KIADB to acquire 4,994 acres for ArcelorMittal in Bellary

Firm had sought close to 5,000 acres for their steel plant

Karnataka has taken one more step towards facilitating ArcelorMittal’s efforts to set up their 6 million tonne per annum capacity steel plant in the state. The government has issued preliminary notification to acquire some 4,994 acres at Kudithini and Haraginadoni villages in Bellary district for the proposed steel plant.

Murugesh R Nirani, Karnataka minister for large and medium industries, announced at the state legislative council on Wednesday that Karnataka Industrial Area Development Board (KIADB) has issued a preliminary notification to the landholders on February 5 for the purpose. ArcelorMittal has sought close to 5,000 acres for their steel plant and 750 Mw power plant.

While, 4,000 acres would be given to the company for the steel plant, remaining land would go for setting up of ancilliary industries and their township, he said. The landholders in these villages have been issued notification under the section 28(2) of KIAD Act.

Some of the farmers have expressed certain objections and the state government would consider them during the public hearing, the minister said.

A team of officials from the company had informed the government of its choice of Kudithini last month for setting up the Rs 30,000 crore steel plant. This place is closer to Tungabhadra dam in Hospet, from where the required for the plant will be supplied. The state government has identified 300 hectares of iron ore mine for the company in Bellary district.

ArcelorMittal is expected to sign a memorandum of understanding with the state government during the forthcoming global investors’ meet on June 3, 2010. The high-level clearance committee (HLCC), headed by the chief minister had cleared ArcelorMittal proposal in January.