AM/NS India, a JV between ArcelorMittal and Nippon Steel, has acquired the 500 MW Bhander Power Plant at Hazira in Gujarat from Edelweiss Asset Reconstruction Company.
The natural gas-based thermal power plant will be captive for AM/NS India’s steel manufacturing operations at Hazira.
Bhander, which was commissioned in 2006 and commenced commercial operations in 2008, was acquired by AM/NS India under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act. Earlier this month, ArcelorMittal Indiaemerged the preferred bidder for an iron ore mine licence in Odisha in an auction by the State government.
Thakurani block in the district of Keonjhar, with estimated reserves of 179.26 million tonnes, is expected to make a valuable contribution to AM/NS India’s long-term raw material requirements, according to the company.
Dilip Oommen, CEO, AM/NS India, said: “We are pleased to have acquired these important ancillary assets for our steel-making facilities. This is in line with an intent to secure a robust captive power and commodity supply chain as we continue to make strong strides in our production and operational performance. Efforts to become increasingly self-reliant, in this case through the procurement of a key energy source in Gujarat and an iron ore rich reserve in Odisha, form part of AM/NS India’s medium to long-term strategy to significantly grow our production capacity in India.”
On conclusion of the licence award process, AMIPL will proceed to seek requisite clearances, as well as mine development and production agreements, ahead of commencing mining operations.
AM/NS India owns and operate 8.5 million tonnes per annum (MTPA) steel making capacity in Hazira.