Odisha expects JSW Steel project to begin soon after successful hearing

Odisha expects work on the proposed Rs 53,700-crore integrated steel project at Jagatsinghpur in Paradip by Sajjan Jindal-led JSW Group to start soon following successful conclusion of a public hearing, a state official said on Sunday.

The consent of local people to the 12 million tonne per annum steel project holds significance as South Korean steel gaint POSCO had to abandon its proposed Rs 52,000-crore steel project at the same site due to stiff opposition from the local people.

"JSW's hearing was conducted peacefully and successfully. That is a huge development. The integrated project has been passed unopposed with almost same investment that POSCO was looking ... that is a change ... We expect the work to start soon on Rs 53,700 crore JSW project Utkal Steel Limited project," IPICOL Managing Director Nitin B Jawale said.

The Industrial Promotion and Investment Corporation of Odisha (IPICOL) is the single point of contact for all industrial investments in the state.

"The success of this public hearing paves way for the establishment of an Integrated steel plant of 12 MTPA capacity, 10 MTPA cement plant and a 900-megawatt captive power plant by the Sajjan Jindal-led group, on an area of 2,980 acre. An all-weather multi-cargo greenfield jetty with handling capacity of 52 MTPA is also part of the project," Jawale said.

However, sources told PTI that JSW has not received the required 2,980 acres of land and th project will take time as formalities, including land handover, erection of boundary, will take time.

When contacted, JSW declined to comment sighting silent period. The company's financial results are slated for January 24.

Jawale said conclusion of peaceful public hearing is a positive development for Odisha and "a major milestone in its industrialisation efforts" as the proposed steel plant is on the same site where the Korean steel giant POSCO's project was envisaged and there was no opposition from the locals.

"The erstwhile opponents of the POSCO project have also welcomed the JSW project now, demanding an ideal rehabilitation and resettlement package from the state government. This development will also help dispel the prevailing misconceptions about this region and with a major port in the vicinity the Paradip in Odisha is poised for diversified industrial growth," he said.

POSCO had entered into a pact with Odisha government in 2005 to set up more than Rs 50,000 crore steel unit but dropped the plan after facing stiff opposition from locals for more than a decade.

The official also claimed that Odisha recently toppled Maharashtra in attracting new investments in the first half of this fiscal and "cornered 18 per cent of virgin investments drawn by all states in the country."

He said through progressive policy interventions called VISION 2030 , the state aims to do more than 50 per cent value addition to the metal produced in the state by the year 2030, by attracting and grounding downstream industries in metal sector.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel