AM/NS to invest over Rs 1 trn in a 24 mn tonne steel plant in Odisha

The company had earlier this year signed an MoU for setting up a 12 mt steel plant at Kendrapara, Odisha, at an investment of Rs 50,000 crore

A High-Level Clearance Authority of the Odisha government on Friday approved a proposal from ArcelorMittal Nippon Steel (AM/NS) to set up a 24 million tonne (mt) integrated steel plant at an investment of more than Rs 1 trillion.  

In a statement, IPICOL (Industrial Promotion & Investment Corporation of Odisha), the single-point of contact for all industrial investments in the state, said that under the chairmanship of Chief Minister Naveen Patnaik, the 27th meeting of the High-Level Clearance Authority has approved Arcelor Mittal Nippon Steel’s (AM/NS’s) proposal to set up a 24 mtpa integrated steel plant at Mahakalpara block of Kendrapara district against an investment of Rs 1.02 trillion.  

The company had earlier this year signed an MoU for setting up a 12-mt steel plant in Kendrapara, for an investment of Rs 50,000 crore. 

However, the state government officials said after studying the land it was found to be suitable for 24 mt and an application was made. It was approved today (Friday), they added.  

IPICOL said the approved project is the largest project in the manufacturing sector in the country. 

According to the state’s nodal agency for investment, AM/NS will produce 24 mt of various grades of steel with its latest green steel making technology. It will also produce high value-added steel downstream products.

Besides, the facility will also produce 18.75 mt of cement annually, making it one of the largest cement manufacturing plants in the country. 

The project will generate direct employment opportunities to 16,000 people and create significant indirect employment opportunities through ancillary and downstream industries and services. 

Along with the steel complex, the company will also develop a downstream industry park to promote the MSMEs and help import substitution. 

According to IPICOL, a large number of ancillary manufacturing companies are expected to put up their units in this region to support the huge steel making facility.

“The infrastructure to be developed for the Kendrapara projects facility will give a boost to the logistics and overall development of the region. This modern, green and environment friendly steel making facility will put Kendrapara and Odisha on the world steel map,” the IPICOL statement said.

A number of international equipment manufacturers will be stakeholders in this project and catalyse more employment opportunities to the state, the statement further said.

The project will get completed in seven years in phases, IPICOL said.

With this investment, Odisha’s total investments garnered in the past 12 months stand at Rs 2.7 trillion, generating employment opportunities for over 77,000 people.