Karnataka Steel & Mineral Industry

[Krishnamoorthy K]

Iron ore rich Karnataka is fast emerging as a hub for steel industries. This thread is to track development activities related to iron and steel all across Karnataka including Bellary-Hospet-Koppal region.

I am starting the thread with this old breaking news on steel corridor:

Karnataka govt plans 300-km 'steel corridor'

The Karnataka government is planning to develop a 300-km ‘steel corridor’, which they hope will attract investment worth Rs 20,000 crore from the steel majors. As part of the development, the idea is for a nuclear power plant, a port and high-speed train connectivity.

The corridor is planned around the iron ore-rich Bellary-Hospet area in eastern Karnataka. Speaking to Business Standard at the sidelines of CII’s Suminfra 2009 meet, V Madhu, principal secretary, infrastructure development, said the state wanted to move from just exporting ore to value-added production of steel.

Minng and steel majors have been spoken to — NMDC, Tata Steel, JSW, Brahmani, to name some — and all have shown a lot of interest. The idea is that each steel manufacturer could erect a manufacturing unit of at least two million tonnes. Infrastructure development is on — new roads, identifiication of 500 sq km of land for an industrial park (tender for development to be floated in two months) and so forth. Work is already on for a 120 km rail link between Hubli and Ankola in the region, which ties in with the plan.

The industrial park, it is hoped, will attract Rs 20,000 crore of investment, with creation of jobs, direct and indirect, to be around two lakh.There wil also be a township.

Madhu says the government also wants a nuclear power unit in the corridor. “We met the Chairman of the Atomic Energy Commission, and gave our recommendation to set up a nuclear plant at Tadri.” The government is also promoting a port at Tadri, on the western coast.

ArcelorMittal, Karnataka talk plant
NMDC to set up steel plant in Bellary
MSPL to set up two iron ore plants
Tata Metaliks may push Karnataka steel plan next year
JSW Steel seeks iron ore mine in Karnataka
Eleven industrial projects cleared


