TATA Steel inked a Memorandum of Understanding (MOU) with the government of Orissa on 17 November 2004, for installing a six million ton green-field integrated steel plant at Kalinganagar in Jajpur district of Orissa. The total installation cost is estimated at US$ 3 billion. The installation process is divided into two modules, and each module’s capacity is three million tons. Installation of the first module will take a period of 4 years, and includes a blast furnace, coke ovens, sinter plant, caster and a rolling mill. The second module will be installed in a period of 2 years.
In June 2007, the development process for the first phase of the project was contracted to Hindustan Construction Co. The contract is valued at US$ 15 million and involves execution of key installations such as the coke oven and raw material handling system. The UK-based SMS Mevac has been contracted to design and supply equipment for desulphurisation of hot metal and refining of steel.
As a part of the project TATA Steel is also developing captive iron ore mines to feed the plant. Townships for housing the employees are also being constructed. The plant is estimated to generate employment for thousands of people. The entire development process is environment friendly and ensures high quality life to the workers. TATA Steel conducted a feasibility study for developing a Special Economic Zone (SEZ) in the Gopalpur region. A Special Purpose Vehicle (SPV) was established between the government of Orissa and TATA Steel to proceed with the SEZ development process. The company has also planned to set up a cold rolled steel processing center at Gopalpur at a cost of US$ 112 million, which will be a part of the forward integration process of Kalinganagar Steel Plant. TATA Steel also formed a joint venture with Larson and Turbo for developing a world class port in Orissa at a cost of US$ 336 million to support the steel plant.
|Project Name||Tata Steel plant|
|Location||Kalinganagar, Jajpur district of Orissa|
|Estimated Investment||US$ 3 billion|
|Key Players||Hindustan Construction Co|