Enthused by the successful completion of a public hearing for its proposed steel unit in Chhattisgarh, Indian steel giant Tata Steel (BSE:500470) on Monday said it will invest around Rs 20 billion (US$431.78 million) at the plant to mitigate environmental concerns.

"Public hearing organised by the Chhattisgarh Environment Conservation Board was conducted successfully in Bastaron Monday.

Tata Steel will invest roughly Rs 20 billion on its plant especially to mitigate environmental concerns arising out of our project," a Tata Steel Spokesperson said over phone.

Bastar Collector M S Paraste said about 80 per cent of locals supported the project and the public hearing was completed successfully.

"The next step will be to demarcate the tracts of land and transfer it to Tata Steel," Paraste said.

Tata Steel requires about 5,050 acres of land for the steel project. The company has proposed an investment of over Rs 200 billion to set up the steel plant at Lohandiguda village in Bastar district.

The company signed an MoU with the state government in 2005 to set up the plant where it plans to employ nearly 10,000 people from the region.

"The steel plant which will also have a captive power plant will help in all round development of the tribal dominated economically backward division of Bastar," the spokesperson said.