Essar to set up 3.2MT steel plant in Bastar

Essar Steel in on expansion spree. Within weeks of announcing a 4 million tonne steel plant in Orissa, the group has drawn up plans to set up a 3.5 million tonne (MT) plant in Chhattisgarh at an investment of up to Rs 4,000 crore.

Essar Global, an arm of Ruia's Essar Group, will sign the memorandum of understanding with the chhattisgarh government tomorrow, company sources said.

The plant would be set up in Bastar district in two phases of 1.6 million tonne each and the final project proposal would be submitted to the Raman Singh government within three months of the signing of the MoU, sources said.

The company has been assured of full quantity of iron ore from the Bastar region known for its quality iron ore, they said.

According to sources, the project would be put on the fast-track and the state government has assured that it would be dealt on a priority  basis.

It may be recalled that tata steel had already clinched a deal with the Chhattisgarh government for setting up a 5 MT integrated greenfield steel plant in the state.

Essar has a 3.3 million tonne steel plant in Hazira, where the capacity would be expanded to 4.5 million tonnes by next year.