Russian firm Novolipstek Steel (NLMK) will invest Rs 6,800 crore in two phases by 2022 in Maharashtra, where it wants to set up its maiden plant, the state government said on Thursday.
The Maharashtra government will extend all required cooperation to the Russian steel company to set up facilities in the state, said Chief Minister Devendra Fadnavis.
The senior directors of the leading steel company of Russia called on the Chief Minister at his official residence Varsha in south Mumbai.
During the meeting, Mr Fadnavis assured them all cooperation from the government.
A statement from the Chief Minister's Office (CMO) said NLMK, famous globally for their electric steel production, and has evinced interest to set up their maiden project in Maharashtra.
The company has been allotted a plot in Aurangabads DMIC (Delhi-Mumbai Industrial Corridor) Shendra or Bidkin and the government has given its consent to hand over this land to them, the release said.
In the first phase, there will be an investment of Rs 800 crore. The second phase will begin in 2022 which would envisage an investment of Rs 6,000 crore, it said.
NLMK is investing Rs 800 crore in Auranagabad DMIC in the first phase and will expand it further with Rs 6,000 crore investment by 2022, CMO said in a tweet.
This project will be in Aurangabads Auric (Aurangabad Industrial City).
The company is expected to boost investment in the state which would create more job opportunities. Therefore, the government would extend all possible cooperation to the company at all levels, the Chief Minister assured.
The demand for electricity is increasing in the last 30 years in India. Because of this, the demand for electric sub-stations has also increased by 30 times, the release said.
NMLK makes special kind of steel required for electricity conduction and transformers.
At present, NMLK is supplying 20 per cent transformer steel. Once the company starts production in Maharashtra, this steel will be available within the country, the Russian firm's representatives said while making a presentation.
AURIC, located around 335 km from here in Central Maharashtra, is a planned and greenfield smart industrial city being developed across 10,000 acres as part of the DMIC.
NLMK, manufacturer of high-quality steel products, last year had evinced interest on investing Rs 1,000 crore for setting up a unit at AURIC-Shendra.
Representatives of NLMK Group met government representatives last year and showed willingness to invest Rs 1,000 crore at AURIC-Shendra.
They have sought permission to carry out feasibility testing for setting up their plant, an official said, adding the company's plan is to set up the facility on 75 acres.
Meanwhile, Mr Fadnavis also met Ken West, Vice-President and General Manager of Honeywell, and other delegates from the company to discuss investment and expansion plans, preferably in Vidarbha.