Bengaluru, Sep 11 : Karnataka Minister for Large and Medium Industries, M.B. Patil, said on Thursday that in a major boost for the state, Rs 2,345 crore steel plant will be set up in the Koppal district.

Minister Patil in the official statement said, "Sumitomo confirmed an investment of Rs 2,345 crore in a steel manufacturing unit in Koppal through Mukand Sumi, a joint venture with the Bajaj Group. The unit will be operational by 2028 and will have an annual capacity of 3,50,000 tonnes of iron and steel."

The Minister also added that Sumitomo has also expressed interest in setting up a biomass unit in Karnataka in the near future.

On the third day of the visit, the government delegation held talks with senior officials of Sumitomo, Yaskawa, and JFE Shoji companies.

He also said that he held talks with Japanese firm JFE Shoji on the possibilities of reviving the prestigious New Government Electrical Factory (NGEF) in Hubballi under state partnership.

The Minister, leading a high-level Karnataka delegation visiting Japan to attract investment, put forward the revival proposal in a meeting with the company's top officials.

"JFE is at the forefront in the manufacture of power converters," the Minister said.

He added that senior officials of the company have been invited to visit the Hubballi unit for preliminary discussions regarding the NGEF revival.

The company assured the state delegation that a separate Rs 400 crore project to manufacture motor cores used in battery-powered and electric vehicles (BEVs/EVs) will be implemented soon.

Yaskawa confirmed its investment to the state delegation for establishing a motion control and variable frequency drives unit in Bengaluru.

The Minister said this will strengthen Karnataka's position as a hub for advanced manufacturing technology.

The delegation included Selvakumar S., Principal Secretary, Department of Commerce and Industries, and Gunjan Krishna, Commissioner for Industrial Development and Director, Department of Industries and Commerce, and other senior officials.

/IANS