The Rungta Mines Limited (RML) has received green signal for setting up of two integrated steel plants entailing a combined investment of Rs 3,526 crore in Keonjhar.

The State Level Single Window Clearance Authority (SLSWCA) has recommended the projects to the High Level Clearance Authority (HLCA) headed by the Chief Minister for consideration.

Two investment proposals in the steel sector by the RML were considered in the SLSWCA, which received favorable disposition as it will boost industrialisation move in the mining zone. Earlier, sponge iron-based steel complexes were not allowed by the State Government; and now, with policy change, the SLSWCA cleared the proposals for the two 0.53 MTPA integrated steel plants at Karakolha and Karakhendra in Keonjhar district.

While the RML would expand its existing sponge iron plant at Karakolha to an integrated steel plant (ISP) of capacity 0.53 MTPA, the mining major proposes to set up ISP of 0.53-MTPA capacity at Karakhrndra.

The steel manufacturing process would be via pelletisation, sponge iron, induction furnace and rolling mill, etc. Products would be steel TMT, flat, round, wire rod, structural and alloy steel, said official sources.

RML Director Sidharth Rungta is spearheading the initiative for expanding the mining major’s activities to steel manufacturing sector.

Way back in 2005, the RML had signed an MoU with the Government to set up a 2-MYPA ISP with an investment of Rs 2,275 crore in two phases.

While 1 MTPA ISP was to be set up at Kamando in Sundargarh, another was planned at Jharband in Dhenkanal, said sources. So far, the RML has installed a 0.6-MTPA steel mill in Sundargarh and reportedly work on rolling mill (TMT) of 0.217 MTPA is in progress. Partial production from Dhenkanal steel complex is expected by December, sources said.

Both the proposed steel complexes would generate job opportunities for more than 2,000 people.