ArcelorMittal Nippon Steel (AMNS) India is going to break ground for the proposed Paradip plant by January, kicking off construction of a 7 million tonnes per annum project.
This is going to be the first greenfield plant of the company in the country and one of the few ArcelorMittal has built around the world. Known for its penchant to grow by acquisitions, ArcelorMittal holds 60 per cent share of AMNS India with Japan’s Nippon Steel having the rest.
Hemant Sharma, principal secretary of the industry department, Odisha, said the state government has given 1,485 acre land to the company for the proposed project. “The target is to break ground by December-January,” the secretary disclosed, adding that the investment in the steel plant is going to be Rs 38,000 crore.
AMNS already has a presence in Odisha. The company has an iron ore mine, a slurry pipeline and a pellet plant in Paradip, the coastal town where one of India’s major ports is located. Apart from Paradip, the steel major has also proposed a plant at Kendrapara in Odisha. However, that project could take some more time to take off.
At present, AMNS India’s integrated steel plant is located at Hazira, Gujarat, which was acquired from bankruptcy court in 2019 by ArcelorMittal and Nippon Steel. Since then, the JV has been on a buying spree, acquiring downstream steel makers (Uttam Galva) or back-end infrastructure (port terminal, power plants and slurry pipeline).
Additionally, it has also announced expansion of the Hazira plant from 9 mt to 15 mt and building value added downstream units, for a combined investment of $7.5 billion. While the downstream units will be ready in phases by 2024, the expanded capacity at Hazira will be ready by 2026.
AMNS did not immediately comment on the Paradip project on Tuesday even as the company in the earnings release in July had said that preparatory work for Paradip and Kendrapara integrated steel plants are underway. Environment clearance application has been done for both projects, it added.
Sharma said on Tuesday that terms of reference for the environment clearance for Paradip has been issued.
While ground breaking of the project may take place ahead of the state Assembly elections due in 2024, the actual construction work may also depend on how swiftly the administration manages to relocate a clutch of squatters who have encroached on the plot meant for the Paradip plant, an industry source pointed out.
The AMNS plant is one of the many industrial projects that are coming up in Odisha, which has emerged as the new manufacturing hub in the east, especially for mineral based industries.
In the investor summit held in November 2022, the state had received 741 intents, entailing investment of Rs 10.3 lakh crore. Sharma, who was in Calcutta to court investments from the members of EEPC India, said projects are in different stages of implementation.
“As of now, we are close to 150 units being approved by our single window process,” Sharma said at the sidelines of the event. Put together, these projects may attract Rs 4-4.5 lakh crore investment.
However, the secretary informed that green hydrogen, green ammonia were some of the prominent areas of interest among the intents received.
