September 07, 2008

TATA Steel to start construction on Orissa plant by June 2008

FE reported that TATA Steel is planning to start construction of its 6 million tonne steel green plant at Kalinga Nagar in Orissa by June 2008 and is awaiting delivery of advanced equipment worth INR 4,500 crore anytime now.

Mr Partha Sengupta VP corporate services at TATA Steel said that “We are in the process of vacating the land and are hopeful that construction should begin by June 2008.”

TATA Steel is hopeful that the issues relating to mining leases of iron ore required for backward linkages would be resolved by the time production process starts. It intends to produce 3 million tonnes of hot rolled steel by 2011 and would increase the capacity to 6 million tonne subsequently.

It may be noted that Orissa has already allotted about 2,000 acres of land to TATA Steel. Meanwhile the project office at site has initiated the construction of the boundary wall and other preparatory works at Kalinga Nagar industrial complex.