Chhattisgarh inks Rs 19,200cr MoUs

Bhushan Power and Steel Limited (BPSL) will set up an integrated steel plant in Chhattisgarh while the Jindal Steel and Power Limited (JSPL) will expand its existing facility in the state to take up the production of steel to 6 million tonnes per annum (mtpa).

Both BPSL and JSPL and five other companies inked Memorandums of Understanding (MoUs) with the Chhattisgarh government on May 4. In all, seven MoUs were signed for an investment of Rs 19,200 crore. On behalf of the Chhattisgarh government, additional chief secretary P Joy Oommen signed the MoUs.

The BPSL, which revived the proposal it had abandoned some four years ago to set up a steel plant in Chhattisgarh, inked the deal to set up a 1.2 mtpa integrated steel plant with an investment of Rs 5500 crore in Raigarh District. The company plans to put up a captive power plant with a capacity of 300 Mw. The JSPL will invest Rs 8000 crore in its existing facility at Raigarh District for producing additional 3.2 mtpa steel. This will increase the capacity of JSPL to 6 mtpa."The expansion project of Jindal is as good as setting up a new plant," Oommen said.

In the other MoUs, Monnet Ispat plans to invest Rs 2087 crore to increase production in its Raigarh-based steel plant by 1.5 mtpa besides setting up a 170 Mw captive power unit.

The Topworth Steels Private Limited will invest Rs 1200 crore for the expansion of its Borai-based steel plant in Durg District while Kolkata-based MST Steel and Power will invest Rs 850 crore for the expansion of its existing plant.

Two state-based industrial houses also signed the MoUs. The Vandana Ispat will bring up a steel plant with a capacity of 8.3 lakh tonne per annum, investing Rs 1310 crore besides setting up a 120 Mw captive power plant.

The Salasaar Sponge and Power Limited, another Raipur-based industry, will invest Rs 230 crore for expanding production in its existing facility in the state.