Proposed, U/C, completed projects

• ArcelorMittal, Bellary - Steel Plant - 6MTPA (+ 2 to 3 MTPA per year second phase expansions) (+ 750 MW Captive Power Plant), 4000 acres, Rs. 30,000 crores -- MOU signed during GIM-2010
• POSCO, ? - Steel Plant - 6 MTPA ? (4 MTPA expandable to 8 MTPA ???) (+ 400 MW Captive Power Plant), 3382 acres in Gadag, Rs. 32,366 crores
• JSW - Steel Plant target 16 MTPA by 2015 existing 7 MTPA + 3 MTPA expansion u/c + 6 MTPA proposed) (+ 600 MW Captive Power Plant) -- MOU signed during GIM-2010
• JSW Severfield Structures (JSSL) - planned target 0.09 MTPA by 2012
• JSW Electrical Steel, Ballari - 0.6 MTPA
• JSW coils, Bellary - 1.9 MTPA, Rs 4,190 crore, -- MOU signed during GIM-2012
• JSW Projects, Bellary - 1.20 MTPA DRI, 3.42 MTPA CDQ, 70 Mw captive power plant, Rs 2,400 crores, -- MOU signed during GIM-2012
• Bhushan Steel Limited (+Sumitomo), Bagalakote/Koppala/Ballary - Steel Plant - 6 MTPA (+ 600 MW Captive Power Plant) -- MOU signed during GIM-2010 - withdrawn the proposal?
• NMDC, Bellary - Steel Plant 5 MTPA (intially 2 MTPA), 2500 acres, Rs.25,000 crores -- MOU signed during GIM-2010, updated in GIM-2012 as EoI
• NMDC - Planned Iron Ore Concentrate Plant - 0.03 MTPA
• NMDC - Pellet Plant u/c 1.2 MTPA
• Tata Metailks, Haveri - 6 MTPA, Rs.20,000 crores -- MOU signed during GIM-2010, updated in GIM-2012 as EoI
• Brahmani?, Bellary - 6 MTPA -- MOU signed during GIM-2010 (this project is taken over by somebody else?)
• Mineral Enterprises Limited, Hasana - 0.6 MTPA?, 400 acres, Rs. 1000 crores
• Mineral Enterprises Limited, Chitradurga - 3.5 MTPA?? 150 acres, Rs. 200 crores
• Essar Steel (Hazira Steel), Bagalkot - 6 MTPA -- MOU signed during GIM-2010
• Surya Roshani (Surya Vijayanagar STeel), Bagalakote - Steel Plant - 6 MTPA (+ 500 MW Captive Power Plant), Rs. 24,000 crores -- MOU signed during GIM-2010 - withdrawn the proposal
• Surya Roshani, Shivamogga - Steel Pipe Plant - ? MTPA (Rs. 100 crores)
• Adhunik Metaliks, Raichur - 2.2 MTPA -- MOU signed during GIM-2010
• VIC Steels, Hospet, Bellary - 2 MTPA
• VSL Mining, Bellary - 1 MTPA
• PMB Metaliks, Tumkur - 0.50 MTPA
• Renuka Infra, Bellary - 2 MTPA? -- MOU signed during GIM-2010
• Suzlon, ? - Withdrawn?
• Xindia Steels, Koppala - Pellete Plant - 0.8 MTPA
• Xindia Steels, Koppala - Steel Plant - 2.5 MTPA
• KIOCL, Bellary - Steel Plant - 1.5 MTPA upgradable to 5 MTPA
• KIOCL, Mangaluru - completed Pellet Production Plant - 1.5 to 2.5 MTPA, targetted plan 3.5 MTPA
• KIOCL, Mangaluru - Coke Oven Plant - 0.3 MTPA (+ 25 MW Captive Power Plant)
• KIOCL, Mangaluru - planned DISP Plant - 0.1 MTPA
• VISL, Bhadravathi - Steel Plant - 0.125 MTPA (~3 MTPA?, Rs 2,000 crores?)
• MSPL - completed Pellet Plant - 1.2 MTPA
• Karnataka Ferro Concentrates, Bellary - Pellete Plant - 1 MTPA, Rs. 225 crores
• Varun Industries, Bagalakote - Pig Iron Plant - 0.35 MTPA, Rs. 2,100 crores
• BMM ISPAT, Hosapete - Steel Plant - 3 MTPA, 1134 acres, Rs 16,800 crores.
• Bharat Mines & Minerals, - Steel Plant - 2.2 MTPA, Rs. 6,700 crores, 3,500 acres?
• Saint Gobain, Bellary - Ductile Iron Pipes Plant - 0.18 MTPA
• Kalyani Steels, Koppala - Steel plant - 3 MTPA, Rs 7,500 crores, 2000 acres, -- MOU signed during GIM-2012
• Kalyani Steels, Yadagiri - Steel plant - ? MTPA, Rs 12,000 crores, 2200 acres-- MOU signed during GIM-2012
• Hospet Steels (Kalyani & Mukund JVC) had capacity of 2.4 MTPA and now after expansion is it ~3 MTPA?
• Mukand, Koppala - 700,000 tonnes per annum integrated steel plant, Rs 2,892 crore
• Kalyani Steels, Ginigera, Karnataka and has capacity of producing 650,000 tpa of carbon and alloy steels.
• Kariganur Iron & Steel, Hospet - ???
• Aaress Iron & Steel, Koppal - 1.2 MTPA ???
• Surana, Raichur - ???
• Xinxing Ductile, ? 3 MTPA Pellete Plant
• MPIL Steel, Bellary - 0.025 MTPA , 21 acres, Rs. 170 crores (scaled up to 0.1 MTPA later)
• Zeenath Transport Company, Bellary - 1.2 MTPA iron ore beneficiation plant, 1.2 MTPA pellet plant, and 500,000 tonnes per annum integrated steel plant with 140 Mw power plants

Tadadi Port with handling capacity of 34.1 MTPA

[Krishnamoorthy K]

Bangalore, Nov. 17 With iron ore prices on the decline since May 2008, a number of mining companies are getting into steel production, particularly in Karnataka.

The drop in demand for iron ore from China, which accounts for over 90 per cent of India’s iron ore exports, has led the industry to explore other markets such as Japan, South Korea, Pakistan, Turkey and the UAE, sources in the Federation of Indian Mineral Industries (FIMI) said. “While the problem of defaults in China has abated, Pakistan is not a reliable option in view of the law and order situation,” they said.

Pointing to the trend of mining companies getting into steelmaking, FIMI sources said that Xinxing Group and China National Metal, which have entered into a joint venture with three Indian partners, are planning to set up an iron ore pellet plant at Koppal in Karnataka. The Indian partners in the joint venture are Manasara Investments, Kelachandra group and Sigma Minmet.

