Date:11/09/2004 URL: http://www.thehindubusinessline.com/2004/09/11/stories/2004091102670400.htm

Back BHP Billiton spells out plans for steel project in Orissa

Prafulla Das

Bhubaneswar , Sept. 10

BHP Billiton, the world's largest diversified resources company, in association with Posco, the world's largest steel producer, is partnering Orissa to set up a world-class integrated iron and steel project in the State, and the companies are hopeful of getting the green signal from the authorities, according to BHP Billiton's country President, Mr Don A. Carroll.

At a press conference here, Mr Carroll said the integrated iron and steel project will have four separate segments: integrated steel plant, iron ore project, coal and coke plant and the Dhamra Port project. While Posco will focus on the steel plant project, BHP Billiton's major focus will be on the three remaining projects.

"The response from the Orissa government and the various departments of the Central government in New Delhi has been encouraging and we are hopeful of getting the green signal," Mr Carroll observed. Negotiations are on and the two sides are yet to reach the stage of signing the memorandum of understanding, he added.

Mr Carroll confirmed that the integrated iron and steel project would involve an investment of Rs 39,000 crore ($8.4 billion) and create 42,000 quality jobs in Orissa. "It will be an exciting project and will be implemented utilising the latest technology and know-how from the BHP-Posco association."

Giving the break-up of the projects, Mr Carroll said the steel plant, to be set up at a cost of Rs 28,500 crore, would be the biggest single steel plant in the country. It will have a 3-million-tonne-per-annum capacity initially and a 10-million-tonne capacity when complete; it would create a total of 32,200 jobs, he said.

About the benefits from the steel project, Mr Carroll said the plant would generate revenue of Rs 36,000 crore for Orissa and Rs 57,000 crore for the Centre. The net foreign inflows will be Rs 55,800 crore.

The coke and coal plant to be set up by BHP Billiton will supply coal for the Posco-BHPB steel plant and provide the highest quality coal to maximise productivity. It will also supply coal to other steel plants in the country, Mr Carroll said.

The investment for the coke plant would be Rs 4,700 crore and will create employment for 3,800 people. The plant will generate revenue of Rs 6,800 crore for Orissa and Rs 6,600 crore for the Central government. The iron ore project, with an investment of Rs 3,900 crore, will have a production capacity of 30 million tonnes per annum.