Odisha on Tuesday approved five investment proposals worth Rs 1.46 lakh crore in the steel sector with an eye to double its steel production from existing 30 mn t pa to 57.5 mn t pa
These are:
1.Bhushan Power and Steel Limited’s expansion from 5mn t pa to 15 mn t pa with an investment of INR 55,000 crore. JSW which acquired the bankrupt steel plant in Jharsuguda has also committed to building a greenfield plant in the coastal district of Jagatsingpur.
2.Tata Steel’s Kalinganagar plant’s 3 mn t pa to 8 mn t pa expansion. This is not a new capex but one the steelmaker had announced a few years ago. On Tuesday speaking to investors, the steelmaker said it expected this to be complete by FY24. It said it would invest Rs 50,000- 60,000 crore over the next five years, increasing combined capacity of its plants at Jamshedpur, Kaliganagar and Angul (Bhushan Steel) to 40mn t between FY 25 and FY 30 and raising iron ore capacity to 50mn t pa.
3.JSPL Angul plant’s expansion from 6 mn t pa to 25.2 mn t pa at an estimated cost of over Rs 1 lakh crore. The steelmaker claimed this would make it the largest single location steel plant in the world. In November 2021, the state had already approved an expansion to 18.6 mn t pa that JSPL estimated would cost Rs 76,000 crore.
4.Expansion of Rungta Mines Limited steel plant at Dhenkanal from 2.85 mn t pa to 7.55 mn t pa with an investment of Rs 11,001 crore and of its Keonjhar unit from 0.53 mn t pa to 3 mnt pa with an investment of Rs 7920. The group, one of India’s largest iron ore miners, has lost mining rights to many of its old leases which lapsed in March 2020. The Centre has decided to remove captive consumption as a condition from any future auction.
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