Orissa to become steel capital of India
According to recent market news, Orissa state of
India is on the way to become the steel capital of the country due to planned steel
investments in the region, amounting to Rupees 1 trillion ($21.6 billion).
With the planned
investments, annual steel
production in the state will reach 20 million tons by the end of 2010.
It is stated that South Korean POSCO and Australian
BHP Billiton will invest Rupees 390 billion ($8.4 billion) in the region and Indian producer Tata Iron and Steel Corp (TISCO) will invest Rupees 120 billion ($2.6 billion) to establish a steel plant with an annual capacity of 6 million tons. Mitsui is also planning to invest Rupees 120 billion to establish a steel plant with a capacity of 5 million tons and London-based Vedanta Resources is considering an investment of Rupees 125 billion ($2.7 billion) to build an integrated steel plant with a capacity of 5 million tons in Orissa state.
Moreover, as previously reported by SteelOrbis, Orissa state government signed memoranda of understanding with many local producers for the establishment of steel plants in the region.
If these projects are completed as planned, Orissa will be the steel capital of the country. Even though the new mills will provide job opportunities, it is stated that transportation problems may arise as Orissa lacks port facilities.