Shyam Metalics & Energy Ltd (SMEL) has signed a Memorandum of Understanding (MoU) with the Government of Maharashtra to establish a 9 million tonnes per annum (MTPA) integrated steel complex in Chandrapur. The project, involving an estimated investment of ₹50,000 crore, is expected to be one of the largest industrial investments in the Vidarbha region and will create around 10,000 direct and 20,000 indirect employment opportunities.
The MoU was signed in Mumbai by Dr P. Anbalagan, IAS, Principal Secretary (Industries, Investment & Services), Government of Maharashtra, and Brij Bhushan Agarwal, Chairman & Managing Director, Shyam Metalics & Energy Ltd. The agreement is aimed at expanding manufacturing capacity, strengthening domestic steel production and supporting industrial development in Maharashtra.
The greenfield complex will be developed in two phases. Phase I will have 3.75 MTPA of finished steel capacity, while Phase II will add another 5.25 MTPA. The integrated facility will cover the complete steel manufacturing process, including pelletisation, sintering, coke making, ironmaking through blast furnace and direct reduced iron (DRI) routes, steel melting, continuous casting, rolling and finishing.
Chandrapur has been selected for the project because of its proximity to iron ore reserves in Gadchiroli, coal resources in the Chandrapur mining belt and deposits of limestone and dolomite. The location also has access to rail, road and power infrastructure The plant will produce value-added steel for infrastructure, construction, automotive, railways, renewable energy, oil and gas and heavy engineering industries. The project is expected to strengthen domestic supply chains and contribute to India’s efforts to increase self-reliance in steel production.
The development is also expected to generate business opportunities for MSMEs, fabrication units, engineering workshops and logistics and transport companies in the region. Skill development programmes will be undertaken to prepare local youth for employment opportunities created by the project.
The complex will incorporate measures to improve resource and energy efficiency. These will include waste heat recovery systems for power generation, coke dry quenching to reduce water consumption and closed-loop water treatment systems for recycling and reuse. Pollution-control systems and high-efficiency equipment will also be deployed across the facility.
Dr Anbalagan said the investment would support industrialisation in Vidarbha and create employment and business opportunities for the region. Brij Bhushan Agarwal said the company would work with the Maharashtra government to obtain the required permissions, registrations, approvals and clearances during FY2026-27 and develop the project as an integrated steel manufacturing hub.
Shyam Metalics is a leading integrated metal producer in India, with operations in West Bengal, Odisha, Jharkhand, and Madhya Pradesh. Headquartered in Kolkata, the company focuses on long steel products, ferro alloys, aluminium, and stainless steel. It is one of the largest producers of ferro alloys and coal-based sponge iron in the country by installed capacity, according to CRISIL.
Listed on Indian stock exchanges since 2021, Shyam Metalics currently holds a market capitalisation of approximately ₹25,473 crore. The company maintains a diversified product portfolio and operates across the entire steel value chain, offering both intermediate and finished products.
