ArcelorMittal Nippon Steel India, a joint venture between ArcelorMittal and Nippon Steel established in December 2019 after acquiring Essar Steel, has planned to set up a 12 million tonne per annum steel plant in Kendrapara, Odisha. This plan may not fructify it seems, according to knowledgeable sources. Land acquisition is proving a big issue. Since March 2021, the Odisha government has been moving at a snail’s pace over land acquisition compared to Andhra Pradesh Chief Minister Chandrababu Naidu’s proactive approach.
The JV shifted its steel investment to neighbouring Andhra Pradesh as it feels very confident in the leadership of the chief minister Naidu who is part of the NDA dispensation. It is learnt that Naidu’s son and IT Minister Nara Lokesh played a pivotal role in persuading Aditya Mittal, Lakshmi Mittal’s son, to move the steel plant to Andhra Pradesh. His constant follow-up with Aditya by guaranteeing him quick land allotment and special status seems to have tilted in Andhra’s favour.
The JV firm was forced to take this decision as nothing moved from 2021 between BJD and the current BJP government. The joint venture firm is initially establishing 7.3 MTPA steel plant in Anakapalli district, Andhra Pradesh, as part of its plans to set up a state-of-the-art integrated steel plant in Rajayyapeta involving an investment of Rs 147,162 crore (Rs 61,780 crore in phase I and Rs 85,382 crore in phase II). Earlier, Sajjan Jindal group JSW’s electric vehicle also shifted out of Odisha to Maharashtra. (Sanram Mohanty with special arrangement with www.shortpost.in)
