Shyam Metalics signed a non-binding MoU with Maharashtra for a Rs 50,000 cr, 9 MTPA steel plant in Chandrapur.

Because the MoU is non-binding, the plant is still a plan. The company has started seeking approvals, clearances and incentives from the state, and the project moves ahead only if those come through.

It will be built in two phases. The first will make 3.75 million tonnes of finished steel a year. The second will add 5.25 million tonnes.

Everything will happen on a single site, from converting raw materials to melting, casting and rolling the steel.

The company says the output is aimed at construction, railways, carmakers and the oil and gas industry.

Iron ore comes from Gadchiroli, coal from the Chandrapur mining belt, and the region also has limestone and dolomite. The site is well connected by rail, road and power.

The company expects around 30,000 jobs, of which 10,000 would be direct and 20,000 indirect.

It also expects suppliers, fabrication units and transport firms in Vidarbha to gain from the plant.

On the environment side, Shyam Metalics plans to recover waste heat to generate power, use a dry method to cool coke and save water, and treat and reuse water in a closed loop.

In its exchange filing, the company said the Maharashtra government is not a related party. No promoter or key manager holds any interest in the deal.

The Chandrapur plan adds to expansion the firm announced earlier in Odisha, West Bengal and Jharkhand.

According to sources, it has also outlined about Rs 10,000 crore of capital spending over three to four years across carbon steel, stainless steel and aluminium, and targets revenue above Rs 42,000 crore by 2031.

Final incentive terms and state approvals are still pending.

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