Greenfield projects manufacturing india status

Report: Status & issues with key manufacturing based Greenfield projects in India

© 2010. All right reserved. Property of Vaishnavi Corporate Communication. Edit : Nilesh Kumar (Research & Advisory)

Project State Proposed Capacity

Progress Made/ Likely date of commissioning/ Issues on Land Acquisition, Environment / Stay Order

SAIL – IISCO plant West Bengal 2.50 MTPA June 2011

SAIL – Salem Steel plant

Tamil Nadu 0.12 MTPA Major facilities completed progressively by September 2010 and under stabilization for regular production.

SAIL – Bokaro Steel Jharkhand 4.61 MTPA December 2011

SAIL- Bhilai Steel Chhattisgarh 7.00 MTPA December 12 – March 13

SAIL- Rourkela Steel Orissa 4.20 MTPA December 12 – March 13

SAIL – Durgapur Steel West Bengal 2.20 MTPA December 2012 NMDC – Bastar Steel Plant

Chhattisgarh 3.0 MTPA 90% of the land acquired. Date of completion – 42 months of “Zero date” i.e. receipt of all statutory clearance/approvals and placement of orders for major technological packages.

Tata Steel – Kalinganagar Steel Plant

Orissa 6.0 MTPA Land acquisition problem, partial land acquisition. Capacity likely to be achieved by FY 2014

Tata Steel – Bastar Steel Plant

Chhattisgarh 5.5 MTPA Land acquisition problem. Law suits filed by NMDC and pending in court. Capacity to be achieved by FY 2015

Tata Steel – Seraikela Steel plant

Jharkhand 12.0 MTPA Notification was awaited for private land. State govt asking company to acquire pvt. Land directly. Capacity to be achieved by FY 2016

Essar Steel – Paradeep Steel plant

Orissa 6.0 MTPA Out of 1822 acres, 456 acres of private land has been acquired and 812 acres of private land is under acquisition. Project implemented time – 36 months from the date of LA.

Essar Steel – Bastar Steel plant

Chhattisgarh 3.2 MTPA Applied for 608.33 Ha (Private land – 393.21 Ha & govt. land – 215.15 Ha) Private land passed by the authorities. 36 months from financial closure is the project implemented time.

Essar Steel – Chaibasa Steel plant

Jharkhand 3.0 MTPA Due to resistence from villagers in and around the proposed project site, alternate sites have been identified and are being evaluated. 36 months from financial closure is the project implemented time.

Essar Steel – Bellary Steel plant

Karnataka 6.0 MTPA Land site survey done. Phase 1 of project implemented stage in about 36 months after completion of all preliminary work and development of land.

Status of greenfield projects in steel



Jindal Steel – Angul Orissa 6.0 MTPA Out of 4332 acres 3882 acres of land is in possession. 2 MTPA steel making and 1.5 MTPA plate mill will be commissioned by December 2011

Jindal Steel – Patratu Jharkhand 6.0 MTPA Total land required for 3 MTPA is 1715 acres. Purchased/applied to Govt. with sellers’s consent – 1463 acres. No forest land involved for 3 mtpa. Phase 1 will be completed by 2013.

Jidal Steel – Asanboni Jharkhand 5.0 MTPA Total land required 2895 acres. Purchased – 285 acres. Forest clearance for 89 acres applied and pending. Environmental clearance applied and pending. First phase would be completed by 2015.

Posco – Jagatsinghpur Orissa 12.0 MTPA Total land required 4004 acres. 628 acres of non forest Govt land was leased to the company. Environmental clearance and CRZ clearance for construction of port issued by MoEF. Now set to go.

Arcelor Mittal – Keonjhar Orissa 12.0 MTPA Total land required 7700 acres. Nil in possession. Project implemented stage 2016 (3 MTPA)

Arcelor Mittal – Bokaro Jharkhand 12.0 MTPA Total land required 3000 acres for phase 1 of 12 MTPA. Nil in possession. Project implemented stage – 2015 (3 MTPA)

Arcelor Mittal – Bellary Karnataka 6.0 MTPA Total land required – 3500 acres. Land acquisition process is on. Project implemented stage – 2015 (3 MTPA)

Ispat Industries Jharkhand 2.8 MTPA Will be expanded to 5 MTPA. Phase 1 will be commissioned within 36 months after receieving required supported like land, iron ore, coal etc.

Ispat industries Karnataka 2.8 MTPA Phase 1 will be commissioned within 36 months after receieving required supported like land, iron ore, coal etc.