Similarly, MSPL Ltd, a Bellary-based iron ore mining company, is planning to set up two iron ore beneficiation plants in Bellary district. MSPL also plans to utilise the iron ore fines as the basic raw material for its pellet plant at Koppal, now under construction.

Mineral Enterprises Ltd, an exporter of medium grade iron ores, is also in the process of setting up an integrated steel plant in the Chitradurga-Hassan area, hoping to use gas from Dabhol for its project, FIMI sources said.

FIMI sources said that the global prices for iron ore with 63.5 per cent Fe content had fallen from $170 a tonne in May 2008 to $56.5 a tonne in March 2009. At present, iron ore prices are in the region of $100 a tonne.

Increase in taxes

While decrying the increase in taxes on the mining sector, they said the average cost of extraction was about Rs 500 a tonne ($11-12). “When iron ore prices were at rock bottom at the turn of the century, steel industry players did not want to get into mining. Now the wheel has turned full circle,” they said.

Underlying the emergence of the state as a steelmaking centre, Essar Steel recently unveiled plans to set up a $4.2- billion steel plant with a production capacity of six million tonnes per annum in Bagalkot.

The project will be set up in two phases. The first phase, with a production target of three million tonnes per annum, includes the construction of a coke-oven plant, a battery unit and a pellet plant. At the end of the second phase, the production capacity is expected to touch six million tonnes per annum, FIMI representatives said.

Essar Steel plans to lease an iron ore mine in the area to ensure a steady supply of raw material and is in talks with the State, they elaborated.

Source: The Hindu Business Line

Tata Metaliks sparkles on expansion plans

[Krishnamoorthy K]

Mumbai: ArcelorMittal's Indian unit has sought approval from the Karnataka government to set up a steel plant, the company said in a statement on Monday.

The Karnataka project will be in addition to ArcelorMittal's existing plans to build steel plants in Orissa and Jharkhand, the company said. Earlier ET Now television reported the Karnataka steel plant would have a capacity of 6 million tonnes a year.

The company statement did not mention the plant's capacity. ArcelorMittal said it would disclose more details on cost, capacity and a timeline after it completes technical studies in three to four months.

Source: DNA

[Krishnamoorthy K]

London, Nov 20 (PTI): British structural steel major Severfield-Rowen has announced the signing of its second joint venture in India to establish a structural metal decking company in Mumbai and Bellary, Karnataka.

Based in Thirsk, Yorkshire, the company has reached an agreement between JSW Severfield Structures and SMD Asia.

JSW Severfield Structures is a 50:50 joint venture between Severfield-Rowen and JSW Steel in November 2008 for design, production and erection of structural steelwork to principally service Indian markets.

SMD Asia is a limited liability partnership formed by the directors of SMD, a British company which specialises in design, production and installation of metal decking for construction projects.

Source: PTI

[engineer.akash]

great krishnamoorthy

[Krishnamoorthy K]

BANGALORE: Karnataka has always been the preferred destination for miners, especially iron ore extractors. Thirty minerals are extracted from 1.69 lakh hectares across 20 districts of the state.

Iron ore has a lion’s share of this — 96,000 hectares. Limestone and manganese follow at 24,837.01 and 14,932.96 hectares respectively. Most iron ore and manganese extraction is in Bellary, and limestone is in Gulbarga.

According to the department of mines and geology, iron ore is the only mineral in the state that is exported. Of the whopping 473.16 lakh tonnes produced, 271.35 lakh tonnes are exported.

PALTRY REVENUE NO MORE

All these years, the government used to obtain a small amount as tax from mining. The state used to get 4% as VAT and royalty, while the Centre got 15% export duty on every tonne of iron ore.

For iron ore, royalty varied from Rs 4 per tonnne to Rs 27 per tonne, depending on Fe content. If it’s 40%, the rate was Rs 4 per tonne, and Rs 27 for more than 65%.

This meant that iron ore miners earned between Rs 3,000 and Rs 5,000 per tonne, but paid the government only Rs 135 (if sold in domestic market) and Rs 540 (exports).

However, on August 13, 2009, the Indian Bureau of Mines (IBM) fixed royalty based on ore’s grade and sale value. "The IBM comes out with a monthly bulletin on sale-value prices. The royalty will be 10% of that," said an official from the mines and geology department.

