Bhubaneswar: Odisha, which containts almost 35 % of India’s
Iron ore reserve is fast becoming the hub for pellet making. With more than 25
companies have proposed to setup pelletisation plants in the state, experts
foresee Odisha’s pellet production capacity to touch 40 million tonnes per
annum in the next 5 years.
Recently, in the month of May the state
level task force on Steel has received as many as 20 proposals including from players
like N R
International, Aryan Ispat & Power Ltd, Shyam Metalliks and MSP Metalliks.
Most of the developers are small to medium scale players and are keen to set up
their projects in iron ore rich Sundergarh and Keonjhar districts. However,
most of these proposed projects are small and medium with capacities between 1
and 2 mtpa. and are intended to set up in the iron ore rich districts like
Keonjhar and Sundargarh.
Previously,big players like Essar Steel, Bhushan
Steel, Essel Mining, JSW Steel, Brahmani river Pellets, ArmStrong Pellets, Jayswal
NECO, Welspun Power & Steel, Shyam Steel and Guntermann Peipers have signed
MoUs with the state government to set up
iron ore Benification and Pelletisation plants with capacities ranging
from 2 to 6 million tonnes per annum. According
to reports, some of these projects are at the advance stage of commissioning.
Essar Steel, Which is setting up a 12 mtpa Pellet
Plant near Paradeep has already commissioned the phase-1 of its project of 6
mtpa capacity and as per reports it has started shipping pellets to its Hazira
unit. The company is expected to commission the Phase-2 by the end of 2013. With this, the total pellet capacity of the company to go
up to 20 mtpa including the 8 mtpa capacity at Vizag making Essar Steel the largest pellet producer in India
Steel major Jindal Steel and Power (JSPL) also
setting up a 5 mtpa pellet plant at Barbil,Keonjhar.
On the other hand the Stemcor group owned Brahmani
River Pellets (BRPL) is also setting up a 4 million tonnes per annum Plant at
Kalinganagar and is expected to be commissioned n 2013.
Odisha produces almost 70-75
million tonnes of iron ore annually and 50% of it is fines mainly exported to
China. However with high export duty (30%), export of iron ore has become nonviable. On the other hand the domestic steel Industry is yet to acquire
suitable technology to consume fines, leaving Pelletisation the only way, said the
vice-president of a leading Mining company which has also proposed to set up a
pellet plant. “If most of the proposed projects get implemented, the total
pellet production capacity will touch 40 million tonnes per annum by 2017.†He
said.
However, some industry persons see the growing
pellet industry is also going to face the raw material problem. “Without
captive mines or raw material linkage this industry would also face similar
problems like the Sponge iron Industry†says All Orissa Steel Federation
Chairman P.L.Kandoi.
Few months back , the state task force on steel
had recommended the 4 mtpa pellet
project proposal of Bhushan Steel to the
High Level Clearance Authority (HLCA) with
certain conditions like no raw material linkage commitment and also
the project would not be located on a mineral bearing area or command
area of any irrigation project.
Reported by Tapan Moharana
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