Posted on 22 Dec 2021
The government of Odisha has approved Arcelor Mittal Nippon Steel (AM/NS) India's proposal to set up a 24mn t/yr integrated steel plant in the state.
The steelmaker will produce various grades of steel with its latest green steel making technology and produce high value-added steel downstream products, the Odisha government said in a statement.
The project will be built at Mahakalpara block of Kendrapara district with an investment of $13.4bn and take about seven years to complete, while providing direct employment opportunities to 16,000 people and significant indirect employment opportunities through ancillary and downstream industries and services.
AM/NS will also develop a downstream industry park to promote micro, small and medium enterprises and help import substitution, the statement said, adding a large number of ancillary manufacturing companies are expected to put up their units in the region to support the steel making facility.
This facility will also produce 18.75mn t of cement annually, making it one of the largest cement manufacturing plants in the country.
Nippon Steel announced its plans to set up a second steel mill in India under its AM/NS joint venture last month as it aims to capture more of the Indian market.
AM/NS currently operates a 7.6mn t/yr steel plant in Hazira, Gujarat and aims to double production to 14mn t/yr in the medium term and 18 mn t/yr in the long term.
Odisha gave in-principle approval to five major steel projects earlier this year, namely expansion projects of Jindal Steel and Power's Angul plant, Tata Steel's Kalinganagar plant, Bhushan Steel and Power's greenfield plant at Sambalpur among others.
India aims to reach 300mn t of steelmaking capacity by 2030, of which Odisha targets to contribute about 100mn t.
Source:Argus
