Following is an excerpt from a report by Dilip Satpathy in Business Standard.

… Tata Steel has finally geared up to put to use its 3,200 acres of land lying idle at Gopalpur in Orissa. Playing the role of the anchor tenant for an industrial park proposed to come up on this patch of land, the company is all set to launch two projects: a 50,000 tonne per annum ferroalloys plant and 40,000 tonne per annum bar mill there.

The two projects together are estimated to cost about 1000 crore.

… "To start with, the proposed two units, the ferroalloys plant and the bar mill, will be our anchor investment. But our ultimate objective is to make this industrial park attractive for investors in the field of steel and steel downstream, speciality and bulk chemicals and engineering", said a senior official of the company.

While the ferroalloys plant will cost about Rs 200 to 250 crore, the bar mill will be set up at an investment of Rs 750 to Rs 800 crore. This will be the third ferroalloys plant of Tata Steel in Orissa. The company is operating two ferroalloys plants at Bamanipal and Athgarh (through its subsidiary Rawmet) with capacities of 50,000 tonnes per annum each.

For the bar mill, the company intends to get the ingots from Jamshedpur by rail and road. Similarly, the company will source raw material for the ferroalloys plant, which will be a backward integration project for the company’s proposed six million tonne plant at Kalinganagar, from its chromite mines in Sukinda valley. Both the units are expected to be commissioned in 30 months time.

It may be noted Tata Steel had acquired 3,700 acres (including 500 acres for the rehabilitation colony) in mid 1990s for setting up of a 10 million tonne steel plant at Gopalpur. However, it shelved the project and the land was lying vacant.

… The infrastructure for the industrial park will jointly be developed by Tata Steel and its associate company, Tata Realty and Infrastructure Ltd (TRIL). A feasibility study on the complex has been done by Ernst and Young while another internationally famed consultant, Jurong of Singapore is currently preparing its master plan. The master plan will be ready in 3 to 4 months following which the company will market the project and attract investors to set up their units in the park, said the sources.

The cost of infrastructure, which includes developing the land and providing road, rail, power, water supply facilities within the park and linking them to external sources, is estimated at about Rs 5000 crore.

This is really great for the Berhampur area. With a fabulous beach and port next door in Gopalplur, good road and rail connectivity, decent infrastructure (a university, a government engineering college, a medical college, several private engineering colleges), nearby tourist spots (such as Chilika lake), and a multi-cultural and multi-lingual population Berhampur is ready for prime time. It just needs to be marketed at a national level.

Moreover, its proximity to the Bhubaneswar area is a big plus. From Khurda Rd (the current southern edge of the greater Bhubaneswar area) it is only 147 kms. Being connected to Bhubaneswar by one leg of the Golden Quadrilateral, one can drive between the two areas in less than 2 hours. So even if it does not yet have air connectivity, its closeness to Bhubaneswar airport will come in handy.