Arcelor, Posco spend negligible despite big proposals

Two of the world's leading steel-makers, ArcelorMittal and Posco, had proposed to invest Rs 91,000 crore for setting up mega steel units in Orissa, but their actual investment was negligible even about half a decade after signing MoUs with the state government.

While ArcelorMittal had proposed to invest Rs 40,000 crore on its proposed 12-mtpa greenfield steel mill in Keonjhar district, Posco planned to invest Rs 51,000 crore for an equal capacity steel plant near Paradip.

While Rs 56,090.34 crore was invested in the steel sector of the state by March, 2011, ArcelorMittal invested nothing, said Orissa Steel and Mines Minister Raghunath Mohanty, adding that Posco claimed to have spent Rs 329.15 crore.

Of the total investment proposal of Rs 2,13,969.40 crore in the steel sector, the share of the two companies was around 42% (Rs 91,000 crore).

Meanwhile, Posco's MoU tenure of five years ended on June 21, 2010, while ArcelorMittal's term would expire on December 20, 2011, he said.

While Posco made some progress, ArcelorMittal was yet to submit a detailed project report (DPR) to the state government, an official in the steel department said, adding that Bhusan Steels had invested the highest amount of Rs 12,000 crore in the state, followed by JSPL's Rs 11,283.24 crore investment.

Bhusan Steels achieved steel production of three mtpa by the end of March, 2011, the minister said.

Besides ArcelorMittal, the companies yet to make investment so far are: SSL Energy with a proposed investment of Rs 8,609 crore, Amtek Metal & Mining with proposed investment of Rs 15,820 crore and Deo Mines & Minerals (P) proposed with Rs 316 crore investment.