Tata Steel to assess cost overrun for Orissa project
Tata Steel is evaluating the impact of cost overrun on the ongoing six million tonne greenfield steel project at Kalinga Nagar in Odisha's Jajpur district.
Kolkata: Tata Steel is evaluating the impact of cost overrun on the ongoing six million tonne greenfield steel project at Kalinga Nagar in Odisha's Jajpur district.
"We are trying to assess the cost overrun caused due to delays in the project," Tata Steel Kalinganagar project in-charge Anand Sen said.
He said areas which had hit the company included forex impact, taxes and social cost.
"When the project was envisaged the rupee was at 43 to a dollar and now it is at 54-55 versus the dollar," he said.
The original project cost for the proposed six million tonne plant was Rs 35,000 crore.
Though, the company was not able to get raw material security for the project as allotments of mines were yet to come through, Tata Steel is moving ahead with the project in full-swing and expected to begin the three million first phase production by March 2014, Sen said.
Overall project progress would be about 30-35 percent, officials said.
Cyrus Pallonji Mistry, the chairman designate of Tata Sons, recently visited the project site and expressed satisfaction over the progress of work.
Tata Steel had signed MoU with the Odisha government for the project in 2004, but the work was severely affected following a clash in 2006 between the security forces and tribal squatters opposing shifting from the project site that resulted in the death of 14 persons.