Bhubaneswar, Aug 12:
Jindal Steel and Power Limited (JSPL) will achieve its full capacity of 6 million ton per annum (MTPA) at its plant in Angul by 2016, said the company’s Managing Director Naveen Jindal here today.
“Our second phase expansion wherein we will upgrade steelmaking capacity to six MTPA is expected to be completed by 2016. Earlier this month, we had commissioned our steel melting shop (SMS), the second largest in Asia”, said Naveen Jindal after meeting chief secretary JK Moahapatra.
JSPL is investing Rs 29, 285 crore on the steel project that also includes a 900 MW captive power plant (CPP).
Sources, however, said JSPL could face ore linkage crisis as its application for captive iron ore mines to feed its mega steel plant was still pending with the state government. Operating the steel plant at its full 6 MTPA capacity will require an estimated 12 million tonnes of iron ore every year, the sources pointed out. At present, the company is getting iron ore from Thakurani mines and TRB (Tantra, Raikela and Bandal) mines.
On the proposed coal-to-liquid (CTL) project, Jindal said, “Our project report is ready. We hope to sign the memorandum of understanding (MoU) with the state government by the end of this year. The company also expects to get prospecting license (PL) soon for the Ramchandi coal block (allocated for the CTL project).” The company hoped to start work on the project by end of 2014, he said.
JSPL’s ambiRs 60, 000 crore on its ambitious CTL project has not materialized yet due to the ongoing CBI inquiry into the coal block allocation to the company by the Odisha government. The Odisha government had recently decided to hold up processing of the Ramchandi promotional coal block.
The Parliamentary Standing committee on steel and coal had also questioned the basis of allocation of the two CTL blocks in Odisha (the other being north of Arkhapal-Srirampur allotted to Tata Sasol) with estimated reserves of over 3000 million tonne to two privately run firms.
Recently, the state government had imposed fresh conditions on the CTL project proposed by JSPL. The state government has insisted on the original promoters retaining at least 51 per cent equity in the CTL project till three years of start of commercial operations.