Shyam Metalics signs MoU for ₹50,000 crore steel plant in Maharashtra

Shyam Metalics & Energy Ltd has signed a memorandum of understanding (MoU) with the Maharashtra government to set up a 9 million tonnes per annum (MTPA) integrated steel complex in Chandrapur, involving a proposed investment of ₹50,000 crore, the company said in an exchange filing on Monday.

The project, one of the largest proposed single industrial investments in the Vidarbha region, is aimed at expanding Maharashtra's manufacturing base while adding to India's domestic steel-making capacity.

The agreement was signed in Mumbai by P Anbalagan, principal secretary, industries, investment & services, Maharashtra government, and Brij Bhushan Agarwal, chairman and managing director, Shyam Metalics.

Two-phase capacity expansion

The greenfield project will be developed in two phases. The first phase will have 3.75 MTPA of finished steel capacity, while the second will add another 5.25 MTPA. The company said it will undertake the entire production chain at the site, from pelletisation, sintering and coke making to ironmaking, steel melting, casting, rolling and finishing.

The project is strategically located near iron ore reserves in Gadchiroli, coal deposits in the Chandrapur mining belt and supplies of limestone and dolomite. Rail, road and power connectivity were also cited as factors behind the choice of location.

Shyam Metalics expects the complex to generate around 10,000 direct and 20,000 indirect jobs. The project could also create demand for local MSMEs, fabrication and engineering units, as well as transport and logistics providers.

Maharashtra sees industrial catalyst

Anbalagan described the investment as a potential catalyst for the socio-economic transformation of Vidarbha. “Maharashtra continues to serve as the preferred industrial destination in the country,” he said, citing the state's policy framework, infrastructure and business environment.

He said the Chandrapur project could accelerate regional industrialisation, create forward and backward linkages for local MSMEs and generate large-scale employment for young people in the region. The state government, he added, would facilitate the project's timely development and commissioning.

Agarwal said Chandrapur's mineral resources and connectivity made it suitable for a large integrated steel hub. “Our vision goes beyond creating 9 MTPA of high-grade, value-added steel capacity,” he said, adding that the company intends to build an ultra-modern facility based on circular technology, resource efficiency and green practices.

He said the company would work with the Maharashtra government to obtain approvals, create jobs, strengthen domestic supply chains and drive industrial growth in Vidarbha.

Importantly, the ₹50,000-crore project is at the MoU and proposed-project stage. Shyam Metalics said it will begin obtaining the required permissions, registrations, approvals and clearances during FY2026-27.

The project would significantly expand Shyam Metalics' production footprint. The company currently has 16.93 MTPA of aggregate installed metal capacity across the steel value chain, backed by 467 MW of captive power capacity, according to the release.

The proposed complex is also aimed at supplying value-added steel to infrastructure, construction, automobiles, railways, renewable energy, oil and gas and heavy engineering, potentially strengthening domestic supply chains for these sectors.