[vc_row][vc_column][vc_column_text]
In a shot in the arm for debt- ridden Jindal Stainless Group, the Odisha government has cleared a Rs 1,000-crore downstream stainless steel park proposed by the company at Kalinganagar in Jajpur district.
This will be first major investment by the company in years after it ran into trouble a few years back over mounting debt and falling revenues. Post-corporate debt restructuring, aided by a pick up in the steel market and the government’s policy support, the company has now turned around operations, reporting profits for four consecutive quarters.
Sources said the Odisha government on Friday approved the company’s proposal to set up the steel park, which as per a 2007 estimate, would entail an investment of Rs 704 crore by Jindal Stainless (JSL). The actual investment could be much higher, given the changes in cost structure since then.
Along with JSL’s park, Odisha also cleared Gitanjali Infratech’s prposal for setting up a gems, jewellery, lifestyle and luxury goods park at Ramdaspur, Cuttack. This park will come up over 100 acres with an investment of Rs 636 crore.
The chief secretary-led panel also cleared a Welspun proposal to set up food processing, warehouse and electrical equipment park on 175 acres in Bhadrak district investing Rs 300 crore.
JSL’s proposal to the Odisha government says it will set up 71 small and medium manufacturing and process industries in the park in sectors like auto manufacturing, kitchenware, light engineering, pipes and tubes and service center. It will also invite investment for 100 additional units from its base of industrial consumers who could use the park to roll out processed products in the market after substantially lowering their logistics cost.
The land requirement for the project is 300 acres while the company has estimated the park’s total direct and indirect job potential at 4,800. The park will be in the vicinity of its existing 1 million tonne stainless steel plant in Kalinganagar.
“The basic idea of the park is to give a boost to manufacturing in the state. At the downstream park we will invite various manufacturers that will take the raw material from us at cheap rates, get land, water and electricity, set up their processing units and start manufacturing competitive products,” Abhyuday Jindal, vice chairman, Jindal Stainless Group, told FC.
He said that company’s earlier planned investment to double the capacity at its Odisha stainless steel plant to 2 million tonnes would also follow soon after stabilising existing operations and a ramp up in capacity utilisation.
[/vc_column_text][/vc_column][/vc_row]
