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Wed, 18th Nov 2015 (Source:Business Standard)
Terming Tata Steel's Kalinganagar steel facility a milestone in Odisha's industrial progress, Chief Minister Naveen Patnaik said investment on the project -- the company's only greenfield plant apart from Jamshedpur -- could go up to Rs 1 lakh crore by 2025. "In the first phase, Rs 25,000 crore has been spent byTata Steel (on the Kalinganagar project), creating direct employment opportunity for 3,000 people and indirect employment for 22,000 people", Patnaik said here after dedicating the plant to the state.
Tata Steel had originally planned a 6 million tonnes per annum (mtpa) steel plant at an estimated cost of Rs 45,000 crore. Ramping up capacity to 16 mtpa would entail an additional investment of Rs 55,000 crore, taking the steelmaker's total investment to Rs 1 lakh crore. "We have invested Rs 25,000 crore in the first phase. We will be investing Rs 2,000 crore on developing the iron ore mines at Khandabandh that will feed the Kalinganagar plant. Kalinganagar would be the largest single location greenfield steel plant in the country," Tata Steel chairman Cyrus Mistry said.
"Ten years later," he said, "this would be a much bigger industrial ecosystem." T V Narendran, managing director (India & South East Asia), Tata Steel, said the Kalinganagar plant will deliver a wider product range, and would strengthen the company's presence in auto and oil & gas sectors. Initially, iron ore from Joda mines will cater to the plant's first phase requirement till 2017. Subsequently, the Khandabandh mines, which have a mining capacity of 5 mtpa, will meet the plant's requirement through 2020. The steel firm has been alloted 3,470 acres of land for the Kalinganagar project, which will produce high end flat steel products.
"The Kalinganagar plant will enhance the future competitiveness of Tata Steel in terms of cost competitiveness and profitability and this investment demonstrates Tata Steel's alignment with the Government's Make in India strategy," said Kaushik Chatterjee, group executive director (finance & corporate).