On 21 December 2006, Arcelor-Mittal signed an MoU with the Orissa government for setting up a 12 million tpa steel plant in Keonjhar district. The investment in the proposed project is an estimated Rs.40,000 crore.

The complex will consist of a coke oven, steel-making, rolling mills, and a 750 MW captive power plant. The company has asked for 8,000 acres of land at the proposed location - 6,000 acres for the plant, 1,000 acres for the power plant and 1,000 acres for a township. The filing of the detailed project report is expected to take place within 18 months after which the preliminary DPR for the project will be prepared in six months.

The project will be implemented in two phases of 6 million tpa each. Phase I of the project, estimated to cost Rs.22,000 crore, is scheduled for completion within four years. Phase II of 6 million tpa is scheduled for completion within 54 months after Phase I.

The plant will annually require 125 million cubic metres of water, which is proposed to be met from river Baitarani and the Kanupur dam (under construction) close to the site. The company has also sought a special economic zone status for the plant.

Also See:

Arcelor-Mittal's 12 million tpa steel plant gets SASWCA nod (19-Dec-06)

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