Reliance plans to set up steel plant in Jharkhand

Ranchi: Reliance Anil Dhirubhai Ambani Group (ADAG) has proposed to set up a 12 million-tonne per annum steel plant in Jharkhand, a top official in the state government said.

'They (ADAG) have approached us to set up a 12 MTPA steel project. We have their proposal, the process is on,' said Jharkhand industrial secretary, Mr K.K. Khandelwal.

The group company, Reliance Infrastructure, will undertake the greenfield project and is expected to invest around Rs 40,000 crore in the venture, sources closed to the development said.

ADAG group company’s decision to foray into steel comes in the backdrop of world’s largest producer ArcelorMittal’s finalising plans to set up an integrated plant in the state with the same capacity.

When asked if an agreement between the Ambani Group company and the government could be reached soon, Mr Khandelwal said, 'The process is on. We are looking into it.'

Meanwhile, Reliance Infr-astructure is eyeing engineering, procurement and construction projects worth Rs 15,000 crore from steel PSUs in the next 2-3 years and is already in talks with companies like Sail and NMDC.

'We see around Rs 50,000 crore projects from steel PSUs coming in next 2-3 years and expect to tap about 30 per cent of these projects,' a top Reliance Infrastructure executive said over telephone from Mumbai.

The company is already in talks with companies like SAIL and NMDC and would look at private companies as well at a later stage, the executive said on conditions of anonymity.

Under an EPC contract, a company undertakes to build projects of another entity but has no right over the asset.

Reliance Infra, which already has presence in power and roads among other infrastructure segments, last month entered into an agreement with China’s leading equipment manufacturer China Metallurgical Group Corporation to undertake steel projects on EPC contract basis.

'We expect to have an order book of Rs 15,000 crores of projects in coming 2-3 years,' he added.

Steel PSUs are on a expansion spree with SAIL setting up a 12 MTPA steel plant and NMDC coming up with an integrated 3-MTPA steel unit in Jharkhand.