JSW Steel forms subsidiary to fast-track ~50k-cr Odisha project
Sajjan Jindal-led JSW Steel has formed a wholly owned subsidiary — JSW Utkal Steel — to fast-track the implementation of its 12 million tonne crude steel plant and other interlinked projects in Odisha.
The steel maker has committed an investment of ~55,000 crore for the integrated steel mill, 900-Mw captive power plant, 32 million tonne pellet unit, a captive port and a slurry pipeline to transport iron ore concentrates from Joda to the project site proposed near Paradip. A source close to the development said, JSW steel at its board meeting has decided to carry out the implementation of Odisha projects through a subsidiary company. The subsidiary has been incorporated with the Registrar of Companies (RoC).
While the port-based steel plant was initially proposed to be developed by JSW Steel, another group company JSW Infrastructure got the clearance to build the slurry pipeline.
“JSW Steel has requested the state government to transfer all clearances and approvals to JSW Utkal Steel Ltd. They have submitted the annual reports, annual returns, Articles of Association and board resolution of both the companies. We are examining its”, said an Odisha government official. JSW Steel had originally proposed to set up a 10 mtpa capacity shorebased steel plant in Odisha. It had asked for 4,500 acres of land for the steel mill. Later, the company submitted a revised project plan, intending to go for a higher capacity steel project.
With the reconfiguration in its proposed project expected to be accompanied by latest technology, JSW Steel is likely to settle for a smaller land parcel measuring 2,700 acres. The Odisha government is set to hand over the same land acquired originally for a 12 mtpa steel project proposed by Posco. JSW Steel had sought the same land which the state-owned Odisha Industrial Infrastructure Development Corporation (Idco) procured from betel vine growers and other farmers. The steel firm had asked for transfer of all land parcels at the rate of ~4 lakh per acre.
For optimising raw material costs, JSW Steel has committed an investment of ~3,700 crore for a slurry pipeline, which will transport 30 million tonnes iron ore each year from Joda to Paradip. Both projects have been approved by the High Level Clearance Authority (HLCA), the highest body to clear investments. To secure iron ore supplies for its integrated steel project, the company has pitched for a long-term agreement for 50 years with state owned Odisha Mining Corporation (OMC) to supply 30 million tonne per annum of iron ore fines at IBM (Indian Bureau of Mines) declared price.