Won't be affected by ArcelorMittal's withdrawal: Odisha govt

ArcelorMittal's decision to back out of its proposed mega steel project in Keonjhar district would have no impact on the ongoing industrialisation in the state, Odisha government said today.
"ArcelorMittal's pull out from the proposed steel plant at Patna in Keonjhar district will not have any impact on other industrial projects which are operational or in the pipeline in the state," chief secretary Jugal Kishore Mohapatra told reporters here.
Mohapatra's statement came a day after a senior executive of ArcelorMittal met and told him about the company's decision not to go ahead with its planned construction of an integrated steel and captive power plant in Keonjhar.

"Since ArcelorMittal has officially intimated us (about) not renewing the memorandum of understanding (MoU), the chapter between the government and ArcelorMittal is closed for the time being," Mohapatra said.
Mohapatra pointed out that the state government could not recommend mining lease in favour of ArcelorMittal as the project had failed to make the required progress which would have made it eligible to obtain raw material linkage.
Asked whether the state government would request the company to reconsider its decision, Mohapatra said: "No, not for the time being. If the company comes with any proposal in future, we will consider."

ArcelorMittal has also failed to submit its detailed project report, pointed out a senior official in the state government's steel and mines department.

The world's largest steel maker had in 2006 signed an MoU with Odisha government to set up a 12-million tonne steel plant in four phases at Keonjhar, entailing an investment of USD 12 billion (Rs 50,000cr).
That MoU had lapsed since December 2011.