The Odisha
government has officially admitted that 3 steel plants and 1 Power plant have
been abandoned/dropped their projects in Odisha. As per the information
provided by Industries Minister Niranjan Pujari the steel Projects that have
been dropped are Deo Mines & Minerals (p) ltd at Thiaberena (Sundargarh),
Maharastra Seamless at Kalinganagar (Jajpur), Arcellor Mittal at Keonjhar. The Only Power project that has been abandoned is Essar Power ltd's
Parajanga (Angul) thermal power project.
The Odisha
government has signed more than 49 MoUs with several steel companies and till
date as many as 38 steel plants have started partial production, the minister
said.
The world's
largest steel maker Arcellor Mittal has dropped its Odisha project in July 17th
citing significant external delays in acquiring land and ensuring captive
supply of Iron ore. The company had signed an MoU with the state government in
2006 to set up a 12mtpa steel plant in Keonjhar district with an investment of
40 thousand crore.
Even as the
state government has officially declared that only 3 steel projects have been
dropped, there are many more in the pipeline and have almost dropped their projects
in the state. Strelite group's steel project proposed at Keonjhar has been
stalled. Similarly projects of Tata Sponge (Joda) and Sunflag iron (Angul) have
been deferred or kept on hold. As per the sources the projects of Uttam Galva
and Welspun have not acquired any land so far even after several years of
signing the MoU and are expected to exit from the state.
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