Tata's Rs21,000-crore steel plant project in Orissa, already delayed by four years due to stiff resistance from locals over the issues of displacement and rehabilitation, is likely start construction work next month

The Ratan Tata-led Tata Steel Ltd's Rs21,000-crore steel plant project in Orissa, already delayed by four years due to stiff resistance from locals over the issues of displacement and rehabilitation, is likely start construction work next month, a senior company official said.

Tata Steel has plans to build a six million tonne steel plant at Kalinganagar Industrial Complex in Jajpur district of Orissa.

"We have received 80% of the required land from the state government and the balance will be received soon. We will start construction work next month," Tata Steel India's chief for corporate affairs and communications, Sanjay Chowdhary, told PTI over the phone.

"The company has already placed orders worth Rs6,373 crore for equipment and civil structures for the project. The first consignment of equipment, Steel Melting Shop (SMS) for the project, has reached Kalinganagar from Germany recently," Mr Chowdhary, said.

"More equipment will arrive in the next three to four days," he said. Over Rs500 crore of equipment will reach the site before the end of this fiscal, he added.

"At least 11 consignments of equipment and machinery worth Rs200 crore for the project have arrived in India," he said.

Tata Steel had signed a memorandum of understanding (MoU) with the Orissa government in November 2004 for setting up the integrated steel plant at Kalinganagar.

"We have already shifted around 807 out of the 1,195 families and we are in talks with the locals to rehabilitate the remaining families," he said.

The steel project ran into rough weather after 14 people were killed in police firing on 2 January 2006, while opposing the construction of the steel plant's boundary wall.