Aaress Iron and Steel to Invest Rs. 19,600 Cr. in Karnataka
Aaress Iron and Steel Limited (AISL), a subsidiary of MSPL Limited (Baldota Group’s flagship company) has signed two Memoranda of Understanding (MoUs) with the Karnataka Government, entailing an investment of about Rs. 19,600 crore in the state.
Aaress Iron Will Invest in Integrated Steel Plant & Iron Ore Processing
Aaress’ Rs. 18,000 Cr. Greenfield Steel Plant to Come up in Koppal
Aaress Iron and Steel will be investing about Rs. 18,000 crore to develop an integrated steel plant in Halavarthi village in the Koppal district of Karnataka. This plant will have a capacity of 3.5 Million Metric Tonnes Per Annum (MMTPA).
AISL’s integrated steel plant will consist of a coke oven plant, sinter plant and blast furnace for Iron making. Additionally, Energy Optimising Furnaces (EOF), Ladle Furnace (LF) & Vacuum Degassing (VD) units for steel making will also be included in AISL’s facility. For producing long products, bloom and billet casters, bar and wire rod rolling mills will be deployed at the AISL plant.
The company has already acquired 1,093 acre of land for this steel plant and will be acquiring an additional 933 acres. AISL has received environmental clearance for this project, and it has been issued water drawing sanctions for the same.
This steel plant is expected to generate about 10,000 direct and indirect employment opportunities.
AISL to Invest Rs. 1,600 Cr. in Iron Ore Processing Units
AISL will be developing an Iron Ore pelletisation plant of 3 MMTPA capacity, and an Iron Ore beneficiation plant of 5 MMTPA capacity with an investment of Rs. 1,600 crore. Other than the MoU for the aforementioned integrated steel plant, a separate MoU was signed by AISL with the Karnataka Government for this project. These plants will be developed in Somlapur village, Sandur taluk of Karnataka’s Ballary district.
These plants will create about 1,000 employment opportunities.
AISL’s Investment Supports the Indian Vision for Iron and Steel Industry
Indian Government’s National Steel Policy targets a crude steel production target of 300 MMTPA by 2030-31. As of April 2022, India was the second-largest producer of crude steel in the world after China, with a production capacity of 133.6 MMTPA.
AISL’s investment in Karnataka is important as it will help India attain its steel production targets. Baldota Group has stated that pelletisation, sintering and Iron Ore beneficiation processes have been responsible for the steady growth of the Iron and Steel Industry in China despite depletion of high-grade Iron Ore mines. These processes help increase the yield of steel by concentrating the raw material that goes into the blast furnace. Therefore, the company’s pelletisation and beneficiation plants will enhance the efficiency of its steel production process.
About Baldota Group: Vijayanagar-based Baldota Group was established in 1961. The group has business spanning the mining, pelletisation, wind power, aviation, shipping, chemicals and gases sectors.