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Karnataka, ArcelorMittal to sign steel plant deal

Karnataka, ArcelorMittal to sign steel plant deal
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First Published: Thu, Jan 07 2010. 06 47 PM IST
Updated: Thu, Jan 07 2010. 06 47 PM IST
New Delhi: The government of Karnataka said on Thursday it would sign an agreement with No. 1 global steelmaker ArcelorMittal in June for the company to build a 6 million tonne steel plant.
ArcelorMittal plans to invest Rs30,000 crore ($6.6 billion) in the project, which will also have a captive power plant with capacity of 750 megawatts (MW), the government said in a statement.
The company aims to acquire 4,000 acres of land for the plant.
“Mittal has come forward to set up a mega steel plant in Karnataka with an investment of Rs30,000 crore with a direct employment potential for 10,000 people,” chief minister B S Yeddyurappa said after his meeting with the steel tycoon.
The project will be in addition to ArcelorMittal’s plans to build steel plants in Orissa and Jharkhand.
“There are a lot of assurances from the Karnataka government and there is a clear commitment from them ... this is my first meeting with the chief minister. We are very impressed with the kind of support and cooperation we are receiving from them,” Mittal told reporters.
Mittal, whose ArcelorMittal controls over 10% of global steel production, said that a good progress would be made in the couple of months. “Then, we can decide (on) signing an MoU.”
ArcelorMittal has been shown several sites in Karnataka near the iron mines at Bagalkote, Bijapur, Bellary and Kopal, an official said.
Extending an invitation to Mittal to be the chief guest at the global investors meet to be held in Bangalore on 3 June and 4, Yeddyurappa said his government was committed to industrial development in the state.
The steel company has faced delays for its $20 billion plan to build the Jharkhand and Orissa plants, which would give it a presence in one of the few steel markets in the world still seeing demand growth.
In September last year, ArcelorMittal said it would acquire a one-third stake in Indian re-roller Uttam Galva, making its first investment in the country.
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First Published: Thu, Jan 07 2010. 06 47 PM IST