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FILE PHOTO: A logo is seen on the roof of the ArcelorMittal steelworks headquarters in Ostrava, Czech Republic, April 1, 2016. REUTERS/David W Cerny/File Photo
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DAVID W CERNY
ArcelorMittal Nippon Steel India (AMNS India) – a joint venture between world’s largest steel-maker ArcelorMittal and Japan’s Nippon Steel – is going slow on its once announced 24 million tonnes per annum (mtpa) mega steel project in Odisha, following delays in land acquisition and other administrative issues, sources in the know told businessline. Instead, the steel-maker is tapping into the neighbouring State of Andhra Pradesh where a greenfield 7.3 mtpa plant is expected, at an investment of ₹55,964 crore, by January 2029.
Nara Lokesh, AP’s Minister for HRD, IT, Electronics, Chairman of Group of Ministers on job creation, told businessline that provisional land allotment was done in a “record span of four months, from commencing engagement”. He pointed out that sops will also be rolled out under the State’s new industrial policies.
“We are excited to have AMNS as our largest private investor in the steel sector. We have already provided provisional land allotment in a record span of 4 months from commencing engagement. We will be rolling out incentives and benefits under our new industrial policies and ensure that the project is commissioned at the earliest,” he said.
ArcelorMittal, in its global investor deck, mentioned that the proposed Andhra project as a “greenfield” one. It outlines the linkages between the upcoming project, proposed port berths, raw material sourcing plans and linking all of this to the ongoing expansion plans at Hazira, Gujarat.
On Odisha, it mentions, rehabilitation and re-settlement is in progress. Land preparation to be done for future integrated steel plant. EBITDA from Indian JV was down $95 million sequentially, over Q4FY24.
AMNS India in a statement said it is continuously pursuing growth opportunities nationwide, deepening its footprint and driving infrastructure development for the country. “In Odisha where the company already has a significant presence, plans are underway to set up an integrated steel plant,” the statement said.
The Indian JV had, in March 2021, signed a MoU with the then Naveen Pattnaik-led Odisha State government committing an investment of nearly ₹50,000 crore. The delay in obtaining land had led to a political slugfest between the then BJP and BJD there.
In December 2024, the Odisha government had issued a notification under Section 8 (2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 to acquire 383 acre of land at Badatubi village in the first phase for AMNS India to establish a 24 mtpa state-of-the-art steel plant at a cost of ₹1.02 lakh crore. (businessline reviewed a copy.)
Verification work for land rights there is sill underway, sources in the know said.
ANDHRA WORK SPEEDS UP
In comparison, work has relatively picked up in Andhra. The State government had handed over land to AMNS and in May, the company had announced that commenced land acquisition process there.
As per the Industries Department of Andhra Pradesh, Phase 1 of the proposed steel plant will generate an employment of 20,000 and need nearly 2,200 acres of land (including for a township covering 440 acres).The Phase 2, will see the capacities go up to 10.5 mtpa, and investments proposed being ₹80,000 crore with land requirement being 3,800 acres (in total). And completion is expected by 2033.
During an investor call earlier this month, Genuino Christino, CFO, ArcelorMittal, said the project (Andhra) is in early stages with land acquisition underway.
“We are working closely with the government for environmental licences. The site choice is strategic due to proximity to customers and access to iron ore,” he said. Incidentally, only the Andhra project was referred to in the investor call.
PORT BERTHS
AMNS India has also proposed setting up captive port berths — 2 for bulk material and 3 multipurpose ones — at an investment of ₹5,816 crore by January 2029; as per documents seen by businessline.
The second phase of this expansion will see total numbers go up to 4 for bulk material handling berths, 6 multi-purpose ones, and two for energy; with proposed investment being another ₹5,382 crore and due for completion by 2033.
Phase 1 will have a capacity of 20.5 mtpa and post phase 2, capacities will move up to 28.99 mtpa.
HAZIRA PLANT
Parallel expansion activities at Hazira in Gujarat is also underway. Phase 1 Hazira expansion to 15 mtpa by end 2026 is on track
Downstream expansion advancing at pace, the company said in its investor deck adding that “Phase 1 expected to boost normalizsed EBITDA & investable cash flow2 by 2.5x (to ~$2.5 billion and $1.7 billion).”
Published on June 2, 2025
This article first appeared on The Hindu Business Line
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