Mittal's Vision: Gujarat to host Biggest Steel Plant in the World

Gujarat is gearing up to host a game-changing marvel, the world's largest steel plant, declared by the visionary leader Lakshmi Niwas Mittal, Chairman and CEO of ArcelorMittal. This large-scale project is expected to have a major impact on the state's overall economic development and industrial expansion. 

With its colossal scale and global significance, the project is set to redefine the landscape of the steel market globally. In harmony with Gujarat's ambitious vision for industrial dominance and a thriving manufacturing sector, the proposed steel plant strategically capitalises on the state's conducive business environment, robust infrastructure, and logistical advantages, making Gujarat the exhilarating epicentre for this historic endeavour.

Mittal's Steel Legacy in Gujarat

Lakshmi Mittal revealed that ArcelorMittal Nippon Steel India (AM/NS India) is building the world's largest integrated steel plant in Gujarat's Hazira. As the executive chairman of ArcelorMittal, operating the joint venture (JV) with Japan's Nippon in India, Mittal said the plant would produce 24 million tonnes of crude steel and is expected to be functional by 2029. During the 10th Vibrant Gujarat Global Summit, Mittal also declared the signing of an agreement with the Gujarat government for the plant's second phase.

According to Mittal, work on the project's first phase, which started in 2021, is going on as scheduled and will be completed by 2026. He said Prime Minister Narendra Modi was there for the plant's "bhumi puja," or groundbreaking. He gave the impression that the corporation will be able to commission the project's second phase near Surat by 2029 with the help of the state government.

Gujarat's Steel Hub Is Booming

Gujarat's rapidly expanding steel sector is expected to ignite comprehensive regional growth. The economic prosperity linked to the steel plant has the potential to elevate living standards, fuel real estate growth, and strengthen social infrastructure. Gujarat's premier steel facility is an economic catalyst and promotes employment, industrial expansion, and technological progress. 

Its positive impacts stretch beyond the state, potentially substantially contributing to India's broader economic development. This growth may further boost regional connectivity, transportation networks, and energy infrastructure, delivering comprehensive and far-reaching improvements.

Steel soars by 2030

Through this project, it would significantly elevate India's pride on the global stage. The demand for steel in India is expected to soar, reaching 190 MT by 2030 at a 7% Compound Annual Growth Rate (CAGR), led mostly by the 60–65% contribution from the construction and infrastructure sectors, according to market research. 

2030 holds significance for the domestic steel industry, aligning with the government's ambitious goal of elevating India's installed steel-making capacity to 300 MT. This involves an addition of approximately 80 MT in steel production capacity by 2030, with 66% employing the Blast Furnace-Basic Oxygen Furnace (BF-BOF) route. Currently, in India, BOF and Electric Arc Furnace (EAF) contribute 46% & 54%, respectively, to overall steel production.