A 12-million-tonne plant will be set up in Keonjhar district
BHUBANESWAR: The Orissa Government on Thursday signed a memorandum of understanding (MoU) with Mittal Steel Company N.V., an Arcelor Mittal company, for establishing a 12-million-tonne capacity steel plant in the State. The plant will be set up in the mineral-rich Keonjhar district with a total investment of Rs. 40,000 crore.
The MoU was signed by L. N. Gupta, Secretary of the Steel and Mines Department, and Malay Mukherjee, Member, Group Management, Board of Arcelor Mittal, on behalf of Mittal Steel Company.
Chief Minister Naveen Patnaik, Industry Minister Biswabhushan Harichandan and Steel and Mines Minister Padmanabha Behera were present on the occasion.
The first phase of six million tonnes capacity will be completed in 48 months after the preparation of a detailed project report. The second phase of six million tonnes will be completed in 54 months after the first phase.
The steel plant will include coke oven, steel making, rolling mills and a captive power plant of 750 MW capacity.
The company will be provided 8,000 acres 6,000 acres for the plant, 1,000 acres for the captive power plant and another 1,000 acres for township.
The plant will require 600 million tonnes of iron ore for 30 years, according to the MoU.
The steel plant will require 125 million cubic metre of water annually which will be sourced from the Baitarani river and Kanupur dam which is under construction.
Speaking on the occasion, the Chief Minister said the project would create direct employment for 5,500 persons and indirect employment for 15,000 people.
While assuring Mittal Steel of all support to the project, Mr. Patnaik urged the company to address the issues of rehabilitation and environment protection.
However, hours before the signing of the MoU, a rally was organised near the State Secretariat, opposing the signing of the MoU.
The activists of Kalinga Sena, a regional political outfit, raised slogans against the State Government for its decision to hand over rich mineral resources to private companies without protecting the interests of the State and its people.