Source: TOI

[engineer.akash]

Arcelor Mittal proposes steel plant in State


V. Sridhar

Six-million-tonne steel unit and 750-MW power plant planned in Koppal-Bellary-Hospet area

The project will require 4,000 acres of land

Investment for the project to be about Rs. 30,000 crore


— Photo: G.R.N. Somashekar
Welcoming investment: Chief Minister B.S. Yeddyurappa greeting a delegation from Arcelor Mittal during a meeting in Bangalore on Friday.

Bangalore: Senior officials from Arcelor Mittal India, the Indian subsidiary of Arcelor Mittal, the world’s biggest steel producer, met Chief Minister B.S. Yeddyurappa on Friday to hold “preliminary discussions” on the company’s proposal to establish an integrated steel plant in north Karnataka.

Emerging from the 45-minute meeting with company officials, Mr. Yeddyurappa said Arcelor Mittal proposed to establish a six-million tonne steel plant and a 750-MW power plant in the Koppal-Bellary-Hospet area. He said the company has “evinced interest” in three sites in the region. However, he refused to divulge more details, saying the discussions were still in the early stages. The project would require 4,000 acres of land, which would be made available to the company by the Karnataka Industrial Areas Development Board.

Reiterating the Government’s “full support” to the project, Mr. Yeddyurappa said the investment in the project was likely to be about Rs. 30,000 crore, resulting in 10,000 jobs.

Chief Secretary S.V. Ranganath said the project could commence within six months of receiving all clearances, including environmental clearances, from the Centre. “The project can take off within four years from groundbreaking,” he said.

The Arcelor Mittal India team was led by its CEO Vijay Bhatnagar; Sudhir Maheshwari, member of the Group Management Board of the parent company; and Sanath Mishra, CEO (Greenfield Projects, India).
Mining leases

Earlier in the day, on the sidelines of a conference organised by the Federation of Indian Chambers of Commerce and Industry, V.P. Baligar, Principal Secretary, Industry and Commerce, told The Hindu that although the Government had received more than 200 applications for mining leases (for iron ore), “the Government would prefer to issue the leases to investors who add value within the State.” Prior to the meeting between the company officials and the Chief Minister, the Screening Committee of the Industries and Commerce Department considered the company’s proposal.

Minister for Large and Medium Industries Murugesh Nirani said: “Further discussions with the company will resume in about 15 days.”
Invitation

In a statement issued from London, L.N. Mittal, Arcelor Mittal Chairman and CEO, said the company’s proposal came as a result of “an invitation from the Karnataka Government.” He said the State would be “an ideal place to build a world-class steel plant.” “We look forward to working closely with the State Government as the project progresses,” he added.

http://www.hindu.com/2009/11/28/stor...2854310400.htm

[Krishnamoorthy K]

Steel giant ArcelorMittal on Saturday agreed to invest Rs50,000 crore to set up a six million-tonne mega steel plant in North Karnataka in response to an invitation from chief minister BS Yeddyurappa.

The plant is expected to generate employment for at least 20,000 people. The Rs30,000 crore phase-I will also include a 750 MW thermal power plant. The phase-II of the project will cost Rs20,000 crore.

Source: DNA

Phase-II is not clear. Whether it is expansion or manufacturing of other products?

[Krishnamoorthy K]

Recession seems to be no dampener for India Inc. For, if the line-up of investment proposals knocking on Karnataka doors is any indicator, corporate India seems to have been resilient to stave off any after-effects of recession and is well on track for expansion as also new investments.

Highly placed official sources told Deccan Herald that nearly Rs 69,000 crore investment from as many as 28 project proposals is now awaiting the State High Level Clearance Committee (SHLCC).

Sources said, these projects are over and above the Rs 30,000 crore plus investments proposed by ArcelorMittal.

They pointed out that besides a captive gas-based power project, the Mittals have also promised investments of another Rs 15,000 crore to Rs 20,000 crore for expansion of their project by 2 to 3 metric tonne per annum, once their proposed project gets underway.

Posco defers proposal

In this regard, they said, South Korean major Posco, which too was scouting for alternative site and had zeroed in on Karnataka, has now temporarily deferred their plans to February. They pointed out this development could be in the light of the Mittals’ proposed foray into Karnataka and they would like to wait and watch how this spans out before taking a call on the viability. Sources said nearly as many as 10 cement projects worth investments of Rs 55,000 crore have been vetted by the screening committee. Likewise, they said, among them are ACC with a Rs 3,500 crore proposal, Grasim with Rs 3,500 crore naming a few.

