Fresh capital outlay of Rs 20k-cr for infra at AMNS's Gujarat steel plant

ArcelorMittal chairman L N Mittal shares steel plant progress with Gujarat chief minister Vijay Rupani

Having acquired Essar's steel plant in the state and now expanding capacity, ArcelorMittal's AMNS has now set aside a capital outlay of over Rs 20000 crore for enabling infrastructure, the company told Gujarat government on Thursday.

In a virtual meeting with Gujarat chief minister Vijay Rupani, ArcelorMittal chairman and CEO L N Mittal shared the group's progress with the large steel manufacturing facility in the state.
 

After a long battle in the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) leading upto Supreme Court (SC), ArcelorMittal's AMNS had acquired the plant from Essar Steel. Following an SC ruling, AMNS had acquired
Essar Steel for Rs 50000 crore.

Now the company has been witnessing an ongoing expansion investment of Rs 5000 crore to take the current rolling capacity of
7.3 million tonners per annum (mtpa) to 8.6 mtpa.
 

However, sharing progress of AMNS in recent months of June-July to return to 100 per cent capacity with the Gujarat CM, Mittal informed that a capital outlay of Rs 20000 crore has been set aside for enabling infrastructure for the expanded capacity.
 

The infrastructure will include land availability around existing operations, captive port, railway connectivity and incentive structure for mega investments. Already, the plant is one of the largest port based steel facility in the country with current captive port uninterrupted operations being essential to it. Creating such enabling infrastructure would also require additional land acquisition, sources said.

In his virtual meeting with Rupani, Mittal also said that continuity of the plant's operations was important and more so in current context for all stakeholders including employees, associates, community and government given the taxes linked to shipment.
Mittal's AMNS also extended appreciation to the Rupani government for single window support.

Meanwhile, in response, Rupani maintained that his team in the state government would take forward the strong economic foundation laid by his predecessor and Prime Minister of India Narendra Modi by continuing to welcome investments and creating favorable ecosystem for ensuring competitiveness of manufacturing industry including MSMEs.