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Odisha govt asks ArcelorMittal-Nippon to revive steel plant in Paradip

The Odisha government has reached out to ArcelorMittal-Nippon, asking them to set up a 3 million tonnes per annum (mtpa) capacity steel plant in the state.

The erstwhile promoter of Essar Steel had signed a MoU with Odisha government in 2005 for building a steel plant in Paradip, which could cost about Rs 12,000 crore.

“Original MoU with Essar Steel was for setting up of 3MTPA steel plant at Paradip in Odisha, it will give a major boost to our target of reaching 50 percent value addition on minerals in the state by 2030.”

The land for the plant is already with the company and talks are at a preliminary stage with ArcelorMittal Nippon, said Hemant Sharma, principal secretary, industry, Odisha government.

The takeover of the Essar Steel by ArcelorMittal-Nippon has given the company access to a developing market with 10MTPA steel-making capacity on the west coast Hazira, Gujarat.

It also has the advantage of a pellet plant, beneficiation plant and slurry pipeline in Odisha, which will give the company an edge on the east coast as well.

“Our industrial strategy for India includes an initial investment of more than Rs 8,000 crore to improve existing operations, efficiency, technology, product quality, and profitability. And, we are also committed to growing the business further, reaching shipments of 8.5 million tonnes and a long-term aspiration of 12-15 million tonnes” said Aditya Mittal, president and CFO, ArcelorMittal, and chairman of ArcelorMittal-Nippon (AM/NS) India.

ArcelorMittal-Nippon joint venture had made an initial payment of Rs 42,000 crore for the acquisition of Essar Steel under Insolvency and Bankruptcy Code (IBC) in December 2019.

Source
CNBC
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