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Chinese steel company to invest Rs 7,000 crore in Kutch plant

GANDHINAGAR: Border disputes have led to tensions between India and China in the last few months but this has not dimmed Chinese interest in investing in Gujarat. China-based Sunrise Group is slated to set up a steel manufacturing plant at Mundra in Kutch. Recently , auto major Shanghai Automotive Industries Corporation decided to set up a plant in the state.The Chinese steel major has partnered with an Ahmedabad-based entity to form a joint venture company -Chromeni Steels Private Limited -for the project. Chromeni Steels plans to set up a greenfield steel plant at Mundra with an initial investment of Rs 7,000 crore, which may be scaled up to Rs10,000 crore. Sunrise Group had signed an MoU for the plant with the Gujarat government at the Vibrant Gujarat Summit in January 2017. Chromeni Steels was registered as a private limited company in Ahmedabad in June 2017. It is a subsidiary of Sunrise Group with authorized capital of Rs195 crore and paid up capital of Rs39.6 crore. The nine directors of Chromeni Steels Private Limited are Mahaveer Agarwal, Pratik Mahendra Shah, Harsh Pravin Kotak, Amit Muljibhai Vaghasia, Jinsong Chen, Jinqiang Xiang, Jian Jiang and Binghe Xiang. Sources said the company has acquired 213 hectares of land in Rapadiya and Kundardi villages of Mundra block in Kutch. "The government will allot more land shortly . In the first phase, the company will invest Rs 7,000 crore. It has planned a total investment of Rs 10,000 crore.
Source: Times of India (Aug 18, 2017)