Ruias-promoted Essar Steel, which plans to raise production capacity to 25 million tonne per annum, will invest Rs 17,760 crore to put up a 6 mtpa mega steel plant in Karnataka.
The state government has cleared the proposal and the plant is to be set up at Bagalkot, industry sources said, adding that project details were being worked out.
Initially, the plant would have a 3 mtpa capacity which would be doubled to 6 mtpa in the second phase, sources said.
The proposal is to set up a pellet plant, a coke oven plant and a battery in the first phase and the company has asked the state government to lease an iron ore mine for uninterrupted supply of the raw material.
Essar Steel produces 4.6 mtpa at Hazira in Gujarat and plans to increase the capacity to 9 mtpa. Its Indian operations also include an 8 mtpa beneficiation plant at Bailadilla in Chattisgarh and an 8 mtpa pellet complex in Visakhapatanam in Andhra Pradesh.
The company is also working on putting up a 6 mtpa integrated steel plant at Paradeep in Orissa. The project would be developed in two phases.