State to strike steel gold as majors line up with projects

State to strike steel gold as majors line up with projects

Close on the heels of ArcelorMittal expressing intentions of putting up a mega steel plant, envisaging investments to the tune of Rs 30,000 crore, it is now understood that lighting products & steel pipes manufacturer Surya Roshni Ltd too is planning a steel manufacturing plant in Karnataka through its 51 per cent subsidiary — Surya Global Steel Tubes Limited.

Official sources confirmed to Deccan Herald that senior officials of Surya Roshni have filed a proposal for setting up a 5 million tonne per annum steel plant in Bellary evisaging an investment of Rs 7,500 crore on a 848 acre plot.

Surya Global of the Rs 1,750-crore Surya Roshni group, has set up a steel pipe plant in Gujarat, and will be doing so in Karnataka once the modalities are formalised. Incidentally, South Korean steel major Posco too has sounded with a Rs 40,000 crore plan with confirmation expected shortly, they added.

Formal clearance

Further, sources said these companies are being shown various sites in the proposed steel corridor, such as Bellary, Bagalkot, Hubli, Koppal and Bijapur among other districts. They observed that State-level screening committee will be holding its meeting on November 27 to discuss these proposals as also other projects lined up in different sectors before placing the same before the State High Level Clearing Committee  sits to formally take a call on clearances.

Incidentally, sources said, team of State officials had visited New Delhi last week to hold talks with ArcelorMittal officials on the latter’s investment plans in Karnataka and discuss their requirements.  ArcelorMittal is said to have narrowed down to Hubli-Dharward and Koppal regions for 4,000 acre plant, after State showcased its proposed steel corridor, sources said. The firm plans to set up an integrated steel plant (through pig iron & pellets route) with six million per annum capacity besides captive power generation unit of 750 MW capacity.

Incidentally, during 2008-09, iron & steel sector topped the list of SHLCC approvals, with seven new projects envisaging an estimated investment of Rs 77,571.25 crore. Recently, Surya Roshni Chairman & Managing Director Jaiprakash Agarwal, is learned to have expressed intentions of setting up a lighting and steel pipe plant in South India, as not only they enjoyed handsome market share, but also help it cut down freight costs, besides spanning footprint.

At that time Agarwal had observed that they were seriously scouting for land somewhere between Tamil Nadu and Karnataka, which could help it it serve both markets.