AM/NS India likely to break ground for Paradeep steel plant in Dec-Jan

The joint venture between global steelmakers, ArcelorMittal and Nippon Steel, is looking at setting up two greenfield plants in Odisha - a 12 mt plant at Kendrapara district and 7 mt at Paradeep

ArcelorMittal Nippon Steel India (AM/NS India) is anticipated to commence construction of its 7 million tonne (mt) greenfield steel plant at Paradeep, Odisha, in December or January, according to Hemant Sharma, the industries secretary of Odisha.

The collaboration between global steelmakers, ArcelorMittal and Nippon Steel, is exploring the establishment of two greenfield plants in Odisha: a 12 mt plant in Kendrapara district and a 7 mt facility at Paradeep.

Sharma revealed that the investment for the 7 mt Paradeep plant would amount to Rs 38,000 crore. AM/NS India, however, declined to comment.

In its recent announcements of financial results, ArcelorMittal, which holds a 60 per cent equity stake in AM/NS India, stated that preparations for integrated steel plant (ISP) projects in both Paradeep and Kendrapara were in progress, and environmental clearance applications had been submitted for both sites.

Currently, AM/NS India is in the process of expanding its operations at Hazira, Gujarat, with plans to increase capacity from 9 to 15 mt by 2026.

AM/NS India's investment proposal was one of the many that the Odisha government secured at the investor summit held last year. The Make in Odisha investor summit garnered investment proposals totalling Rs 10.5 trillion.

Sharma noted that the state had received 741 investment intents. "Close to 150 are being approved by our single-window process and are in different stages of allocation," he explained. The total investment from these 150 intents is expected to be in the range of Rs 4 to 4.5 trillion. He made these remarks during an interactive session organised by EEPC India.

Odisha, with its rich deposits of high-grade iron ore and coal, attracts numerous steel companies. Most of the major steel firms are pursuing expansion within the state through brownfield or greenfield options.

Interestingly, Sharma added that at the last summit, the majority of proposals were from sectors such as green hydrogen, green ammonia, and petrochemicals, rather than traditional steel or mineral processing.