Tata Steel’s SEZ may house downstream steel unit
Tata Steel is in talks with a Russia-based firm to set up a facility for downstream steel products at its Gopalpur Industrial Park in Odisha.
Spanning over 2,970 acres, the park includes a multiproduct special economic zone (SEZ) over 2,570 acres and an anchor project by Tata Steel over 400 acres.
“Discussions are on with a Russian company for a steel downstream plant. We have exchanged data and are inviting investments in priority sectors identified by the Odisha government,” said Arun Misra, managing director of Tata Steel SEZ Ltd and vicepresident of Project Gopalpur.
Tata Steel has invested over ~500 crore on a ferrochrome plant with an annual production capacity of 55,000 tonnes.
The park has 12 investment plans in the pipeline — a mix of overseas and domestic proposals across sectors like steel downstream, auto components manufacturing, logistics, metals and wellness products. The steelmaker is also in talks with an auto components manufacturer for a possible assembly line at the Gopalpur park. “The company that we are talking to has a universal platform for battery-driven cars. They have shown interest. But talks are in the primary stage,” said Misra.
Efforts are on to tap investments in the services space, which in the longer run has greater employment potential than manufacturing. An overseas investor has evinced interest to set up an ecotourism project. This will groom multi-skilled hospitality professionals. In pharmaceuticals, there is a proposal by a non-resident Indian for development of wellness products. Tata Steel also has a proposal in the logistics sector.
The fate of these investment proposals hangs in the balance due to an agitation by the locals demanding jobs and compensation. The protest has shut down Tata Steel’s ferrochrome plant from May 20. The steelmaker is hoping the local administration will resolve the deadlock. “We cannot provide jobs to all the affected people unless investors are roped in. We are already doing R&R (rehabilitation & resettlement) worth ~360 crore. At the end of the day, we are a listed company and we are responsible to our shareholders,” added Misra.