Progress in Karanataka,Jharkhand not very satisfactory: Lakshmi Niwas Mittal

“There is a progress in these states (Karnataka and Jharkhand),but at the same time,we would like to make it clear that these progresses are still not very satisfactory,we will have to continue to watch and see what is the progress.

“We will continue to watch and see our options going forward because if there is no progress in these states,we may have to think differently,” Mittal said in a conference call.

On July 17,ArcelorMittal had quit its USD 12 billion project,involving 12 million tonnes (MT) mega steel plant,in Odisha citing inordinate delays in land acquisition and securing other clearances as reasons. It is also facing delays in Jharkhand,particularly on the land acquisition front,which has to be acquired by state government agencies.

The land acquisition is yet to get completed,though the project was announced way back in 2005. ArcelorMittal has plans to build a 12 MT capacity steel mill for about USD 12 billion in the state.

Putting a brave face,Mittal said that despite huge delays,he is not frustrated and still believes in India’s potential as a developing economy.

“We are very keen to continue to work in India. We all know there is potential,there will be growth and demand… On a personal level,we have completed our project in Bhatinda for refinery. I would not say that I am frustrated because this project is completed on time,within our budget and this project has already achieved 100 per cent of its capacity,” he said.

In Karnataka,land acquisition for the project is complete and the state government has also allocated water for it. However,ArcelorMittal is yet to get captive iron ore mine and due to this,the project,involving USD 6 billion investment,has not yet taken off.

The Karnataka government is discussing company’s application for the captive iron ore mine,Mittal said,though he did not answer the query of how long ArcelorMittal can wait for India projects to take off.

“In Odisha,we did not see things happening,so we did not renew our MoU but in Karnataka and Jharkhand,we have seen encouraging signs and we will continue to watch,” he said. According to industry insiders,allocation of captive iron ore mine in Karnataka is not in sight in immediate future due to the Supreme Court order of April,in which it laid down broad contours of state’s future policy of allocating mines. The apex court in its order had lifted the mining ban in the state with conditions and had cancelled most polluted mines,categorised in the Category-C,while directing the state government to auction them.