Arcelor Mittal Nippon Steel to invest Rs 1,000 crore in AP plant

AMARAVATI: Andhra Pradesh has clinched another big deal with steel baron Aditya Mittal of Arcelor Mittal has agreed to invest Rs 1000 crore in Nippon Steel in the state.
Aditya Mittal decided to expand the operations of AP plant following discussions with the chief minister YS Jagan Mohan Reddy in Davos on Tuesday.
“Arcelor Mittal/Nippon Steel India will expand its network in Andhra Pradesh with Rs.1,000 crore additional investment.It will make additional monies towards expansion of its brownfield Vizag pellet plant in Andhra Pradesh,” said the state government in a statement.
The planned expansion will increase pellet production capacity at Vizag by 35%, from 8 MTPA to 11 MTPA.
Nippon Steel Vizag pellet plant is already connected to a slurry pipeline in Chhattisgarh, which ensures a clean and efficient method of transportation of raw materials required for pelletization from source to plant.
Arcelor Mittal-Nippon Steel India intends to complete the expansion project in 2023, subject to receiving environmental clearance in the coming months. This investment follows a recent announcement by ArcelorMittal, a parent company of AM/NS India, to develop a ‘round the clock’ renewable energy project with 975 MW of nominal capacity, also in the state of Andhra Pradesh.
The project, involving investment of more than Rs. 4,600 crore will combine solar and wind power and be supported by Greenko’s hydro pumped storage project, which helps to overcome the intermittent nature of wind and solar power generation.
Round The Clock power of 250MW will result in over 20% of the electricity requirement at AM/NS India’s Hazira plant coming from renewable sources, reducing carbon emissions by approximately 1.5 million tonnes per year.
Commenting after a meeting with Aditya Mittal, CEO of ArcelorMittal and Chairman of AM/ NS India, Chief minister Jagan Mohan Reddy said, “We welcome these significant investments by ArcelorMittal and AM/NS India to Andhra Pradesh, which reinforce the state’s leadership in attracting pioneering manufacturing and renewables projects that will not only support India’s steel making growth ambitions, but also assist the country’s efforts to advance industrial decarbonisation.”