Stocks News

AM/NS India bags a deal worth Rs $6.9 billion with Odisha government

ArcelorMittal Nippon Steel India and the Odisha government signed a MoU on Thursday for setting up a 12 million tonne integrated steel plant.

Moreover, the investment to set up a steel plant in the mineral-rich eastern Indian state is worth $6.9 billion.

Further, Hemant Sharma, principal secretary (industries) and Dilip Oommen, chief executive officer (CEO), AM/NS India signed the MoU.

However, AM/NSIndia’s investments in Odisha include the 6 mtpa pelletization plant in Paradeep.

The aim is to expand it to 12 mtpa besides the beneficiation complex in Keonjhar and slurry pipeline.

In fact, the MoU for the Odisha plant comes shortly after AM/NS India completed a year of operations.

Meanwhile, steel prices accelerated in Europe, surging to a 10-year high in China which lead to increased earnings for steel makers.

The shares of ArceloMittal have increased more than three times compared to 2020 after hitting bottom in March last year.

In 2006, ArcelorMittal had signed a MoU for a 12 million tonne plant in Odisha.

It however did not materialise and the company pulled out in 2013 after a long wait.

Arcelor had also signed a MoU in Jharkhand for a 12 million tonne in 2005 which didn’t take off either.

A six-million tonne plant in Karnataka, for which the steel major signed a MoU in 2010 didn’t work out too.

Currently, AM/NS India is making a fresh attempt at Greenfield project.

Moving forward, the Union government is aiming to foster investment in sectors like housing, roads, ports and railways.

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