Karnataka chief minister BS Yeddyurappa on Thursday met ArcelorMittal chairman LN Mittal to sew up the proposed Rs 30,000 crore investment in north Karnataka.
?The Mittals have come forward to set up a mega steel plant in Karnataka which has the potential for direct employment to 10,000 people. I have cleared the project in principle and hope to sign a memorandum of understanding in 90 days,? the CM said.
Elaborating on his meeting with Mittal, Yeddyurappa said he has also invited the steel tycoon to become the chief guest at the global investors? meet in June in Bangalore. ArcelorMittal representatives have already visited Bagalkot, Bijapur and the iron ore-rich Bellary district for land. Last month, Karnataka?s additional chief secretary M R Sreenivasa Murthy had said the land acquisition would be completed by June.
On Tuesday Karnataka had cleared 38 big-ticket projects worth Rs 138,000 crore ($27.5 billion), including proposals from global steel makers ArcelorMittal and South Korea?s Posco. Yeddyurappa said these projects collectively had the potential to generate employment for 92,000 people in the state.
?Nearly 60% of these investments would be in north Karnataka,? said Yeddyurappa, explaining that the primary focus of his government was to ensure development in the most backward regions of the state, which were ravaged by floods last year.
AcelorMittal wants to invest Rs 30,000 crore ($6 billion), while Posco plans a Rs 32,000 crore ($6.4 billion) integrated cement plant. Both intend a capacity of six million tonne a year. Mittal?s firm has also proposed a 150 MW captive power plant.
State government officials said two other steel makers, Surya Steels and Adhunik Metaliks, intended similar units in the state at an investment of Rs 20,000 crore ($4 billion) and Rs 5,500 crore ($1.1 billion) respectively at Bagalkot and Raichur in north Karnataka.
The other investment proposals spelt out by the state government include Rajashree Cement?s Rs 3,000 crore cement plant in Gulbarga, Reliance Industries? plan for a gas pipeline between Chennai and Bangalore and GAIL?s gas pipeline, among others.