Incidentally, confirming State government’s claims that Surya Roshni Limited’s subsidiary Surya Global Steel & Gen Power was looking at Karnataka, Surya Roshni Limited Deputy Managing Director (Project & Corporate Management) Vineet Garg, in a letter to Deccan Herald, stated the company has indeed proposed an integrated steel plant in Karnataka, following an informal meeting with Chief Minister B S Yeddyurappa.

Feasibility report

Garg said once the State government clears their proposal, the company would thereafter undertake feasibility report and appropriate investments would be made after due approval from the company’s board. Among proposals placed before the screening committee includes the Rs 7,440 crore Surya Global project, Rs 250 crore PET jar project, Rs 450 crore IT & ITeS project by Wipro Ltd, Rs 450 crore aerospace project, Rs 250 crore sugar project, Rs 4,500 crore rectified spirits and alcohol project by Zuari Fertilisers & Chemicals Ltd, Rs 90 crore biscuit project by Kolkata-based company, logistic support proposal of Rs 700 crore, sources said.
These proposals would be shortly placed before the SHLCC for formal clearance sources said, following which companies would go in for detailed project reports among other formalities before final roll outs of implementation milestones.

Source: DHNS

Wow! Cement corridor is also shaping up with 10 proposals amounting to Rs. 55000 crores!

[engineer.akash]

Krishnomoorthy that Zuari fertilizers is due to come up in Belgaum right??

I hope with all those investments flight service from belgaum resumes.

[engineer.akash]

Steel major Posco in talks with Karnataka for setting up plant

Special Correspondent

Company expected to invest Rs. 20,000 crore in the State

Posco to be allotted captive mines

Final round of talks to be held soon

BANGALORE: After the agreement with the world’s largest steel maker, Arcelor Mittal, to set up a major steel plant in one of the northern districts of Karnataka, discussions are now on with yet another major steel manufacturer, Posco, and this is expected to fructify in about a fortnight.

Discussions are on between the State government and the top management of Posco and a final discussion in the presence of Chief Minister B.S. Yeddyurappa is expected to be held in about a fortnight.

Posco is expected to invest Rs. 20,000 crore in a plant to manufacture four million tonnes initially and eight million tonnes after expansion.

Briefing presspersons after a daylong high-level meeting with senior officials of the Department of Industries and Commerce, the Minister for Large and Medium Industries, Murugesh Nirani, said, “We are confident of finalising the agreement with Posco and the discussions are now at an advanced stage. Both Arcelor Mittal and Posco will have captive mines in their respective joint ventures with the State government-owned Mysore Minerals Ltd.”

Enough iron ore

The Industries Department has estimated that the State has enough iron ore reserves for two major steel plants. “The State government is committed to value addition to the iron ore mined in the State.” A senior management team from Arcelor Mittal has visited five districts — Bagalkot, Bijapur, Bellary, Koppal and Dharwad — to finalise the location for the steel plant. The company has sought 4,000 acres of land and the State government has agreed to provide the land in any of the five districts. The land will be acquired by the Karnataka Industrial Areas Development Board (KIADB).

At the preparatory meeting held at the Global Investors’ Meet in June this year, it was decided to acquire one lakh acres of land in and around all the second tier cities, apart from around 2,000 acres adjoining Bangalore. As such, the KIADB has taken steps to acquire 50,000 acres of land.

A preliminary notification has been issued for the acquisition of 30,000 acres and the government will be paying market value to the owners to hasten the acquisition.

http://www.hindu.com/2009/12/01/stor...0155630700.htm

[engineer.akash]

Accolades for BSY govt
Bangalore, Dec 3, DHNS:

The Yeddyurappa Government has received accolades from the global steel entrepreneur Lakshmi N Mittal, who has proposed to set up a steel plant in Karnataka. Mittal, Chairman & CEO of ArcelorMittal, has written to the CM appreciating the Government’s policies to attract investments for the State.

He added he would look forward to meet the CM in the near future.

http://www.deccanherald.com/content/...-bsy-govt.html

[engineer.akash]

Steel-production hub planned

Staff Correspondent

20,000 acres of land to be acquired

Cable car facility to come up at Bellary fort

BELLARY: The process of acquiring around 20,000 acres of land in and around Sandur and Hospet taluks in Bellary district for the purpose of developing a major steel-production hub will commence soon, Minister for Tourism and Infrastructure G. Janardhan Reddy has said.

