Work on Tata Steel's Kalinganagar project to begin by Dec end

Tata Steel today said that work on its six MTPA Kalinganagar project in Odisha, hit by a more-than-five-year delay due to stiff resistance from locals, is likely begin by end-this month.

The country's largest private sector steel-maker had planned to build a Rs21,000 crore plant at the Kalinganagar Industrial Complex in Jajpur district of Odisha.

However, land-acquisition problems due to opposition from the locals, had delayed the project so far.

"We have already received 85% of the required land from the state and we expect the balance soon. We will start construction work by end this month," Tata Steel's corporate affairs and communications' head, Sanjay Chowdhary, told PTI over phone.

"We hope the construction will be completed by 2012-13," he said, adding the boundary work will be completed soon and the company eyes start of production by end 2013.

"We hope to start production by end 2013," he said.

The company has already placed orders worth over Rs6,373 crore of equipment and civil structures for the project. The first consignment of equipment for the steel melting shop has already reached Kalinganagar from Germany recently. "More equipment will arrive in the coming days," he said.

The steel producer had signed an MoU with the State government way back in November 2004 for setting up an integrated steel plant at Kalinganagar.

The steel project ran into rough weather after 14 people were killed in police firing on January 2, 2006, while opposing the construction of the plant's boundary wall.