PARADIP: Essar Steel is all set to commission its pellet plant in about a week here to pave way for setting up its proposed 6 MTPA integrated steel plant.
“Our proposed 12 MTPA pellet plant is likely to start production in about a week in Paradip where we want to replicate the success story of Hazira complex,” said Essar Steel India’s MD and CEO Dilip Oommen here on Sunday.
After doubling the capacity of Hazira complex to 10 MTPA making it the largest single location flat steel producer in the country, Essar is keen to commission its Paradip project with an initial capacity of 6 MTPA, he said.
Charging operation for the pellet plant had already been completed and the unit’s capacity would be raised to 12 MTPA within a year, Oommen said.
Next on the agenda is the setting up of a 6 MTPA integrated steel plant (ISP) at the same site in Paradip for which an MoU already exists, Oommen said expressing hope that the government would ensure a level- playing field for both domestic and international players.
“Establishing an ISP will be the most logical move after putting the pellet plant in full steam and we hope the Government would give equal treatment to both domestic and international investors while offering opportunities like mining lease and other facilities,” he said.
Stating that about 1,500 acres of land would be required for the purpose, Oommen said over 250 acres had already been acquired and the acquisition process was on. The company has already spent about Rs 250 crore in Odisha.
Along with the pellet unit, Essar is working on a corresponding 12 MTPA beneficiation plant at Dabuna and slurry pipe line in close proximity to major mining sites, he said. During construction of the plant at Paradip and Dabuna, about 5,000 people were engaged, of whom 80 per cent are from Odisha.
Project Director of Essar Steel Orissa Limited (ESOL) PK Gupta said plans were afoot to set up a jetty port in the Mahanadi river at Paradip for cargo operation for its ISP. A clearance from the MoEF is awaited, he added. According to an estimate, on becoming fully operational Essar Steel will approximately contribute Rs 640 crore annually to the State exchequer in terms of taxes.