Shimla, Jan 23 (IANS) Himachal Pradesh Chief Minister Prem Kumar Dhumal Friday said Steel Authority of India Ltd (SAIL) will set up its proposed steel plant in Kangra district.”SAIL had conveyed to us its board’s decision regarding setting up the plant now at Gangath village in Kangra district,” he said.

There had been uncertainty over the location of the project for the past six months after the state government turned down SAIL’s proposal to set up the plant in Sirmaur district.

The state government cited its inability to provide land and power to SAIL in Sirmaur.

The Rs.455.5-billion steel behemoth has plans to invest Rs.1.06 billion (Rs.106 crore) in the hill state.

Using thermo-mechanical treatment technology, the proposed plant is scheduled to produce 120,000 tonnes of steel rods, wire drawings and corrugated sheets annually and is expected to provide direct employment to more than 200 people.