INDUSTRIALIST CHANDRA Prakash Agarwal has decided to establish a steel plant by investing Rs 350 crore at GIDA. After a long wait, it is the first grand success for Gorakhpur Industrial Development Authority. (GIDA) Chief minister Mulayam Singh Yadav would lay the foundation stone of this industry on November 14. It is expected around 1500 people would get jobs through the industry.
Industrialist CP Agrawal has virtually agreed to establish its steel plant at GIDA and it is first investment in private sector on large scale in this region. In fact, the state government has provided various concessions to Agrawal to motivate him to establish this industry in this area.
At GIDA, the government provided 117-acre land to Agrawal on subsidised rate. Besides, the industry would enjoy exemption from sales tax for 15 years.
Talking to Hindustan Times, Agrawal said the plant would start functioning in next 18 month. He intends to have his own captive power plant for uninterrupted power supply to the plant to reduce the dependence on the power corporation for power supply.
He claimed that captive power plant would be cheap in comparison to the purchasing electricity from other sources.
Agrawal said PMT iron rods would be produce in the plant. He would convert the ore idols into spunch iron, from where the irons would go to rolling mills and PMT rod would be made.
Agrawal said that iron and coal would be procured from Orrissa and Jharkhand respectively. Around 1.5 lakh tonne iron rods would be produced every year in this plant.
Earlier, Agrawal had set up two steel plants in Gandhi Nagar district of Gujarat worth Rs 325 crore. In Gorakhpur, investment of about Rs 225 crore will be made in the first round while in second round Rs 125 crore will be invested.