The world’s sixth largest steel maker, Tata Steel Ltd will begin construction work at its proposed 6 million tonne (mt) steel plant at Kalinganagar in Orissa in the next two months, a senior company official said.
“Pre-fabrication work has already started while actual construction will commence in two months,” said Tata Steel’s chief of corporate communication, Sanjay Choudhry.
The preparatory work including soil testing, site clearing and fabrication of the steel rolling mill is being carried out, he added.
Tata Steel has been planning the greenfield project in Orissa at an estimated investment of Rs22,000 crore since 2004, but the slow pace of acquiring land and obtaining environmental clearances delayed it.
The company needed about 3,200 acres for the plant’s construction and another 400 acres for its rehabilitation colony. The land has now been acquired, and some work on the rehabilitation colony has been completed.
The company claims to have shifted 700 out of the total 1,100 families living in the area where the plant is to come up to the new colony.
The company has also placed work orders for purchasing machinery and equipment including blast furnace, sinter plants and slab caster for its Orissa unit.
Tata Steel plans to commence commercial production at the new plant in two phases of 3mt each in next 36-40 months.
Tata Steel also proposes to set up two more greenfield steel projects, of 5mt and 12mt capacity each, in Chhattisgarh and Jharkhand, respectively.
While the proposed investment in the Chhattisgarh project would be about Rs20,000 crore, the Jharkhand plant would cost around Rs42,000 crore.
The company has already applied with the governments of the two states for acquisition of land. It has also submitted applications for mines.
Tata Steel is also expanding capacity at its plant in Jamshedpur, Jharkhand, from 5mt to 10mt by 2010, incurring an expenditure of about Rs20,000 crore.
But while the expansion the Jamshedpur unit is well under way, its greenfield project in the same state is inching along, as the state government is yet to announce the rehabilitation and resettlement policy, which would determine the package to be given by investors in lieu of taking locals’ land for setting up projects.