NAGPUR/GADCHIROLI: Gadchiroli district is set to contribute as much as 30% of the country’s steel production in coming days, said deputy chief minister Devendra Fadnavis on Wednesday, while laying the foundation of the second integrated steel project in the Maoist-hit district in run-up to state elections.
Addressing the event along with deputy chief minister Ajit Pawar, he said development will not affect forests or other resources and 80% jobs would go to locals.State industries minister Uday Samant who also attended the event said Gadchiroli may soon get the tag of an industrial city.
The company – Surjagad Private Limited – which acquired 340 acres has proposed to come up with a Rs 10,000cr project in four phases at Wadlapeth village in Aheri tehsil of the tribal-dominated district. Lloyds Metals and Energy Limited (LMEL), the first corporate to invest in Gadchiroli, operates an iron ore mine in Etapalli Tehsil and is in the process of setting up a 4 million ton capacity steel plant in Konseri village, 100km off the mines.
Sources in chief minister’s office said 12 million tons of steel products is likely to be produced from Gadchiroli in coming years.
Of this Surjarad Ispat’s production is expected to reach 8 million tons with 4 million tons by LMEL. The latter has a projected investment of ₹35,000 crore for its project.
“We plan to finish levelling of land and building a compound wall and begin with the first phase of the project. With a capacity of 0.75 million tons, the first leg will entail an investment of ₹2,500 crore of which 15% would come as a foreign direct investment (FDI),” said Vedansh Joshi a director in Surjagarh Ispat.
Joshi said a production capacity of 8 million tons is the long-term projection. In immediate run, there are plans to start off with 0.75 million tons and expand to 2 million tons.
The company has already applied for an environmental clearance (EC) for which a public hearing is scheduled in September. With the first phase expected to be operational by 2026 and the full capacity of 8 million ton would be achieved by 2031, he said.
Meanwhile LMEL hopes to start its 4 million ton steel making facility in next three to four years as one of its direct reduced iron (DRI) plant is already functional, said a company source.
Further expansion is also planned in subsequent phases.
Joshi said Surjagad Ispat is a parent company floated for the Gadchiroli venture. The funds would come from its parent company, he said. The MLA and state’s minister for food and drug administration Dhramrao Baba Atram has given away 240 acres. The company source said the land pool has come from his family, and rest purchased directly from private individuals.
Since it is tribal land the process for getting an approval and registering the deed has been initiated.
Earlier spelling out details of the project, Joshi said it includes a 1.6 million ton per annum (MTPA) beneficiation plant a 1.2 MTPA pellet plant a sponge iron plant of 5×650 tons per day an induction furnace of .75 TPA a rolling mill of similar capacity and a captive power plant of 120 MW.
