 
Meanwhile, the group, which has been allotted a captive coal block in Utkal-A for its steel project, is all set to float a joint venture company along with Mahanadi Coalfield (MCL), Jindal Steel Works (JSW) and Jindal Stainless (JSL) for coal mining.
 
While MCL and JSW will have 60 per cent and 22 per cent stake in the JV, Shyam Group and JSL will hold 9 per cent each. The coal block has a reserve of 100 million tonnes. The JV will become operational by the end of October, sources said.
 
Apart from Sambalpur, Shyam Group with interests in steel, cement and power, has its manufacturing facilities in Durgapur, Raniganj, Burdwan and Meghalaya. The group's turnover stood at Rs 3,000 crore in 2006-07.

 
 

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First Published: Oct 05 2007 | 12:00 AM IST

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