Arcelor-Mittal gets coal blocks for Jharkhand, Orissa plants

Written by Abhishek Anand | New Delhi, Oct 29 | Updated: Oct 30 2007, 04:46am hrs
In what could be seen as the first step towards Arcelor-Mittal setting up two steel plants of 12 million tonne (mt) capacity in Jharkhand and Orissa, the steel major has been allotted two coal blocks, one each in the two states. The two blocks are Seregarha in Jharkhand and Rampia in Orissa. Both the blocks can generate coal to produce 700 mw of power each.

We have applied for coal blocks to set up power plants of 1,500 mw in Orissa and Jharkhand for captive consumption for steel plants, Arcelor-Mittal India CEO Sanak Mishra told FE.

The worlds largest steel producer has signed two separate MoUs with Jharkhand and Orissa state governments to set up greenfield steel plant of 12 mt each, with a total investment of Rs 80,000 crore.

While, we have already identified 8,000 acres of land in Keonjhar district in Orissa and we have also zeroed on a project site in Jharkhand and would disclose the place once

Jharkhand government clears its rehabilitation and resettlement policy, he added.

The lands in Orissa comprises both government and private and the process of land acquisition is likely to begin shortly. Of the total 8,000 acres, 6,000 acres will be used for steel plant, 1,000 acres for power plant and the remaining 1,000 acres for township.

The company plans to tackle the tricky issue of rehabilitation and resettlement (R&R), as per the R&R policy of the state government. Additionally, the company is in talks with some of the biggest consultants for R&R policy.

The proposed plant in Jharkhand is delayed, as allocation of the Chiria iron ore block is sub-judice. However, Arcelor-Mittal hopes to start production in Orissa as per schedule. The company also hopes to get leases for iron ore soon. Arcelor-Mittal requires 600 million tonne iron-ore every year for its proposed 12 million tonne plant in the state.