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Rourkela Steel Plant
Rourkela Steel Plant (RSP) is a public sector, integrated steel plant in Rourkela, Odisha state, India. It was established on 3 February 1959 with the help of West German industrial corporations on approximately 7,700 hectares (19,000 acres) of land acquired from tribal inhabitants. The plant is operated by the Steel Authority of India (SAIL), a Central PSU.
After the 2010-12 expansion, RSP currently has a production capacity of 4.5 MTPA (Million Tonne per Annum) of Hot Metal, 4.2 MTPA of Crude Steel and 3.9 MTPA of Saleable Steel, employs 19,134 employees as of February 2011 and produces a mix of products. The RSP reported an annual revenue of ₹26,830.57 crores (US$ 3.54 billion) and profit before taxes (PBT) of ₹6347.65 crores (US$ 837.53 million) for the financial year 2021–22.
The Rourkela Steel Plant Project was first announced by Jawaharlal Nehru in 1953. The steel plant at Rourkela was proposed in India's Second Five-Year Plan, drafted in 1954–55. RSP was projected as one of Nehru's temples to India's industrial modernity; aimed at rapid industrialization, removal of economic stagnation, generating employment and socioeconomic progress. The site of the plant at Rourkela was chosen for various reasons. One of the arguments is that in the 1950s, the government of Orissa was determined to attract investments for the establishment of industrial projects in the northern district of Sundargarh, which was considered to be one of the most backward regions with a mostly tribal population that desperately needed development. The decision was made for Rourkela due to technical and logistical reasons — raw materials such as iron ore, coal and limestone were locally available; water could be supplied from the Brahmani river; the Calcutta-Bombay railway line passed through Rourkela; and electricity could be supplied from the Hirakud dam.
In the 1950s to 1960s, western governments like West Germany were keen on offering development aid to India, fearing that India might join the Soviet Union at some point and that this might encourage other third world countries to do the same, given Nehru's socialist rhetoric and his contacts with the Soviet Union. India also had strategic importance being a neighbor to communist China. In the early 1950s, West German businessmen and bureaucrats at the Ministry of Economics began emphasizing the potential in India's markets. Between 1950 and 1960 alone, India received more than 14% of all West German development aid.
Recognizing that foreign investment and technology was important for industrialization, the Indian government approached and negotiated with different companies such as the Krupp Company and Demag for the construction of a steel plant in the 1950s. In 1953, a deal was signed between the government of India and a Consortium of West German companies (Krupp, Demag, Gutehoffnungshütte (GHH), Mannesmann, Allgemeine Electricitals Gesellschaft (AEG) and Siemens) for the establishment of a Steel Plant in the Indian state of Orissa.
The Hindustan Steel Limited (HSL) was established as a public sector undertaking on 19 January 1954 to manage a steel plant to be set up in Rourkela. In March 1954, Krupp and Demag formed a separate company called the Indien Gemeinschaft Krupp Demag (IGKD), headquartered at Duisburg. The IGKD's purpose was to provide consultancy for the design and procurement of all plant equipment, to design the layout, to supervise erection and to commission India's first fully integrated steel plant. On 9 June 1954, the Board of Directors of HSL met in Delhi to give the go-ahead signal to IGKD for the construction of a steel plant in Rourkela. In 1956, an agreement was signed between the Indian government and Krupp's representatives, agreeing that Krupp would sell and ship all material required for the establishment of the Rourkela Steel Plant, with a production capacity of 1 MTPA of raw steel, and that Krupp would advise the HSL on the construction of the RSP. In exchange for the work and counsel, the Indian government would pay US$4.6 million to the companies.
Even before the initial agreement for a steel plant in Rourkela had been signed, there was significant opposition to it from locals. In 1953, a Steel Plant Site People's Federation (SPSPF) had been formed to advocate for the villagers who opposed the plant. The first notifications of land acquisition for the steel plant and a new township were issued in 1954. The terms of land acquisition included monetary compensation for the land lost; the promise of a job in the regular RSP workforce for one able-bodied member from each household; provision of housing plots with subsidies in 3 resettlement colonies (Jalda, Jhirpani and later Bondamunda) in the periphery of the new township; and in addition to it, unbroken land for cultivation with an allowance for breaking it. To prepare Rourkela for an industrial complex, more than 30 villages were displaced and about 13,000-16,000 of their mostly Adivasi inhabitants forcibly resettled to acquire about 8,001 hectares (19,772 acres) of land in 1955. Later, parts of Bondamunda village were acquired for a marshalling yard of the steel plant. However, the compensations are said to have been inadequate, some displaced persons received nothing at all; the jobs promised were given years later, some were never given, and many had to survive on meager incomes from irregular casual labour.
The construction of RSP began in 1956. The Germans realized that the task of building a steel plant in an underdeveloped area turned out to be more difficult than anticipated, due to insufficient logistics and slow transportation. In 1958, an agreement was made between the Consortium, the West German government and HSL to share the cost of sending West German experts to Rourkela and training Indian engineers in West Germany. Between 1957 and 1958, VÖEST, an Austrian company joined hands with Krupp for the construction of RSP, which became the first Linz-Donawitz (LD) steel plant to be located outside Austria.
