Karnataka Awaits Court Verdict Before Proceeding with ₹54,000 Crore Koppal Steel Project

Karnataka Chief Minister Siddaramaiah has said that the state government will take a final decision on the proposed ₹54,000 crore steel plant in Koppal district only after the court delivers its verdict. The statement comes amid local protests and ongoing legal proceedings surrounding the massive greenfield project proposed by the Baldota Group.

The Hospet-based Baldota Group had signed a memorandum of understanding (MoU) with the Karnataka government during the Global Investors’ Meet held in February. The group proposed to invest ₹54,000 crore to set up a 10.5 million tonnes per annum (MTPA) steel mill in Koppal district. The ambitious project is expected to generate nearly 15,000 direct and indirect employment opportunities, boosting the region’s industrial ecosystem and local economy.

Despite receiving all necessary approvals, including clearances from the Union Government and the State Pollution Control Board, the project has faced strong resistance from local residents. Following these protests, Chief Minister Siddaramaiah, in March, directed the Koppal district administration to instruct the company to temporarily halt construction activities. This decision was influenced by a memorandum submitted by a delegation of local legislators led by district in-charge minister Shivaraj Tangadagi, who opposed the establishment of the plant citing environmental and social concerns.

According to official sources, the Baldota Group has already acquired around 1,000 acres of land and plans to purchase an additional 2,400 acres for the plant. The company maintains that the project will adhere to all environmental norms and create sustainable development in the region.

Industry experts view the Koppal steel project as a crucial step toward Karnataka’s goal of strengthening its position as a leading steel-producing state. However, the project’s fate now hinges on judicial outcomes, as the government has decided not to move forward until the courts settle the pending disputes.

If approved, the project could become one of Karnataka’s largest industrial investments, reinforcing the state’s appeal as a manufacturing and infrastructure hub in South India.