Russian Steel Major To Set Up Plant In Gopalpur

Russian steel major to set up plant in Gopalpur

by PTI, Bhubaneswar

13th March 2006

Russian steel major 'Magnitogorsk Iron and Steel' Co., (MMK) has zeroed in on Gopalpur in Orissa's Ganjam district for setting up a 10 million tonne per annum steel project and looking for a suitable site.

"They have evinced interest for setting up a 10 mtpa capacity steel plant in the state. But we have so far agreed for 5 mpta capacity," Chairman and Managing Director of the State-run Industrial Promotion and Investment Corporation of Orissa Ltd., (IPICOL), Priyabrata Patnaik, said.

He said, "We have told them that the State Government may consider approving capacity addition of another 5 mpta taking into account iron ore availability in future."

The Orissa government has so far signed MoU with 43 companies for manufacture of 58 mtpa steel for which around 90 million tonnes of iron ore would be required every year.

The MMK was given option of three locations -- near Dhamra, Keonjhar and Gopalpur. An MMK team visited all these sites and shown interest in Gopalpur.

Official sources said the MMK considered Gopalpur as the suitable destination because of its sea connectivity. The state government has recently entrusted Orissa Stevedores Limited for building an all weather port at Gopalpur.

The MMK, Russia's largest steel company with a total production of 11.38 million tonne, sought comprehensive information on power, water availability and other existing infrastructure, Patnaik said, adding IPICOl was in a process of compiling the data