Shyam Metalics has signed a non-binding MoU with the Maharashtra government to develop a ₹50,000 crore steel plant in Chandrapur with a planned capacity of 9 MTPA.
Shyam Metalics has signed a non-binding Memorandum of Understanding (MoU) with the Maharashtra government for a ₹50,000 crore steel plant in Chandrapur. The proposed project will have a total capacity of 9 million tonnes per annum (MTPA).
As the MoU is non-binding, the project remains subject to approvals, statutory clearances and incentives from the Maharashtra government. The company has started the process of seeking the required approvals and support.
Shyam Metalics Steel Plant to Come Up in Two Phases
The proposed steel plant will be developed in two phases.
The first phase will have a finished steel production capacity of 3.75 million tonnes per annum. The second phase will add another 5.25 million tonnes per annum.
The integrated facility will be developed on a single site. It will cover key stages of steel production, including raw material processing, melting, casting and rolling.
Shyam Metalics expects the steel output to serve sectors such as construction, railways, automobiles, oil and gas.
Raw Materials and Infrastructure Support
The proposed project will benefit from the availability of key raw materials in the region. Iron ore is expected to be sourced from Gadchiroli, while coal will come from the Chandrapur mining belt.
The region also has access to limestone and dolomite. The proposed site is supported by rail, road and power connectivity.
Project to Generate 30,000 Jobs
The project is expected to generate around 30,000 jobs. This includes approximately 10,000 direct jobs and 20,000 indirect jobs.
The company also expects the project to support suppliers, fabrication units and transportation companies across Vidarbha.
Shyam Metalics Plans Sustainable Steel Production
Shyam Metalics plans to incorporate several resource-efficiency measures at the proposed facility.
The company plans to recover waste heat for power generation. It also intends to use dry coke cooling technology to reduce water consumption.
The facility will further use a closed-loop system to treat and reuse water, supporting more efficient resource management.
Company Expands Steel and Metals Footprint
In its exchange filing, Shyam Metalics said the Maharashtra government is not a related party to the transaction. It also stated that no promoter or key managerial personnel has any interest in the deal.
The proposed Chandrapur project adds to the company’s expansion plans in Odisha, West Bengal and Jharkhand.
According to sources, Shyam Metalics has also outlined capital expenditure of around ₹10,000 crore over the next three to four years across carbon steel, stainless steel and aluminium.
The company is targeting revenue of more than ₹42,000 crore by 2031.
However, final incentive terms and state-level approvals for the Chandrapur project are still pending.
