Department of Steel & Mines

Investing in Steel

Orissa Steel is an emerging sector that will supplement the industrial sphere of Orissa. The developing industries producing steel will dominate the economy of the state. The presence of raw materials in abundance in the region has resulted in attracting the big investors to the region.

In the year 2004, the Government of Orissa had received 40 proposals for establishing steel plants in Orissa. The large scale steel enterprises have opted to invest in the state of Orissa. The state mines about 58 percent of iron ore which is an important raw material for making steel.

Orissa has deposits of the other raw materials required for the production of steel in substantial quantities. The state also has a ready market for the steel products. Labor and electricity in the state are cheap which account for a low cost of production. The infrastructure of the state is also well developed that facilitates the industrial sector. These factors have lured the reputed steel companies of the country to invest in the state.

The industries have proposed a 75 million tonne installed capacity which would include an investment of 198,149 crore of the Indian currency. The industrial sector of Orissa also hopes to gain from foreign investments in the region. The government will also benefit from the investment into the steel sector earning a heavy revenue every year. The state exchequer is also estimated to earn 250 crores per annum from the steel industries in Orissa.