Monet Ispat – Angul Orissa 1.05 MTPA Total land required 202 acres. 110 acres in possession. NBo forest land. 0.25 MTPA will be commissioned by December 2011

Monet Ispat – Bokaro Jharkhand 1.5 MTPA Total land required 1000 acres. 15 acres purchased in kumhari 8. 1.5 MTPA will be commissioned by December 2013

Electrosteel - Bokaro Jharkhand 2.2 MTPA Purchased nearly 2000 acres of private land. Financial closure achieved. Phase 1 will be completed by end of 2011

Visa Steel- Jajpur Orissa 1.5 MTPA 1200 acres land requested, out of which land allotted 525 acres, possessed 523



acres, balance 675 acres pending in IDCO. Environmental clearance accorded by MoEF. Likely date of completion of current capacity under excecution – SMS – December 2010, CFBC – December 2010 and Rolling Mill – March 2011

Visa Steel – Rajgarh Chhattisgarh 2.5 MTPA Approx 270 acres land is in possession & further 750 acres land acquisition is under progress. Environmental clearance accorded by MoEF. Likely date of completion of current capacity under execution – April 2013.



Name of the Company and location

Issues Steel Investors Action Taken / Status / Comments by MoS

Steel Authority of India Ltd.

(i) Environmental Clearance pending regarding Budhaburu, Singhbhum (W) mining lease since more than 3 years. (ii) Environmental clearance pending regarding Dhoil, Singhbhum (W) mining lease since more than three years. (iii) MoEF be requested to support the proposal of Rowghat Deposit in the Hon’ble Supreme Court in the National interest. (iv) Forest clearance pending egarding South & Central Block in Lease I.

(i) It has been checked from the SAIL office that the Budhaburu Mine is also known as Mclellan Mine. The complete proposal for environmental clearance in respect of Mclellan Mine was received in the Ministry of 17.08.2009 and recommended for environmental clearance by the Expert Appraisal Committee during its meeting held on 23rd – 24th November 2009. As the said mine is located in the West singhbhum district, a severely polluted area and also in the core zone of singhbhum elephant reserve, the environmental clearance is pending as the wildlife issues relating to projects located in such wildlife areas is yet to be resolved. (ii) The complete proposal for environmental clearance in respect of Dhobil Mine was received in the Ministry on 17.08.2009 and recommended for environmental clearance by the Expert Appraisal Committee during its meeting held on 21st – 22nd December 2009. As the said mine is located in the West Singhbhum district, a severely polluted area and also in the core zone of singhbhum elephant reserve, the environmental clearance is pending as the wildlife issues relating to projects located in such wildlife areas is yet to be resolved. (iii) Forest Conservation Division, MoEF to comment. (iv) Forest Conservation Division, MoEF to comment.

Rashtriya Ispat Nigam Ltd.

Environmental clearance of Jaggayyapets Limestone mines.

The project was prescribed Terms of Reference (TORs) by the Ministry on 09.03.2010 for undertaking detailed EIA study. The application for environmental clearance is yet to be receive in the Ministry of Environment and Forests.

Electorsteel Castings Limited

Forest Clearance for 55.79 Ha of Forest land in the Kodolibad Iron Ore

Forest Conservation Division, MoEF to comment.

Environment & forest Issues in steel Greenfield projects



Mine. Jindal Steel And Power Limited Jharkhand Project

Environment & Forest clearance is awaited for Jeraldaburu iron ore.

It being a green field project to be located in the core zone of the Singhbum Elelephant Reserve, it was made clear at the stage of TOR itself to obtain forestry clearance and wildlife clearance before submitting application for environmental clearance. As the project proponent have not submitted the requisite documents, the proposal was incomplete and the project file was closed on 05.04.2010.



M/s Marix Fertilizers and Chemicals Limited (MCFL), has proposed for setting up of a

Greenfield Ammonia/Urea Complex of 1 Mn MTPA in Burdwan District, West Bengal.

land has been identified by the state Government.

Gulbarga is hovering to become a cement manufacturing hub. Gulbarga has about one

seventh of the country’s limestone reserves. Clearances have been given to all the plan

developers, and these cement plants are expected to be complete within the next three-

four years. Projects by Zuari, Vicat Sagar, Shree Cement, Reliance, India Cements,

Chettinad are to come up in this region. [Reports: Monday, May 10, 2010]

Vicat Sagar is likely to set up a dry-process greenfield cement plant in Karnataka. The

cement plant capacity will be nearly 5.5 million tonne per annum based on two clinker

production lines, each with a daily capacity of 6,000 tonne. The first production line of

cement is expected to commence in 2012. [Reports: Monday, July 12, 2010]

Hindalco is setting up a Greenfield Aluminium Smelter Project in Madhya Pradesh

(Mahan Project) with a capacity of 359,000 TPA of aluminium supported by 900 MW

captive power plant at a cost (including financing cost) of Rs. 10,500 crore. Financial

closure achieved.

