The proposed mega steel projects of Posco and ArcelorMittal in Orissa may not have seen the light and other domestic steel majors like Tata Steel and Essar Steel may be struggling to make headway on their projects but investment worth Rs 50,325 crore have already been grounded in the state till now in the steel sector.
As many as 49 steel players have entered into MoUs (Memorandum of Understanding) with the state government envisaging a cumulative capacity of 83.66 million tonnes (mt) at a combined investment of Rs 2.3 lakh crore, making the state one of the most enviable investment destinations in the sector.
Official sources said, the 29 steel players which have commenced partial production have so far added a steel capacity of 7.74 mt. This apart, the steel players are generating 1062 MW power through their captive power plants.
The boom in the steel sector is also reflected in the employment opportunities generated in the state. Investments in the steel sector have so far generated direct employment for 21,617 people besides creating 50,542 indirect jobs.
The status of all the steel projects was recently reviewed by the state steel and mines department. As many as 30 steel projects have made satisfactory progress while there were ten others which have started work on their proposals.
Three major steel players, ArcelorMittal, Essar Steel and Uttam Galva who had proposed to set up their projects in Orissa are proceeding at a very sluggish pace in terms of acquisition of land and investments made at the ground level.
ArcelorMittal's proposed 12 million tonne per annum (mtpa) steel plant to be set up at a cost of Rs 40,000 crore, one of the big ticket investments in the state, has been a non-starter so far. The world's largest steel maker who had planned to set up the project spread over 7000 acres of land at Patana in Keonjhar district has been unable to acquire even a single acre of land.
Similarly, Essar Steel has acquired only 200 out of 2500 acres needed for its six mtpa steel plant entailing an investment of Rs 10,000 crore.
Uttam Galva, which is setting up a three mtpa steel plant at Duburi in Jajpur district, has acquired only 300 out of 2000 acres needed for its project. The company has also spent a meager Rs 60 crore on the project out of the proposed investment of Rs 8000 crore.
Both ArcelorMittal and Uttam Galva had inked MoUs with the Orissa government in 2006.
Among the steel companies that have made good progress are Jindal Steel & Power Limited (JSPL), Brahmani Rivers and Pellets Limited and Bhushan Steel.
JSPL has already invested Rs 8,500 crore on its six million tonne per annum (mtpa) steel plant and has taken possession of 3,700 acres out of 5,700 acres needed for its project.
The company will commission its plate mill this year while the SMS (Steel Melting Shop) is expected to be operational next year.
Brahmani Rivers and Pellets Limited has already invested Rs 1100 crore out of Rs 1485 crore needed for its steel project. It has acquired 125 acres out of 275 acres required for the project.
The company is setting up a four mtpa iron ore pelletisation complex at Kalinganagar and had signed the MoU with the state government in March 2007.
Bhushan Steel has acquired almost the entire stretch of 1500 acres needed for its six mtpa steel plant. It has already invested Rs 12,000 crore out of the entire project cost of Rs 20,804 crore.