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Rourkela Steel Plant
Rourkela Steel Plant (RSP) is a public sector, integrated steel plant in Rourkela, Odisha state, India. It was established on 3 February 1959 with the help of West German industrial corporations on approximately 7,700 hectares (19,000 acres) of land acquired from tribal inhabitants. The plant is operated by the Steel Authority of India (SAIL), a Central PSU.
After the 2010-12 expansion, RSP currently has a production capacity of 4.5 MTPA (Million Tonne per Annum) of Hot Metal, 4.2 MTPA of Crude Steel and 3.9 MTPA of Saleable Steel, employs 19,134 employees as of February 2011 and produces a mix of products. The RSP reported an annual revenue of ₹26,830.57 crores (US$ 3.54 billion) and profit before taxes (PBT) of ₹6347.65 crores (US$ 837.53 million) for the financial year 2021–22.
The Rourkela Steel Plant Project was first announced by Jawaharlal Nehru in 1953. The steel plant at Rourkela was proposed in India's Second Five-Year Plan, drafted in 1954–55. RSP was projected as one of Nehru's temples to India's industrial modernity; aimed at rapid industrialization, removal of economic stagnation, generating employment and socioeconomic progress. The site of the plant at Rourkela was chosen for various reasons. One of the arguments is that in the 1950s, the government of Orissa was determined to attract investments for the establishment of industrial projects in the northern district of Sundargarh, which was considered to be one of the most backward regions with a mostly tribal population that desperately needed development. The decision was made for Rourkela due to technical and logistical reasons — raw materials such as iron ore, coal and limestone were locally available; water could be supplied from the Brahmani river; the Calcutta-Bombay railway line passed through Rourkela; and electricity could be supplied from the Hirakud dam.
In the 1950s to 1960s, western governments like West Germany were keen on offering development aid to India, fearing that India might join the Soviet Union at some point and that this might encourage other third world countries to do the same, given Nehru's socialist rhetoric and his contacts with the Soviet Union. India also had strategic importance being a neighbor to communist China. In the early 1950s, West German businessmen and bureaucrats at the Ministry of Economics began emphasizing the potential in India's markets. Between 1950 and 1960 alone, India received more than 14% of all West German development aid.
Recognizing that foreign investment and technology was important for industrialization, the Indian government approached and negotiated with different companies such as the Krupp Company and Demag for the construction of a steel plant in the 1950s. In 1953, a deal was signed between the government of India and a Consortium of West German companies (Krupp, Demag, Gutehoffnungshütte (GHH), Mannesmann, Allgemeine Electricitals Gesellschaft (AEG) and Siemens) for the establishment of a Steel Plant in the Indian state of Orissa.
The Hindustan Steel Limited (HSL) was established as a public sector undertaking on 19 January 1954 to manage a steel plant to be set up in Rourkela. In March 1954, Krupp and Demag formed a separate company called the Indien Gemeinschaft Krupp Demag (IGKD), headquartered at Duisburg. The IGKD's purpose was to provide consultancy for the design and procurement of all plant equipment, to design the layout, to supervise erection and to commission India's first fully integrated steel plant. On 9 June 1954, the Board of Directors of HSL met in Delhi to give the go-ahead signal to IGKD for the construction of a steel plant in Rourkela. In 1956, an agreement was signed between the Indian government and Krupp's representatives, agreeing that Krupp would sell and ship all material required for the establishment of the Rourkela Steel Plant, with a production capacity of 1 MTPA of raw steel, and that Krupp would advise the HSL on the construction of the RSP. In exchange for the work and counsel, the Indian government would pay US$4.6 million to the companies.
Even before the initial agreement for a steel plant in Rourkela had been signed, there was significant opposition to it from locals. In 1953, a Steel Plant Site People's Federation (SPSPF) had been formed to advocate for the villagers who opposed the plant. The first notifications of land acquisition for the steel plant and a new township were issued in 1954. The terms of land acquisition included monetary compensation for the land lost; the promise of a job in the regular RSP workforce for one able-bodied member from each household; provision of housing plots with subsidies in 3 resettlement colonies (Jalda, Jhirpani and later Bondamunda) in the periphery of the new township; and in addition to it, unbroken land for cultivation with an allowance for breaking it. To prepare Rourkela for an industrial complex, more than 30 villages were displaced and about 13,000-16,000 of their mostly Adivasi inhabitants forcibly resettled to acquire about 8,001 hectares (19,772 acres) of land in 1955. Later, parts of Bondamunda village were acquired for a marshalling yard of the steel plant. However, the compensations are said to have been inadequate, some displaced persons received nothing at all; the jobs promised were given years later, some were never given, and many had to survive on meager incomes from irregular casual labour.
The construction of RSP began in 1956. The Germans realized that the task of building a steel plant in an underdeveloped area turned out to be more difficult than anticipated, due to insufficient logistics and slow transportation. In 1958, an agreement was made between the Consortium, the West German government and HSL to share the cost of sending West German experts to Rourkela and training Indian engineers in West Germany. Between 1957 and 1958, VÖEST, an Austrian company joined hands with Krupp for the construction of RSP, which became the first Linz-Donawitz (LD) steel plant to be located outside Austria.