Adag Eyes Steel Foray; Lines Up Rs 40k Cr For J'khand Plant

[Honest 836]

ADAG eyes steel foray; lines up Rs 40K cr for J'khand plant

15 Sep, 2008, 1836 hrs IST, PTI

RANCHI: Reliance Anil Dhirubhai Ambani Group has proposed to set up a 12 million-ton per annum steel plant in Jharkhand, a top official in the state government said.

"They (ADAG) have approached us to set up a 12 MTPA steel project. We have their proposal, the process is on," Jharkhand Industrial Secretary K K Khandelwal said.

ADAG group company Reliance Infrastructure will be undertaking the greenfield project and is expected to invest around Rs 40,000 crore in the venture, sources closed to the development said.

Reliance Infrastructure officials could not be contacted. ADAG group company's decision to foray into steel comes in the backdrop of world's largest producer ArcelorMittal's finalising plans to set up an integrated plant in the state with the same capacity.

When asked if an agreement between the Ambani Group company and the government could be reached soon, Khandelwal said, "The process is on. We are looking into it."

Reliance Infrastructure, formerly known as Reliance Energy, is active in infrastructure, engineering and construction businesses, among others.