Ludhiana, January 28
In a major development, Tata Steel Limited (TSL), one of the top global steel companies, has finally begun work to set up a new 0.75 MTPA electric arc furnace (EAF)-based steel making shop with rebar mill in Ludhiana district, the government has confirmed.
Capital expenditure: Rs 2,600 crore in Phase I
Land: 5,56,600 sq yds (115 acres) | Land cost: Rs 162,24,89,000
Allotment price: Rs 2,915 per sq yd | Employment: 2,500
The world’s most geographically diversified steel producers, with operations and commercial presence across the globe, was allotted a 115-acre site by Punjab Small Industries and Export Corporation Limited (PSIEC) on July 14 last at the cost of Rs 162.25 crore, officials have said.
Dawn of a new era
It is dawn of a new era as the project will boost investment promotion in the state. We are committed to promoting industry by ensuring a conducive environment and transparent governance to investors.Rs Bhagwant Mann, CM
The development assumes significance as it was the first major investor that has started ground work in Punjab since the formation of the present Aam Aadmi Party (AAP)-led government in the state in March last.
Confirming the development, Chief Minister Bhagwant Mann told The Tribune on Friday that the company’s chairman, Natarajan Chandrasekaran, and global CEO and managing director TV Narendran shared the information with him during his recent visit to the company’s headquarters in Mumbai.
He said the construction work at the project site had begun on Tuesday and the company had assured to complete it at the earliest to usher in an era of industrial revolution in the state.
“Investments brought during our regime are not only confined to papers and it has been proved again that we mean what we say,” Mann asserted while stating that it was just the beginning and his government would make Punjab the most-preferred destination for investment in the country.
Assuring full support and cooperation to the Tata Group for setting up the plant, the Chief Minister said it was the first-ever investment made by the globally-acclaimed company in the state and second biggest in the country after Jamshedpur.
The new plant will come up at a new industrial park at Kadiana Khurd, developed adjacent to the state-of-the-art hi-tech cycle valley spread over 383 acres in the city.
The TSL had been allotted through e-auction the single plot carved out in the new industrial park spread over 121.45 acres, for which the change of land use (CLU) had been obtained, and layout plan had been approved.
The land was allotted through bidding on a 99-year leasehold basis renewable for another 99 years for the manufacture of steel rebar products.
While Rs 24,33,73,350 being 15 per cent of the total land price, in addition to Rs 16,22,48,900 equivalent to 10 per cent of the total bid price (earnest money) had been already deposited, besides 2 per cent cancer cess amounting to Rs 3,24,49,780 charged extra, the balance 75 per cent of the total plot price will be payable either in lump sum within 60 days from the date of allotment letter without interest or in five equated yearly instalments along with normal interest at the rate of 9.5 per cent per annum.
As per the schedule of the payment, the first annual instalment was payable on July 17, 2023, and the last on July 17, 2027, to clear the entire allotment price.
A 600-meter gap between the hi-tech cycle valley and Kadiana Khurd industrial park was being connected by extending the four-lane road that had been developed to provide connectivity to the cycle valley from the Chandigarh-Ludhiana national highway.
While the internal development works will be undertaken by the TSL, the PSIEC will facilitate the company to get power connection from the 220-kV grid station coming up in the cycle valley.
Besides, the PSIEC will provide canal-based raw water supply to the TSL on its doorstep while the storm water, effluent and sewage treatment plants and the environment clearance will be arranged by the investor at its own cost and level.
TSL global CEO and managing director, TV Narendran, said a capital expenditure of Rs 2,600 crore would be made in the first phase of the project, which would provide direct employment to 500 and indirect employment to 2,000 persons.
He said the shop would produce steel rebar of various sizes, which would be used as a tension device in reinforced concrete to strengthen and aid the concrete under tension.
“The raw material for the steel-making process will be 100 per cent scrap,” Narendran revealed during an interaction.
USD 21.06 billion annual turnover
TSL was one of the world’s most geographically diversified steel producers, with operations and commercial presence across the globe. The group has recorded a consolidated turnover of USD 21.06 billion (Rs 1.57 lakh crore) in the financial year ending March 31, 2021.
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