ArcelorMittal plans Rs 2,000 crore investment in Odisha

ArcelorMittal Group plans to invest Rs 2,000 crore (US$ 283.73 million) in Odisha, said its Group Chairman and CEO Mr L N Mittal. Mr Mittal was interacting with Odisha Chief Minister Mr Naveen Patnaik through a video conference.

ArcelorMittal Group is the world's largest steel maker.

"We already have a Rs 2,000 crore (US$ 283.73 million) investment plan in Odisha which is already going on with support of your administration, your people and your guidance. You have a great experience and you have managed the COVID crisis very well which is good news," said Mr Mittal to Mr Patnaik during the interaction.

Mr Mittal added that the "company could not produce in Hajira, the full production, we would produce in Odisha and export pellets".

"But, what we like is that we have a lot of ideas to continue our expansion in Odisha. We are working on two mines - Sagasai and Thakurani," he said.

The company won one of the two mines through auction, which was organised in a very transparent manner.

"So, I see that this auction process which you designed is one of the best auction processes. The people have seen the transparency in governance. That is the most important thing as an international company. We see this as very important for us," Mr Mittal said.

Mr Patnaik assured Mr Mittal to provide all support from the state government and added that the Chief Minister's Office will interact with the ArcelorMittal office so that your (Mittals) project gets headway very soon.

Mr Patnaik also provided advise to the company to add value to the mineral resources procured from Odisha in the state itself so that more employment opportunities are created and help in the development of the state economy.

In the meantime, a statement released by the Chief Minister's Office said that the company is planning to expand its pellet plant at Paradip and increase its production capacity from 6 million tonnes per annum (MTPA) to 12MTPA.

There are also plans to expand its iron beneficiation plant at Baduna in Keonjhar district from 5 MTPA to 16 MTPA.

ArcelorMittal and Nippon Steel acquired Essar steel. The Essar plant has 6 MTPA pellet plant at Paradip. ArcelorMittal Nippon Steel India (AM/NS India) is the new name of Essar Steel India after it was acquired by a joint venture between ArcelorMittal and Nippon Steel Corporation.

With the acquisition of Essar Steel at a cost of more than Rs 50,000 crore, as much as US$ 7 billion has been invested in India, which is considered as one of the biggest foreign direct investment (FDI), the CMO statement said.

 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.