AMNS India to set up Rs 50,000 crore steel mill in Kendrapada

BHUBANESWAR: In a major boost to Odisha’s industrial landscape, the ArcelorMittal Nippon Steel India Limited (AMNS India) on Thursday signed an MoU with the state government to set up a 12 mtpa integrated steel complex in Kendrapada district with an investment of Rs 50,000 crore.
The deal was signed here in presence of chief minister Naveen Patnaik and executive chairman of ArcelorMittal LN Mittal.The development came two days after Mittal met Union steel minister Dharmendra Pradhan in New Delhi where discussion about the proposed project was held, sources said.
“The project will be a milestone in the industrial journey of Odisha and particularly Kendrapada, the Karmabhumi of Biju Babu, who loved the place and its people from the core of his heart. The steel plant will add significantly to the economic activity and employment generation,” said Naveen on the occasion.
Naveen also assured Mittal that the entire government team will work hard with dedication for quick implementation of the mega project and also said that he will personally monitor each and every milestone of the project.
Mittal said he is very happy to partner with Odisha government to set up the integrated steel complex, which is in addition to the other investments of AMNS India in the state including expansion of pellet plant in Paradip, beneficiation complex at Dabuna in Keonjhar and slurry pipeline, which it got after acquiring the Essar Steel following bankruptcy proceedings.
Though the exact location of the project is yet to be decided, sources said the complex will come up near Mahakalapada, close to the proposed riverine port on Mahanadi and newly-built Haridaspur-Paradip rail line. Around 4,000 acres including government, private and other categories of land will be acquired. Then chief secretary Asit Tripathy and 5T secretary V K Pandian had visited Kendrapada last year as part of the groundwork for a big industrial project there leading to this, a senior government officer said.
World’s largest steel maker, ArcelorMittal’s foray into Odisha is not new as the company had earlier signed an MoU to set up a 12 mtpa steel plant in mineral-rich Keonjhar district in 2006 but later backed out in 2013, citing delay in land acquisition and raw material linkage.
The state government, this time, is hopeful of the new venture, as the company has all required parameters to set up a steel plant.
“AMNS India is a different entity that combines the financial strength of the Mittal Group and Japan’s Nippon Steel, known for its high-technology steel products. Besides, the company has already started investing around Rs 2,000 crore in expansion of its operational projects at Paradip and in Keonjhar,” state industries secretary Hemant Sharma told TOI.
The company also has two iron ore mines—Thakurani block with a reserve of 179.26 MT and Ghoraburhani-Sagasahi iron ore block with a reserve of 78.24 MT, originally bagged by Essar.
On AMNS India’s choice to set up plant in industrially-deficit Kendrapada district, Sharma said Kendrapada is the right choice at present as the coastal district is very well connected now by highway, rail line and port and in terms of availability of power and water.
The current cohesion between the Centre and state government and the target to ramp up country’s steel production to 300 mtpa by 2030 including 100 mtpa alone from Odisha to meet the global steel demand, seem to be extra advantages for smooth grounding of the project.
Experts said AMNS India’s penetration into Odisha will further boost the steel production as Odisha already has presence of major steel makers like JSPL, Tata Steel and JSW. At present, the installed capacity of total steel plant is 32.82 mtpa, producing 18.54 mtpa in 2019-20 and 19.26 mtpa in 2018-19.