State-run companies Steel Authority of India Limited (SAIL) and National Mineral Development Corporation (NMDC) would set up an ultra mega steel plant (UMSP) in Chhattisgarh’s Bastar region.
The greenfield project had proposed at Dilmili—about 35 kms from the divisional headquarters of Bastar. The plant would have a 3 million tonne per annum capacity and would come up with an investment of Rs 18,000 crore. Both the companies and the Chhattisgarh government would ink agreements for the project in presence of Prime Minister Narendra Modi who would be visiting Bastar on May 9.
“Two special purpose vehicles (SPVs) would be set up, one for the project and another for the mining,” Chhattisgarh’s industry secretary Subodh Kumar Singh told Business Standard. In the project SPV, SAIL would have equity of 74 per cent while NMDC would hold remaining 26 per cent.
In the mining SPV, Chhattisgarh Mineral Development Corporation (CMDC) would hold 49 per cent equity while NMDC and SAIL would share 26 and 25 per cent respectively. “Both the SPVs would reach an agreement to facilitate iron-ore supply for the plant from the mines owned by the CMDC,” Singh said. The state government would assist in land acquisition and required clearances besides mining lease for the project.
“The proposed UMSP is in sync with the union government’s ‘Make in India’ programme,” Singh said. The project would add value to the world-class iron ore that the Bastar region had been endowed with, he added. The steel plant would also bring a major change in the socio-economic condition in Bastar, which is otherwise known for the Left Wing Extremism across the Globe.