Tata Steel to resume work at Orissa plant
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24/07/2008
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Business Standard (New Delhi)
BS Reporter / Bhubaneswar July 24, 2008, 0:51 IST
Tata Steel expects to resume construction work for its six million tonnes integrated greenfield steel plant at Kalinga Nagar in Orissa by the end of this month.
"Our greenfield project in Kalinga Nagar is in good shape and we hope to start the construction work by July-end. We have already placed orders for construction equipment worth Rs 6,000 crore and these equipment will be sourced from China, Germany and from domestic suppliers," said B Muthuraman, managing director of Tata Steel.
He was talking to reporters on the sidelines of the inauguration of the Institute of Mathematics and Applications at Andharua, on the outskirts of Bhubaneswar.
Construction work of the greenfield steel project was delayed due to resistance from local tribals.
The steel major has so far shifted over 700 families out of the total 1,200 who are to be ousted by the greenfield project. The six-million-tonne integrated steel plant will be taken up in two phases and the project cost is estimated at Rs 20,000 crore.
The project would contribute Rs 2,200 crore every year to the government exchequer besides providing direct and indirect employment to about 20,000 persons. About the progress of the special economic zone (SEZ) being developed by Tata Steel in Gopalpur, Muthuraman said, "For the SEZ project in Gopalpur, there are issues relating to the contiguous nature of land, but we hope to resolve them."
The multi-product SEZ in Gopalpur is being developed by Tata Steel in partnership with the Orissa government on 3,000 acres.