Shyam Metalics Plans ₹50,000 Cr Steel Complex in Chandrapur
Shyam Metalics & Energy Ltd. (SMEL), an Indian steel and metal manufacturer, has signed a Memorandum of Understanding (MoU) with Government of Maharashtra to establish a steel manufacturing facility in Chandrapur, Maharashtra. This project will be developed with an estimated investment of Rs. 50,000 crore.
Close Proximity to Raw Material Provides Edge
The Chandrapur greenfield complex will have a capacity of 9 Million Metric Tonnes Per Annum (MMTPA). The complex will be developed in two phases, where Phase-I will have a capacity of 3.75 MMTPA finished steel. Development of Phase-II will further add 5.25 MMTPA in finished steel capacity.
This site’s location provides a strategic advantage through its proximity to iron ore reserves in Gadchiroli and coal deposits across the Chandrapur mining belt. Also, this site will provide access to essential minerals such as limestone and dolomite. Moreover, these nearby reserves are well connected by rail, road, and power infrastructure.
“Chandrapur’s unique mineral wealth and strategic connectivity provide the ideal foundation for
building a world-class, integrated steel manufacturing hub… We shall commence with obtaining the necessary permissions, registrations, approvals, and clearances in FY 2026-27”, said Mr. Brij Bhushan Agarwal, Chairman & Managing Director (CMD), Shyam Metalics.
Chandrapur will be an Integrated Steel Plant
This integrated complex will be designed to undertake entire steel production, starting from raw material conversion through pelletisation, sintering, and coke making. Further, the plant will facilitate iron-making via blast furnace and direct reduced iron processes, followed by steel melting, continuous casting, and downstream rolling and finished steel.
Further, this plant will be equipped to design steel for applications across infrastructure, construction, automotive, railways, renewable energy, oil and gas, and heavy engineering business verticals.
Chandrapur Steel Plant will Deploy Clean Technologies
Chandrapur complex will deploy clean technologies for sustainability and energy-efficient operations. These technologies include coke dry quenching, which helps in water conservation as it uses gas alternatives (Nitrogen gas) and traps thermal energy. This thermal energy will be funnelled to the Waste Heat Recovery System to generate power by producing high-pressure steam and directing it to turbines.
Emphasising the project‘s sustainability designs, Mr. Agarwal said, “We are building an ultra-modern facility anchored in cutting-edge circular technology, resource efficiency, and green practices.”
Chandrapur Steel Project will Boost Employment in Vidarbha
The Vidarbha region lags significantly behind the rest of Maharashtra in per capita income and gross domestic product (GDP) share, with much of the regional wealth concentration limited to Nagpur. Despite being rich in natural resources, including a large share of Maharashtra’s mineral and coal deposits, and even generating a major portion of the state’s power supply, Vidharbha’s local population has historically faced developmental backlogs.
As per the company, this undertaking will provide substantial gains to micro, small, and medium enterprises (MSMEs), fabrication units, engineering workshops, and transport and logistics providers across the Vidarbha region.
The complex is projected to generate approximately 10,000 direct jobs and 20,000 indirect employment opportunities.
About Shyam Metalics & Energy Ltd. (SMEL): SMEL, an Indian steel and metal manufacturer, headquartered in Kolkata, has a diversified portfolio spanning carbon steel, stainless steel, ferro alloys, aluminium foil, and long steel products.
