The BJD government has made contact with ArcelorMittal-Nippon, asking them to establish a 3 million tonnes per annum capacity steel plant in the state.
“Original MoU with Essar Steel was for setting up of 3MTPA steel plant at Paradip in Odisha, it will give a major boost to our target of reaching 50 percent value addition on minerals in the state by 2030. The land for the plant is already with the company and talks are at a preliminary stage with ArcelorMittal Nippon,” said Hemant Sharma, principal secretary, industry, Odisha government.
“Our industrial strategy for India includes an initial investment of more than Rs 8,000 crore to improve existing operations, efficiency, technology, product quality, and profitability. And, we are also committed to growing the business further, reaching shipments of 8.5 million tonnes and a long-term aspiration of 12-15 million tonnes” said Aditya Mittal, president and CFO, ArcelorMittal, and chairman of ArcelorMittal-Nippon (AM/NS) India.
In December 2019, ArcelorMittal-Nippon joint venture acquired Essar Steel by making an initial payment of Rs 42,000 crore under Insolvency and Bankruptcy Code (IBC). ArcelorMittal had long identified India as an attractive market, and with this acquisition, it has established a concrete presence in a country that has emerged as the second-largest producer of steel in the world.