Single Window likely to clear two new cement units

Sify.com, 10th June, 2010

BS Reporter

Panel may approve capacity expansion of Vedanta and Hindalco

The State Level Single Window Clearance Authority (SLSWCA) of the Orissa government in its 30th meeting on Thursday is likely to clear proposals for two new cement manufacturing units besides approving the capacity expansion plans of Vedanta Aluminium Limited (VAL) and Hindalco Limited.

Madras Cement and Ajmer-based Shree Cement known for its Bangur brand have evinced interest in setting up cement manufacturing units in the state. Till now, ASO Cement, Grasim Cement and OCL Cement have signed MoUs (Meorandum of Understanding) with the state government with a total capacity of 4.9 million tonne per annum (mtpa) and involving a total investment of Rs 2182 crore.

In the aluminium sector, VAL has proposed a six-fold increase in its alumina production capacity at Lanjigarh in Kalahandi district from the existing one mtpa to six mtpa. This will also result in a commensurate increase in VAL's aluminium production capacity.

VAL had inked an MoU with the state government in June 2003 to set up a one mtpa alumina refinery at a cost of Rs 4000 crore. The company had also signed an MoU in April 2007 for putting up a 0.25 mtpa aluminium smelter plant at Jharsuguda at an investment of Rs 8400 crore.

Hindalco Industries Limited, an Aditya Aluminium Company, has sought to double capacity of its aluminium refinery and aluminium smelter project.

The company had proposed to set up a 1.5 mtpa aluminium refinery, 0.72 mtpa aluminium smelter plant and a 1050 captive power plant at Hirakud at a combined investment of Rs 29,414 crore.

The SLSWCA is also likely to clear the investment proposals of Sterlite Technologies and Kalinga Calciners.

Pune-based Sterlite Technologies, known for its power transmission conductors has proposed to set up an aluminium conductor and cables manufacturing unit near Jharsuguda.

Kalinga Calciners based out of Paradeep (Orissa) has evinced interest in setting up a Calcined Petroleum Coke plant at Kalinganagar.

In the energy sector, Jindal India Thermal Power Ltd which had earlier announced to set up a 1200 MW power plant at Derang near Talcher, has now proposed to scale up the capacity to 1800 MW.

The company had signed an MoU with the state government in September 2006 for setting up the 1200 MW power plant at a cost of Rs 5940 crore.

Besides clearing new investment proposals and approving modifications of the projects of the existing players, the SLSWCA is also expected to decide on the technological mix for production of steel in the state.

A high level committee headed by the Development Commissioner of the state government had suggested the adoption of normal kiln route for steel industries with an envisaged capacity of up to 1 million tonne and gas based route for units with a production capacity of 1 million to 3 million tonne per annum.

Similarly, DRI (direct Route Iron) route has been suggested for units with capacity of more than 3 million tonne per annum.

The limit on various routes for steel production been suggested to minimize the environmental pollution.

This made possible for the maximum use of the available coal in the state which is qualitatively inferior, sources said.

The committee had sent its recommendations to the industry department so that it can be placed before the SLSWCA for approval.

SLSWCA, in its 29th sitting in August last year year, had taken a decision to constitute a committee to suggest the technological mix for minimizing the environmental pollution in the steel units particularly those producing sponge iron.

The recommendations of the committee assumes importance as 25 investment proposals in the steel sector including expansion of capacity are pending for approval before the Industrial Promotion and Investment Corporation of Orissa Ltd. (Ipicol), the state level nodal agency for investment promotion.