Sajjan Jindal controlled JSW Steel has got the nod for establishing a 10 MnT pa shore-based steel plant at Paradip in the eastern state of Odisha. The project will cost the promoters INR 50,000 crore and when fully operational, generate jobs for 50,000 people.
The state government authorities did not clarify if the JSW project would come up on land abandoned by POSCO. Another project by JSW Steel- a slurry pipeline to be built at a cost of INR 3,700 crore from Joda to Paradip for transporting 30 MnT of iron ore per annum was also approved yesterday by the High Level Clearance Authority (HLCA). The HLCA chaired by the Chief minister is the highest body to clear investment proposals in Odisha.
“JSW Steel has asked for 4500 acres of land for their steel plant. But, it has not been decided if the project would come up at the POSCO site. The steel plant is expected to be commissioned in four years”, said Odisha’s Chief secretary Aditya Padhee.
Asked if JSW Steel had submitted a proposal for a commercial port, he said, the company has intent for a captive port but it has not come to the HLCA.
JSW Steel has proposed to set up the port in Odisha at Jatadhari river mouth, 13 km south of the Paradip port. The port project is proposed to be set up through JSW Infrastructure Ltd, the infrastructure arm of JSW Steel Ltd.
Jatadhari river mouth is the same location where POSCO India had sought to establish its captive port to cater to the requirement of its mega steel plant.
JSW Infrastructure has proposed to build the port on build, own, operate and transfer (BOOST) basis on long-term lease from the Odisha government. Since the port is proposed to be developed as a commercial port, no wharfage would be applicable and the government revenue accruals would be based on revenue sharing basis as fixed by the government from time to time, the company said.
The capacity of the proposed port by JSW Infrastructure or its investment size is not known.
For its integrated steel mill, JSW Steel has asked for 2700 acres of land that has already been acquired for the Posco project. The company desires that this patch of land should be transferred by the state government after constructing the boundary wall. Aside from the steel plant, the company has asked for around 150 acres of land for township and 90 acres for rehabilitation & resettlement (R&R) colony.
JSW Steel has urged the state government to transfer all the land parcels at the rate of INR four lakh per acre.
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