‘Our vision is very clear that we need to set up a renewable energy business. We are working with the government on this and are in discussions to procure land', AMNS CEO Dilip Oommen said
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ArcelorMittal Nippon Steel India is planning to enter the renewable energy segment as part of its expansion plans in India, a senior company official said.
“We are looking at making a foray into renewable energy. This would be as part of our sustainability approach," said Dilip Oommen, CEO, ArcelorMittal Nippon Steel India (AMNS). He said the company is working with the government on solar and hybrid power.
“Our vision is very clear that we need to set up a renewable energy business. We are working with the government on this and are in discussions to procure land. We are keen on producing greener steel as much as possible and renewable energy will be an important portion of our power portfolio," Oommen said.
He declined to share details of the plan. A press statement by the Gujarat government issued in August said the company plans to invest ₹50,000 crore towards hydrogen gas and renewable energy.
ArcelorMittal, the world’s biggest steelmaker, acquired Essar Steel India Ltd in December 2019 for ₹42,000 crore, the largest stressed-asset deal in the country. It then established a joint venture with Japan’s Nippon Steel Corporation (NSC), the world’s third largest steel producer. The joint venture called ArcelorMittal Nippon Steel India Ltd owns and operates Essar Steel. ArcelorMittal owns a 60% interest in the venture, while NSC holds the rest.
AMNS India is an integrated flat steel producer and the largest steel company in western India. AMNS India’s main steel manufacturing facility is located at Hazira, Gujarat.
AMNS has a presence in the power sector via the acquisition of Bhander power plant at Hazira. It was acquired in March 2020 from Edelweiss Asset Reconstruction Company.
Bhander is a natural gas-based thermal plant with an installed capacity of 500MW and will be captive to AMNS India’s steel manufacturing operations at Hazira. It was commissioned in 2006 and commenced commercial operations in 2008, and was purchased under the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest (Sarfaesi) Act. This January, it acquired Essar Power Orissa, another captive power plant of Essar Steel, via the same Act.