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    Dharmendra Pradhan to inaugurate an integrated steel hub

    Synopsis

    Government estimates suggest capacity addition in the steel hub would entail capital investments of over $70 billion and lead to an incremental Gross State Domestic Product of over $35 billion through steel alone, besides creating over 2.5 million jobs across the steel value chain in the region, an official statement from the steel ministry said.

    2Agencies
    Union steel minister Dharmendra Pradhan
    KOLKATA: The union steel minister Dharmendra Pradhan is set to inaugurate an integrated steel hub on Saturday encompassing Odisha, Jharkhand, Chhattisgarh, West Bengal and Northern Andhra Pradesh, that aims to attract investment of nearly $70 billion in the steel sector and spur economic growth across eastern India. Part of the Prime Minister Narendra Modi’s ‘Purvodaya’ initiative for focused development of eastern states, the project will essentially focus on three key elements. This include, capacity addition through easing the setup of greenfield steel plants; development of steel clusters near integrated steel plants as well as demand centres and transformation of logistics and utilities infrastructure in the eastern region.

    Government estimates suggest capacity addition in the steel hub would entail capital investments of over $70 billion and lead to an incremental Gross State Domestic Product of over $35 billion through steel alone, besides creating over 2.5 million jobs across the steel value chain in the region, an official statement from the steel ministry said.

    The eastern states are rich in natural resources and collectively hold nearly 80% of the country’s iron ore, most of domestic coking coal reserves and significant portion of chromite, bauxite and dolomite reserves. As per projections, the eastern belt has the potential to add more than 75% of the country’s incremental steel capacity envisioned by the National Steel Policy. Out of the 300 mt steel capacity by 2030-31, the region alone is capable of contributing over 200 mt. The steel ministry feels the steel hub which will serve as a catalyst in the transformation of the eastern region following the Rs 100 lakh crore infrastructure investment announced by the government in the next 5 years.

    The ministry has already taken various steps to make this hub a reality like framing a policy facilitating creation and upgradation of steel clusters with Kalinganagar and Bokaro have being identified as pilot locations for steel clusters around integrated steel plants. Task Forces and Working Groups, with the support of the respective State Governments, have also been created. To ease capacity addition through greenfield route, a framework policy is being created to address the challenges faced in land acquisition, raw material linkage and obtaining timely clearances. Critical logistics and infrastructure projects are also being identified for expedition across the 12 major steel zones identified in the region (Kalinganagar, Angul, Rourkela, Jharsuguda, Nagarnar, Bhilai, Raipur, Jamshedpur, Bokaro, Durgapur, Kolkata, Vizag).


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