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After acquiring ESL, Vedanta to set up $4-bn steel plant in Jharkhand

Vedanta would initially invest about $300 million to augment the capacity of ESL to 2.5 MT from the existing 1.5 MT

Press Trust of India  |  Kolkata 

Anil Agarwal
Anil Agarwal, chairman, Vedanta Resources Plc, at a meeting in Kolkata on Tuesday, December 25, 2018. PHOTO: SUBRATA MAJUMDER

Ltd on Tuesday said it will set up a new steel plant in Jharkhand with a capacity of 4.5 million tonnes (MT) per annum at an investment of $3-4 billion. 

The plant will be part of the company's newly-acquired Electrosteel Steels Ltd (ESL) at Bokaro, Vendanta Resources Chairman told reporters here.   

"This would be a new steel plant under ESL and in the same location at Bokaro... so it's a brownfield investment per se. The amount is likely to be to the tune of $3-4 billion for a capacity of 4.5 MT," Agarwal said.

would initially invest about $300 million to augment the capacity of ESL to 2.5 MT from the existing 1.5 MT. 

Once the new facility is commissioned, the total capacity of ESL would be around 7 MT, he said without elaborating on the time frame.

The plant would create 120,000 jobs in the form of direct and indirect employment, Agarwal said.

"We have about 2,200 acres at ESL and are scouting for a little more... The Jharkhand government has been very cooperative in this regard," he said.

In March, was declared as the successful resolution applicant for ESL under the corporate insolvency resolution process.

The company has acquired control of ESL and a new board of directors has been put in place. 

First Published: Tue, December 25 2018. 18:30 IST