Mr. Reddy, accompanied by Director of Tourism Vishwanath Reddy and Joint Commissioner Sriramaiah, was here to inspect the site where a cable car facility is proposed to be set up. The cable car will enable tourists to visit the Bellary fort. He said the Bellary fort would be developed as a major tourist attraction at an estimated cost of Rs. 25 crore.

The Minister said the 20,000 acres had already been identified and a notification for acquisition would be issued shortly. Efforts were now on to provide other facilities such as drinking water, railway, road and port connectivity for the project.

“Basavaraj Bommai, Minister for Water Resources, has already issued an order allotting 0.5 tmcft of water to the Vijayanagara Area Development Authority which will implement the projects. The Cabinet on Thursday approved a plan to develop the Tadari port.

The Government is also keen on constructing reservoirs with the help of industrialists so that water can be conserved and distributed to farmers,” he said.

The Tourism Department had released Rs. 1.20 crore for silt removal from the Nagala Kere, he added.

The Minister also said that the work on fencing the Sangankal Hills had begun.

http://www.hindu.com/2009/12/05/stor...0552750300.htm

[Krishnamoorthy K]

NEW DELHI: Karnataka is doing everything to ensure the proposed Rs 30,000-crore investment in the state by steel giant ArcelorMittal, including easy clearances for mining lease and land acquisition by the end of December.

The state has formed a special screening committee to expedite regulatory clearances and has targeted to give these approvals within this month.

"We welcome ArcelorMittal to set up their 6 million tonnes per annum (MTPA) venture here in the state and will clear all necessary approvals in December," Karnataka's Commissioner for Industrial Development Raj Khatri said.

ArcelorMittal has identified Karnataka as a possible location for their project, but is yet to disclose the size of the project in terms of capacity or investment.

"A screening committee, constituted by Chief Minister BS Yeddyurappa for expediting the proposals of the steel giant, has cleared the mining lease application of the ArcelorMittal and we will provide all necessary clearances to it this month," Khatri, who is also the Member Secretary of the Screening Committee, said.

The steel giant had last month short-listed sites in the iron ore-rich Bellary region in north Karnataka for the integrated plant.

Source: ET

[Krishnamoorthy K]

New Delhi, Dec 4 (ANI): Union Government on Friday clarified that it will not initiate mining activities in the Kudremukh area of Karnataka without specific clearance from the Supreme Court.

In written reply to the Rajya Sabha Union Minister of State for Steel A. Sai Pratap also ruled out fixing a time frame for the relaunching of the Kuderemukh Iron Ore Company (KIOCL).

The apex court ordered that no mining activities could take place in the biologically rich Kuduremukh area following its declaration as a National Park.

Pratap informed the House that the KIOCL has written off Rs. 61.65 crores during 2005-06, being the written down value of plant and machinery and building, as on the date of closure of the mine.

The KIOCL is incurring an expenditure of around Rs. 60 crores per annum on Kudremukh site towards salary and other amenities of employees posted at Kudremukh, security of plant and machinery and for maintenance of plant and equipment at Kudremukh.

The mining activities in the Kuduremukh region was opposed by people of the area including tribals and intellectuals.

In the year 2000, the movement was divided and took a violent turn paving way for the entry of Maoists in the region. (ANI)

Source: Track.in

L&T in race for KIOCL's Rs 300 crore order
Re-tender for KIOCL pipes project a board decision
KIOCL likely to post loss in Q4
Suitable rehab package for KIOCL labourers
KIOCL eyes mining revival
KIOCL plans to set up steel plant - 5 MT in Ramanadurga(?), Karnataka
KIOCL issue will be sorted out with CM: Minister
High-powered panel not in favour of NMDC-KIOCL merger
Roadmap for KIOCL

KIOCL has Pelletization and high grade Pig Iron (of capacity 2.3 MT) complex at Bykampady, Mangalore. It has a proposal for ductile iron and steel pipe (DISP) project (of capacity 1 MT) near its existing complex.

KIOCL problems started when supreme court ordered closure of mining works at Kudremukha. Now KIOCL does not have its own mine hence purchasing ore from NMDC. No idea why no alternative mine is allocated to KIOCL so far.

http://www.kudremukhore.co.in/

[Krishnamoorthy K]

The cabinet has also given its nod to the development of Hagari port (Tadadi or Tadri port) at the cost of Rs 3,000 crore through PPP (public private partnership) model, he (Tourism minister G Janardhan Reddy) said. He welcomed the move by Mittal, NMDC, JSW groups' move to acquire land in Bellary for the establishment of steel plants. Steel plants at the total capacity of 33 million tons would be established in Bellary by the Mittal, JSW and other groups.

