Industry growth plan brings cheer

ROURKELA:The industrial economy is in a state of confusion amid contrasting developments in the mineral-rich Sundargarh district. If closure of a host of loan defaulting manufacturing units in MSME segment portrays a gloomy picture, expansion proposals of a couple of industries have come as a ray of hope.

Bank sources said about two dozens manufacturing units have either been closed or their property confiscated by various banks. The SBI alone has confiscated about eight industrial units, including four Induction Furnace (IF) plants, to auction them.

Former president of Odisha Sponge Iron Manufacturers’ Association Gouri Shankar Agarwal said private sector iron and steel industries in Sundargarh, after having faced the worst recession from 2010 to 2015, are slightly looking up. About 40 of the 45 sponge iron plants in the district are operating and since January 2017, capacity utilisation of these plants has risen from 30-40 per cent to more than 70 per cent.
Agarwal said the situation continues to remain worse for the remaining about 22 IF plants in the district due to high power tariff. Sponge irons produced by them are consumed by IF plants in Chhattisgarh as local IF plants are in miserable condition, he added.

Agarwal said the industrial dynamics of the district is different as majority of promoters of private iron and steel industries have not taken huge bank loans. The industries facing trouble should be given breathing space to make turnaround with long repayment system, he said.

Despite the gloomy scenario, Roongta Mines Ltd is going ahead with expansion of Kamanda Steel Plant in Koida block at a cost of `1,518.15 crore, while Rexon Strips Ltd, a sponge iron plant near here, is also mulling expansion. Rajgangpur-based cement manufacturer OCL India Ltd has also proposed to expand its cement manufacturing capacity at a cost of `1,874 crore.
Regional Manager of SBI BB Das said the industrial scenario in the district has slightly improved, adding that he is optimistic that the economic slowdown would give way to growth.