Chemplast Sanmar is a major manufacturer of PVC resins, chlorochemicals and piping

systems. It commissioned a greenfield PVC project at Cuddalore , Tamil Nadu,in

September 2009 with an annual capacity of 170,000 tons.

Ceat Tyres has just commenced trial production at a new Rs 650-crore plant at Halol (will

manufacture radials), Gujarat. This is a greenfield project for passenger cars and truck and

bus radials with a capacity of 150 tonnes per day (tpd). Ceat is also establishing a new

plant at Ambernath, outside Mumbai (for which land has already been granted).

Siemens AG plans to make India’s its global hub for manufacturing key steel plant

equipment. Siemens VAI Metal Technologies — the steel technology arm of the

multinational — has been designated to manufacture five products — ladle furnace,

vacuum degasser, billet caster, small and medium capacity sinter plant and blast furnace

— for global clientele. Three more products —electric arc furnace, converter car and wet

de-duster — are also in the pipeline for manufacture in India. Siemens VAI plans to set up

its second unit in the country to suit the new strategy. The company is scouting for land in

Bhilai, Visakhapatnam, Nashik and Kharagpur to locate the second plant.

The RPG Group plans to set up a carbon black project in Tamil Nadu with a proposed

annual production of 1.5 lakh tones. In-principle allotment of 60 acres at the SIPCOT

Industrial park in Thervoy Kandigai in Tamil Nadu near the Ennore port. Have applied for

environmental clearances.

Galaxy Surfactants (Galaxy) is setting up a Greenfield surfactant unit, a new

manufacturing facility at Gujarat and debottlenecking of units at Taloja and Tarapur.

Status Other Manufacturing Greenfield projects Q4 2009 – Q4 2010



Overall capacities are expected to expand by 2.2 times over a two-year span, with the first

of the new projects set to go on-stream in August 2011. Galaxy Surfactants makes 66

different specialty chemicals that fall under the broad categories of organic surface active

agents (OSAA), fatty alkanolamides and fatty acid esters (FAs) and other products

catering mainly to the home and personal care industry.

NATRIP, a flagship project of Department of Heavy Industry (DHI), is for up-gradation of

three existing automotive testing and R&D centers viz. (VRDE) at Ahmednagar,

Automotive Research Association of India (ARAI) at Pune and International Centre for

Automotive Technology (ICAT) at Manesar and for setting up of four greenfield centers at

Chennai, Indore, Silchar and Rae Bareilly for automotive testing, homologation and R&D.

Delphi Automotive Systems has an upcoming greenfield facility in Chennai, which is

banking on the pick-up in small car segment. [Reports: March 15, 2010]

VRL Logistics, is entering the cement manufacturing business with name as VRL Cements

has proposed to set up a two million tonne per annum greenfield cement plant in north

Karnataka with an investment of Rs 954 crore. The company has submitted a proposal to

the Karnataka government which is developing a cement zone in Gulbarga and Bagalkot.

VRL Cements has sought 300 acres of land from the state government in Badami taluk of

Bagalkot district which has abundant reserves of limestone. [Reports: April 05, 2010]

Monnet Ispat & Energy (MIEL) also has investment plans of Rs 2,400 crore to set up

cement plants in Chhattisgarh and Gujarat. Work on these plants will begin in the

October-December quarter under a new division of the company called Monnet Cement.

These cement projects are expected to be operational in three years time. MIEL will

initially set up a three million tonne (mt) cement plant in Chhattisgarh, close to its

existing sponge iron and steel melting facilities in Raipur, with a total investment of Rs

1,400 crore. MIEL also plans to set up a 2 mt cement plant in Gujarat with an investment

of about Rs 1,000 crore.

A 50:50 manufacturing joint venture (JV) company in Bangalore between Hindustan

Aeronautics (HAL) and British engines major Rolls-Royce is planning a greenfield facility

which will be built on land to be leased from one of HAL’s properties. Production will

begin in 2012. The collaboration means exposure to civil aviation and a launch-pad for

engine manufacturing in the future for HAL. [Reports: April 12, 2010]

Kiswok Industries, a brake drum manufacturer and foundry operator, plans to invest Rs

120 crore in a greenfield plant in West Bengal. The new facility be fully operational by

March 2012. The company has so far invested Rs 70 crore at its existing foundry. [Reports:

March 15, 2010]

Kirloskar Oil Engines (KOEL) has shifted its smaller engines production to a greenfield

plant at Kagal near Kolhapur, built at an investment of Rs 500 crore. [Reports: March 15,

