Orissa govt clears another Steel Plant proposal

Bhubaneswar, Oct 10 (UNI) The Orissa government today cleared the Welspun Power and Steel company's proposal for setting up of a 3 MTPA Steel plant in the state at an investment of Rs 5503.80 crores.

The High Level Clearance Authority (HLCA) chaired by Chief Minister Naveen Patnaik gave its assent for the Steel plant proposed to be set up either in Bhadrak or Cuttack district.

Official sources said the government would sign the MoU with the company tomorrow in this regard.

Last month the HLCA had cleared the proposal for setting up of four mini steel plants with an investment of Rs.1720 crores. The state government had proposed that MoU with the four companies would be signed in October 2006.

The state government had so far signed 43 MoUs with the private companies for setting up of Steel plants in the state with a total investment of more than two lakhs crores.

Of these 43 MoUs, the state government had issued show cause notices to at least ten companies and cancelled the MoU with three companies for not taking any interest in setting up of the plants.

Official sources said the four companies who had evinced keen interest to set up the mini steel plants were Scan Steel, Bhaskar Steel and Ferro Alloys, Sri Mahabir Ferro Alloys Limited and Maa Samleiswari Industries limited.

The Welspun Power and Steel Company would like to produce steels labs, ductile iron, spiral pipe and liquid steel. The company would in consultation with the government identify the land for the plant.

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