New Delhi: Karnataka is doing everything to ensure the proposed Rs30,000-crore investment in the state by steel giant ArcelorMittal, including easy clearances for mining lease and land acquisition by the end of this month.
The state has formed a special screening committee to expedite regulatory clearances and has targeted to give these approvals within this month.
“We welcome ArcelorMittal to set up their 6 million tonnes per annum (MTPA) venture here in the state and will clear all necessary approvals in December,” Karnataka’s commissioner for industrial development Raj Khatri said.
ArcelorMittal has identified Karnataka as a possible location for their project, but is yet to disclose the size of the project in terms of capacity or investment.
“A screening committee, constituted by Chief Minister B.S. Yeddyurappa for expediting the proposals of the steel giant, has cleared the mining lease application of the ArcelorMittal and we will provide all necessary clearances to it this month,” Khatri, who is also the Member Secretary of the Screening Committee, said.
The steel giant had last month short-listed sites in the iron ore-rich Bellary region in north Karnataka for the integrated plant.
ArcelorMittal has been facing problems in acquiring land and delays in securing regulatory approvals at its proposed Rs1lakh crore steel project sites in Jharkhand and Orissa. Earlier, it had also approached Chhattisgarh for setting up a mega project but plans did not materialise.
Against such a backdrop, Karnataka welcomed the steel giant to set up operations there. The company has maintained that the proposed plant in the southern state would be in addition to its Jharkhand and Orissa projects, for which it is still to acquire land.
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.
The company needs about 10,000 acres in Jharkhand and about 8,000 acres in Orissa to put up these plants.
While it has been allocated the Karampada mines in Jharkhand with estimated reserves of 65 MT iron ore against its needs of 600 MT to feed its 12-MTPA plant, in Orissa it is still awaiting iron ore mining lease.
ArcelorMittal has meanwhile entered into an agreement with secondary steel producer Uttam Galva to become its co-promoter and mark its first operational presence in the country.