Companies

ArcelorMittal Nippon Steel inks ₹50,000-cr pact with Odisha

Suresh P Iyengar Mumbai | Updated on March 04, 2021

Odisha Chief Minister Naveen Patnaik along with ArcelorMittal Chairman Lakshmi Niwas Mittal (right) during the signing of an MoU between the State government and ArcelorMittal Nippon Steel India Ltd in Bhubaneswar, on Thursday   -  PTI

To set up 12 million tonne per annum plant in the State

ArcelorMittal Nippon Steel (AMNS) plans to invest ₹50,000 crore in setting up a new 12 million tonne per annum integrated steel plant in Odisha.

The company has signed a memorandum of understanding with the Odisha government on Thursday.

Announcing the plans, Odisha Chief Minister Naveen Patnaik in a tweet said the proposed investment will be made in Kendrapara district giving further boost to ‘InvestInOdisha’ campaign of the government.

The investment plans comes on the back of maiden visit of Aditya Mittal to India after taking over the mantle from his father Lakshmi Mittal.

Aditya was recently elevated as CEO of Arcelor Mittal while Lakshmi Mittal became Executive Chairman and stepped aside from day-to-day activity of the company.

Also read: ArcelorMittal Nippon Steel buys Essar Power Orissa for ₹450 cr

Earlier, Mittals had a meeting with the Chief Minister of Odisha to discuss the company’s investment plans in the State. On Tuesday, they met with the Prime Minister Narendra Modi and Minister for steel, oil and gas in Delhi.

Mittals will be meeting Gujarat Chief Minister Vijay Rupani on Friday, said sources.

Odisha investments

AMNS already has a substantial investment in Odisha. The company will complete the project to double its pellet making capacity to 12 mtpa at Paradip with an investment of ₹2,000 crore in next two months. It is also increasing beneficiation facility at Dabuna to 16 mtpa from 5 mtpa.

The company had bagged two iron ore mines in Odisha and started mining at Thakurani mine while the one at Sagasahi is close to commissioning.

The world’s largest steel company ArcelorMittal in joint venture with Japan’s Nippon Steel made their presence in the fastest growing Indian steel market by acquiring stressed Essar Steel asset in December, 2019.

After a prolonged legal battle of over two year, AMNS acquired Essar Steel’s 10 mtpa plant at Hazira in Gujarat for ₹42,000 crore. ArcelorMittal holds 60 per cent stake in the joint venture company.

In January, the Odisha government had asked AMNS to honour the MoU signed by erstwhile Essar Steel in 2005 to set up 3 mtpa steel plant in Odisha.

Published on March 04, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor