Vedanta to Invest USD 300 million to Expand Electrosteel Steel’s Capacity in Jharkhand

According to the latest reports, mining major, Vedanta that has acquired Electrosteel Steel Ltd (ESL) in April this year is set to invest USD 300 million (INR 2,100 crore) to expand its capacity from existing 1.5 MnT to 2.5 MnT which is expected to be completed over next two years.

Along with this, the company is also looking into the ‘feasibility’ of setting up an additional 4.5 MnT steel plant, which is likely to be partly brownfield and partly greenfield. Vedanta’s top management said that ESL has about 2,200 acres of land at the existing facility in Bokaro, Jharkhand and only little more will be required to acquire for setting up of the plant. The investment amount for this 4.5 MnT plant is likely to be to the tune of USD 3-4 billion (approximately INR 30,000 crore).

The company’s management is hoping that requisite clearances for this project will be about 6-8 months and it would take three to four years to fructify. Vedanta is in talks with Korean, Japanese and Chinese firms for technology and machinery for its proposed expansion.

The total capacity of ESL after these two plans are implemented will be around 7.5 MnT.
In April 2018, Vedanta had acquired 90% stake in Electrosteel Steels under the resolution process at INR 5,320 crore.

India’s largest iron ore producer and maker of various non-ferrous metals such as aluminum and zinc, Vedanta had in 2011 acquired the assets of Bellary Steel and Alloys in Karnataka for INR 220 crore through a competitive bidding process. Now the company is mulling a 5 MnT steel at Bellary plant which may entail another investment of INR 30,000 crore.

For more than five decades Vedanta has been engaged in exploration, mining, and processing of iron ore. The company’s operations are based predominantly in Goa, Odisha, Rajasthan, Chhattisgarh, Tamil Nadu, Karnataka, Punjab Gujarat, and Andhra Pradesh.