December 02, 2008

Essar starts work on pallet plant in Orissa

BS reported that Essar Steel Limited has started work on its 6 million tonnes steel project at Paradip in Jagatsingpur district.

Essar is investing INR 20,000 crore in the project. In the first phase, it is putting up an 8 million tonnes iron ore pellet plant with a 253 kilometer long pipeline from Joda to Paradip at a cost of INR 2,700 crore. Plant, pipeline and steel making facilities will be ready by 2010 and 2012.

Mr HS Sethi director of Essar Steel Orissa said that “Civil construction work has started on 104 acre now at our disposal. Instead of waiting for completion of the total land acquisition, we have commenced work on whatever land is available to us.” He added that the progress of pipeline laying work and acquiring the rest of the land was also satisfactory.

Mr Sethi said that “We have already committed INR 6,000 crore for the project. Of this, INR 4,000 crore will be used for booking equipment. Our project is well on schedule and it will come up within the targeted time frame.”

He added that “We are quite hopeful of getting the iron ore mines linkage. The state government has assured us of the required raw material supply for the pellet plant.”

Essar has applied for iron ore mines linkage for the plant. The company has an eye on Thakurani mines which is rich in high grade ores. Essar which at present has a steel making capacity of 4.6 million tonnes has also signed MoUs with the Jharkhand and Chhattisgarh governments to set up projects of 6 million tonnes and 4 million tonnes.