The Murugappa (Tube Investments of India) group has proposed to set up an integrated steel plant in Orissa. An MoU to this effect was signed between TII and the Orissa government on 21 April 2005.

The plant, to come up in two phases, will have an ultimate capacity of 3 million tpa. Investment in the first phase is likely to be around Rs.3,500 crore. A power plant of 60 MW also forms part of the project.

The Orissa government has reportedly offered 2,500 acres of land at Kalinga Nagar near Duburi in Jajpur district for the project. The state has assured full support to the project, including iron ore mining lease, which will be given after the promoter commits 50 per cent of the proposed investment.

This is the first major investment of the TI group, outside Tamil Nadu. Steel produced at Orissa would be used for internal consumption for the group's products -- cycles, tubes and metal formations.

The group would be floating a separate company for implementing the project, it is learnt.

This is the second major steel project in Orissa announced during April 2005, the first being that of the Ispat group.

Also See:

Ispat plans greenfield steel project in Orissa (16-Apr-05)