2010]

JK Tyre & Industries plans to invest Rs 800 crore in Karnataka to set up a greenfield plant

to manufacture truck, bus and car radials. The Karnataka government has assured special

incentives to the company for their forthcoming investments. [Reports: January 25, 2010]



JK Lakshmi Cement plans to set up a greenfield plant in Gujarat worth Rs 1,000 crore, over

the next three to four years. The proposed two million tonne (mt) unit will boost its

existing operations, which includes a cement plant in Sirohi (Rajasthan), besides a

grinding unit near Ahmedabad, with total annual cement manufacturing capacity of 4.7

mt. The company is awaiting a mining lease for limestone in the region for the Gujarat

project. The company is also setting up a second 0.6 mt cement grinding unit in Haryana

and a 2.7 mt cement unit in Chhattisgarh by October 2012. [Reports: March 01, 2010 ]

Somany Ceramics Ltd is setting up a greenfield plant for wall and floor tiles near

Ahmedabad. The company has bought an 18 acre land for Rs 3 crore adjacent to its

existing plant in Kadi in Gujarat. [Reports: December 07, 2009]

ACC’s new cement plant in Thondebhavi, Karnataka is set up as a greenfield project in the

Thondebhavi village, in Gauribidanur tehsil of Chikballapur district, Karnataka. Installed

at a cost of about Rs 350 crore, this cement grinding plant has a capacity of 1.6 million

tonne per annum and will produce fly-ash based Portland Pozzolana Cement. The plant

will have its own railway siding. Clinker is received by rail from ACC’s modern cement

plants at Wadi in Gulbarga district. [Reports: December 21, 2009 ]

JSW Group has put its proposed R4,200-crore greenfield aluminum project on hold. JSW

Aluminum was incorporated on July 8, 2005, as a special purpose vehicle to set up 1.5 mt

alumina plant in Vizianagaram district (Andhra Pradesh). The plant was expected to

become operation in April 2010. [Reports: May 21, 2011]

Piramal Glass Ltd , which is a leading manufacturer of flacon age (glass containers) for

cosmetics & perfumery, specialty foods & beverages (F&B) and pharmaceuticals industry,

is planning to invest Rs 260 crore over the next two years, including Rs 100 crore for

expansion of capacities at its Jambusar plant in Gujarat. The company has planned to add

160 tones per day capacity at its Jambusar plant, through a Greenfield project, which is

likely to be completed by FY 12.

Tyre manufacturer Apollo is setting a greenfield project in Tamil Nadu. MoU signed with

state government. The project would come up on 135 acre land at SIPCOT Industrial

Centre at Oragadam near Chennai.

ITC Limited will invest up to Rs 3,000 crore to set up a new paper manufacturing unit in

Andhra Pradesh as part of plans to double capacity over the next five years. The new 2.5-3

lakh tonnes per annum unit will come up in Khammam district of Andhra Pradesh and

the company plans to acquire 1,000 acres for this purpose. [January 30, 2011]



ANNEXURE: Statistics

Details of proposals rejected environmental clearance during 2008-2010 and during the

current year

STATE/UT

NON-COAL MINING

THERMAL

POWER

HYDRO

POWER

& IRRIGATION

INFRA-

STRUCTURE

Chhattisgarh 01 - - -

Delhi - - - 02

Goa 02 - - -

Gujarat 03 - - -

Jharkhand 01 - - 01

Karnataka 02 01 - -

Kerala - - - 01

Maharashtra 01 - - 01

Punjab - - - 01

Rajasthan 01 - - 01

Uttar

Pradesh

- - - 01

TOTAL 11 01 0 08

A total of 259 projects are pending for environmental clearance and 723 proposals are

pending for the diversion of forestland as on 31.10.2010.



Sector-wise break-up of projects of various sectors received from various States/UT pending forestry and environmental Clearances:

