OST Business Bureau
Bhubaneswar, Nov 19;
Scarcity of raw material like coal, absence of iron ore linkage, lack of adequate water facilities tend to pose a big challenges for Jindal Steel & Power Ltd (JSPL), which is in the process of setting up a 6 MTPA integrated steel plant and captive power plant (CPP) in Angul district of Odisha.
The company would be investing US$ 6 billion in the state for steel production and power generation. The proposed steel plant to be set up in Odisha will produce 12.5 MTPA steel in phases and also generate 2600 MW of power in phases.
The private steel major aims to produce 6 MTPA steel during the first phase of its commissioning, for which it has already employed around 20, 000 people in both regular and contractual modes. Besides, the project has been able to generate a lot of indirect employment opportunities, predominantly from the local area.
“It will not be possible for the company to have further intake of local people in the plant, in the face of non-availability of the basic raw material to operate the plant,” an official of JSPL revealed to OST.
“Against the HLCA guideline of providing 90%, 60% and 30% jobs under the Unskilled / Semi-skilled, Skilled / Highly-skilled and Supervisory / Managerial categories, JSPL has provided 98%, 66% and 47% of jobs, respectively, to local people,” the official added.
The project helps the displaced families, in improving their income level to almost 100% and the project-affected families to the tune of 83%, according to a recent study by NABARD Consultancy Services on the socio-economic impact of land acquisition for JSPL.
JSPL is optimistic that the government will grant the Mining Lease (ML) for coal soon and support for long term iron ore linkage for the steel plant. Similarly, the company is hopeful about the support of the district administration for laying the remaining 3.1 kms of the underground water pipeline out of the total 28 kms long raw water pipeline, said company officials.
“We need the support of the district administration for starting the next phase of the project work, on the land which has been acquired already for the project,” an official of JSPL added.