- Greenfield plant revives long-delayed Gadchiroli steel vision
- Iron ore proximity anchors investment decision
Nagpur-based Jayaswal Neco Industries Limited (JNIL) has revived its long-pending plan to set up a 2 million tonnes (mnt) per annum (mnt/year) integrated steel plant in Gadchiroli, Maharashtra, nearly three decades after shelving the proposal due to security concerns. The company signed a memorandum of understanding with the state government during the World Economic Forum meet in Davos last month, committing an investment of INR 12,200 crore.
Raw material linkage strengthens project viability
Availability of iron ore in the district remains a key driver behind the greenfield project. JNIL, which already operates a 1 mnt/year steel plant in Raipur and is engaged in iron ore mining, aims to leverage proximity to ore blocks to optimise logistics and conversion costs. The company’s management highlighted that producing one tonne of steel requires 1.6–1.7 t of iron ore, making source-location alignment critical for margin stability.
The improving industrial climate in Gadchiroli, along with large-scale proposals from other steelmakers, has strengthened confidence in long-term viability. The company indicated it is also open to bidding for additional mining blocks to secure raw material continuity.
Demand growth underpins expansion
JNIL expects domestic steel demand to outpace GDP growth by around 2%, supported by infrastructure expansion and industrial development. With India targeting 300 mnt crude steel capacity by 2030, the company sees adequate headroom for new entrants and capacity additions.
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