As minerals are not allowed to be transported to other parts as per the mining norms, many mining companies have shown interest in setting up steel plants in Bellary.

Source: TOI

33 million tons in Bellary district alone? The limit go upto around 50 million tons all over Karnataka.

[Krishnamoorthy K]

With steel majors flocking to Karnataka in droves bringing mega project proposals envisaging massive investments, the State is turning Bellary district a Steel City a la Jamshedpur, to roll the red carpet.

Incidentally, Bellary district houses India’s second largest steel plant JSW Steel Limited which boasts of a capacity of 7.8 million tonnes. Official sources told Deccan Herald that a blueprint to make Bellary district — Steel Manufacturing Hub has been put in place. Styled as Vijayanagar Area Development Authority (VADA), sources said a massive investment of Rs 80,000 crore is envisaged for the proposed project. The VADA vision, sources said, is to develop the area as India’s steel hub and key engine of economic growth with world class infrastructure and social facilities to enhancement of quality of life in and around Bellary district.

To benefit 43 villages

Sources said the project, which envisages regional economic prosperity of Rs 50,000 crore annually, will see development of 43 villages notified for the Steel City, with 2,00,000 beneficiaries. The master plan will see orderly and planned development of 582 sq km region in the district. The VADA plan was conceived, sources said, taking into consideration availability of rich iron ore deposits, presence of existing operating and expanding industrial units in the Bellary belt, for planned and integrated development of steel-driven industrial urban complex. Sources said consultants have been identified to convert VADA into India’s best industrial area for steel, mining, township and ancillaries.

The Vijayanagar Area Development Authority, sources said, will be engaged in planning and providing infrastructural support to industrial investments, besides associated urban and social infrastructure in the area.

Apart from acquisition and development of land, the authority, will spearhead setting up of social infrastructures like housing, townships, parks and centres of recreation while being engaged in creating investor friendly environment.

From speedy allotment of land, VADA, sources said, will boast of excellent road, water and rail connectivity given its proximity to VADA Port (Tadari Port). A slew of financial incentives and subsidies will be provided as stipulated by the State and Centre, and single window clearance facilitation for prospective investors, sources said. Incidentally, the government, through a Gazette, has notified Vijayanagara Development Area Authority comprising total area of 580.70 Sq Km (58070.12 hectares), covering 43 villages from Bellary, Hospet and Sandur taluks. Bellary district is renowned for its rich natural resources specially minerals in three talukas of Sandur, Hospet and Bellary.

The annual production of iron ore is over 2.75 to 4.5 million tonne. There are 23 units of large and medium scale industries with investment of Rs 447.76 crore. Besides Sathavahana Ispat Ltd, Kirloskar, other major industries include Mukund Steels, NMDC and Kalyani Steels.

Source: DHNS

[Krishnamoorthy K]

Originally Posted by OneGlobe

Source: http://www.deccanherald.com/content/...urn-steel.html

After IT, State may turn into steel capital of India
Bangalore, Jan 6, DHNS:

With cash flush global and domestic steel majors coming to Karnataka, the State, thanks to its pro-active investor-friendly policies, may soon upstage others in the country to turn into steel capital of India.


Spearheaded by world number one steel conglomerate ArcelorMittal, world’s fourth largest steel producer Korean chaebol’s Posco India Private Limited, nearly 11 high profile steel proposals received ‘in principle’ clearance on Tuesday.

While Arcelor Mittal India Limited, yet to zero in on its site and has conducted recce of Bagalkot, Bijapur and Bellary belt, for its six million tonne per annum plant, will bring in whopping Rs 30,000 crore investments generating 10,000 jobs once its goes on stream.

Company officials said the integrated steel, pig iron and pellets plant has proposed a 750 mw captive power plant, sought 4,000 acre of land, 360 metric tonne of iron ore for its ambitious project.

Meanwhile, it is learnt that Steel tycoon Lakshmi N Mittal is likely to meet Chief Minister B S Yeddyurappa in New Delhi to announce ArcelorMittal’s project. Company sources told Deccan Herald that the project will be funded through internal accruals. Likewise, Posco India Pvt Ltd, which plans to put up its six million tonne per annum finex steel plant with 400 mw captive power generation at Bellary, will bring in investment of Rs 32,336 crore creating over 20,000 jobs.

