2 steel plants likely in Gadag

Two steel plants with an investment of Rs 2,200 crore will come up in Gadag district. The plants will be of 1.26 million tonne capacity each.

Chief Minister B S Yeddyurappa will soon convene a high-level meeting in Bangalore to draw a comprehensive plan to create infrastructure and facilities to enable the establishment of the plants.

Minister in charge of Gadag district B Sriramulu said Kothari Steels of Kanpur and Matrix Metallics of Mumbai have come forward to set up units in Karnataka as part of their diversification plan.

He said if things go according to plan the state government will sign a Memorandum of Understanding (MoU) with these companies next month. The two companies have already identified some non-agriculture land in Gadag district.

Sriramulu said, as per the preliminary proposal Kothari Steels plans to set up its plant in the district at a cost of Rs 1,000 crore and create direct employment for 1,000 persons and indirect employment to 2,000 persons.

Matrix Metalics will invest Rs 1,200 crore to set up a steel mill which will provide direct and indirect employment at the same level.

The companies plan to set up their own state-of-the-art facility comprising of a pelletisation plant, steel-making facilities and iron-pipe making facilities. The facilities will be set up in three stages over five years. Mining firms in Bellary will arrange the supply of iron ore required for the steel plants, Sriramulu said.

Stating that the government was committed to creating infrastructure to attract industrial investment in backward districts too, the minister said setting up of steel plants would boost the industrial activity in the region.

“Appropriate social infrastructure would also be provided along with industrial infrastructure to ensure sustained development,” Sriramulu asserted.