Shyam Metalics & Energy has signed a memorandum of understanding with the Maharashtra government to establish a 9 million tonnes per annum integrated steel complex in Chandrapur, with a proposed investment of ₹50,000 crore and the potential to generate about 30,000 direct and indirect jobs.
The company disclosed the proposal in an exchange filing. The agreement was signed in Mumbai by P Anbalagan, principal secretary, industries, investment and services, Maharashtra government, and Brij Bhushan Agarwal, chairman and managing director of Shyam Metalics.
The greenfield project is planned in two phases. The first phase will provide 3.75 MTPA of finished steel capacity, while the second phase will add a further 5.25 MTPA. Shyam Metalics said the complex would cover the full production chain, including pelletisation, sintering, coke making, ironmaking, steel melting, casting, rolling and finishing.
The proposed site has been selected for its access to raw materials and transport infrastructure. The company cited nearby iron ore reserves in Gadchiroli, coal deposits in the Chandrapur mining belt and supplies of limestone and dolomite. Rail, road and power connectivity were also listed as factors supporting the location.
Shyam Metalics expects the project to create around 10,000 direct jobs and 20,000 indirect jobs. It could also generate demand for local micro, small and medium enterprises, fabrication and engineering businesses, as well as transport and logistics providers. The company said the planned facility would supply value-added steel for infrastructure, construction, automobiles, railways, renewable energy, oil and gas and heavy engineering.
The Maharashtra government has described the investment as a potential catalyst for the socio-economic transformation of Vidarbha. Anbalagan said the project could accelerate regional industrialisation, strengthen forward and backward linkages for local MSMEs and create employment for young people in the region. He added that the state would facilitate its development and commissioning.
Agarwal said Chandrapur’s mineral resources and connectivity made it suitable for a large integrated steel hub. He said the company intended to develop an ultra-modern facility based on circular technology, resource efficiency and green practices, while working with the state government to secure approvals and strengthen domestic supply chains.
The project remains at the MoU and proposed-project stage and is not yet an operational or construction-ready facility. Shyam Metalics said it would begin obtaining the required permissions, registrations, approvals and clearances during financial year 2026-27.
The proposed complex would significantly expand the company’s production footprint. Shyam Metalics currently has aggregate installed metal capacity of 16.93 MTPA across the steel value chain, supported by 467 MW of captive power capacity. The next formal milestone will be the start of the approval and clearance process in FY2026-27.