Karnataka transfers 2,000 acres land in Bellary to Arcelor Mittal

The global steel giant has proposed to set up 6 MTPA steel plant at an investment of Rs 30,000 crore in Karnataka

The Karnataka government has handed over 2,000 acres land at Kuditini in Bellary district to global steel giant Arcelor Mittal to set up 6 million tonne per annum steel plant. The company has already signed a memorandum of understanding with the state government to set up the plant at an investment of Rs 30,000 crore.

 

According to chief minister Siddaramaiah the government had approved the company’s proposal for 4,800 acres to set up the Greenfield steel plant in Karnataka during the global investors’ meet (GIM) held in June 2010. However, till now 2,000 acres have been acquired by Karnataka Industrial Areas Development Board and handed over the same to the company.

 

Replying to a question from Shivalingegowda K M in the state legislative assembly on Tuesday, the chief minister clarified that the proposal to acquire land for another steel giant Posco of South Korea was dropped following the resistance from farmers and local religious heads in Gadag district to acquire land at Halligudi.

 

Posco also had signed a MoU with state government during the global investors’ meet in June 2010 to set up 6 MTPA steel plant at a cost of Rs 32,300 crore. Recently, the company announced that it had withdrawn its proposal to invest in the state following delay over land acquisition.

 

Subsequently, Arcelor Mittal also announced that it has withdrawn its proposal to set up a steel plant in Odhisha.

 

Siddaramaiah said the government has till now handed over 1,274.53 acres land to industries that signed MoU during GIM 2010 and 794.45 acres land for those that signed MoU during GIM 2012. Among the companies that signed MoU in 2010, till now, 22 companies have started manufacturing and another 9 units that signed MoUs in 2012 have started manufacturing, he said.