Jindal Strips' Duburi Project On Course
(by PTI, Bhubaneswar - May 12, 2003 FINANCIAL EXPRESS)

Jindal Strips Ltd (JSL) has decided to go ahead with its proposed one million tonne per annum capacity integrated stainless steel project at Duburi in Orissa's Jajpur district, according to JSL president for Orissa project NK Taori. The Rs 4,525-crore project would be set up in two phases, he told a news conference here last night. While the Rs 775 crore first phase would involve setting up of a large ferro-chrome plant of 1,50,000 tonne and a melt shop for producing 5,00,000 tonne stainless steel, facility for producing another 5,00,000 tonne steel through the blast furnace and sponge iron route would be added in the second phase with an investment of Rs 3,750 crore, Mr Taori said. The company, which had selected Mecon as its consultant for the steel project, had already selected 1,500 acres for the project to be allotted by the state-run Infrastructure Development Corporation of Orissa Ltd (IDCO). The memorandum of understanding (MoU) for the project would be signed between the company and the government very soon, he said, adding that the company was going ahead with its ground work without waiting for the MoU to be signed.

Asked whether the company had been provided the mining lease for the project, Mr Taori said the government has assured us supply of the required mineral. JSL had found itself in a controversy recently over the government for a joint venture between the company and state-owned Industrial Development Corporation of Orissa Ltd (IDCOL) for exploration of over 505 hectares of land for chrome ore deposits at Tangarpada in Dhenkanal district. The matter is presently under inquiry by a house committee of the Orissa assembly following charges of irregularity in the deal.

Pointing out that there was no stainless steel manufacturing unit in Orissa at present, Mr Taori said value addition to chrome ore and other raw material would be to the tune of $1,000 to 1,200 per tonne compared to only $50 to 60 per tonne of chrome ore. The total turnover of JSL's Duburi plant would be Rs 5,000 to Rs 6,000 crore per annum while the government would earn revenue to the tune of Rs 800 to Rs 1,000 crore per annum with its existing taxes and duty structure.

Power being vital to the establishment of such a plant, Mr Taori said JSL had already requested the state government and Grid Corporation of Orissa Ltd (Gridco) to immediately allot 150 mva power through 220 kv line from new sub-station at Duburi. The power import from the grid would be 300 mva in the second phase. The company, he said, had initially decided to set up a 1.8 million tonne facility at Duburi but subsequently scaled down the capacity to 1.1 million tonne at the request of the government as the chrome ore deposit was limited.