Paradip Steel Complex - Phase 1 Due By March 2010

Essar Steel is likely to complete the Phase I of the 6 million tonne per annum integrated steel complex at Paradip in Orissa by March 2010.

The INR 2,249 crore Phase I of the project comprises construction of 8 million tonne per annum beneficiation plant at Dabuna, 8 million tonne per annum pellet plant at Paradip and construction of 253 km of slurry pipeline from Joda to Paradip. So far, the company has invested INR 1,000 crore in the project. Of the total, Phase I investment ie INR 2,249 crore, the equity component is INR 818 crore and the remaining INR 1,431 crore is the debt component. A syndication led by the State Bank of India will provide loans.

While 30% construction work of the pellet plant has been completed, the company plans to start the construction work of the beneficiation plant at Dabuna in next couple of days. The company requires 85 acre for the beneficiation plant while the requirement for the tailing pond is about 215 acre. Out of this, Essar has already acquired 80 acre and the company has submitted forest diversion proposal for 206.85 acre to the Union Government. Besides, the company has acquired 103 acre for the pellet plant at Paradip. It has also completed the work of 60 km of slurry pipeline from Joda to Paradip. All the statutory clearances have been accorded to the company by the nodal agencies. Besides, the company has received the in-principle approval for water from the state government.

Essar has already applied for iron ore mines in Mankadanacha, Badamgarh Pahad, Baliaparbat, Thakurani, Malangatoli and Khandadhar in the state. It requires about 10 million tonnes per annum iron ore for the integrated steel complex at Paradip.

Source: Steel Guru