“Our second phase expansion is doubtful”, says Arun Mishra, head of Tata Gopalpur ferro chrome project
Indian Steel major Tata Steel, which had earlier announced to set up Asia’s largest ferro chrome manufacturing complex in Odisha’s Gopalpur, is now unsure about its plan. While, the first phase of the ferro chrome plant with 55,000 TPA capacity is expected to be commissioned by the end of this year or early next year, the company is in doubt about the second phase expansion. The reason being attributed to the merchant status of its chrome mine at Sukinda, whose lease period will expire by 2020.
“Since our chrome mine has been granted merchant status, which means that the lease validity is till 2020, we are in doubt about our second phase expansion” said Mr Arun Mishra, Vice-President, Gopalpur project.
Last year Tata steel has announced that, in addition to the ongoing 55,000 TPA ferro chrome plant, another 240,000 TPA capacity will be added in the second and subsequent expansions at Gopalpur in Odisha.
As per the new MMDR Act 2015 all merchant mining leases will expire in 2020 and all the merchant blocks will be put on auction after that.Tata Steel’s Sukinda Chrome mine has been accorded merchant status few months back and the company has already started producing ore from the mine about a month back.
Tata Steel is also setting up a multi- product Special Economic Zone (Zone) at Gopalpur keeping its ferro chrome complex in the centre and in the process to attract investment in sectors like defense, LED, electronics , solar cell etc.
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