Rotary kiln for making sponge iron

Tata Sponge Iron Limited (TSIL), formerly known as Ipitata Sponge Iron, began commercial production of sponge iron at Bilaipada (near Joda) in April 1986. It was originally a joint venture undertaking of Tata Steel and the industrial Promotion and Investment Corporation of Orissa Limited (IPICOL). In 1991, Tata Steel acquired IPICOL's stake of 26% equity, thus converting TSIL's state to a wholly owned subsidiary. In July 1994, the Financial Institutions opted to convert a part of their term loans into equity and the shareholding pattern of TSIL now stands as 39.74%, 28.66% and 31.60% in favour of Tata Steel, Financial Institutions and the public respectively.

Tata Sponge guest house

TSIL was a pioneering effort by Tata Steel to bring industrialisation to a backward area of Orissa by incorporating a totally indigenous technology for making sponge iron, which was developed through intensive R&D efforts at Tata Steel. 310 acres of land was procured from the Orissa Government and local persons for installing the plant and building a modern township. Employment was provided to at least one member of each family from whom land was purchased at market prices. The plant was initially designed for an annual production of 90,000 tonnes; however, with inputs from Lurgi of Germany, the plant capacity was increased to 1,20,000 tpa in 1991. Foreseeing the growing demand for sponge iron, TSIL decided to double its capacity by installing another kiln of 1,20,000 tpa capacity during the year 1997-98. TSIL has also invested in the adjoining Khondbond mines of Tata Steel for obtaining sponge iron grade iron ore on a long-term basis.

Finished product circuit for sponge iron

Today, TSIL has 400 employees and has generated indirect employment for 300 others in the adjoining areas. TSIL has, therefore, brought wealth to this area of Orissa in the truest sense of the term. In what has become a Tata Steel tradition, equal attention has been paid to the welfare of the employees in the form of:

• Free accommodation to 95% of the employees in a modern township developed in the immediate vicinity of the plant.

• Free medical facilities to employees and their families,

• Free 21 channel dish antenna connection to all employees' quarters.

• Co-operative Society in the township administered by the employees.

• Recreation Club for the employees along with an Officers Club with all modern amenities. Sports and adventure are encouraged – a trek to the Himalayas was led by the CEO of TSIL.

Social welfare activities have been given equal attention by TSIL through TSRDS and other local organisations resulting in:

• Construction of tube wells.

• Construction of rooms for schools in the adjoining area.

• Family planning camps and distribution of free medicines to nearby villagers.

• Supply of sports materials and financial aid to villagers.

• Distribution of blankets and clothing to the needy.

• Assistance to farmers for purchasing agriculture equipment.

• Farmers training programmes and youth development training programmes.

• Construction of a bridge over the Sona river to help villagers from Birikala Panchayat to come to Bilaipada/Joda (this bridge was inaugurated by the Chief Minister of Orissa on 18th May 2001).

Tata Steel's association with this endeavour over the last fifteen years has brought joy and happiness to several families in this remote corner of Orissa. It has certainly contributed towards the industrial development of the State, which is the ultimate goal. TSIL has contributed to the State and Central Government Exchequers to the tune of almost Rs. 8 crores in the last ten years in the form of taxes, royalties, electricity duty, etc.