Centre unveils Rs 39,000-crore expansion plan for Odisha's Rourkela Steel Plant: Key things to know

Steel and Heavy Industries Minister HD Kumaraswamy has unveiled expansion plans to more than double the capacity of Odisha's Rourkela Steel Plant to 9.8 million tonnes from the current 4.5 million tonnes, with expansion projects amounting to Rs 39,000 crore. According to an official statement, the plant will take up a brownfield expansion worth around Rs 9,000 crore and a greenfield expansion worth approximately Rs 30,000 crore, with the transformative investments set to define the next chapter of the city's industrial growth.

Expansion to usher in Fresh waves of prosperity for Odisha: HD Kumaraswamy on Rourkela Steel Plant

Reaffirming Prime Minister Narendra Modi’s National Steel Capacity Vision, under which the central government plans to take the domestic steel production capacity to 300 MT per year by 2030, Kumaraswamy described the Rourkela plant as a foundation stone in the country's industrial journey. The Union Minister also said that the expansion will usher in "fresh waves of prosperity" for the state.

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The Modi government aims to raise the country's steel production capacity from about 179 MT in FY24 to 300 MT by 2030, crucial for supporting its $1.3 trillion National Infrastructure Pipeline, Smart Cities Mission, and various public sector mega-projects.​

During his significant visit to Rourkela, Kumaraswamy highlighted the plant’s central role in shaping the country's industrial growth and laid out an ambitious expansion roadmap. He also said that it was a “proud moment” for him to visit the country’s first public sector integrated steel plant.

“For over six decades, RSP has not just operated but flourished. It has emerged as a major player and a foundation stone of our domestic steel industry,” he said.

Praising the dedication of the RSP workforce, the minister said: “I congratulate the RSP collective for the substantial improvements achieved in production, productivity, and techno-economics."

He also inaugurated the modern 1 MTPA Slab Caster at Steel Melting Shop-2, built with a capex of about Rs 1,100 crore, and also reviewed the progress of the Coke Oven Battery 7 and the new Pellet Plant under construction. The minister highlighted positive momentum in raw material output, stating that the Odisha Group of Mines had increased production by over 5 per cent this year and was expected to cross around 15 million tonnes in FY26.

“We have a clear vision to double the production capacity of Rourkela Steel Plant -- from 4.5 million tonnes per annum to 9.8 million tonnes per annum," he said.

Stating that the ministry was working closely with the Odisha government, he said: “We are actively and continuously coordinating with the state government so that this expansion progresses efficiently and in a cordial, collaborative environment."

Emphasising that the upcoming projects would generate wide-ranging benefits, he said: “This expansion will bring more employment for local youth, more opportunities for MSMEs, and stronger community development. It will also make RSP a major producer of high-quality and special steel."