ArcelorMittal, the worlds largest steel maker which is in the process of setting up the Rs 30,000 crore integrated steel plant in Karnataka, may face delay in getting iron ore mining licences as the state government has not yet recommended its mining applications to the Union government.
The state government can make recommendation to the Centre to grant mining license to ArcelorMittal or any other steel companies only after hearing all the applications pending with the state, said VP Baligar, principal secretary for commerce and industry, Karnataka. There are around 1,200 fresh and 1,000 old applications pertaining to mining permits, pending for disposal with the state. Baligar did not give details about how long the state government would take in this matter.
The delay has been caused due to several pending applications, he said. Currently the mining applications are being heard by the secretary of mining and soon as the hearing is over, he will recommend the applications to the central government, Baligar added.
Several firms have applied for multiple mining applications in two iron ore blocks in Bellary region. Hundreds of firms are showing interest for mining in Ramanadurga belt, official sources said. ArcelorMittal made two applications to get mining license in Ramanadurga and another region in Bellary district, sources added.
ArcelorMittal is currently in the process of acquiring land for its project at Kudithini region in iron ore rich Bellary district. The company has already paid Rs 350 crore to the government for the allotment of land to set up its project, which will have a production capacity of 6 mt per annum. The project site will also house 750 megawatt captive power generation plant. The project, which will require 4,000 acres of land, is expected to generate 10,000 jobs.
Along with ArcelorMittal, more than fifty companies including South Korean-steel major Posco and Brahmani have signed MoUs with the K?taka state in recently held GIM to set up steel manufacturing facilities in the state.