Project Overview
Shyam Metalics and Energy Limited (SMEL) has signed a Memorandum of Understanding (MoU) with the Government of Maharashtra to establish a 9 million tonnes per annum (MTPA) greenfield integrated steel complex in Chandrapur district. The agreement was formally executed in Mumbai by Dr. P. Anbalagan, IAS, Principal Secretary (Industries, Investment & Services) representing the Government of Maharashtra, and Mr. Brij Bhushan Agarwal, Chairman & Managing Director of Shyam Metalics and Energy Ltd.
Investment and Capacity Details
- Total estimated investment: ₹50,000 crore
- Total finished steel capacity: 9 MTPA
- Phase-I: 3.75 MTPA finished steel capacity
- Phase-II: 5.25 MTPA additional finished steel capacity
Strategic Location Rationale
Chandrapur district was selected due to its proximity to iron ore reserves in Gadchiroli, coal deposits across the Chandrapur mining belt, and essential minerals such as limestone and dolomite. The location benefits from well-connected rail, road, and power infrastructure.
Production Process
The integrated greenfield complex will manage the entire steel production journey under one roof, including:
- Onsite raw material conversion through pelletisation, sintering, and coke making
- Ironmaking via blast furnace and direct reduced iron (DRI) processes
- Steel melting, continuous casting, and downstream rolling and finishing
Target Markets and Applications
The facility will manufacture high-quality, value-added steel for key sectors including:
- Infrastructure
- Construction
- Automotive
- Railways
- Renewable energy
- Oil and gas
- Heavy engineering
Employment Impact
- Direct jobs: Approximately 10,000
- Indirect employment opportunities: Approximately 20,000
- Total job creation: 30,000 direct and indirect jobs
The project is expected to spur comprehensive skill development initiatives across Vidarbha and catalyze an extensive downstream industrial ecosystem benefiting MSMEs, fabrication units, engineering workshops, and transport and logistics providers.
Environmental Safeguards
The plant will deploy advanced environmental technologies including:
- Waste heat recovery systems to generate power
- Coke dry quenching to conserve water and trap energy
- Closed-loop water treatment systems for complete recycling and reuse
- State-of-the-art pollution-control infrastructure
- High-efficiency machinery
Timeline and Next Steps
The company will commence obtaining necessary permissions, registrations, approvals, and clearances in FY 2026-27.
Management Commentary
Dr. P. Anbalagan, IAS, Principal Secretary (Industries, Investment & Services), Government of Maharashtra:
"Maharashtra continues to serve as the preferred industrial destination in the country by offering a robust policy framework, seamless infrastructure, and an enabling business climate. This landmark investment will be a catalyst for the socio-economic transformation of Vidarbha."
Mr. Brij Bhushan Agarwal, Chairman & Managing Director:
"This MoU marks a pivotal milestone in Shyam Metalics' long-term growth journey and reinforces our dedication to nation-building. We are building an ultra-modern facility anchored in cutting-edge circular technology, resource efficiency, and green practices."
Company Background
Shyam Metalics is a leading integrated metal-producing company with:
- Market capitalization: More than ₹29,000 crore (listed in 2021)
- Aggregate installed metal capacity: 16.93 MTPA across the steel value chain
- Aggregated installed capacity of captive power plants: 467 MW
- Operations primarily in West Bengal, Odisha, Jharkhand, and Madhya Pradesh
- Focus on Long & Flat Steel Products, Ferro Alloys, Aluminium, and Stainless Steel
- Among the largest producers of ferro alloys in India by installed capacity