MoU signed with Maharashtra Govt. to set up ₹50,000 crore integrated steel complex in Chandrapur

Shyam Metalics has signed an MoU with the Government of Maharashtra to set up a 9 million tonnes capacity integrated steel complex in Chandrapur, at an estimated investment of ₹50,000 crore.

Mon 5 Oct 2026

Project Capacity

9 million tonnes capacity integrated steel complex in Chandrapur

Estimated Investment

₹50,000 crore

Phase-I Capacity

3.75 MTPA finished steel capacity

Phase-II Capacity

5.25 MTPA finished steel capacity

Jobs & Approvals Timeline

about 10,000 direct and 20,000 indirect jobs; permissions, registrations, approvals and clearances in FY 2026-27

Shyam Metalics and Energy Ltd has informed the exchanges of a press release about signing a Memorandum of Understanding (MoU) with the Government of Maharashtra.

The MoU relates to setting up an integrated steel complex in Chandrapur district, with a stated capacity of 9 million tonnes and an estimated investment of ₹50,000 crore. The release says the agreement was formally executed in Mumbai by Dr. P. Anbalagan, IAS, Principal Secretary (Industries, Investment & Services), for the Government of Maharashtra, and Mr. Brij Bhushan Agarwal, Chairman & Managing Director, for the company.

What is planned

• A greenfield integrated steel complex, built from the ground up, managing the entire steel production journey at one site — pelletisation, sintering, coke making, ironmaking via blast furnace and direct reduced iron (DRI), steel melting, continuous casting and downstream rolling and finishing.
• Phase-I: 3.75 MTPA finished steel capacity.
• Phase-II: 5.25 MTPA additional finished steel capacity.
• Target sectors named: infrastructure, construction, automotive, railways, renewable energy, oil and gas, and heavy engineering.
• The Chandrapur site is described as close to iron ore reserves in Gadchiroli, coal deposits across the Chandrapur mining belt, and essential minerals such as limestone and dolomite, supported by rail, road and power infrastructure.

Jobs and local impact

The release states the project is expected to generate approximately 10,000 direct jobs and 20,000 indirect employment opportunities, and that demand from the plant's operations can support MSMEs, fabrication units, engineering workshops and transport and logistics providers in the Vidarbha region.

Environmental features mentioned

Waste heat recovery systems to generate power, coke dry quenching to conserve water and tap energy, closed-loop water treatment systems for complete recycling and reuse, pollution-control infrastructure and high-efficiency machinery.

Stage of the project

The release describes this as a proposed project, and the Chairman & Managing Director's statement says the company "shall commence with obtaining the necessary permissions, registrations, approvals, and clearances in FY 2026-27". The investment figure is stated as an estimate. The MoU is therefore the starting point, with execution and clearances to follow.

Company background given in the release

• Listed on the exchanges in 2021.
• Market capitalisation of more than ₹ 29,000 Cr.
• Aggregate installed metal capacity of 16.93 MTPA across the steel value chain.
• 467 MW aggregated installed capacity of captive power plants.
• Operations primarily in West Bengal, Odisha, Jharkhand and Madhya Pradesh, with headquarters in Kolkata.

How this can be read

Announcements of large greenfield capacity with an MoU and multi-year phases are generally seen as a long-term growth signal for the company and for the region named. At the same time, the numbers are stated as estimates for a proposed facility, and the company's own statement places the permission and clearance stage in FY 2026-27.

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