Leading Indian business conglomerate Essar Group is awaiting the final approvals from Saudi authorities to build a low-carbon steel plant in the kingdom at a total investment of $4.5 billion, reported Press Trust of India, citing a top official.

"We still haven't got all the final approvals," revealed Prashant Ruia, the Director of Essar Capital, which manages the group's portfolio of investments.

The work on the project will start after receiving all the necessary approvals, Ruia said, adding the company already has a 1,000-acre land set for the multibillion dollar project.

This will be Essar Group's first steel project outside India. The metals-to-infrastructure conglomerate earlier owned and operated an integrated steel plant in Hazira, Gujarat, which it lost to ArcelorMittal in an insolvency battle.

The Essar plant will take three to three-and-a-half-years to build and once operational it will meet the domestic steel demand, he stated.

"Saudi Arabia is going through a large growth phase, a large part of steel today is getting imported into Saudi Arabia. So this is basically a domestic plant," said Ruia in the interview with PTI.

The oil-rich kingdom is eyeing becoming an electric vehicle manufacturing hub, manufacturing more than 3 lakh cars annually by 2030.

Essar, he stated, was looking to tap into the demand for steel for such cars as well as for other consumer goods industry.

Indian business conglomerate, which turned debt-free two years back after selling some infrastructure assets, is investing in decarbonisation projects and green mobility to fuel the next growth phase, said the PTI report.

The approvals are expected anytime now, and once we get it, work will begin on the 4 million tonne per annum steel plant along with port facilities, stated Ruia.

The plant will integrate gas-based direct reduced iron (DRI) and electric arc furnace (EAF) technology to cater primarily to local needs of Saudi Arabia.

Essar also plans to invest in constructing two dedicated berths at Ras Al Khair port, exclusively for its steel project,

Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).