IBEF: March 04, 2020
Arcelor Mittal Nippon Steel India (AM/NS) has acquired Bhander Power plant in Hazira, Gujarat from Edelweiss Asset Reconstruction Company. This follows the declaration of ArcelorMittal India as preferred bidder for Thakurani iron ore mine in Odisha.
Bhander, a natural gas-based thermal plant with an installed capacity of 500 MW, will remain captive to AM/NS India’s steel manufacturing operations at Hazira.
Under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, the plant was purchased by AM/NS India. Bhander started operations in 2006 while its commercial operations commenced in 2008.
Arcelor Mittal India Private Limited (AMIPL) was selected preferred bidder earlier this month for an iron ore mine license in Odisha following an auction process facilitated by the state government. Thakurani block in the district of Keonjhar, with estimated reserves of 179.26 million tonnes, is expected to make a valuable contribution to AM/NS India’s long-term raw material requirements.
On conclusion of the license award process, AMIPL will proceed to obtain requisite clearances, as well as mine development and production agreements, ahead of starting mining operations.
Mr Dilip Oommen, CEO of AM/NS India, said, “We are pleased to have acquired these important ancillary assets for our steelmaking facilities. This is in line with an intent to secure a robust captive power and commodity supply chain as we continue to make strong strides in our production and operational performance."
"Efforts to become increasingly self-reliant, in this case through the procurement of a key energy source in Gujarat and an iron ore-rich reserve in Odisha, form part of AM/NS India’s medium to long term strategy to significantly grow our production capacity in India,” he added
AM/NS India is an integrated flat carbon steel producer in India, with present capacity of around 8.5 million tonnes per annum. The company was formed following the acquisition of Essar Steel through the insolvency process.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.