Tata Steel, Bhushan Steel and Jindal Steel & Power Ltd (JSPL) have been the front runners in implementing their projects among the steel firms which had entered into Memorandum of Understanding (MoU) with the state government.
"Both Tata Steel and JSPL have stated that they would start production by 2013. Similarly, Bhushan Steel Ltd expects to commission its six million tonne per annum steel plant by 2014. All steel companies including Posco India have agreed to abide by the mandatory employment clause of the state government which stipulates that industries setting up their units in the state have to reserve 90 per cent jobs in the unskilled and semi-skilled category, up to 60 per cent in skilled category and 30 per cent for the supervisory and managerial cadre while giving them the option to fill up the post of senior executives from the open market”, said Raghunath Mohanty, state minister for industries and steel & mines.
Bhushan Steel has commissioned its three mtpa steel plant at Meramundali in Dhenkanal district and was keen to scale it up to nine mtpa. It has already invested Rs 13,500 crore on its project in Orissa.
The state steel & mines department today reviewed the status of 23 steel projects while the status of remaining projects will be reviewed on Wednesday.
Among the big ticket steel investors, ArcelorMittal has been unable to make headway on its proposed mega steel plant due to stiff resistance of the locals over land acquisition.
"ArcelorMittal has stated categorically that they are not pulling out of their Orissa project. Resistance to land acquisition has been a roadblock to the project and as such, we have not given them any milestone since land acquisition is not yet over. Notification for land acquisition under Section 6 (1) of the Land Acquisition Act has been issued in six project affected villages”, said a top official of the steel & mines department.
Orissa through its nodal agency for land acquisition, Industrial Infrastructure Development Corporation of Orissa Ltd (Idco), has allotted 20,684.06 acres of land to steel companies that have signed Memorandum of Understanding (MoU) with the state.
The maximum allotment has been made in favour of Jindal Steel & Power Ltd (JSPL) which was allotted 3,738.59 acres for its six million tonne per annum integrated steel plant at Kerajang in Angul district. This includes 958.36 acres of government land and 2,780.23 acres of private land.
JSPL had sought 5,492.69 acres of land while Industrial Promotion & Investment Corporation of Orissa Ltd (Ipicol) had appraised the company's land requirement at 4,327.98 acres.
Next to JSPL is Tata Steel which has been allotted 3,040.39 acres of land at Duburi in Jajpur district which includes 540.42 acres of government land and 2,499.97 acres of private land.
Even though the big ticket investment projects of Posco and ArcelorMittal are yet to take off in Orissa, the steel sector in the state has recorded an investment of Rs 51,940.67 crore till the end of December 2010.
The 50 steel companies that have inked MoUs (Memorandum of Understanding) with the state government have generated direct employment for 21,508 people besides creating indirect employment opportunities for 52,448 others.
Out of 21,508 people engaged in the direct route, 14,217 are from within the state and the remaining 7,291 are from outside Orissa. In the indirect employment category, 38,122 people from the state have got jobs and 14,326 persons have been sourced from outside.
