Archive for the 'Ruias/Essar group' Category

Status of Essar Steel projects in Odisha

Iron Ore, Jagatsinghpur, Ore pelletisation, Paradip - Jatadhari - Kujanga, Ruias/Essar group, Steel Comments Off on Status of Essar Steel projects in Odisha

Following is from a report in Orissadiary.

The 6-million tonne Essar Steel pellet plant here will be made operational by October this year. The `2,200-crore project includes an 8-MT ore beneficiation plant at Joda and Barbil and a 250-km slurry pipeline from Joda to Paradip. The company plans to expand the beneficiation and pellet manufacturing capacities to 12 MT in the future.

Initially, the company will source iron ore from private mines at Joda and Barbil. However, the company expects that the State and Central Governments will grant it lease for a captive mine in the long run.

The pellets to be produced at Paradip would be exported through the Paradip Port to Essar’s steelmaking unit at Hazira in Gujarat, which is undergoing a capacity expansion to 9.6 MT from 4.6 MT by 2012, said sources.

Following is excerpts from an interview in Business Standard. The investment numbers mentioned there does not quite gel with the numbers mentioned above.

Is there a time frame for realising the long-term vision?

It arises from the commitments, as well as MoUs (memorandums of understanding) with various state govts. These are linked to raw material. It’s a chicken and egg story. You need the raw material, otherwise you are not going to invest. We have our plans in Jharkhand, Chhattisgarh. In Orissa, we are already completing the first phase. In Karnataka, we have signed the MoU and the government is looking to provide land. But we also want the mines. We don’t want to create a situation where all the investments are done and then you say the mines are not available.

The Orissa government has a clause in the MoU that the state will recommend mines once you have made commitments for 25-30 per cent.

Yes, commitments have to be made, which implies it could be orders. But a 12-million tonne plant will cost anything between $12 billion and $15 billion. Thirty per cent of that will be $4.5 bn. How can anyone expend $4.5 bn in the hope that one will get the mines? It’s easier for smaller players.

Ruia’s Essar group’s proposed investment in Orissa

INVESTMENTS and INVESTMENT PLANS, Ore pelletisation, Ruias/Essar group, Steel Comments Off on Ruia’s Essar group’s proposed investment in Orissa

Following is an excerpt from a report in Financial Express.

Essar Group has acquired 1300 acres, out of the required 1960 acres, for its six million tonne steel project in Orissa. The company had signed a memorandum of understanding in 2005 with the state government to set up a steel plant along with facilities for making iron ore pellet and transporting iron ore slurry through dedicated pipeline from Barbil sector to Paradip.

Essar is investing Rs 15000 crore for the project. It includes an iron ore pellet plant and setting up of a slurry pipeline. The company’s Bailadilla-Vizag slurry pipleline also passes through the state.

Essar Group chairman SK Ruia expressed his satisfaction over the progress of the project.

… Mehera told reporters the work for the slurry pipeline and the pellet project has been started. Equipment supply orders for the projects have been placed with South Korean and German Companies. 


This project does not seem to be much beneficial to Orissa as making pellets, transporting them and selling them is almost like exporting ores.