Arcelor Mittal’s Rs 30,000 cr steel plant in limbo

By: | Updated: August 4, 2015 9:08 AM

The world's largest steelmaker Arcelor Mittal's proposed Rs 30,000-crore steel project in Karnataka seems to be in limbo.

arcelor mittalArcelor Mittal India had signed an MoU with the state government during Global Investors’ Meet in June 2010 to invest Rs 30,000 crore in the mega steel plant-cum-power project. (Reuters)

The world’s largest steelmaker Arcelor Mittal’s proposed Rs 30,000-crore steel project in Karnataka seems to be in limbo.  The steel major has not responded to recent queries by the state on the progress of  the project, giving indications that it has put its investment plans on the backburner.

Arcelor Mittal India had signed an MoU with the state government during Global Investors’ Meet in June 2010 to invest Rs 30,000 crore in the mega steel plant-cum-power project. Subsequently, the government went on fasttrack mode to acquire 2,800 acres and hand it over to the company at Kuditini in Ballari district.

However, the inordinate delay has forced the Karnataka government to express concern and directed the company to fasttrack work on the proposed 6 million tonne per annum steel plant.

“Land has been given to the company. They have not done anything till now. We have written to them to start work as early as possible, but they have not responded,” K Ratna Prabha, additional chief secretary of the state’s commerce and industries department, told FE.

The government has not given any commitment on allotment of captive iron ore mines to the company, she said, adding that mineral assets will have to be acquired through auctions. “Even JSW Steel is producing in the state without captive mines. Arcelor Mittal will have to get iron ore on their ore. From the government side, we will only facilitate industries and they cannot depend on us for iron ore,” she said.

An email query sent to Arcelor Mittal India to elicit their response on this matter has remained unanswered.

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