Steel giant ArcelorMittal/ Nippon Steel - AM/NS India on Friday started work for expansion of its Hazira steel facility to take the crude steel production capacity from the current 9 million tonnes per annum (MTPA) to 15 MTPA.
The company will invest ₹60,000 crore for the expansion, in addition to the ₹90,000 crore it has already invested after the acquisition from Essar Group in past three years. The steel made at the Hazira plant will be used for the ambitious Mumbai-Ahmedabad bullet train project, the officials informed.
Prime Minister Narendra Modi virtually addressed the gathering at the ground-breaking ceremony laying stress on building indegenous capabilities for high-grade steel products.
Value addition
"Till now we were satisfied by exporting iron ore. But for the economic development, we had to do value-addition of our mineral resources. In the global market, Indian steel is making its own positioning. It is not just about expansion at Hazira, they are also bringing new technology that will help in EVs, automobiles and other manufacturing sectors," Modi said, adding the AM/NS India's Hazira project will be a milestone for Make in India mission.
He stated that the world looks at India with much hope and India is fast moving in the direction to become world's manufacturing hub and that the Centre is attempting to create enabling policy environment for the steel sector.
Strengthen capabilities
"Earlier we were dependent on other countries to source steel to make aircraft carriers in the country. We had to rely on readiness of other countries to strengthen our country's defence capabilities. This wasn't good. We had to be self-reliant to change this situation," said Modi laying stress on Atmanirbharta in steel manufacturing.
We aim to double the crude steel capacity in the country from the current 154 tonnes to about 300 tonnes in next 9-10 years, he said.
ArcelorMittal Group Chairman, Lakshmi Mittal stated that while the ₹60,000 crore investment is earmarked for the phase of expansion, there will be more investment plans going further. The expansion at Hazira will provide employment to about 60,000 people.
New opportunities
Aditya Mittal, Chairman of AM/NS INDIA, informed that the Hazira site expansion would create new opportunities and value for the people and Gujarat. "In pursuing this ambitious goal, we are squarely aligning with India's national steel policy — in terms of technologies and highly demanding products. We plan to expand our specialty steel portfolio and focus on segments such as auto, transport and renewable," he said.
Mittal further stated the company would harness the power of its R&D capabilities and bring technologies in steel production that have not existed in India. "We are going to make products in India that have never been made in the country. A very good example of this is high quality steel - Magnelis. That will be used for the new bullet train project. The first train is expected to run on 50 km section between Surat and Biimora in 2026 and our steel will be on that train," said Mittal.
Union Minister for Steel Jyotiraditya Scindia and officials from Japanese counterpart Nippon Steel joined virtually, while Gujarat Chief Minister Bhupendra Patel and State officials attended the ground-breaking at Hazira in person.