Shyam Metalics Signs MoU for Rs 50,000 Crore Steel Plant in Maharashtra

Shyam Metalics & Energy Ltd has signed a Memorandum of Understanding (MoU) with the Maharashtra government to set up a massive integrated steel complex in Chandrapur, with a proposed investment of Rs 50,000 crore.

The planned project will have a total steel-making capacity of 9 million tonnes per annum (MTPA) and is expected to become one of the biggest single industrial investments proposed in the Vidarbha region.

The project is aimed at strengthening Maharashtra’s manufacturing sector while also adding significantly to India’s domestic steel production capacity.

Key Numbers

• Rs 50,000 crore - Proposed investment
• 9 MTPA - Total planned steel capacity
• 30,000 jobs - Around 10,000 direct and 20,000 indirect jobs expected

The MoU was signed in Mumbai by P Anbalagan, Principal Secretary, Industries, Investment & Services, Maharashtra government, and Brij Bhushan Agarwal, Chairman and Managing Director of Shyam Metalics.

Steel Plant to Be Built in Two Phases

The greenfield steel complex will be developed in two phases.

The first phase will create 3.75 MTPA of finished steel capacity, while the second phase will add another 5.25 MTPA.

Shyam Metalics plans to build an integrated production chain at the site. This means the complex will cover almost the entire steel-making process, including pelletisation, sintering, coke making, ironmaking, steel melting, casting, rolling and finishing.

This integrated setup is expected to help the company manage different stages of production at one location.

Why Chandrapur?

The location has been selected because of its access to important raw materials and infrastructure.

The project will be close to iron ore reserves in Gadchiroli, coal deposits in the Chandrapur mining belt and supplies of limestone and dolomite, which are important materials for steel production.

The company also pointed to the region’s rail, road and power connectivity as key reasons for choosing Chandrapur for the project.

Thousands of Jobs Expected

The large-scale steel project is expected to create around 10,000 direct jobs and 20,000 indirect jobs.

Beyond employment, the project could also create new opportunities for local MSMEs, fabrication and engineering companies, transport operators and logistics businesses.

With a Rs 50,000 crore investment and a planned capacity of 9 MTPA, the Chandrapur project could become an important industrial development for Vidarbha and strengthen Maharashtra’s position in India’s growing manufacturing and steel sector.