Jindal eyes SEZ tag for Orissa unit

Jindal Stainless is exploring the possibility of seeking a special economic zone (SEZ) status for its proposed integrated steel making facility in Orissa.

The company plans to set up 2 million integrated stainless steel making facility in its second phase of expansion. The first phase, entailing raw material sourcing for the plant, is on.

Sources said Jindal Stainless would take a decision on the SEZ and timing of the plant in two months.

The company requires around 2,000 acre for the plant, of which 1,250 acres has been allotted for the first phase. The SEZ status would ensure financial incentives and quicker allocation of land.

Sources said this was an opportune time to set up a steel plant as the industry expects stainless steel to clock double-digit growth over the next few years.

The company was also working on the route to be adopted by Jindal Stainless for making steel. Both the electric arc furnace and blast furnace options are being weighed and a decision would be reached over the next couple of months.

The investment in project would range between Rs 4,000 and Rs 5,000 crore depending on the route adopted for steel making.

Jindal Stainless is tying up raw material linkages. The first phase of the project is focused on backward integration through ferro alloys facilities and thermal power plant.

Sources said two of the furnaces were up and running and the ferro silicon project would be start by the first quarter of the next year.

The company would initiate discussion with the Orissa government for coal, chrome ore and other linkages. Iron ore would also be required.

Sources added that the company had met the requirements for iron ore mines allotment.

Jindal Stainless had already spent 25 per cent of its total project and acquired the land, the basic requirements which made it eligible for the mines.

The company was in possession of 1,250 acre and had already made the payment for the same. Raw materials till the stainless plant in Orissa was set up would supply to the company's Hisar plant.