Eastern India’s Steel Production Set for Major Expansion

Aug 20, 2021

Odisha announcement creates ripples in Italian industry

By Pratapaditya Mishra


Odisha is fast emerging as the manufacturing hub of the East in India through its industry-friendly environment and policy framework.

Last July, in a major success for Odisha and for Chief Minister Naveen Patnaik’s ‘Vision 2030’ of making Odisha the ‘Steel Hub of India’, the state’s High-Level Clearance Authority (HLCA) issued in-principle approval for five major industrial projects to the tune of Rs 1,46,172 crores in metal and metal downstream sectors.

The mega investment proposals were in the metal sector starting from beneficiation to manufacturing of pellets, iron, steel, stainless steel, and rolled products as well as cement utilising waste products like slag and fly ash from other industries.

After approving the projects, the Chief Minister has put emphasis on the importance of accelerating the growth of industries in the state and has directed all the departments and agencies of the state government to work in a coordinated manner to achieve the goals of rapid industrial growth.
The Chief Secretary has been assigned to review the progress of these projects and update the Chief Minister on a regular basis.

The policy of setting up mega plants, primarily steel plants, is a culmination of the government’s efforts towards bringing in investors for wealth creation and employment generation through supportive policy reforms such as the National Steel Policy as well as facilitative infrastructure.

The five expansion projects cleared in HLCA are:

  1. Bhushan Power and Steel Limited’s integrated steel plant from 5 MTPA to 15 MTPA with an investment of Rs. 55,000 crore to be set up in Rengali, Sambalpur.
  2. Tata Steel Limited’s Crude steel production from 3 MTPA to 8 MTPA, Hot rolled coil from 3 MTPA to 7 MTPA, 2.2 MTPA cold-rolled products and 2 MTPA long products with a total investment of Rs. 47,599 crore to be set up in Kalinga Nagar, Jajpur.
  3. Jindal Steel and Power Limited’s 6 MTPA existing Integrated steel plant from the proposed capacity of 18.6 MTPA to 25.2 MTPA with an investment of Rs. 24,652 crore to be set up in Angul. This investment will take JSPL’s total investment to Rs. 1,00,670 crore, making it the largest single-location steel plant capacity in the world.
  4. Rungta Mines Limited’s Integrated Steel Plant from the proposed capacity of 2.85 MTPA capacity to 7.55 MTPA by adding capacity of 4.7 MTPA against an investment of Rs. 11,001 crore to be set up in Jharbandh, Dhenkanal.
  5. Rungta Mines Limited’s Steel Plant capacity from 0.53 MTPA to 3 MTPA with an investment of Rs. 7,920 crore to be set up in Karakhendra, Keonjhar.

With this additional steel making facility of 28 MT, Odisha is poised to achieve 100 MT Steelmaking capacity by 2030.
All these projects are expected to generate employment opportunities for over 27,000 persons.

Not to forget that just a few months back in March 2021, ArcelorMittal-Nippon Steel India and the Odisha government signed a pact for setting up the 12-million-tonne integrated steel plant in the state’s Kendrapada district with an investment of Rs. 50,000 crore.

ArcelorMittal-Nippon mega steel plant in Kendrapada will benefit from massive infrastructure developments across the region. This mega steel plant in Kendrapada is expected to bring a new wave of economic development and employment generation in Odisha.

These announcements by Odisha Chief Minister, Naveen Patnaik have positive effects in Europe, particularly in Italy and it has created ripples there. Some of the big companies have already started showing interest in collaborating with the industries in Odisha and to begin with, it is likely to be the Angul based unit of JSPL.

JSPL’s mega single-plant investment in Angul is particularly praised by Mr Mario Bodini, CEO of Sideridraulic System SpA; this leading international provider of technologies for water treatment in the steel making process is based in Italy and a major player in Europe.

This Italian company has been a pioneer in metal development, with its innovative products in the hydraulic automation and water purification sectors. It takes its place alongside Danieli, which accompanied the company’s growth in steel, as well as other groups like Techint, Dalmine, Thissen Group, Arcelor Mittal and many others around the world.

“As Sideridraulic we are in charge of water treatment in Europe’s largest steel plant, ex Ilva Taranto in Italy, a full-cycle steel mill co-owned by Arcelor Mittal and Acciaierie d’Italia” said Mr Bodini.

“On the basis of our experience with the major industrial efforts made, it takes courage to expand and revamp a mega steel mill. We really admire JSPL’s challenge to create the world’s largest single location steel plant in Odisha”, he added.

Sideridraulic’s System is used in steel plants for water treatment plants, water-cooling systems, make-up water treatment equipment for the production of osmosed and demineralized water and biological treatment plants for industrial wastewater.

The city of Brescia, in which Mr Bodini has his plant, is not only appreciated for its architectural splendour but also it is very well known as the hub for metallurgical and industrial activities. It is a pioneer in transforming industrial waste to energy and catering to the needs of the residents.

Bodini is an important member of the relevant industrial association and the likely collaboration of Sideridraulic with JSPL is being viewed with great interest by its other members. It is quite likely that others will follow Mr Bodini and this will certainly augur well for a Brescia-Odisha industrial collaboration in the future.

Eastern India is expected to not only play a pivotal role in driving the national growth but also in propelling India towards becoming a $5 trillion economy. Odisha shall be the nerve centre in steel.
While the Corona pandemic may have stunted growth for over a year, the aspiration and enthusiasm of investors and government are not muted at all.

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