BHUBANESWAR: ArcelorMittal has revived its earlier plan to set up a 12 MTPA mega steel plant in Odisha with an investment of more than Rs 50,000 crore. The State government and ArcelorMittal Nippon Steel India Limited (AM/NS) on Thursday signed an MoU for setting up the integrated steel complex in Mahakalapada area of Kendrapara district in the presence of Chief Minister Naveen Patnaik and executive chairman of AM/NS LN Mittal at Lokseva Bhavan.
Earlier in the day, Mittal met the Chief Minister at Naveen Niwas to discuss steel sector development in Odisha and the proposed project. Describing Kendrapara as the ‘Karma Bhumi’ of his late father Biju Patnaik, the Chief Minister said that the place provides ideal prospects for an integrated steel complex. He announced that the government will provide all the required support and facilitation for setting up the mega project.
Official sources said that land acquisition and other work for grounding the project will start soon. Mittal expressed his happiness to partner with the Odisha government to set up the integrated steel complex at Kendrapara. This will be in addition to other investments of AM/NS in Odisha including the 6 MPTA pelletization plant in Paradip which will be expanded to 12 MTPA, the beneficiation complex in Keonjhar and the slurry pipeline which are already operational, he said.
He reiterated that AM/NS is committed to partner with the Government of Odisha in the industrial growth journey of the State. Earlier on Tuesday, Union Minister for Steel Dharmendra Pradhan had discussed steel sector development in Odisha with Mittal at New Delhi. During a visit to Kendrapara district on February 24, Pradhan had announced that both the Centre and the State government are working to set up a mega steel plant in the district and the project will be announced soon.
Way back in 2006, ArcelorMittal had signed an MoU with the Odisha government to set up a similar capacity steel plant in Keonjhar district with an investment of Rs 40,000 crore. However, it abandoned the project in July, 2013 due to its failure to get suitable land and necessary permits to mine iron ore, a key raw material.