The company, which signed a memorandum of understanding with the MP government during the recently organised Bundelkhand Investors' Meet, has said it will invest Rs 1,000 crore and there will be scope for a further investment of Rs 1,000 crore later.
"A team of the company recently visited the state and discussed the investment plan with senior state government officials," a government source told Business Standard. The company has also written a letter to the MP Trade and Facilitation Corporation earlier this month in which it applied "for a screening committee for grant of captive coal blocks of Urtan Beheraband (North) extension and Urtan (North) in Sohagpur coalfields of Madhya Pradesh. It has urged the state government for allotment of the said blocks to support its proposed investment of Rs 1,000 core in phases for setting up of the coal beneficiation plant, cookeries and the 50 MW power plant".
The company also has plans to set up a pig iron/integrated steel making facility in Madhya Pradesh in the second phase later.
Tata Metaliks will set up a 1.5 million tonne per annum coal beneficiation plant, a 0.80 million tonne per annum coke manufacturing unit and a 50-Mw power plant with an investment of Rs 375 crore, Rs 225 crore and Rs 250 crore, respectively.
If the state government extends support, the company will invest another Rs 1,000 crore in the 0.7 million tonne per annum composite pig iron, DI Pipes and steel making facility.
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"The Tatas will require 1,100 acres and the investment will created 20,000 direct and indirect jobs," the source said, adding, "the state government is making arrangements for the company since the investment is expected in the backward district of Sagar".
Tata Metaliks, assisted by the West Bengal Industrial Development Corporation, has a pig iron manufacturing unit in Kharagpur (West Bengal) and Redi (Maharashtra).