Row over ArcelorMittal steel plant shift to Andhra; BJD MP says Odisha losing industrial opportunity

New Delhi [India], March 30 (ANI): Biju Janata Dal (BJD) leader and Rajya Sabha MP Sasmit Patra has criticised the decision of ArcelorMittal and Nippon Steel to move their proposed steel plant from Odisha to Andhra Pradesh, calling it a "very sad and shameful development" and asserting that steel production should take place in Odisha itself.
In an exclusive conversation with ANI, Patra said that the project was originally planned for Odisha when former Chief Minister Naveen Patnaik had travelled to Japan and signed a Memorandum of Understanding (MoU) with Nippon Steel.

"It is a very sad and shameful development that the ArcelorMittal Nippon Steel plant, which was originally planned for Odisha, is now being shifted to Andhra Pradesh," Patra said.
He further raised concerns over the transportation of Odisha's mineral resources to another state.
"The second most critical issue is that Odisha's minerals will be transported to Andhra Pradesh via a slurry pipeline. If every steel plant and industry moves out of Odisha, and our minerals and coal are exported through such pipelines, nothing will be left for the state," he added.
He also directly addressed Lakshmi Mittal, stating, "If Lakshmi Mittal wants to produce steel, he should do so in Odisha rather than taking our minerals to Andhra Pradesh."
ArcelorMittal had announced on March 23 the foundation stone-laying ceremony for a new integrated steel plant of its joint venture, ArcelorMittal Nippon Steel India, at Rajayyapeta in Anakapalli district of Andhra Pradesh.
The company stated that the location offers strategic advantages: "With an excellent coastal location and proximity to the existing slurry pipeline, enabling easy connection to one of India's richest iron ore deposits, it will be one of the lowest-cost, most competitive plants in India."
However, in 2021, an MoU was signed between the Government of Odisha and ArcelorMittal Nippon Steel for setting up a 12-million-tonne integrated steel plant in Kendrapara district, with an investment of Rs 50,000 crore.
Politically, Odisha holds significance, as 20 out of 21 Lok Sabha seats were won by the Bharatiya Janata Party (BJP) in the 2024 General Elections, marking a sharp rise from its earlier tally of eight seats.
With a BJP-led "double-engine" government at the Centre and in the state, Odisha has been attracting investments in recent years.
The state has also witnessed increased focus on industrial and infrastructure growth. In August 2025, the Union Cabinet approved two semiconductor units for the state, including a Silicon Carbide (SiC) compound fab by SiCSem Pvt Ltd and an advanced packaging unit by 3D Glass Solutions Inc., both to be set up in Bhubaneswar's Info Valley.
Additionally, the Union Budget 2026-27 announced the establishment of dedicated Rare Earth Corridors across four states, including Odisha, aimed at strengthening domestic capabilities in critical minerals. (ANI)