Union steel minister Dharmendra Pradhan is set to inaugurate an integrated steel hub that includes Odisha, Jharkhand, Chhattisgarh, West Bengal, and Northern Andhra Pradesh, with the aim of attracting nearly $70 billion of investment in the steel sector and stimulating economic growth across East India. /p>
Union steel minister Dharmendra Pradhan is set to inaugurate an integrated steel hub that includes Odisha, Jharkhand, Chhattisgarh, West Bengal, and Northern Andhra Pradesh, with the aim of attracting nearly $70 billion of investment in the steel sector and stimulating economic growth across East India.
Government estimates suggest that additional capacity in the steel hub would involve capital investment of over $70 billion and result in an incremental Gross State Domestic Product of over $35 billion through steel alone, in addition to creating more than 2.5 million jobs across the region's steel value chain, an official statement from the steel ministry said.
The eastern states are rich in natural resources and hold nearly 80 percent of the country's iron ore, most domestic coking coal reserves, and a significant portion of chromite, bauxite, and dolomite reserves together. According to projections, the eastern belt has the potential to add more than 75 percent of the incremental steel capacity of the country envisaged by the National Steel Policy.
The region alone is able to contribute more than 200 million tonnes, out of the 300 million tons of steel capacity by 2030-31. The steel ministry feels the steel hub that will act as a catalyst in the eastern region's transformation following the government's announced investment is Rs 100 lakh crore infrastructure over the next five years.
Different steps have already been taken by the ministry to make this hub a reality, such as framing a policy facilitating the creation and upgrading of steel clusters with Kalinganagar and Bokaro as pilot locations for steel clusters around integrated steel plants. Task Forces and Working Groups were also established, with the support of the respective state governments.
To promote capacity addition through the greenfield path, a system policy is being developed to resolve the challenges faced by land acquisition, the connection of raw materials and timely clearances. Also listed are vital logistics and infrastructure projects for an expedition through the 12 major steel zones identified in the area (Kalinganagar, Angul, Rourkela, Jharsuguda, Nagarnar, Bhilai, Raipur, Jamshedpur, Bokaro, Durgapur, Kolkata, Vizag).