ARSS to set up steel plant at an investment of Rs 12,000 Cr in Orissa

Bhubaneswar ARSS Ltd, a infrastructure company, plans to set up a three million tonne steel plant near Boinda,near Angul in orissa at an estimated cost of Rs. 12,000 crore.

The project, to come up under the banner of ARSS Steel and Power Ltd, will use the coal gasification and DRI route to produce steel.

Using coal gasification technology, the company will produce gas based DRI which will then be fed into electric arc furnaces to make steel.

The company requires 1200 to 1800 acres of land at the identified location for the project.

The company has recently submitted a proposal in this regard to the state government and this is being vetted by the Industrial Promotion and Investment Corporation of Orissa (Ipicol). The company hopes to sign a MoU with the government for the project soon.

The company intends to fund the project on a debt equity ratio of 80: 20. Once the MoU is signed, steps will be initiated to tie up the funds.