ArcelorMittal Nippon Steel India on Tuesday said it has completed the acquisition of 500 Mega Watt (MW) Bhander power plant in Hazira, Gujarat.
Bhander plant, which was commissioned in 2006 and commenced commercial operations in 2008, was purchased by AM/NS India under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, the company said in a statement.
It has acquired Bhander Power Plant from Edelweiss Asset Reconstruction Company.
"ArcelorMittal Nippon Steel India (AM/NS India) today announced that it has completed the acquisition of Bhander Power Plant in Hazira. Bhander, a natural gas-based thermal plant with an installed capacity of 500 MW, will remain captive to AM/NS India's steel manufacturing operations at Hazira," it said.
ArcelorMittal Nippon Steel India (AM/NS India) is a 60:40 joint venture between L N Mittal-owned ArcelorMittal and Japan-based Nippon Steel Corporation.
"We are pleased to have acquired these important ancillary assets for our steelmaking facilities. This is in line with an intent to secure a robust captive power and commodity supply chain as we continue to make strong strides in our production and operational performance.
"Efforts to become increasingly self-reliant, in this case through the procurement of a key energy source in Gujarat and an iron ore rich reserve in Odisha, form part of AM/NS India's medium to long term strategy to significantly grow our production capacity in India," its CEO Dilip Oommen said.
Earlier this month, ArcelorMittal India Private Limited (AMIPL) -- which holds majority share in the JV firm AMNS -- was selected preferred bidder for Thakurani iron ore mine license in Odisha following an auction process facilitated by the state government.
The block in the district of Keonjhar, with estimated reserves of 179.26 million tonnes, is expected to make a valuable contribution to AM/NS India's long-term raw material requirements.
On conclusion of the license award process, AMIPL will proceed to seek requisite clearances, as well as mine development and production agreements, ahead of commencing mining operations.
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