Delays hit ArcelorMittal Rs 1 lakh cr project in India

ArcelorMittal said that options are open before it on shifting its Rs 1 lakh-cr steel projects from proposed sites.

ArcelorMittal said on Wednesday that options are open before it on shifting its Rs 1 lakh-crore steel projects from proposed sites in Orissa and Jharkhand.

“At this time,we are focusing on Jharkhand and Orissa. We are looking at different sites because existing sites are not making progress. We being the global company are not limiting our options only in two states,” ArcelorMittal Chairman and CEO L N Mittal said during a call conference.

Earlier this month,the company had threatened to withdraw from the states on account of inordinate delays in getting land and regulatory approvals for the proposed projects.

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Asked if the company is in talks with iron-ore rich states like Karnataka,Mittal said,”We are in India,so I am sure my people must be discussing and talking with various options and opportunities.”

Earlier in the day,ArcelorMittal CFO Aditya Mittal said that the company is in talks with the Orissa and Jharkhand governments for alternative sites for the 12-million tonnes per annum steel projects which have remained stuck,mainly due to problems in acquiring land.

“We are in talks (with the state governments) for (new) potential sites for our projects. We can shift the sites within the two states. Theoretically,we are also looking at other sites within the country,” he said.

The company is “disappointed” with the progress made so far on its proposed mega-steel plants in Orissa and Jharkhand. It has rued the regulatory hurdles as well. Jharkhand Industry and Mines Secretary N N Sinha said over phone that the state government has not been formally intimated about the company’s new plans.

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“There have been many informal talks in this regard,but we have not received any formal communication yet,” he said.

The Orissa government could not be reached for comments.

Asked if the company would drop the projects,Aditya Mittal said,”India continues to be an important destination for ArcelorMittal.”

“India continues to be our growth strategy and we will continue to work (on) opportunities,” L N Mittal added. The steel major had proposed to set up a plant in Keonjhar,Orissa,and at the tribal-dominated area between Khunti and Gumla districts of Jharkhand.

ArcelorMittal needs about 10,000 acres of land in Jharkhand and about 8,000 acres in Orissa. It has been allocated Karampada mines in Jharkhand with estimated reserves of 65 million tonnes of iron ore. The company needs about 600 million tonnes of iron ore to feed its 12-MTPA steel plant.

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The company still awaits iron ore mining leases in Orissa.