Orissa nod to projects worth Rs 7,225 crore

The Orissa government has approved four projects in the steel and power sector involving investment worth Rs 7,225 crore (Rs 72.25 billion).

The decision was taken in the meeting of the high level clearance authority, chaired by Chief Minister Naveen Patnaik  in Bhubaneswar on Friday.

The projects approved include the second-phase expansion of Adhunik Metalics, capacity expansion of KVK Nilachal Power Ltd, setting up of a power plant by Monet Ispat and Energy Ltd and capacity expansion of Tata Power Company Ltd.

While a fresh memorandum of understanding would be required for Monet Ispat to set up the power plant, for others, the existing MoUs would be modified, said Industry Secretary Ashok Dalwai.

Dalwai said Adhunik Metalics had signed the MoU with the state government to set up a steel plant with 0.15 million tonne a year

capacity at Kuanarmunda, near Rourkela.

The company has proposed a second-phase expansion which will take the production capacity to 0.26 million tonne a year. Post-expansion, the total project cost will go up to Rs 437 crore (Rs 4.37 billion) from Rs 197 earlier.

For steel production, the company will shift to a mini blast furnace route from the present sponge iron route, post-expansion, he said.

KVK Nilachal Power's proposal seeks expansion of capacity from the existing 600 Mw to 1,200 Mw. This will take the total cost of the project to Rs 5,000 crore (Rs 50 billion) from Rs 2,580 crore (Rs 25.80 billion) earlier.

The state is likely to get Rs 180 crore (Rs 1.8 billion) in the form of taxes and other levies. That apart, Orissa can purchase 270 Mw power at the rate decided by the power regulator. About 1,320 people will be employed in the
project.