Orissa project not deferred, says ArcelorMittal

ArcelorMittal, the world’s largest steel maker, has clarified that it hasn’t deferred its Orissa plan by two years as speculated in different circles. The company proposed to set up a 12 million tonne green-field steel plant at Patna in Keonjhar district,

The company has requested the state government to expedite the processing of its application for issue of prospecting license (PL) over patches of iron ore bearing area in Keonjhar-Sundergarh belt.

The company has assured that it would submit the detailed project report (DPR) for the Rs 40,000 crore steel project soon.

“ArcelorMittal has reaffirmed its commitment to the Orissa project and thanked the state government for its support”, Ashok Dalwai, secretary, steel and mines department of the Orissa government told Business Standard.

In a written communication to the state government, Sanak Mishra, chief executive officer (CEO), greenfield projects (India) of ArcelorMittal, admitted that the progress of the project has been slower than expected due to various procedural reasons.

However, the company has requested the state government to proceed with the land acquisition process and approve all formalities. This include issuing notification under 4 (1), 6 (1) and 7 (1) for 8 villages where Gram Sabhas have been conducted successfully.

Similarly, it has urged the Orissa government to start the formalities for conducting Gram Sabha in the rest villages within the site area. It may be noted, out of the 15 villages where Gram Sabhas are required to be held, the process has been completed in 8 villages and steps are being taken for issue of notification under 4 (1) and 6 (1) of the Land Acquisition Act in these villages. The company requires 7800 acres for its Orissa project.

Sources said, the government has initiated steps for the formation of a joint venture (JV) between the state owned Orissa Mining Corporation (OMC) and ArcelorMittal for supply of iron ore to the project till it is allotted captive mines. The company had earlier applied to the government for such a joint venture mechanism with OMC. The proposal will be sent to the finance and law department for vetting before the JV is formed.

The company signed a memorandum of understanding (MoU) with the Orissa government for setting up of a 12 million tonne steel plant at Patna tehsil in Keonjhar district. But the project has not made any progress with the company not filing its DPR yet and the locals opposing the land acquisition process.