The Orissa government on 3 November 2005, signed MoUs with six companies and a final agreement with Bhushan Steel & Strips for setting up a 12.35 million tpa steel capacity in the state with an investment of Rs.22,975 crore.

The MoUs signed included the one for the revised project of Jindal Steel & Power Ltd (JSPL). The company had signed an MoU with the Orissa government for setting up a 2 million tpa steel plant at Deojhar in the Keonjhar district at an estimated cost of Rs 4,000 crore in October 2004.

The company later changed the scope of the project by scaling up the targeted capacity to 6 million tpa and the estimated investment to Rs.13,135 crore. It has also shifted the location of the plant to Angul. 

Similarly, Bhushan Steel & Strips, which had earlier signed an MoU with the state government for building a 3 million tpa plant at Meramundali in the Dhenkanal district at an investment of Rs 5,828 crore, entered into a firm agreement after project plans made substantial progress.

The other projects for which MoUs were signed included the ones being set up by Rungta Mines Ltd (2 million tpa; Rs.2,275 crore), Stats Steel India (P) Ltd (5 lakh tpa; Rs.855 crore), Jai Balaji Jyoti Steels (3.3 lakh tpa for Rs.321 crore), Brand Alloys Ltd (2.7 lakh tpa for Rs.307 crore), Eastern Steels & Power (2.5 lakh tpa tpa for Rs.254 crore).

With this, the total number of MoUs signed by the state over the last two years for setting up steel plants has gone up to 44 (including the mega-steel project of South Korean major Posco). Together, these MoUs envisage a capacity addition of 55 million tpa of steel at an estimated investment of Rs.1,41,000 crore.

Also see:

Orissa steel rush: More MoUs on the anvil (02-Nov-05)