BELGAUM: Vishwanath Sugars Limited, owned by horticulture minister Umesh Katti, will set up a steel plant with a capacity of 10 lakh tonnes, adjacent to the sugar factory at Bellad Bagewadi of Hukkeri taluk in Belgaum district.
The state high power committee, chaired by CM B S Yeddyurappa has already approved the project and an MoU between state government and factory management will be made on Thursday, during the Global Investors Meet.
Addressing a press conference here on Monday evening, Katti said the plant will functional from March 2013. The total cost of the project is Rs 1,500 crore, which will provide direct employment to nearly 3,000 people and help around 50,000 families directly and indirectly.
Katti also said the government had sanctioned 315 acres land for the project at Bellad Bagewadi and the land acquisition process was under progress. Vishwanath Sugars Ltd., will power the steel plant by 40 MW of power it is already co-generating, while its water requirements of the plant will be met by Dhupadal back water project. Iron ore for the project will be availed from Bellary region, for which an application has been filed for land procurement for mining, said Katti. The construction of the plant will commence in two months once the documentary procedures are completed, he added.
The project will be done in two phases -- Vishwanath Sugars Ltd., will invest Rs 200 crore in the project, and Rs 200 crore collected as share capital and Rs 300 crore taken as bank loan. The shares were opened to the market recently, he said.
Responding to the pollution-related questions, Katti said: "We will take all appropriate measures to tackle it through advanced technology."
Katti said the project will play a key role in catering to the steel demand of the country, as the present requirement for steel in the country is 130-150 lakh tonnes.
Chairman of the project Nikhil Katti was present.