ArcelorMittal has revived its earlier plan to set up a 12-mtpa, mega, steel plant in Odisha with an investment of more than Rs 50,000 crore. The Odisha government and ArcelorMittal Nippon Steel India (AM/NS) on Thursday signed an MoU for setting up the integrated steel complex in Mahakalapada area of Kendrapara district in the presence of Chief Minister Naveen Patnaik and Executive Chairman of AM/NS L N Mittal in Bhubaneswar.

Earlier in the day, Mr Mittal met the chief minister at Naveen Niwas to discuss steel sector development in Odisha and the proposed project. Describing Kendrapara as the “Karma Bhumi” of his late father Biju Patnaik, the chief minister said that the place provides ideal prospects for an integrated steel complex. He announced that the government would provide all the required support and facilitation for setting up the mega project.

This investment will be in addition to other investments of AM/NS in Odisha, including a 6-mtpa pelletisation plant in Paradip which will be expanded to 12 mtpa, a beneficiation complex in Keonjhar and a slurry pipeline which is already operational. Mr Mittal reiterated that AM/NS is committed to partner with the Odisha government in industrial growth journey of the State.

Way back in 2006, ArcelorMittal had signed an MoU with the Odisha government to set up a similar capacity steel plant in Keonjhar district with an investment of Rs 40,000 crore. However, it abandoned the project in July 2013 due to its failure to get suitable land and necessary permits to mine iron ore, a key raw material for production of steel.