Ludhiana, August 27th
Tata Steel Limited (TSL), one of the leading global steel companies, has arrived in Ludhiana district to set up a new 0.75 MTPA electric furnace-based steelmaking shop (EAF) with rebar mill, the government said. The company handed over the land allotment papers by Chief Minister Bhagwant Mann at a special event in Chandigarh on Friday.
The company was granted 115 hectares of land by Punjab Small Industries and Export Corporation Limited (PSIEC) on July 14 for a fee of Rs 162.25 crore, officials said.
The development is significant as it is the first major investment that Punjab has secured since the formation of the current Aam Aadmi Party (AAP)-led government in the state in March.
Sharing details, Managing Director of PSIEC, Kumar Amit, who is also Special Principal Secretary to Chief Minister Bhagwant Mann. Amit told The Tribune on Saturday that the new factory will be built in a new industrial area in Kadiana Khurd which is being developed adjacent to the high-tech cycle valley which is spread over 383 hectares here.
While Rs 24,33,73,350 makes up 15 percent of the total land price, in addition to Rs 16,22,48,900 equivalent to 10 percent of the total offering price (work money) has been deposited in addition to 2 percent of cancer cessation of Rs 3,24,49,780 subject to additional fee, the remaining 75 percent of the total plot price will be paid in one lump sum within 60 days from the date of the interest-free allotment letter or in five annual installments equivalent to normal interest at a rate of 9.5 percent per annum.
PSIEC Chief Technical Consultant, Joginder Singh Bhatia, said the 600 meter gap between the high-tech cycle valley and the Kadiana Khurd industrial area will be connected by extending the four-lane road which has been developed to provide connectivity to the cycle valley from the Chandigarh-Ludhiana national highway. “The land needed for this purpose has been acquired,” he said.
Bhatia revealed that the internal development work will be carried out by TSL while PSIEC will facilitate the company to get the electricity connection from the upcoming 220 KV network station in cycle valley.
TSL Global CEO and Managing Director, TV Narendran, who was handed land allotment papers by CM at a special event in Chandigarh on Friday, revealed that a capital expenditure of Rs 2,600 crore will be made in the first phase of the project. , which will provide direct employment to 500 people and indirect jobs to 2,000 people.