Companies

ArcelorMittal to invest ₹20,000 crore on capacity expansion, infrastructure in Gujarat

Our Bureau Ahmedabad | Updated on July 03, 2020 Published on July 03, 2020

Arcelormittal Chairman and Chief Executive Officer Lakshmi Mittal   -  REUTERS

Investment is to be used for future expansion of steel facility at Hazira

To enhance its capacity in Gujarat’s Hazira, ArcelorMittal on Thursday committed to an additional investment of ₹20,000 crore in the State.

Steel magnet Chairman & CEO of ArcelorMittal LN Mittal announced his future expansion investments in the State during a video conference meeting with the Chief Minister Vijay Rupani on Thursday.

ArcelorMittal and Nippon Steel, through their joint entity — ArcelorMittal Nippon Steel India (AMNS) — had acquired bankrupt Essar Steel India Ltd (ESIL) by paying ₹50,000 crore in December 2019, after a long-drawn legal battle at the National Company Law Tribunal (NCLT) and the Supreme Court order ruled in favour of the global steel giant.

Appraising the Chief Minister about the progress at the largest steel plant in the State at Hazira, Mittal shared progress of AMNS in June-July, when it returned to 100 per cent capacity.

In an update on investments, he informed that apart from the ongoing expansion investments of ₹5,000 crore to enhance the Hazira plant capacity to 8.6 million tonnes per annum, there will be further expansion of capacity enhancement with a capital outlay of over ₹20,000 crore on all the enabling infrastructure. These would include land availability around existing operations, Captive port, railway connectivity, incentive structure for mega investments.

Single-window support

He also highlighted certain aspects, including taxes linked to shipments, access to captive ports, as AMNS is the largest port-based steel plant in India and, at the current captive port, uninterrupted operations are essential. He also acknowledged the single-window support provided through the CM’s Office to be effective for smooth functioning.

The Chief Minister welcomed Mittal’s decision to further invest in Gujarat and assured that the current team at the Gujarat government will continue to welcome investments and create a favourable ecosystem for ensuring competitiveness of manufacturing industry including MSMEs.

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

Published on July 03, 2020
This article is closed for comments.
Please Email the Editor