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This is an archive article published on February 7, 2008

Orissa to get ArcelorMittal’s first plant

ArcelorMittal's plan of setting up steel plants in India finally seems to be gathering some momentum...

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ArcelorMittal’s plan of setting up steel plants in India finally seems to be gathering some momentum with the company setting up a 15 member team consisting of technicians from the its operations from across the globe, who would chart out a strategy for India. Company officials also indicated that given the current scenario the plant in Orissa is set to come up ahead of the plant in Jharkhand.

The company has plans of setting up two, 12 million tonne(mt) steel plants, one in each state with a cumulative investment of Rs 80,000 crore. “Our Group Management Board has approved the constitution of a 15-member technical team for our steel projects in Orissa and Jharkhand under the supervision of our chief technical officer, Pierre Gugliermina,” ArcelorMittal Brazil CEO Jose Armando Campos said. Engineering company M N Dastur & Co will prepare the detailed project report for these plants.

The study conducted by Gugliermina would complement the Dastur & Co’s study which is likely to be submitted by June his year. ArcelorMittal has said that it would try and replicate the same model on which the steel plants in Brazil are based for India.

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“Our Brazilian operations are a classic example of integrating plant management with corporate-social responsibility. Our company is the most respected in Brazil and we hope to replicate this model in India as well,” Campos said. The areas where the Brazilian model would be replicated include waste management, water treatment, gas recuperation and soil bio-fuel where charcoal from eucalyptus trees replace coke.

The company’s experience in Brazil, dealing with the local populace would also be put to use in India where relief and rehabilitation is one of the biggest challenges for mega industrial projects. “Even if the projects are not identical yet the community-based approach is definitely something we can use as an instrument to ensure that the local population is benefited,” said Stefan Schwarz, official spokesman for the company. The company would provide adequate employment to the people of the project sites besides providing indirect employment to thousands of locals in due course of time.

Having already identified the site in Keonjhar and been alloted two coal blocks in Rampia for its captive power plant, ArcelorMittal’s Orissa steel plant is tipped to come up ahead of the Jharkhand plant. “If the current scenario is anything to go by the plantin Orissa will come up first,” a company official said.

Of the total 8,000 acres identified in the state, 6,000 acres will be used for steel plant, 1,000 acres for power plant and the remaining 1,000 acres for township.

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