By Jayant Mundhra
Nagpur, famous for its juicy oranges and central location, is undergoing a dramatic transformation- a metallic metamorphosis. The city is poised to be a key beneficiary of India’s next steel powerhouse – the iron-rich depths of Gadchiroli, known more for its biodiversity and Naxalite activity than its industrial potential.
It is home to some 200 million metric tonnes of iron ore deposit. But, wait. It is 170 kilometres away from Nagpur.
So how does the city benefit? First let’s understand what’s underway at Gadchiroli. And then, we’ll know where Nagpur comes in.
Gadchiroli gains momentum
In the last three years, more than Rs 30,000 crore worth of projects have been announced and initiated in Gadchiroli, with another Rs 40,000 crore worth of projects in the pipeline.
Take the case of Lloyds Metals and Energy Limited (LMEL).
It has been granted the right to operate a mine at Surajgarh Hills, one of the most important iron ore reserves in the district, through a partnership with Thriveni Earthmovers, led by B. Prabhakaran.
The company has been running mining activities since 2021 with a current capacity of 3 million tonnes per annum (MTPA). And recently, it also secured the government clearance to push this number as high as 10 million tonnes per annum.
Earlier this year, LMEL announced an investment of Rs 20,000 crore to build an integrated steel plant at Konsari village, about 80 kilometers from the mining site.
And the steel plant will have the capacity to produce hot-rolled coils, cold-rolled coils, and other steel products. The plant will utilise the iron from the aforementioned mining site itself, while also generate 800 direct and additional 2,000 indirect jobs.
Nearby, there is more action happening.
Another player, Surajgad Ispat, has entered into Gadchiroli’s steel industry with an investment of Rs 10,000 crore. The investment is planned in 4 phases of Rs 2500 crore each.
It will be putting up a greenfield integrated steel plant and is expected to create over 8,000 direct and indirect job opportunities. It will also be sourcing iron ore from LMEL’s iron ore mines in the Surajgad hills.
For the ginormous project, about 340 acres of land have already been acquired about 65 kilometers from LMEL’s iron ore facility. The sponge iron units of the project are set to be functional in May 2025 and the project is expected to be completed by 2027 when all the phases will be functional.
And that’s not all.
Several major players in the steel industry, including JSW Steel, have already secured iron ore blocks in Gadchiroli.
ArcelorMittal Nippon Steel (AMNS) – one of India’s fastest-growing steelmakers among the big ones – has also recently signed an MoU with the Maharashtra Government to invest Rs 40,000 cr in the state to build a green steel plant with a capacity of 6 mtpa.
And this one’s special, for two reasons.
One, because AMNS plans to produce green steel using hydrogen instead of coal, reducing carbon emissions.
Two, because the project will generate over 20,000 direct and indirect employment opportunities.
This, along with those other two steel plants and the iron ore mining operations are set to lift the entire region’s profile, and create enormous employment for many villages in and around Gadchiroli!
Where does Nagpur fit into this?
While Gadchiroli has no dearth of natural resources, what it lacks is connectivity, infrastructure, and access to talent.
This is where Nagpur steps in to utilise its strategic location to become the nodal point for all of Gadchiroli’s steel economy.
Nagpur’s connectivity is further strengthened by projects like the Samruddhi Expressway which reduces the travel time from Nagpur to Mumbai from 16 hours to 8 hours and connects across 10 districts of Maharashtra.
The proposed high-speed rail network from Nagpur to Mumbai will only make it easier for executives and workers to reach the mega projects coming around Gadchiroli. It will decrease transit time from 12-16 to 4-5 hours.
This will bring in a great deal of business boost for Nagpur’s mobility, real estate, and hospitality industries.
That’s not all.
To add to the allure, the MIHAN (Multi-modal International Cargo Hub and Airport at Nagpur) project will include a multi-modal cargo hub that will ensure efficient transport of goods from the air, road, and rail routes.
This project also consists of a special economic zone that will draw in ancillary industries related to steel processing. Thus, the availability of steel from Gadchiroli will give rise to several industries including steel fabrication, machinery manufacturing, and component suppliers in Nagpur.
And what will aid it all?
Nagpur is already a source of high-quality engineering talent, thanks to its technical institutions such as VNIT Nagpur and IIIT Nagpur.
These engineers will fill the gap for highly skilled employees required in the mining and steel-making industry, and provide further technical support and expertise.
But, there are challenges galore
Gadchiroli has been a hotbed of Naxalite-Maoist activities and violence.
For example, in the past, ex-minister Dharambaba Atram and his family have received death threats. A minister was also been kidnapped by Naxalites and was released only in exchange for the release of a high-profile Naxalite prisoner.
So, that’s a big challenge. A challenge that companies such as LMEL hope will be combatted by providing employment and economic upliftment to the community where they operate, a model adopted by mining companies across India.
This alleviates the concern that the industrial activity must not displace the locals, but should rather create livelihood opportunities for them.
If that’s assured out of all the action underway, it will be a big setback for Naxalite activities, also lead to a social and economical upliftment of the whole region.
Some promising work is already underway
LMEL has been actively engaging with the community to create employment opportunities and ensure the welfare of Gadchiroli’s Maoism-infested pockets.
It has guaranteed to employ one person from each family of the farmers whose land is to be acquired for the plant. In their projects, they have also mentioned “Housing and Infrastructure” which will be built over the next 48 months.
The company’s Managing Director, B. Prabhakaran, has also said there is a skill set gap when it comes to mining and steel-related employment, and to address this gap, they have started their training academy to develop all mining-related skills in-house.
LMEL has also selected 40 school children who have completed tenth standard. They will be sent to Australia to attend Curtin University, which is renowned for its mining-related courses. When these students come back, they will get to work at LMEL’s steel plant.
Meanwhile, the company is also in talks with the government to set up a site campus of Curtin University in Gadchiroli so that maximum students get the training in the district.
Conclusion
Overall, the Gadchiroli steel plant projects represent a significant opportunity for both Nagpur and the wider Vidarbha region.
While challenges exist, careful planning and sustainable development practices can ensure that the project delivers long-term economic benefits while minimising its negative impacts.
