INDUSTRY NEWS

ArcelorMittal keeps $6.5-billion steel, power project in Karnataka ‘under review’

Even as ArcelorMittal looks to enhance finished steel production capacity at AMNS India to more than double to 15 million tonne per annum (mtpa) through its joint venture partner Nippon Steel, it has kept its own $6.5 billion proposed greenfield steel and power project in Karanataka under review, indicating that the company would like to concentrate more on the Western market in the near-term than in the South.

The world’s largest steelmaker had executed with the Karnataka government a lease-cum-sale agreement for 2,643 acre of land on December 26, 2018 for its proposed 6 mtpa steel plant with a captive 750 MW power plant, but its latest annual report said, “The project is currently under review”.

A mail sent to the company seeking clarification on the same elicit no answer. ArcelorMittal had in June 2020 entered into a MoU with the Karanataka government for the proposed investment.

ArcelorMittal, along with its partner Nippon Steel, completed the acquisition of the erstwhile Essar Steel (later change its name to AMNS India) though the insolvency route in December, 2019 for Rs 42,785 crore. ArcelorMittal holds 60% stake in the joint venture that acquired AMNS India while Nippon holds the remaining 40%.

Source
financial express
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