Gadchiroli steel hub will blunt Chinese competition with high quality ore: Fadnavis
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Konsari (Gadchiroli): Chief minister
Devendra Fadnavis
on Tuesday, laid the foundation of Maharashtra's first mega integrated steel plant at Konsari in Gadchiroli, which will be built by Lloyds Metals and Energy Limited (LMEL) and is expected to roll out in 30 months and create 20,000 jobs.
The chain of industrial developments will catapult Gadchiroli to Maharashtra's top 10 districts in per capita income within five years. With massive iron ore deposits in Gadchiroli, the emerging steel industry in the once Maoist-wracked district will stand as a competition to China, said Fadnavis. Currently, Gadchiroli is one of the two districts with lowest GDP and per capita income. The govt has also identified land for JSW Group's integrated steel plant in Gadchiroli, which is slated to be the largest in the world.
Talking to TOI on the sidelines of the event, LMEL's managing director B Prabhakaran said China depends on high-grade coal and average quality iron ore. "The ore in China contains around 60% to 67% iron, whereas in Gadchiroli, the average realisation itself is at 67%. This gives a huge advantage to the domestic steel industry. With increasing use of gas instead of coal as fuel, the cost of production is expected to dip compared to the Chinese industry," he said.
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The steel plant at Gadchiroli has its logistical advantages as it can easily cater to southern states. "There is a major gap between steel production and iron ore availability. Gadchiroli has a massive potential for iron ore exploitation and what LMEL has is just the tip of the iceberg. The mines with a 25 MTPA capacity are spread over 300 hectares. As much as 5,000 hectares in the district is expected to have iron ore underground.
The 300 hectare mine itself attracts an investment of Rs 40,000 crore," said Prabhakaran.
LMEL also issued fresh appointment letters to 1,400 persons in its existing unit, which includes a direct reduced iron (DRI) plant, mines, and a pellet-making plant. LMEL currently employs 11,000 people and this would increase to 13,000 in coming months. This is over and above the 20,000 jobs to be created by the integrated steel plant.
It has set aside 10% of the promoters' share to be offered under the employee stock options programme (ESOP), which was announced on January 1. Shares worth Rs 1,400 were offered at a nominal price of Rs 4 each. Any fresh employee is eligible for ESOP after a certain period. So far, 10,600 workers have availed of ESOP, says the company, dubbing this to be a unique model in the sector.
Fadnavis also inaugurated a 4 MTPA pellet plant, a slurry pipeline with a 10 MTPA capacity, and an iron ore grinding unit of 5MPPA at Hedri, 85km off the steel plant site. Majority of the employees are locals. A woman who joined as a housekeeping staff with a Rs 12,000 pay, underwent skill training and earns Rs 55,000 a month.
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