Pointing out that their intention currently is exploratory in nature company officials told Deccan Herald that they are focussing on the 12 MTPA green field steel plant near Paradip, Jagatsinghpur District, in Orissa with investment of US$12 billion. Stating they would set up their Karnataka project in two phases, sources said it was incumbent on few conditions being met.

Slew of proposals

Similarly, domestic diversified leader in lighting and steel pipes business Surya Roshni Limited is putting up a 5 MTPA steel plant — styled as Surya Vijayanagar Steels & Power Limited, and may zero in on VADA Region in Bellary or Bagalkot, pumping Rs 20,000 crore and generating employment of 10,000. Besides these biggies, Kolkata-based Adhunik Metaliks Limited has proposed Rs 5,568 crore integrated steel plant in Raichur, with 2.2 MTPA capacity resulting in employment for 2,187.

Other big ticket proposals include Bangalore-based companies like VIC Steels Pvt Ltd’s Rs 6,515 crore 2MTPA integrated steel plant at Torangallu Village in Hospet, Bellary creating 4,000 jobs; VSL Mining Company Ltd 1 MTPA plant in Bellary costing Rs 2,510 crore envisaging creation of 724 jobs. Mineral Enterprises Ltd’s 0.6 MTPA integrated steel plant in Hassan at a cost of Rs 1,993 crore generating 870 jobs. PMB Metaliks’ Rs 1,400 crore 0.50 MTPA integrated steel plant in Tumkur resulting in 1,600 jobs. Krishi Technologies’ mini integrated steel plant in Tumkur with investment of Rs 135 crore to create 2,000 jobs.

Bellary-based RBSSN Ferrous Industries Pvt Ltd’s 0.6 MTPA iron oxide pellets plant at Vardapur in Bellary at a capex of Rs 266.8 crore generating 160 jobs. New Delhi-based Bhadrashree Steel & Power Ltd’s Rs 146.83 crore 2x100 tonnes per day sponge iron plant at Kunikere Village in Koppal district and see jobs for 425. Official sources said once formal MoUs are inked in June during Global Investors’ Meet it will be full speed towards fruition of the intentions.

Good news for NE Karnataka. Now, government has to seriously focus on improving road infrastructure along with rail. Bellary, Gulbarga airport are also important. Hope that farmers issue will be solved amicably.

[engineer.akash]

Surya Vijayanagar plans steel plant in Karnataka

Nagesh Prabhu

Bangalore, Jan. 9

Surya Vijayanagar Steels and Power Ltd, a subsidiary of Surya Roshni, plans to invest Rs 20,000 crore to establish a five million tonnes per annum (mtpa) integrated steel plant, along with a 500 MW captive power plant in Bagalkot district in north Karnataka.

The group, which is in the steel and lighting business for the last 35 years, would set up the plant on 4,000 acres in Bagalkot district, which has several historical monuments. The company would identify the land and it would be acquired by the Karnataka Industrial Areas Development Board (KIADB), a State government undertaking. The exact location has not yet been finalised, according to officials in the Industries Department.

Jobs for 10,000

The project, which was cleared by the State High-Level Clearance Committee (SHLCC) chaired by the Chief Minister, Mr B.S. Yeddyurappa, would provide employment to 10,000 persons. The company has a turnover of Rs 1,700 crore. It will invest Rs 4,120 crore on land and building, Rs 13,880 crore on plant and machinery, Rs 1,000 crore on working capital margin and Rs 1,000 crore as contingency.

The company, which has applied for the mining lease, would mobilise Rs 6,700 crore from the promoters' contribution and raise term loans of Rs 13,300 crore.

The proposed steel plant would get 15 MGD water from the Ghatapraba and Krishna rivers subject to the approval of the Water Resources Department. The SHLCC has advised the promoters to adopt rain harvesting and to adopt water conservation facilities.

Till the establishment of the 500 MW power plant by the company, the Gulbarga Electricity Supply Company (GESCOM) would supply 90 MW of power. The officials in the Industries Department said that based on the request of the company, the extra concessions could be considered.

http://www.thehindubusinessline.com/...0952531700.htm

Water is a major hindrance.

[Kewl Batty]

I see. I'm against deforestation. They shouldn't move the plants to coastal areas. But they can put the desal plants alone along the coast where ever possible and put pipelines for even 700km to reach the steel plants. Thats a huge task but worth it.