Bhushan eyes Rs 28k cr plant in Bellary

MUMBAI/BANGALORE: Bhushan Steel will spend Rs 28,000 crore to build a 6 lakh tonnes steel plant in the Bellary region of Karnataka, a place other large steelmakers, including ArcelorMittal and Posco are also eyeing to build steel projects.

Although a Bhushan Steel senior executive said it was a proposal that followed an earlier invitation from the Karanataka government, the company is waiting for a clear policy on mine allocation before taking the final decision.

“This is the first step in a process that can take anywhere between three and 4 years,” said finance director Nitin Johari. He declined to elaborate.

ET had reported on February 9 that Bhushan Steel and Japan’s Sumitomo, which had teamed up to build a plant a in West Bengal, were looking at opportunities in Karnataka. If successful, the Sumitomo-Bhushan Steel duo may join a growing list of large steelmakers, including ArcelorMittal and Posco, which have opted for Karnataka after being frustrated in their efforts to build a steel plant in the eastern states of Jharkhand and Orissa, respectively.

According to a Karnataka government official, Bhushan Steel’s application has been screened by the local industry ministry and that the government is waiting for Bhushan’s technical team to do their evaluation.

Sumitomo, which is also the world’s sixth-largest steel company, already has a technology transfer agreement and had also expressed interest in jointly building the proposed 6-million-tonne steel plant in Asansol in West Bengal.

Car sales in India have been growing sharply and steel usage rose 8.5% boosted by demand from makers of cars and appliances. Bhushan has offered Sumitomo about 40% stake in the West Bengal project.