L N Mittal, the Indian-origin promoter of Luxembourg-based Arcelor Mittal Group, met Prime Minister Narendra Modi during his visit to the Statue of Unity at Kevadia in Gujarat. He also met chief minister Vijay Rupani in Ahmedabad. State government officials present in the meeting said the steel company, which took over Essar Steel plant in Hazira some time ago, intends to double the production capacity of its plant in Gujarat besides making fresh investments in the state. The group has pledged fresh investment in Gujarat between £4.5 to 6.5 billion.
Manoj Das, additional chief secretary (ACS) at chief minister’s office (CMO, who accompanied Rupani during the meeting with Mittal said, “L N Mittal apprised the CM about the group’s plan to double its production capacity in Gujarat and make fresh investments in specialized steel.”
“The group said that its fresh investment will be between £4.5 to 6.5 billion. We have assured them the best support in realising the business plan and providing incentives under our new industrial policy. In the last two years alone, FDI inflow in Gujarat has increased manifold. Mittal bringing in fresh FDI into Gujarat will further give a boost to the state’s development,” Das added.
Mittal visited the Statue of Unity (SoU) at Kevadia and other development projects before meeting the PM and CM. The state government also invited Mittal to the next Vibrant Gujarat summit, briefing him about the business opportunities in the state.
Signs MoU with Odisha for steel plant
Meanwhile, the group has revived plans to build a steel plant in the iron ore-rich Odisha state as he doubles down on his bet on India. Mittal, through his India joint venture company Arcelor Mittal Nippon Steel, plans to set up a 12-million-ton capacity plant in Odisha’s Kendrapara district. This would entail an investment of £5 billion.
In 2006, Mittal had planned to set up a similar capacity sized plant in Odisha, but later dropped the proposal because of problems in acquiring land and securing iron ore linkages. Iron ore is a key raw material in steel production. Mittal and Odisha chief minister Naveen Patnaik signed an MoU for the plant last week. In a tweet, the chief minister’s office said the deal will give a boost to the government’s #InvestInOdisha campaign. The £5 billion investment in Odisha will be in addition to the JV company’s other investments in the state.
The company will be investing £200 million to double its pellet making capacity in Paradip to 12 million tons. The company has a benefaction complex and slurry pipeline projects already operational in Keonjhar. The India JV combines the financial might of Mittal’s global steel company Arcelor Mittal and the technological prowess of Japanese giant Nippon Steel.
