The Hindu Business Line : Orissa Govt signs pact with Mittal Steel for 12-mt plant

The Orissa Government on Thursday signed a memorandum of understanding with Mittal Steel Company N.V., an Arcelor Mittal company, for the setting up of a 12-million-tonne per annum capacity mega steel plant in the mineral-rich Keonjhar district of the State.

The steel plant will be set up at a total cost of Rs 40,000 crore, the second largest foreign direct investment that the State has attracted after the Rs 52,000 crore steel project of POSCO.

The first phase of 6 MTPA capacity will be completed in 48 months after the preparation of detailed project report, and second phase of another 6 MTPA in 54 months after completion of the first phase.

The project would create direct employment for 5,500 persons and indirect employment for 15,000 people.

The plant facility will consist of coke oven, steel making, rolling mills and captive power plant of 750 MW capacity.

The company will require about 50 MW of power during construction.

The State Government will provide 8,000 acres of land - 6,000 acres for plant, 1,000 acres for captive power plant and another 1,000 acres for township.

The company has sought 600 million tonnes of iron ore for a period of 30 years. The project will need 125 million cubic metre of water per year, which would be sourced from Baitarani river and Kanupur dam, which was under construction. The MoU was signed by Mr L.N. Gupta, Secretary of Steel and Mines Department, and Mr Malay Mukherjee, Member Group Management Board of Arcelor Mittal, on behalf of Mittal Steel Company N.V.

The Orissa Chief Minister, Mr Naveen Patnaik, the Industry Minister, Mr Biswabhushan Harichandan, and the Steel and Mines Minister, Mr Padmanabha Behera, were present at the MoU signing ceremony that was held at the State Secretariat.

The proposed project, however, faced opposition outside the Secretariat.

A regional political outfit, Kalinga Sena, organised a rally opposing the State Government's move to hand over mineral resources to private company at a throw away price.

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