After buyout of Essar Steel, the Odisha government has reached out to ArcelorMittal Nippon to revive dormant 3 MTPA (million tonnes per annum) steel plant plans in the state. The erstwhile promoter of Essar Steel in 2005 had signed an MoU with the Odisha state for building a steel plant in Paradip with a capacity of 3 MTPA, which may require about Rs 12,000 crore investment.

“Original MoU with Essar Steel was for setting up of 3 MTPA 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 is already there with the company. The talks are at a preliminary stage with ArcelorMittal Nippon” said Hemant Sharma, principal secretary, industry, Government of Odisha.

The takeover of the Essar Steel by ArcelorMittal Nippon has given the company access to a developing market with 10 MTPA steel making capacity on the west coast Hazira, Gujarat. It also has the advantage of a pellet plant, beneficiation plant and slurry pipeline in the state of 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, ArcelorMittal Nippon Steel India after the takeover.

ArcelorMittal Nippon made an initial payment of Rs 42,000 crore for the acquisition of Essar Steel under Insolvency and Bankruptcy Code in December 2019.

First Published:Feb 16, 2020 12:36 PM IST