Production of 100 Million Tonnes of Steel per year and 50% of its value addition in Odisha by the year 2030 calls for a comprehensive action plan
Govt of India contemplates to produce 300 Million Tonnes of steel in India by 2030. This will help achieving an economy of 5 trillion US dollars from the present 2.75 trillion US dollars. Part of this ambitious programme is expected to be sourced from Odisha. Govt of India expects 100 million tonnes of Steel manufacture by 2030 from Odisha. This will help Odisha achieve 1 trillion US$ Economy by 2035.
As of now Odisha produces about 20 million tonnes of steel amid several crises viz. shortage of Iron Ore supply and coal supply, inadequate power generation, problems related to transportation of raw material and finished products, abnormal delay in construction of railway lines and highways, land acquisition problems, employment to land losers etc.
Govt. of India and Odisha state Govt envisages achieving 100 million tonnes per year by (i) increasing the capacity of existing steel plants (brownfield expansion)and (ii) by setting up of new greenfield plants in Odisha. In both the cases, the above-mentioned problems will continue. Hence achieving 100 million tonnes of production per year is a herculean task in the next 10 years. State Govt’s policy of converting 50% of finished steel to value added products is equally a big challenge. However, it is not an unachievable task. Central Govt and State Govt have to work on a mission mode by setting up a core group for monitoring various activities related to this ambitious plan.
From the present capacity of 20 million tonnes per year, another 80 million tons per year addition will need about Rs. 4 lakh crore investment @ Rs 5000 Crores per 1 million tonnes. Besides, for value addition of steel another about Rs. 1 Lakh Crore will be required. Similarly, for infrastructure projects like new ports, railway lines, highways, power generation, transmission and distribution, water supply, urban development etc, another Rs. 1 lakh Crore has to be invested.
Implementation of these projects is a big challenge and calls for immediate attention to the following:
- Efficient Mining and mine planning of ores and minerals like iron ore, coal, chrome etc. Efficient mineral beneficiation and use of low-grade ores and fines, mineral conservation practices etc
- Environmental protection, pollution control, waste management, miner’s health and safety, afforestation, compensatory forest generation etc.
- Adoption of appropriate technology for cost-efficient production of various metals, alloys and their value-added products.
- Efficient utilization and control of various raw materials and inputs like iron ore, coal, water, electricity etc.
- Efficient financial, commercial and management functions like import-export-sales functions, audit and taxation, banking and foreign exchange, transport and shipping logistics
- Smooth transportation of raw materials and finished products-Development of Rail, Road and Port infrastructure.
- Speedy land acquisition, rehabilitation, CSR activities, skill development, Public relations, employment generation etc.
- Construction of power plants, Transmission, Distribution and wheeling of power
- Urban development and civic amenities
- Quick approvals by various state agencies and central statutory bodies.
Odisha Govt has adopted 5T solutions and has setup a separate Dept for implementation of various projects. The need of the hour is to set up some reputed consulting firms and top-notch universities and institutions which will guide and advise the stakeholders in the smooth implementation as well as post commissioning. The following institution may be considered for setting up in Odisha which will strengthen the infrastructure of the state:
- One full fledged branch at Bhubaneswar of MECON, Ranchi, a mining and metallurgical firm under Ministry of Steel with a Director level at the top with design and drawing facilities.
- One full fledged branch of Central mine planning and design institute at Bhubaneswar
- One full fledged branch of National Environmental Engineering Research Institute (NEERI), Nagpur to be located at Bhubaneswar.
- One branch of National Power Training Institute (There are 8 branches in different cities of India but not in Odisha.)
- Setting up of National Steel University at Kalinganagar under Ministry of Steel with support from Odisha Govt.
- Setting up of Vedanta University in Puri by Anil Agrawal Foundation.
- Setting up of Indian Institute of Foreign Trade under Ministry of Commerce, GoI
- Setting up of a campus of India Maritime University in Odisha under the Ministry of Shipping, Govt of India.( There are 8 IMU campuses almost in all maritime states except Odisha.)
- One Research and Development Centre for steel and alloy steel at Rourkela
- IPICOL to promote ancillary and downstream industries to manufacture equipments like pumps, compressors, blowers, turbines, generators, electrical motors, blast furnace components, coke oven batteries, steel melting equipment, rolling mills, driers, furnaces, cooling towers, industrial paints, bearings, conveyor belts etc used in various industries.
Odisha should make full use of such an investment opportunity. Central and State Govt should start planning for such an ambitious program at the earliest so as to realize the Industrial ambition of the state.