Hyderabad: Steelmaker ArcelorMittal Nippon Steel India has confirmed an investment of Rs 1,000 crore in its Vizag pellet facility as part of its brownfield expansion in Andhra Pradesh. Following discussions with Chief Minister YS Jagan Mohan Reddy in Davos on Tuesday, the CEO of ArcelorMittal, Aditya Mittal, decided to expand the operations of the AP plant.
Due to the planned expansion, Vizag's pellet production capacity will grow by 35%, from 8 to 11 MTPA, as per reports. AM/NS India’s Vizag pellet plant is already connected to a slurry pipeline in Chhattisgarh, which ensures a clean and efficient transportation of raw materials required for pelletization from source to plant. ArcelorMittal Nippon Steel India intends to finish the expansion project in 2023, on getting the environmental approval in the next few months.
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ArcelorMittal, the parent company of ArcelorMittal Nippon Steel India, had recently announced its plans to create a 'round-the-clock' renewable energy facility in Andhra Pradesh with a notional capacity of 975 MW. The Rs 4,600 crore project would combine solar and wind power and will be backed by Greenko's hydro pumped storage project, which helps to offset the intermittent nature of wind and solar power generation.
According to a release, Andhra Pradesh CM YS Jagan said, “We welcome these significant investments by ArcelorMittal and AM/NS India to Andhra Pradesh, which reinforce the state’s leadership in attracting pioneer 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.”