Vedanta Resources, a leader in the field of aluminum, iron ore, oil and zinc, has entered into agreement with the Jharkhand Government to setup a sponge iron plant in the State. The company inked an MoU in this regard on Friday that would see investment of nearly Rs 1500-1700 crore coming.
The one million tonne capacity sponge iron plant is expected to come up at iron ore rich Seraikela- Kharsawan region and likely to provide 2500 persons direct employment.
“We are searching for land at a couple of locations in the district and also in West Singhbhum. As per the agreement, substantial progress on ground would be seen within a year,” said Kishore Kumar, CEO, Vedanta (Iron Ore Business) of the multi-national firm after singing the MoU in the presence of Additional Chief Secretary Uday Pratap Singh and Industry Director K Ravi Kumar.
The company is expecting to start production of sponge iron, a pre-finished product for iron and steel industry, from its plant by 2021. “We have our plants in Goa already and technology and expertise is readily available with us. Vedanta has Pl (prospective license) for Dhobil iron ore mines at Chiria area. Besides, we would also bid for new iron ore and coal blocks in the State in future,” said Kishore Kumar. Vedanta has acquired Sesa Goa ltd and operating sponge iron plant at there.
Nevertheless, glitches relating to sufficient land for the plant, various statuary clearances and availability of water are there. Top sources in the Industry Department said that the company has identified 390 acres of land in Seraikela-Kharsawan area but also looking for more suitable land in West Singhbhum. “As per the conditions put in the MoU the Vedanta has to identify land, acquire it and present TFR or Detailed Project Report within the one year time. Based on that only the company would be able to sign second stage MoU with the State Government,” said the official.
When asked about the positivity, especially when host of companies, including Mittal and Reliance Power have wound up their projects in the State and various other MoUs are languishing at several stages, Kishore Kumar said, “Trust is there on this Government. We also believe that the Prime Minister’s call of ‘Make in India’ is for encouraging investments and promoting entrepreneurs.” UP Singh intervened saying the Government would extend helping hand to the company.
Moreover, the firm’s earlier attempts to make an entry into the State have failed. Jharkhand government had cancelled an earlier MoU signed with Sesa Goa in September, 2006 for a 0.5 million tonnes pig iron and coke oven plant, as the company had not made much progress for the said projects. Also, idea to setup 1.5 MT steel plant in 2012 could not materialise.
Vedanta has Iron Ore operations in Goa, Karnataka and liberia; possesses iron ore mines in Goa and Karnataka and a pig iron plant in Goa. However, its biggest endeavour of bauxite at Niyamgiri of Odisha failed to take off due to massive protest by locals.