Jindal Stainless Ltd is set to sign a memorandum of understanding with the Orissa government tomorrow for setting up a 1.6 million tonne integrated steel plant along with a 500 Mw captive power plant at Kalinga Nagar in Jajpur district of Orissa.
The project, to be set up in phases, is estimated to cost about Rs 7,000 crore (Rs 70 billion). The company, meanwhile, has acquired 1,240 acres for the steel project and 300 acres for an ash pond of the proposed power plant at Kalinga Nagar.
According to Ratan Jindal, vice-chairman and managing director, JSL, this will be the largest integrated stainless steel project in south Asia. With the implementation of the project, JSL will move up to acquire a position among the top 10 stainless steel producers in the world.
The project is being set up in two phases. The first phase comprises establishment of 240,000 tonnes of ferrochrome, 40,000 tonnes of silicomanganese, 50,000 tonnes of ferromanganese capacities, blast furnace to produce 525,000 tonnes of hot metal, 800,000 tonne per annum stainless steel melting shop and eight lakh tonne slab caster machine apart from the facility to produce 25 MW captive power from waste heat of blast furnace and ferro chrome furnace. The first phase is estimated to cost Rs 1146 crore (Rs 11.46 billion).
While the first two ferrochrome furnaces with installed capacities of 80,000 tonnes per annum are slated to go on stream by middle of next year, the rest components are scheduled to be completed by March 2007.
Similarly, the second phase comprises of setting up of additional 240,000 tonnes of ferro chrome, 20,000 tonnes of silico manganese and 50,000 tonnes of ferro manganese capacities, 525,000 lakh tonnes of hot metal, hot strip mill of 100,000 tonne and rolling mill to produce 250,000 tonnes of hot rolled coil and 625,000 tonnes of cold rolled coils. The second phase, scheduled to be completed by March 2009, is estimated to cost Rs 3618 crore (Rs 36.18 billion).
This apart, the company intends to set up a 500 MW coal fired captive power plant in the complex at an estimated cost of Rs 2128 crore (Rs 21.28 billion). While the first unit of 125 MW of the CPP will be built by March 2007, the next three units of equal capacity are proposed to come up by March 2009.
