By Bizodisha Bureau, Bhubaneswar, June 1, 2018: Odisha seems to be still emerging as the investors destination for steel industries.

Steel investors in Russia and China appear to be keen to set up a specialty steel unit within the National Investment and Manufacturing Zone (NIMZ) proposed to develop at Kalinganagar, home to a cluster of steel industries at an investment of Rs five billion, officials said.

Since the proposals from Russian and Chinese investors are still at a nascent stage, the officials did not want disclose the name of the companies.

Kalinganagar, the proposed site of NIMZ offers good scope for steel downstream investments with 825 acres earmarked specially for the industries which can be readily offered to the industries, an official said.

The NIMZ will be carried though through an existing Special Purpose Vehicle (SPV) – Jajpur Cluster Development Ltd. In this JV, the Kalinganagar Industries Association holds 51 per cent equity and the remaining 49 per cent stake is held by Odisha Industrial Infrastructure Development Corporation (Idco).

More than Rs 100 billion is planned to be invested to develop the infrastructure for the zone and the Union government will fund in excess of Rs 40 billion. Idco and the private partners will spend the rest amount. In the first phase proposed to be complted by 2020, there will be an investment of Rs 38 billion, official said.

Implementation of the NIMZ is planned in a three phases running into 15 years. Among the infrastructural linkages, an inland water terminal has been proposed on the southern part of NIMZ near Pankpal village on Brahmani river bank to handle cargoes like coal, iron ore and chromite. A Greenfield airport is also proposed at Kalinganagar.

The NIMZ is envisioned as a combination of production units, public utilities, logistics, environment protection mechanism, residential areas and administrative services.