ArcelorMittal readies DFR for USD 6.5-bn Karnataka steel plant

ArcelorMittal today said it has completed a draft feasibility report for its proposed six mtpa steel plant in Karnataka which entails an investment of a whopping USD 6.5 billion.
"A draft feasibility report for the contemplated steel plant has been completed and hydrological and environmental impact assessment studies have been initiated," it said in its latest annual report.
Billionaire L N Mittal-led ArcelorMittal, the largest steel firm in the world, proposes to invest a whopping USD 6.5 billion in the Southern state for setting up a the six mtpa steel plant and a 750 MW megawatt power plant for captive use.

The company has also received possession certificates for 2,659 acres of private land following acquisition of 1,827 acres and 832 acres in 2011 and 2012, respectively.
"This leaves a balance of 136.33 acres of land owned by Karnataka Government, which is being processed for allocation and expected to be completed during the first quarter of 2015," ArcelorMittal said.
It has also completed fencing all of the land allotted for the project.

The company had in June 2010 entered into a memorandum of understanding with Karnataka for setting up the project. The state has also approved the project's use of water from the Tungabhadra River.

The world's largest steelmaker also said it was currently working to set up a three mtpa steel plant in Jharkhand in the first phase and has sought for "adequate land" under the State Government Consent Award Scheme.
Under this scheme, the state Government would facilitate the legal transfer of land for a project after an investor has secured the landowner's consent to the sale of the land.
ArcelorMittal had announced its plan to build the plant in 2006, but implementation of the project was delayed due to issues relating to securing necessary mining rights, land and construction permits and regulatory approvals.

The company, however, has already scrapped its plan to set up a steel plant in Odisha.