The Orissa government today signed two memoranda of understanding (MoUs) worth Rs 14,200 crore with the Mumbai-based Essar Group and the Chennai-based Murugappa group, who will set up steel plants in Paradip and Duburi.

Hy-Grade Pellets Limited (HGPL), a joint venture between Essar Steel and the UK-based Stemcor, will set up a 4-MTPA integrated steel plant at the Paradip port in the next five years.

Tube Investments of India (TII), the flagship of the Rs 4200-cr Murugappa group, will build a 1.2-MTPA unit at Kalinga Nagar in Duburi by 2009.

The Essar Steel plant, to be set up over 2500 acres, would see an investment of Rs 10,721 crore.

The Essar plant would also build a 1000-megawatt coal-based power plant at Talcher.

The steel plant of the Murugappa group will cost Rs 3,480 crore.

The group will also set up a 60-megawatt captive power plant in 2500 acres.

For the Essar Group, project director B. K. Panda signed the agreement with the state government.

The other agreement was signed by Tubes Investment managing director M. A. Alagappan.

Chief minister Naveen Patnaik said Orissa is poised to add about 50 MTPA capacity in steel making and 3 MTPA in alumina processing.

He also reiterated that his government would provide all necessary assistance and co-operation to ensure that the investors operate in a constructive and helpful atmosphere.

Yesterday, the Tata group commissioned three major projects in steel, information technology and tourism in Orissa.