Steel sector bags Rs 52,000 cr investment in Orissa


Even though the big ticket projects of Posco and ArcelorMittal are yet to take off in Orissa, the steel sector in the state has recorded an investment of Rs 51940.67 crore till the end of December 2010.

The steel projects, which are in different stages of implementation, have contributed Rs 1038.22 crore to the state government and Rs 2040.76 crore to the Central exchequer in term of tax in the past six years.

The 50 steel companies that have inked MoUs (Memorandum of Understanding) with the state government have generated direct employment for 21508 people besides creating indirect jobs for 52448 others.

Out of 21508 people engaged in the direct route, 14217 are from within the state and the remaining 7291 outside Orissa. In the indirect employment category, 38122 people from the state have got jobs and 14326 persons have been sourced from outside the state.

According to the state steel & mines minister Raghunath Mohanty, 29 out of these 50 steel firms have begun partial production, achieving a sponge iron output of 6.24 million tonne per annum (mtpa) and steel capacity of 7.79 mtpa.

These steel units have achieved a CPP (Captive Power Plant) capacity of 1062 MW and have spent Rs 61.21 crore on peripheral development till the end of December last year.


Among the steel investors who have made significant investments in the state are Bhushan Steel Ltd-Dhenkanal (Rs 12000 crore), Bhushan Power & Steel Ltd-Sambalpur ( Rs 7000 crore), Jindal Steel & Power Ltd-Angul (Rs 8470.96 crore), JSL Ltd-Kalinganagar (Rs 5367.59 crore), Essar Steel Orissa Ltd-Paradip (Rs 5077 crore), Adhunik Metalicks Ltd-Kuarnmunda (Rs 1740 crore), Visa Steel-Kalinganagar (Rs 1626.83 crore) and Tata Steel-Kalinganagar (Rs 1302.60 crore).

The units that have started partial production are Aarti Steels Ltd, Adhunik Metalicks Ltd, Visa Steel Ltd, Shyam DRI Power Ltd, Sree Metaliks Ltd, Jain Steel & Power Ltd, Eastern Steels & Power Ltd and Bhushan Steel Ltd to name a few.

Commenting on the status of MoUs of the steel companies, the minister said, “Out of all the MoUs signed in the steel sector, two MoUs are sub-judice, MoUs of six companies are valid till date, five companies have not applied for renewal of their MoUs and proposal for extension of MoUs of 36 steel companies are under consideration of the state government.”

The envisaged capacity of all the steel companies, that have signed MoUs with the state government, is 83.66 mtpa and the state has attracted investments worth Rs 2.30 lakh crore in the steel sector.


Hottest ProductsMore