The Hindu Business Line : Orissa signs pact with four steel cos for new projects

The MoUs were signed between the top executives of the companies and Mr R.N. Bohidar, Secretary of the Steel and Mines Department, in the presence of the Chief Minister, Mr Naveen Patnaik, at the State Secretariat.

The four companies that have signed the MoUs are Sunflag Special Steels Ltd, Maharashtra Seamless Ltd, Orissa Sponge Iron Ltd and SPS Sponge Iron Ltd. The total investment to be made by the four companies will be Rs 2,634.19 crore.

The Steel Mines Minister, Mr Padmanabha Behera, the Finance Minister, Mr Prafulla Chandra Ghadei, the Chief Secretary, Mr Pratip Kumar Mohanty, and the Chairman of the Industrial Promotion and Investment Corporation of Orissa Ltd, Mr Priyabrata Patnaik, attended the joint MoU signing ceremony.

As per the MoU, Sunflag Special Steels will set up its plant at Bomlai in Sambalpur district, making an investment of Rs 348.74 crore in the first phase and Rs 588.45 crore in the second phase.

Maharashtra Seamless will set up its facility near Duburi in Jajpur district. It plans to invest invest Rs 245 crore in the first phase and Rs 205 crore in the second phase.

Orissa Sponge Iron Ltd will promote its facility at Gurla and Govindpur in Sambalpur district. It will make an investment of Rs 395 crore in the first phase and Rs 642 crore in the second phase.

SPS Sponge Iron will set up its plant at Badmal Growth Centre in Jharsuguda district at an investment of Rs 210 crore.

The four companies will make finished products such as sponge iron, pig iron, long steel products, and steel wire rod, special steel, and steel billets. In the first phase, the four companies will have a total production capacity of 1.89 million tonnes, creating direct employment for 3,121 persons.

The Orissa Government has been taking various promotional measures for rapid industrialisation through utilisation of the mineral resources available in the State.

Earlier, the Government had signed MoUs with eight steel making companies - Bhushan Group of Companies, SCAW Industries (P) Ltd, Neepaz Metaliks (P) Ltd, Aarti Steel Ltd, Deo Mines and Minerals (P) Ltd, VISA Industries Ltd, SMC Power Generation Ltd, and Shyam DRI Power Ltd. The MoU with Bhushan Group was signed in 2002, while the remaining seven MoUs were signed last year.

"All the eight projects are at different stages of implementation and some of them will start production in a few months time," the Steel and Mines Minister said.

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