Arcelor Mittal Nippon Steel’s (AMNS’s) proposal of setting up a 24-million-tonne-per annum steel plant has got the Odisha government’s nod from the high-level clearance authority chaired by chief minister Naveen Patnaik. The integrated steel plant at Mahakalpara in Kendrapara of Odisha would entail an investment of Rs 1,02,275 crore, wherein the facility would also produce 18.75 MTPA cement and would develop a downstream industrial park to promote MSMEs for import substitution.
Odisha industry secretary Hemant Sharma told FE AMNS would set up their plant on 6,000 acres and the two mines, Thakurani and Sagasahi, the company has got via auction, would be sufficient for its raw material security. But, if required, it could get more iron ore blocks via the auction route.
Production from the two iron ore mines, at present producing 10 MTPA, would be rai-sed to 15 MTPA gradually when the facility starts operation. This mega project, expected to be completed in seven years, would be implemented in phases.
The chief secretary-chaired high-powered committee would monitor the project while ensuring logistic infrastructure, power water utilities and all required clearances are provided in a time-bound manner, Sharma said, adding that the approved project would be the country’s largest manufacturing facility, with the cement plant also being one of the country’s largest cement-making facility.
The 24-MTPA integrated steel plant would make various grades of steel with green steel making technology. It would also produce high value-added steel downstream products. AMNS’s steel-making facility would require a number of ancillary manufacturing companies. This would attract further investment in the state centering around the steel facility.
The company was developing a captive jetty on the Subarnarekha Port, being built by the Tatas. Beside the project at Kendrapara, the company would put up a 6 MTPA pellet plant at Paradip, on the Essar Steel facility. AMNS acquired the debt-ridden Essar Steel in 2019 via the NCLT route.
“The facility at Paradip has a land parcel of 1,485 acres but AMNS was at present utilising 200 acres only,” Sharma said.
The integrated steel project would create 16,000 jobs, a company source said.