Bhubaneswar, Aug 8 (IANS): Indian steel major Tata Steel is all set to commission its three million tonne per annum (mtpa) steel mill at its green field unit in Odisha's Kalinganagar by this December, a company official said on Saturday.

Kalinganagar plant is the largest single location Greenfield steel project in India.

"The project is nearing completion while some works are going on in full swing. We expect the first phase commissioning of the project by December," Kalinganagar project vice-president (operations) Rajeev Kumar said.

He said hitting of coke oven has already started since May 19 this year.

The coke plant takes three months to heat up and once it is ready to produce coke and the sinter plant is operational it will start the process for commissioning of the blast furnace, which will take another three months.

With the commissioning of the first phase of the 6 million tonne steel plant, the total steel production of Tata Steel across the country would scale up to 13 million tonnes.

Kumar said about Rs.22,000 crore have been invested in the first phase of the steel mill. "We expect the completion of second phase by 2019 with an investment of approximately Rs.15,000 crore."

The Kalinganagar project entails an investment of Rs.50,000 crore.

The vice-president said the plant would source raw material from three mines - Khondbond mines, Nuamondi mines and Joda east iron ore mines. "Besides, the company wants iron ore mining leases at Mankadanacha and Baliapal to be restored. They were scrapped after the company failed to set up a steel plant in Gopalpur in the nineties."

"The company is in the process of discussion with the Odisha government to get the two mines," said Kumar.

Though he denied having any problem in sourcing raw material for the first phase, Kumar said they may need to import iron ore for the second phase.

Tata Steel has already acquired 3,000 acres of land for the 6 mtpa project at the industrial hub in Jajpur district.

Tata Steel had signed a memorandum of understanding with the Odisha government for setting up a 6 million tonne steel plant at Kalinganagar in November, 2004 at an estimated cost of Rs.15,400 crore.

But due to an agitation by people who lost their lands, work could not be taken up on the project till about 2010. As a result the project cost for the first phase has mounted to Rs.25,164 crore.

Of this, about Rs.22,000 crore has already been pumped into the project.