Steel Authority of India (SAIL) is expected to begin work soon on its Rs350bn (US$6.3bn) steel, fertiliser and power complex at Sindri in Jharkhand state.
The steel plant is to have an annual capacity of 5.6Mt and the complex will also hose a 1.5mt/y urea fertilizer plant and a 1000MW power station located at the presently closed Fertiliser Corporation of India complex, according to Steel Ministry sources.
Rs 260bn ($4.68bn) would be spent on the steel mill, about Rs 4.5bn ($81M) on the urea unit and Rs85.5bn ($1.54bn) on the power project.
SAIL has already formed a special purpose vehicle - SAIL Sindri Projects Ltd (SSPL) in which SAIL holds an 89% share with the remaining 11% held by the Fertiliser Corporation of India Ltd.
5800 acres of land have been allocated of which about 4500 acres is free of any encumbrance related to the local population.
The project, which is likely to be completed within four years after construction begins, is likely to provide direct and indirect employment to about 20000 people, say the Ministry of Steel.
Earlier, the Board of Industrial and Financial Restructuring (BIFR) had approved the revival proposal of the closed Sindri fertiliser factory.
The fertiliser factory was referred to BIFR after it was declared a 'sick unit' in 1992 along with four other units of Fertiliser Corporation of India.
The government last year cleared SAIL's proposal to revive the Sindri unit.