Jajpur: Neelachal Ispat Nigam Ltd (NINL) at Kalinganagar in Jajpur district will undergo expansion soon as it plans to increase its crude steel production capacity to 9.5 million tonnes per annum (MTPA).
The Neelachal Ispat was established in 1982 for iron and steel production. In line with the National Company Law Tribunal’s process, the corporate insolvency resolution for NINL began February 6, 2019.
Accordingly, Tata Steel Long Products Limited was declared the successful investor in this process. Share sale and agreement signing was completed between NINL stakeholders and Tata Steel Long Products Limited March 10, 2022. Following this, Tata Steel completed the acquisition of NINL July 4, 2022.
Plans are in place to increase the crude steel production capacity at NINL plant from the present capacity of 0.981 MTPA to 9.5 MTPA annually. The Ministry of Environment, Forest, and Climate Change of the Government of India has been approached for permission to conduct necessary public hearings regarding this proposed expansion.
According to available information, raw material demand for this steel plant is expected to increase from 4.7 MTPA to 27 MTPA. The plant’s maximum power requirement of 758 megawatts (MW) will be met with 557 MW from grid, 288 MW from the captive power plant, and 78.5 MW from renewable energy sources.
The plant will also require around 400 cubic metre to 4,600 cubic metre of water per hour, which will be sourced from the Kharasrota river. The estimated cost of the proposed expansion project is around Rs 61,769.03 crore, and its implementation has the potential to create 4,500 direct and 9,500 indirect employments.
The National Steel Policy aims to reach 300 MTPA steel production by 2030. This project is expected to accelerate regional development, improve current infrastructure, and enhance transportation facilities to meet the management of the plant and the expansion of the project.
Moreover, rail and local transportation facilities will be further upgraded. Environmental impact assessments conducted by the company highlight these improvements.
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On the other hand, frequent protests by the Displaced Landowners’ Forum, which has outlined a 34-point charter of demands for fulfillment, raise concerns about the success of the proposed public hearing. Since February, families displaced by the NINL plant have continued their protests in front of the plant due to unmet demands.
Despite a tripartite meeting being held involving plant authorities, protesters and Kalinganagar ADM, a solution has yet to be reached. Consequently, protesters locked up the main gate of NINL and also of Tata Steel May 20 this year and staged an economic blockade.
This apart, office bearers of around 25 organisations across the state gathered at Birbhumi in Ambagadia in Kalinganagar to protest and present their demands. These demands are yet to be fulfilled.
When contacted, trade union leader Babuli Purty expressed support for NINL expansion but stated that the public hearings would be opposed if the demands of the displaced were not met.
PNN