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Odisha government expects ₹10,000 crore investment over 5-10 years in the stainless park being developed by Jindal Stainless on 300 acres for the downstream industry.
Jindal Stainless Ltd (JSL) is developing the industrial park as a natural extension of JSL’s Jajpur manufacturing facility and it will be strategically connected with prominent highways and Paradip port for timely supply of raw materials and dispatch of finished goods.
Hemant Sharma, Principal Secretary, Government of Odisha said the project, which is almost ready for marketing, should generate employment for at least 10,000 people with 75-80 MSMEs setting up their factory.
In the next 2-3 years, downstream industry in tubes, pipes and structural manufacturers will set up their units followed by other industries, he added.
“We are expecting 2-5 lakh tonnes of 20 lakh tonnes of stainless steel manufactured to be converted into value added products within the State,” he said.
Final approvals
Abhyudaya Jindal, Managing Director, JSL, said the company is waiting for some final approvals for putting up roads, water and electricity connection in the industrial park before approaching the MSMEs.
By setting their units close to source of stainless raw material, downstream MSMEs will add at least 7.5 per cent to their EBITDA as transportation is a major cost for value added product makers, he said.
The industrial park is expected to be completed in the next two years with JSL making the investment and supported by the Odisha government, he added.
On aluminium emerging as a major competition to stainless steel in railway projects, Jindal said the former is definitely suited for high-speed trains running above 180-200 km an hour and definitely the current condition of tracks are not suited to cater such high-speed trains.
Moreover, he said stainless steel scores much higher on the environment front as aluminium manufacturing causes more pollution.
Utility lifecycle
Considering lifecycle of utility, stainless steel will be much cheaper compared with aluminium, he said.
The Odisha government has also announced special subsidy scheme to attract investment in the stainless steel industrial park including subsidy of 20 per cent on capital investment, power tariff subsidy of ₹2/unit and 100 per cent exemption on electricity duty and reimbursement of entire contribution to Employee State Insurance and Employee Provident Fund up to five years.
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