Is Karnataka Government Setting Up a ₹2,345 Crore Steel Plant in Koppal?
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Synopsis
Karnataka is set to welcome a significant investment with a ₹2,345 crore steel plant in Koppal district. This initiative, confirmed by Minister M.B. Patil, aims to enhance the state's industrial capabilities and promote advanced manufacturing technologies, providing a boost to local employment and infrastructure.
Key Takeaways
- The Karnataka government is set to establish a ₹2,345 crore steel plant in Koppal.
- The project is a collaboration between Sumitomo and the Bajaj Group.
- Operations are expected to commence by 2028.
- Sumitomo may also invest in a biomass unit in the region.
- This initiative will enhance Karnataka's manufacturing capabilities.
Bengaluru, Sep 11 (NationPress) Karnataka's Minister for Large and Medium Industries, M.B. Patil, announced on Thursday that a significant advancement for the state is underway with the establishment of a ₹2,345 crore steel manufacturing facility in Koppal district.
Minister Patil revealed in an official statement, "Sumitomo has confirmed an investment of ₹2,345 crore in a steel production unit in Koppal through Mukand Sumi, a collaboration with the Bajaj Group. The facility is scheduled to commence operations by 2028 and will possess an annual production capacity of 3,50,000 tonnes of iron and steel."
Additionally, the Minister noted that Sumitomo has shown interest in establishing a biomass unit in Karnataka in the near future.
During the third day of the delegation's visit, discussions were held with senior executives from Sumitomo, Yaskawa, and JFE Shoji companies.
Patil also mentioned negotiations with the Japanese firm JFE Shoji regarding the potential revival of the renowned New Government Electrical Factory (NGEF) in Hubballi through state collaboration.
The Minister presented the revival proposition in a meeting with the company's senior officials.
"JFE is leading the way in producing power converters," the Minister stated.
Moreover, he invited senior officials from the company to visit the Hubballi unit for initial discussions about the NGEF revival.
The meeting included prominent participants such as Hiroshi Lijima, General Manager of the Machinery Division, and Hidekasu Yoshioko, Manager of the Electrical Appliances Steel Planning Division, among others.
The company assured the state delegation that a separate ₹400 crore project to manufacture motor cores for battery-powered and electric vehicles (BEVs/EVs) will be initiated shortly.
Yaskawa confirmed its investment in establishing a motion control and variable frequency drives unit in Bengaluru.
The Minister emphasized that this development will fortify Karnataka's status as a hub for advanced manufacturing technologies.
The delegation comprised Selvakumar S., Principal Secretary of the Department of Commerce and Industries, Gunjan Krishna, Commissioner for Industrial Development and Director of the Department of Industries and Commerce, along with other senior officials.
Point of View
This announcement signifies Karnataka's commitment to fostering industrial growth and attracting foreign investment. The establishment of the steel plant not only enhances the state's manufacturing capabilities but also reflects a strategic focus on sustainable practices with the proposed biomass unit. As Karnataka strengthens its position as a hub for advanced technologies, it sets a precedent for other states to follow, promoting economic development and employment opportunities across the region.
NationPress
12/09/2025
Frequently Asked Questions
What is the investment amount for the steel plant in Koppal?
The investment amount for the steel plant in Koppal is ₹2,345 crore.
When is the steel plant expected to become operational?
The steel plant is expected to become operational by 2028.
Who is investing in the steel plant project?
The investment is being made by Sumitomo through Mukand Sumi, a joint venture with the Bajaj Group.
What is the annual production capacity of the steel plant?
The steel plant will have an annual production capacity of 3,50,000 tonnes.
Is there any other investment planned by Sumitomo in Karnataka?
Yes, Sumitomo has expressed interest in establishing a biomass unit in Karnataka.
