Now Reading: Lloyds Metals eyes doubling steel capacity at Maharashtra plant
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Lloyds Metals eyes doubling steel capacity at Maharashtra plant
Lloyds Metals eyes doubling steel capacity at Maharashtra plant
Lloyds Metals & Energy Ltd is evaluating a scale-up of its proposed steel plant at Konsari in Gadchiroli, Maharashtra, from the cleared 4.5 million tonnes per annum (mtpa) to as much as…
Lloyds Metals & Energy Ltd is evaluating a scale-up of its proposed steel plant at Konsari in Gadchiroli, Maharashtra, from the cleared 4.5 million tonnes per annum (mtpa) to as much as 8 mtpa. The company has received environmental clearance for the 4.5 mtpa facility, up from an originally planned 3 mtpa, and is conducting technical and financial studies before seeking board approval.
The potential expansion is driven by rising captive iron ore production, which the company expects to reach about 26 mtpa by FY27. Lloyds is already executing a 1.2 mtpa electric-arc-furnace unit at Ghugus, set for commissioning by March 2027. Together, both steel projects involve investments of Rs 20,000-25,000 crore over five years. A decision on final capacity will determine the project's capital requirement and any need for additional environmental approvals.
Indian Opinion Analysis
Lloyds Metals is betting that captive iron ore gives it an edge in a steel market dominated by giants such as JSW Steel and Tata Steel. The 8 mtpa plan would place Konsari among India's larger single-location steel plants, comparable to some of JSW's Vijayanagar phases. Under Indian environmental law, any capacity rise beyond the cleared 4.5 mtpa will require a fresh impact assessment and public hearing, adding 12-18 months to the timeline. The board must first approve the feasibility study, then seek the environment ministry's nod. The real signal to watch is the project's capital cost: if Lloyds commits over Rs 10,000 crore to Konsari, it signals a strategic pivot from mining to integrated steelmaking. The Ghugus commissioning in March 2027 will be the first proof of execution capability.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
