MUMBAI : Shyam Metalics & Energy Ltd (SMEL) has signed an MoU with the Maharashtra government to set up a 9 million tonne per annum (MTPA) integrated steel complex in Chandrapur, involving an estimated investment of ₹50,000 crore.
The project, one of the proposed major industrial investments in the Vidarbha region, is expected to create around 10,000 direct and 20,000 indirect jobs.
The MoU was signed by Dr P. Anbalagan, Principal Secretary (Industries, Investment & Services), Government of Maharashtra, and Brij Bhushan Agarwal, Chairman and Managing Director of Shyam Metalics.
The greenfield steel complex will be developed in two phases. Phase I will have a finished steel capacity of 3.75 MTPA, while Phase II will add another 5.25 MTPA, taking the total capacity to 9 MTPA.
The proposed facility will integrate key stages of steel production, including pelletisation, sintering, coke making, blast furnace and direct reduced iron (DRI)-based ironmaking, steel melting, continuous casting and downstream rolling and finishing.
The company said the location in Chandrapur offers access to iron ore reserves in Gadchiroli, coal resources in the Chandrapur mining belt and limestone and dolomite, besides rail, road and power infrastructure.
The steel produced at the facility is expected to cater to sectors including infrastructure, construction, automobiles, railways, renewable energy, oil and gas and heavy engineering.
The project is also expected to generate business opportunities for local MSMEs, fabrication units, engineering firms and transport and logistics operators, according to the company.
Shyam Metalics said it plans to incorporate technologies such as waste heat recovery, coke dry quenching and closed-loop water treatment systems to improve energy and resource efficiency.
The company said it will begin obtaining the required permissions, registrations, approvals and clearances during FY2026-27.
Commenting on the project, Brij Bhushan Agarwal said the company aims to develop an integrated steel manufacturing facility focused on resource efficiency, circular technologies and value-added steel production.
Maharashtra Industries Secretary P. Anbalagan said the investment would support industrialisation in Vidarbha and create linkages for local businesses and employment.