Shyam Metalics and Energy (SMEL) and its material wholly-owned subsidiary i.e., Shyam SEL & Power has received the "consent to operate' from State Pollution Control Board, Odisha and West Bengal Pollution Control Board respectively. Following the clearances, the total installed capacity for sponge iron products will increase by 20% to 1.67 million tons per annum (MTPA) from 1.39 MTPA. The incremental capacity will commence operations in December 2021.

The company is also expecting to receive similar clearances for commissioning an aluminum foil plant in West Bengal. The proposed installed capacity of 0.03 MTPA is also expected to start commercial operations in December 2021. Shyam Metalics and Energy (SMEL) had announced its plans to increase the existing integrated installed facility of 5.7 million tons to 11.6 million tons by 2025.

Brij Bhushan Agarwal, the vice chairman and managing director (MD) of Shyam Metalics and Energy (SMEL), has said that: "The capacity expansion at our Sambalpur & Jamuria plants comes at an opportune time as the steel industry continues to expand and the demand for our product remains high. We are committed to our expansion plans and have already invested Rs 464 crore from the total budget of Rs 850 crore earmarked towards capital expenditure from internal accruals in Financial Year 2022. We also look forward to further expansions in our captive power projects. We are optimistic about achieving our goals and generate value for all our stakeholders."

Shyam Metalics and Energy reported 157% jump in consolidated net profit to Rs 410.28 crore in Q2 FY22 from Rs 159.63 crore in Q2 FY21. Net sales in the second quarter increased by 86.8% to Rs 2,494.34 crore from Rs 1,335.15 recorded in the same period last year.

Shyam Metalics and Energy (SMEL) is an integrated metal producing company based in India with a focus on long steel products and ferro alloys. It is amongst the largest producers of ferro alloys, one of the leading players in terms of pellet capacity and the fourth largest player in the sponge iron industry in terms of sponge iron capacity in India.

Shares of Shyam Metalics and Energy (SMEL) rose 0.61% to Rs 327.65 on BSE.