ArcelorMittal Nippon Steel India Announces an Rs 60,000 Crore Phase-I capital investment
ArcelorMittal Nippon Steel (AM/NS) India announces an Rs 60,000 crore Phase-I capital investment to position itself as the first steelmaker in the country ready to meet the government’s upcoming green steel taxonomy. With its plans to increase production capacity, improve scrap processing, and enhance renewable energy usage, the company anticipates that 70 percent of its output will meet the three-star criteria established by the government’s new carbon emission intensity standards in December 2024, according to company officials.
The National Institute of Secondary Steel Technology (NISST) will serve as the primary agency for certifying the green steel manufactured by various producers. As per the government’s regulations for green steel, the emissions intensity must be below 2.2 tonnes for every tonne of finished steel. Steel that complies with these standards will receive ratings of three, four, or five stars, with five stars indicating the highest level of environmental friendliness.
AM/NS India's management stated that their strategy includes expanding its steel production capacity at the Hazira plant in Gujarat from the current 9 million tonnes per annum (MTPA) to approximately 15 MTPA, in addition to enhancing scrap production facilities and establishing three new ones across India. The company already operates a scrap production facility located in Khopoli, Maharashtra.
In addition to ramping up production, management noted that the company will further invest in sustainable energy solutions, particularly through its renewable hybrid energy initiative in Kurnool, Andhra Pradesh, as well as by implementing optimization and efficiency improvements in its steel manufacturing processes. Overall, AM/NS India has revealed a Phase-I capital investment plan amounting to around Rs 60,000 crore.
“We have already developed our first scrap processing unit in Khopoli, and three others are under development. As the auto scrappage policy gains steam, more scrap will be generated, with India also importing scrap," says Ranjan Dhar, director and vice-president, sales and marketing, AM/NS India.
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The construction sector is also expected to contribute to scrap generation. As the per-capita consumption of steel increases, we expect more scrap to be generated," adds Ranjan.