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Steel production by players that have signed memorandum of understanding (MoU) with the state government saw a drop of 15.3 per cent in 2013-14.
Out of 48 steel companies that signed MoUs between 2002 and 2010, 31 have achieved either partial or full scale production level. Together these 31 steel companies logged output of 10.57 million tonne in FY 14 compared to 12.48 million tonne in 2012-13. The capacity achievement in last fiscal was 43.01 per cent of the 24.59 mtpa combined capacity of all these units, according to data provided to the state assembly by steel & mines minister Prafulla Mallick.
Most of these units were operating without allocated iron ore mines or raw material linkages. As a result, steel units were running at depleted capacities, risking viability of their operations.
The iron ore consumption requirement of all the steel units and other end use industries stood at 16.92 million tonne while the state’s ore production was 77.84 million tonne in 2013-14
Among the major steel producers, Bhushan Steel Ltd has commissioned 4.5 million tonne steel capacity at its Meramundali plant near Dhenkanal out of its total envisaged capacity of six mtpa. Similarly, Jindal Steel & Power Ltd (JSPL) has put on stream 1.2 mtpa plant against the proposed capacity of six mtpa near Angul. Jindal Stainless Ltd has operationalised one mtpa steel plant. The steel maker had proposed 1.6 mtpa plant at Kalinganagar in Jajpur district.
Rest of the steel players are operating sub one million tonne facilities. The steel sector in Odisha has seen grounding of investments worth Rs 1.09 lakh crore
As many as 50 steel investors had signed MoUs with the state government, envisaging a steel capacity of 79.82 million tonne and committing investments worth Rs 2.22 lakh crore.
Of this, ArcelorMittal has withdrawn from its 12 million tonne mega steel plant and the MoU with Maharashtra Seamless has been scrapped due to unsatisfactory progress on the project.
