Indian steel major, Tata Steel, is gearing up to commission its Kalinganagar steel plant – the largest single location Greenfield steel project in India -- by December this year.
Construction of the first phase of the proposed six million tonne per annum (mtpa) capacity steel plant has already been completed. In the first phase, Tata Steel will produce 3 mtpa hot-rolled steel from the Kalinganagar facility which is company’s second steel mill after 10 mtpa capacity plant at Jamshedpur.
“We have already started heating of coke oven plant from May 19. Gradually, we will set other mechanical processes in motion. The sequencing of activities is likely to be completed within next three to four months,” said Rajiv Kumar, Vice-President (operation) of Kalinganagar project, here on Saturday.
The plant built with very advanced engineering, and modern technology is coming up on 3,000 acres here, which is about 100 km from Bhubaneswar. The plant has one of the India’s largest blast furnaces of 4,330 cubic meters with on-site power generation through gas discharged by coke oven and blast furnace.
Mr. Kumar said Kalinganagar facilities will have minimal water wastage and CO2 footprint, better than most steel plants.
The company has already invested nearly Rs.22,000 crore out of Rs.25,000 crore estimated for installing three mtpa capacity in the first phase. The steel major will invest another Rs.15,000 crore in the second phase to achieve 6 mtpa capacity steel production by 2019.
“To run three mtpa capacity steel plant, we will source iron ore from our captive mines such as Joda, Nuamundi and Khandbandh in Keonjhar district. We might import ore if situation arises. The annual requirement of iron ore for 3 mtpa plant in the first phase will be 5.1 million tonne,” said the top Tata Steel executive.
The company is in talks with the Odisha government for securing Mankadnacha and Baliapala iron ore reserve for adding another 3 mtpa in the second phase.
Asked as to how the company would dispose of its steel when market is witnessing slowdown, Mr. Kumar said, “India’s total steel production capacity is 75 mtpa. Tata Steel has 14 per cent market share. As country’s GDP is expected grow at 7 per cent rate, the steel consumption will definite go up. Besides, Tata Steel has got loyal consumers who are eagerly waiting to purchase our products.”
In the second phase, the company, which will set up cold rolling mill, will produce 100 per cent flat, light, higher tensile strength steel and this will ultimately lead to high grade products used in ship-building, defence equipment, energy and power, infrastructure building, aviation and lifting and excavation.
Source:The Hindu
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