Essar to start construction of steel plant in Jan

Essar to start construction of steel plant in Jan
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First Published: Thu, Sep 13 2007. 05 58 PM IST
Updated: Thu, Sep 13 2007. 05 58 PM IST
PTI
Paradip: The Essar group expects to start construction work of its 6 million tonne integrated steel plant in Orissa from January next year.
Essar Steel Orissa Ltd (ESOL), a fully-owned subsidiary of Essar Steel, would invest about Rs15,000 crore in the project, B K Panda, ESOL director (projects), told reporters.
The project is targeted to be commissioned in 2011, Panda said yesterday (12 September).
At present, the company is directly negotiating with local landowners to purchase about 1,100 acres of land in Udayabata, Nuagarh and Bijayachandrapur villages, he said.
The total land requirement is about 2,000 acres including about 200 acres of government land, he said, adding so far 103 acres of government land had been handed over to the company.
He said Essar has selected an eco-friendly process for steel-making. Low grade iron ore would be used for making pellets which would be fed in blast furnaces. At present, low-grade iron ore is dumped and not used for making steel in the country.
Panda said ESOL would set up an ore benefaction plant near Barbil in Keonjhar district from where ore would be carried to Paradip through a 254-km long slurry pipeline.
Substantial progress had been made in acquisition of land for the benefaction plant, he said.
Panda said the company would meet its power requirement from a 200-MW captive thermal power plant and the state grid.
ESOL’s general manager (corporate affairs), Bikram Mohanty said there was no opposition from the local people who have welcomed setting up of the plant. The state government and the district administration of Jagatsinghpur have also extended cooperation, he said.
Panda said the company would undertake rehabilitation measures stipulated by the state government. Besides, it would also implement socio-economic activities in and around the plant site to improve the quality of life in the peripheral villages, he said.
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First Published: Thu, Sep 13 2007. 05 58 PM IST