Indian steel magnate Lakshmi Mittal has signed a Memorandum of Understanding with the Odisha government to set up a steel plant in the mineral-rich eastern Indian state with an investment of $6.9 billion (Rs 50,000 crore).
The MoU has been signed between ArcelorMittal Nippon Steel India Ltd. and the Odisha government for a 12 million ton integrated steel plant in Kendrapara district, confirmed Chief Minister Naveen Patnaik via a tweet on March 4.
Earlier this week, Union Steel Minister Dharmendra Pradhan also held discussions with Arcelor Mittal Chairman LN Mittal and CEO Aditya Mittal on driving innovation to fuel Aatmanirbhar Bharat’s growth story.
ArcelorMittal had earlier made an attempt to build a similar capacity plant in the state. However, it ditched the plan in 2013 following failure to get suitable land and necessary permits to mine iron ore.
This time, ArcelorMittal is prepared to set up the plant after a year-long tussle to buy Essar Steel India Ltd’s assets under the bankruptcy process in 2019.
Amid the COVID-19 pandemic, steel prices gained momentum in Europe and rose to a 10-year high in China leading to increased earnings for steelmakers. Compared to 2020, the shares of ArcelorMittal have also more than tripled since hitting bottom in March last year.
The latest announcement by ArchelorMittal about setting up the steel plant in Odisha comes at a time when the Union government is looking to boost investment in sectors such as housing, roads, ports and railways. Mittal has been focusing on consolidating operations globally, which include selling its North American operations to Cleveland-Cliffs Inc. and shuttering an unprofitable furnace in Poland, reported Bloomberg.
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