India takes steps to make Ultra Mega Steel Plants a reality
National Manufacturing Competitiveness Council has entrusted iron ore maker NMDC with the task of creating the basic infrastructure for the first ultra mega steel plant with 12 mn tonnes per annum capacity
New Delhi Prime Minister Manmohan Singh-led National Manufacturing Competitiveness Council has entrusted iron ore maker NMDC with the task of creating the basic infrastructure for the first ultra mega steel plant with 12 million tonnes per annum capacity.
NMDC, however, would not have any stake in the project and its role is restricted to creating the infrastructure and offering it to steel producers on competitive basis, a source in the know told PTI. NMDC would procure land, get clearances like environment and forest approvals ensure raw material linkage among other things. The miner would be allowed to be a part of the mining project which would be mainly linked with the steel plant, sources said.
The plan, which is aimed at removing hurdles that private sector steel makers face in creating additional capacity, is a step in the direction to achieve 300 MT capacity by 2025, a target recently set by the Prime Minister-led panel.
It is also expected to help India regain its image of an investment-friendly country. It may be noted that South Korean Posco and world's largest steel maker ArcelorMittal had recently scrapped their big-ticket investment plans citing inordinate delays in getting clearances.
Sources said NMDC Board has also approved the proposal. The miner is likely to start the job at the site of its now discarded joint venture project with Severstal in Karnataka.
NMDC had in 2010 signed a deal to form a joint venture with the Russian steel maker to set up a 3 MTPA steel plant. It is already in possession of some parcel of land, besides clearances from the environment and forest departments.
The iron ore miner may tie up with Industrial Development Corporation of other states in the coming days for forming such special purpose vehicles (SPVs) that would create the infrastructure for such ultra mega steel plants. This would help the SPV to secure land and create other necessary infrastructure without facing much hurdles.
Besides, ArcelorMittal, Posco and Monnet Ispat pull outs, at least 85 MT capacity creation has been delayed for want of water, environment and forest clearances. Nonavailability of the land is the primary hurdle though.