Steel major Tata Steel today signed a Memorandum of Understanding (MoU) for setting up a six million ton green-field integrated Steel Plant at Kalinganagar in Jajpur District of Orissa. The MoU was signed by Mr.Bhaskar Chatterjee, Principal Secretary (Steel & Mines) on behalf of Government of Orissa and by Mr.B.Muthuraman, Managing Director of Tata Steel, in a ceremony at the State Secretariat in Bhubaneswar, in the presence of the Chief Minister of Orissa, Mr.Naveen Patnaik and Chairman of Tata Group, Mr.Ratan Tata.

According to the MoU, a six million ton Steel Plant will be set up in two modules of three million tons each. The first module, comprising three million ton steel plant complex including a Blast Furnace, Coke Ovens, Sinter Plant, Caster and Rolling Mill will be completed in four years. This will be followed by the second module of three million ton to be set up in twenty four months thereafter. The project also includes development of captive iron ore mines to meet the iron ore requirements of this plant and modern townships for the employees of the Iron Ore Mines and the Steel Plant. The project is expected to generate employment potential, both direct and indirect, for several thousands of people.

In line with the vision of its founder, Jamsetji Tata, Tata Steel will bring to this plant the same work culture, efficiency and ethics, for which it is renowned world over for the last 100 years. Tata Steel will use responsible and environment friendly means for development of the captive Iron Ore Mines, Steel Plant and its surroundings, with the townships providing a high quality of life.

Tata Steel has also drawn up plans for development of Gopalpur region, where it is in possession of 3200 acres of land acquired by it for its earlier proposed Steel Plant. It proposes to setup a Technical Training Institute at Gopalpur and work with the State Government to help setup an SEZ on a part of the land. The Technical Institute, which is already under construction, is likely to start with its first batch of trainees by June 2005. It will train about 200 children in the age group of 16 to 20 years, having minimum High School qualification. This Institute will provide trained human resource for fast growing steel and related industries in Orissa. A pre-feasibility study for setting up the SEZ has been completed and an SPV is now to be formed between Government of Orissa and Tata Steel to progress the matter further. Tata Steel also proposes to setup a Cold Rolled Steel Processing Center at Gopalpur, as part of forward integration of its Kalinganagar Steel Plant.

Mr. Muthuraman said “our first task now is to obtain all statutory clearances, with the help of the State Government, as fast as possible and start the work. We have undertaken a challenge of setting up the Steel Plant within 48 months from today, including the time required for obtaining the statutory clearances. We are confident of crossing relevant milestones for finalizing the arrangements for securing adequate iron ore, as agreed in our MoU with the State Government. In order to complete the construction of such a large Steel Plant within 48 months, we are immediately putting in place a project team at Bhubaneswar with effect from tomorrow.

Tata Steel has already signed a Joint Venture Agreement with Larsen and Toubro to develop a deep-water port in Orissa to ensure availability of world-class port infrastructure to support the Steel Plant.

Mr.Ratan Tata said that this Steel Plant and the Port project, along with the investment being planned by Tata Consultancy Services and the Taj Group of Hotels is a concerted effort by the Tata Group to increase its presence in Orissa. These investments, combined with able leadership and efficient administration in the State, would provide the right impetus to the speedier industrial development of the State and will bring prosperity to its people. These projects will also strengthen the 100 year old ties between Orissa and TATAs.