World’s largest steel manufacturer ArcelorMittal has sought approval for setting up one of the largest solar power projects developed by a single company in India.
According to media reports quoting the company’s annual report, ArcelorMittal has sought approvals from the state government of Karnataka (India) to set up 600 megawatts solar power project. The project will come up at the site earlier earmarked for a steel manufacturing unit of the company.
The company first indicated its plans to replace the planned steel mill with a large-scale solar power project in 2016 when the price of international commodities had collapsed and steel demand had dwindled.
At around the same time, the Indian government came out in full support of the renewable energy sector, particularly the solar power sector. The government announced plans to have 100 gigawatts of operational solar power capacity by 2022, including 20 gigawatts from large-scale projects (which was later doubled to 40 gigawatts).
The conducive regulatory, policy and monetary support (reduced interest rates) attracted several companies towards the solar power market. An Indian power generation company, RattanIndia Power, announced plans to replace a planned coal-fired power plant with a 200 MW solar power project. The company dropped plans for the coal-based power plant after it failed to receive assurance of domestic coal supply.
At present, the largest solar power project developed by a single company in India is 650 megawatts operated by Adani Green Energy in the state of Tamil Nadu.