Home ECONOMY Sesa Sterlite smelter plant awaits govt’s intervention

Sesa Sterlite smelter plant awaits govt’s intervention

0
SHARE

Reported by Sandeep Pattnaik

Bhubaneswar, Apr 30:

Odisha Government is seriously contemplating to revive Sesa Sterlite’s 1.25 million tonne [MT] aluminium smelter at Jharsuguda, which has  failed to go full- steam due to several regulatory and policy hurdles that have delayed production, a company release said today.

Sesa Sterlite smelter plant in Jharsuguda
Sesa Sterlite smelter plant in Jharsuguda

The release says, the commissioning of the company’s smelter complex has  been delayed mostly because of the government’s indecisiveness over state specific special economic zone [SEZ] policy. Due to lack of a clear-cut policy, various government departments have not been able to extend SEZ benefits to the project, it rued.

Sesa Sterlite has already made an investment of Rs.12, 000 crore on the smelter project, according to the release.

The company’s smelter plant in Odisha , which is currently operating at just about 30% of its installed capacity, is aiming to achieve full-scale operation subject to adequate raw material linkage. It will create job direct and indirect job opportunities for more than 100,000 people and contribute as much as Rs 2500 crore to the exchequer in terms of duties and taxes, which can be invested for socio-economic growth of the state, the release claimed.

The smelter project will also boost the economy of western Odisha directly by generating annual business potential worth Rs.15, 000 crore. Besides, over 100 ancillary and downstream industries can be developed in the adjoining areas, if the main smelter plant will be fully operational, as per the release.

Sesa Sterlite had requested the government earlier to allow it to use 2 units of 600 MW each of its 2400 MW (4×600 MW) Independent Power Plant which is located  at at  the smelter site.

According to a company official, the IPP had played a crucial role when the state was going through serious power crisis. Now that the state is power sufficient, the company may be allowed to convert part of the IPP to CPP to mitigate the smelter’s power needs, he said.

However, the issue has been pending with the government for quite some time now.