Development of Steel Industries in Odisha - Industrial Scenario - SL-1

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Development of Steel Industries of Odisha

When we talk about the growth potential of Iron Ore based Industries in Odisha, our
state is considered to be mineral hub of India with 92% chromite,92% Nickel,52%
Bauxite,44%Manganese,33% Iron Ore and 24% Coal reserves of the country. The
state is the largest producer of stainless steel in the country and has more than 20%
of steel making capacity of the country. Major Steel producers like TATA steel,
Bhusan Steel Limited (BSL),Bhusan Power and Steel limited(BSPL), Jindal Stainless
Steel(JSL)and Jindal Steel and Power Limited have their mother plants in the sate
besides ESSAR Steel Limited which has started pellet production in the 1 st phase to
be followed with setting up an integrated Steel Plant.

Surrounded by these large mother plants, a National Investment and Manufacturing


Zone(NIMZ) is being developed at Kalinganagar. Spread over 160sq km, the zone
is envisaged to become a self contained ecosystem along with residential,
commercial and social amenities and will enable the potential investors foer setting
up value added downstream facilities. The Union steel ministry is confident that the
Kalinganagar industrial complex in Odisha can contribute 20 per cent of the country's
targeted 300 million tonne steel capacity by 2030. "Odisha is blessed with all kind of
minerals. There is scope for a steel hub here. We are expecting at least 20 per cent
of the new capacity to meet the targeted 300 million tonne steel output capacity by
2030-31 will come from Kalinganagar", said Union steel minister Chaudhary Birender
Singh, who attended the Steel Consumers Council meeting at Bhubaneswar some
times in June 2017. The NIMZ is expected to attract investment of Rs 1.5 lakh crore
and generate employment for 4,50,000 people after its completion. The
manufacturing zone is expected to attract investment from varied sectors like metal
and mines, automotive, steel, and downstream industries. The steel ministry is
eyeing to grab about 10 per cent of the Rs 4 lakh crore infrastructure budget
allocated to various sectors by maximising the utilisation of the steel.

Leaving aside these mega steel projects, our state have number of small and
medium steel plant who are producing steel through secondary route ie. SIP-EAF/IF-
Rolling mills. These units are also contributing a lot in enhancing the steel production
of our state. Also, there are number of standalone sponge Iron Plants and Pellet
plants who are also producing various input materials for making steel.
When we talk about the growth of steel, our state has made significant contribution in
national steel growth with respect to capacity building in terms of installed capacity.

M/s Jindal Steel works (JSL )has proposed a mega steel project of 10 MTPA with
900 MW power plant with an investment of Rs.50,000Crs and M/s Bhusan power
&Steel Limited have proposed for addition of downstream facilities and CPP of 150
MW with an investment of 4252 Crs which are active consideration of Govt.

In fact, an exclusive Directorate has also been established recently to facilitate


further growth in the steel sector.

There is a significant production growth in 2016-17 in compare to 2015-16.

The steel scenario of Odisha for 2 years is summarised below.

Annual Production Summary Report


IN MTPA

MOU / APPROVED INSTALL Annual Growth


COMPANY TYPE 2015-16 2016-17
CAPACITY CAPACITY (%)

A MOU(STEEL) 80.76 20.96 6.799 10.172 49.61

B NON MOU(STEEL) 27.97 7.13 3.167 3.219 1.65

C SI UNITS PRODUCING STEEL - 0.40 0.000 0.068

TOTAL(STEEL) 9.966 13.459 35.05

D SPONGE IRON ESTIMATED CAPACITY: 13.46 5.813 6.209 6.81

CAPACITY :
E PELLET
28.85
9.900 14.702 48.51

F PIG IRON / FERROSHOTS - - 0.000 0.867

GRAND TOTAL(IRON ORE BASED


INDUSTERIES)
25.679 35.238 37.22

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