ArcelorMittal Group will invest Rs. 20,000 crore on capacity expansion and infrastructure in Gujarat, the European steelmaker's chairman Lakshmi Mittal said recently.
The investment will be for further expansion of capacity enhancement in terms of land availability, captive port, railway connectivity, and incentive structure for mega investments, Mittal told Gujarat chief minister Vijay Rupani in a videoconference.
“There are also ongoing expansion investments of Rs. 5,000 crore to take Essar steel plant capacity to 8.6 million tonnes per annum,” he said.
ArcelorMittal and its partner Nippon Steel acquired Essar Steel by paying Rs. 50,000 crore in December 2019 following a favourable order by the Supreme Court in one of the biggest foreign direct investments in the steel industry.
Besides the integrated plant in Hazira, Essar Steel also has a 6-mtpa pellet plant in Paradip.
During the interaction with Rupani, Mittal also said ArcelorMittal Nippon Steel India (AMNS) has returned to 100% capacity.
When the country imposed a nationwide lockdown to contain the spread of novel coronavirus on March 25, all major steel companies had suspended operations or were running at lower than 30% capacity.
Pitching for opening the economy on a full scale, Mittal said continuity of operations is important and more so in the current context for all stakeholders: employees, associates, community, and the government.
“AMNS is a port-based steel plant in India, thus captive port’s uninterrupted operations are essential,” he said.
Mittal said the single window support provided through the Gujarat CM’s office has been effective.
Rupani said his government will continue to welcome investments and create a favourable ecosystem for ensuring the competitiveness of the manufacturing industry, including micro, small and medium enterprises (MSMEs).
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