Bhubaneswar: The State Government is extending all possible support for early commissioning of the proposed mega steel plant project of ArcelorMittal Nippon Steel India (AMNS India) in Kendrapara.
The AMNS India has proposed for setting up of 24 MTPA integrated steel plant with investment of Rs.1,02,275 crore in Kendrapara. The company has planned to commence operations in 2027.
In March this year, the company had signed an MoU with the State Government for establishment of the integrated steel mill.
As it is a big investment project, the State Government is making all efforts for grounding of the project, sources said.
The notification of Eco-Sensitive Zone (ESZ) of Bhitarkanika and Gahirmatha sanctuaries is pending with the Ministry of Environment, Forest and Climate Change.
So, the State will soon move to the MoEF to fast-track the demarcation and notification of ESZ for setting up of the plant in time, the source said.
Recently a senior Minister had also raised the issue with Union Government and response from the Center was positive.
This is because, Union Government is trying hard to boost investment, infrastructure and growth in post Covid Pandemic situation, which faced serious contraction during last one and half year.
In fact, Odisha has been at the forefront of rapid industrial development over the last few years and has been able to attract investment worth more than Rs.4 lakh crore in the last 2 years alone despite the pandemic.
Odisha has turned out to be a favorite destination for investment and to boost investment collaborative approach between Center and State is needed, feel senior officials.
The investments proposed in Odisha are in diversified sectors of metallurgy, power, cement, textile, petro chemicals, food processing and tourism. In order to enable faster grounding of these investments, the State is requiring support from Government of India in providing timely forest and environmental clearances.
Around 4,000 acres including Government, private and other categories of land will be acquired for the project. Meanwhile, the company has completed its feasibility study for the mega project.
The steel plant of AMNS India will add significantly to the economic activity and employment generation not only in the area but also in the entire Odisha.
AMNS India, a joint venture between ArcelorMittal and Nippon Steel, is a different entity that combines the financial strength of the Mittal Group and Japan’s Nippon Steel. The company is known for its high-technology steel products.
The company also has two iron ore mines—Thakurani block with a reserve of 179.26 MT and Ghoraburhani-Sagasahi iron ore block with a reserve of 78.24 MT, originally bagged by Essar. So, their company may not face any raw material issue for the steel project, said an industry expert.
The company has the largest single-location pelletisation complex of the country at Paradip in Odisha. The pellet making capacity in the plant has doubled to 12 million tonne per annum (MTPA).
The current cohesion between the Centre and State and the target to ramp up country’s steel production to 300 MTPA by 2030 including 100 MTPA alone from Odisha to meet the global steel demand, will help in smooth grounding of the project, feels the expert.