June, 08 2005
Ispat gets K'taka nod for Rs 7k cr Raichur steel unit
Pulling off a major industrial investment coup, Karnataka has convinced Indias leading integrated steel maker Ispat Industries (IIL) to set up a Rs 7,144-crore integrated steel plant in Raichur.
The $2bn IIL, acknowledged as the seventh largest domestic private sector company, has proposed setting up an integrated steel plant with a capacity to manufacture 28,00,000 MTPA of hot rolled plates, coils and sheets.
The proposed integrated steel complex, being established on a 2,500-acre area in Raichur, comprises facilities like coke oven, pellet plant, DRI kilns, blast furnace, Conrac furnace, ladle furnace, conventional slab caster, thin slab caster, conventional odd strip mill and continuous hot strip finishing train.
The proposal was approved by a high-level clearance committee (HLCC) chaired by chief minister Dharam Singh on Monday, the first such meeting this fiscal.
Karnatakas large and medium industries minister PGR Sindhia, who briefed the media on the decisions of the HLCC meeting, said Ispat groups proposed project was expected to provide direct employment to 3,000 people. The government has promised to assist in acquiring the necessary land for the project at market rates and extend all other facilities to ensure speedy execution of the project MSPLs 1.2 MTPA iron ore pellet plant, 1 MTPA speciality steel plant and a steel plant with an initial capacity of 1 MTPA at a cost of Rs 2,292.3 crore in Halavarthy and Basapura villages of Koppal district are the other mega projects cleared by the HLCC, Mr Sindhia said.
He added that 14 mega industrial projects, involving a total investment of Rs 13,942.2 crore had been given clearance.
The other integrated steel, sponge iron and metallurgical coke plants cleared by the HLCC are Surana Industries Rs 562-crore integrated steel plant with 40 MW captive power generation unit in Raichur district; Kirloskar Ferrous Industries integrated steel plant for producing 5,00,000 MTPA of steel billets, blooms and bars at a cost of Rs 543 crore in the Halavartti village of Koppal district; Hospet Ispats Rs 64-crore sponge iron plant with 8 MW power generation unit in Allahnagar of Koppal district and Rasasri Steels Rs 92 crore project to manufacture 3 lakh MTPA metallurgical coke and 22.5 MW power generation at the Asundi village of Bellary district.
The HLCC also approved Bharati Shipyards Rs 95-crore project, which proposes to establish a ship building yard near old Mangalore port at Tannirbavi, the minister said.
Mittal Steel zeroes in on 3 sites for unit in Jharkhand
Mittal Steel, the worlds largest steel maker, has shortlisted three sites in Jharkhand as the possible location for its proposed $5bn greenfield steel venture in India.
The three sites are Manoharpur, Chandil and Chauka Kandra - all within three hours by road from the state capital of Ranchi.
A high-powered 14-member team from the LN Mittal group led by mines director MK Singh has gathered in Ranchi over the last two days.
Out of this team, four sub-groups have been formed to focus into four key aspects of the project - the proposed 10m tonne steel plant, the mines, finance and costing of the project and the infrastructure and transport linkages, sources told ET. Mittal Steel Company said in a statement, .
We are in discussions with the government in Jharkhand relating to such a project and are making a technical visit to the region to make a more detailed study of any potential investment in the metals and mining sector.
However, no decision has been taken as to whether we will proceed with the investment.
The team is likely to cover the finer details of the project and talk to chief secretary PP Sharma and industry secretary, SK Satpathy.
VSP workers continue stir
THE contract workers in the Visakhapatnam steel plant continued their strike, for the sixth day on Tuesday, and reiterated their resolve to persist with it for a minimum wage of Rs 4,000 per month.
At a meeting in the union office on Tuesday, Mr D.K Das, General Secretary of the Steel Workers' Federation of India, said the strike by 8,000 contract workers would be successful and they should intensify the agitation.
Mr D. Adinarayana, AITUC leader, said the attitude of the INTUC was reprehensible and it would have no impact on the strike. He said the INTUC did not have any strength among the contract labour.
Mr J. Ayodhya Ramu, Honorary President of the Contract Labour Union, warned the steel plant management that it should refrain from intimidating contract labourers. He condemned the INTUC for opposing the strike.
Mr N. Rama Rao, General Secretary of the Steel Plant Employees' Union, affiliated to the CITU, said it was shameful on the part of the INTUC to oppose the strike and "betray the interests of the workers."
The steel plant management in a press release issued on Monday said the strike had no impact on production. The management said that it had always ensured that minimum wages were paid to the workers in accordance with the State GO.
Besides, the minimum wages in Andhra Pradesh were higher than in other States where major steel plants such as Bhilai, Bokaro and Rourkela were situated.
According to the State Government GO, the unskilled workers should be paid minimum wages of Rs 2,386 per month, the semi-skilled ones Rs 3,020 and the skilled ones Rs 3,654.
The effective wages for the three catergories paid by the VSP management were Rs. 3,334, Rs. 4,220 and Rs. 5,106 respectively. Therefore, there was no justification for the strike, it said.
Iran-India gas pipeline gets Musharrafs nod
Pakistan President Pervez Musharraf today gave the go-ahead to the joint participation of India and Pakistan to set up the Iran-India gas pipeline passing through Pakistan. Estimated to cost $ 4 billion, it will meet the long-term gas needs of both countries.
Allaying US concerns about the deal with Iran, both countries aim to take off the project by early next year. It will include gas pipelines from Turkmenistan and Qatar to Pakistan.
In a joint statement issued at the end of three-day visit of Indian Petroleum Minister Mani Shankar Aiyar to Pakistan, both countries agreed the project, which envisaged the supply of gas to Pakistan and India through a transnational pipeline, would go a long way in meeting the energy security requirements of the two countries and, thus, should be seen as a significant project for the benefit of the peoples of these countries.
The Indian and Pakistani delegations agreed to exchange information on the financial structuring, technical, commercial, legal and related issues to realise a safe and secure world class project. A joint working group at the Secretary-level, would be set up in this regard.
He said Pakistan would consider Indias proposal to import 3,25,000 tonnes of diesel at a competitive price. India would submit its proposal in the Secretary-level talks, and expect that Pakistan would shift import of diesel to the positive list in the next review.
Reiterating his stand on the US concerns, Mr Aiyar told reporters: The issue of US pressure did not figure at all in my about hour-long meeting with the Pakistan President. However, he added that India was aware of US concerns but trusted that the USA would also take care of the energy needs of both countries.
Todays joint statement is in accordance with the joint press statement of April 18 in New Delhi issued by President of Pakistan Pervez Musharraf and Prime Minister of India Manmohan Singh.
Referring to the financing and involvement of India in the gas pipeline, Mr Aiyar said, Three stakeholders have enough capacity to fund a project worth over say, $ 5 billion spread over five years. However, he agreed with Pakistan Prime Minister Shaukat Azizs suggestion to follow the best financial practices to build a world class project that may require the involvement of financial institutions.
