One of the world’s largest steelmakers, ArcelorMittal Nippon Steel, will invest ₹1 trillion (approx. U.S. $13 billion) to put up a 24 million ton per annum (MTPA) integrated greenfield steel facility in India’s eastern province of Odisha, India Today reported.
The project will generate 16,000 direct employment opportunities and other related indirect employment jobs through ancillary and downstream industries and services, as per a statement released by the Odisha government.
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Largest project in the country
The new plant will be India’s largest project in the manufacturing sector, the government said. Several international equipment manufacturers will be stakeholders in this project, likely to be finished in seven years.
The project at Kendrapara in Odisha will eventually make various grades of steel with its “green” steelmaking technology. In addition, it would also have cement capacity of 18.75 MTPA.
When completed, the steel and cement facilities would both be India’s largest single location greenfield projects.
AM/NS has also acquired two iron ore mines in Odisha by winning bids in auctions. ArcelorMittal has a 60% stake in AM/NS India. Meanwhile, Japan’s Nippon Steel holds the rest.
To avoid any delay in implementation of the project, the provincial government will form a committee to monitor time-bound clearances for logistics infrastructure and utilities required for the project.
ArcelorMittal will also develop a downstream industry park to promote micro-, small- and medium-sized enterprises and help import substitution. A large number of ancillary manufacturing firms are expected to set up units in the region to support the steel plant.
The new plant is part of ArcelorMittal Nippon Steel India’s play. Earlier this year, the company said it was very bullish in India and planned to increase its capacity by 5 MT in the next three years.
It had already announced plans to expand steelmaking capacity to 14 MTPA in the Gujarat province.
The joint venture between ArcelorMittal and Nippon Steel is betting big on India. In 2019, the companies jointly acquired India’s Essar Steel under the insolvency code.
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