The Essar group has reportedly planned to set up a 3.2 million tpa greenfield integrated steel plant at Chhattisgarh, it is learnt.

An MoU between Essar Global -- a new group company that would implement the project -- and the Chhattisgarh state government is likely to be signed today (5 July 2005.)

The plant, estimated to cost over Rs.8,000 crore, will come up in two modules of 1.6 million tpa each in the Bastar district of the state. Essar will submit a detailed project report to the state government within three months of signing of the MoU.

The state government has already assured to treat the project on a priority basis. The company has also been assured of full quantity of iron ore from the Bastar region known for its high iron containing ore.

This would be the fourth greenfield steel plant announced by the group in the recent past, after those in Orissa, Andhra Pradesh and Jharkhand.

(Note: There is no news currently available with ProjectsToday on Essar's proposed steel plant in Jharkhand.)