Business Standard

Task force on steel, aluminium to vet new proposals

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Bishnu Dash Kolkata/ Bhubaneswar

The Orissa government has constituted two separate task forces for steel and aluminium industries in the state. The mandate for the task forces is to scrutinize various investment proposals coming in the steel and aluminium sectors before being sent to the State Level Single Window Clearance Authority (SLSWCA). Earlier, the state government had formed similar task forces on power and cement industries.

The task force on steel is headed by the steel and mines secretary, Ashok Dalwai while the task force on aluminium is headed by the industry secretary, Saurabh Garg. The task force on steel has secretaries in the departments of water resources, industry and energy, chairman-managing director, Ipicol and member secretary of the Orissa State Pollution Control Board (OSPCB) as members. It would scrutinize the investment proposals in the steel sector and recommend the most beneficial projects to the SLSWCA for consideration.

 

“The task force would technically scrutinize all new investment proposals in the steel sector and advise SLSWCA in taking decisions on these new projects”, Dalwai told Business Standard. Sources said, the decision assumes importance as some project proponents are seeking expansion even as they are yet to attain the milestones set for them in the first phase execution of the project.

As per the guidelines of the government, a project proponent is required to attain financial closure, utilise 50 percent of the capacity and must have obtained the statutory clearances for the first phase before seeking permission for capacity expansion in the next phase.

Add to it, there are some specifications pertaining to the sponge iron and blast furnace route of steel making, which have to be conformed to by the project proponents. On the other hand, the Task force on aluminium has secretaries in the department of water resources, energy, steel and mines, chairman-managing director, Ipicol and member secretary of the Orissa State Pollution Control Board (OSPCB) as members.

The constitution of task force on aluminium assumes importance as three aluminium companies like Vedanta Aluminium, Hindalco and the public sector Nalco are seeking expansion of their existing refinery and smelting capacity. The government is yet to take a decision on allowing these companies to expand their capacity citing the non-availability of adequate quantity of bauxite in the state.

Besides, the task force on power has been reconstituted with the energy secretary P K Jena as its head. Previously it used to be headed by the chief secretary. It has water resources secretary, chairman-managing director (CMD), Ipicol and member secretary of the Orissa State Pollution Control Board (OSPCB) as members, sources added.

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First Published: Feb 15 2010 | 12:49 AM IST

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