Posted on 19 Nov 2015
Tata Steel may pump Rs 1 lakh cr into Odisha plant
Terming Tata Steel's facility here a milestone
in Odisha's industrial progress, Chief Minister Naveen Patnaik said
investment on the project could go up to Rs 1 lakh crore by 2025.
"In the first phase, Rs 25,000 crore has been spent by Tata Steel,
creating direct employment for 3,000 people and indirect employment for
22,000," he noted after formally inaugurating it.
Tata Steel had envisaged a six million tonnes per annuam (mtpa) mill, at
an estimated cost of Rs 45,000 crore. The first phase is for three
mtpa.
Chairman Cyrus Mistry said, "We have invested Rs 25,000 crore in the
first phase. We will be investing Rs 2,000 crore on developing the iron
ore mines at Khandabandh that will feed the plant. Kalinganagar would be
the largest single (new) location steel plant in the country. Ten years
later, this would be a much bigger industrial ecosystem."
Iron ore from the Joda mines will cater to Tata Steel's first-phase
requirement till 2017. Then, the Khandabandh mines will meet the plant's
requirement. The former would have a mining capacity of five mtpa.
Tata has been allotted 3,470 acres. The plant would roll out high-end
flat steel products. In the first phase, it would roll out flat,
lighter, high-tensile strength steel.
Once capacity becomes six mtpa, ramping up to 16 mtpa, envisaged at a
later stage, would entail an additional investment of Rs 55,000 crore.
