Development at Kalinganagar Industrial Complex has been reasonably steady though fraught with several difficulties. In spite of the land being acquired in 1992, initially only a part of it could actually be transferred for industrial purposes. One reason for this was the downward trend noticed in international steel markets at that time. The other may be traced in Orissa’s long dilemma with industrialisation, a fact that has been used by several specific groups for their own interest and to the detriment of the State.

However, with the State Government vying to take the region out of poverty by setting up industries responsibly, thereby increasing employment potential, the vote has been in favour of the new vision of development. Also, with the steel industry turnaround the proposed steel projects at Kalinganagar picked up momentum.

The Orissa Rehabilitation and Resettlement Policy was adopted in May 2006, to attend to the concerns of people having to relocate as a result of the Industrial Complex. As per the policy the project types identified are Industrial, Mining, Irrigation, National Parks and Sanctuaries, Urban and Linear Projects and others. The payment for the land acquired was disbursed during 1992-95. In addition to the land compensation as per the Land Acquisition Act, the house and other structure assessments, an exgratia amount of Rs. 15,000 per acre was also handed over. Subsequently in May’06, in response to the demand of landowners the exgratia amount was increased to Rs. 50,000 per acre.

To read the details pertaining to the Orissa R&R Policy.

There are 12 manufacturing units at different stages of commissioning/operation in Kalinganagar. Nilachal Ispat Nigam Ltd. and MESCO plants have started production and the facilities for Jindal Steel and Visa Steel are being set up. Nilachal Ispat Nigam Limited (NINL) is the only public sector steel unit operating at the Kalinganagar Industrial Complex. Tata Steel’s greenfield project at Kalinganagar is being set up in two modules of three million tonnes each and equipment consignments have already started arriving.

The Table below gives the details of some of the steel projects at Kalinganagar Industrial Complex for which MoU-s have been signed .

It may be worth mentioning here that, the much-awaited MoU for the largest steel project in India was signed between the South Korean steel major, Pohang Iron and Steel Company (Posco), and the Orissa government in June 2005. The proposed 12 MTP plant is slated to come up at Paradip.