Vedanta, L&T plan mega steel project in Orissa

The Economic Times, Jan 21, 2010
BHUBANESWAR: London based Vedanta Resources Plc and Larsen and Toubro have proposed to set up a mega joint-venture steel plant project in Orissa. The two companies are in advance stage of negotiations with the state government and formal announcement in this regard will be made soon, chairman of Vedanta Resources Plc Anil Agarwal,said here on Thursday.


“We are in advance stage of negations with the state government and very soon we are going to sign a tripartite agreement,” Mr Agarwal told reporters after meeting chief minister Naveen Patnaik.

He, however, refused to disclose details about the size, location and cost of the project.

During his discussion with the chief minister the chairman promised to spend a minimum of Rs 10 crore or five per cent of the profit of the company’s Lanjigarh project for the welfare of the locals in the tribal dominated Kalahandi district.

Mr Agarwal also assured the state government to provide electricity from its independent power project at Jharsuguda smelter unit providing some relief to the power starved state.

“The first Unit of 2400 Independent Power Plant at Jharsuguda would be commissioned in coming summer. This will add 600 MW to the state’s power production capacity and can help the state government in combating the current power crisis. It is to be mentioned that Vedanta has been supplying 15 % of the total requirement of the state power from its captive power plant since recent past,” Mr Agarwal said.

As regards commencement of construction of Vedanta University project at Puri, Mr Anil Agarwal sought help of chief minister Naveen Patnaik to extend administrative support to begin the construction work.

Mr Anil Agarwal also informed to the government that Lanjigarh refinery is fully operational by sourcing bauxite from other states, incurring a huge opportunity loss for both states as well as company. State government has assured to look into the issue seriously and try to work out for an immediate solution.

The chairman said construction activities for a specialized burn and trauma care centre at Bhubaneswar would begin very soon. The 100-bed capacity advanced burn and trauma care centre – proposed to come at Gangapada - will cater the high demand of the accident and trauma patients of the state as currently there is no such medical facilities are available.