JNIL Revives 30-Year-Old Steel Plant Plan in Gadchiroli After Maoist Era
In a significant industrial development, Jayaswal Neco Industries Limited (JNIL), one of the oldest steel companies in Nagpur and Central India, has decided to establish a 2 million tonnes per annum (MTPA) capacity steel plant in Gadchiroli district. This move comes three decades after the company abandoned the plan due to Maoist presence in the region.
Historic MoU Signed at Davos
The group formalized its commitment by signing a Memorandum of Understanding (MoU) with the Maharashtra state government during the World Economic Forum (WEF) meet at Davos last month. The proposed investment for this greenfield project amounts to ₹12,200 crore, signaling a major boost to the local economy.
Changing Security Landscape Encourages Investment
JNIL's management cited the improved security situation in Gadchiroli as a key factor in reviving the plan. Ramesh Jayaswal, managing director of JNIL, explained, "We were thinking of starting a steel plant at Gadchiroli during the 1990s, but changed our mind as the district was unsafe due to Maoists' presence at that time." Instead, the company established a 1 MTPA plant in Raipur, Chhattisgarh, which continues to operate.
Iron Ore Availability and Strategic Location
The decision to set up the plant in Gadchiroli is also driven by the availability of iron ore, a critical raw material for steel production. Jayaswal emphasized, "It is necessary to have a steel plant near the source of the iron ore, as every tonne of steel needs 1.6 to 1.7 tonnes of iron ore during its production." JNIL is already engaged in mining iron ore and is open to bidding for new blocks to support the project.
Growing Steel Demand and Industry Expansion
Jayaswal highlighted the optimistic outlook for steel demand, noting that consumption typically grows by 2% above GDP rates. "The demand for steel is expected to increase due to the fast pace of development in the country. Even the government has set a target of steel production to reach 300 million tonnes by 2030," he said. This growth trajectory creates ample space for new manufacturers in the market.
Other Major Investments in Gadchiroli
The district is witnessing a surge in industrial interest, with other companies also announcing plans:
- JSW Group has proposed a ₹1 lakh crore plant, encouraging JNIL's decision.
- Kolkata-based Super Smelters Limited signed an MoU for a ₹10,000 crore plant during the Advantage Vidarbha event last week.
- Surjagad Ispat inked a pact for an expansion project involving an investment of ₹20,000 crore.
This collective investment wave underscores Gadchiroli's transformation into a key hub for steel manufacturing, driven by improved security and resource availability.