PROPSALS PENDING ENVIRONMENTAL CLEARANCE

STATE/UT

MINING

POWER

IRRIGA TION

INDUSTRY

Andhra Pradesh 3 4 -- 26

Arunachal Pradesh - 2 -- 1

Assam 2 -- 6

Bihar - -- 2

Chhattisgarh 8 4 - 4

Daman & Diu - - - 1

Delhi - 2 - -

Goa 1 - - -

Gujarat 5 2 - 19

Haryana - -- - -

Himachal Pradesh 1 1 - -

Jammu & Kashmir - - - 1

Jharkhand 16 6 - 8

Karnataka 4 3 - 4

Kerala -- - - -

Madhya Pradesh 7 - - -

Maharashtra 9 2 - 9

Meghalaya -- -

Orissa 22 2 - 5

Punjab 2 - 3

Rajasthan 17 4 1 2

Sikkim - 1 - -

Tamil Nadu 1 6 - 4

Tripura -- - - -



Uttarakhand 10 - 1

Uttar Pradesh -- 4 - 2

West Bengal -- - 7

Others (Offshore) - - - 2

TOTAL 106 45 1 107



PROPSALS PENDING FORESTRY CLEARANCE

STATE/UT MINING POWER IRRIGA TION OTHERS

Andaman & Nicobar Island 1 0 0 1

Andhra Pradesh 19 0 2 7

Arunachal Pradesh 0 2 0 0

Assam 0 0 0 0

Bihar 0 0 0 0

Chandigarh 0 0 0 0

Chhattishgarh 16 0 3 2

Dadar & Nagar Haveli 0 0 0 2

Daman & Diu 0 0 0 1

Delhi 0 0 0 2

Goa 2 0 1 0

Gujarat 1 1 2 5

Haryana 0 1 2 160

Himachal Pradesh 5 12 2 77

Jammu & Kashmir 0 0 0 0

Jharkhand 24 0 3 1

Karnataka 9 4 1 7

Kerala 0 0 0 2

Lakshdeep 0 0 0 0

Madhya Pradesh 29 0 5 6

Maharashtra 8 1 7 9

Manipur 0 2 0 0

Meghalaya 0 0 0 0

Mizoram 0 0 0 1

Nagaland 0 0 0 0

Orissa 10 0 0 2

Pondichery 0 0 0 0

Punjab 0 4 0 193

Rajasthan 3 0 4 4

Sikkim 0 0 0 0

Tamil Nadu 2 0 0 5

Tripura 0 0 0 0

Uttar Pradesh 0 1 0 10

Uttaranchal 3 6 0 30

West Bengal 1 0 0 0

TOTAL 130 34 32 527



STATE/UT-WISE STATUS OF PROJECT PROPSALS GRANTED EC AND FC DURING THE LAST 3 YEARS AND DURING THE CURRENT YEAR

PROPOSALS GRANTED ENVIRONMENTAL CLEARANCE

STATE/UT 2007 2008 2009 2010-

A& N Islands 1 - - -


Arunachal Pradesh 1 1 - 2

Assam 27 13 15 6

Bihar 4 6 7 5

Chhattisgarh 7 34 28 6

Daman & Diu - 4 5 -

Delhi 2 -- -- --

Goa -- 4 7 --

Gujarat 128 234 145 38

Haryana 12 16 3 --

Jharkhand 10 10 16 17

Jammu & Kashmir 2 1 3 -

Himachal Pradesh - 3 7 5

Karnataka 14 26 25 14

Kerala 1 3 2 -


Maharashtra 39 76 79 18

Manipur - 1 - -

Meghalaya - 2 4 3

Mizoram - - 1 -

Orissa 24 39 24 15

Pondicherry 2 -- -- --

Punjab 8 9 7 3

Rajasthan 33 28 19 6

Sikkim - 1 1 1



PROPOSALS GRANTED FORESTRY CLEARANCE

STATE/UT 2007 2008 2009 2010

Andaman & Nicobar Island 0 6 2 0


Arunachal Pradesh 1 17 12 41

Assam 5 26 17 5

Bihar 0 21 10 29

Chandigarh 0 1 0 2

Chhattishgarh 4 46 27 32

Dadar & Nagar Haveli 0 24 4 6

Daman & Diu 0 1 0 0

Delhi 0 6 0 1

Goa 0 9 13 7

Gujarat 2 91 143 128

Haryana 52 375 198 292

Himachal Pradesh 36 126 88 161

Jammu & Kashmir 0 0 0 0

Jharkhand 6 29 30 82

Karnataka 11 39 36 26

Kerala 2 6 11 4

Lakshdeep 0 0 0 0


Maharashtra 6 66 65 68

Manipur 1 2 0 3

Tamil Nadu 38 57 20 9

Tripura 5 2 1 --

Uttarakhand 2 24 9 1


West Bengal 21 38 36 16

Others (Offshore) 8 6 8 1



Meghalaya 2 8 3 2

Mizoram 0 3 0 0

Nagaland 0 0 0 0

Orissa 6 41 25 18

Pondichery 0 0 0 0

Punjab 25 253 181 265

Rajasthan 4 82 62 32

Sikkim 6 49 24 6

Tamil Nadu 1 20 23 20

Tripura 3 48 17 2


Uttaranchal 21 218 436 388

West Bengal 1 1 8 16

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Greenfield projects manufacturing india status

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