ArcelorMittal to submit DPR after PL recommendation

Putting pressure on the Orissa government for mines, Arcelor-Mittal, the largest steel maker of the world, today stated that it will submit the detailed project report (DPR) for its 12 million tonne, Rs 40, 000 crore greenfield steel project in Keonjhar of Orissa after its name is recommended for prospecting license (PL) for mines.

“We will submit the DPR for Keonjhar project after our name is recommended for mines”, Sanak Mishra, chief executive officer (CEO), India greenfield projects, Arcelor-Mittal said. Mishra said, we have already commissioned the DPR.

The statement assumes importance as the company is yet to submit the DPR to the Orissa government even though it stated in July this year that the DPR has been finalised and will be submitted to the state government.

Talking to the media after meeting the chief minister Naveen Patnaik in the state secretariat, Vijay Bhatnagar, CEO, India, Arcelor-Mittal said, despite the global financial meltdown, its long term India strategy remains intact. There will, however, be adjustment in the short term strategy without scaling down the investment in the greenfield projects in the country.

“As far as the long term strategy in India is concerned, it is intact but in the short run we have to adjust. The investment will be phased instead of being scaled down”, said Bhatnagar.

Regarding the progress of the Orissa project, he said, there are about 1400 acres of forest land within the site for which permission for diversion is required.

The company has submitted papers with the Orissa government and expect the state government to initiate action on this proposal, he added. About the land acquisition, Bhatnagar said, the land acquisition depends upon the co-operation of the villagers. Out of the 15 villages, the Gram Sabha has been held in 3 villages. It will have to be completed in the remaining villages.

The construction work can only start after a substantial portion of the land is acquired. Further, Rehabilitation and Peripheral Development Advisory Committee (RPDAC) meeting will have to be convened for expediting the rehabilitation and resettlement issues. About the proposed ITI at Keonjhar to be sponsored by Arcelor-Mittal, Bhatnagar said, a part of the land given to the company for the purpose was forest land.

So the company has requested the state government to provide an alternative land. Official sources said, the company is facing resistance from the local people for acquiring the land for its Rs 40,000 crore project at Patna tehsil in Keonjhar district. The villagers are reportedly asking for the fixation of the land price first before starting the land acquisition process.

On mines, the company was told that it will have to fulfill the procedural pre-requisites for getting mines. It will have to follow the preliminary procedures for its proposed 30MTPA captive port at Barunei Muhan.

The company signed a memorandum of understanding (MoU) with the Orissa government for setting up a 12 mtpa steel plant in December 2006.The Orissa government has already given the administrative approval for acquisition of 7750 acres of land for the purpose.