In May 2015, SAIL (Steel Authority of India Limited) and ArcelorMittal (AM) had entered into a memorandum of understanding (MoU) to explore the possibility of setting up an auto-grade steel manufacturing facility under a joint venture (JV) in India.
The proposed JV is likely to construct a cold rolling mill and other downstream finishing facilities in India, touted as one of the fastest-growing automotive markets in the world with the production expected to double between 2014 and 2020, from 3.6 million units to 7.3 million units.
Now according to the market reports, the Odisha government has invited this SAIL-Arcelor Mittal JV to set up their steel unit in the state citing ample availability of land for setting up of the plant.
In response to the Odisha government’s request, SAIL has given positive feedback stating that they would keep the eastern state in mind while zeroing in on the location for the proposed steel plant. SAIL already has a steel plant in Rourkela, Odisha with 4.5 MnT of hot metal and 4.2 MnT of crude steel per annum capacity.
Odisha aims to become steel hub of India in coming years
Odisha which is already a mineral-rich state is aspiring to become a manufacturing hub in India with downstream metal industries. The state plans to have incremental steel capacity of 56 MnT in next few years taking its overall production level to 100 MnT by 2030. This may have been one of the key reasons that the state’s government has invited SAIL-AM joint venture.
The steel industry in Odisha has seen as many as 45 firms sign MoU (Memorandum of Understanding) with the state government for steel projects and 33 other companies are working on steel plants.
According to a state official, Sajjan Jindal-led JSW Steel has also given a proposal for the land given up by Korean steel giant Posco, for setting up a steel plant and the Odisha government is clearing the file for allocation of the land. The recommendation has gone to IDCO (Odisha Industrial Infrastructure Development Corporation) which will be allotting the land.
The market reports suggest that the state has about 1.21 lakh acres of land bank for industrial development.
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