Tata Steel's Odisha integrated plant to start production by September

The project was pushed back by four years due to the time and cost revision in 2011, in the evoke of the deferring in the land acquisition. However, the cost of the original project was not shared, i.e. the MoU which the government of Odisha signed a decade ago The Dollar Business Bureau

The green field plant of Tata's would first produce three million tons per annum of steel in the first phase and then increase its capacity to six million metric tons per annum

Tata Steel is about to commence its first phase of the “integrated, commercial production” of its 3-million-ton steel plant by September in Odisha. The company is very much determined to keep the cost of the project below the estimated Rs.25,000 crore. "Integrated commissioning of all units for the first phase will take another six months. Project cost remains within the revised budget and even it could (be) lower," Tata Steel V-P Operations (Odisha) Rajiv Kumar said. The integrated steel components such as blast furnace, sinter plants, captive power units, coke oven and hot roiling, are slowly being coordinated by the company. It is likely that in due course of time, the company will source iron ore from Khondbon mine located in the Keonjhar district of Odisha. The project was pushed back by four years due to time and cost revision in 2011. The deferring in land acquisition also played its part in the delaying process. The plant in Kalinganagar is to be spread over 3,470 acres of land of which 900 acres is yet to be acquired by the company. However the cost of the original project was never revealed, i.e. the MoU which the government of Odisha signed a decade ago. The green field plant of Tata's would first produce three million tons per annum of steel in the first phase and then increase its capacity to six million metric tons per annum. However, no proper time frame has been mentioned in the scaling of the production to six million tons per annum. With this the total steel output production in the first phase of Kalinganagar is likely to go up to 13 metric tons in India.

March 11, 2016 | 05:50pm IST

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The Dollar Business Bureau - Mar 11, 2016 12:39 IST

Tata Steel's Odisha integrated plant to start production by September

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