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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.
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